TSX:CRON

Stock Analysis Report

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Executive Summary

Cronos Group Inc. operates as a cannabinoid company in the United States and internationally. More Details


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.4%

CRON

-7.4%

CA Pharmaceuticals

-2.3%

CA Market


1 Year Return

-43.8%

CRON

-42.9%

CA Pharmaceuticals

-8.6%

CA Market

Return vs Industry: CRON matched the Canadian Pharmaceuticals industry which returned -42.9% over the past year.

Return vs Market: CRON underperformed the Canadian Market which returned -8.6% over the past year.


Shareholder returns

CRONIndustryMarket
7 Day-2.4%-7.4%-2.3%
30 Day-4.2%-12.7%-4.5%
90 Day-17.2%-1.0%5.7%
1 Year-43.8%-43.8%-42.9%-42.9%-5.5%-8.6%
3 Year160.2%160.2%-23.9%-24.6%5.8%-4.4%
5 Year2,325.0%2,325.0%288.2%288.2%38.3%17.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Cronos Group undervalued compared to its fair value and its price relative to the market?

2.59x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CRON (CA$6.79) is trading above our estimate of fair value (CA$1.82)

Significantly Below Fair Value: CRON is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CRON is good value based on its PE Ratio (2.6x) compared to the CA Pharmaceuticals industry average (18.9x).

PE vs Market: CRON is good value based on its PE Ratio (2.6x) compared to the Canadian market (16.1x).


Price to Earnings Growth Ratio

PEG Ratio: CRON's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CRON is good value based on its PB Ratio (1.1x) compared to the CA Pharmaceuticals industry average (1.3x).


Next Steps

Future Growth

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

-34.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CRON's earnings are forecast to decline over the next 3 years (-34.3% per year).

Earnings vs Market: CRON's earnings are forecast to decline over the next 3 years (-34.3% per year).

High Growth Earnings: CRON's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CRON's revenue (43.2% per year) is forecast to grow faster than the Canadian market (5.2% per year).

High Growth Revenue: CRON's revenue (43.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Cronos Group performed over the past 5 years?

84.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CRON has high quality earnings.

Growing Profit Margin: CRON's current net profit margins are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: CRON has become profitable over the past 5 years, growing earnings by 84.6% per year.

Accelerating Growth: CRON's earnings growth over the past year (30.9%) is below its 5-year average (84.6% per year).

Earnings vs Industry: CRON earnings growth over the past year (30.9%) exceeded the Pharmaceuticals industry 18.3%.


Return on Equity

High ROE: CRON's Return on Equity (38.1%) is considered high.


Next Steps

Financial Health

How is Cronos Group's financial position?


Financial Position Analysis

Short Term Liabilities: CRON's short term assets ($1.4B) exceed its short term liabilities ($235.2M).

Long Term Liabilities: CRON's short term assets ($1.4B) exceed its long term liabilities ($12.0M).


Debt to Equity History and Analysis

Debt Level: CRON is debt free.

Reducing Debt: CRON has no debt compared to 5 years ago when its debt to equity ratio was 15.6%.

Debt Coverage: CRON has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: CRON has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Cronos Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate CRON'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 CRON's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CRON'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 CRON'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?

0.9yrs

Average management tenure


CEO

Kurt Schmidt (63 yo)

no data

Tenure

Mr. Kurt Thomas Schmidt, B.Sc., MBA, serves as President and Chief Executive Officer at Cronos Group Inc. since September 9, 2020. He has been Independent Director of Campbell Soup Company since November 2 ...


Leadership Team

NamePositionTenureCompensationOwnership
Michael Gorenstein
Executive Chairmanno dataUS$11.33m0.55%
$ 12.9m
Jerry Barbato
Chief Financial Officer1.42yrsUS$601.02k0%
$ 0
Xiuming Shum
Executive VP of Legal and Regulatory Affairs & Corporate Secretary2.92yrsUS$491.57k0%
$ 0
Kurt Schmidt
President & CEOno datano datano data
Shayne Laidlaw
Director of Investor Relations & Strategy0.67yrno datano data
Eric Klein
Head of Marketingno datano datano data
Anna Shlimak
Senior Vice President of Corporate Affairs0.50yrno data0.0029%
$ 67.9k
Todd Abraham
Chief Innovation Officer1.17yrsno data0.0043%
$ 101.9k
Puneet Mathur
VP & Controllerno datano datano data
Summer Frein
General Manager of USA0.67yrno datano data
Kevin Gifford
Vice President of Financeno datano datano data

0.9yrs

Average Tenure

36yo

Average Age

Experienced Management: CRON's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Michael Gorenstein
Executive Chairmanno dataUS$11.33m0.55%
$ 12.9m
Bronwen Evans
Independent Director1.5yrsUS$150.74kno data
James Rudyk
Independent Lead Director2.33yrsUS$162.05k0.010%
$ 246.1k
Murray Garnick
Independent Director1.5yrsno datano data
Jody Begley
Independent Director1yrno datano data
Jason Adler
Independent Director4.17yrsUS$150.74k1.91%
$ 45.4m
Heather Newman
Independent Director1.67yrsno datano data

1.6yrs

Average Tenure

48yo

Average Age

Experienced Board: CRON's board of directors are not considered experienced ( 1.6 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: CRON 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 4.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: Cronos Group Inc.
  • Ticker: CRON
  • Exchange: TSX
  • Founded:
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CA$2.376b
  • Shares outstanding: 349.89m
  • Website: https://www.thecronosgroup.com

Number of Employees


Location

  • Cronos Group Inc.
  • 720 King Street West
  • Suite 320
  • Toronto
  • Ontario
  • M5V 2T3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CRONTSX (The Toronto Stock Exchange)YesNew Common SharesCACADDec 2014
CRONNasdaqGM (Nasdaq Global Market)YesNew Common SharesUSUSDDec 2014
7CIDB (Deutsche Boerse AG)YesNew Common SharesDEEURDec 2014

Biography

Cronos Group Inc. operates as a cannabinoid company in the United States and internationally. It manufactures, markets, and distributes hemp-derived supplements and cosmetic products through ecommerce, ret ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/26 06:11
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.