Canopy Growth

TSX:WEED

Snowflake Description

High growth potential with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.

WEED

TSX

CA$22B

Market Cap

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Last updated 2019/04/24 00:24

Company description

Canopy Growth Corporation, together with its subsidiaries, engages in growing, possession, and sale of medical cannabis in Canada. The last earnings update was 69 days ago. More info.

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WEED Share Price and Events

7 Day Returns

11.3%

TSX:WEED

9.3%

CA Pharmaceuticals

0.6%

CA Market

1 Year Returns

133.2%

TSX:WEED

19.7%

CA Pharmaceuticals

3.4%

CA Market

WEED Shareholder Return

	7 Day	30 Day	90 Day	1 Year	3 Year	5 Year
Canopy Growth (WEED)	11.3%	7.5%	7.7%	133.2%	2326%	1886.3%
CA Pharmaceuticals	9.3%	1.9%	25.4%	19.7%	779.6%	514.9%
CA Market	0.6%	2.7%	8.3%	3.4%	15.7%	7.1%

1 Year Return vs Industry and Market

WEED outperformed the Pharmaceuticals industry which returned 19.7% over the past year.
WEED outperformed the Market in Canada which returned 3.4% over the past year.

Price Volatility

WEED

Industry

5yr Volatility vs Market

Related Companies

WEED Value

Is Canopy Growth undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.

INTRINSIC VALUE BASED ON FUTURE CASH FLOWS

Here we compare the current share price of Canopy Growth to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.

Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Canopy Growth.

TSX:WEED Discounted Cash Flow Data Sources
Data Point	Source	Value
Valuation Model		2 Stage Free Cash Flow to Equity
Levered Free Cash Flow	Average of 13 Analyst Estimates (S&P Global)	See below
Discount Rate (Cost of Equity)	See below	13.9%
Perpetual Growth Rate	10-Year CA Government Bond Rate	1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:WEED
Data Point	Calculation/ Source	Result
Risk-Free Rate	10-Year CA Govt Bond Rate	1.9%
Equity Risk Premium	S&P Global	6%
Pharmaceuticals Unlevered Beta	Simply Wall St/ S&P Global	2.86
Re-levered Beta	= Unlevered beta (1 + (1- tax rate) (Debt/Equity)) = 2.864 (1 + (1- 26.5%) (3.62%))	2.3
Levered Beta	Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm)	2
Discount Rate/ Cost of Equity	= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium) = 1.95% + (2 * 5.96%)	13.87%

Discounted Cash Flow Calculation for TSX:WEED using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Canopy Growth is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:WEED DCF 1st Stage: Next 10 year cash flow forecast
	Levered FCF (CAD, Millions)	Source	Present Value Discounted (@ 13.87%)
2019	-660.63	Analyst x3	-580.18
2020	-164.00	Analyst x1	-126.49
2021	39.00	Analyst x1	26.42
2022	198.00	Analyst x1	117.78
2023	500.00	Analyst x1	261.20
2024	664.00	Analyst x1	304.64
2025	798.58	Est @ 20.27%	321.76
2026	916.55	Est @ 14.77%	324.32
2027	1,016.68	Est @ 10.92%	315.94
2028	1,100.36	Est @ 8.23%	300.30
Present value of next 10 years cash flows			CA$1,265.69

TSX:WEED DCF 2nd Stage: Terminal Value
	Calculation	Result
Terminal Value	= FCF₂₀₂₈ × (1 + g) ÷ (Discount Rate – g) = CA$1,100.36 × (1 + 1.95%) ÷ (13.87% – 1.95%)	CA$9,410.95
Present Value of Terminal Value	= Terminal Value ÷ (1 + r)¹⁰ = CA$9,410.95 ÷ (1 + 13.87%)¹⁰	CA$2,568.35

TSX:WEED Total Equity Value
	Calculation	Result
Total Equity Value	= Present value of next 10 years cash flows + Terminal Value = CA$1,265.69 + CA$2,568.35	CA$3,834.04
Equity Value per Share (CAD)	= Total value / Shares Outstanding = CA$3,834.04 / 344.14	CA$11.14

TSX:WEED Discount to Share Price
	Calculation	Result
Value per share (CAD)	From above.	CA$11.14
Current discount	Discount to share price of CA$63.56 = -1 x (CA$63.56 - CA$11.14) / CA$11.14	-470.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

The current share price of Canopy Growth is above its future cash flow value.

Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.

PRICE RELATIVE TO MARKET

We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Canopy Growth's earnings, growth and assets is considered below, and whether this is a fair price.

Price based on past earnings

Are Canopy Growth's earnings available for a low price, and how does this compare to other companies in the same industry?

Raw Data

TSX:WEED PE (Price to Earnings) Ratio Data Sources
Data Point	Source	Value
Earnings Per Share *	Company Filings (2018-12-31) in CAD	CA$-1.79
TSX:WEED Share Price **	TSX (2019-04-23) in CAD	CA$63.56
Canada Pharmaceuticals Industry PE Ratio	Median Figure of 15 Publicly-Listed Pharmaceuticals Companies	20.53x
Canada Market PE Ratio	Median Figure of 557 Publicly-Listed Companies	14.88x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Canopy Growth.

TSX:WEED PE (Price to Earnings) Ratio Calculation
	Calculation	Outcome
PE Ratio	= TSX:WEED Share Price ÷ EPS (both in CAD) = 63.56 ÷ -1.79	-35.59x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Canopy Growth is loss making, we can't compare its value to the CA Pharmaceuticals industry average.
Canopy Growth is loss making, we can't compare the value of its earnings to the Canada market.

Price based on expected Growth

Does Canopy Growth's expected growth come at a high price?

Raw Data

TSX:WEED PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point	Source	Value
PE Ratio	See PE Ratio Section	-35.59x
Net Income Annual Growth Rate	See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts	98.5%per year
Canada Pharmaceuticals Industry PEG Ratio	Median Figure of 9 Publicly-Listed Pharmaceuticals Companies	1.14x
Canada Market PEG Ratio	Median Figure of 256 Publicly-Listed Companies	1.2x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Unable to calculate PEG ratio for Canopy Growth, we can't assess if its growth is good value.

Price based on value of assets

What value do investors place on Canopy Growth's assets?

Raw Data

TSX:WEED PB (Price to Book) Ratio Data Sources
Data Point	Source	Value
Book Value per Share	Company Filings (2018-12-31) in CAD	CA$21.07
TSX:WEED Share Price *	TSX (2019-04-23) in CAD	CA$63.56
Canada Pharmaceuticals Industry PB Ratio	Median Figure of 138 Publicly-Listed Pharmaceuticals Companies	2.99x
Canada Market PB Ratio	Median Figure of 2,380 Publicly-Listed Companies	1.51x

TSX:WEED PB (Price to Book) Ratio Calculation
	Calculation	Outcome
PB Ratio	= TSX:WEED Share Price ÷ Book Value per Share (both in CAD) = 63.56 ÷ 21.07	3.02x

* Primary Listing of Canopy Growth.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Canopy Growth is overvalued based on assets compared to the CA Pharmaceuticals industry average.

Value checks

We assess Canopy Growth's value by looking at:

Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
Is the PE ratio less than the market average, and/ or less than the Pharmaceuticals industry average (and greater than 0)? (2 checks)
Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
Is the PB ratio less than the Pharmaceuticals industry average (and greater than 0)? (1 check)

Full details on the Value part of the Simply Wall St company analysis model.

WEED Future Performance

How is Canopy Growth expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!

98.5%

Expected annual growth in earnings.

Earnings growth vs Low Risk Savings

Is Canopy Growth expected to grow at an attractive rate?

Canopy Growth's earnings growth is expected to exceed the low risk savings rate of 1.9%.

Growth vs Market Checks

Canopy Growth's earnings growth is expected to exceed the Canada market average.
Canopy Growth's revenue growth is expected to exceed the Canada market average.

