Canopy Growth
Market Cap
CA$7.1b
Last Updated
2020/04/08 05:50 UTC
Data Sources
Company Financials +
Executive Summary
Canopy Growth Corporation, together with its subsidiaries, engages in engages in production, distribution, and sale of cannabis in Canada.
Rewards
Risk Analysis
Shareholders have been substantially diluted in the past year
Currently unprofitable and not forecast to become profitable over the next 3 years
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
| WEED | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.2% | -2.4% | 2.1% |
| 30 Day | 12.2% | -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 Year | 96.4%96.4% | -26.9%-27.4% | -11.0%-19.3% |
| 5 Year | 883.0%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
1 month ago | Simply Wall St
Do Directors Own Canopy Growth Corporation (TSE:WEED) Shares?2 months ago | Simply Wall St
If You Had Bought Canopy Growth (TSE:WEED) Shares Five Years Ago You'd Have Made 1486%3 months ago | Simply Wall St
Canopy Growth Corporation's (TSE:WEED) Profit OutlookValuation
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 0.25yr | no data | 0.10% CA$7.1m | |
| Acting President | 0.75yr | CA$2.52m | 0.099% CA$7.0m | |
| Chief Legal Officer & VP of Human Resources | no data | CA$2.41m | 0.0031% CA$220.2k | |
| Strategic Advisor | 0.83yr | CA$5.93m | no data | |
| Chief Financial Officer | 0.83yr | no data | no data | |
| Chief Operating Officer | 0.83yr | no data | no data | |
| Chief Technology Officer | 2.25yrs | no data | no data | |
| Senior VP of Global Quality Assurance & Chief Science Officer | no data | no data | 0.0021% CA$150.1k | |
| Vice President of Investor Relations | no data | no data | no data | |
| Head of Agriculture - Hemp Division | no data | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 0.25yr | no data | 0.10% CA$7.1m | |
| Director | no data | no data | 0.0021% CA$148.0k | |
| Independent Director | 1.42yrs | no data | no data | |
| Independent Director | 1.42yrs | CA$216.68k | 0.00096% CA$68.0k | |
| Chairman | 0.25yr | CA$225.02k | 0.0040% CA$281.8k | |
| Observer to the Board | 0.25yr | no data | 0.00043% CA$30.4k | |
| Director | no data | no data | 0.0021% 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| WEED | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Mar 2014 |
| CGC | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Mar 2014 |
| 11L1 | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Mar 2014 |
| 0UO9 | LSE (London Stock Exchange) | Yes | Common Shares | GB | CAD | Mar 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/08 05:50 |
| End of Day Share Price | 2020/04/07 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
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.