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Delta 9 Cannabis

TSX:DN
Snowflake Description

Good value with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
DN
TSX
CA$44M
Market Cap
  1. Home
  2. CA
  3. Pharmaceuticals & Biotech
Company description

Delta 9 Cannabis Inc. operates as an integrated cannabis company. The last earnings update was 21 days ago. More info.


Add to Portfolio Compare Print
  • Delta 9 Cannabis has significant price volatility in the past 3 months.
DN Share Price and Events
7 Day Returns
10%
TSX:DN
-2.4%
CA Pharmaceuticals
2.1%
CA Market
1 Year Returns
-70.4%
TSX:DN
-74.4%
CA Pharmaceuticals
-21.2%
CA Market
DN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Delta 9 Cannabis (DN) 10% -1% -28.3% -70.4% - -
CA Pharmaceuticals -2.4% -12.9% -33.7% -74.4% -27.4% 188.5%
CA Market 2.1% -13.8% -21.9% -21.2% -19.3% -13.6%
1 Year Return vs Industry and Market
  • DN outperformed the Pharmaceuticals industry which returned -74.4% over the past year.
  • DN underperformed the Market in Canada which returned -21.2% over the past year.
Price Volatility
DN
Industry
5yr Volatility vs Market

Value

 Is Delta 9 Cannabis 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
Here we compare the current share price of Delta 9 Cannabis to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Delta 9 Cannabis.

TSX:DN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.7%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:DN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.4%
Equity Risk Premium S&P Global 5.4%
Pharmaceuticals Unlevered Beta Simply Wall St/ S&P Global 0.65
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.646 (1 + (1- 26.5%) (66.42%))
0.974
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.97
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.44% + (0.974 * 5.44%)
6.74%

Discounted Cash Flow Calculation for TSX:DN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Delta 9 Cannabis is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

TSX:DN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 6.74%)
2020 -7.52 Analyst x1 -7.04
2021 7.22 Analyst x1 6.33
2022 10.15 Est @ 40.61% 8.34
2023 13.07 Est @ 28.86% 10.07
2024 15.77 Est @ 20.63% 11.38
2025 18.12 Est @ 14.88% 12.25
2026 20.08 Est @ 10.85% 12.72
2027 21.69 Est @ 8.02% 12.87
2028 23.00 Est @ 6.05% 12.79
2029 24.08 Est @ 4.67% 12.54
Present value of next 10 years cash flows CA$92.00
TSX:DN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CA$24.08 × (1 + 1.44%) ÷ (6.74% – 1.44%)
CA$460.85
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$460.85 ÷ (1 + 6.74%)10
CA$240.05
TSX:DN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$92.00 + CA$240.05
CA$332.05
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$332.05 / 87.96
CA$3.77
TSX:DN Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$3.77
Current discount Discount to share price of CA$0.50
= -1 x (CA$0.50 - CA$3.77) / CA$3.77
86.9%

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

Current Discount
Amount off the current price Delta 9 Cannabis is available for.
Intrinsic value
>50%
Share price is CA$0.5 vs Future cash flow value of CA$3.77
Current Discount Checks
For Delta 9 Cannabis to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Delta 9 Cannabis's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Delta 9 Cannabis's share price is below the future cash flow value, and at a substantial discount (> 40%).
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 Delta 9 Cannabis's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Delta 9 Cannabis's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:DN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in CAD CA$0.16
TSX:DN Share Price ** TSX (2020-04-08) in CAD CA$0.5
Canada Pharmaceuticals Industry PE Ratio Median Figure of 12 Publicly-Listed Pharmaceuticals Companies 7.29x
Canada Market PE Ratio Median Figure of 501 Publicly-Listed Companies 10.83x

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

** Primary Listing of Delta 9 Cannabis.

TSX:DN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:DN Share Price ÷ EPS (both in CAD)

= 0.5 ÷ 0.16

3.14x

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

  • Delta 9 Cannabis is good value based on earnings compared to the CA Pharmaceuticals industry average.
  • Delta 9 Cannabis is good value based on earnings compared to the Canada market.
Price based on expected Growth
Does Delta 9 Cannabis's expected growth come at a high price?
Raw Data
TSX:DN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 3.14x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
Not available
Canada Pharmaceuticals Industry PEG Ratio Median Figure of 6 Publicly-Listed Pharmaceuticals Companies 0.9x
Canada Market PEG Ratio Median Figure of 234 Publicly-Listed Companies 0.71x

