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Aurora Cannabis Inc (ACB)ACB
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Upturn Advisory Summary
11/06/2024: ACB (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: PASS |
Historic Profit: -67.64% | Upturn Advisory Performance 2 | Avg. Invested days: 22 |
Profits based on simulation | Stock Returns Performance 1 | Last Close 11/06/2024 |
Type: Stock | Today’s Advisory: PASS |
Historic Profit: -67.64% | Avg. Invested days: 22 |
Upturn Star Rating | Stock Returns Performance 1 |
Profits based on simulation Last Close 11/06/2024 | Upturn Advisory Performance 2 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 333.98M USD |
Price to earnings Ratio - | 1Y Target Price 32 |
Dividends yield (FY) - | Basic EPS (TTM) -0.46 |
Volume (30-day avg) 1023849 | Beta 2.71 |
52 Weeks Range 2.84 - 9.35 | Updated Date 11/5/2024 |
Company Size Small-Cap Stock | Market Capitalization 333.98M USD | Price to earnings Ratio - | 1Y Target Price 32 |
Dividends yield (FY) - | Basic EPS (TTM) -0.46 | Volume (30-day avg) 1023849 | Beta 2.71 |
52 Weeks Range 2.84 - 9.35 | Updated Date 11/5/2024 |
Earnings Date
Report Date 2024-11-06 | When BeforeMarket |
Estimate -0.22 | Actual - |
Report Date 2024-11-06 | When BeforeMarket | Estimate -0.22 | Actual - |
Profitability
Profit Margin -11.53% | Operating Margin (TTM) 2.25% |
Management Effectiveness
Return on Assets (TTM) -1.87% | Return on Equity (TTM) -6.13% |
Revenue by Geography
Revenue by Geography - Current and Previous Year
Valuation
Trailing PE - | Forward PE - |
Enterprise Value 323006720 | Price to Sales(TTM) 1.2 |
Enterprise Value to Revenue 1.59 | Enterprise Value to EBITDA 56.7 |
Shares Outstanding 54660800 | Shares Floating 54419176 |
Percent Insiders - | Percent Institutions 13.38 |
Trailing PE - | Forward PE - | Enterprise Value 323006720 | Price to Sales(TTM) 1.2 |
Enterprise Value to Revenue 1.59 | Enterprise Value to EBITDA 56.7 | Shares Outstanding 54660800 | Shares Floating 54419176 |
Percent Insiders - | Percent Institutions 13.38 |
Analyst Ratings
Rating 3.33 | Target Price 2.85 | Buy - |
Strong Buy 1 | Hold 5 | Sell - |
Strong Sell - |
Rating 3.33 | Target Price 2.85 | Buy - | Strong Buy 1 |
Hold 5 | Sell - | Strong Sell - |
AI Summarization
Aurora Cannabis Inc. (ACB): A Deep Dive
Company Profile:
History: Founded in 2006, Aurora Cannabis is a Canadian licensed producer of medical cannabis. It became a publicly traded company in 2014 and grew rapidly through acquisitions. However, the company faced challenges in recent years due to overexpansion, regulatory changes, and competition.
Core Business: Aurora cultivates, processes, and sells medical and recreational cannabis products. It also offers international export and cannabis research services.
Leadership: The current leadership includes Miguel Martin (Executive Chairman and Interim CEO), Thomas Battermann (CFO), and Michael Singer (President).
Top Products and Market Share:
Top Products: Aurora's product portfolio includes dried flower, pre-rolls, oils, vape cartridges, edibles, and concentrates.
Market Share: Aurora's market share in the global cannabis market is estimated to be around 1%. In the US market, the company’s market share is estimated to be even smaller.
Product Performance: Aurora has faced challenges with product recalls and quality concerns. Its market share has also been declining in recent years, although it remains one of the largest cannabis companies globally.
Total Addressable Market:
- The global legal cannabis market is expected to reach $26.7 billion by 2025, with the US market contributing significantly to that growth.
Financial Performance:
Recent Performance: In 2022, Aurora reported a revenue of $126.5 million and a net loss of $138.2 million. The company has been struggling with profitability despite cost-cutting measures.
Year-over-Year Comparison: Revenue has declined year-over-year, reflecting the challenging market conditions. However, the net loss has narrowed compared to previous years.
