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22nd Century Group, Inc. (XXII) Fundamental Analysis & AI Grade 2026

XXII Nasdaq Cigarettes FL CIK: 0001347858
Update Pending • Analysis: May 9, 2026 • SEC Data: 2026-03-31
Combined AI Grade
D
82% Confidence
N/A
D
82% Conf
Pending
Analysis scheduled

📊 XXII Key Takeaways

Revenue: $4.1M
Net Margin: -79.4%
Free Cash Flow: $-3.1M
Current Ratio: 2.67x
Debt/Equity: 0.03x
EPS: $-18.08
AI Grade: D with 82% confidence
22nd Century Group, Inc. (XXII) receives a D fundamental grade with 82% confidence from our AI analysis based on SEC 10-K filings. With revenue of $4.1M, net profit margin of -79.4%, and return on equity (ROE) of -15.4%, 22nd Century Group, Inc. demonstrates mixed fundamentals in the Market sector. Below is our complete XXII stock analysis for 2026.

Is 22nd Century Group, Inc. (XXII) a Good Investment?

Claude

22nd Century Group faces severe operational deterioration with revenue collapsing 27.9% YoY, net losses worsening 92.6%, and negative operating cash flow of $3.1M. Despite a structurally sound balance sheet with minimal debt and $9.5M in cash, the company's core business is fundamentally broken with a 7% gross margin and cannot generate positive returns on assets or equity. Without immediate operational turnaround, the cash cushion merely delays insolvency.

22nd Century Group, Inc. Key Strengths (XXII)

Claude
  • + Minimal leverage with 0.03x debt/equity ratio and only $708K long-term debt
  • + Solid liquidity position with 2.67x current ratio and $9.5M cash reserves
  • + Stockholders equity of $21.2M provides financial cushion against near-term collapse

XXII Stock Risks: 22nd Century Group, Inc. Investment Risks

Claude
  • ! Revenue declining sharply at -27.9% YoY with only $4.1M in absolute sales
  • ! Severe operational losses with -74% operating margin and negative $3.1M operating cash flow
  • ! Deteriorating profitability with net losses worsening 92.6% YoY despite positive equity base
  • ! Extremely low unit economics with 7% gross margin indicating commodity-like pricing pressure
  • ! Cigarette industry facing structural headwinds from regulation and declining consumption

Key Metrics to Watch

Claude
  • * Operating cash flow trajectory - current negative trend unsustainable
  • * Revenue stabilization and growth return - declining sales cannot support operations
  • * Gross margin expansion - 7% is insufficient to cover SG&A and achieve profitability
  • * Cash burn rate relative to remaining liquidity - determine runway before depletion

22nd Century Group, Inc. (XXII) Financial Metrics & Key Ratios

Revenue
$4.1M
Net Income
$-3.3M
EPS (Diluted)
$-18.08
Free Cash Flow
$-3.1M
Total Assets
$30.3M
Cash Position
$9.5M

💡 AI Analyst Insight

Strong liquidity with a 2.67x current ratio provides a solid financial cushion.

XXII Profit Margin, ROE & Profitability Analysis

Gross Margin 7.0%
Operating Margin -74.0%
Net Margin -79.4%
ROE -15.4%
ROA -10.8%
FCF Margin -76.6%

XXII vs Market Sector: How 22nd Century Group, Inc. Compares

How 22nd Century Group, Inc. compares to Market sector averages

Net Margin
XXII -79.4%
vs
Sector Avg 12.0%
XXII Sector
ROE
XXII -15.4%
vs
Sector Avg 15.0%
XXII Sector
Current Ratio
XXII 2.7x
vs
Sector Avg 1.8x
XXII Sector
Debt/Equity
XXII 0.0x
vs
Sector Avg 0.7x
XXII Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is 22nd Century Group, Inc. Stock Overvalued? XXII Valuation Analysis 2026

Based on fundamental analysis, 22nd Century Group, Inc. has mixed fundamental signals relative to the Market sector in 2026.

