TSX:ACB

Stock Analysis Report

Executive Summary

Aurora Cannabis Inc. produces and distributes medical cannabis products.


Snowflake Analysis

High growth potential and fair value.


Similar Companies

Share Price & News

How has Aurora Cannabis's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ACB's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.4%

ACB

-2.4%

CA Pharmaceuticals

2.1%

CA Market


1 Year Return

-90.8%

ACB

-74.4%

CA Pharmaceuticals

-21.2%

CA Market

Return vs Industry: ACB underperformed the Canadian Pharmaceuticals industry which returned -74.4% over the past year.

Return vs Market: ACB underperformed the Canadian Market which returned -21.2% over the past year.


Shareholder returns

ACBIndustryMarket
7 Day-3.4%-2.4%2.1%
30 Day-13.2%-12.9%-13.8%
90 Day-53.7%-33.7%-21.9%
1 Year-90.8%-90.8%-74.4%-74.4%-18.6%-21.2%
3 Year-61.8%-63.2%-26.9%-27.4%-11.0%-19.3%
5 Yearn/a188.5%188.5%1.6%-13.6%

Price Volatility Vs. Market

How volatile is Aurora Cannabis's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Aurora Cannabis undervalued compared to its fair value and its price relative to the market?

39.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ACB (CA$1.12) is trading below our estimate of fair value (CA$1.84)

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


Price To Earnings Ratio

PE vs Industry: ACB is unprofitable, so we can't compare its PE Ratio to the Pharmaceuticals industry average.

PE vs Market: ACB is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ACB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ACB is good value based on its PB Ratio (0.3x) compared to the CA Pharmaceuticals industry average (0.8x).


Next Steps

Future Growth

How is Aurora Cannabis forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

89.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACB is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.4%).

Earnings vs Market: ACB is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ACB's is expected to become profitable in the next 3 years.

Revenue vs Market: ACB's revenue (33.4% per year) is forecast to grow faster than the Canadian market (3.4% per year).

High Growth Revenue: ACB's revenue (33.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ACB is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Aurora Cannabis performed over the past 5 years?

-89.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACB is currently unprofitable.

Growing Profit Margin: ACB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ACB is unprofitable, and losses have increased over the past 5 years at a rate of -89.5% per year.

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

Earnings vs Industry: ACB is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (-9.9%).


Return on Equity

High ROE: ACB has a negative Return on Equity (-38.13%), as it is currently unprofitable.


Next Steps

Financial Health

How is Aurora Cannabis's financial position?


Financial Position Analysis

Short Term Liabilities: ACB's short term assets (CA$629.9M) exceed its short term liabilities (CA$213.9M).

Long Term Liabilities: ACB's short term assets (CA$629.9M) do not cover its long term liabilities (CA$634.2M).


Debt to Equity History and Analysis

Debt Level: ACB's debt to equity ratio (13.1%) is considered satisfactory.

Reducing Debt: ACB's debt to equity ratio has reduced from 183% to 13.1% over the past 5 years.


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: ACB has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: ACB has less than a year of cash runway if free cash flow continues to reduce at historical rates of -72.1% each year


Next Steps

Dividend

What is Aurora Cannabis's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ACB's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Michael Singer (54yo)

no data

Tenure

CA$2,196,509

Compensation

Mr. Michael Singer, CGA, serves as an Interim Chief Executive Officer of Aurora Cannabis Inc. Mr. Singer was an Executive Officer at Clementia Pharmaceuticals Inc from August 3, 2018 until August 03, 2018. ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD1.57M) is about average for companies of similar size in the Canadian market ($USD1.70M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Singer
Executive Chairman & Interim CEOno dataCA$2.20m0.0050% CA$68.7k
Stephen Dobler
Founder5.33yrsCA$1.33m0.39% CA$5.3m
Terry Booth
Founder & Director5.33yrsCA$2.41m0.29% CA$3.9m
Glen Ibbott
Chief Financial Officer2.92yrsCA$1.32m0.0027% CA$36.7k
Darren Karasiuk
Chief Commercial Officer1.58yrsCA$1.86mno data
Allan Cleiren
Chief Operating Officer2.92yrsCA$1.10m0.011% CA$151.9k
Darryl Vleeming
Chief Information Officer2.42yrsno data0.00091% CA$12.4k
Jonathan Page
Chief Science Officer1.42yrsno data0.015% CA$203.7k
Ananth Krishnan
Vice President of Capital Markets & Investor Relationsno datano datano data
Jillian Swainson
Chief Legal Officer & Corporate Secretary2.25yrsno data0.0022% CA$29.3k

2.7yrs

Average Tenure

54yo

Average Age

Experienced Management: ACB's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Singer
Executive Chairman & Interim CEOno dataCA$2.20m0.0050% CA$68.7k
Stephen Dobler
Founder5.33yrsCA$1.33m0.39% CA$5.3m
Terry Booth
Founder & Director5.33yrsCA$2.41m0.29% CA$3.9m
Margaret Atkins
Independent Director1.17yrsCA$199.21kno data
Lance Friedmann
Independent Director0.17yrno datano data
Ronald Funk
Lead Independent Director1.17yrsCA$230.01k0.0077% CA$104.8k
Adam Szweras
Independent Director4.67yrsCA$246.76k0.0032% CA$43.1k
Michael Detlefsen
Independent Director0.17yrno datano data
Jason Ronald Dyck
Independent Director5.08yrsCA$294.01k0.092% CA$1.2m
Norma Beauchamp
Independent Director1.75yrsCA$243.68k0.0028% CA$38.6k

2.6yrs

Average Tenure

55yo

Average Age

Experienced Board: ACB's board of directors are not considered experienced ( 2.6 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: ACB insiders have only sold shares 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 52.8%.


Top Shareholders

Company Information

Aurora Cannabis Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Aurora Cannabis Inc.
  • Ticker: ACB
  • Exchange: TSX
  • Founded:
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CA$1.363b
  • Shares outstanding: 1.22b
  • Website: https://auroramj.com

Number of Employees


Location

  • Aurora Cannabis Inc.
  • 10355 Jasper Avenue
  • Suite 500
  • Edmonton
  • Alberta
  • T5J 1Y6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
21PDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2014
ACBNYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 2014
ACBTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 2014
0UJGLSE (London Stock Exchange)YesCommon SharesGBCADDec 2014

Biography

Aurora Cannabis Inc. produces and distributes medical cannabis products. It is vertically integrated and horizontally diversified across various segments of the cannabis value chain, including facility engineering and design, cannabis breeding, genetics research, production, derivatives, high value-add product development, home cultivation, wholesale, and retail distribution. The company produces various strains of dried cannabis, cannabis oil and capsules, and topicals kits for medical patients. It also sells vaporizers; consumable vaporizer accessories, including valves, screens, etc.; and herb mills for using CanniMed herbal cannabis products, as well as grinders and vaporizer lockable containers. In addition, the company engages in the development of medical cannabis products at various stages of development, including oral, topical, edible, and inhalable products; and operation of CanvasRX, a network of cannabis counseling and outreach centers. Further, it provides patient counselling services; design and construction services; and cannabis analytical product testing services. As of September 11, 2019, the company had operations in 25 countries across five continents. Aurora Cannabis Inc. is headquartered in Edmonton, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 10:09
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.