TSX:WEED

Stock Analysis Report

Executive Summary

Canopy Growth Corporation, together with its subsidiaries, engages in engages in production, distribution, and sale of cannabis in Canada.


Snowflake Analysis

Excellent balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Canopy Growth's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WEED's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.2%

WEED

-2.4%

CA Pharmaceuticals

2.1%

CA Market


1 Year Return

-64.0%

WEED

-74.4%

CA Pharmaceuticals

-21.2%

CA Market

Return vs Industry: WEED exceeded the Canadian Pharmaceuticals industry which returned -74.4% over the past year.

Return vs Market: WEED underperformed the Canadian Market which returned -21.2% over the past year.


Shareholder returns

WEEDIndustryMarket
7 Day5.2%-2.4%2.1%
30 Day12.2%-12.9%-13.8%
90 Day-25.6%-33.7%-21.9%
1 Year-64.0%-64.0%-74.4%-74.4%-18.6%-21.2%
3 Year96.4%96.4%-26.9%-27.4%-11.0%-19.3%
5 Year883.0%883.0%188.5%188.5%1.6%-13.6%

Price Volatility Vs. Market

How volatile is Canopy Growth's share price compared to the market and industry in the last 5 years?


Simply Wall St News

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$20.25) is trading below our estimate of fair value (CA$152.21)

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 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 overvalued based on its PB Ratio (1.3x) compared to the CA Pharmaceuticals industry average (0.8x).


Next Steps

Future Growth

How is Canopy Growth forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

74.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: WEED's revenue (30.5% per year) is forecast to grow faster than the Canadian market (3.4% per year).

High Growth Revenue: WEED's revenue (30.5% 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 WEED's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Canopy Growth performed over the past 5 years?

-89.0%

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 -89% 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 (-9.9%).


Return on Equity

High ROE: WEED has a negative Return on Equity (-38.04%), as it is currently unprofitable.


Next Steps

Financial Health

How is Canopy Growth's financial position?


Financial Position Analysis

Short Term Liabilities: WEED's short term assets (CA$3.2B) exceed its short term liabilities (CA$418.3M).

Long Term Liabilities: WEED's short term assets (CA$3.2B) exceed its long term liabilities (CA$2.1B).


Debt to Equity History and Analysis

Debt Level: WEED's debt to equity ratio (10.1%) is considered satisfactory.

Reducing Debt: WEED's debt to equity ratio has increased from 8.6% to 10.1% 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 a year based on its current free cash flow.

Forecast Cash Runway: WEED has sufficient cash runway for 1.3 years if free cash flow continues to reduce at historical rates of -68.9% each year.


Next Steps

Dividend

What is Canopy Growth's 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 payouts.

High Dividend: Unable to evaluate WEED'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 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?

0.8yrs

Average management tenure


CEO

David Klein (55yo)

0.25

Tenure

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


Leadership Team

NamePositionTenureCompensationOwnership
David Klein
CEO & Director0.25yrno data0.10% CA$7.1m
Rade Kovacevic
Acting President0.75yrCA$2.52m0.099% CA$7.0m
Phillip Shaer
Chief Legal Officer & VP of Human Resourcesno dataCA$2.41m0.0031% CA$220.2k
Timothy Saunders
Strategic Advisor0.83yrCA$5.93mno data
Michael Lee
Chief Financial Officer0.83yrno datano data
Andre Fernandez
Chief Operating Officer0.83yrno datano data
Peter Popplewell
Chief Technology Officer2.25yrsno datano data
Tom Shipley
Senior VP of Global Quality Assurance & Chief Science Officerno datano data0.0021% CA$150.1k
Tyler Burns
Vice President of Investor Relationsno datano datano data
Jason Green
Head of Agriculture - Hemp Divisionno datano datano data

0.8yrs

Average Tenure

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


Board Members

NamePositionTenureCompensationOwnership
David Klein
CEO & Director0.25yrno data0.10% CA$7.1m
David Lazzarato
Directorno datano data0.0021% CA$148.0k
William Newlands
Independent Director1.42yrsno datano data
Robert Hanson
Independent Director1.42yrsCA$216.68k0.00096% CA$68.0k
Judy Schmeling
Chairman0.25yrCA$225.02k0.0040% CA$281.8k
James Sabia
Observer to the Board0.25yrno data0.00043% CA$30.4k
Terry Yanofsky
Directorno datano data0.0021% CA$148.0k

1.4yrs

Average Tenure

57.5yo

Average Age

Experienced Board: WEED's board of directors are not considered experienced ( 1.4 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 50.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: Canopy Growth Corporation
  • Ticker: WEED
  • Exchange: TSX
  • Founded:
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CA$7.080b
  • Shares outstanding: 349.65m
  • Website: https://www.canopygrowth.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WEEDTSX (The Toronto Stock Exchange)YesCommon SharesCACADMar 2014
CGCNYSE (New York Stock Exchange)YesCommon SharesUSUSDMar 2014
11L1DB (Deutsche Boerse AG)YesCommon SharesDEEURMar 2014
0UO9LSE (London Stock Exchange)YesCommon SharesGBCADMar 2014

Biography

Canopy Growth Corporation, together with its subsidiaries, engages in engages in production, distribution, and sale of cannabis in Canada. It operates through two segments, Cannabis Operations and Canopy Rivers. The company’s products include dried flowers, oils and concentrates, softgel capsules, and hemps. It offers its products under the Tweed, Spectrum, DNA Genetics, CraftGrow, Tokyo Smoke, DOJA, Van der Pop, and Maitri brands. The company also provides growth capital and a strategic support platform that pursues investment opportunities in the global cannabis sector. Canopy Growth Corporation has a clinical research partnership with NEEKA Health Canada to investigate the efficacy of cannabinoids for the treatment of post-concussion neurological diseases in former NHL players; partnership with Parent Action on Drugs; and a collaboration with Cure Pharmaceutical Holding Corp. for the development of low-dose cannabidiol oral thin films. The company was formerly known as Tweed Marijuana Inc. and changed its name to Canopy Growth Corporation in September 2015. Canopy Growth Corporation is headquartered in Smiths Falls, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 05:50
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.