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

Fundamentals

High growth potential with adequate balance sheet.


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


Market Performance


7 Day Return

0.2%

WEED

-1.3%

CA Pharmaceuticals

0.2%

CA Market


1 Year Return

-50.5%

WEED

-49.1%

CA Pharmaceuticals

2.4%

CA Market

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

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


Shareholder returns

WEEDIndustryMarket
7 Day0.2%-1.3%0.2%
30 Day-20.9%-21.1%-3.3%
90 Day-42.9%-32.6%-1.8%
1 Year-50.5%-50.5%-49.1%-49.1%6.0%2.4%
3 Year349.6%349.6%86.3%84.9%14.2%4.0%
5 Year1336.2%1336.2%288.2%288.2%27.2%8.6%

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?

1.61x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate WEED's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate WEED's fair value to establish if it is undervalued.


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 good value based on its PB Ratio (1.6x) compared to the CA Pharmaceuticals industry average (1.8x).


Next Steps

Future Growth

How is Canopy Growth forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

98.0%

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 (1.9%).

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

High Growth Earnings: WEED's loss is forecast to worsen by 0% next year.

Revenue vs Market: WEED's revenue (53.2% per year) is forecast to grow faster than the Canadian market (5.5% per year).

High Growth Revenue: WEED's revenue (53.2% 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?

-98.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WEED is unprofitable, and losses have increased over the past 5 years at a rate of -98.3% 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 (15.6%).


Return on Equity

High ROE: WEED has a negative Return on Equity (-31.57%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: WEED is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

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


Next Steps

Financial Health

How is Canopy Growth's financial position?


Financial Position Analysis

Short Term Liabilities: WEED's short term assets (CA$3.9B) exceeds its short term liabilities (CA$372.8M)

Long Term Liabilities: WEED's short term assets (3.9B) exceeds its long term liabilities (2.4B)


Debt to Equity History and Analysis

Debt Level: WEED's debt to equity ratio (35.3%) is considered satisfactory

Reducing Debt: WEED's debt to equity ratio has increased from 0.08% to 35.3% over the past 5 years.


Balance Sheet

Inventory Level: WEED has a high level of physical assets or inventory.

Debt Coverage by Assets: WEED's debt is covered by short term assets (assets are 1.857170x debt).


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


Next Steps

Dividend

What is Canopy Growth'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 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.

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

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

0.3yrs

Average management tenure


CEO

Mark Anthony Zekulin 0

0.3yrs

Tenure

CA$5,958,440

Compensation

Mr. Mark Anthony Nicholas Zekulin has been Chief Executive Officer of Canopy Growth Corporation since July 2, 2019 and has been its Director since July 15, 2019. Mr. Zekulin served as the President at Cano ...


CEO Compensation Analysis

Compensation vs. Market: Mark Anthony has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Canadian market.

Compensation vs Earnings: Mark Anthony's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

0.3yrs

Average Tenure

Experienced Management: WEED's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Age and Tenure

0.9yrs

Average Tenure

59.5yo

Average Age

Experienced Board: WEED's board of directors are not considered experienced ( 0.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellCA$187,56028 Jun 19
David Bigioni
EntityIndividual
Shares3,600
Max PriceCA$52.10
SellCA$4,903,61628 Jun 19
Mark Anthony Zekulin
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares95,374
Max PriceCA$51.41
BuyCA$10,79113 Dec 18
David Bigioni
EntityIndividual
Shares252
Max PriceCA$42.82
BuyCA$151,16411 Dec 18
David Bigioni
EntityIndividual
Shares3,600
Max PriceCA$41.99
SellCA$14911 Dec 18
Robert Hanson
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5
Max PriceCA$29.85

Ownership Breakdown


Management Team

  • Chris Schnarr (52yo)

    Senior Vice President

    • Tenure: 0.08yrs
    • Compensation: CA$7.37m
  • phil Shaer

    Chief Legal Officer & VP of Human Resources

    • Tenure: 0yrs
    • Compensation: CA$2.41m
  • Tyler Burns

    Investor Relations Officer

    • Tenure: 0yrs
  • Mark Anthony Zekulin

    CEO & Director

    • Tenure: 0.3yrs
    • Compensation: CA$5.96m
  • Rade Kovacevic

    Acting President

    • Tenure: 0.3yrs
    • Compensation: CA$2.52m
  • Tim Saunders

    Strategic Advisor

    • Tenure: 0.3yrs
    • Compensation: CA$5.93m
  • Tom Shipley

    Senior VP of Global Quality Assurance & Chief Science Officer

    • Tenure: 0yrs
  • Peter Popplewell

    Chief Technology Officer

    • Tenure: 1.8yrs
  • Mike Lee

    Chief Financial Officer

    • Tenure: 0.3yrs
  • Andre Fernandez

    Chief Operating Officer

    • Tenure: 0.3yrs

Board Members

  • Peter Stringham (69yo)

    Director

    • Tenure: 3.1yrs
    • Compensation: CA$321.65k
  • Bill Newlands (60yo)

    Director

    • Tenure: 0.9yrs
  • Robert Hanson (56yo)

    Director

    • Tenure: 0.9yrs
    • Compensation: CA$216.68k
  • John Bell (72yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: CA$356.23k
  • David Klein (55yo)

    Chairman of the Board

    • Tenure: 0yrs
  • Judy Schmeling (59yo)

    Director

    • Tenure: 0.9yrs
    • Compensation: CA$225.02k
  • Mark Anthony Zekulin

    CEO & Director

    • Tenure: 0.3yrs
    • Compensation: CA$5.96m

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$9.243b
  • Shares outstanding: 347.87m
  • 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 R ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 00:18
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
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.