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Aurora Cannabis

TSX:ACB
Snowflake Description

Exceptional growth potential with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ACB
TSX
CA$9B
Market Cap
  1. Home
  2. CA
  3. Pharmaceuticals & Biotech
Company description

Aurora Cannabis Inc. produces and distributes medical cannabis products. The last earnings update was 11 days ago. More info.


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  • Aurora Cannabis has significant price volatility in the past 3 months.
ACB Share Price and Events
7 Day Returns
0%
TSX:ACB
-0.6%
CA Pharmaceuticals
2.2%
CA Market
1 Year Returns
-12%
TSX:ACB
-8.1%
CA Pharmaceuticals
0.5%
CA Market
ACB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Aurora Cannabis (ACB) 0% 12.6% 16.3% -12% 1424.6% -
CA Pharmaceuticals -0.6% 9.5% 19.7% -8.1% 887.4% -30.3%
CA Market 2.2% 4.5% 5.4% 0.5% 24% 6.1%
1 Year Return vs Industry and Market
  • ACB underperformed the Pharmaceuticals industry which returned -8.1% over the past year.
  • ACB underperformed the Market in Canada which returned 0.5% over the past year.
Price Volatility
ACB
Industry
5yr Volatility vs Market

Value

 Is Aurora Cannabis undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Aurora Cannabis to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our calculation method for this is changing soon.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Aurora Cannabis.

TSX:ACB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 18.1%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:ACB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 8.1%
Pharmaceuticals Unlevered Beta Simply Wall St/ S&P Global 3.16
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 3.157 (1 + (1- 26.5%) (3.74%))
3.243
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (2 * 8.05%)
18.05%

Discounted Cash Flow Calculation for TSX:ACB using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Aurora Cannabis is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:ACB DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (CAD, Millions) -370.08 76.53 337.67 586.86 458.55
Source Analyst x4 Analyst x2 Analyst x2 Analyst x2 Analyst x1
Present Value
Discounted (@ 18.05%)
-313.49 54.92 205.24 302.15 199.99
Present value of next 5 years cash flows CA$448.81
TSX:ACB DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= CA$458.55 × (1 + 1.95%) ÷ (18.05% – 1.95%)
CA$2,902.51
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= CA$2,902.51 ÷ (1 + 18.05%)5
CA$1,265.87
TSX:ACB Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= CA$448.81 + CA$1,265.87
CA$1,714.67
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$1,714.67 / 998.60
CA$1.72
TSX:ACB Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$1.72
Current discount Discount to share price of CA$9.30
= -1 x (CA$9.30 - CA$1.72) / CA$1.72
-441.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Aurora Cannabis is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Aurora Cannabis's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Aurora Cannabis's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:ACB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CAD CA$-0.10
TSX:ACB Share Price ** TSX (2019-02-21) in CAD CA$9.3
Canada Pharmaceuticals Industry PE Ratio Median Figure of 15 Publicly-Listed Pharmaceuticals Companies 21.51x
Canada Market PE Ratio Median Figure of 552 Publicly-Listed Companies 14.82x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Aurora Cannabis.

TSX:ACB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:ACB Share Price ÷ EPS (both in CAD)

= 9.3 ÷ -0.10

-93.58x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Aurora Cannabis is loss making, we can't compare its value to the CA Pharmaceuticals industry average.
  • Aurora Cannabis is loss making, we can't compare the value of its earnings to the Canada market.
Price based on expected Growth
Does Aurora Cannabis's expected growth come at a high price?
Raw Data
TSX:ACB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -93.58x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
113.4%per year
Canada Pharmaceuticals Industry PEG Ratio Median Figure of 10 Publicly-Listed Pharmaceuticals Companies 0.9x
Canada Market PEG Ratio Median Figure of 257 Publicly-Listed Companies 0.94x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Aurora Cannabis, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Aurora Cannabis's assets?
Raw Data
TSX:ACB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CAD CA$4.30
TSX:ACB Share Price * TSX (2019-02-21) in CAD CA$9.3
Canada Pharmaceuticals Industry PB Ratio Median Figure of 120 Publicly-Listed Pharmaceuticals Companies 3.25x
Canada Market PB Ratio Median Figure of 2,330 Publicly-Listed Companies 1.55x
TSX:ACB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:ACB Share Price ÷ Book Value per Share (both in CAD)

