Hexo Corp Stock Analysis:
Analysts rate Hexo Corp with a consensus Hold rating and a 12-month average target price of $.46 per share.
Based on the Hexo Corp stock forecasts from 6 analysts, the average analyst target price for Hexo Corp is CAD 0.46 over the next 12 months. Hexo Corp’s average analyst rating is Hold . Stock Target Advisor’s own stock analysis of Hexo Corp is Bearish, which is based on 2 positive signals and 5 negative signals. At the last closing, Hexo Corp’s stock price was CAD 0.30. Hexo Corp’s stock price has changed by +27.66% over the past week, +17.65% over the past month and -86.11% over the last year.
About Hexo Corp (HEXO:CA:TSX)
HEXO Corp., through its subsidiaries, produces, markets, and sells cannabis in Canada. The company offers its adult-use and medical products under the HEXO brand name. It also provides cannabis beverages under the Little Victory, House of Terpenes, Mollo, Veryvell, and XMG brands; and cannabis products under UP Cannabis, Original Stash, and Up brand names. HEXO Corp. has a strategic alliance with Tilray Brands, Inc. The company was formerly known as The Hydropothecary Corporation and changed its name to HEXO Corp. in August 2018. HEXO Corp. was founded in 2013 and is headquartered in Gatineau, Canada.
What we like:
Underpriced compared to book value
The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.
Superior Revenue Growth
This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.
What we don’t like:
The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.
Below median dividend returns
The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.
The company had negative total cash flow in the most recent four quarters.
Negative free cash flow
The company had negative total free cash flow in the most recent four quarters.
Low Earnings Growth
This stock has shown below median earnings growth in the previous 5 years compared to its sector.