TSX:APHA

Stock Analysis Report

Executive Summary

Aphria Inc. produces and sells medical cannabis in Canada and internationally.

Snowflake

Fundamentals

Fair value with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.8%

APHA

-2.1%

CA Pharmaceuticals

-0.3%

CA Market


1 Year Return

-59.1%

APHA

-46.2%

CA Pharmaceuticals

4.8%

CA Market

Return vs Industry: APHA underperformed the Canadian Pharmaceuticals industry which returned -46.2% over the past year.

Return vs Market: APHA underperformed the Canadian Market which returned 4.8% over the past year.


Shareholder returns

APHAIndustryMarket
7 Day2.8%-2.1%-0.3%
30 Day-12.2%-15.0%-3.3%
90 Day-8.4%-32.4%-1.6%
1 Year-59.1%-59.1%-46.2%-46.2%8.5%4.8%
3 Year82.1%82.1%88.1%86.7%14.8%4.5%
5 Yearn/a306.6%306.6%26.6%8.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Aphria 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: APHA (CA$6.63) is trading below our estimate of fair value (CA$37.85)

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


Price To Earnings Ratio

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

PE vs Market: APHA 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 APHA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: APHA is good value based on its PB Ratio (1x) compared to the CA Pharmaceuticals industry average (1.8x).


Next Steps

Future Growth

How is Aphria forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

77.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: APHA is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: APHA is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: APHA is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: APHA's revenue (37.2% per year) is forecast to grow faster than the Canadian market (5.6% per year).

High Growth Revenue: APHA's revenue (37.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: APHA's Return on Equity is forecast to be low in 3 years time (6%).


Next Steps

Past Performance

How has Aphria performed over the past 5 years?

23.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: APHA is unprofitable, but has reduced losses over the past 5 years at a rate of 23.4% per year.

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

Earnings vs Industry: APHA is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (15.6%).


Return on Equity

High ROE: APHA has a negative Return on Equity (-1.21%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: APHA is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: APHA is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Aphria's financial position?


Financial Position Analysis

Short Term Liabilities: APHA's short term assets (CA$735.9M) exceeds its short term liabilities (CA$123.0M)

Long Term Liabilities: APHA's short term assets (735.9M) exceeds its long term liabilities (555.3M)


Debt to Equity History and Analysis

Debt Level: APHA's debt to equity ratio (26.7%) is considered satisfactory

Reducing Debt: Insufficient data to determine if APHA's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: APHA has a high level of physical assets or inventory.

Debt Coverage by Assets: APHA's debt is covered by short term assets (assets are 1.6x 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: Insufficient data to determine if APHA has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if APHA has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%6.0%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if APHA'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 APHA's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

0.6yrs

Average management tenure


CEO

Irwin Simon (61yo)

0.6yrs

Tenure

CA$9,577,296

Compensation

Mr. Irwin D. Simon has been an Chairman of Aphria Inc. since December 27, 2018 and serves as its Interim Chief Executive Officer since March 01, 2019. Mr. Simon founded The Hain Celestial Group, Inc. a lea ...


CEO Compensation Analysis

Compensation vs. Market: Irwin has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Canadian market.

Compensation vs Earnings: Insufficient data to compare Irwin's compensation with company performance.


Management Age and Tenure

0.6yrs

Average Tenure

62.5yo

Average Age

Experienced Management: APHA's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Age and Tenure

