Reducing the Harm Caused by Smoking
Fundamentals
Overview:
HQ: Williamsville, NY
Facility: N Carolina
Symbol/Exchanges: XXII (NYSE)
CEO: Henry Sicignano
Focus: Strong
22nd Century is a plant biotech company focused on developing technology to control the amount of nicotine in tobacco (primarily lower it to reduce harm)—and the level of cannabinoids in cannabis, through plant breeding and genetics. Both of these are potentially “hot” future commercial areas.
Size:
Market Cap: US$ 336 mil
Enterprise Value: $279 mil
Markets: Strong
Primary: US, France, Europe
Operations: Neutral
Integration/Diversification:
Vertically integrated: No
Horizontally diversified: Yes, it has interests in both tobacco and cannabis, for example.
Financials: Neutral
Valuation: Strong
Current share price: $2.71
Price to Sales: 14.3 (Tobacco industry = 5) (Pharmaceutical industry=7)
EV / revenue: 11.9
EV / revenue rank in industry: NA
Branding: Neutral
Their SPECTRUM line features 24 styles, in regular and menthol versions, with a fixed level of tar but 8 different levels of nicotine. These vary from Very Low Nicotine (VLN) cigarettes (97% less than normal) to relatively high nicotine yields.
Recommendation: Neutral