*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 Delta 9 Cannabis, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Delta 9 Cannabis's assets?
Raw Data
TSX:DN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in CAD CA$0.39
TSX:DN Share Price * TSX (2020-04-08) in CAD CA$0.5
Canada Pharmaceuticals Industry PB Ratio Median Figure of 157 Publicly-Listed Pharmaceuticals Companies 0.81x
Canada Market PB Ratio Median Figure of 2,366 Publicly-Listed Companies 1.02x
TSX:DN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:DN Share Price ÷ Book Value per Share (both in CAD)

= 0.5 ÷ 0.39

1.26x

* Primary Listing of Delta 9 Cannabis.

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

  • Delta 9 Cannabis is overvalued based on assets compared to the CA Pharmaceuticals industry average.
X
Value checks
We assess Delta 9 Cannabis'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 Pharmaceuticals 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 Pharmaceuticals industry average (and greater than 0)? (1 check)
  5. Delta 9 Cannabis has a total score of 4/6, 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.

Future Performance

 How is Delta 9 Cannabis expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

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
29.7%
Expected annual growth in revenue.
Earnings growth vs Low Risk Savings
Is Delta 9 Cannabis expected to grow at an attractive rate?
  • Unable to compare Delta 9 Cannabis's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Delta 9 Cannabis's earnings growth to the Canada market average as no estimate data is available.
  • Delta 9 Cannabis's revenue growth is expected to exceed the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:DN Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:DN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 29.7%
Canada Pharmaceuticals Industry Earnings Growth Rate Market Cap Weighted Average 65.6%
Canada Pharmaceuticals Industry Revenue Growth Rate Market Cap Weighted Average 35.6%
Canada Market Earnings Growth Rate Market Cap Weighted Average 6.4%
Canada Market Revenue Growth Rate Market Cap Weighted Average 3.4%

*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
TSX:DN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:DN Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 82 10 1
2021-12-31 73 9 2
2020-12-31 50 5 1
2020-04-09
TSX:DN Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-12-31 32 -12 14
2019-09-30 26 -10 12
2019-06-30 21 -14 11
2019-03-31 13 -15 10
2018-12-31 8 -9 -8
2018-09-30 3 -11 -12
2018-06-30 2 -7 -11
2018-03-31 1 -5 -9
2017-12-31 1 -5 -8
2017-09-30 1 -3 -2
2017-06-30 1 -2 -2
2017-03-31 1 -1 -1

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Delta 9 Cannabis is high growth as no earnings estimate data is available.
  • Delta 9 Cannabis's revenue is expected to grow significantly at over 20% yearly.
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
TSX:DN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Delta 9 Cannabis Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:DN Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31
2020-04-09
TSX:DN Past Financials Data
Date (Data in CAD Millions) EPS *
2019-12-31 0.16
2019-09-30 0.14
2019-06-30 0.13
2019-03-31 0.11
2018-12-31 -0.10
2018-09-30 -0.16
2018-06-30 -0.16
2018-03-31 -0.16
2017-12-31 -0.16
2017-09-30 -0.06
2017-06-30 -0.05
2017-03-31 -0.04

*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 Delta 9 Cannabis will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Delta 9 Cannabis'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.
Delta 9 Cannabis has a total score of 2/6, 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.

Past Performance

  How has Delta 9 Cannabis 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 Delta 9 Cannabis's growth in the last year to its industry (Pharmaceuticals).
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.
  • Delta 9 Cannabis has delivered over 20% year on year earnings growth in the past 5 years.
  • Delta 9 Cannabis has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Delta 9 Cannabis has become profitable in the last year making it difficult to compare the CA Pharmaceuticals industry average.
Earnings and Revenue History
Delta 9 Cannabis'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 Delta 9 Cannabis Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:DN Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 31.77 13.74 18.60
2019-09-30 26.45 11.88 19.40
2019-06-30 21.04 11.00 19.09
2019-03-31 12.87 9.81 17.28
2018-12-31 7.57 -8.49 14.24
2018-09-30 2.60 -12.11 9.95
2018-06-30 1.65 -10.55 6.81
2018-03-31 1.13 -9.38 4.62
2017-12-31 0.94 -7.87 2.96
2017-09-30 0.77 -2.46 2.22
2017-06-30 0.58 -2.10 2.04
2017-03-31 0.52 -1.43 1.73
2016-12-31 0.50 -1.35 1.62
2015-12-31 0.61 -1.00 1.34