= 9.3 ÷ 4.30

2.16x

* Primary Listing of Aurora Cannabis.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Aurora Cannabis is good value based on assets compared to the CA Pharmaceuticals industry average.
X
Value checks
We assess Aurora Cannabis's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Pharmaceuticals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Pharmaceuticals industry average (and greater than 0)? (1 check)
  5. Aurora Cannabis has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Aurora Cannabis expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
113.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Aurora Cannabis expected to grow at an attractive rate?
  • Aurora Cannabis's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Aurora Cannabis's earnings growth is expected to exceed the Canada market average.
  • Aurora Cannabis's revenue growth is expected to exceed the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:ACB Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:ACB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 113.4%
TSX:ACB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 46.5%
Canada Pharmaceuticals Industry Earnings Growth Rate Market Cap Weighted Average 85.8%
Canada Pharmaceuticals Industry Revenue Growth Rate Market Cap Weighted Average 49.2%
Canada Market Earnings Growth Rate Market Cap Weighted Average 18%
Canada Market Revenue Growth Rate Market Cap Weighted Average 6.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:ACB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:ACB Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30 2,700 2
2022-06-30 2,220 936 2
2021-06-30 1,522 567 162 4
2020-06-30 907 204 -12 6
2019-06-30 316 -298 -221 5
TSX:ACB Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2018-12-31 119 -206 -72
2018-09-30 77 -146 174
2018-06-30 55 -82 72
2018-03-31 42 -34 -13
2017-12-31 31 -16 7
2017-09-30 23 -15 -4
2017-06-30 18 -13 -13
2017-03-31 13 -17 -16
2016-12-31 8 -11 -13
2016-09-30 5 -9 -10
2016-06-30 1 -7 -6
2016-03-31 0 -5 -0

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Aurora Cannabis's earnings are expected to grow significantly at over 20% yearly.
  • Aurora Cannabis's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:ACB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Aurora Cannabis Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:ACB Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30 0.73 0.73 0.73 1.00
2022-06-30 0.52 0.52 0.52 1.00
2021-06-30 0.29 0.29 0.29 1.00
2020-06-30 -0.01 0.06 -0.08 2.00
2019-06-30 -0.24 -0.20 -0.26 3.00
TSX:ACB Past Financials Data
Date (Data in CAD Millions) EPS *
2018-12-31 -0.10
2018-09-30 0.30
2018-06-30 0.16
2018-03-31 -0.03
2017-12-31 0.02
2017-09-30 -0.01
2017-06-30 -0.05
2017-03-31 -0.07
2016-12-31 -0.07
2016-09-30 -0.07
2016-06-30 -0.04
2016-03-31 -0.00

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Aurora Cannabis is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Aurora Cannabis's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Aurora Cannabis has a total score of 6/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Aurora Cannabis performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Aurora Cannabis's growth in the last year to its industry (Pharmaceuticals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Aurora Cannabis does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Aurora Cannabis's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Aurora Cannabis's 1-year growth to the CA Pharmaceuticals industry average as it is not currently profitable.
Earnings and Revenue History
Aurora Cannabis's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Aurora Cannabis Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:ACB Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 119.10 -71.64 252.51 6.64
2018-09-30 76.62 173.84 187.11 5.00
2018-06-30 55.20 71.94 109.86 1.68
2018-03-31 41.99 -12.75 68.43 0.88
2017-12-31 31.06 6.61 44.51 0.45
2017-09-30 23.25 -3.80 30.82 0.38
2017-06-30 18.07 -12.97 24.67 0.31
2017-03-31 13.35 -15.63 18.96 0.44
2016-12-31 8.40 -13.24 12.87 0.50
2016-09-30 4.51 -9.97 7.71 0.51
2016-06-30 1.44 -5.72 5.63 0.57
2016-03-31 0.22 -0.01 4.95 0.52
2015-12-31 -3.31 4.40 0.53
2015-09-30 -10.16 3.65 0.50
2015-06-30 -9.52 3.63 0.43
2014-06-30 -2.19 0.60 0.31

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Aurora Cannabis has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Aurora Cannabis has efficiently used its assets last year compared to the CA Pharmaceuticals industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Aurora Cannabis improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Aurora Cannabis's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Pharmaceuticals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Aurora Cannabis has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Aurora Cannabis's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Aurora Cannabis's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Aurora Cannabis is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Aurora Cannabis's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Aurora Cannabis's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Aurora Cannabis Company Filings, last reported 1 month ago.

TSX:ACB Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 4,300.05 347.56 164.80
2018-09-30 4,402.92 291.10 494.04
2018-06-30 1,563.13 203.21 148.38
2018-03-31 1,386.77 209.26 288.43
2017-12-31 555.59 0.32 427.75
2017-09-30 244.92 66.92 162.68
2017-06-30 218.93 63.89 174.56
2017-03-31 161.62 18.79 112.99
2016-12-31 74.82 20.62 55.85
2016-09-30 41.10 13.53 23.19
2016-06-30 5.96 10.49 0.24
2016-03-31 11.48 9.89 0.86
2015-12-31 5.78 9.39 0.54
2015-09-30 3.07 9.31 0.69
2015-06-30 3.83 8.37 0.32
2014-06-30 1.77 1.85 0.92
  • Aurora Cannabis's level of debt (8.1%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Aurora Cannabis's debt level has increased without past 5-year debt data.
  • Operating cash flow is negative therefore debt is not well covered.
  • Aurora Cannabis is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess Aurora Cannabis's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Aurora Cannabis has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Aurora Cannabis dividends.
If you bought CA$2,000 of Aurora Cannabis shares you are expected to receive CA$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Aurora Cannabis's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Aurora Cannabis's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:ACB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
North America Pharmaceuticals Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 2.7%
Canada Market Average Dividend Yield Market Cap Weighted Average of 331 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.1%
Canada Bottom 25% Dividend Yield 25th Percentile 2.1%
Canada Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:ACB Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2023-06-30
2022-06-30
2021-06-30
2020-06-30
2019-06-30

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Aurora Cannabis has not reported any payouts.
  • Unable to verify if Aurora Cannabis's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Aurora Cannabis's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Aurora Cannabis has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Aurora Cannabis's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Aurora Cannabis afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Aurora Cannabis has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Aurora Cannabis's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Terry Booth
COMPENSATION CA$1,595,172
AGE 53
TENURE AS CEO 4.2 years
CEO Bio

Mr. Terry Booth founded Aurora Cannabis Inc. in 2013 and has been its Chief Executive Officer since December 9, 2014. Mr. Booth oversees Aurora's corporate strategy including operations, sales, patient acquisition, genetics development, regulatory affairs, facility expansion as well as communicating with capital markets and investors. He has assembled a diverse and highly skilled team of experts from a broad range of disciplines to execute on the Radient Technologies well-differentiated business strategy and vision to build the world's foremost cannabis company. An entrepreneur and Alberta business leader, Mr. Booth, who at 22 was Alberta's youngest ever master electrician, has serves as President and served as Chief Executive Officer of six other highly successful businesses, one of which, Superior Safety Codes Inc. He served as Non-Independent Non-Executive Director of Radient Technologies Inc. since November 30, 2017 until February 4, 2019. Mr. Booth has been a Director of Aurora Cannabis Inc. since December 9, 2014. He has been a Director of Liquor Stores N.A. Ltd. since March 14, 2018. Mr. Booth has been Director at Quinsam Capital Corporation since August 30, 2017. He has received an award as one of Canada's top 50 fastest-growing companies.

CEO Compensation
  • Terry's compensation has been consistent with company performance over the past year.
  • Terry's remuneration is lower than average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the Aurora Cannabis management team in years:

1.8
Average Tenure
53
Average Age
  • The average tenure for the Aurora Cannabis management team is less than 2 years, this suggests a new team.
Management Team

Terry Booth

TITLE
Founder
COMPENSATION
CA$2M
AGE
53
TENURE
4.2 yrs

Steve Dobler

TITLE
Founder
COMPENSATION
CA$1M
AGE
53
TENURE
4.2 yrs

Glen Ibbott

TITLE
Chief Financial Officer
COMPENSATION
CA$1M
TENURE
1.8 yrs

Allan Cleiren

TITLE
Chief Operating Officer
COMPENSATION
CA$1M
TENURE
1.8 yrs

Cam Battley

TITLE
Chief Corporate Officer
COMPENSATION
CA$1M
TENURE
2.3 yrs

Jose del Moral

TITLE
COMPENSATION
CA$511K
AGE
39
TENURE
0.9 yrs

Darryl Vleeming

TITLE
Chief Information Officer
TENURE
1.3 yrs

Jonathan Page

TITLE
Chief Science Officer
TENURE
0.3 yrs

Marc Lakmaaker

TITLE
VP of Investor Relations & Corporate Development

Jillian Swainson

TITLE
Senior VP & General Counsel
TENURE
1.1 yrs
Board of Directors Tenure

Average tenure and age of the Aurora Cannabis board of directors in years:

2.9
Average Tenure
53
Average Age
  • The average tenure for the Aurora Cannabis board of directors is less than 3 years, this suggests a new board.
Board of Directors

Michael Singer

TITLE
Chairman
COMPENSATION
CA$1M
AGE
53
TENURE
2.3 yrs

Terry Booth

TITLE
Founder
COMPENSATION
CA$2M
AGE
53
TENURE
4.2 yrs

Steve Dobler

TITLE
Founder
COMPENSATION
CA$1M
AGE
53
TENURE
4.2 yrs

Jason Ronald Dyck

TITLE
Director
COMPENSATION
CA$2M
TENURE
3.9 yrs

Adam Szweras

TITLE
Director
COMPENSATION
CA$849K
AGE
46
TENURE
3.5 yrs

Diane Jang

TITLE
Director
COMPENSATION
CA$206K
TENURE
1.3 yrs

Norma Beauchamp

TITLE
Independent Director
TENURE
0.6 yrs

Ronald Funk

TITLE
Independent Director
AGE
62
TENURE
0.6 yrs
Who owns this company?
Recent Insider Trading
  • Aurora Cannabis insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
28. Dec 18 Sell Terry Booth Individual 13. Mar 18 13. Mar 18 -464,183 CA$11.54 CA$-5,358,064
06. Oct 18 Sell Michael Singer Individual 03. Oct 18 04. Oct 18 -115,428 CA$12.16 CA$-1,169,525
02. Oct 18 Sell Diane Jang Individual 28. Sep 18 28. Sep 18 -14,134 CA$12.32 CA$-173,735
17. Aug 18 Buy Allan Cleiren Individual 17. Aug 18 17. Aug 18 39,600 CA$6.36 CA$251,828
27. Jul 18 Sell Stephen Dobler Individual 24. Jul 18 24. Jul 18 -1,386,100 CA$7.70 CA$-10,672,970
15. May 18 Sell Jason Ronald Dyck Individual 29. Dec 17 29. Dec 17 -379,215 CA$9.99 CA$-3,788,358
04. May 18 Sell Adam Szweras Individual 12. Mar 18 12. Mar 18 -200,000 CA$11.42 CA$-2,283,840
10. Apr 18 Buy Jason Ronald Dyck Individual 09. Apr 18 09. Apr 18 25,500 CA$7.80 CA$198,900
07. Apr 18 Buy Glen Ibbott Individual 02. Apr 18 02. Apr 18 20,000 CA$8.78 CA$175,600
29. Mar 18 Buy Ronan Levy Individual 28. Mar 18 28. Mar 18 27,000 CA$9.19 CA$248,130
29. Mar 18 Buy Cameron Battley Individual 28. Mar 18 28. Mar 18 27,685 CA$9.04 CA$250,217
19. Mar 18 Sell Dale Lesack Individual 12. Mar 18 16. Mar 18 -105,000 CA$11.88 CA$-1,223,950
16. Mar 18 Sell Ronan Levy Individual 13. Mar 18 13. Mar 18 -50,000 CA$11.56 CA$-578,000
16. Mar 18 Sell Neil Belot Individual 12. Mar 18 13. Mar 18 -242,000 CA$11.51 CA$-2,776,166
16. Mar 18 Sell Stephen Dobler Individual 13. Mar 18 13. Mar 18 -900,000 CA$11.54 CA$-10,388,700
03. Mar 18 Buy Debra Wilson Individual 28. Feb 18 28. Feb 18 35 CA$10.64 CA$372
23. Feb 18 Sell Nilda Rivera Individual 21. Feb 18 21. Feb 18 -200,000 CA$10.94 CA$-2,188,000
X
Management checks
We assess Aurora Cannabis's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Aurora Cannabis has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Has Aurora Cannabis Inc (TSE:ACB) Got Enough Cash?

Small-caps and large-caps are wildly popular among investors, however, mid-cap stocks, such as Aurora Cannabis Inc (TSE:ACB), with a market capitalization of CA$9.0b, rarely draw their attention from the investing community. … Let’s take a look at ACB’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … How does ACB’s operating cash flow stack up against its debt?

Simply Wall St -

Why Aurora Cannabis Inc's (TSE:ACB) ROE Of 4.4% Does Not Tell The Whole Story

Over the last twelve months Aurora Cannabis has recorded a ROE of 4.4%. … View our latest analysis for Aurora Cannabis? … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

When Will Aurora Cannabis Inc (TSE:ACB) Become Profitable?

Aurora Cannabis Inc's (TSE:ACB):. … Aurora Cannabis Inc., together with its subsidiaries, produces and distributes medical marijuana products in Canada. … With the latest financial year loss of -CA$12.97m and a trailing-twelve month of -CA$12.75m, the CA$5.39b market-cap alleviates its loss by moving closer towards its target of breakeven.

Simply Wall St -

Aurora Cannabis Inc's (TSE:ACB) Shift From Loss To Profit

In this article, I will touch on the expectations for ACB’s growth and when analysts expect the company to become profitable. … Working backwards from analyst estimates, it turns out that they expect the company to grow 152.84% year-on-year, on average, which is rather optimistic! … TSX:ACB Past Future Earnings May 15th 18 Underlying developments driving ACB’s growth isn’t the focus of this broad overview, but, bear in mind that generally a pharma company has lumpy cash flows which are contingent on the drug and stage of product development the business is in.

Simply Wall St -

What’s Ahead For Aurora Cannabis Inc (TSE:ACB)?

TSX:ACB PE PEG Gauge May 8th 18 The pharmaceutical industry is trading at a PE ratio of 46.75x, higher than the rest of the Canadian stock market PE of 15.64x. … On the stock-level, Aurora Cannabis is trading at a higher PE ratio of 446x, making it more expensive than the average pharmaceutical stock. … If Aurora Cannabis has been on your watchlist for a while, now may not be the best time to enter into the stock since it is trading at a higher valuation compared to other pharmaceutical companies.

Simply Wall St -

Is Aurora Cannabis Inc (TSE:ACB) A Financially Strong Company?

This article will examine ACB’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … View our latest analysis for Aurora Cannabis How does ACB’s operating cash flow stack up against its debt? … Next Steps: Although ACB’s debt level is relatively low, its cash flow levels still could not copiously cover its borrowings.

