Aurora Cannabis
Market Cap
CA$2.4b
Last Updated
2020/02/17 00:55 UTC
Data Sources
Company Financials +
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
-1.0%
ACB
5.6%
CA Pharmaceuticals
0.6%
CA Market
1 Year Return
-77.8%
ACB
-57.9%
CA Pharmaceuticals
5.8%
CA Market
Return vs Industry: ACB underperformed the Canadian Pharmaceuticals industry which returned -57.9% over the past year.
Return vs Market: ACB underperformed the Canadian Market which returned 5.8% over the past year.
Shareholder returns
| ACB | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.0% | 5.6% | 0.6% |
| 30 Day | -25.6% | -14.1% | 0.5% |
| 90 Day | -33.8% | 0.6% | 3.6% |
| 1 Year | -77.8%-77.8% | -57.9%-57.9% | 9.1%5.8% |
| 3 Year | -19.0%-22.0% | 14.5%13.7% | 15.4%5.0% |
| 5 Year | n/a | 317.1%317.1% | 33.6%14.0% |
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
3 weeks ago | Simply Wall St
Before You Buy Aurora Cannabis Inc. (TSE:ACB), Consider Its Volatility1 month ago | Simply Wall St
Did Changing Sentiment Drive Aurora Cannabis's (TSE:ACB) Share Price Down A Painful 71%?1 month ago | Simply Wall St
Read This Before Buying Aurora Cannabis Inc. (TSE:ACB) SharesValuation
Is Aurora Cannabis undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ACB (CA$2.06) is trading below our estimate of fair value (CA$4.71)
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 (0.6x) compared to the CA Pharmaceuticals industry average (1.4x).
Next Steps
Future Growth
How is Aurora Cannabis forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?
89.6%
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 (42.2% per year) is forecast to grow faster than the Canadian market (4.9% per year).
High Growth Revenue: ACB's revenue (42.2% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ACB's Return on Equity is forecast to be low in 3 years time (1%).
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 (-11.3%).
Return on Equity
High ROE: ACB has a negative Return on Equity (-38.13%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
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
Inventory Level: ACB has a high level of physical assets or inventory.
Debt Coverage by Assets: ACB's debt is covered by short term assets (assets are 1.3x debt).
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
Current dividend yield vs market & industry
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?
2.5yrs
Average management tenure
CEO
Michael Singer (54yo)
CA$2,196,509
Compensation
Mr. Michael Singer, CGA, serves as an Interim Chief Executive Officer of Aurora Cannabis Inc. Mr. Singer was an Executive Officer at Clementia Pharmaceuticals Inc from August 3, 2018 until August 03, 2018. ...
CEO Compensation Analysis
Compensation vs Market: Michael's total compensation ($USD1.66M) is about average for companies of similar size in the Canadian market ($USD2.15M).
Compensation vs Earnings: Michael's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman & Interim CEO | 0yrs | CA$2.20m | 0.0053% CA$126.4k | |
| Founder | 5.2yrs | CA$1.33m | 1.72% CA$41.4m | |
| Founder & Director | 5.2yrs | CA$2.41m | 1.0% CA$24.0m | |
| Chief Financial Officer | 2.8yrs | CA$1.32m | 0.0026% CA$62.4k | |
| Chief Commercial Officer | 1.4yrs | CA$1.86m | no data | |
| Chief Operating Officer | 2.8yrs | CA$1.10m | 0.011% CA$267.3k | |
| Chief Information Officer | 2.3yrs | no data | 0.00077% CA$18.5k | |
| Chief Science Officer | 1.3yrs | no data | 0.016% CA$374.9k | |
| Vice President of Capital Markets & Investor Relations | 0yrs | no data | no data | |
| Chief Legal Officer & Corporate Secretary | 2.1yrs | no data | 0.0022% CA$52.0k |
2.5yrs
Average Tenure
54yo
Average Age
Experienced Management: ACB's management team is considered experienced (2.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman & Interim CEO | 0yrs | CA$2.20m | 0.0053% CA$126.4k | |
| Founder | 5.2yrs | CA$1.33m | 1.72% CA$41.4m | |
| Founder & Director | 5.2yrs | CA$2.41m | 1.0% CA$24.0m | |
| Independent Director | 1yrs | CA$199.21k | no data | |
| Independent Director | 0yrs | no data | no data | |
| Lead Independent Director | 1yrs | CA$230.01k | 0.0080% CA$193.1k | |
| Independent Director | 4.5yrs | CA$246.76k | 0.0033% CA$79.2k | |
| Independent Director | 0yrs | no data | no data | |
| Independent Director | 4.9yrs | CA$294.01k | 0.096% CA$2.3m | |
| Independent Director | 1.6yrs | CA$243.68k | 0.0029% CA$71.0k |
3.9yrs
Average Tenure
55yo
Average Age
Experienced Board: ACB's board of directors are considered experienced (3.9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ACB insiders have sold more shares than they have bought 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$2.408b
- Shares outstanding: 1.17b
- Website: https://auroramj.com
Number of Employees
Location
- Aurora Cannabis Inc.
- 10355 Jasper Avenue
- Suite 500
- Edmonton
- Alberta
- T5J 1Y6
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 21P | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Dec 2014 |
| ACB | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Dec 2014 |
| ACB | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Dec 2014 |
| 0UJG | LSE (London Stock Exchange) | Yes | Common Shares | GB | CAD | Dec 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/17 00:55 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/06/30 |
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.