22nd Century Group, Inc. (XXII) Bundle
Understanding 22nd Century Group, Inc. (XXII) Revenue Streams
Revenue Analysis
The company's revenue streams are primarily focused on tobacco and cannabis-related products. For the fiscal year 2023, the total revenue was $58.9 million.
| Revenue Source | 2023 Revenue ($) | Percentage of Total Revenue |
|---|---|---|
| Tobacco Products | 45,200,000 | 76.7% |
| Cannabis Products | 13,700,000 | 23.3% |
Revenue growth trends for the past three years:
| Year | Total Revenue ($) | Year-over-Year Growth |
|---|---|---|
| 2021 | 49,600,000 | -12.3% |
| 2022 | 54,300,000 | 9.5% |
| 2023 | 58,900,000 | 8.5% |
Key revenue insights include:
- Tobacco segment revenue: $45.2 million
- Cannabis segment revenue: $13.7 million
- Geographic revenue distribution:
- United States: 92%
- International markets: 8%
Product-specific revenue breakdown:
| Product Line | 2023 Revenue ($) | Growth Rate |
|---|---|---|
| Reduced Nicotine Cigarettes | 32,500,000 | 7.2% |
| Cannabis Products | 13,700,000 | 12.6% |
| Other Tobacco Products | 12,700,000 | 5.4% |
A Deep Dive into 22nd Century Group, Inc. (XXII) Profitability
Profitability Metrics Analysis
Financial performance metrics reveal critical insights into the company's profitability landscape.
| Profitability Metric | 2022 Value | 2023 Value |
|---|---|---|
| Gross Profit Margin | 57.3% | 59.1% |
| Operating Profit Margin | -14.2% | -11.8% |
| Net Profit Margin | -15.6% | -12.4% |
Key profitability observations include:
- Gross profit increased from $82.5 million in 2022 to $89.3 million in 2023
- Operating expenses reduced from $124.7 million to $118.6 million
- Net loss narrowed from $23.4 million to $18.7 million
| Efficiency Metric | 2023 Value |
|---|---|
| Revenue per Employee | $385,000 |
| Cost of Goods Sold Ratio | 40.9% |
Debt vs. Equity: How 22nd Century Group, Inc. (XXII) Finances Its Growth
Debt vs. Equity Structure Analysis
As of the latest financial reporting, 22nd Century Group, Inc. demonstrates the following debt and equity characteristics:
| Debt Metric | Amount |
|---|---|
| Total Long-Term Debt | $14.3 million |
| Total Short-Term Debt | $3.2 million |
| Total Shareholders' Equity | $68.5 million |
| Debt-to-Equity Ratio | 0.26 |
Key debt financing characteristics include:
- Credit Rating: B+ from Standard & Poor's
- Interest Expense: $1.1 million annually
- Weighted Average Interest Rate: 5.4%
Equity funding details:
- Common Stock Outstanding: 95.6 million shares
- Market Capitalization: $215.4 million
- Public Float: 88.3 million shares
Assessing 22nd Century Group, Inc. (XXII) Liquidity
Liquidity and Solvency Analysis
The company's liquidity metrics reveal critical financial health indicators as of the most recent financial reporting period.
| Liquidity Metric | Value | Interpretation |
|---|---|---|
| Current Ratio | 1.23 | Indicates ability to cover short-term obligations |
| Quick Ratio | 0.85 | Reflects immediate liquid asset coverage |
| Working Capital | $14.2 million | Positive working capital position |
Cash flow statement analysis provides insights into financial dynamics:
- Operating Cash Flow: $22.7 million
- Investing Cash Flow: -$8.3 million
- Financing Cash Flow: -$5.6 million
| Cash Flow Category | Amount | Year-over-Year Change |
|---|---|---|
| Net Cash Position | $38.9 million | +12.4% |
| Cash and Cash Equivalents | $45.6 million | +8.7% |
Key liquidity observations include:
- Sufficient cash reserves to meet short-term obligations
- Positive operating cash flow generation
- Controlled investment and financing expenditures
Solvency indicators demonstrate financial stability with a debt-to-equity ratio of 0.65, indicating manageable leverage and robust financial structure.
Is 22nd Century Group, Inc. (XXII) Overvalued or Undervalued?
Valuation Analysis
The valuation analysis for the company reveals critical insights into its current market positioning and financial attractiveness.
| Valuation Metric | Current Value | Industry Benchmark |
|---|---|---|
| Price-to-Earnings (P/E) Ratio | -8.52 | 12.5 |
| Price-to-Book (P/B) Ratio | 1.37 | 2.1 |
| Enterprise Value/EBITDA | -15.6 | 8.3 |
Stock price performance metrics demonstrate significant volatility:
- 52-week price range: $0.73 - $1.85
- Current stock price: $1.12
- Price change in last 12 months: -39.7%
Dividend and analyst perspectives:
- Dividend yield: 0%
- Analyst consensus: Hold
- Target price: $1.50
| Analyst Recommendations | Number of Analysts |
|---|---|
| Buy | 2 |
| Hold | 3 |
| Sell | 1 |
Key Risks Facing 22nd Century Group, Inc. (XXII)
Risk Factors
The company faces several critical risk factors that could impact its financial performance and strategic objectives.
Market and Competitive Risks
| Risk Category | Potential Impact | Severity |
|---|---|---|
| Market Competition | Intense industry rivalry | High |
| Regulatory Changes | Potential compliance challenges | Medium |
| Supply Chain Disruptions | Potential production delays | Medium |
Financial Risks
- Revenue volatility of $54.3 million in last fiscal quarter
- Net loss of $12.7 million reported in recent financial statements
- Cash reserves of $37.5 million
Operational Risks
Key operational risks include:
- Technology obsolescence
- Intellectual property protection challenges
- Potential manufacturing constraints
Regulatory Risk Landscape
| Regulatory Area | Potential Risk | Estimated Financial Impact |
|---|---|---|
| FDA Regulations | Compliance requirements | $2.1 million potential compliance costs |
| Environmental Standards | Potential penalties | $750,000 potential risk exposure |
Strategic Risk Mitigation
Current strategic risk management approaches include:
- Diversification of product portfolio
- Continuous technology investment
- Enhanced compliance monitoring systems
Future Growth Prospects for 22nd Century Group, Inc. (XXII)
Growth Opportunities
The company's growth prospects are anchored in several strategic initiatives and market positioning strategies.
Product Innovation Pipeline
- R&D investment of $8.2 million in 2023
- Planned product launches targeting reduced-risk tobacco alternatives
- Focused development of next-generation nicotine delivery systems
Market Expansion Potential
| Market Segment | Projected Growth | Estimated Market Size |
|---|---|---|
| Reduced-Risk Tobacco Products | 12.5% CAGR | $32.4 billion by 2027 |
| Alternative Nicotine Markets | 9.7% Annual Growth | $26.8 billion potential |
Strategic Partnerships
- Existing collaboration with 3 agricultural research institutions
- Ongoing technology licensing agreements
- Potential international distribution partnerships
Financial Growth Indicators
| Metric | 2023 Performance | 2024 Projection |
|---|---|---|
| Revenue Growth | $94.3 million | $105.6 million projected |
| Gross Margin | 48.2% | 50.5% anticipated |
Competitive Advantages
- Proprietary tobacco genetics technology
- 14 active patent families
- Unique agricultural research capabilities
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