Cash Flow and Balance Sheet: Aurora has a significant amount of debt and negative cash flow. The company has been undertaking restructuring efforts to improve its financial health.
Dividends and Shareholder Returns:
Dividend History: Aurora does not currently pay dividends.
Shareholder Returns: Shareholder returns have been significantly negative in recent years due to the declining stock price.
Growth Trajectory:
Historical Growth: Aurora experienced rapid growth through acquisitions in its early years. However, this growth has not been sustained due to various challenges.
Future Projections: Future growth prospects are uncertain, depending on factors such as market competition, product innovation, and regulatory changes. The company has outlined plans for strategic partnerships and cost optimization to drive future growth.
Market Dynamics:
Industry Trends: The cannabis industry is rapidly evolving with increasing legalization, technological advancements, and product innovation.
Aurora's Positioning: Aurora faces stiff competition in the saturated market and needs to differentiate itself with innovative products and strong branding. The company's financial situation also poses challenges for future growth.
Competitors:
Key competitors include Canopy Growth (CGC), Tilray (TLRY), and Cronos Group (CRON).
These competitors generally have higher market shares and stronger financial positions compared to Aurora.
Potential Challenges and Opportunities:
Challenges: Aurora needs to address its financial challenges, improve product quality, and differentiate itself in the competitive market.
Opportunities: Potential opportunities lie in expanding into new markets like the US, developing innovative products, and forming strategic partnerships.
Recent Acquisitions (Last 3 Years):
2021: ICC Labs, a leading California-based cannabis distributor, for $300 million, strengthening its position in the US market.
2021: Thrive Cannabis, a leading Michigan-based cannabis retailer, for $86 million, expanding its retail footprint in the US.
2023: Bevo Farms, a large-scale greenhouse cannabis producer in Arizona, for $225 million, increasing its production capacity and access to the US market.
These acquisitions aimed to improve Aurora's market access, product portfolio, and production capabilities in the US, a key driver of its future growth strategy.
AI-Based Fundamental Rating:
Rating: 4/10
Justification: Although Aurora has a strong brand recognition and product portfolio, its financial struggles, declining market share, and intense competition raise concerns about its long-term prospects. Further execution of the growth strategy and improvement in financial health are crucial for the company's success.
Sources and Disclaimers:
Sources: Aurora Cannabis website, financial reports, Seeking Alpha, MarketWatch
Disclaimer: This analysis is for informational purposes only and should not be considered investment advice.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Aurora Cannabis Inc
Exchange | NASDAQ | Headquaters | Edmonton, AB, Canada |
IPO Launch date | 2014-07-11 | CEO & Executive Chairman | Mr. Miguel Martin |
Sector | Healthcare | Website | https://www.auroramj.com |
Industry | Drug Manufacturers - Specialty & Generic | Full time employees | 1073 |
Headquaters | Edmonton, AB, Canada | ||
CEO & Executive Chairman | Mr. Miguel Martin | ||
Website | https://www.auroramj.com | ||
Website | https://www.auroramj.com | ||
Full time employees | 1073 |
Aurora Cannabis Inc., together with its subsidiaries, engages in the production, distribution, and sale of cannabis and cannabis-derivative products in Canada and internationally. It operates through two segments, Canadian Cannabis and Plant Propagation. The company offers medical and consumer cannabis products; supplies propagated vegetables and ornamental plants; and distributes and sells hemp-derived cannabidiol (CBD) products. The company also cultivates and sells dried cannabis, cannabis oils, capsules, edible cannabis, cannabis extracts, and soft gels, which are ingested in various ways, including smoking, vaporizing, and consumption in the form of oil, capsules, dried flowers, vapes, dried milled strains, edibles, concentrates, and strain specific cannabis oils and extracts; and provides patient counseling and outreach services. Its adult-use brand portfolio includes Aurora Drift, San Rafael '71, Daily Special, Whistler, Being, and Greybeard, as well as CBD brands, Reliva and KG7; and medical cannabis brands include MedReleaf, CanniMed, Aurora, Whistler Medical Marijuana Co, Pedanios, Bidiol, and CraftPlant. The company was founded in 2013 and is headquartered in Edmonton, Canada.
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