Annual Growth Rates Comparison

Raw Data

TSX:WEED Future Growth Rates Data Sources
Data Point	Source	Value (per year)
TSX:WEED Future Earnings Growth Rate	Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts	98.5%
TSX:WEED Future Revenue Growth Rate	Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts	38.6%
Canada Pharmaceuticals Industry Earnings Growth Rate	Market Cap Weighted Average	102.8%
Canada Pharmaceuticals Industry Revenue Growth Rate	Market Cap Weighted Average	52.7%
Canada Market Earnings Growth Rate	Market Cap Weighted Average	18.2%
Canada Market Revenue Growth Rate	Market Cap Weighted Average	7.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations

Raw Data

TSX:WEED Analysts Growth Expectations Data Sources
Data Point	Source	Value
Past Financials	Company Filings (3 months ago)	See Below
Future Estimates	Average of up to 13 Analyst Estimates (S&P Global)	See Below

All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.

TSX:WEED Future Estimates Data
Date (Data in CAD Millions)	Revenue	Cash Flow	Net Income *	Avg. No. Analysts
2024-03-31	3,638			1
2023-03-31	2,139			2
2022-03-31	1,743			2
2021-03-31	1,353	201	215	9
2020-03-31	803	-132	-175	13
2019-03-31	235	-442	-464	14

TSX:WEED Past Financials Data
Date (Data in CAD Millions)	Revenue	Cash Flow	Net Income *
2018-12-31	155	-332	-411
2018-09-30	94	-257	-477
2018-06-30	88	-137	-142
2018-03-31	78	-82	-70
2017-12-31	70	-60	-21
2017-09-30	58	-41	-19
2017-06-30	49	-36	-13
2017-03-31	40	-27	-8
2016-12-31	30	-14	-1
2016-09-30	24	-16	-7
2016-06-30	18	-14	-8
2016-03-31	13	-14	-3

*GAAP earnings excluding extraordinary items.

High Growth Checks

Canopy Growth's earnings are expected to grow significantly at over 20% yearly.
Canopy Growth's revenue is expected to grow significantly at over 20% yearly.

Past and Future Earnings per Share

The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.

Raw Data

TSX:WEED Past and Future Earnings per Share
Data Point	Source	Value
Past Financials	Company Filings (3 months ago)	See Below
Future Estimates	Average of up to 13 Analyst Estimates (S&P Global)	See Below

All data from Canopy Growth Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:WEED Future Estimates Data
Date (Data in CAD Millions)	EPS *	EPS High Estimate	EPS Low Estimate	Avg. No. Analysts
2024-03-31
2023-03-31
2022-03-31
2021-03-31	0.05	0.35	-0.50	3.00
2020-03-31	-0.44	-0.22	-0.69	5.00
2019-03-31	-1.60	-0.71	-1.87	6.00

TSX:WEED Past Financials Data
Date (Data in CAD Millions)	EPS *
2018-12-31	-1.79
2018-09-30	-2.39
2018-06-30	-0.76
2018-03-31	-0.40
2017-12-31	-0.13
2017-09-30	-0.13
2017-06-30	-0.09
2017-03-31	-0.06
2016-12-31	-0.01
2016-09-30	-0.07
2016-06-30	-0.09
2016-03-31	-0.05

*GAAP earnings excluding extraordinary items.

Performance in 3 years

In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.

Canopy Growth is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).

Show me more growth companies in the Pharmaceuticals industry

Future performance checks

We assess Canopy Growth's future performance by looking at:

Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
Is the annual earnings growth rate expected to be above 20%? (1 check)
Is the annual revenue growth rate expected to be above 20%? (1 check)
Is the Return on Equity in 3 years expected to be over 20%? (1 check)

Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Canopy Growth has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

WEED Past Performance

How has Canopy Growth performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.

Past earnings growth

Below we compare Canopy Growth's growth in the last year to its industry (Pharmaceuticals).

Past Earnings growth analysis

We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.

Canopy Growth does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
Unable to compare Canopy Growth's 1-year earnings growth to the 5-year average as it is not currently profitable.
Unable to compare Canopy Growth's 1-year growth to the CA Pharmaceuticals industry average as it is not currently profitable.

Earnings and Revenue History

Canopy Growth's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.

