Wednesday, August 18, 2021

Stem Holdings, Inc. (STMH)(STEM:CA)
Moving Forward With the Farm-to-Home Strategy; Reports 3Q21 Results

Stem Holdings Inc is engaged in the purchasing, improving, and leasing of properties and finance assets which are operated by third parties and are used for the cultivation and retail sale of marijuana. Its properties includes 42nd Street, and Mulino Farm which are used for agriculture. The company generates its revenue in the form of rental income from tenants.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

3Q2021 Results. Stem reported third quarter record gross sales of $12.4 million and net sales of $10.6 million, a 104% increase and 103% increase, respectively, over the prior year’s $6.1 million gross sales and $5.2 million net sales. Gross margin was 14%, compared with 34% in the prior year period, due to reclassification of expenses. We had forecast net revenue of $12.75 million.

Positive EPS, But.  Stem recorded net income of $2.7 million in the third quarter, or EPS of $0.01. This compares to a loss of $826,000, or a loss of $0.01 per share, in the same period last year. The positive net income was the result of a $6.4 million change in fair value of warrant liability. Excluding the warrant liability gain, we estimate Stem would have reported a net loss of $3.8 million in ...

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.