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CAU

Cronos Australia ASX:CAU Stock Report

Last Price

AU$0.30

Market Cap

AU$179.6m

7D

0%

1Y

185.7%

Updated

18 Aug, 2022

Data

Company Financials
CAU fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance0/6
Financial Health6/6
Dividends0/6

CAU Stock Overview

Cronos Australia Limited operates as a medicinal cannabis company in Australia and Asia.

Cronos Australia Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Cronos Australia
Historical stock prices
Current Share PriceAU$0.30
52 Week HighAU$0.40
52 Week LowAU$0.10
Beta1.3
1 Month Change46.34%
3 Month Change8.11%
1 Year Change185.71%
3 Year Changen/a
5 Year Changen/a
Change since IPO-11.77%

Recent News & Updates

Shareholder Returns

CAUAU PharmaceuticalsAU Market
7D0%1.3%0.7%
1Y185.7%-9.1%-4.8%

Return vs Industry: CAU exceeded the Australian Pharmaceuticals industry which returned -9.1% over the past year.

Return vs Market: CAU exceeded the Australian Market which returned -4.8% over the past year.

Price Volatility

Is CAU's price volatile compared to industry and market?
CAU volatility
CAU Average Weekly Movement14.5%
Pharmaceuticals Industry Average Movement11.9%
Market Average Movement10.6%
10% most volatile stocks in AU Market17.8%
10% least volatile stocks in AU Market4.6%

Stable Share Price: CAU is more volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: CAU's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of Australian stocks.

About the Company

FoundedEmployeesCEOWebsite
2018n/aRodney Cockshttps://www.cronosaustralia.com

Cronos Australia Limited operates as a medicinal cannabis company in Australia and Asia. It operates through three segments: Medical, Clinics, and Consumer. The company distributes PEACE NATURALS brand medicinal cannabis products; develops and sells medicinal cannabis products under the Adaya brand; and operates medicinal cannabis clinics.

Cronos Australia Fundamentals Summary

How do Cronos Australia's earnings and revenue compare to its market cap?
CAU fundamental statistics
Market CapAU$179.56m
Earnings (TTM)-AU$943.03k
Revenue (TTM)AU$21.72m

7.6x

P/S Ratio

-176.5x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CAU income statement (TTM)
RevenueAU$21.72m
Cost of RevenueAU$13.27m
Gross ProfitAU$8.46m
Other ExpensesAU$9.40m
Earnings-AU$943.03k

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.0017
Gross Margin38.93%
Net Profit Margin-4.34%
Debt/Equity Ratio0%

How did CAU perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is CAU undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CAU?

Other financial metrics that can be useful for relative valuation.

CAU key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue7.7x
Enterprise Value/EBITDA284x
PEG Ration/a

Price to Sales Ratio vs Peers

How does CAU's PS Ratio compare to its peers?

CAU PS Ratio vs Peers
The above table shows the PS ratio for CAU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average11.1x
CU6 Clarity Pharmaceuticals
35.1x5.0%AU$162.8m
PBP Probiotec
1.1x6.4%AU$183.0m
MVP Medical Developments International
6.3x38.2%AU$139.8m
VLS Vita Life Sciences
2xn/aAU$115.0m
CAU Cronos Australia
7.6xn/aAU$179.6m

Price-To-Sales vs Peers: CAU is good value based on its Price-To-Sales Ratio (7.6x) compared to the peer average (11.1x).


Price to Earnings Ratio vs Industry

How does CAU's PE Ratio compare vs other companies in the AU Pharmaceuticals Industry?

Price-To-Sales vs Industry: CAU is good value based on its Price-To-Sales Ratio (7.6x) compared to the Australian Pharmaceuticals industry average (9.7x)


Price to Sales Ratio vs Fair Ratio

What is CAU's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CAU PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio7.6x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate CAU's Price-To-Sales Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of CAU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CAU (A$0.3) is trading below our estimate of fair value (A$1.56)

Significantly Below Fair Value: CAU is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Cronos Australia forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


49.6%

Forecasted Pharmaceuticals & Biotech industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Cronos Australia has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Discover growth companies

  • Examine whether Cronos Australia is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • Cronos Australia competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Cronos Australia performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-18.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CAU is currently unprofitable.

Growing Profit Margin: CAU is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CAU is unprofitable, and losses have increased over the past 5 years at a rate of 18.1% per year.

Accelerating Growth: Unable to compare CAU's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CAU is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (10.4%).


Return on Equity

High ROE: CAU has a negative Return on Equity (-5.08%), as it is currently unprofitable.


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Financial Health

How is Cronos Australia's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: CAU's short term assets (A$22.0M) exceed its short term liabilities (A$12.8M).

Long Term Liabilities: CAU's short term assets (A$22.0M) exceed its long term liabilities (A$1.1M).


Debt to Equity History and Analysis

Debt Level: CAU is debt free.

Reducing Debt: CAU had no debt 5 years ago.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable CAU has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: CAU is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 2.9% per year.


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Dividend

What is Cronos Australia current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate CAU's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CAU's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CAU's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CAU's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as CAU has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

2.2yrs

Average management tenure


CEO

Rodney Cocks

3.92yrs

Tenure

AU$420,540

Compensation

Mr. Rodney Damon Cocks, CSM, is an Executive Director and Chief Executive Officer at Cronos Australia Limited since September 27, 2018. Mr. Cocks is a Director of NewSouthern Capital, a private equity firm...


CEO Compensation Analysis

Compensation vs Market: Rodney's total compensation ($USD290.91K) is about average for companies of similar size in the Australian market ($USD283.14K).

Compensation vs Earnings: Rodney's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: CAU's management team is considered experienced (2.2 years average tenure).


Board Members

Experienced Board: CAU's board of directors are not considered experienced ( 0.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 329.1%.


Top Shareholders

Company Information

Cronos Australia Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Cronos Australia Limited
  • Ticker: CAU
  • Exchange: ASX
  • Founded: 2018
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Implied Market Cap: AU$179.563m
  • Shares outstanding: 552.50m
  • Website: https://www.cronosaustralia.com

Location

  • Cronos Australia Limited
  • 299 Toorak Road
  • Suite 8
  • South Yarra
  • Victoria
  • 3141
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/18 00:00
End of Day Share Price2022/08/18 00:00
Earnings2021/12/31
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.