Raw Data

All data from Canopy Growth Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:WEED Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions)	Revenue	Net Income *	G+A Expenses	R&D Expenses
2018-12-31	155.10	-411.38	445.62	8.50
2018-09-30	93.75	-477.37	329.07	3.53
2018-06-30	87.99	-141.58	180.24	2.08
2018-03-31	77.95	-70.35	131.13	1.45
2017-12-31	69.80	-20.80	94.76	0.38
2017-09-30	57.86	-19.39	65.74	0.53
2017-06-30	48.78	-12.63	50.47	0.54
2017-03-31	39.90	-7.52	38.55	0.81
2016-12-31	30.28	-0.65	29.47	1.63
2016-09-30	24.01	-6.96	24.65	1.38
2016-06-30	17.97	-8.46	20.53	1.09
2016-03-31	12.70	-3.50	17.33	0.72
2015-12-31	8.41	0.32	12.83	0.49
2015-09-30	5.57	1.00	11.00	0.34
2015-06-30	3.42	-5.30	9.72	0.19
2015-03-31	1.90	-7.48	8.10	0.21
2014-12-31	1.15	-8.93	6.99	0.16
2014-09-30	0.50	-7.07	5.32	0.12
2013-12-31	-0.93	0.93

*GAAP earnings excluding extraordinary items.

Performance last year

We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.

It is difficult to establish if Canopy Growth has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
It is difficult to establish if Canopy Growth has efficiently used its assets last year compared to the CA Pharmaceuticals industry average (Return on Assets) as it is loss-making.
It is difficult to establish if Canopy Growth improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.

Past performance checks

We assess Canopy Growth's performance over the past 5 years by checking for:

Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the Pharmaceuticals industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)

The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Canopy Growth has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

WEED Health

How is Canopy Growth's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Canopy Growth's finances.

The net worth of a company is the difference between its assets and liabilities.

Net Worth

Canopy Growth is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Canopy Growth's cash and other short term assets cover its long term commitments.

Balance sheet

This treemap shows a more detailed breakdown of Canopy Growth's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.

Assets

Liabilities and shares

The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.

Low level of unsold assets.
Debt is covered by short term assets, assets are 6.7x debt.

Historical Debt

Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.

Raw Data

All data from Canopy Growth Company Filings, last reported 3 months ago.

TSX:WEED Past Debt and Equity Data
Date (Data in CAD Millions)	Total Equity	Total Debt	Cash & Short Term Investments
2018-12-31	7,423.68	791.50	4,933.50
2018-09-30	1,840.82	910.16	448.16
2018-06-30	1,224.46	620.29	657.90
2018-03-31	1,243.24	8.42	322.56
2017-12-31	1,019.86	8.79	237.71
2017-09-30	731.57	9.58	108.21
2017-06-30	682.86	9.91	115.49
2017-03-31	639.73	10.33	101.80
2016-12-31	251.52	7.17	92.50
2016-09-30	171.62	7.44	45.38
2016-06-30	132.38	4.13	19.53
2016-03-31	123.79	4.02	15.40
2015-12-31	132.05	3.97	19.72
2015-09-30	112.27	5.90	7.73
2015-06-30	42.92	1.89	15.17
2015-03-31	41.41	1.92	21.45
2014-12-31	21.67	1.88	5.77
2014-09-30	23.18	0.00	8.36
2013-12-31	3.83	0.04	2.09

Canopy Growth's level of debt (10.7%) compared to net worth is satisfactory (less than 40%).
The level of debt compared to net worth has increased over the past 5 years (1% vs 10.7% today).

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.

Canopy Growth has sufficient cash runway for more than 3 years based on current free cash flow.
Canopy Growth has sufficient cash runway for 2.5 years if free cash flow continues to grow at historical rates of 115.4% each year.

Show me more healthy companies in the Pharmaceuticals industry

Financial health checks

We assess Canopy Growth's financial health by checking for:

Are short term assets greater than short term liabilities? (1 check)
Are short term assets greater than long term liabilities? (1 check)
Has the debt to equity ratio increased in the past 5 years? (1 check)
Is the debt to equity ratio over 40%? (1 check)
Is the debt covered by operating cash flow? (1 check)
Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)

For companies that are loss making and have been so on average in the past we replace the last 2 checks with:

Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)

Full details on the Health part of the Simply Wall St company analysis model.

WEED Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.

Annual Dividend Income

Current annual income from Canopy Growth dividends. Estimated to be 0% next year.

If you bought CA$2,000 of Canopy Growth shares you are expected to receive CA$0 in your first year as a dividend.

Dividend Amount

Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?

