22nd Century Group (XXII) Stock Analysis — November 2026
Executive Summary
22nd Century Group (NASDAQ: XXII) is a cannabis biotech company currently priced at $0.0420 per share with a market capitalization of $30.0K. The company generates trailing twelve-month revenue of $14.5M and year-over-year revenue growth of -27.44%. The stock trades on the NASDAQ exchange in the United States market, and is positioned as a small-cap player within the cannabis sector.
Key Takeaways
22nd Century Group has a market cap of $30.0K, making it a small-cap cannabis company listed on the NASDAQ.
Trailing twelve-month revenue is $14.5M with year-over-year growth of -27.4%. Declining revenue is a concern that warrants attention.
22nd Century Group holds $6.1M in cash against $560.0K in debt, resulting in a net cash position of $5.5M and an estimated 8.7 months of cash runway.
The stock trades at a P/S ratio of 0.00x and EV/Revenue of -0.38x. Relatively low multiples could indicate an undervalued opportunity.
At $0.0420, the stock trades at 0% of its 52-week range ($0.0356 – $447.00). Trading near yearly lows could present value for contrarian investors.
22nd Century Group Company Overview
22nd Century Group (NASDAQ: XXII) is a cannabis biotech company currently trading at $0.0420 per share with a market capitalization of $30.0K. The stock declined +13.04% in the most recent trading session on volume of 42.3M shares. 22nd Century Group is headquartered in the United States and employs approximately 56 people. As a participant in the cannabis biotech segment, the company operates within one of the most dynamic and rapidly evolving sectors of the North American economy.
On the revenue front, 22nd Century Group generated $14.5M in trailing twelve-month (TTM) revenue, reflecting year-over-year growth of -27.4%. This growth rate is trailing the Biotech sector average of +25.2%. Revenue trends in the cannabis industry are closely watched by analysts, as the sector continues to navigate pricing compression, oversupply dynamics in certain markets, and the ongoing burden of IRS Section 280E, which prevents cannabis businesses from deducting ordinary business expenses at the federal level.
Financial Analysis
22nd Century Group generated $14.5M in trailing twelve-month revenue, reflecting year-over-year growth of -27.44%.
Revenue momentum is a critical metric for cannabis companies, as the industry continues to evolve through shifts in consumer demand, regulatory changes, and competitive dynamics. 22nd Century Group's revenue decline of -27.44% is a notable concern that may be attributable to market headwinds, competitive pressure, pricing compression, or strategic transitions. Investors should closely monitor whether this trend stabilizes or accelerates in coming quarters. The cannabis industry's profitability dynamics are heavily influenced by IRS Section 280E, which prevents plant-touching operators from deducting ordinary business expenses for federal income tax purposes, effectively creating tax rates that can exceed 70% of gross profit.
Valuation Analysis
From a valuation perspective, 22nd Century Group trades at a price-to-sales (P/S) ratio of 0.00x, which is below the sector median of 3.16x, which could indicate the stock is undervalued relative to peers or that the market has concerns about the company's growth trajectory. The enterprise value-to-revenue (EV/Revenue) multiple stands at -0.38x. Cannabis stock valuations have compressed significantly from their 2021 highs, and current multiples reflect a more mature market environment where investors demand clear paths to profitability. For context, the broader Biotech sector contains 4 publicly traded companies tracked by Cannabismarketcap, and 22nd Century Group's valuation should be considered within the context of its specific growth profile and competitive positioning.
At a price-to-sales ratio of 0.00x and an enterprise value-to-revenue multiple of -0.38x, 22nd Century Group's valuation reflects the market's current assessment of the company's growth potential and risk profile. Enterprise value — calculated as market capitalization plus total debt minus cash — stands at approximately -$5.5M, providing a more complete picture of the company's total valuation when accounting for balance sheet items. Investors should compare these multiples against both direct sector peers and historical ranges to determine whether XXII is trading at a premium or discount.
Balance Sheet Deep Dive
The company holds a net cash position of $5.5M, with $6.1M in cash and equivalents against $560.0K in total debt. This provides a financial cushion of approximately 8.7 months of operating runway at current burn rates. Access to capital remains a persistent challenge for cannabis companies, particularly plant-touching operators that are excluded from traditional banking services and institutional lending. Many cannabis companies have turned to sale-leaseback transactions, private placements, and at-the-market (ATM) equity offerings to fund operations. 22nd Century Group's balance sheet should be evaluated with these industry-specific constraints in mind.
