Cannabis stocks have had their fair share of ups and downs. Tilray stock is no different, having lost 63% of its value from its 2020 high. Tilray’s (NASDAQ:TLRY) share is down by over 96% from its high in 2018, making it less attractive.
Poor Technicalities And Fundamentals
The company’s stock has been on a downtrend, but what makes the situation worse are the poor technicalities and fundamentals of the company. The company had released its earnings report early in March 2020. 62 cents per share of non-GAAP loss was reported by the company missing the estimated figure by 24 cents. The company also failed to meet the GAAP loss estimate, with its GAAP loss being 2.14 dollars per share.
The company’s revenue tripled from its year-over-year figure amounting to 46.9 million dollars. The estimated revenue of the company has been 55.5 million dollars. The net loss reported by the company stood at 200 million dollars. Having failed to meet its cash requirements, the company also further diluted its investors by sales of stocks.
In 2017, Tilray had reported sales of 20.5 million dollars, generating profit worth 11.4 million dollars grossly – gross margins being 55.4%. In the following year, the company’s gross profit declined significantly, with its gross margin of 38%. In 2019, the gross margins declined, further becoming negative. This sharp decline was mostly a result of its Quarter 4 operations. The company had reported a gross margin of 23.37% in Quarter 1, 26.73% in Quarter 2, and 31% in Quarter 3.
The current assets in the company stood at 259 million dollars, of which the inventory accounted for 87 million dollars. The remaining 172 million dollars might be enough to cover the current liabilities of 92.4 million dollars. However, without positive cash flow or without positive profitability, the balance sheet may weaken more.
The company’s operating activities have resulted in negative cash flows for the past four years, worsening year after year. The operating cash deficits have been 3.3 million dollars, 6 million dollars, 46.2 million dollars, and 258 million dollars for 2016, 2017, 2018, and 2019 respectively.