Cronos Group (TSX:CRON) - Share price, News & Analysis

CRON fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	2/6
Past Performance	0/6
Financial Health	6/6
Dividends	0/6

CRON Stock Overview

Cronos Group Inc. operates as a cannabinoid company.

Rewards

Revenue is forecast to grow 38.03% per year

Risk Analysis

No risks detected for CRON from our risk checks.

Cronos Group Competitors

Green Thumb Industries

CNSX:GTII

CA$3.7b

Canopy Growth

TSX:WEED

CA$3.0b

OrganiGram Holdings

TSX:OGI

CA$505.0m

HEXO

TSX:HEXO

CA$174.1m

Price History & Performance

Summary of all time highs, changes and price drops for Cronos Group
Historical stock prices
Current Share Price	CA$4.34
52 Week High	CA$11.37
52 Week Low	CA$3.65
Beta	1.51
1 Month Change	8.50%
3 Month Change	-3.34%
1 Year Change	-51.40%
3 Year Change	-79.00%
5 Year Change	76.42%
Change since IPO	422.89%

Recent News & Updates

May 19

We Think Cronos Group (TSE:CRON) Can Afford To Drive Business Growth

Even when a business is losing money, it's possible for shareholders to make money if they buy a good business at the...

Shareholder Returns

	CRON	CA Pharmaceuticals	CA Market
7D	1.9%	1.8%	2.7%
1Y	-51.4%	-63.2%	4.6%

Return vs Industry: CRON exceeded the Canadian Pharmaceuticals industry which returned -63.2% over the past year.

Return vs Market: CRON underperformed the Canadian Market which returned 4.6% over the past year.

Price Volatility

Is CRON's price volatile compared to industry and market?
CRON volatility
CRON Average Weekly Movement	9.2%
Pharmaceuticals Industry Average Movement	11.5%
Market Average Movement	9.8%
10% most volatile stocks in CA Market	16.8%
10% least volatile stocks in CA Market	4.3%

Stable Share Price: CRON is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: CRON's weekly volatility (9%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2012	626	Mike Gorenstein	https://www.thecronosgroup.com

Cronos Group Inc. operates as a cannabinoid company. It manufactures, markets, and distributes hemp-derived supplements and cosmetic products through e-commerce, retail, and hospitality partner channels under the Lord Jones and Happy Dance brands in the United States. The company is also involved in the cultivation, manufacture, and marketing of cannabis and cannabis-derived products for the medical and adult-use markets.

Cronos Group Fundamentals Summary

How do Cronos Group's earnings and revenue compare to its market cap?
CRON fundamental statistics
Market Cap	US$1.27b
Earnings (TTM)	-US$266.95m
Revenue (TTM)	US$86.86m

14.6x

P/S Ratio

-4.8x

P/E Ratio

Is CRON overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CRON income statement (TTM)
Revenue	US$86.86m
Cost of Revenue	US$94.50m
Gross Profit	-US$7.64m
Other Expenses	US$259.31m
Earnings	-US$266.95m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.71
Gross Margin	-8.80%
Net Profit Margin	-307.35%
Debt/Equity Ratio	0%

How did CRON perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

0.96x

Price to Book (PB) ratio

Share Price vs. Fair Value

Below Fair Value: CRON (CA$4.34) is trading above our estimate of fair value (CA$2.12)

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

Price To Earnings Ratio

PE vs Industry: CRON is unprofitable, so we can't compare its PE Ratio to the Canadian Pharmaceuticals industry average.

PE vs Market: CRON 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 CRON's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: CRON is good value based on its PB Ratio (1x) compared to the CA Pharmaceuticals industry average (1.2x).

Future Growth

How is Cronos Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

57.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CRON is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: CRON is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: CRON is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: CRON's revenue (38% per year) is forecast to grow faster than the Canadian market (6.4% per year).

High Growth Revenue: CRON's revenue (38% 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.

Past Performance

How has Cronos Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-16.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CRON is currently unprofitable.

Growing Profit Margin: CRON is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: CRON is unprofitable, and losses have increased over the past 5 years at a rate of 16.2% per year.

Accelerating Growth: Unable to compare CRON's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CRON is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (134.7%).

Return on Equity

High ROE: CRON has a negative Return on Equity (-20.26%), as it is currently unprofitable.

Financial Health

How is Cronos Group's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CRON's short term assets ($1.1B) exceed its short term liabilities ($40.3M).

Long Term Liabilities: CRON's short term assets ($1.1B) exceed 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 7.8%.

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 current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

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.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as CRON has not reported any payouts.

Discover strong dividend paying companies

Management

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

0.8yrs

Average management tenure

CEO

Mike Gorenstein (34 yo)

0.17

Tenure

US$389,147

Compensation

Mr. Michael Ryan Gorenstein, also known as Mike, J.D., serves as the Chairman of Cronos Group Inc. since March 21, 2022 and served as its Executive Chairman since September 09, 2020 until March 21, 2022 an...

CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD389.15K) is below average for companies of similar size in the Canadian market ($USD2.26M).

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

Leadership Team

Experienced Management: CRON's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.

Board Members

Experienced Board: CRON's board of directors are considered experienced (3.3 years average tenure).

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.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31