Cronos Group
Market Cap
CA$2.7b
Last Updated
2020/04/08 13:28 UTC
Data Sources
Company Financials +
Executive Summary
Cronos Group Inc., formerly known as PharmaCan Capital Corp., is a principal investment firm.
Rewards
Snowflake Analysis
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
5.6%
CRON
-2.4%
CA Pharmaceuticals
2.1%
CA Market
1 Year Return
-67.7%
CRON
-74.4%
CA Pharmaceuticals
-21.2%
CA Market
Return vs Industry: CRON exceeded the Canadian Pharmaceuticals industry which returned -76.2% over the past year.
Return vs Market: CRON underperformed the Canadian Market which returned -22.9% over the past year.
Shareholder returns
| CRON | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.6% | -2.4% | 2.1% |
| 30 Day | 8.8% | -12.9% | -13.8% |
| 90 Day | -15.4% | -33.7% | -21.9% |
| 1 Year | -67.7%-67.7% | -74.4%-74.4% | -18.6%-21.2% |
| 3 Year | 138.2%138.2% | -26.9%-27.4% | -11.0%-19.3% |
| 5 Year | 1458.0%1458.0% | 188.5%188.5% | 1.6%-13.6% |
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
1 year ago | Simply Wall St
Is Cronos Group Inc's (TSE:CRON) Balance Sheet Strong Enough To Weather A Storm?1 year ago | Simply Wall St
Best-In-Class Growth Stocks1 year ago | Simply Wall St
Best-In-Class Growth StocksValuation
Is Cronos Group 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: CRON (CA$8.16) is trading below our estimate of fair value (CA$15.63)
Significantly Below Fair Value: CRON is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CRON is good value based on its PE Ratio (1.5x) compared to the Pharmaceuticals industry average (6.8x).
PE vs Market: CRON is good value based on its PE Ratio (1.5x) compared to the Canadian market (10.5x).
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 overvalued based on its PB Ratio (1.1x) compared to the CA Pharmaceuticals industry average (0.8x).
Future Growth
How is Cronos Group forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
-76.6%
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 (-73.1% per year).
Earnings vs Market: CRON's earnings are forecast to decline over the next 3 years (-73.1% per year).
High Growth Earnings: CRON's earnings are forecast to decline over the next 3 years.
Revenue vs Market: CRON's revenue (37.2% per year) is forecast to grow faster than the Canadian market (3.3% per year).
High Growth Revenue: CRON'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: CRON's Return on Equity is forecast to be low in 3 years time (5.5%).
Past Performance
How has Cronos Group performed over the past 5 years?
96.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CRON has a high level of non-cash earnings.
Growing Profit Margin: CRON became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: CRON has become profitable over the past 5 years, growing earnings by 96.5% per year.
Accelerating Growth: CRON has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: CRON has become profitable in the last year, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (-9.9%).
Return on Equity
High ROE: CRON's Return on Equity (66.6%) is considered outstanding.
Financial Health
How is Cronos Group's financial position?
Financial Position Analysis
Short Term Liabilities: CRON's short term assets ($1.6B) exceed its short term liabilities ($332.9M).
Long Term Liabilities: CRON's short term assets ($1.6B) exceed its long term liabilities ($8.5M).
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 1.3%.
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
Dividend
What is Cronos Group's 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 payouts.
High Dividend: Unable to evaluate CRON'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 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.
Management
How experienced are the management team and are they aligned to shareholders interests?
1.0yrs
Average management tenure
CEO
Mike Gorenstein (31yo)
3.92s
Tenure
US$824,842
Compensation
Mr. Michael Gorenstein, also known as Mike, J.D., has been the President since May 16, 2016 and Chief Executive Officer since May 13, 2016 at Cronos Group Inc. and previously served as its Corporate Secret ...
CEO Compensation Analysis
Compensation vs Market: Mike's total compensation ($USD583.07K) is below average for companies of similar size in the Canadian market ($USD2.57M).
Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 3.92yrs | US$824.84k | 0.37% $10.0m | |
| Executive VP of Legal and Regulatory Affairs & Corporate Secetary | 2.5yrs | US$1.10m | no data | |
| Chief Financial Officer | 1yr | no data | no data | |
| Head of Marketing | no data | no data | no data | |
| Senior Vice President of Corporate Affairs | 0.083yr | no data | 0.0029% $78.0k | |
| Chief Innovation Officer | 0.75yr | no data | no data | |
| Chief Executive Officer of Redwood | no data | no data | 0.015% $421.2k | |
| VP & Controller | no data | no data | no data | |
| Vice President of Finance | no data | no data | no data |
1.0yrs
Average Tenure
Experienced Management: CRON's management team is not considered experienced ( 1 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 3.92yrs | US$824.84k | 0.37% $10.0m | |
| Independent Director | 1.08yrs | no data | no data | |
| Lead Director | 1.92yrs | US$1.22m | 0.010% $282.3k | |
| Director | 1.08yrs | no data | no data | |
| Director | 0.58yr | no data | no data | |
| Independent Director | 3.75yrs | US$557.91k | 1.91% $52.0m | |
| Director | 0.083yr | no data | no data |
1.1yrs
Average Tenure
47yo
Average Age
Experienced Board: CRON's board of directors are not considered experienced ( 1.1 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 substantially diluted in the past year, with total shares outstanding growing by 80%.
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: 2013
- Industry: Pharmaceuticals
- Sector: Pharmaceuticals & Biotech
- Market Cap: CA$2.717b
- Shares outstanding: 348.82m
- Website: https://www.thecronosgroup.com
Number of Employees
Location
- Cronos Group Inc.
- 720 King Street West
- Suite 320
- Toronto
- Ontario
- M5V 2T3
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CRON | TSX (The Toronto Stock Exchange) | Yes | New Common Shares | CA | CAD | Dec 2014 |
| CRON | NasdaqGM (Nasdaq Global Market) | Yes | New Common Shares | US | USD | Dec 2014 |
| 7CI | DB (Deutsche Boerse AG) | Yes | New Common Shares | DE | EUR | Dec 2014 |
Biography
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 in Toronto, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/08 13:28 |
| End of Day Share Price | 2020/04/07 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.