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Bhang

CNSX:BHNG
Snowflake Description

Mediocre balance sheet and overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BHNG
CNSX
CA$54M
Market Cap
  1. Home
  2. CA
  3. Household
Company description

Bhang Chocolate Company Inc. produces non-medicated and medicated chocolates. The last earnings update was 17 days ago. More info.


Add to Portfolio Compare Print
  • Bhang has significant price volatility in the past 3 months.
BHNG Share Price and Events
7 Day Returns
-12.3%
CNSX:BHNG
-1.1%
CA Personal Products
1.2%
CA Market
1 Year Returns
-
CNSX:BHNG
-18.1%
CA Personal Products
-0.2%
CA Market
BHNG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Bhang (BHNG) -12.3% -23.1% - - - -
CA Personal Products -1.1% 1.9% -1.6% -18.1% 338.7% 325%
CA Market 1.2% 4.2% 1.5% -0.2% 8.4% 1.8%
1 Year Return vs Industry and Market
  • No trading data on BHNG.
  • No trading data on BHNG.
Price Volatility
Industry
5yr Volatility vs Market

BHNG Value

 Is Bhang undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
  • It is not possible to calculate the future cash flow value for Bhang. This is due to cash flow or dividend data being unavailable. The share price is CA$0.5.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Bhang's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Bhang's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
CNSX:BHNG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in USD $-20.88
CNSX:BHNG Share Price ** CNSX (2019-09-13) in CAD CA$0.5
CNSX:BHNG Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.754 $0.38
North America Personal Products Industry PE Ratio Median Figure of 21 Publicly-Listed Personal Products Companies 24.78x
Canada Market PE Ratio Median Figure of 538 Publicly-Listed Companies 14.15x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Bhang.

CNSX:BHNG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= CNSX:BHNG Share Price ÷ EPS (both in USD)

= 0.38 ÷ -20.88

-0.02x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bhang is loss making, we can't compare its value to the North America Personal Products industry average.
  • Bhang is loss making, we can't compare the value of its earnings to the Canada market.
Price based on expected Growth
Does Bhang's expected growth come at a high price?
Raw Data
CNSX:BHNG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -0.02x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
North America Personal Products Industry PEG Ratio Median Figure of 5 Publicly-Listed Personal Products Companies 2.68x
Canada Market PEG Ratio Median Figure of 246 Publicly-Listed Companies 0.98x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Bhang, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Bhang's assets?
Raw Data
CNSX:BHNG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in USD $28.17
CNSX:BHNG Share Price * CNSX (2019-09-13) in CAD CA$0.5
CNSX:BHNG Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.754 $0.38
Canada Personal Products Industry PB Ratio Median Figure of 22 Publicly-Listed Personal Products Companies 3.59x
Canada Market PB Ratio Median Figure of 2,452 Publicly-Listed Companies 1.44x
CNSX:BHNG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= CNSX:BHNG Share Price ÷ Book Value per Share (both in USD)

= 0.38 ÷ 28.17

0.01x

* Primary Listing of Bhang.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bhang is good value based on assets compared to the CA Personal Products industry average.
X
Value checks
We assess Bhang's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Personal Products industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Personal Products industry average (and greater than 0)? (1 check)
  5. Bhang has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

BHNG Future Performance

 How is Bhang expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Bhang has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
79.2%
Expected Personal Products industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Bhang expected to grow at an attractive rate?
  • Unable to compare Bhang's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Bhang's earnings growth to the Canada market average as no estimate data is available.
  • Unable to compare Bhang's revenue growth to the Canada market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
CNSX:BHNG Future Growth Rates Data Sources
Data Point Source Value (per year)
Canada Personal Products Industry Earnings Growth Rate Market Cap Weighted Average 79.2%
Canada Personal Products Industry Revenue Growth Rate Market Cap Weighted Average 37.5%
Canada Market Earnings Growth Rate Market Cap Weighted Average 12.6%
Canada Market Revenue Growth Rate Market Cap Weighted Average 6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
CNSX:BHNG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
CNSX:BHNG Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-30 4 -3 -3
2019-03-31 3 -3 -1
2018-12-31 2 -3 -2
2017-12-31 2 0 -1

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Bhang is high growth as no earnings estimate data is available.
  • Unable to determine if Bhang is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
CNSX:BHNG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Bhang Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

CNSX:BHNG Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-30 -20.88
2019-03-31 -9.82
2018-12-31 -13.21
2017-12-31 -5.77

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Bhang will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Bhang's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Household companies here
  2. Bhang's competitive advantages and company strategy can generally be found in its financial reports archived here.
  3. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Bhang's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Bhang has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

BHNG Past Performance

  How has Bhang performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Bhang's growth in the last year to its industry (Personal Products).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Bhang does not make a profit and there is insufficient past data to establish if their 5 year on year earnings growth rate was positive.
  • Unable to compare Bhang's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Bhang's 1-year growth to the North America Personal Products industry average as it is not currently profitable.
Earnings and Revenue History
Bhang's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Bhang Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