22nd Century Group maintains a net cash position of $5.5M, which represents a meaningful financial cushion. With $6.1M in cash and equivalents against $560.0K in total debt, the company has an estimated 9 months of operating runway at the current rate of cash consumption. This runway provides management with flexibility to pursue organic growth initiatives, evaluate strategic M&A opportunities, and navigate the capital-constrained cannabis industry without immediate pressure to raise dilutive equity capital.
The company's annual share dilution rate is not reported in our data. With 714.0K shares currently outstanding, any additional equity issuance directly impacts per-share metrics including earnings per share, book value per share, and ownership percentage.
Cannabis Biotech Sector Context
Within the Cannabis Biotech sector, 22nd Century Group ranks #4 out of 4 companies by market capitalization, commanding a 0.0% share of the sector's total market cap of $15.03B. Cannabis biotech companies focus on developing pharmaceutical products derived from cannabinoids. These firms typically pursue FDA-approved drug development pathways and conduct clinical trials to bring cannabinoid-based therapeutics to market. The largest company in the sector by market cap is Jazz Pharmaceuticals (JAZZ) at $14.90B, followed by InnocanPharma (INNPF) at $93.1M.
By revenue, 22nd Century Group ranks #3 of 3 sector companies that report revenue, with $14.5M in trailing twelve-month sales. The sector's top revenue generator is Jazz Pharmaceuticals at $4.72B. Revenue growth of -27.4% year-over-year reflects challenges that may include market headwinds, competitive pressure, or strategic transitions.
22nd Century Group occupies a smaller position within the Cannabis Biotech sector. With a P/S ratio of 0.00x and an EV/Revenue of -0.38x, the company's valuation reflects the market's assessment of its growth potential and risk profile relative to the 3 other tracked peers. Investors should evaluate 22nd Century Group alongside its direct sector competitors to understand relative value and operational momentum.
Historical Price Performance
22nd Century Group (XXII) currently trades at $0.0420, which places the stock at approximately 0% of its 52-week trading range. Over the past twelve months, XXII has traded as high as $447.00 and as low as $0.0356, representing a 1255518.0% spread between the yearly high and low. The current price sits 100.0% below the 52-week high and 18.0% above the 52-week low. This range provides important context for understanding the stock's recent volatility and where current levels fall within the broader price history.
In the most recent trading session, XXII fell +13.04% from a previous close of $0.0483 to $0.0420, on volume of 42.3M shares. This negative session represents a significant single-day move that may have been driven by company-specific news, sector-wide sentiment, or broader market dynamics. The stock has 713,994 shares outstanding, giving it a fully diluted market capitalization that investors should factor into their analysis alongside the current $30.0K market cap figure.
Cannabis stocks have historically exhibited significant price volatility driven by regulatory developments, earnings surprises, and shifts in market sentiment toward the sector. XXII is trading in the lower portion of its 52-week range, which could represent a value opportunity for contrarian investors, or may reflect deteriorating fundamentals that warrant caution. Historical price levels should be considered alongside fundamental data — including revenue trends, margin improvement, and balance sheet health — to form a complete investment thesis.
Investment Thesis
A balanced framework for evaluating 22nd Century Group (XXII) as a potential investment, considering both the upside catalysts and downside risks based on the company's current financial data and industry positioning.
Revenue stabilization and potential for operational improvements could reignite top-line growth. With TTM revenue of $14.5M, even modest gains in market share or pricing power could meaningfully impact the company's financial trajectory and investor sentiment toward XXII.
Potential for margin recovery as the cannabis market matures and pricing stabilizes. Regulatory reform — particularly the rescheduling of cannabis and elimination of Section 280E tax burdens — could dramatically improve the gross margin profile for 22nd Century Group and the broader industry.
Net cash position of $5.5M provides financial flexibility for strategic acquisitions, organic expansion, and weathering industry downturns. With approximately 9 months of cash runway, 22nd Century Group has a meaningful buffer to execute on its business plan without immediate dilutive capital raises.
Declining revenue of -27.44% year-over-year raises concerns about 22nd Century Group's competitive positioning and demand trends. Revenue contraction in a growing industry could signal market share losses, pricing pressure, or execution challenges that may persist in the near term.
Cannabis companies continue to face restricted access to traditional banking, institutional capital, and federal bankruptcy protections. These structural disadvantages increase the cost of capital and limit 22nd Century Group's financial flexibility compared to companies in federally legal industries, creating an uneven competitive landscape.
Regulatory uncertainty remains the single largest risk for 22nd Century Group and all cannabis investments. Federal prohibition in the United States creates ongoing challenges including Section 280E tax burdens, limited interstate commerce, and the risk of enforcement actions. State-level regulatory changes, licensing moratoriums, and social equity requirements add additional layers of unpredictability that can materially impact the company's operations and growth plans.