Return on Equity
-15.4%
Sector avg: 15%
Net Profit Margin
-79.4%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.03x
Sector avg: 0.7x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

22nd Century Group, Inc. Balance Sheet: XXII Debt, Cash & Liquidity

Current Ratio
2.67x
Quick Ratio
2.12x
Debt/Equity
0.03x
Debt/Assets
30.0%
Interest Coverage
-2.99x
Long-term Debt
$708.0K

XXII Revenue & Earnings Growth: 5-Year Financial Trend

XXII 5-year financial data: Year 2019: Revenue $7.3M, Net Income N/A, EPS N/A. Year 2020: Revenue $28.1M, Net Income N/A, EPS N/A. Year 2021: Revenue $30.9M, Net Income -$26.6M, EPS $-0.21. Year 2022: Revenue $62.1M, Net Income -$14.0M, EPS $-0.09. Year 2023: Revenue $40.5M, Net Income -$59.8M, EPS $-4.65.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: 22nd Century Group, Inc.'s revenue has grown significantly by 458% over the 5-year period, indicating strong business expansion. The most recent EPS of $-45,711.05 indicates the company is currently unprofitable.

XXII Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-76.6%
Free cash flow / Revenue

XXII Quarterly Earnings & Performance

Quarterly financial performance data for 22nd Century Group, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2024 $5.9M -$1.1M $-0.55
Q2 2024 $7.9M -$1.1M $-0.21
Q1 2024 $6.5M -$5.7M $-2.94
Q3 2023 $17.8M -$8.9M $-0.94
Q2 2023 $14.5M -$8.9M $-0.95
Q1 2023 $9.0M -$8.9M $-0.05
Q3 2022 $7.8M -$4.2M $-0.06
Q2 2022 $8.4M -$4.2M $-0.03

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

22nd Century Group, Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
-$3.1M
Cash generated from operations
Capital Expenditures
$40.0K
Investment in assets
Dividends
None
No dividend program

XXII SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for 22nd Century Group, Inc. (CIK: 0001347858)

📋 Recent SEC Filings

Date Form Document Action
Jun 9, 2026 8-K form8-k.htm View →
May 7, 2026 10-Q xxii-20260331x10q.htm View →
May 7, 2026 8-K form8-k.htm View →
May 1, 2026 8-K form8-k.htm View →
Apr 29, 2026 DEF 14A formdef14a.htm View →

Frequently Asked Questions about XXII

What is the AI rating for XXII?

22nd Century Group, Inc. (XXII) has an AI grade of D with 82% confidence, based on fundamental analysis of SEC EDGAR filings.

What are XXII's key strengths?

Claude: Minimal leverage with 0.03x debt/equity ratio and only $708K long-term debt. Solid liquidity position with 2.67x current ratio and $9.5M cash reserves.

What are the risks of investing in XXII?

Claude: Revenue declining sharply at -27.9% YoY with only $4.1M in absolute sales. Severe operational losses with -74% operating margin and negative $3.1M operating cash flow.

What is XXII's revenue and growth?

22nd Century Group, Inc. reported revenue of $4.1M.

Does XXII pay dividends?

22nd Century Group, Inc. does not currently pay dividends.

Where can I find XXII SEC filings?

Official SEC filings for 22nd Century Group, Inc. (CIK: 0001347858) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is XXII's EPS?

22nd Century Group, Inc. has a diluted EPS of $-18.08.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.

What is XXII's fundamental grade?

Based on our AI fundamental analysis in June 2026, 22nd Century Group, Inc. has a D grade with 82% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is XXII stock overvalued or undervalued?

Valuation metrics for XXII: ROE of -15.4% (sector avg: 15%), net margin of -79.4% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.

What is XXII's AI grade for 2026?

Our dual AI analysis gives 22nd Century Group, Inc. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is XXII's free cash flow?

22nd Century Group, Inc.'s operating cash flow is $-3.1M, with capital expenditures of $40.0K. FCF margin is -76.6%.

How does XXII compare to other Market stocks?

Vs Default sector averages: Net margin -79.4% (avg: 12%), ROE -15.4% (avg: 15%), current ratio 2.67 (avg: 1.8).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 9, 2026 | Data as of: 2026-03-31 | Powered by Claude AI