22nd Century Stock Intrinsic Value – 22ND CENTURY Reports Q3 Earnings for 2023 Fiscal Year
November 26, 2023
🌥️Earnings Overview
22ND CENTURY ($NASDAQ:XXII) reported total revenue of USD 17.8 million for the third quarter of fiscal year 2023 ending September 30, 2023, representing a 8.1% decline from the same quarter in the prior year. Net income for the quarter was reported as USD -72.7 million, a decrease from the figure of -13.1 million in the year-ago period.
Market Price
The financial results were far from favorable, as the company’s stock opened at $0.5 and fell to $0.4 by the end of trading, resulting in a 10.9% plunge in share price from its closing value of 0.5 the previous day. The news of 22ND CENTURY‘s earnings report saw investors showing their displeasure with the company’s financial performance, and this was reflected in the sharp decline in stock prices. Investors had expected to see an increase in share value due to the strong performance of the company’s recent products, but the Q3 report fell short of expectations. Analysts have speculated that the decline in share prices could be attributed to the company’s failure to deliver on anticipated growth in the third quarter.
In addition, some have raised questions about the effectiveness of 22ND CENTURY’s cost-cutting measures this quarter, as well as its ability to expand production and reduce expenses. Despite the dip in stock prices, 22ND CENTURY remains optimistic that it will be able to turn things around and make a strong comeback in future quarters. The company is currently focusing on expanding its production capacity, increasing its investment in R&D, and improving operational efficiency in order to turn its fortunes around. With such strategies in place, 22ND CENTURY is confident that it will bounce back from this disappointing Q3 report and deliver better results in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for 22nd Century. More…
| Total Revenues | Net Income | Net Margin |
| 82.41 | -138.66 | -111.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for 22nd Century. More…
| Operations | Investing | Financing |
| -69.25 | 39.55 | 37.69 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for 22nd Century. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 64.2 | 50.4 | 0.48 |
Key Ratios Snapshot
Some of the financial key ratios for 22nd Century are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 43.2% | – | -160.8% |
| FCF Margin | ROE | ROA |
| -91.2% | -191.7% | -129.0% |
Analysis – 22nd Century Stock Intrinsic Value
At GoodWhale, we have conducted an analysis of 22ND CENTURY‘s fundamentals. Our proprietary Valuation Line determined that the fair value of 22ND CENTURY share is approximately $26.4. However, at the time of writing, the stock is being traded at $0.4 – undervalued by 98.5%. This represents a huge opportunity for investors who can capitalize on this mispricing by buying the stock at the current price level. More…
Peers
The company’s mission is to reduce the harm caused by smoking. 22nd Century Group’s products are sold in the United States and internationally. 22nd Century Group’s competitors are Humble & Fume Inc, Pyxus International Inc, and Green Globe International Inc.
– Humble & Fume Inc ($OTCPK:HUMBF)
Humble & Fume is a publicly traded company with a market capitalization of 20.9 million as of 2022. The company’s return on equity is -81.83%. Humble & Fume is engaged in the business of manufacturing and selling smoking products and accessories. The company’s products include cigarettes, cigars, tobacco, and electronic cigarettes.
– Pyxus International Inc ($OTCPK:PYYX)
Pyxus International Inc is a publicly traded company with a market capitalization of $2.55 million as of March 2022. The company’s return on equity, a measure of profitability, was 10.13% during the same time period. Pyxus International is a holding company that operates in the tobacco industry through its subsidiaries. The company’s businesses include tobacco leaf growing, processing, and trading; cigarette manufacturing; and e-vapor products.
– Green Globe International Inc ($OTCPK:GGII)
The company’s market cap is 8.51M, which is a Return on Equity of 153.63%. The company’s main focus is on providing environmental solutions. This includes products and services related to water and wastewater treatment, renewable energy, and climate change.
Summary
Investors in 22ND CENTURY have recently seen a downturn in their stock prices following the release of the company’s financial results for the third quarter of fiscal year 2023. Total revenue for the quarter decreased by 8.1% compared to the same period in the previous year, and net income decreased from -13.1 million to -72.7 million. This could indicate that the company is not performing as well as expected, and investors should be cautious about investing in the company. It is important to analyze the financials of 22ND CENTURY and assess the current state of the market before making any decisions.
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