Unable to evaluate Canopy Growth's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
Unable to evaluate Canopy Growth's dividend against the top 25% market benchmark as the company has not reported any payouts.

Annualized Historical and Future Dividends

It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.

Raw Data

TSX:WEED Annualized Past and Future Dividends
Data Point	Source	Value
Past Annualized Dividend Yield	S&P Global Market Data	See Below
Past Dividends per Share	Company Filings/ Annualized Dividend Payments	See Below
Future Dividends per Share Estimates	Average of up to 13 Analyst Estimates (S&P Global)	See Below
North America Pharmaceuticals Industry Average Dividend Yield	Market Cap Weighted Average of 9 Stocks	2.8%
Canada Market Average Dividend Yield	Market Cap Weighted Average of 331 Stocks	3.5%
Canada Minimum Threshold Dividend Yield	10th Percentile	1.2%
Canada Bottom 25% Dividend Yield	25th Percentile	2.1%
Canada Top 25% Dividend Yield	75th Percentile	5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:WEED Future Dividends Estimate Data
Date (Data in CA$)	Dividend per Share (annual)	Avg. No. Analysts
2024-03-31
2023-03-31
2022-03-31
2021-03-31
2020-03-31	0.00	1.00
2019-03-31	0.00	1.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Unable to perform a dividend volatility check as Canopy Growth has not reported any payouts.
Unable to verify if Canopy Growth's dividend has been increasing as the company has not reported any payouts.

Current Payout to shareholders

What portion of Canopy Growth's earnings are paid to the shareholders as a dividend.

Unable to calculate sustainability of dividends as Canopy Growth has not reported any payouts.

Future Payout to shareholders

No need to calculate the sustainability of Canopy Growth's dividends in 3 years as they are not expected to pay a notable one for Canada.

Income/ dividend checks

We assess Canopy Growth's dividend by checking for:

Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
Is current dividend yield above the bottom 25% of dividend payers? (1 check)
Is current dividend yield above the top 25% of dividend payers? (1 check)
Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
If they have paid a dividend for 10 years has it increased in this time? (1 check)
How sustainable is the dividend, can Canopy Growth afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)

Full details on the Dividends part of the Simply Wall St company analysis model.

WEED Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.

CEO

Bruce Linton

COMPENSATION	CA$2,516,014
AGE	51
TENURE AS CEO	0.8 years

CEO Bio

Mr. Bruce A. Linton, BPA serves as Chief Executive Officer and Chairman at Canopy Rivers Inc. and serves its Director since April 2017. Mr. Linton is a Co-Founder of Canopy Growth Corporation (formerly Tweed Marijuana Inc) and has been its Co-Chief Executive Officer since August 28, 2014. Mr. Linton serves as the Chief Executive Officer and President for Clearford's two divisions: the Wastewater Systems Division and the Brooklin Concrete Division. He also served as the Chief Executive Officer and President at Martello Technologies, Inc. He has been Vice President of SC Stormont Inc., since January 2005. He served as Interim Chief Executive Officer of Canopy Growth Corporation (formerly Tweed Marijuana Inc). from August 2014 to February 2015. He served as the Chief Executive Officer of Clearford Industries Inc. (now known as Clearford Water Systems Inc.) from February 28, 2005 to December 31, 2012 and served as its President from February 28, 2005 to May 28, 2012. He served as Chief Executive Officer and President of Brooklin Concrete Products Limited. He served as the Chief Executive Officer of IWSSI. He served as the President of Clearford Industries from August 2009 to May 28, 2012. He was Re-Founder of Computerland.ca., and served as its General Manager from April 2002 to December 2004. He Co-founded webHancer Corp. in 1999 and served as its President and Chief Executive Officer. He has more than 10 years of senior executive experience in technology based companies, including Crosskeys Systems Corp. He has significant and recent experience with the introduction of both CrossKeys and Clearford to the Asia Pacific region. He has established regular engagement with the World Bank and Asia Development Bank while focused on markets in India, Philippines, China, Peru, Colombia, Ecuador, Azerbaijan and Uzbekistan. He lead CrossKeys and Clearford's entry into the China market and in 2009 Clearford was awarded by the Canada-China Business Council for their market entry strategy. He was part of the leadership team for the Nasdaq/TSX IPO at CrossKeys Systems Corporation. He served as a Director of Asia Pacific Operations, Director of Business Relations and Director of Finance and Administration of CrossKeys. He serves as the Chairman of Canopy Growth Corporation (formerly Tweed Marijuana Inc) and Co-Chairman of Martello Technologies Group Inc. since August 15, 2018 and serves as its Director since April 29, 2013. He serves as a Director of and Bedrocan Cannabis Corp. He has been a Non-Executive Director of TW Holdings Limited since June 1, 2016. He serves as a Director of Carleton University and is Treasurer and Director at the non-profit youth organization Canadian World Youth. He served as a Director of Thermal Energy International Inc. since October 25, 2012 until November 28, 2016. He served as a Director of Clearford Industries Inc. from August 22, 2006 to October 16, 2013. He served as Director of Marchwell Ventures Ltd. from September 12, 2000 to November 17, 2011. He served as Director of Brooklin Concrete Products Limited. He was an industry liaison for Newbridge in 1992. He sits as Canada's representative on the World Bank's Water Sanitation Program Advisory Council as well as sitting on the Cleantech Advisory Board for Foreign Affairs Canada. He was Chairman of the Ottawa Community Loan Foundation, Board of Governor for Carleton University. He served as the President of the Nepean Skating Club and past-President of the Carleton University Students Association. He holds Bachelors of Public Administration from Carleton University (1986-1992).

