TSX:APHA

Stock Analysis Report

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Executive Summary

Aphria Inc. cultivates, processes, produces, markets, distributes, and sells medical cannabis in Canada and internationally. More Details


Snowflake Analysis

High growth potential with adequate 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

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


Market Performance


7 Day Return

-21.4%

APHA

1.4%

CA Pharmaceuticals

-0.9%

CA Market


1 Year Return

-8.6%

APHA

-19.8%

CA Pharmaceuticals

-4.2%

CA Market

Return vs Industry: APHA exceeded the Canadian Pharmaceuticals industry which returned -19.8% over the past year.

Return vs Market: APHA underperformed the Canadian Market which returned -4.2% over the past year.


Shareholder returns

APHAIndustryMarket
7 Day-21.4%1.4%-0.9%
30 Day2.2%14.8%1.2%
90 Day-11.5%11.7%1.4%
1 Year-8.6%-8.6%-19.8%-19.8%-0.7%-4.2%
3 Year-12.2%-12.2%-15.3%-16.1%6.6%-3.8%
5 Year409.2%409.2%170.4%169.0%34.2%13.5%

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$6.06) is trading below our estimate of fair value (CA$15.72)

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 CA 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 (1.5x).


Next Steps

Future Growth

How is Aphria forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

58.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: APHA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

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

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

Revenue vs Market: APHA's revenue (23.6% per year) is forecast to grow faster than the Canadian market (5.8% per year).

High Growth Revenue: APHA's revenue (23.6% 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 (8%).


Next Steps

Past Performance

How has Aphria performed over the past 5 years?

-38.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: APHA is currently unprofitable.

Growing Profit Margin: APHA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: APHA is unprofitable, and losses have increased over the past 5 years at a rate of 38.1% 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 (30.9%).


Return on Equity

High ROE: APHA has a negative Return on Equity (-5.74%), as it is currently unprofitable.


Next Steps

Financial Health

How is Aphria's financial position?


Financial Position Analysis

Short Term Liabilities: APHA's short term assets (CA$891.5M) exceed its short term liabilities (CA$166.0M).

Long Term Liabilities: APHA's short term assets (CA$891.5M) exceed its long term liabilities (CA$474.4M).


Debt to Equity History and Analysis

Debt Level: APHA's debt to equity ratio (22.6%) is considered satisfactory.

Reducing Debt: APHA's debt to equity ratio has increased from 0.9% to 22.6% 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: APHA has sufficient cash runway for more than a year 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 current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate APHA'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 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

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

1.6yrs

Average management tenure


CEO

Irwin Simon (62 yo)

1.58yrs

Tenure

CA$18,623,184

Compensation

Mr. Irwin D. Simon has been Chairman of Aphria Inc. since December 27, 2018 and serves as its Chief Executive Officer since February 2020 and served as its Interim Chief Executive Officer from March 01, 20 ...


CEO Compensation Analysis

Compensation vs Market: Irwin's total compensation ($USD14.19M) is above average for companies of similar size in the Canadian market ($USD2.07M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Irwin Simon
CEO & Chairman1.58yrsCA$18.62mno data
Carl Merton
Chief Financial Officer4.83yrsCA$1.51m0.11%
CA$ 1.9m
Christelle Gedeon
Chief Legal Officer2.33yrsCA$1.89mno data
James Meiers
Chief Operating Officer of Aphria Leamington1.42yrsCA$2.94mno data
Denise Faltischek
Chief Strategy Officer0.92yrCA$2.27mno data
John Sadler
Vice President of Investor Relations2.08yrsno datano data
Bernard Yeung
Senior Vice President of Sales & Marketing0.33yrno datano data
Maureen Berry
Vice President of Corporate Human Resources1.42yrsno datano data
Victor Neufeld
Special Advisor1.58yrsCA$1.00mno data
Cole Cacciavillani
Special Advisor1.58yrsCA$457.89kno data
Tamara Macgregor
Chief Corporate Affairs Officer0.92yrno datano data
Hendrik Knopp
Managing Director of Aphria Germany GmbHno dataCA$691.96kno data

1.6yrs

Average Tenure

63.5yo

Average Age

Experienced Management: APHA's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Irwin Simon
CEO & Chairman1.58yrsCA$18.62mno data
Walter Robb
Independent Director1.5yrsCA$299.99k0.0017%
CA$ 30.3k
David Hopkinson
Independent Director1.5yrsCA$299.99kno data
John Herhalt
Independent Director2.08yrsCA$302.10kno data
Tom Looney
Independent Director1.92yrsCA$299.99k0.00026%
CA$ 4.6k
Jodi Heimpel Butts
Independent Director0.92yrCA$158.15kno data
Renah Persofsky
Independent Vice Chairman & Lead Director0.75yrCA$357.47k0.0065%
CA$ 113.1k

1.5yrs

Average Tenure

61yo

Average Age

Experienced Board: APHA's board of directors are not considered experienced ( 1.5 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 diluted in the past year, with total shares outstanding growing by 14.8%.


Top Shareholders

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$1.753b
  • Shares outstanding: 289.34m
  • Website: https://aphriainc.com

Number of Employees


Location

  • Aphria Inc.
  • 98 Talbot Street West
  • Leamington
  • Ontario
  • N8H 1M8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
APHATSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 2014
APHANasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDDec 2014
10EDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2014
0UI4LSE (London Stock Exchange)YesCommon SharesGBCADDec 2014

Biography

Aphria Inc. cultivates, processes, produces, markets, distributes, and sells medical cannabis in Canada and internationally. The company offers pharmaceutical-grade medical cannabis, adult-use cannabis, an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 00:44
End of Day Share Price2020/10/20 00:00
Earnings2020/08/31
Annual Earnings2020/05/31


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.