Flora Growth (Flora Growth) Predictability Rank

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What is Flora Growth Predictability Rank?

Not Rated

Warren Buffett said many times that the companies he likes are:

1. Simple businesses that he understands
2. that have predictable and proven earnings and
3. with economic moat
4. those can be bought at a reasonable price.

It is hard to quantify "simple businesses that he (Buffett) understands", so we will focus on the other three characteristics instead. In GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank, we will show that the businesses that have predictable and proven earnings are usually also simple businesses that an average person could understand.

GuruFocus conducted a back test study of Warren Buffett's strategy of "buying good companies at fair prices" for the years from 1998-2008.

Flora Growth Predictability Rank Calculation

In our database there are 2403 stocks that have been traded from Jan. 2, 1998 to Aug. 31, 2008. We have the complete 10-year financial data and trading prices of these companies for this period. We rank the predictability of these companies based on the consistency of their revenue per share and EBITDA (earning before interest, tax, depreciation and amortization) per share over the past ten fiscal years, and study the correlation between the stock performances and the predictability of the business.

Our study may be subject to these biases and assumptions:

Dividend yields are not counted for investment returns
Effects of price changes due to spin-offs may not be fully adjusted
Study is subjected to survivorship bias due to de-listing, bankruptcy, LBO, M&A, etc.

The correlation between business predictability and investment returns of a company is showed below.

Correlation Between Business Predictability and Investment Returns

	Predictables	Non-Predictable	All stocks
Total Number of stocks	570	1833	2403
Total Lost Money	61	830	891
Total Lost More Than 50%	18	412	430
Total Lost More Than 90%	4	86	90
Average Gain	260.6%	100.0%	138.1%
Median Gain	150.0%	13.0%	39.0%
Maximum Gain	2852.0%	11483.0%	11483.0%
Maximum Loss	-100.0%	-100.0%	-100.0%
Annualized Average Gain	12.7%	6.7%	8.4%
Annualized Median Gain	8.9%	1.1%	3.1%

For the 570 predictable companies, we have seen strong correlation between the predictability of businesses and the stock performances over the past 10 years, regardless of the valuation of business at 1998. Accordingly, we have ranked the business predictability from 5-star to 1-star, as shown in this table.

Predictability Rank	5-Star	4.5-Star	4-Star	3.5-Star	3-Star	2.5-Star	2-Star	1-Star (non-predictable)	Average among all
% Out of All 2403 Stocks	3.3%	2.9%	3.7%	3.3%	3.3%	3.7%	3.3%	76.3%	100%
% that are in Loss (10y)	3%	10%	8%	9%	11%	18%	16%	45%	37%
Average Gain (10y)	364.6%	330.9%	278.0%	235.1%	243.5%	227.8%	154.8%	100.0%	138.1%
Median Gain (10y)	238.5%	193.5%	171.0%	159.0%	132.5%	113.5%	87.0%	13.0%	39.0%
Maximum Gainer	2228.0%	2547.0%	2452.0%	2852.0%	2432.0%	1892.0%	1807.0%	11483.0%	11483.0%
Maximum Loser	-82.0%	-53.0%	-67.0%	-100.0%	-83.0%	-100.0%	-78.0%	-100.0%	-100.0%
Annualized Average Gain	15.4%	14.6%	13.2%	12.0%	12.2%	11.7%	9.1%	6.7%	8.4%
Annualized Median Gain	12.1%	10.6%	9.8%	9.3%	8.2%	7.3%	6.0%	1.1%	3.1%

For detailed information about each predictability rank, please go to GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank

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Flora Growth (Flora Growth) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Flora Growth Corp (NAS:FLGC) » Definitions » Predictability Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

3406 South West 26th Terrace, Suite C-1, Fort Lauderdale, FL, USA, 33132

Website

https://www.floragrowth.com

Flora Growth Corp is a multi-national cannabis company that manufactures and distributes consumer packaged goods, cultivates and distributes medicinal cannabis, and distributes pharmaceutical products. Its reportable segments are; the commercial and wholesale segment (FGH and Cosechemos subsidiaries), the house of brands segment (JustCBD, Vessel, and Kasa Wholefoods Company subsidiaries), and the pharmaceuticals segment (Grupo Farmaceutico Cronomed and Breeze Laboratory subsidiaries). Geographically, the company operates in the United States, Germany, Colombia, the United Kingdom, and Canada. it derives a majority of its revenue from the United States.

Executives

Thomas Solomon	director	C/O FLORA GROWTH CORP., 365 BAY STREET; SUITE 800, TORONTO Z4 M5H 2V1
Kevin Taylor	director	C/O COOL HOLDINGS, INC., 2001 NW 84TH AVENUE, MIAMI FL 33122
Hussein Rakine	director, officer: Chief Executive Officer	5258 SW 183RD AVENUE, MIRAMAR FL 33029
Clifford Starke	director, officer: President	C/O FLORA GROWTH CORP., 3405 SW 26TH TERRACE, SUITE C-1, FORT LAUDERDALE FL 33312
Edward Woo	director	C/O FLORA GROWTH CORP., 3405 SW 26TH TERRACE, SUITE C-1, FORT LAUDERDALE FL 33312
John Timothy Leslie	director	C/O FLORA GROWTH CORP., 3405 SW 26TH TERRACE, SUITE C-1, FORT LAUDERDALE FL 33312
Marc Mastronardi	director	C/O FLORA GROWTH CORP., 3405 SW 26TH TERRACE, SUITE C-1, FORT LAUDERDALE FL 33312
Jason Warnock	officer: CCO	C/O FLORA GROWTH CORP., 3405 SW 26TH TERRACE, SUITE C-1, FORT LAUDERDALE FL 33312
Annabella Manalo Morgan	director	C/O FLORA GROWTH CORP., 3405 SW 26TH TERRACE, SUITE C-1, FORT LAUDERDALE FL 33312
Jessie Casner	officer: CMO	C/O FLORA GROWTH CORP., 3405 SW 26TH TERRACE, SUITE C-1, FORT LAUDERDALE FL 33312
Dany Vaiman	officer: Sr. VP Finance	C/O FLORA GROWTH CORP., 3405 SW 26TH TERRACE, SUITE C-1, FORT LAUDERDALE FL 33312
Elshad Garayev	officer: CFO	C/O FLORA GROWTH CORP., 3405 SW 26TH TERRACE, SUITE C-1, FORT LAUDERDALE FL 33312
Beverley Richardson	director	C/O FLORA GROWTH CORP., 3405 SW 26TH TERRACE, SUITE C-1, FORT LAUDERDALE FL 33312
Roa Juan Carlos Gomez	director	C/O FLORA GROWTH CORP., 3405 SW 26TH TERRACE, SUITE C-1, FORT LAUDERDALE FL 33312
Luis Merchan	director, officer: CEO & Chairman of the Board	C/O FLORA GROWTH CORP., 3405 SW 26TH TERRACE, SUITE C-1, FORT LAUDERDALE FL 33312