Investing in Im Cannabis Corp comes with significant risk, especially if you're considering a short-term, three-month investment. The company's Sharpe Ratio stands at 0.16, indicating a modest return of 0.16% for each unit of price volatility over the past three months. We've analyzed 29 technical indicators to help determine if the anticipated 2.09% returns are worth the risk involved. To assess the company's unique risks that can't be diversified, consider using its Standard Deviation of 12.86, Semi-Deviation of 4.66, and Market Risk Adjusted Performance of 2.94. These metrics provide insight into the volatility and potential risk associated with investing in Im Cannabis Corp.
Main Ideas
Im Cannabis Corp's fundamentals present a mixed picture for potential investors. With a market capitalization of
19.13M and a book value per share of 1.73X, the company appears undervalued relative to its assets. However, the high probability of bankruptcy at 96.00% suggests significant financial risk, which investors should carefully consider before making a decision.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Im Cannabis income statement, its balance sheet, and the statement of cash flows. Potential Im Cannabis investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Im Cannabis investors may use each financial statement separately, they are all related. The changes in Im Cannabis's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Im Cannabis's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Im Cannabis
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Im Cannabis performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Im Cannabis shares is the value that is considered the true value of the share. If
the intrinsic value of IMCC is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Im Cannabis. Please read more on our
fundamental analysis page.
How effective is Im Cannabis in utilizing its assets?
Im Cannabis Corp reports assets on its Balance Sheet. It represents the amount of IMCC resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Im Cannabis aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Biotechnology space. To get a better handle on how balance sheet or income statements item affect IMCC volatility, please check the breakdown of all its
fundamentals.
Are Im Cannabis Earnings Expected to grow?
The
future earnings power of Im Cannabis involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Im Cannabis factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Im Cannabis
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of IMCC
expected earnings.
Im Cannabis Gross Profit
Im Cannabis Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Im Cannabis previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Im Cannabis Gross Profit growth over the last 10 years. Please check Im Cannabis'
gross profit and other
fundamental indicators for more details.
Is Im Cannabis valued correctly by the market?
Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Im Cannabis is not uncomon. There are few distinct groups of Im Cannabis stakehholders that the SEC considers insiders. Investors usually gain information through their work as corporate directors, officers, or employees. If these individuals share the information with a friend, family, or business partner and the person who receives the information exchanges stock in the company, he or shie is also an insider. Let's take a look at how the ownership of IMCC is distributed among investors.
Ownership Allocation
The
market capitalization of Im Cannabis Corp is $19.13 Million. Im Cannabis shows considerable amount of outstanding shares owned by
insiders. An
insider is usually defined as a CEO, other corporate executive, director, or
institutional investor who own at least 10% of the company's outstanding shares. Note, that even with negative
profits, if the true value of the firm is larger than the current market value, you may still be able to generate positive returns on investment in this company.
| Retail Investors56.35% | Insiders39.78% | |
| Retail Investors | 56.35 |
| Insiders | 39.78 |
| Institutions | 3.87 |
Please be aware that individual investors typically purchase shares for their personal accounts and usually in smaller quantities compared to institutional investors. While they might influence Im Cannabis' decisions if they own a significant combined portion of its shares, such influence is relatively rare. Conversely, institutional investors - like mutual funds, pension funds, hedge funds, and other investment companies - often have a substantial sway over Im Cannabis' decisions due to their larger holdings.
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Im Cannabis has an asset utilization ratio of 137.88 percent. This indicates that the Company is making $1.38 for each dollar of assets. An increasing asset utilization means that Im Cannabis Corp is more efficient with each dollar of assets it utilizes for everyday operations.
| Non Current Assets Total16.3 M | | | Total Current Assets24.5 M | | | |
| Non Current Assets Total | 16.28 Million | 27.3 |
| Non Currrent Assets Other | 6.99 Million | 11.73 |
| Other Current Assets | 2.74 Million | 4.59 |
| Total Current Assets | 24.53 Million | 41.14 |
| Net Tangible Assets | 5 Million | 8.38 |
| Other Assets | 921,322 | 1.55 |
| Intangible Assets | 3.17 Million | 5.31 |
Warren Buffett once said, "Price is what you pay; value is what you get." This sentiment rings true for Im Cannabis Corp (NASDAQ: IMCC) as it navigates its current market position. Despite a recent surge, the company's fundamentals reveal a mixed picture. With a current ratio of 1.18x, the company maintains a reasonable level of liquidity, yet its net interest income shows a loss of 2.6 million, indicating challenges in managing debt. Additionally, the price-to-sales ratio of 0.35x suggests the stock might be undervalued relative to its revenue, offering potential growth opportunities if the company can leverage its assets effectively.
Will Im Cannabis growth be real after the surge?
Im Cannabis Corp's recent drop in its expected shortfall indicator to -8.4 suggests a potential for price growth, raising questions about the sustainability of its recent surge. This metric, which gauges the risk of significant losses, shows a decrease in anticipated downside risk, hinting at a more stable outlook for the stock. Investors might view this as a positive sign, indicating potential growth, especially if the cannabis sector remains favorable. However, it's essential to consider broader market trends and company-specific factors. Im Cannabis Corp is experiencing above-average volatility, which can affect stock prices, particularly in bear markets.
This volatility often prompts investors to adjust their portfolios, seeking stability by diversifying their investments as prices fluctuate.As we wrap up our look at IM Cannabis Corp, it's clear that the stock presents a mixed bag of potential and caution. With an analyst target price estimated at
8.221, there seems to be room for growth, but the consensus remains a "Hold," indicating a need for careful consideration. The possible downside price of 0.0499 suggests that investors should remain vigilant and weigh the risks against potential rewards. Whether IM Cannabis can deliver more in the coming months will largely depend on market conditions and the company's strategic moves. For those considering an investment, keeping an eye on industry trends and company announcements will be key to making informed decisions..
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Im Cannabis Corp. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com