High Tide Inc. Common Shares (HITI)
FairStock Score: 60/100 — STEADY
Key Financials
| Current Price | $2.59 |
| Market Cap | $213M |
| P/E Ratio | -6.64 |
| ROE | -26.04% |
| Dividend Yield | —% |
| Sector | Healthcare |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
As a Buffett-Graham investor, I start with durable earnings and a sound balance sheet. High Tide operates in cannabis retail, a competitive and regulated field. In fiscal Q2 2026, revenue was $179.3 million, but net income was -$197,000, a -0.11% net margin. That is near breakeven, yet not reliable owner earnings. The supplied data show revenue growth of 30.11% and profit growth of 93.20%, and trailing free cash flow is $14.9 million, a 7.0% FCF yield on the $213.2 million market cap at the 2026-10-13 close. That cash generation is a positive. However, at that close, FairStock calculates P/B of 2.97 and a negative P/E of -6.62, so there is no earnings-based value support. FairStock calculates ROE of -26.04% and ROCE of 5.74%; capital returns are modest. The balance sheet is the bigger worry: the supplied D/E is 1.03, and FairStock's Altman Z-Score is 0.21, which signals financial risk. FairStock's Piotroski is 6/9, middling. FairStock's Lynch category is none because it requires three years of filed results and has only 0. Cannabis retail has scale advantages but no wide moat; price competition and regulation limit pricing power. At 2.97 times book, I want a margin of safety. The near-breakeven quarter and weak Z-score do not provide it. I would need to see sustained net income, a stronger balance sheet, and consistency before calling this a Graham-style bargain.
In plain English: High Tide runs cannabis stores and online cannabis and accessory sales, mostly in Canada and the U.S. The business is growing sales and produces some free cash, but its latest reported quarter was still slightly unprofitable and it has debt. At $2.58, the price is not clearly cheap because profits are negative and the balance sheet carries risk.
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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash
Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer