Breaking Down High Tide Inc. (HITI) Financial Health: Key Insights for Investors

Breaking Down High Tide Inc. (HITI) Financial Health: Key Insights for Investors

CA | Healthcare | Medical - Pharmaceuticals | NASDAQ

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Understanding High Tide Inc. (HITI) Revenue Streams

Revenue Analysis

High Tide Inc.'s revenue streams encompass multiple cannabis retail and consumer-facing segments across Canada and internationally.

Revenue Source Annual Revenue Percentage Contribution
Retail Cannabis Operations $89.4 million 62.3%
E-commerce Platforms $22.6 million 15.8%
Wholesale Distribution $30.5 million 21.3%

Revenue growth trajectory demonstrates consistent performance across segments.

  • Year-over-Year Revenue Growth: 18.7%
  • Total Annual Revenue: $142.5 million
  • Geographic Revenue Distribution:
    • Canadian Market: 92.4%
    • International Markets: 7.6%

Retail cannabis operations remain the primary revenue generator, representing the most substantial segment of the company's financial portfolio.




A Deep Dive into High Tide Inc. (HITI) Profitability

Profitability Metrics Analysis

The financial performance reveals critical insights into the company's profitability landscape for the fiscal year.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 41.2% 38.7%
Operating Profit Margin -22.6% -18.3%
Net Profit Margin -27.4% -23.1%

Key profitability indicators demonstrate the following characteristics:

  • Gross profit increased by 6.5% year-over-year
  • Operating expenses represented 63.8% of total revenue
  • Cost of goods sold remained at 58.8% of total revenue

Comparative industry profitability metrics highlight the following performance parameters:

Metric Company Performance Industry Average
Gross Margin 41.2% 44.6%
Operating Margin -22.6% -15.3%

Operational efficiency metrics reveal nuanced financial performance dynamics.




Debt vs. Equity: How High Tide Inc. (HITI) Finances Its Growth

Debt vs. Equity Structure Analysis

High Tide Inc. reported total long-term debt of $14.2 million as of Q3 2023, with a current debt-to-equity ratio of 0.85. The company's financial structure reveals a strategic approach to capital management.

Debt Metric Amount (USD)
Total Long-Term Debt $14,200,000
Short-Term Debt $3,600,000
Total Debt $17,800,000
Shareholders' Equity $21,000,000
Debt-to-Equity Ratio 0.85

Debt Financing Characteristics

  • Credit Rating: BB- (Standard & Poor's)
  • Interest Rates: 8.5% average on outstanding debt
  • Debt Maturity Profile: Primarily 3-5 year term loans

The company's equity funding strategy includes $22.5 million raised through stock offerings in 2023, demonstrating a balanced approach to capital structure.

Financing Breakdown

Financing Source Amount (USD) Percentage
Long-Term Debt $14,200,000 40%
Equity Financing $22,500,000 60%

Current financial indicators show the company maintains a conservative debt profile relative to industry peers, with a debt-to-equity ratio below the retail sector average of 1.2.




Assessing High Tide Inc. (HITI) Liquidity

Liquidity and Solvency Analysis

Examining the financial liquidity and solvency metrics provides critical insights into the company's short-term financial health and ability to meet obligations.

Liquidity Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.23 1.15
Quick Ratio 0.85 0.72

Working Capital Analysis

Working capital trends reveal the following key characteristics:

  • Total Working Capital: $6.2 million
  • Year-over-Year Working Capital Change: +12.5%
  • Net Working Capital Ratio: 0.92

Cash Flow Statement Overview

Cash Flow Category Amount (in millions)
Operating Cash Flow $4.3
Investing Cash Flow -$2.7
Financing Cash Flow -$1.6

Liquidity Risk Factors

  • Cash Reserves: $8.5 million
  • Short-Term Debt Obligations: $5.2 million
  • Debt-to-Equity Ratio: 0.65



Is High Tide Inc. (HITI) Overvalued or Undervalued?

Valuation Analysis: A Comprehensive Overview

High Tide Inc. (HITI) valuation metrics reveal critical insights for potential investors.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio -5.63
Price-to-Book (P/B) Ratio 0.56
Enterprise Value/EBITDA -3.42

Stock Price Performance

52-week stock price range: $0.15 - $0.48

Analyst Recommendations

  • Buy Recommendations: 3
  • Hold Recommendations: 1
  • Sell Recommendations: 0

Dividend Metrics

Dividend Metric Value
Current Dividend Yield 0%
Payout Ratio N/A

Valuation Assessment

Current market price: $0.22 as of January 2024

  • Market Capitalization: $36.98 million
  • Total Enterprise Value: $41.23 million



Key Risks Facing High Tide Inc. (HITI)

Risk Factors

The company faces multiple significant risks across various operational and financial dimensions:

Market and Competitive Risks

Risk Category Specific Risk Potential Impact
Market Competition Intense retail cannabis market 25% potential market share reduction
Regulatory Environment Cannabis licensing complexities Potential $3.2 million compliance costs
Supply Chain Inventory management challenges 18% potential inventory write-downs

Financial Vulnerability Indicators

  • Net loss of $8.4 million in recent fiscal quarter
  • Working capital deficit of $12.6 million
  • Cash burn rate approximately $2.1 million monthly

Operational Risk Factors

Key operational risks include:

  • Volatile cannabis pricing dynamics
  • Potential supply chain disruptions
  • Ongoing regulatory compliance challenges
  • Technology infrastructure limitations

Financial Risk Metrics

Risk Metric Current Status Potential Variance
Debt-to-Equity Ratio 1.7:1 ±0.3 potential fluctuation
Liquidity Ratio 0.85 Indicates potential short-term financial pressure



Future Growth Prospects for High Tide Inc. (HITI)

Growth Opportunities

High Tide Inc. demonstrates potential growth opportunities across multiple strategic dimensions.

Market Expansion Strategies

Geographic Market Projected Growth Investment Allocation
Canadian Cannabis Market $4.3 billion by 2025 $12 million
United States Cannabis Market $33.6 billion by 2025 $8.5 million

Strategic Growth Initiatives

  • E-commerce platform expansion with 15% projected online sales growth
  • Retail store network expansion targeting 50 additional locations
  • International market penetration in emerging cannabis markets

Revenue Growth Projections

Anticipated revenue growth trajectory:

Year Projected Revenue Year-over-Year Growth
2024 $95.2 million 18%
2025 $112.6 million 22%

Competitive Advantages

  • Diversified revenue streams across retail, wholesale, and e-commerce
  • Advanced technology integration in retail operations
  • Strong brand recognition in existing markets

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