Thinking to drop GREENLANE (NASDAQ:GNLN) based on its current debt commitments?

The next earnings report is expected on the 3rd of June 2021. The stock is still going through an active upward rally. GREENLANE HOLDINGS Net Cash Flow from Financing is quite stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Financing is estimated at 100.48 Million. Effect of Exchange Rate Changes on Cash is expected to rise to about 109.2 K this year, although the value of Earnings Before Interest Taxes and Depreciation Amortization EBITDA will most likely fall to (13.1 M). As many baby boomers are still indifferent towards healthcare space, it makes sense to outline GREENLANE HOLDINGS INC as a unique choice for millenniums. We will evaluate why recent GREENLANE HOLDINGS price moves suggest a bounce in May.
Published over a year ago
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Reviewed by Michael Smolkin

This firm currently holds 11.98 M in liabilities with Debt to Equity (D/E) ratio of 0.15, which may suggest the firm is not taking enough advantage from borrowing.
On a scale of 0 to 100, GREENLANE HOLDINGS holds a performance score of 7. The company retains a Market Volatility (i.e. Beta) of 2.0228, which attests to a somewhat significant risk relative to the market. Let's try to break down what GREENLANE's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, GREENLANE HOLDINGS will likely underperform. Although it is vital to follow GREENLANE HOLDINGS INC current price history, it is good to be conservative about what you can do with the information regarding equity current price movements. The approach to determining future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. We have found twenty-eight technical indicators for GREENLANE HOLDINGS INC, which you can use to evaluate the performance of the firm. Please utilizes GREENLANE HOLDINGS value at risk, and the relationship between the jensen alpha and skewness to make a quick decision on whether GREENLANE HOLDINGS INC current trending patterns will revert.
Greenlane Holdings financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Greenlane Holdings, including all of Greenlane Holdings's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Greenlane Holdings assets, the company is considered highly leveraged. Understanding the composition and structure of overall Greenlane Holdings debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Watch out for price decline

Please consider monitoring Greenlane Holdings on a daily basis if you are holding a position in it. Greenlane Holdings is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Greenlane Holdings stock to be traded above the $1 level to remain listed. If Greenlane Holdings stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

Understanding Greenlane Total Debt

Greenlane Holdings liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Greenlane Holdings has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Greenlane Holdings balance sheet include debt obligations and money owed to different Greenlane Holdings vendors, workers, and loan providers. Below is the chart of Greenlane main long-term debt accounts currently reported on its balance sheet.
You can use Greenlane Holdings financial leverage analysis tool to get a better grip on understanding its financial position

How important is Greenlane Holdings's Liquidity

Greenlane Holdings financial leverage refers to using borrowed capital as a funding source to finance Greenlane Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Greenlane Holdings financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Greenlane Holdings' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Greenlane Holdings' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Greenlane Holdings's total debt and its cash.

An Additional Perspective On Greenlane Holdings

The company reported the previous year's revenue of 139.27 M. Net Loss for the year was (13.99 M) with profit before overhead, payroll, taxes, and interest of 31.09 M.

Asset Breakdown

35.8 M
Assets Non Current
Goodwill
107.3 M
Current Assets
Total Assets143.06 Million
Current Assets107.29 Million
Assets Non Current35.77 Million
Goodwill17.26 Million

Will GREENLANE HOLDINGS growth be reasonable after the rise?

The value at risk is down to -7.88 as of today. GREENLANE HOLDINGS INC is displaying above-average volatility over the selected time horizon. Investors should scrutinize GREENLANE HOLDINGS INC independently to ensure intended market timing strategies are aligned with expectations about GREENLANE HOLDINGS volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure GREENLANE HOLDINGS's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact GREENLANE HOLDINGS's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Takeaway

Whereas many of the other players under the pharmaceutical retailers industry are still a bit expensive, GREENLANE HOLDINGS may offer a potential longer-term growth to institutional investors. To summarize, as of the 1st of April 2021, we believe GREENLANE HOLDINGS is currently overvalued. It hyperactively responds to market trends and projects very low chance of bankruptcy in the next two years. Our latest 30 days 'Buy-Sell' recommendation on the company is Hold.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Greenlane Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.

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