Cresco Labs, Inc. (CL) 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

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Why is Cresco Labs, Inc. ?

Poor Management Efficiency with a low ROCE of 6.77%

The company has been able to generate a Return on Capital Employed (avg) of 6.77% signifying low profitability per unit of total capital (equity and debt)

Negative results in Dec 24

NET PROFIT(HY) At CAD -22.62 MM has Grown at -200.86%
INTEREST COVERAGE RATIO(Q) Lowest at 254.42
OPERATING PROFIT(Q) Lowest at CAD 49.28

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 -54.26%, its profits have fallen by -104.1%

Below par performance in long term as well as near term

Along with generating -54.26% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

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 Cresco Labs, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Cresco Labs, Inc.

79.69%

-0.87

95.45%

S&P/TSX 60

29.6%

1.43

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.79%

EBIT Growth (5y)

20.76%

EBIT to Interest (avg)

0.30

Debt to EBITDA (avg)

2.88

Net Debt to Equity (avg)

0.72

Sales to Capital Employed (avg)

0.76

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.12%

ROCE (avg)

6.77%

ROE (avg)

0.45%

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

1.13

EV to EBIT

8.36

EV to EBITDA

5.22

EV to Capital Employed

1.06

EV to Sales

1.19

PEG Ratio

Dividend Yield

ROCE (Latest)

12.71%

ROE (Latest)

-1.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

11What is working for the Company

NET PROFIT(HY)

Higher at CAD 6.13 MM

RAW MATERIAL COST(Y)

Fallen by -4.42% (YoY

EPS(Q)

Highest at CAD -0.05

-12What is not working for the Company

PRE-TAX PROFIT(Q)

At CAD 0.78 MM has Fallen at -94.3%

OPERATING CASH FLOW(Y)

Lowest at CAD 50.42 MM

ROCE(HY)

Lowest at -32.84%

CASH AND EQV(HY)

Lowest at CAD 213.58 MM

DEBT-EQUITY RATIO (HY)

Highest at 155.7 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.46 times

NET SALES(Q)

Lowest at CAD 207.57 MM

OPERATING PROFIT(Q)

Lowest at CAD 39.69 MM

Here's what is working for Cresco Labs, Inc.

Net Profit

At CAD 6.13 MM has Grown at 123.07%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Net Profit

Higher at CAD 6.13 MM

than preceding 12 month period ended Mar 2026

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CAD MM)

EPS

Highest at CAD -0.05

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Raw Material Cost

Fallen by -4.42% (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

Here's what is not working for Cresco Labs, Inc.

Pre-Tax Profit

At CAD 0.78 MM has Fallen at -94.3%

over average net sales of the previous four periods of CAD 13.6 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Operating Cash Flow

Lowest at CAD 50.42 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Net Sales

Lowest at CAD 207.57 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Operating Profit

Lowest at CAD 39.69 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CAD MM)

Cash and Eqv

Lowest at CAD 213.58 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 155.7 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 3.46 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio