Greenlane Holdings, Inc. (GNLN) has experienced a 96.1% drop in its stock price over the past year and remains below $1 – closing at just $0.31 in the last trading session. In the last month of 2022, Nasdaq issued a noncompliance notice to GNLN, giving the company until June 12 to raise its minimum bid to $1 to avoid delisting.
The company’s financial struggles have been evidenced by the broadening of losses and declining revenues. What are the next steps for GNLN to regain profitability? It remains uncertain, but it is important to examine some of the metrics that provide insight into the company’s current state.
Examining GNLN’s Dramatic Net Income Decline Over a Two-Year Period
The net income of GNLN had seen a general downward trend since June 2020, when it was $15.9 million. The last reported value in December 2022 was $115.8 million, a 633% increase in losses from June 2020. The losses fluctuated during this period, especially from September 2021 to September 2022, when the losses increased from $27.1 million to $109.6 million.
The trend of GNLN’s revenue over the two-year period from June 30, 2020, to December 31, 2022, has seen an overall increase. The revenue has fluctuated somewhat, with a significant decrease in the September 30, 2022, figures down to $171.15 million.
Decline of 72%: GNLN Share Price Over 6-Month Period
The overall trend of the data is a decrease in the share price of GNLN. Over the 6-month period from October 2022 to April 2023, the share price went from $1.10 to $0.31, representing a decline of 72%. The rate of decrease was decelerating, with the most significant drops occurring early in the period. Here is a chart of GNLN’s price over the past 180 days.
Unfavorable POWR Ratings
The overall rating of GNLN has been consistently at a D since October 29, 2022, which translates to a Sell in our POWR Ratings system. Also, it is ranked last in the 10-stock Tobacco category. The POWR Ratings are calculated considering 118 distinct factors, with each factor weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. The stock has an F grade for Stability and Quality and a D for Momentum and Sentiment.
Stocks to Consider Instead of Greenlane Holdings, Inc. (GNLN)
Other stocks in the Tobacco sector that may be worth considering are British American Tobacco Industries p.l.c. ADR (BTI), Japan Tobacco Inc. (JAPAY), and Vector Group Ltd. (VGR) -- have better POWR Ratings.
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GNLN shares were trading at $0.30 per share on Monday afternoon, down $0.01 (-4.27%). Year-to-date, GNLN has gained 4.35%, versus a 8.03% rise in the benchmark S&P 500 index during the same period.
About the Author: Subhasree Kar
Subhasree’s keen interest in financial instruments led her to pursue a career as an investment analyst. After earning a Master’s degree in Economics, she gained knowledge of equity research and portfolio management at Finlatics.
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