WEED

Canopy GrowthTSX:WEED Stock Report

Market Cap

CA$7.4b

7D

-2.1%

1Y

-13.2%

Updated

18 Sep, 2021

Data

Company Financials +
WEED fundamental analysis
Snowflake Score
Valuation3/6
Future Growth5/6
Past Performance0/6
Financial Health4/6
Dividends0/6

WEED Overview

Canopy Growth Corporation, together with its subsidiaries, engages in the production, distribution, and sale of cannabis and hemp-based products for recreational and medical purposes primarily in Canada, the United States, and Germany.

Canopy Growth Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Canopy Growth
Historical stock prices
Current Share PriceCA$18.72
52 Week HighCA$18.40
52 Week LowCA$71.60
Beta2.08
1 Month Change-11.53%
3 Month Change-34.73%
1 Year Change-13.21%
3 Year Change-70.96%
5 Year Change378.77%
Change since IPO622.78%

Recent News & Updates

Shareholder Returns

WEEDCA PharmaceuticalsCA Market
7D-2.1%1.7%-0.6%
1Y-13.2%29.2%29.0%

Return vs Industry: WEED underperformed the Canadian Pharmaceuticals industry which returned 29.2% over the past year.

Return vs Market: WEED underperformed the Canadian Market which returned 29% over the past year.

Price Volatility

Is WEED's price volatile compared to industry and market?
WEED volatility
WEED Beta2.08
Industry Beta1.85
Market Beta1

Stable Share Price: WEED is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: WEED's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a3,259David Kleinhttps://www.canopygrowth.com

Canopy Growth Corporation, together with its subsidiaries, engages in the production, distribution, and sale of cannabis and hemp-based products for recreational and medical purposes primarily in Canada, the United States, and Germany. It operates through two segments, Global Cannabis and Other Consumer Products. The company’s products include dried cannabis flowers, oils and concentrates, and softgel capsules.

Canopy Growth Fundamentals Summary

How do Canopy Growth's earnings and revenue compare to its market cap?
WEED fundamental statistics
Market CapCA$7.36b
Earnings (TTM)-CA$1.24b
Revenue (TTM)CA$572.44m

12.9x

P/S Ratio

-5.9x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WEED income statement (TTM)
RevenueCA$572.44m
Cost of RevenueCA$458.55m
Gross ProfitCA$113.89m
ExpensesCA$1.36b
Earnings-CA$1.24b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-3.30
Gross Margin19.90%
Net Profit Margin-217.31%
Debt/Equity Ratio36.5%

How did WEED perform over the long term?

See historical performance and comparison

Valuation

Is Canopy Growth 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: WEED (CA$18.72) is trading below our estimate of fair value (CA$51.45)

Significantly Below Fair Value: WEED is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: WEED is good value based on its PB Ratio (1.8x) compared to the CA Pharmaceuticals industry average (2.6x).


Future Growth

How is Canopy Growth forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

20.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WEED is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.5%).

Earnings vs Market: WEED is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: WEED's is expected to become profitable in the next 3 years.

Revenue vs Market: WEED's revenue (29% per year) is forecast to grow faster than the Canadian market (6.1% per year).

High Growth Revenue: WEED's revenue (29% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has Canopy Growth performed over the past 5 years?

-63.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WEED is currently unprofitable.

Growing Profit Margin: WEED is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WEED is unprofitable, and losses have increased over the past 5 years at a rate of 63.8% per year.

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

Earnings vs Industry: WEED is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (115.1%).


Return on Equity

High ROE: WEED has a negative Return on Equity (-26.93%), as it is currently unprofitable.


Financial Health

How is Canopy Growth's financial position?


Financial Position Analysis

Short Term Liabilities: WEED's short term assets (CA$2.7B) exceed its short term liabilities (CA$256.1M).

Long Term Liabilities: WEED's short term assets (CA$2.7B) exceed its long term liabilities (CA$2.4B).


Debt to Equity History and Analysis

Debt Level: WEED's debt to equity ratio (36.5%) is considered satisfactory.

Reducing Debt: WEED's debt to equity ratio has increased from 3.1% to 36.5% over the past 5 years.


Balance Sheet


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.

Stable Cash Runway: WEED has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if WEED has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Dividend

What is Canopy Growth current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

2.2yrs

Average management tenure


CEO

David Klein (57 yo)

1.67yrs

Tenure

CA$3,514,096

Compensation

Mr. David Eric Klein has been the Chief Executive Officer at Canopy Growth Corporation since January 14, 2020 and has been its Director since November 1, 2018. Mr. Klein served as Chairman of the Board at...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD2.76M) is about average for companies of similar size in the Canadian market ($USD3.56M).

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


Leadership Team

Experienced Management: WEED's management team is considered experienced (2.2 years average tenure).


Board Members

Experienced Board: WEED's board of directors are not considered experienced ( 1.7 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 diluted in the past year, with total shares outstanding growing by 5.9%.


Top Shareholders

Company Information

Canopy Growth Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Canopy Growth Corporation
  • Ticker: WEED
  • Exchange: TSX
  • Founded: NaN
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CA$7.362b
  • Shares outstanding: 393.29m
  • Website: https://www.canopygrowth.com

Number of Employees


Location

  • Canopy Growth Corporation
  • 1 Hershey Drive
  • Smiths Falls
  • Ontario
  • K7A 0A8
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:13
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


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.