High Tide Inc
XTSX:HITI
Intrinsic Value
High Tide, Inc. engages in the manufacture and retail of cannabis smoking accessories and lifestyle products. [ Read More ]
The intrinsic value of one HITI stock under the Base Case scenario is 8.3 CAD. Compared to the current market price of 2.7 CAD, High Tide Inc is Undervalued by 67%.
Valuation Backtest
High Tide Inc
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Fundamental Analysis
Robust EBITDA Growth amid Low Revenue Increase
2024-Q1 Earnings Call
In Q1 2024, the company achieved a 25% sequential increase in adjusted EBITDA, outpacing a modest 1% rise in revenue, and a 90% year-over-year uplift. They maintained consistent same-store sales despite a national 6% sales decline, highlighting the strength of their discount club model and strict cost management. The acquisition of the popular Queen of Bud brand aligns with a strategy to improve margins and extend their 165-store portfolio, with plans for up to 30 new stores in Ontario alone. The ELITE membership program is expanding, raising prices from $30 to $35 and aiming to increase inventory contribution from 12% to 20%-30%. They continue to focus on efficient inventory management, boasting one of the lowest cannabis inventory turns in the industry.
Balance Sheet Decomposition
High Tide Inc
Current Assets | 65.3m |
Cash & Short-Term Investments | 28.7m |
Receivables | 4.5m |
Other Current Assets | 32.1m |
Non-Current Assets | 162m |
PP&E | 60.5m |
Intangibles | 99.4m |
Other Non-Current Assets | 2.1m |
Current Liabilities | 57.8m |
Accounts Payable | 6.2m |
Accrued Liabilities | 8.5m |
Short-Term Debt | 15.4m |
Other Current Liabilities | 27.8m |
Non-Current Liabilities | 31.9m |
Long-Term Debt | 28.7m |
Other Non-Current Liabilities | 3.2m |
Earnings Waterfall
High Tide Inc
Revenue
|
615.7m
CAD
|
Cost of Revenue
|
-448.4m
CAD
|
Gross Profit
|
167.3m
CAD
|
Operating Expenses
|
-166m
CAD
|
Operating Income
|
1.3m
CAD
|
Other Expenses
|
-40.9m
CAD
|
Net Income
|
-39.7m
CAD
|
Free Cash Flow Analysis
High Tide Inc
What is Free Cash Flow?
HITI Profitability Score
Profitability Due Diligence
High Tide Inc's profitability score is 41/100. The higher the profitability score, the more profitable the company is.
Score
High Tide Inc's profitability score is 41/100. The higher the profitability score, the more profitable the company is.
HITI Solvency Score
Solvency Due Diligence
High Tide Inc's solvency score is 49/100. The higher the solvency score, the more solvent the company is.
Score
High Tide Inc's solvency score is 49/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
HITI Price Targets Summary
High Tide Inc
According to Wall Street analysts, the average 1-year price target for HITI is 6.06 CAD with a low forecast of 4.29 CAD and a high forecast of 8.93 CAD.
Shareholder Return
HITI Price
High Tide Inc
Average Annual Return | -7.38% |
Standard Deviation of Annual Returns | 66.08% |
Max Drawdown | -90% |
Market Capitalization | 212.1m CAD |
Shares Outstanding | 75 086 823 |
Percentage of Shares Shorted | 0.8% |
HITI News
Last Important Events
High Tide Inc
Significant happenings or occurrences that are of interest to investors. These could be company-specific developments or market-wide shifts.
Sentiment Analysis
High Tide Inc
Company Profile
Country
Industry
Market Cap
Dividend Yield
Description
High Tide, Inc. engages in the manufacture and retail of cannabis smoking accessories and lifestyle products. The company is headquartered in Calgary, Alberta. The company went IPO on 2018-12-17. The firm operates as a retailer of recreational cannabis with approximately 110 locations across Ontario, Alberta, Manitoba and Saskatchewan. The firm is also a cannabis discount club retailer, featuring Canna Cabana, Meta Cannabis Co., and Meta Cannabis Supply Co. banners, with additional locations under development across the country. High Tide serves consumers through its established e-commerce platforms, including Grasscity.com, Smokecartel.com, Dailyhighclub.com, and Dankstop.com, and in the hemp-derived Cannabidiol (CBD) space through Nuleafnaturals.com, FABCBD.com, and BlessedCBD.co.uk, as well as its wholesale distribution division under Valiant Distribution, including the licensed entertainment product manufacturer Famous Brandz. The firm's brands also include Bud Room, a retail cannabis store located in Ottawa, Ontario.
Contact
IPO
Employees
Officers
The intrinsic value of one HITI stock under the Base Case scenario is 8.3 CAD.
Compared to the current market price of 2.7 CAD, High Tide Inc is Undervalued by 67%.