AURORA CANNABIS INC (ACB.CA) Stock Fundamental Analysis
TSX:ACB - Toronto Stock Exchange - CA05156X8504 - Common Stock - Currency: CAD
Taking everything into account, ACB scores 3 out of 10 in our fundamental rating. ACB was compared to 34 industry peers in the Pharmaceuticals industry. The financial health of ACB is average, but there are quite some concerns on its profitability. ACB is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ACB had negative earnings in the past year.
ACB had a negative operating cash flow in the past year.
In the past 5 years ACB always reported negative net income.
ACB had a negative operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ACB (1.44%) is better than 81.82% of its industry peers.
ACB has a Return On Equity of 2.18%. This is in the better half of the industry: ACB outperforms 78.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.44% | ||
| ROE | 2.18% | ||
| ROIC | N/A |
ROA(3y)-64.28%
ROA(5y)-63.23%
ROE(3y)-101.76%
ROE(5y)-92.93%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
ACB's Profit Margin of 3.90% is amongst the best of the industry. ACB outperforms 87.88% of its industry peers.
ACB has a Gross Margin of 3.82%. This is in the lower half of the industry: ACB underperforms 75.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 3.9% | ||
| GM | 3.82% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
ACB does not have a ROIC to compare to the WACC, probably because it is not profitable.
ACB has more shares outstanding than it did 1 year ago.
ACB has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ACB has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -8.70, we must say that ACB is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ACB (-8.70) is worse than 81.82% of its industry peers.
ACB has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
ACB has a better Debt to Equity ratio (0.07) than 69.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -8.7 |
ROIC/WACCN/A
WACC8.46%
2.3 Liquidity
ACB has a Current Ratio of 3.30. This indicates that ACB is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.30, ACB belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
ACB has a Quick Ratio of 1.60. This is a normal value and indicates that ACB is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.60, ACB is in the better half of the industry, outperforming 60.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.3 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
ACB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 113.91%, which is quite impressive.
Looking at the last year, ACB shows a quite strong growth in Revenue. The Revenue has grown by 19.92% in the last year.
Measured over the past years, ACB shows a very strong growth in Revenue. The Revenue has been growing by 37.40% on average per year.
EPS 1Y (TTM)113.91%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%117.15%
Revenue 1Y (TTM)19.92%
Revenue growth 3Y-1.04%
Revenue growth 5Y37.4%
Sales Q2Q%39.82%
3.2 Future
The Earnings Per Share is expected to grow by 30.94% on average over the next years. This is a very strong growth
Based on estimates for the next years, ACB will show a quite strong growth in Revenue. The Revenue will grow by 13.01% on average per year.
EPS Next Y-40.18%
EPS Next 2Y56.94%
EPS Next 3Y40.85%
EPS Next 5Y30.94%
Revenue Next Year25.87%
Revenue Next 2Y19.85%
Revenue Next 3Y16.2%
Revenue Next 5Y13.01%
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
ACB reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 22.02, ACB is valued on the expensive side.
ACB's Price/Forward Earnings ratio is rather cheap when compared to the industry. ACB is cheaper than 81.82% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ACB to the average of the S&P500 Index (22.68), we can say ACB is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 22.02 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A more expensive valuation may be justified as ACB's earnings are expected to grow with 40.85% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y56.94%
EPS Next 3Y40.85%
5. Dividend
5.1 Amount
ACB does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:ACB (2/21/2025, 7:00:00 PM)
8.34
+0.04 (+0.48%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners13.84%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap457.53M
Analysts72
Price Target10.2 (22.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)234.12%
Min EPS beat(2)-110.8%
Max EPS beat(2)579.03%
EPS beat(4)2
Avg EPS beat(4)155.88%
Min EPS beat(4)-110.8%
Max EPS beat(4)579.03%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)15.43%
Min Revenue beat(2)14.66%
Max Revenue beat(2)16.21%
Revenue beat(4)3
Avg Revenue beat(4)8.14%
Min Revenue beat(4)-5.3%
Max Revenue beat(4)16.21%
Revenue beat(8)6
Avg Revenue beat(8)6.09%
Revenue beat(12)6
Avg Revenue beat(12)2.45%
Revenue beat(16)8
Avg Revenue beat(16)2.03%
PT rev (1m)8.7%
PT rev (3m)5.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)151.47%
EPS NY rev (1m)-28.49%
EPS NY rev (3m)-109.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.35%
Revenue NY rev (1m)7.08%
Revenue NY rev (3m)12.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 22.02 | ||
| P/S | 1.43 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.8 | ||
| P/tB | 0.94 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.27
EYN/A
EPS(NY)0.38
Fwd EY4.54%
FCF(TTM)-0.53
FCFYN/A
OCF(TTM)-0.16
OCFYN/A
SpS5.84
BVpS10.44
TBVpS8.86
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.44% | ||
| ROE | 2.18% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 3.9% | ||
| GM | 3.82% | ||
| FCFM | N/A |
ROA(3y)-64.28%
ROA(5y)-63.23%
ROE(3y)-101.76%
ROE(5y)-92.93%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 86.17% | ||
| Cap/Sales | 6.32% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.3 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z | -8.7 |
F-Score6
WACC8.46%
ROIC/WACCN/A
Cap/Depr(3y)46.6%
Cap/Depr(5y)183.64%
Cap/Sales(3y)14.16%
Cap/Sales(5y)67.7%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)113.91%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%117.15%
EPS Next Y-40.18%
EPS Next 2Y56.94%
EPS Next 3Y40.85%
EPS Next 5Y30.94%
Revenue 1Y (TTM)19.92%
Revenue growth 3Y-1.04%
Revenue growth 5Y37.4%
Sales Q2Q%39.82%
Revenue Next Year25.87%
Revenue Next 2Y19.85%
Revenue Next 3Y16.2%
Revenue Next 5Y13.01%
EBIT growth 1Y7.55%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year159.68%
EBIT Next 3Y45.08%
EBIT Next 5Y29.47%
FCF growth 1Y80.14%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y93.36%
OCF growth 3YN/A
OCF growth 5YN/A