0.9yrs

Average Tenure

58yo

Average Age

Experienced Board: APHA's board of directors are not considered experienced ( 0.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: APHA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$24,80021 Oct 19
Renah Persofsky
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceCA$6.20
BuyCA$12,51014 Aug 19
Renah Persofsky
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,500
Max PriceCA$8.34
BuyCA$47,31709 Aug 19
Walter Robb
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceCA$9.46
BuyCA$21,64018 Apr 19
Renah Persofsky
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceCA$10.82
BuyCA$22,05905 Dec 18
Renah Persofsky
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,500
Max PriceCA$6.40
BuyCA$64,53004 Dec 18
Jakob Ripshtein
EntityIndividual
Shares7,500
Max PriceCA$8.60
BuyCA$1,025,66403 Dec 18
Victor Neufeld
EntityIndividual
Role
Senior Key Executive
Special Advisor
Shares120,000
Max PriceCA$8.55
BuyCA$25,57503 Dec 18
Carl Merton
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares3,300
Max PriceCA$7.75
BuyCA$1,029,22803 Dec 18
Cole Cacciavillani
EntityIndividual
Role
Senior Key Executive
Special Advisor
Shares120,000
Max PriceCA$8.58
BuyCA$999,58703 Dec 18
John Cervini
EntityIndividual
Shares117,200
Max PriceCA$8.53

Ownership Breakdown


Management Team

  • Vic Neufeld (65yo)

    Special Advisor

    • Tenure: 0.6yrs
    • Compensation: CA$1.00m
  • James Meiers

    Chief Operating Officer of Aphria Leamington

    • Tenure: 0.4yrs
  • Carl Merton

    Chief Financial Officer

    • Tenure: 3.8yrs
    • Compensation: CA$1.37m
  • Gary Leong (54yo)

    Chief Science Officer

    • Tenure: 0yrs
  • John Sadler

    Vice President of Investor Relations

    • Tenure: 1.1yrs
  • Cole Cacciavillani (64yo)

    Special Advisor

    • Tenure: 0.6yrs
    • Compensation: CA$457.89k
  • Christelle Gedeon

    Chief Legal Officer

    • Tenure: 1.3yrs
    • Compensation: CA$1.61m
  • Hendrik Knopp

    Managing Director of Aphria Germany

    • Tenure: 0yrs
    • Compensation: CA$1.70m
  • Irwin Simon (61yo)

    Interim CEO & Chairman

    • Tenure: 0.6yrs
    • Compensation: CA$9.58m
  • Tim Purdie

    Chief Information Officer & Chief Information Security Officer

    • Tenure: 0.4yrs

Board Members

  • Walter Robb (65yo)

    Independent Director

    • Tenure: 0.5yrs
    • Compensation: CA$33.17k
  • Dave Hopkinson (48yo)

    Independent Director

    • Tenure: 0.5yrs
    • Compensation: CA$33.17k
  • Shawn Dym (39yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: CA$342.11k
  • John Herhalt (62yo)

    Lead Independent Director

    • Tenure: 0.9yrs
    • Compensation: CA$332.96k
  • Tom Looney (56yo)

    Independent Director

    • Tenure: 0.9yrs
    • Compensation: CA$256.28k
  • Michael Serruya (55yo)

    Independent Director

    • Tenure: 0.9yrs
    • Compensation: CA$250.12k
  • Renah Persofsky (60yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: CA$423.88k
  • Irwin Simon (61yo)

    Interim CEO & Chairman

    • Tenure: 0.6yrs
    • Compensation: CA$9.58m

Company Information

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


Key Information

  • Name: Aphria Inc.
  • Ticker: APHA
  • Exchange: TSX
  • Founded:
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CA$1.668b
  • Shares outstanding: 251.56m
  • Website: https://aphriainc.com

Number of Employees


Location

  • Aphria Inc.
  • 245 Talbot Street West
  • Suite 103
  • Leamington
  • Ontario
  • N8H 3C4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
APHATSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 2014
APHANYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 2014
10EDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2014
0UI4LSE (London Stock Exchange)YesCommon SharesGBCADDec 2014

Biography

Aphria Inc. produces and sells medical cannabis in Canada and internationally. The company offers pharmaceutical-grade medical cannabis; and adult-use cannabis under the Solei, RIFF, Good Supply, and Broke ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/24 00:41
End of Day Share Price2019/10/23 00:00
Earnings2019/08/31
Annual Earnings2019/05/31


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.