Canopy Growth Corp. (WEED) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Rogers Sugar, Inc.

Green Thumb Industries, Inc.

Curaleaf Holdings, Inc.

Terrascend Corp.

Aurora Cannabis, Inc.

Cresco Labs, Inc.

Trulieve Cannabis Corp.

Canopy Growth Corp.

Verano Holdings Corp.

Planet 13 Holdings, Inc.

Glass House Brands, Inc.

Why is Canopy Growth Corp. ?

Poor long term growth as Operating profit has grown by an annual rate 13.29% of over the last 5 years

Flat results in Mar 26

INTEREST(Q) At CAD 12.31 MM has Grown at 67.8%
RAW MATERIAL COST(Y) Grown by 27.93% (YoY)
INVENTORY TURNOVER RATIO(HY) Lowest at 2.27 times

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 -7.64%, its profits have risen by 52.3%

Underperformed the market in the last 1 year

Even though the market (S&P/TSX 60) has generated returns of 28.13% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -7.64% returns

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 Canopy Growth Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Canopy Growth Corp.

-7.64%

-0.93

100.31%

S&P/TSX 60

28.13%

2.33

12.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-12.24%

EBIT Growth (5y)

13.29%

EBIT to Interest (avg)

-2.90

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.38

Sales to Capital Employed (avg)

0.29

Tax Ratio

0.01%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

9.96%

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

0.80

EV to EBIT

-5.82

EV to EBITDA

-11.36

EV to Capital Employed

0.76

EV to Sales

1.53

PEG Ratio

Dividend Yield

ROCE (Latest)

-13.00%

ROE (Latest)

-14.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

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

14What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD -63.81 MM

NET PROFIT(HY)

Higher at CAD -50.31 MM

ROCE(HY)

Highest at -43.98%

DEBT-EQUITY RATIO (HY)

Lowest at -13.05 %

-14What is not working for the Company

INTEREST(Q)

At CAD 12.31 MM has Grown at 67.8%

RAW MATERIAL COST(Y)

Grown by 27.93% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.27 times

OPERATING PROFIT(Q)

Lowest at CAD -18.82 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -26.42 %

PRE-TAX PROFIT(Q)

Lowest at CAD -33.6 MM

NET PROFIT(Q)

Lowest at CAD -32.75 MM

Here's what is working for Canopy Growth Corp.

Operating Cash Flow

Highest at CAD -63.81 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)

Debt-Equity Ratio

Lowest at -13.05 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Canopy Growth Corp.

Pre-Tax Profit

At CAD -33.6 MM has Fallen at -58.78%

over average net sales of the previous four periods of CAD -21.16 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD -32.75 MM has Fallen at -52.59%

over average net sales of the previous four periods of CAD -21.46 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Interest

At CAD 12.31 MM has Grown at 67.8%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Operating Profit

Lowest at CAD -18.82 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CAD MM)

Operating Profit Margin

Lowest at -26.42 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CAD -33.6 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

Lowest at CAD -32.75 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Inventory Turnover Ratio

Lowest at 2.27 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 27.93% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales