THC BioMed International Ltd. reports financial results for the quarter ended April 30, 2017.
Highlights
- Summary numbers: Revenues of USD 0.03 million, Net Earnings of USD -0.56 million.
- Change in operating cash flow of -859.97% compared to same period last year is about the same as change in earnings, likely no significant movement in accruals or reserves.
- Narrowing of operating margins contributed to decline in earnings.
The table below shows the preliminary results and recent trends for key metrics such as revenues and net income growth:
| | 2017-04-30 | 2017-01-31 | 2016-10-31 | 2016-07-31 | 2016-04-30 |
| Relevant Numbers (Quarterly) | | | | | |
| Revenues (mil) | 0.03 | 0 | 0 | 0 | 0.19 |
| Revenue Growth (%YOY) | -85.77 | -98.68 | 0 | 0 | 0 |
| Earnings (mil) | -0.56 | 0.09 | 0.53 | -0.04 | -0 |
| Earnings Growth (%YOY) | -11484.22 | 105.3 | 334.04 | 96.26 | 98.54 |
| Net Margin (%) | -2076.3 | 3934.33 | N/A | N/A | -2.55 |
| EPS | -0.01 | 0 | 0.01 | -0 | -0 |
| Return on Equity (%) | -32.88 | 4.92 | 50.32 | -12.35 | -2.54 |
| Return on Assets (%) | -85.76 | 13.38 | 105.71 | -11.98 | -1.84 |
Access our Ratings and Scores for THC BioMed International Ltd.
Market Share Versus Profits
Compared to the same period last year, THCBF-US‘s change in revenue was close to the amount of its change in earnings. It remains to be seen how the rest of its peer group’s results will turn out and if THCBF-US‘s performance is a sign of any major shift in the composition of market share in this sector. Also, for comparison purposes, revenues changed by 1,016.73% and earnings by -689.34% compared to the previous period.
Cash Versus Earnings – Sustainable Performance?
It is important to examine a company¿½s cash versus earnings numbers to gauge whether its performance is sustainable.
THCBF-US‘s year-on-year change in operating cash flow of -859.97% is around its change in earnings. This suggests that there are likely no significant movement in accruals or reserves for managing earnings this period.
Margins
The company’s decline in earnings has been influenced by the following factors: (1) Decline in operating margins (EBIT margins) from -1.78% to -1,234.67% and (2) one-time items that contributed to a decrease in pretax margins from -2.55% to -2,076.30%
Access our Ratings and Scores for THC BioMed International Ltd.
Company Profile
THC BioMed International Ltd. engages in the research, development, and cultivation of medical cannabis. It also provides horticulture training, record keeping and documenting, research studies, and analytical services. The company was founded on February 2, 1982 and is headquartered in Kelowna, Canada.
CapitalCube does not own any shares in the stocks mentioned and focuses solely on providing unique fundamental research and analysis on approximately 50,000 stocks and ETFs globally. Try any of our analysis, screener or portfolio premium services free for 7 days. To get a quick preview of our services, check out our free quick summary analysis of THCBF-US.