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Cronos Group

TSX:CRON
Snowflake Description

High growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CRON
TSX
CA$7B
Market Cap
  1. Home
  2. CA
  3. Pharmaceuticals & Biotech
Company description

Cronos Group Inc., formerly known as PharmaCan Capital Corp., is a principal investment firm. The last earnings update was 29 days ago. More info.


Add to Portfolio Compare Print
  • Cronos Group is a fund or ETF! Currently our data availability for these is poor, we only recommend using them as part of a portfolio.
  • Cronos Group has significant price volatility in the past 3 months.
CRON Share Price and Events
7 Day Returns
2.9%
TSX:CRON
9.3%
CA Pharmaceuticals
0.6%
CA Market
1 Year Returns
150%
TSX:CRON
19.7%
CA Pharmaceuticals
3.4%
CA Market
CRON Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Cronos Group (CRON) 2.9% -20% 4.3% 150% 8660% -
CA Pharmaceuticals 9.3% 1.9% 25.4% 19.7% 779.6% 514.9%
CA Market 0.6% 2.7% 8.3% 3.4% 15.7% 7.1%
1 Year Return vs Industry and Market
  • CRON outperformed the Pharmaceuticals industry which returned 19.7% over the past year.
  • CRON outperformed the Market in Canada which returned 3.4% over the past year.
Price Volatility
CRON
Industry
5yr Volatility vs Market

Value

 Is Cronos Group 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 Cronos Group 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

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

TSX:CRON Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 13.9%
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:CRON
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Pharmaceuticals Unlevered Beta Simply Wall St/ S&P Global 2.86
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 2.864 (1 + (1- 26.5%) (0.29%))
2.253
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 * 5.96%)
13.87%

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

The calculations below outline how an intrinsic value for Cronos Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:CRON DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 13.87%)
2019 -96.59 Analyst x5 -84.82
2020 35.45 Analyst x2 27.34
2021 60.49 Analyst x3 40.97
2022 91.35 Analyst x3 54.34
2023 120.37 Analyst x3 62.88
2024 144.18 Est @ 19.78% 66.15
2025 164.99 Est @ 14.43% 66.48
2026 182.62 Est @ 10.69% 64.62
2027 197.35 Est @ 8.07% 61.33
2028 209.65 Est @ 6.23% 57.22
Present value of next 10 years cash flows CA$416.50
TSX:CRON DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CA$209.65 × (1 + 1.95%) ÷ (13.87% – 1.95%)
CA$1,793.03
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$1,793.03 ÷ (1 + 13.87%)10
CA$489.34
TSX:CRON Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$416.50 + CA$489.34
CA$905.84
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$905.84 / 332.98
CA$2.72
TSX:CRON Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$2.72
Current discount Discount to share price of CA$21.90
= -1 x (CA$21.90 - CA$2.72) / CA$2.72
-705%

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

  • The current share price of Cronos Group 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 Cronos Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Cronos Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:CRON PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CAD CA$-0.11
TSX:CRON Share Price ** TSX (2019-04-23) in CAD CA$21.9
Canada Pharmaceuticals Industry PE Ratio Median Figure of 15 Publicly-Listed Pharmaceuticals Companies 20.53x
Canada Market PE Ratio Median Figure of 557 Publicly-Listed Companies 14.88x

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

** Primary Listing of Cronos Group.

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

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

= 21.9 ÷ -0.11

-198.88x

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

  • Cronos Group is loss making, we can't compare its value to the CA Pharmaceuticals industry average.
  • Cronos Group is loss making, we can't compare the value of its earnings to the Canada market.
Price based on expected Growth
Does Cronos Group's expected growth come at a high price?
Raw Data
TSX:CRON PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -198.88x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
79%per year
Canada Pharmaceuticals Industry PEG Ratio Median Figure of 9 Publicly-Listed Pharmaceuticals Companies 1.14x
Canada Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.2x

*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 Cronos Group, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Cronos Group's assets?
Raw Data
TSX:CRON PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CAD CA$1.18
TSX:CRON Share Price * TSX (2019-04-23) in CAD CA$21.9
Canada Pharmaceuticals Industry PB Ratio Median Figure of 138 Publicly-Listed Pharmaceuticals Companies 2.99x
Canada Market PB Ratio Median Figure of 2,380 Publicly-Listed Companies 1.51x
TSX:CRON PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 21.9 ÷ 1.18

18.51x

* Primary Listing of Cronos Group.

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

  • Cronos Group is overvalued based on assets compared to the CA Pharmaceuticals industry average.
X
Value checks
We assess Cronos Group'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. Cronos Group has a total score of 0/6, 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 Cronos Group expected to perform in the next 1 to 3 years based on estimates from 9 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
79%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Cronos Group expected to grow at an attractive rate?
  • Cronos Group's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Cronos Group's earnings growth is expected to exceed the Canada market average.
  • Cronos Group's revenue growth is expected to exceed the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:CRON Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:CRON Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 79%
TSX:CRON Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 41.3%
Canada Pharmaceuticals Industry Earnings Growth Rate Market Cap Weighted Average 102.8%
Canada Pharmaceuticals Industry Revenue Growth Rate Market Cap Weighted Average 52.7%
Canada Market Earnings Growth Rate Market Cap Weighted Average 18.2%
Canada Market Revenue Growth Rate Market Cap Weighted Average 7.2%

*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:CRON Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:CRON Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 749 2
2022-12-31 688 1
2021-12-31 400 117 95 5
2020-12-31 231 45 59 9
2019-12-31 67 -44 -35 8
TSX:CRON Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2018-12-31 16 -10 -19
2018-09-30 12 -36 -5
2018-06-30 9 -21 3
2018-03-31 7 -17 2
2017-12-31 4 -6 2
2017-09-30 4 -5 2
2017-06-30 3 -10 0
2017-03-31 1 -8 -2
2016-12-31 1 -6 -1
2016-09-30 2 -4 0
2016-06-30 2 -2 -1
2016-03-31 4 -1 1

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Cronos Group's earnings are expected to grow significantly at over 20% yearly.
  • Cronos Group'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:CRON Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Cronos Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:CRON Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.27 0.36 0.18 2.00
2020-12-31 0.11 0.17 0.06 4.00
2019-12-31 -0.09 -0.06 -0.11 5.00
TSX:CRON Past Financials Data
Date (Data in CAD Millions) EPS *
2018-12-31 -0.11
2018-09-30 -0.03
2018-06-30 0.02
2018-03-31 0.02
2017-12-31 0.02
2017-09-30 0.01
2017-06-30 0.00
2017-03-31 -0.02
2016-12-31 -0.02
2016-09-30 -0.01
2016-06-30 -0.02
2016-03-31 0.02

*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.
  • Unable to establish if Cronos Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Cronos Group'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.
Cronos Group has a total score of 5/6, 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 Cronos Group 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 Cronos Group'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.
  • Cronos Group does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Cronos Group's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Cronos Group's 1-year growth to the CA Pharmaceuticals industry average as it is not currently profitable.
Earnings and Revenue History
Cronos Group'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 Cronos Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:CRON 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 15.70 -18.97 25.77 2.35
2018-09-30 11.71 -5.47 19.04
2018-06-30 9.26 2.83 14.18
2018-03-31 6.51 2.29 11.05
2017-12-31 4.08 2.49 8.80
2017-09-30 4.44 1.80 7.71
2017-06-30 3.04 0.47 6.88
2017-03-31 1.08 -1.54 4.94
2016-12-31 0.55 -1.19 3.74
2016-09-30 2.30 -0.37 2.55
2016-06-30 2.33 -0.63 1.88
2016-03-31 3.56 0.65 1.81
2015-12-31 3.40 0.39 1.95
2015-09-30 -0.61 -4.98 2.27
2015-06-30 -0.83 -5.35 2.57
2015-03-31 -0.74 -5.22 2.62
2014-12-31 -0.67 -4.79 2.34
2014-09-30 -0.49 -1.99 1.49
2014-06-30 -0.30 -1.31 1.00
2013-12-31 -0.21 -0.68 0.46

*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 Cronos Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Cronos Group 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 Cronos Group 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 Cronos Group'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.
Cronos Group 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 Cronos Group'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 Cronos Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Cronos Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Cronos Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Cronos Group'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.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3.1x 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 Cronos Group Company Filings, last reported 3 months ago.