Simply Wall St -

Will Aurora Cannabis Inc (TSE:ACB) Continue To Underperform Its Industry?

Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of Aurora Cannabis’s equity capital deployed. … Since Aurora Cannabis’s return does not cover its cost, with a difference of -16.78%, this means its current use of equity is not efficient and not sustainable. … Currently Aurora Cannabis has virtually no debt, which means its returns are predominantly driven by equity capital.

Simply Wall St -

Is Aurora Cannabis Inc's (TSE:ACB) CEO Salary Justified?

View our latest analysis for Aurora Cannabis What has been the trend in ACB's earnings? … Performance can be measured based on factors such as earnings and total shareholder return (TSR). … Normally I would use earnings and market cap to account for variations in performance, however, ACB's negative earnings lower the usefulness of my formula.

Simply Wall St -

Are Aurora Cannabis Inc's (TSE:ACB) Interest Costs Too High?

To assess this, I compare ACB's cash and other liquid assets against its upcoming debt. … Our analysis shows that ACB is able to meet its upcoming commitments with its cash and other short-term assets, which lessens our concerns for the company's business operations should any unfavourable circumstances arise. … Although ACB’s debt level is relatively low, its cash flow levels still could not copiously cover its borrowings.

Simply Wall St -

Has Aurora Cannabis Inc (TSX:ACB) Improved Earnings Growth In Recent Times?

In this article, I will take a look at Aurora Cannabis Inc's (TSX:ACB) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. … TSX:ACB Income Statement Dec 4th 17 We can further analyze Aurora Cannabis's loss by looking at what has been happening in the industry as well as within the company. … Aurora Cannabis's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story.

Simply Wall St -

Company Info

Map
Description

Aurora Cannabis Inc. produces and distributes medical cannabis products. It is vertically integrated and horizontally diversified across various segments of the cannabis value chain, from facility engineering and design to cannabis breeding, genetics research, production, derivatives, high value-add product development, home cultivation, wholesale, and retail distribution. The company’s products consist of dried cannabis and cannabis oil; CanniMed vegan capsules; and hemp products, as well as sells vaporizers, consumable vaporizer accessories, and herb mills for using herbal cannabis products. It also operates CanvasRX, a network of cannabis counseling and outreach centers; and provides cannabis analytical product testing services. The company has operations in 19 countries across five continents. Aurora Cannabis Inc. has collaboration agreements with PharmaChoice, Pharmasave, and Shoppers Drug Mart for the distribution, sale, and marketing of medical cannabis products through their respective networks of pharmacies. The company has a strategic agreements with Hempco Food and Fiber Inc.; CTT Pharmaceuticals Inc.; Choom Holdings Inc.; Capcium Inc.; The Green Organic Dutchman Holdings Ltd.; Société des Alcools du Québec; Alcanna; Radient Technologies; Micron Waste; Wagner Dimas; Evio; and Cann Group Limited. Aurora Cannabis Inc. is headquartered in Edmonton, Canada.

Details
Name: Aurora Cannabis Inc.
ACB
Exchange: TSX
Founded:
CA$9,286,943,013
998,596,023
Website: http://auroramj.com
Address: Aurora Cannabis Inc.
10355 Jasper Avenue,
Suite 500,
Edmonton,
Alberta, T5J 1Y6,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX ACB Common Shares The Toronto Stock Exchange CA CAD 18. Dec 2014
NYSE ACB Common Shares New York Stock Exchange US USD 18. Dec 2014
DB 21P Common Shares Deutsche Boerse AG DE EUR 18. Dec 2014
LSE 0UJG Common Shares London Stock Exchange GB CAD 18. Dec 2014
Number of employees
Current staff
Staff numbers
171
Aurora Cannabis employees.
Industry
Pharmaceuticals
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/22 01:04
End of day share price update: 2019/02/21 00:00
Last estimates confirmation: 2019/02/21
Last earnings filing: 2019/02/11
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.