Aurora Cannabis, Inc. (ACB) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Rogers Sugar, Inc.

Green Thumb Industries, Inc.

Trulieve Cannabis Corp.

Canopy Growth Corp.

Curaleaf Holdings, Inc.

Cresco Labs, Inc.

Terrascend Corp.

Verano Holdings Corp.

Aurora Cannabis, Inc.

Planet 13 Holdings, Inc.

Glass House Brands, Inc.

Why is Aurora Cannabis, Inc. ?

Poor long term growth as Operating profit has grown by an annual rate 9.56% of over the last 5 years

Flat results in Jun 25

INTEREST(HY) At CAD 4.38 MM has Grown at 16.8%
PRE-TAX PROFIT(Q) Lowest at CAD -48.04 MM
NET PROFIT(Q) At CAD -43.38 MM has Fallen at -29.98%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -8.63%, its profits have fallen by -8.9%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -8.63% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Agricultural Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Aurora Cannabis, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Aurora Cannabis, Inc.

4.24%

1.18

78.38%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.05%

EBIT Growth (5y)

9.56%

EBIT to Interest (avg)

-10.44

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

0.47

Tax Ratio

22.66%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

20.85%

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.79

EV to EBIT

-1.86

EV to EBITDA

-2.15

EV to Capital Employed

0.73

EV to Sales

0.88

PEG Ratio

Dividend Yield

ROCE (Latest)

-39.13%

ROE (Latest)

-28.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 17.75 MM

NET PROFIT(HY)

Higher at CAD -91.17 MM

RAW MATERIAL COST(Y)

Fallen by -61.4% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 10.26%

NET SALES(Q)

Highest at CAD 98.02 MM

-7What is not working for the Company

INTEREST(HY)

At CAD 4.38 MM has Grown at 16.8%

PRE-TAX PROFIT(Q)

Lowest at CAD -48.04 MM

NET PROFIT(Q)

At CAD -43.38 MM has Fallen at -29.98%

Here's what is working for Aurora Cannabis, Inc.

Operating Cash Flow

Highest at CAD 17.75 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Net Sales

Highest at CAD 98.02 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Debtors Turnover Ratio

Highest at 10.26%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -61.4% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at CAD 6.18 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Here's what is not working for Aurora Cannabis, Inc.

Interest

At CAD 4.38 MM has Grown at 16.8%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Pre-Tax Profit

Lowest at CAD -48.04 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Pre-Tax Profit

At CAD -48.04 MM has Fallen at -30.49%

over average net sales of the previous four periods of CAD -36.82 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD -43.38 MM has Fallen at -29.98%

over average net sales of the previous four periods of CAD -33.38 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)