TSX:CRON Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 211.64 20.95 32.63
2018-09-30 222.27 5.72 41.48
2018-06-30 227.27 5.57 89.61
2018-03-31 131.29 5.59 32.37
2017-12-31 86.37 5.37 9.21
2017-09-30 67.52 5.02 16.53
2017-06-30 50.99 0.00 4.41
2017-03-31 50.61 4.00 15.21
2016-12-31 33.68 4.00 3.46
2016-09-30 30.57 4.00 5.78
2016-06-30 15.29 0.12 3.47
2016-03-31 11.21 1.57 0.32
2015-12-31 11.70 1.57 1.13
2015-09-30 7.25 1.31 0.07
2015-06-30 8.04 1.25 0.80
2015-03-31 8.50 0.62 0.36
2014-12-31 9.27 0.12 0.80
2014-09-30 10.21 0.12 3.25
2014-06-30 8.39 0.12 4.13
2013-12-31 0.91 0.18 0.01
  • Cronos Group's level of debt (9.9%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (19% vs 9.9% today).
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.

  • Information is not available.
  • Unable to confirm if Cronos Group has at least 1 year of cash runway based on growing free cash flows without relevant data.
X
Financial health checks
We assess Cronos Group'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. Cronos Group has a total score of 4/6, 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 Cronos Group'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 Cronos Group dividends. Estimated to be 0% next year.
If you bought CA$2,000 of Cronos Group 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 Cronos Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Cronos Group'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:CRON 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 9 Analyst Estimates (S&P Global) See Below
North America Pharmaceuticals Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 2.8%
Canada Market Average Dividend Yield Market Cap Weighted Average of 331 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2.1%
Canada Top 25% Dividend Yield 75th Percentile 5.5%

Industry and Market average data is calculated daily.

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

TSX:CRON Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 0.00 1.00
2019-12-31 0.00 1.00

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

  • Unable to perform a dividend volatility check as Cronos Group has not reported any payouts.
  • Unable to verify if Cronos Group's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Cronos Group's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Cronos Group has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Cronos Group's dividends in 3 years as they are not expected to pay a notable one for Canada.
X
Income/ dividend checks
We assess Cronos Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - 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 Cronos Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Cronos Group 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 Cronos Group'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
Mike Gorenstein
COMPENSATION CA$2,911,682
AGE 30
TENURE AS CEO 2.9 years
CEO Bio

Mr. Michael Gorenstein, also known as Mike, J.D., has been the President since May 16, 2016 and Chief Executive Officer since May 13, 2016 at Cronos Group Inc. and previously served as its Corporate Secretary since May 16, 2016. Mr. Gorenstein served as a Partner at Alphabet Ventures LLC from June 2015 to June 2017. Prior to this, Mr. Gorenstein served as Principal, Vice President and General Counsel at Saiers Capital LLC (f/k/a Alphabet Management, LLC) from January 2015 to June 2015. He was a Corporate Attorney at Sullivan & Cromwell, where he focused on Mergers and Acquisitions and Capital Market transactions and was an Associate from October 2011 to December 2015. He serves as the Chairman of Cronos Group Inc. and has been its Director since November 06, 2015 and previously served as its Vice Chairman. He is also a Co-founder and Member of Gotham Green Partners GP since June 2017. Mr. Gorenstein graduated from the University of Pennsylvania Law School with a JD, the Wharton School at University of Pennsylvania with a certificate in Business Economics and Public Policy and the Kelley School of Business at Indiana University with a BSB in Finance.

