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AURORA CANNABIS INC (ACB.CA) Stock Fundamental Analysis

TSX:ACB - Toronto Stock Exchange - CA05156X8504 - Common Stock - Currency: CAD

7.42  +0.26 (+3.63%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to ACB. ACB was compared to 33 industry peers in the Pharmaceuticals industry. The financial health of ACB is average, but there are quite some concerns on its profitability. ACB is not overvalued while it is showing excellent growth. This is an interesting combination.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year ACB was profitable.
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.
ACB.CA Yearly Net Income VS EBIT VS OCF VS FCFACB.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -1B -2B -3B

1.2 Ratios

ACB's Return On Assets of 1.44% is amongst the best of the industry. ACB outperforms 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 RankSector 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
ACB.CA Yearly ROA, ROE, ROICACB.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -50 -100 -150 -200 -250

1.3 Margins

ACB's Profit Margin of 3.90% is amongst the best of the industry. ACB outperforms 84.85% of its industry peers.
ACB's Gross Margin of 3.82% is on the low side compared to the rest of the industry. ACB is outperformed by 75.76% of its industry peers.
Industry RankSector 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
ACB.CA Yearly Profit, Operating, Gross MarginsACB.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -200 -400 -600 -800 -1K

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4

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.
The number of shares outstanding for ACB has been increased compared to 5 years ago.
The debt/assets ratio for ACB has been reduced compared to a year ago.
ACB.CA Yearly Shares OutstandingACB.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
ACB.CA Yearly Total Debt VS Total AssetsACB.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

2.2 Solvency

Based on the Altman-Z score of -8.80, we must say that ACB is in the distress zone and has some risk of bankruptcy.
ACB has a Altman-Z score of -8.80. This is amonst the worse of the industry: ACB underperforms 81.82% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that ACB is not too dependend on debt financing.
ACB has a Debt to Equity ratio of 0.07. This is in the better half of the industry: ACB outperforms 69.70% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.07
Debt/FCF N/A
Altman-Z -8.8
ROIC/WACCN/A
WACC8.46%
ACB.CA Yearly LT Debt VS Equity VS FCFACB.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B 4B

2.3 Liquidity

A Current Ratio of 3.30 indicates that ACB has no problem at all paying its short term obligations.
ACB has a Current ratio of 3.30. This is amongst the best in the industry. ACB outperforms 81.82% of its industry peers.
A Quick Ratio of 1.60 indicates that ACB should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.60, ACB perfoms like the industry average, outperforming 57.58% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 3.3
Quick Ratio 1.6
ACB.CA Yearly Current Assets VS Current LiabilitesACB.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

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7

3. Growth

3.1 Past

ACB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 113.32%, which is quite impressive.
The Revenue has grown by 19.92% in the past year. This is quite good.
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)113.32%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%216%
Revenue 1Y (TTM)19.92%
Revenue growth 3Y-1.04%
Revenue growth 5Y37.4%
Sales Q2Q%36.91%

3.2 Future

ACB is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.94% yearly.
The Revenue is expected to grow by 13.75% on average over the next years. This is quite good.
EPS Next Y84.56%
EPS Next 2Y55.4%
EPS Next 3Y39.53%
EPS Next 5Y30.94%
Revenue Next Year25.33%
Revenue Next 2Y18.21%
Revenue Next 3Y14.48%
Revenue Next 5Y13.75%

3.3 Evolution

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
ACB.CA Yearly Revenue VS EstimatesACB.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 200M 400M 600M
ACB.CA Yearly EPS VS EstimatesACB.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 0 -5 -10

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4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 32.26, which means the current valuation is very expensive for ACB.
72.73% of the companies in the same industry are more expensive than ACB, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.03, ACB is valued a bit more expensive.
With a Price/Forward Earnings ratio of 21.86, ACB is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ACB indicates a rather cheap valuation: ACB is cheaper than 84.85% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.94. ACB is around the same levels.
Industry RankSector Rank
PE 32.26
Fwd PE 21.86
ACB.CA Price Earnings VS Forward Price EarningsACB.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
ACB.CA Per share dataACB.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

4.3 Compensation for Growth

ACB's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ACB's earnings are expected to grow with 39.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.38
PEG (5Y)N/A
EPS Next 2Y55.4%
EPS Next 3Y39.53%

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0

5. Dividend

5.1 Amount

No dividends for ACB!.
Industry RankSector Rank
Dividend Yield N/A

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AURORA CANNABIS INC

TSX:ACB (5/20/2025, 7:00:00 PM)

7.42

+0.26 (+3.63%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)02-05 2025-02-05/bmo
Earnings (Next)06-18 2025-06-18/amc
Inst Owners13.84%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap407.06M
Analysts74
Price Target10.51 (41.64%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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)2191.63%
Min EPS beat(2)-110.8%
Max EPS beat(2)4494.06%
EPS beat(4)2
Avg EPS beat(4)1134.64%
Min EPS beat(4)-110.8%
Max EPS beat(4)4494.06%
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)14.22%
Min Revenue beat(2)13.79%
Max Revenue beat(2)14.66%
Revenue beat(4)3
Avg Revenue beat(4)7.53%
Min Revenue beat(4)-5.3%
Max Revenue beat(4)14.66%
Revenue beat(8)6
Avg Revenue beat(8)5.79%
Revenue beat(12)6
Avg Revenue beat(12)2.25%
Revenue beat(16)8
Avg Revenue beat(16)1.88%
PT rev (1m)0%
PT rev (3m)18.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)52.38%
EPS NY rev (1m)0%
EPS NY rev (3m)85.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)10.87%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)6.62%
Valuation
Industry RankSector Rank
PE 32.26
Fwd PE 21.86
P/S 1.27
P/FCF N/A
P/OCF N/A
P/B 0.71
P/tB 0.84
EV/EBITDA N/A
EPS(TTM)0.23
EY3.1%
EPS(NY)0.34
Fwd EY4.57%
FCF(TTM)-0.53
FCFYN/A
OCF(TTM)-0.16
OCFYN/A
SpS5.84
BVpS10.44
TBVpS8.86
PEG (NY)0.38
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 -8.8
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)113.32%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%216%
EPS Next Y84.56%
EPS Next 2Y55.4%
EPS Next 3Y39.53%
EPS Next 5Y30.94%
Revenue 1Y (TTM)19.92%
Revenue growth 3Y-1.04%
Revenue growth 5Y37.4%
Sales Q2Q%36.91%
Revenue Next Year25.33%
Revenue Next 2Y18.21%
Revenue Next 3Y14.48%
Revenue Next 5Y13.75%
EBIT growth 1Y7.55%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year210.19%
EBIT Next 3Y52.94%
EBIT Next 5Y31.71%
FCF growth 1Y80.14%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y93.36%
OCF growth 3YN/A
OCF growth 5YN/A