As of May 22, 2025, C21 Investments Inc has a Discounted Cash Flow (DCF) derived fair value of $0.03 per share. With the current market price at $0.20, this represents a potential upside of -84.7%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $0.03 |
| DCF Fair Value (10-year) | $0.03 |
| Potential Upside (5-year) | -86.3% |
| Potential Upside (10-year) | -84.7% |
| Discount Rate (WACC) | 7.2% - 9.5% |
Revenue is projected to grow from $4 million in 03-2024 to $6 million by 03-2034, representing a compound annual growth rate of approximately 4.1%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 03-2024 | 4 | 84% |
| 03-2025 | 5 | 5% |
| 03-2026 | 5 | 2% |
| 03-2027 | 5 | 2% |
| 03-2028 | 5 | 4% |
| 03-2029 | 5 | 2% |
| 03-2030 | 5 | 2% |
| 03-2031 | 6 | 5% |
| 03-2032 | 6 | 2% |
| 03-2033 | 6 | 2% |
| 03-2034 | 6 | 2% |
Net profit margin is expected to improve from -1% in 03-2024 to 5% by 03-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 03-2024 | (0) | -1% |
| 03-2025 | 0 | 5% |
| 03-2026 | 0 | 5% |
| 03-2027 | 0 | 5% |
| 03-2028 | 0 | 5% |
| 03-2029 | 0 | 5% |
| 03-2030 | 0 | 5% |
| 03-2031 | 0 | 5% |
| 03-2032 | 0 | 5% |
| 03-2033 | 0 | 5% |
| 03-2034 | 0 | 5% |
with a 5-year average of $1 million. Projected CapEx is expected to maintain at approximately 3% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 03-2025 | 1 |
| 03-2026 | 0 |
| 03-2027 | 0 |
| 03-2028 | 0 |
| 03-2029 | 0 |
| 03-2030 | 0 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 9 |
| Days Inventory | 182 |
| Days Payables | 89 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 6M/2025 | 1 | 0 | 0 | (0) | 1 |
| 2026 | 1 | 0 | 0 | 0 | 0 |
| 2027 | 1 | 0 | 0 | 0 | 0 |
| 2028 | 0 | 0 | 0 | (0) | 0 |
| 2029 | 0 | 0 | 0 | 0 | 0 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 0.03 | -86.3% |
| 10-Year DCF (Growth) | 0.03 | -84.7% |
| 5-Year DCF (EBITDA) | 0.08 | -58.1% |
| 10-Year DCF (EBITDA) | 0.07 | -65.0% |
Is C21 Investments Inc (CXXI.CN) a buy or a sell? C21 Investments Inc is definitely a sell. Based on our DCF analysis, C21 Investments Inc (CXXI.CN) appears to be overvalued with upside potential of -84.7%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider reducing exposure at the current market price of $0.20.