CEO Compensation
  • Mike's compensation has increased whilst company is loss making.
  • Mike's remuneration is lower than average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the Cronos Group management team in years:

1.5
Average Tenure
  • The average tenure for the Cronos Group management team is less than 2 years, this suggests a new team.
Management Team

Mike Gorenstein

TITLE
Chairman
COMPENSATION
CA$3M
AGE
30
TENURE
2.9 yrs

David Hsu

TITLE
Chief Operating Officer
COMPENSATION
CA$2M
TENURE
0.8 yrs

Xiuming Shum

TITLE
General Counsel & Corporate Secretary
COMPENSATION
CA$382K
TENURE
1.5 yrs

Jeff Jacobson

TITLE
Head of Sales & Business Development
COMPENSATION
CA$490K

William Hilson

TITLE
Chief Commercial Officer
COMPENSATION
CA$179K

Jerry Barbato

TITLE
Chief Financial Officer

Anna Shlimak

TITLE
Head of Investor Relations & Communications

Eric Klein

TITLE
Head of Marketing

Kevin Gifford

TITLE
Vice President of Finance
Board of Directors Tenure

Average tenure and age of the Cronos Group board of directors in years:

0.1
Average Tenure
45
Average Age
  • The average tenure for the Cronos Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Jim Rudyk

TITLE
Lead Director
AGE
51
TENURE
0.9 yrs

Mike Gorenstein

TITLE
Chairman
COMPENSATION
CA$3M
AGE
30

K.C. Crosthwaite

TITLE
Director
AGE
42
TENURE
0.1 yrs

Jason Adler

TITLE
Director
COMPENSATION
CA$3M
AGE
45
TENURE
2.8 yrs

Bronwen Evans

TITLE
Director
TENURE
0.1 yrs

Murray Garnick

TITLE
Director
AGE
58
TENURE
0.1 yrs

Bruce Gates

TITLE
Director
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • Cronos Group insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
31. Mar 19 Sell William Hilson Individual 28. Mar 19 28. Mar 19 -60,438 CA$24.00 CA$-1,448,412
25. Dec 18 Buy Michael Coates Individual 21. Dec 18 21. Dec 18 734 CA$10.77 CA$7,905
X
Management checks
We assess Cronos Group'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. Cronos Group 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

Is Cronos Group Inc's (TSE:CRON) Balance Sheet Strong Enough To Weather A Storm?

Cronos Group Inc (TSE:CRON) is a small-cap stock with a market capitalization of CA$1.60b. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Assessing first and foremost the financial health is

Simply Wall St -

Company Info

Description

Cronos Group Inc., formerly known as PharmaCan Capital Corp., is a principal investment firm. The firm seeks to invest in companies either licensed, or actively seeking a license, to produce medical marijuana pursuant to Canada’s Marihuana for Medical Purposes Regulations “MMPR”. The firm typically invests in companies based in Canada. The firm is primarily an equity investor, may also advance debt as appropriate. It seeks to make minority investments with appropriate governance and shareholder rights. The firm seeks board representation consistent with the size of the investment, but does not need control. Cronos Group Inc. was incorporated in January, 2013 and is based in Toronto, Canada with an additional office in Toronto, Canada.

Details
Name: Cronos Group Inc.
CRON
Exchange: TSX
Founded: 2013
CA$7,292,252,736
332,979,577
Website: http://www.thecronosgroup.com
Address: Cronos Group Inc.
720 King Street West,
Suite 320,
Toronto,
Ontario, M5V 2T3,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX CRON New Common Shares The Toronto Stock Exchange CA CAD 15. Dec 2014
NasdaqGM CRON New Common Shares Nasdaq Global Market US USD 15. Dec 2014
DB 7CI New Common Shares Deutsche Boerse AG DE EUR 15. Dec 2014
Number of employees
Current staff
Staff numbers
291
Cronos Group employees.
Industry
Pharmaceuticals
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/24 00:45
End of day share price update: 2019/04/23 00:00
Last estimates confirmation: 2019/04/17
Last earnings filing: 2019/03/26
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


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.