Risk Factors
Key risks that investors should consider before investing in 22nd Century Group (XXII). This is not an exhaustive list, and investors should conduct their own due diligence.
Regulatory & Legal Risk
Cannabis remains a Schedule I controlled substance under federal law, creating fundamental legal uncertainty for 22nd Century Group and all plant-touching cannabis operators. Changes in federal enforcement policy, state regulatory frameworks, or local ordinances could materially impact the company's operations, licensing, and financial performance. The evolving patchwork of state regulations creates compliance complexity and limits the ability to operate across state lines.
Balance Sheet & Liquidity Risk
With $6.1M in cash against $560.0K in total debt and an estimated 9 months of cash runway, 22nd Century Group faces potential liquidity constraints. The company may need to secure additional financing through equity raises (which dilute shareholders), debt issuance (which increases financial risk), or asset sales (which may reduce operational capacity). Cannabis companies' limited access to traditional banking further constrains available financing options.
Section 280E Tax Burden
Under IRS Section 280E, cannabis businesses are prohibited from deducting ordinary business expenses for federal income tax purposes. This effectively results in tax rates that can exceed 70% of gross profit for plant-touching operators, significantly reducing cash flow available for reinvestment and debt service. While potential rescheduling could eliminate this burden, the timeline and outcome remain uncertain, and 22nd Century Group's profitability metrics should be evaluated with this tax overhang in mind.
Market & Competition Risk
The cannabis industry faces pricing pressure from oversupply in mature markets, competition from the illicit market (which avoids regulatory costs and taxation), and evolving consumer preferences. 22nd Century Group competes for market share against both established operators and well-funded new entrants. Price compression in key markets has squeezed margins across the industry, and any worsening of these trends could materially impact the company's revenue and profitability outlook.
Frequently Asked Questions
Common questions about 22nd Century Group (XXII) stock, answered with real-time data from Cannabismarketcap.
What is 22nd Century Group's (XXII) stock price today?
22nd Century Group (XXII) stock is currently trading at $0.0420 per share on the NASDAQ exchange. This represents a daily decline of -13.04% ($0.0063) from the previous closing price of $0.0483. Over the past 52 weeks, XXII has traded between a low of $0.0356 and a high of $447.00, placing the current price at approximately -100% from its annual high. The stock has a market capitalization of $30.0K, making it a notable cannabis companies tracked by Cannabismarketcap. 22nd Century Group operates in the Biotech sector, classified under "CIGARETTES", serving the broader cannabis industry.
What is 22nd Century Group's market capitalization?
22nd Century Group (XXII) has a current market capitalization of $30.0K, calculated by multiplying its 714.0K shares outstanding by the current stock price of $0.0420. Market capitalization is a key measure of a company's total equity value as perceived by the public market, and it places 22nd Century Group among the small-cap cannabis companies tracked on Cannabismarketcap. For context, the enterprise value (market cap plus debt minus cash) stands at -$5.5M, which accounts for the company's balance sheet structure. Investors often use market cap alongside revenue and profitability metrics to assess relative valuation within the cannabis sector.
What is 22nd Century Group's annual revenue?
22nd Century Group (XXII) reports trailing twelve month (TTM) revenue of $14.5M, reflecting the total sales generated by the company over the most recent four quarters. Revenue has changed -27.44% year-over-year, reflecting a contraction in top-line performance relative to the prior period. The current price-to-sales ratio is 0.00x, which means investors are paying $0.00 for every $1 of annual revenue — a relatively low valuation in the context of the cannabis sector. Revenue is one of the most closely watched metrics for cannabis companies, as many are still scaling operations in a rapidly evolving regulatory environment. View the full income statement and quarterly revenue breakdown on Cannabismarketcap for detailed trend analysis.
What are 22nd Century Group's key financial metrics?
22nd Century Group (XXII) reports several important financial metrics that investors track closely. The company has a market capitalization of $30.0K, trailing twelve month revenue of $14.5M. 22nd Century Group holds $6.1M in cash and equivalents against $560.0K in total debt. Total debt equals 18.67x market capitalization. The price-to-sales ratio stands at 0.00x. With 714.0K shares outstanding, investors should consider both the fundamental financial performance and share structure when evaluating XXII.
How many employees does 22nd Century Group have?
22nd Century Group currently employs approximately 56 people across its operations. As a cannabis biotech company headquartered in the United States, its workforce supports activities spanning cigarettes and related business functions. Based on trailing twelve month revenue of $14.5M, this equates to approximately $259.2K in revenue per employee, which is a useful efficiency metric for comparing operational productivity across cannabis companies. Employee count is an important indicator of a company's operational scale and its capacity for growth in an industry that remains highly labor-intensive due to regulatory requirements.
