TSX:CRON

Stock Analysis Report

Executive Summary

Cronos Group Inc., formerly known as PharmaCan Capital Corp., is a principal investment firm.

Snowflake


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Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

5.4%

CRON

-1.3%

CA Pharmaceuticals

0.2%

CA Market


1 Year Return

-0.7%

CRON

-49.1%

CA Pharmaceuticals

2.4%

CA Market

Return vs Industry: CRON exceeded the Canadian Pharmaceuticals industry which returned -49.1% over the past year.

Return vs Market: CRON underperformed the Canadian Market which returned 2.4% over the past year.


Shareholder returns

CRONIndustryMarket
7 Day5.4%-1.3%0.2%
30 Day-19.6%-21.1%-3.3%
90 Day-45.9%-32.6%-1.8%
1 Year-0.7%-0.7%-49.1%-49.1%6.0%2.4%
3 Year803.3%803.3%86.3%84.9%14.2%4.0%
5 Yearn/a288.2%288.2%27.2%8.6%

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

Valuation

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$10.93) is trading below our estimate of fair value (CA$22.39)

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 (4.1x) compared to the Pharmaceuticals industry average (11.6x).

PE vs Market: CRON is good value based on its PE Ratio (4.1x) compared to the Canadian market (13.7x).


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 (3x) compared to the CA Pharmaceuticals industry average (1.8x).

Future Growth

How is Cronos Group forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

-56.5%

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 (-56.5% per year).

Earnings vs Market: CRON's earnings are forecast to decline over the next 3 years (-56.5% per year).

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

Revenue vs Market: CRON's revenue (52.8% per year) is forecast to grow faster than the Canadian market (5.5% per year).

High Growth Revenue: CRON's revenue (52.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CRON's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Cronos Group performed over the past 5 years?

99.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CRON has become profitable over the past 5 years, growing earnings by 99.2% per year.

Accelerating Growth: CRON's earnings growth over the past year (23199.3%) exceeds its 5-year average (99.2% per year).

Earnings vs Industry: CRON earnings growth over the past year (23199.3%) exceeded the Pharmaceuticals industry 15.6%.


Return on Equity

High ROE: CRON's Return on Equity (53.9%) is considered outstanding.


Return on Assets

ROA vs Industry: CRON has a higher Return on Assets than the Pharmaceuticals industry average last year.


Return on Capital Employed

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

Financial Health

How is Cronos Group's financial position?


Financial Position Analysis

Short Term Liabilities: CRON's short term assets (CA$2.4B) exceeds its short term liabilities (CA$1.4B)

Long Term Liabilities: CRON's short term assets (2.4B) exceeds its long term liabilities (9.4M)


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 1.4%.

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

Inventory Level: CRON has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if CRON's debt is covered by short term assets.

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%6.0%industryaverage2.8%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

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

0.9yrs

Average management tenure


CEO

Mike Gorenstein (32yo)

3.4yrs

Tenure

CA$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 ($USD628.02K) is below average for companies of similar size in the Canadian market ($USD2.95M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Management Age and Tenure

0.9yrs

Average Tenure

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


Board Age and Tenure

0.6yrs

Average Tenure

49yo

Average Age

Experienced Board: CRON's board of directors are not considered experienced ( 0.6 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyCA$40,342,34806 Sep 19
Gotham Green Partners, LLC
EntityCompany
Shares2,067,241
Max PriceCA$19.52
BuyCA$667,24006 Sep 19
Robert Rosenheck
EntityIndividual
Shares34,191
Max PriceCA$19.52
BuyCA$58,90728 Aug 19
Mark Newman
EntityIndividual
Shares4,000
Max PriceCA$14.73
BuyCA$14,72528 Aug 19
Rachel Newman
EntityIndividual
Shares1,000
Max PriceCA$14.73
BuyCA$78,09122 Aug 19
Nabil Sakkab
EntityIndividual
Shares5,000
Max PriceCA$15.62
BuyCA$1,111,67513 May 19
Altria Group, Inc.
EntityCompany
Shares50,938
Max PriceCA$21.82
SellCA$1,448,41231 Mar 19
William Hilson
EntityIndividual
Role
Senior Key Executive
Chief Commercial Officer
Shares60,438
Max PriceCA$24.00
BuyCA$7,90525 Dec 18
Michael Coates
EntityIndividual
Shares734
Max PriceCA$10.77

Ownership Breakdown


Management Team

  • Kevin Gifford

    Vice President of Finance

    • Tenure: 0yrs
  • Todd Abraham

    Chief Innovation Officer

    • Tenure: 0.3yrs
  • Mike Gorenstein (32yo)

    Chairman

    • Tenure: 3.4yrs
    • Compensation: CA$824.84k
  • David Hsu

    Chief Operating Officer

    • Tenure: 1.3yrs
    • Compensation: CA$254.11k
  • William Hilson

    Chief Commercial Officer

    • Tenure: 0.5yrs
    • Compensation: CA$150.00k
  • Xiuming Shum

    Executive VP of Legal and Regulatory Affairs & Corporate Secetary

    • Tenure: 2yrs
    • Compensation: CA$1.10m
  • Jeff Jacobson

    Head of Sales & Business Development

    • Tenure: 0yrs
    • Compensation: CA$192.62k
  • Anna Shlimak

    Head of Investor Relations & Communications

    • Tenure: 0yrs
  • Jerry Barbato

    Chief Financial Officer

    • Tenure: 0.5yrs
  • Eric Klein

    Head of Marketing

    • Tenure: 0yrs

Board Members

  • Bronwen Evans (49yo)

    Director

    • Tenure: 0.6yrs
  • Jim Rudyk (52yo)

    Lead Director

    • Tenure: 1.4yrs
    • Compensation: CA$1.22m
  • Murray Garnick (59yo)

    Director

    • Tenure: 0.6yrs
  • Jody Begley (47yo)

    Director

    • Tenure: 0.08yrs
  • Bruce Gates (58yo)

    Director

    • Tenure: 0.6yrs
  • Mike Gorenstein (32yo)

    Chairman

    • Tenure: 3.4yrs
    • Compensation: CA$824.84k
  • Jason Adler (47yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: CA$557.91k

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$3.674b
  • Shares outstanding: 336.15m
  • 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., 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 mariju ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 00:40
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.