CNSX:BHNG Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 3.84 -2.76 4.04 0.01
2019-03-31 2.94 -1.21 2.96 0.01
2018-12-31 1.64 -1.54 2.54 0.01
2017-12-31 1.98 -0.58 1.60

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Bhang has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Bhang has efficiently used its assets last year compared to the North America Personal Products industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Bhang improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Bhang's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Personal Products industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Bhang has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

BHNG Health

 How is Bhang's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Bhang's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Bhang is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Bhang's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Bhang's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 6.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Bhang Company Filings, last reported 2 months ago.

CNSX:BHNG Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 3.95 1.08 1.20
2019-03-31 5.76 0.23 1.49
2018-12-31 5.28 0.00 1.08
2017-12-31 -0.45 1.00 0.16
  • Bhang's level of debt (27.4%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Bhang's debt level has increased without past 5-year debt data.
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Bhang has less than a year of cash runway based on current free cash flow.
  • Bhang has less than a year of cash runway if free cash flow continues to grow at historical rates of 96.1% each year.
X
Financial health checks
We assess Bhang's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Bhang has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

BHNG Dividends

 What is Bhang's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Bhang dividends.
If you bought CA$2,000 of Bhang shares you are expected to receive CA$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Bhang's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Bhang's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
CNSX:BHNG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
North America Personal Products Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 1.4%
Canada Market Average Dividend Yield Market Cap Weighted Average of 333 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2%
Canada Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Bhang has not reported any payouts.
  • Unable to verify if Bhang's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Bhang's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Bhang has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Bhang's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Bhang afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Bhang has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

BHNG Management

 What is the CEO of Bhang's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Scott Van Rixel
TENURE AS CEO 0.2 years
CEO Bio

Mr. Scott J. Van Rixel is Chairman of Bhang Inc. and serves its Chief Executive Officer since July 2019. Mr. Van Rixel is award-Winning Cannabis Pioneer and Product & Brand Innovator and has 25+ years of experience with major retailers. He is a Founding member of National Cannabis Industry Association European, Certified Chef de Cuisine and Master Chocolatier and High Times 100 Most Influential People in Cannabis.

CEO Compensation
  • Insufficient data for Scott to compare compensation growth.
  • Insufficient data for Scott to establish whether their remuneration is reasonable compared to companies of similar size in Canada.
Management Team

Scott Van Rixel

TITLE
Chairman & CEO
TENURE
0.2 yrs

Tom Stein

TITLE
President

Steven Gledhill

TITLE
CFO & Director
AGE
58
TENURE
0.2 yrs

Jaime Pearson

TITLE
Chief Operating Officer

Jeremy Applen

TITLE
Chief Science & Procedures Officer

Samantha Collins

TITLE
Chief Marketing Officer

Richard Sellers

TITLE
Senior Vice President of West Coast Operations
Board of Directors

Scott Van Rixel

TITLE
Chairman & CEO

Steven Gledhill

TITLE
CFO & Director
AGE
58

Jamie Pearson

TITLE
Director

Daniel Nauth

TITLE
Director

Will Waggoner

TITLE
Director
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
X
Management checks
We assess Bhang's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Bhang has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

BHNG News

Simply Wall St News

What Kind Of Shareholders Own Bhang Inc. (CNSX:BHNG)?

Taking a look at our data on the ownership groups (below), it's seems that institutions are not on the share registry. … View our latest analysis for Bhang CNSX:BHNG Ownership Summary, July 25th 2019 What Does The Lack Of Institutional Ownership Tell Us About Bhang? … Insider Ownership Of Bhang While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders.

Simply Wall St -

BHNG Company Info

Description

Bhang Chocolate Company Inc. produces non-medicated and medicated chocolates. It offers medicinal, cannabis, and gourmet chocolates in Colorado, California, New Mexico, and Michigan. The company was founded in 2010 and is based in Oakland, California with an additional office in Miami, Florida.

Details
Name: Bhang Inc.
BHNG
Exchange: CNSX
Founded: 2010
CA$53,712,935
107,425,870
Website: http://www.bhangnation.com
Address: Bhang Inc.
851 81st Avenue,
Unit 221,
Oakland,
California, 94621,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
CNSX BHNG Subordinate Voting Shares Canadian National Stock Exchange CA CAD 10. Jul 2019
OTCPK BHNG.F Subordinate Voting Shares Pink Sheets LLC US USD 10. Jul 2019
Number of employees
Current staff
Staff numbers
0
Bhang employees.
Industry
Personal Products
Household
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/09/15 00:43
End of day share price update: 2019/09/13 00:00
Last earnings filing: 2019/08/29
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.