*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.
  • Delta 9 Cannabis has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Delta 9 Cannabis used its assets more efficiently than the CA Pharmaceuticals industry average last year based on Return on Assets.
  • It is difficult to establish if Delta 9 Cannabis 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 Delta 9 Cannabis'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 Pharmaceuticals 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.
Delta 9 Cannabis has a total score of 3/6, 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.

Health

 How is Delta 9 Cannabis'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 Delta 9 Cannabis's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Delta 9 Cannabis is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Delta 9 Cannabis's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Delta 9 Cannabis'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 1.4x 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 Delta 9 Cannabis Company Filings, last reported 3 months ago.

TSX:DN Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 34.43 20.35 5.85
2019-09-30 35.05 20.65 10.22
2019-06-30 36.38 7.41 3.04
2019-03-31 46.07 7.49 7.76
2018-12-31 35.31 5.44 16.23
2018-09-30 36.56 0.05 23.21
2018-06-30 22.07 0.05 13.91
2018-03-31 23.39 0.12 21.25
2017-12-31 24.56 0.12 23.55
2017-09-30 -2.47 3.01 0.18
2017-06-30 -1.63 3.05 0.96
2017-03-31 -1.40 0.89 0.12
2016-12-31 -1.40 0.89 0.12
2015-12-31 0.09 0.16 0.12
  • Delta 9 Cannabis's level of debt (59.1%) compared to net worth is high (greater than 40%).
  • Unable to establish if Delta 9 Cannabis's debt level has increased without past 5-year debt data.
  • Operating cash flow is negative therefore debt is not well covered.
  • Unable to confirm if the interest payments on Delta 9 Cannabis's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Delta 9 Cannabis'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. Delta 9 Cannabis has a total score of 2/6, 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.

Dividends

 What is Delta 9 Cannabis'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 Delta 9 Cannabis dividends.
If you bought CA$2,000 of Delta 9 Cannabis 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 Delta 9 Cannabis's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Delta 9 Cannabis'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
TSX:DN 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 2 Analyst Estimates (S&P Global) See Below
North America Pharmaceuticals Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 2.9%
Canada Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 4.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.3%
Canada Bottom 25% Dividend Yield 25th Percentile 2.6%
Canada Top 25% Dividend Yield 75th Percentile 8.2%

Industry and Market average data is calculated daily.

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

TSX:DN Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31
2020-04-09

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

  • Unable to perform a dividend volatility check as Delta 9 Cannabis has not reported any payouts.
  • Unable to verify if Delta 9 Cannabis's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Delta 9 Cannabis's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Delta 9 Cannabis 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 Delta 9 Cannabis's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - 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 Delta 9 Cannabis afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Delta 9 Cannabis 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.

Management

 What is the CEO of Delta 9 Cannabis'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
John Arbuthnot
COMPENSATION CA$112,300
AGE 29
TENURE AS CEO 2.5 years
CEO Bio

Mr. John William Arbuthnot, IV, also known as John, has been Chief Executive Officer at Delta 9 Cannabis Inc. since October 31, 2017. Mr. Arbuthnot co-founded Delta 9 in 2012 and serves as its Vice-President. He has been responsible Person in Charge since January 2013, where he is responsible for management of Delta 9's activities under its licenses and regulatory compliance. He served as Chief Executive Officer and Director of Svt Capital Corp since November 1, 2017. He has been Director at Delta 9 Cannabis Inc. since October 31, 2017.