What exchange is XXII listed on?
22nd Century Group trades under the ticker symbol XXII on the NASDAQ exchange, and the stock is denominated in US dollars (USD). Shares can typically be purchased through most standard brokerage accounts. The company has been publicly listed since 2011-01-26, giving it a track record in the public markets that investors can analyze for long-term trends. The stock sees average daily trading volume of approximately 42.3M shares, which is an important consideration for liquidity and the ability to enter or exit positions without significant price impact.
What sector is 22nd Century Group in?
22nd Century Group is classified as a cannabis biotech company, meaning it focuses on pharmaceutical and biotechnology applications of cannabinoids, including drug development and clinical research. Its official SIC classification is "CIGARETTES," which provides additional detail about its core business activities. The Biotech sector is a key segment of the cannabis market, and investors often compare companies within the same sector to identify relative outperformers. You can compare XXII with other Biotech stocks on Cannabismarketcap's sector page to see how it ranks on metrics like market cap, revenue, and margins.
How does XXII compare to other cannabis stocks?
You can compare 22nd Century Group (XXII) side-by-side with any cannabis stock on Cannabismarketcap using the dedicated comparison tool. Key comparison metrics include market cap ($30.0K), trailing twelve month revenue ($14.5M), price-to-sales ratio (0.00x). 22nd Century Group sits in the Biotech sector, so the most relevant peer comparisons would be against other Biotech companies, though cross-sector comparisons can also reveal interesting insights about relative valuation. Visit the rankings page to see where XXII stands across all cannabis companies on metrics like revenue growth (-27.44% YoY), cash position ($6.1M), and employee count (56).
What is XXII's 52-week trading range?
22nd Century Group (XXII) has traded between a 52-week low of $0.0356 and a 52-week high of $447.00, with the current price of $0.0420 sitting approximately -100% from the annual high. This range represents a spread of $446.96 (1255518% from low to high), which reflects the volatility the stock has experienced over the past year. The 52-week range is a commonly used technical indicator that helps investors understand whether a stock is trading near the top or bottom of its recent range, and it can inform decisions about entry and exit points. Cannabis stocks in general tend to exhibit higher volatility than broader market indices due to evolving regulations and market sentiment.
How does 22nd Century Group's valuation compare to cannabis industry peers?
22nd Century Group (XXII) is valued at a market capitalization of $30.0K with a price-to-sales ratio of 0.00x, and an enterprise value of -$5.5M. In the cannabis industry, valuations can vary significantly depending on sector (MSO, LP, Ancillary, etc.), growth rate, and path to profitability. 22nd Century Group's current revenue trajectory of -27.44% YoY may result in a lower valuation relative to faster-growing peers. Investors can use the Cannabismarketcap rankings and comparison tools to benchmark XXII against specific competitors on valuation multiples, growth rates, and profitability.
What is 22nd Century Group's enterprise value?
22nd Century Group (XXII) has an estimated enterprise value (EV) of -$5.5M, which is calculated by taking the market capitalization of $30.0K, adding total debt of $560.0K, and subtracting cash and equivalents of $6.1M. Enterprise value is widely considered a more comprehensive measure of a company's total value than market cap alone because it accounts for the capital structure, including debt obligations and available liquidity. For cannabis companies in particular, where balance sheet health varies dramatically, enterprise value provides a more accurate picture of acquisition cost and relative valuation.
Is 22nd Century Group stock overvalued or undervalued?
Determining whether 22nd Century Group (XXII) is overvalued or undervalued requires analyzing multiple valuation metrics in context. The current price-to-sales ratio of 0.00x is relatively low for a cannabis company, which could suggest the stock is undervalued or that the market has concerns about future growth. The stock is currently trading at $0.0420, which is -100% from its 52-week high of $447.00, with revenue growth of -27.44% YoY. Investors should consider the company's enterprise value of -$5.5M, its cash position of $6.1M, and the broader cannabis industry outlook when forming a valuation opinion. Cannabismarketcap provides all the data needed for a thorough analysis, but this information should not be considered investment advice.
What are the risks of investing in 22nd Century Group?
Investing in 22nd Century Group (XXII) carries several risks that investors should carefully consider. First, the cannabis industry remains federally illegal in the United States, creating regulatory uncertainty that can impact stock prices, banking access, and tax obligations (notably IRC Section 280E). Second, 22nd Century Group's balance sheet shows $560.0K in total debt against $6.1M in cash, with an estimated cash runway of approximately 9 months at the current burn rate, which investors should monitor for dilution risk or liquidity concerns. Additionally, the stock has shown a 52-week range of $0.0356 to $447.00, reflecting meaningful price volatility. As with all cannabis stocks, investors face risks from changing state regulations, competitive pressures, and the evolving legal landscape. This information is for educational purposes only and is not investment advice.
