CannaOne Technologies Inc. (CNSX:CNNA): Is Breakeven Near?

CannaOne Technologies Inc.  (CSE:CNNA)(OTC:CNONF)(FRA:3CT(“CannaOne” or the “Company”) develops and markets various digital tools to service various segments for the cannabis industry in Canada. With the latest financial year loss of -CA$437.5k and a trailing-twelve month of -CA$1.1m, the CA$8.6m market-cap amplifies its loss by moving further away from its breakeven target. The most pressing concern for investors is CNNA’s path to profitability – when will it breakeven? I’ve put together a brief outline of industry analyst expectations for CNNA, its year of breakeven and its implied growth rate.

Check out our latest analysis for CannaOne Technologies

CNNA is bordering on breakeven, according to Software analysts. They anticipate the company to incur a final loss in 2021, before generating positive profits of CA$1.6m in 2022. CNNA is therefore projected to breakeven around 3 years from now. How fast will CNNA have to grow each year in order to reach the breakeven point by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 61% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

CNSX:CNNA Past and Future Earnings, December 4th 2019
 
 

Underlying developments driving CNNA’s growth isn’t the focus of this broad overview, though, keep in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before I wrap up, there’s one issue worth mentioning. CannaOne Technologies Inc.  (CSE:CNNA)(OTC:CNONF)(FRA:3CTcurrently has a debt-to-equity ratio of 176%. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, and CNNA has considerably exceeded this. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.

Next Steps:

There are too many aspects of CNNA to cover in one brief article, but the key fundamentals for the company can all be found in one place – CNNA’s company page on Simply Wall St. I’ve also put together a list of key factors you should look at:

  1. Valuation: What is CNNA worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether CNNA is currently mispriced by the market.
  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on CannaOne Technologies’s board and the CEO’s back ground.
  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

If you spot an error that warrants correction, please contact the editor at [email protected]om. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

Please visit the company’s website at cannaonetechnologies.com. For a free report on CannaOne Technologies (CSE:CNNA)(OTC:CNONF)(FRA:3CT) visit stockstreetnews.com.

Please See Disclaimer


Disclosure:

1) The author of the Article, or members of the author’s immediate household or family, do not own any securities of the companies set forth in this Article. The author determined which companies would be included in this article based on research and understanding of the sector.

2) The Article was issued on behalf of a third party, CannaOne Technologies Inc. and Market Jar Media Inc.

3) Statements and opinions expressed are the opinions of the author and not Market Jar Media Inc., its directors or officers. The author is wholly responsible for the validity of the statements. The author was not paid by Market Jar Media Inc. for this Article. Market Jar Media Inc. was not paid by the author to publish or syndicate this Article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Market Jar Media Inc. requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Market Jar Media Inc. relies upon the authors to accurately provide this information and Market Jar Media Inc. has no means of verifying its accuracy.

4) The Article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Market Jar Media Inc.'s terms of use and full legal disclaimer as set forth here. This Article is not a solicitation for investment. Market Jar Media Inc. does not render general or specific investment advice and the information on StockStreetNews.com should not be considered a recommendation to buy or sell any security. Market Jar Media Inc. does not endorse or recommend the business, products, services or securities of any company mentioned on StockStreetNews.com.

5) Market Jar Media Inc. and its respective directors, officers and employees hold no shares for any company mentioned in the Article.