CEO Compensation
  • John's compensation has been consistent with company performance over the past year, both up more than 20%.
  • John's remuneration is lower than average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the Delta 9 Cannabis management team in years:

2.5
Average Tenure
  • The tenure for the Delta 9 Cannabis management team is about average.
Management Team

Bill Arbuthnot

TITLE
Co-Founder
COMPENSATION
CA$112K
AGE
65
TENURE
2.5 yrs

John Arbuthnot

TITLE
Co-Founder
COMPENSATION
CA$112K
AGE
29
TENURE
2.5 yrs

Jim Lawson

TITLE
CFO & Controller
COMPENSATION
CA$269K
TENURE
1.6 yrs

Matthew Sodomsky

TITLE
Chief Technology Officer
Board of Directors Tenure

Average tenure and age of the Delta 9 Cannabis board of directors in years:

2.5
Average Tenure
53
Average Age
  • The average tenure for the Delta 9 Cannabis board of directors is less than 3 years, this suggests a new board.
Board of Directors

Bill Arbuthnot

TITLE
Co-Founder
COMPENSATION
CA$112K
AGE
65
TENURE
2.5 yrs

John Arbuthnot

TITLE
Co-Founder
COMPENSATION
CA$112K
AGE
29
TENURE
2.5 yrs

Nitin Kaushal

TITLE
Independent Director
COMPENSATION
CA$7K
AGE
53
TENURE
2.5 yrs

Joanne Duhoux-Defehr

TITLE
Independent Director
COMPENSATION
CA$7K
AGE
46
TENURE
2.4 yrs

Hugh Aird

TITLE
Independent Director
COMPENSATION
CA$7K
AGE
63
TENURE
1.6 yrs
Who owns this company?
Recent Insider Trading
  • Delta 9 Cannabis individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
10. Feb 20 Sell Joanne Duhoux-Defehr Individual 03. Feb 20 04. Feb 20 -50,000 CA$0.65 CA$-30,624
05. Feb 20 Sell John Arbuthnot Individual 31. Jan 20 05. Feb 20 -235,500 CA$0.62 CA$-142,145
20. Nov 19 Buy John Arbuthnot Individual 19. Nov 19 20. Nov 19 40,000 CA$0.42 CA$16,207
25. Oct 19 Sell John Arbuthnot Individual 21. Oct 19 23. Oct 19 -326,000 CA$0.66 CA$-197,184
15. Oct 19 Buy John Arbuthnot Individual 15. Oct 19 15. Oct 19 23,500 CA$0.61 CA$14,335
09. Oct 19 Sell John Arbuthnot Individual 09. Oct 19 09. Oct 19 -25,000 CA$0.62 CA$-15,600
20. Aug 19 Buy John Arbuthnot Individual 19. Aug 19 19. Aug 19 10,500 CA$0.92 CA$9,315
31. May 19 Buy John Arbuthnot Individual 31. May 19 31. May 19 28,500 CA$1.47 CA$41,895
X
Management checks
We assess Delta 9 Cannabis'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. Delta 9 Cannabis 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.

News

Simply Wall St News

Company Info

Description

Delta 9 Cannabis Inc. operates as an integrated cannabis company. The company, through its subsidiary, Delta 9 Bio-Tech Inc., engages in the production, distribution, and sale of medical and recreational cannabis and related merchandise and devices. The company owns and operates a chain of retail stores under the Delta 9 Cannabis Store brand. Delta 9 Cannabis Inc. was founded in 2012 and is headquartered in Winnipeg, Canada.

Details
Name: Delta 9 Cannabis Inc.
DN
Exchange: TSX
Founded: 2012
CA$43,541,921
87,963,478
Website: http://www.delta9.ca
Address: Delta 9 Cannabis Inc.
P.O. Box 68096,
Osborne Village,
Winnipeg,
Manitoba, R3L 2V9,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX DN Common Shares The Toronto Stock Exchange CA CAD 01. Nov 2017
OTCPK VRND.F Common Shares Pink Sheets LLC US USD 01. Nov 2017
DB V5D1 Common Shares Deutsche Boerse AG DE EUR 01. Nov 2017
BST V5D1 Common Shares Boerse-Stuttgart DE EUR 01. Nov 2017
Number of employees
Current staff
Staff numbers
174
Delta 9 Cannabis employees.
Industry
Pharmaceuticals
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/09 00:56
End of day share price update: 2020/04/08 00:00
Last estimates confirmation: 2020/04/08
Last earnings filing: 2020/03/19
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


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.