What is 22nd Century Group's cash position and debt level?
22nd Century Group (XXII) holds $6.1M in cash and equivalents on its balance sheet, set against $560.0K in total debt. This gives the company a net cash position of $5.5M. At the current rate of cash usage, the company has an estimated cash runway of approximately 9 months before needing additional financing, which could come from operations, debt, or equity issuance. Balance sheet strength is especially important in the cannabis industry, where companies often face limited access to traditional banking and capital markets. Investors should track these metrics over time on Cannabismarketcap to identify trends in cash consumption and debt management.
How many shares outstanding does 22nd Century Group have?
22nd Century Group (XXII) currently has 714.0K shares outstanding, which when multiplied by the current stock price of $0.0420 gives the company its market capitalization of $30.0K. Share count is important because all per-share metrics (earnings per share, book value per share, etc.) are directly impacted by changes in shares outstanding. Cannabis companies frequently issue new shares to raise capital, so monitoring dilution trends on Cannabismarketcap is recommended for long-term investors.
Does 22nd Century Group pay a dividend?
Most cannabis companies, including 22nd Century Group (XXII), do not currently pay dividends. The cannabis industry is still in a growth phase, and companies typically reinvest available capital into expanding operations, securing new licenses, building out retail and cultivation infrastructure, and navigating complex regulatory requirements. Additionally, the IRC Section 280E tax burden significantly reduces the free cash flow available for shareholder distributions. Investors in cannabis stocks should generally expect returns to come from capital appreciation rather than dividend income. If 22nd Century Group initiates a dividend in the future, it would be reported in their SEC filings and reflected on Cannabismarketcap.
How can I research 22nd Century Group stock before investing?
To research 22nd Century Group (XXII) before investing, start with the company overview on Cannabismarketcap, which provides current price ($0.0420), market cap ($30.0K), and key financial metrics. Next, review the full financial statements page for quarterly revenue trends, margins, and balance sheet details. Check the analyst ratings page for Wall Street consensus and price targets, and the technical analysis page for chart patterns and momentum indicators. Compare XXII against sector peers using the comparison tool to understand relative valuation. Review recent news coverage for regulatory developments or corporate events. Finally, read the investment analysis page for a comprehensive deep-dive. Cannabis investing carries unique risks including federal illegality, regulatory uncertainty, and limited banking access — always conduct thorough due diligence before making any investment decision.
What does 22nd Century Group's market cap of $30.0K mean?
22nd Century Group's market capitalization of $30.0K represents the total market value of all its outstanding shares (714.0K shares multiplied by the current stock price of $0.0420). Market cap is the primary measure investors use to classify companies by size: small-cap companies (under $100M) like 22nd Century Group may offer higher growth potential but come with greater risk and lower liquidity. In the cannabis sector, market cap is especially important because it determines index weighting, institutional investment eligibility, and often correlates with the company's operational scale and geographic reach. 22nd Century Group currently ranks # among cannabis stocks tracked on Cannabismarketcap.
What regulatory risks does 22nd Century Group face?
22nd Century Group (XXII), like all cannabis companies, faces significant regulatory risks that investors should understand. At the federal level, cannabis remains a Schedule I controlled substance in the United States, which restricts banking access, prevents standard business expense deductions under IRC Section 280E, and creates legal uncertainty. 22nd Century Group is subject to the evolving regulatory landscape across the jurisdictions where it operates. Potential catalysts include federal rescheduling (which could ease 280E burdens), the SAFE Banking Act (which would improve banking access), and individual state legalization events. Conversely, regulatory setbacks such as license moratoriums, increased enforcement, or unfavorable tax policy changes pose downside risks. Investors should monitor legislative developments closely using Cannabismarketcap's news and legalization tracker.
More XXII Research & Data
XXII price, chart & key stats
Revenue, earnings & balance sheet
Quarterly earnings & EPS trends
Historical price & volume chart
Step-by-step buying guide
Side-by-side peer comparison
Detailed investment thesis & outlook
Disclaimer: The information presented on this page is for informational and educational purposes only and does not constitute investment advice, financial advice, trading advice, or any other kind of advice. Cannabismarketcap does not recommend that any security be bought, sold, or held by you. All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs. Cannabis stocks carry additional risks including federal illegality, regulatory uncertainty, limited banking access, and high volatility. Always conduct your own research and consider consulting a qualified financial advisor before making investment decisions.