Flora Growth Stock Price Prediction - Is FLGC A Buy?

Flora Growth Stock Price Prediction – Is FLGC A Buy?

Flora Growth Stock Price Prediction
Flora Growth Stock Price Prediction

Flora Growth Stock Price Prediction: Looking to invest in a company with the potential for growth? Check out Flora Growth, a Canadian cannabis cultivator and supplier. 

Without a question, Flora Growth is a major player in the marijuana market. The business has been able to grow quickly, and it currently has a broad range of products. But with such massive growth, it can be hard to know where the stock price is headed. 

In this blog post, we will take a look at some of the key factors that could influence Flora’s stock price and make Flora Growth stock prediction for where it could go in the future. So stay tuned!

Flora Growth (NASDAQ: FLGC) stocks are currently at 0.483 USD. Recent reports indicate that FLCG’s revenue is up 414% from 3Q 2021. Its revenue is expected to grow by 24% p.a. on average for the next 3 years. 

About Flora Growth Corp. (FLCG)

Flora Growth Corp (NASDAQ: FLCG) is a vertically-integrated medical cannabis company that develops and manufactures cannabis-based products. More than 1,000 retailers in the United States and Canada sell the company’s goods.

FLCG’s product line includes tinctures, capsules, topicals, and edibles. Flora Growth Corp. plans to expand its product offerings to include beauty and skincare products, as well as pet health products. In addition, the company has a clinical research program that is evaluating the efficacy of its products for various medical conditions.

Toronto, Canada, is where Flora Growth Corp. is headquartered. Luis Merchan, the company’s CEO, launched the business in 2019. Flora Growth Corp trades on the NASDAQ under the ticker symbol “FLCG.” It has a strong management team with extensive experience in the cannabis industry.

The ingredients in Flora Growth’s products are derived from cannabidiol (CBD), a non-psychoactive component of cannabis. Flora Growth Corp. has been working with scientists and medical professionals to develop a CBD-based formulation that could be used to prevent the spread of SARS-CoV-2, the virus that causes COVID-19. 

Key Executives:

  • Mr. Luis Merchan – Pres, CEO & Chairman
  • Dr. Bernard Raymond Wilson F.C.A., FCA, FCPA, ICD.D, LLD(H) – Advisor
  • Mr. Elshad Garayev CPA, CPA – Chief Financial Officer
  • Mr. Matthew S. Cohen – Gen. Counsel
  • Ms. Jessie Casner – Chief Marketing Officer
  • Mr. James Choe – Chief Strategy Officer

Flora Growth (FLCG) Financials

Market Cap37.171M
Enterprise Value31.90M
Shares Outstanding76.94M
Public Float60.98M
EBITDA-26.21M
Volume285,398
Avg. Volume520,281
52 Week Range0.3670 – 2.3800
200-Day Moving Average1.0538
PE Ratio (TTM)N/A
EPS (TTM)-0.4830
Forward Dividend & YieldN/A
Trailing P/EN/A
Forward P/EN/A

Profitability

Profit Margin-172.45%
Operating Margin (ttm)-95.92%

Management Effectiveness

Return on Assets (ttm)-23.02%
Return on Equity (ttm)-80.39%

Cash Flow Statement

Operating Cash Flow (ttm)-15.2M
Levered Free Cash Flow (ttm)-19.45M

Flora Growth Q3 2022 Earnings Report

Key Financial Results

  • Revenue: US$10.8m (up 414% from 3Q 2021).
  • Net loss: US$7.36m (loss widened by 104% from 3Q 2021).
  • US$0.096 loss per share (further deteriorated from US$0.082 loss in 3Q 2021).
  • Gross margin in the quarter improved from 29.6% to 46.2% YoY
  • As of September 30, 2022, the Company had approximately $5.9 million in cash compared to $37.6 million as of December 31, 2021.
Flora Growth Stock Price Prediction
Flora Growth Stock Price Prediction

Flora Growth EPS Misses Expectations

As per the latest report of the financial performance of Flora Growth, the revenue achieved in Q3 met the analysts’ expectations but the EPS (Earnings per share) missed the estimates given by analysts by 50%.

The company’s revenue is anticipated to increase by 24% p.a. on average over the next three years, compared to the US Personal Products industry’s projected 8.2% growth during the same period. FLCG stock is down 2.1% from a week ago.

Risk Analysis

According to the risk analysis undertaken by analysts, FLCG stock has been very volatile for the past 3 months. The current financial position indicates that Flora Growth is not currently earning any profits. Some analysts have even predicted that the company will not be earning profits for the next 3 years also.

Flora Growth has less than 1 year of cash runway and shareholders have been diluted in the past year. They also do not have a meaningful market capitalization (37.171 Million). 

The company’s CEO Luis Merchan said, “During the quarter, we exported products to several new markets, including distribution of our Colombian-grown high-CBD dried cannabis flower to Switzerland and the Czech Republic, as well as CBD isolate to the United States. Our global distribution network, coupled with our high-quality Colombian flower and derivatives, leave Flora well positioned to capitalize on the evolving global cannabis landscape.”

Recent Operational Highlights – Flora Growth Stock Price Prediction

Flora Growth Corp. appointed Brandon Konigsberg, a former executive at JP Morgan, and Elshad Garayev, a former executive at Amazon, to the board of directors and chief financial officer respectively, of the company.

The company announced a collaborative venture to process and distribute cannabis products across the nation with Colombia’s largest indigenous tribe.

The company has been awarded the Best M&A Deal at the Benzinga Cannabis Capital Conference for the acquisition of JustCBD.

Exports of CBD isolate and commercial cannabis products to countries like the Czech Republic, Switzerland, and the United States were completed successfully.

Signed a legally binding contract to purchase Franchise Global Health (FGH). Even though formal shareholder approval is one of the standard closing conditions for a deal of this kind, shareholders of FGH who own more than 73% of the company’s outstanding shares have committed to vote in support of the deal.

Is Flora Growth (FLCG) A Buy?

The analysts have given FLCG stock a consensus rating of Buy expecting potential growth in its stock prices over the coming years.

Now is an excellent time to buy FLCG stock. The company has strong growth potential, with analysts predicting that it will grow by around 300% in the coming years. The stock is currently undervalued, so there is significant upside potential. 

Additionally, FLCG has a solid history of producing results for shareholders. The company has consistently beaten earnings estimates and its share price has outperformed the market over the past five years. With all of these factors considered, FLCG is a great stock to buy right now.

Of course, there is always a risk when investing in any company, but those who believe in FLCG’s potential believe that the rewards outweigh the risks.

Flora Growth Stock Price Prediction

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Let’s Summarize

The future of Flora Growth is looking positive and its stock prices are predicted to rise as investors anticipate growth in the cannabis market. Having a solid management team in place, the company is poised to continue growing and expanding its operations. 

Also, with the release of its new product, expansion into new markets, and increase in sales, the stock price will continue to grow and become a leading player in the global cannabis market.

Thanks for following our analysis on Flora Growth Stock Price Prediction. To get more insights into the stock market, read our other stock prediction articles on Uppsc.org as well.

Shana Conzelman

Shana Conzelman is a shrewd businesswoman with a keen eye for stock market investments. She is very particular about the stocks she chooses to invest in, and takes great care to learn as much as possible about each company's stock prediction more

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