Charlotte's Web Holdings (CWBHF) Stock Analysis & Winston Score

Charlotte's Web Holdings makes hemp-derived CBD (cannabidiol) products sold directly to everyday consumers. Its core products include CBD oils, gummies, capsules, and topical creams marketed for wellness purposes like sleep, stress, and recovery. The company owns the Charlotte's Web brand, one of the most recognized names in the U.S. hemp CBD market.

Charlotte's Web earns revenue by selling products through its own website, retail stores, and mass-market chains like CVS and Walmart. It operates primarily in the United States, where it is one of the larger hemp CBD brands by market share. However, the company has struggled to turn a profit, and its negative operating margin reflects ongoing challenges with high costs and slow consumer demand growth. The key risk is continued regulatory uncertainty around CBD — the FDA has not yet established a clear framework for CBD in food and supplements, which limits how aggressively the company can market and distribute its products.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-9.0% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-110.4% YoY

YoY Growth Rate

Earnings declining

Insider Activity

30.6%ownership

Insiders own a meaningful stake in the company

Cash Runway

~15 months

$14M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Adequate runway but may need to raise capital within 2 years

Revenue declining

Charlotte's Web Holdings's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin

46.6%

Healthy — 46.6% gross margin

Operating Margin

-38.2%

Losing money on operations — -38.2%

ROCE

-11.2%

Weak — -11.2% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY

-2.0%

Shrinking sales (-2.0% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

0/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

N/A

—

Data not available

FCF Margin

-29.5%

Burning cash (-29.5%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

N/A

Data not available

Interest Cover

N/A

—

Data not available

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Valuation

P/E Ratio (TTM)

N/M

no trend

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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