Fact based stock research
22nd Century Group (AMEX:XXII)

US90137F1030

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

22nd Century Group stock research in summary

xxiicentury.com

ANALYSIS: With an Obermatt Combined Rank of 4 (worse than 96% compared with investment alternatives), 22nd Century Group (Tobacco, USA) shares have lower financial characteristics compared with similar stocks. Shares of 22nd Century Group are a good value (attractively priced) with a consolidated Value Rank of 81 (better than 81% of alternatives) but show below-average growth (Growth Rank of 11), and are riskily financed (Safety Rank of 4), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 4, is a sell recommendation based on 22nd Century Group's financial characteristics. As the company 22nd Century Group's key financial metrics exhibit good value (Obermatt Value Rank of 81) but low growth (Obermatt Growth Rank of 11) and risky financing practices (Obermatt Safety Rank of 4), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 81% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	81
Growth Rank	11
Safety Rank	4
Combined Rank	4

Country	USA
Industry	Tobacco
Index	NASDAQ
Size class	X-Small

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: 22nd Century Group

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	n/a	25	81	81
GROWTH
GROWTH	n/a	71	11	11
SAFETY
SAFETY	n/a	16	26	4
SENTIMENT
SENTIMENT	n/a	34	1	^new
360° VIEW
360° VIEW	n/a	16	7	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better 22nd Century Group is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	n/a	25	81	81
GROWTH
GROWTH	n/a	71	11	11
SAFETY
SAFETY	n/a	16	26	4
COMBINED
COMBINED	n/a	9	23	4

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of 22nd Century Group the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 81 (better than 81% compared with alternatives) for 2024, 22nd Century Group shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for 22nd Century Group. Price-to-Sales (P/S) is 97, which means that the stock price compared with what market professionals expect for future sales is lower than for 97% of comparable companies, indicating a good value concerning 22nd Century Group's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio), which is more favorable than for 84% of alternatives (16% of peers have a higher ratio). But expected dividend yields with a Dividend Yield rank of 1 are lower than average (dividends are expected to be lower than 99% of other stocks) while the Price to Profit ratio (or Price to Earnings (P/E) ratio) is higher than average with a Price-to-Profit Rank of 29, making the stock more expensive compared with the company's expected profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 81, is a buy recommendation based on 22nd Century Group's stock price compared with the company's operational size and dividend yields. Low profits and low dividends as seen here for 22nd Century Group may indicate a restructuring phase. This could be transitory, making the company a good value when profits recover and dividends return to higher levels. If the stock price is compared with the size indicators for revenue and invested capital, it is on the lower side, making this stock a good value investment (apart from current profit and dividend expectations). We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	n/a	31	100	97
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	n/a	29	29	29
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	n/a	28	84	84
DIVIDEND YIELD
DIVIDEND YIELD	n/a	1	1	1
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	n/a	25	81	81

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of 22nd Century Group; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 11 (better than 11% compared with alternatives), 22nd Century Group shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four metrics below average for 22nd Century Group. While Profit Growth has a good rank of 76, as professionals currently expect the company to grow its profits more than 76% of its competitors, all other growth indicators are below market averages. Sales Growth has a rank of 16, which means that currently professionals expect the company to grow less than 84% of its competitors, while Capital Growth has a rank of 1 and Stock Returns have been below market median, with a rank of 3 (97% of alternative investments were better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 11, is a sell recommendation for growth and momentum investors. While revenue growth and capital growth are good growth momentum indicators, profit is less reliable, because profits may increase due to cost-cutting measures which typically indicate negative growth momentum. "You can save a dollar only once" is the saying about such situations. Growth Investors should look at company priorities closely if they are interested in growth, because the increase in profits is not usually an indicator of growth, and stock prices have been below market, too. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	n/a	98	6	16
PROFIT GROWTH
PROFIT GROWTH	n/a	25	11	76
CAPITAL GROWTH
CAPITAL GROWTH	n/a	41	93	1
STOCK RETURNS
STOCK RETURNS	n/a	59	1	3
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	n/a	71	11	11

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of 22nd Century Group.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 4 (better than 4% compared with alternatives), the company 22nd Century Group has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of 22nd Century Group is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for 22nd Century Group. Liquidity is at 41, meaning that the company generates less profit to service its debt than 59% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 1, meaning the company has an above-average debt-to-equity ratio. It has more debt than 99% of its competitors. Finally, Refinancing is at a rank of 3 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 97% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 4 (worse than 96% compared with alternatives), 22nd Century Group has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of 22nd Century Group because it may suffer significantly in case of future difficulties. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	n/a	64	69	1
REFINANCING
REFINANCING	n/a	37	31	3
LIQUIDITY
LIQUIDITY	n/a	9	19	41
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	n/a	16	26	4

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of 22nd Century Group and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	53	29	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	11	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	16	17	^new
MARKET PULSE
MARKET PULSE	n/a	66	13	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	34	1	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for 22nd Century Group.
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