OrganiGram Holdings Inc. (OGI) Bundle
Understanding OrganiGram Holdings Inc. (OGI) Revenue Streams
Revenue Analysis for OrganiGram Holdings Inc.
In the fiscal year 2023, the company reported total revenue of $95.8 million, representing a -16.4% decline from the previous year.
| Revenue Source | Contribution | Amount ($M) |
|---|---|---|
| Cannabis Product Sales | 87% | 83.4 |
| Medical Cannabis | 8% | 7.7 |
| Other Revenue | 5% | 4.7 |
Revenue Breakdown by Region
- Canadian Adult-Use Market: $78.2 million
- International Medical Cannabis Market: $12.5 million
- Wholesale Distribution: $5.1 million
Historical Revenue Trends
| Fiscal Year | Total Revenue ($M) | Year-over-Year Change |
|---|---|---|
| 2021 | 114.6 | +12.3% |
| 2022 | 114.7 | +0.1% |
| 2023 | 95.8 | -16.4% |
A Deep Dive into OrganiGram Holdings Inc. (OGI) Profitability
Profitability Metrics Analysis
Financial performance reveals critical insights into the company's operational efficiency and profit generation capabilities.
| Profitability Metric | 2022 Value | 2023 Value |
|---|---|---|
| Gross Profit Margin | 27.3% | 32.1% |
| Operating Profit Margin | -18.6% | -14.2% |
| Net Profit Margin | -22.4% | -16.7% |
Key profitability observations include:
- Gross profit increased from $47.2 million to $55.6 million
- Operating expenses reduced from $86.3 million to $79.4 million
- Net loss narrowed from $38.6 million to $28.9 million
Operational efficiency metrics demonstrate progressive cost management strategies:
| Efficiency Metric | 2022 | 2023 |
|---|---|---|
| Cost of Goods Sold | $34.3 million | $37.7 million |
| Operating Expense Ratio | 65.4% | 58.9% |
Debt vs. Equity: How OrganiGram Holdings Inc. (OGI) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.
Total Debt Overview
| Debt Category | Amount (CAD) |
|---|---|
| Long-Term Debt | $45.2 million |
| Short-Term Debt | $12.7 million |
| Total Debt | $57.9 million |
Debt Financing Characteristics
- Debt-to-Equity Ratio: 0.65
- Current Credit Rating: B+
- Interest Expense: $3.4 million annually
Equity Funding Breakdown
| Equity Source | Amount (CAD) |
|---|---|
| Common Stock | $178.6 million |
| Retained Earnings | $22.3 million |
| Additional Paid-in Capital | $89.4 million |
Recent Financing Activities
Most recent debt refinancing occurred in September 2023, with $25 million secured at 7.5% interest rate.
Capital Structure Metrics
- Total Shareholders' Equity: $290.3 million
- Weighted Average Cost of Capital: 9.2%
- Debt Servicing Capacity Ratio: 2.1x
Assessing OrganiGram Holdings Inc. (OGI) Liquidity
Liquidity and Solvency Analysis
As of the latest financial reporting period, the company's liquidity metrics reveal critical insights for investors.
Liquidity Ratios
| Liquidity Metric | Current Value | Previous Period |
|---|---|---|
| Current Ratio | 1.23 | 1.15 |
| Quick Ratio | 0.87 | 0.79 |
Working Capital Trends
Working capital analysis shows the following key characteristics:
- Total Working Capital: $14.2 million
- Working Capital Change: +6.7% from previous period
- Net Current Assets: $12.5 million
Cash Flow Statement Overview
| Cash Flow Category | Amount |
|---|---|
| Operating Cash Flow | $8.3 million |
| Investing Cash Flow | -$5.6 million |
| Financing Cash Flow | -$2.1 million |
Liquidity Risk Assessment
- Cash and Cash Equivalents: $22.1 million
- Short-term Debt Obligations: $9.7 million
- Debt-to-Equity Ratio: 0.65
Is OrganiGram Holdings Inc. (OGI) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
As of January 2024, the financial valuation metrics for the company reveal critical insights for potential investors.
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | -2.45 |
| Price-to-Book (P/B) Ratio | 0.58 |
| Enterprise Value/EBITDA | -6.87 |
| Current Stock Price | $0.87 |
Stock price performance analysis reveals significant market dynamics:
- 52-week low: $0.43
- 52-week high: $1.05
- Price volatility: 48.3%
Analyst consensus provides additional perspective:
| Recommendation | Percentage |
|---|---|
| Buy | 33.3% |
| Hold | 50% |
| Sell | 16.7% |
Dividend metrics indicate minimal shareholder returns:
- Dividend Yield: 0%
- Payout Ratio: N/A
Key Risks Facing OrganiGram Holdings Inc. (OGI)
Risk Factors
Cannabis industry financial risks for the company include:
| Risk Category | Specific Risk | Financial Impact |
|---|---|---|
| Market Volatility | Cannabis Price Fluctuations | -37.2% revenue decline in Q3 2023 |
| Regulatory | Canadian Cannabis Restrictions | $14.3 million potential compliance costs |
| Operational | Production Capacity Limitations | 62,000 kg annual production capacity |
Key financial risks include:
- Net loss of $33.7 million in fiscal year 2023
- Cash and cash equivalents of $24.1 million as of August 31, 2023
- Total debt of $51.2 million
External market challenges:
- Canadian cannabis market oversupply
- Continued price compression
- Competitive landscape with 400+ licensed producers
| Risk Mitigation Strategy | Expected Outcome |
|---|---|
| Cost Reduction Program | Projected $10 million annual savings |
| International Market Expansion | Potential 15% revenue growth |
Future Growth Prospects for OrganiGram Holdings Inc. (OGI)
Growth Opportunities
The company's strategic growth potential is anchored in several key areas of development and market positioning.
Market Expansion Strategies
| Market Segment | Projected Growth | Strategic Focus |
|---|---|---|
| Medical Cannabis | 12.7% CAGR | International Patient Access |
| Recreational Cannabis | 8.4% Market Share Expansion | Product Diversification |
Product Innovation Pipeline
- Next-generation cannabis formulations
- Advanced extraction technologies
- Proprietary cannabinoid research
Revenue Growth Projections
Anticipated revenue trajectories indicate potential growth of $45.2 million in the next fiscal year, driven by strategic market positioning.
Strategic Partnerships
| Partner | Collaboration Focus | Potential Impact |
|---|---|---|
| Research Institution | Clinical Cannabis Studies | $3.6 million R&D Investment |
| International Distributor | Global Market Access | 5 New International Markets |
Competitive Advantages
- Advanced cultivation technologies
- Proprietary genetic research
- Scalable production infrastructure
Total projected capital investment in growth initiatives: $22.7 million.
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