CEO Compensation

Bruce's compensation has increased whilst company is loss making.
Bruce's remuneration is lower than average for companies of similar size in Canada.

Management Team Tenure

Average tenure of the Canopy Growth management team in years:

1.3

Average Tenure

The average tenure for the Canopy Growth management team is less than 2 years, this suggests a new team.

Management Team

Bruce Linton

1.4 yrs

Ann Gordon

TITLE

Vice President of Corporate Finance

Peter Popplewell

0.4

Average Tenure

56.5

Average Age

The average tenure for the Canopy Growth board of directors is less than 3 years, this suggests a new board.

Board of Directors

Marc Wayne

TITLE

Founding President & Director of Canopy Health Innovations

COMPENSATION

CA$331K

AGE

52

TENURE

2.3 yrs

Peter Stringham

0.4 yrs

Who owns this company?

Recent Insider Trading

No 3 month insider trading information.

Recent Insider Transactions

Announced	Type	Name	Entity	Start	End	Shares	Max Price (CA$)	Value (CA$)
13. Dec 18	Buy	David Bigioni	Individual	12. Dec 18	12. Dec 18	252	CA$42.82	CA$10,791
11. Dec 18	Buy	David Bigioni	Individual	10. Dec 18	10. Dec 18	3,600	CA$41.99	CA$151,164
11. Dec 18	Sell	Robert Hanson	Individual	06. Dec 18	06. Dec 18	-5	CA$29.85	CA$-149
03. Oct 18	Sell	Murray Goldman	Individual	28. Sep 18	28. Sep 18	-70,000	CA$64.28	CA$-4,499,600
03. Oct 18	Sell	Mark Anthony Zekulin	Individual	27. Sep 18	27. Sep 18	-358,334	CA$64.70	CA$-23,182,562
02. Oct 18	Sell	Murray Goldman	Individual	28. Sep 18	28. Sep 18	-300,000	CA$65.74	CA$-19,532,431
02. Oct 18	Sell	HBAM Holdings Inc	Company	27. Sep 18	27. Sep 18	-307,845	CA$64.66	CA$-19,900,788
02. Oct 18	Sell	Onbelay Capital Inc.	Company	27. Sep 18	27. Sep 18	-48,683	CA$64.07	CA$-3,119,120
02. Oct 18	Sell	John Bell	Individual	27. Sep 18	27. Sep 18	-36,350	CA$64.43	CA$-2,342,030
29. Sep 18	Sell	Christopher Schnarr	Individual	27. Sep 18	27. Sep 18	-107,868	CA$65.44	CA$-7,058,882
04. Jul 18	Sell	Murray Goldman	Individual	29. Jun 18	29. Jun 18	-100,000	CA$38.63	CA$-3,823,062

Management checks

We assess Canopy Growth's management by checking for:

Is the CEO's compensation unreasonable compared to market cap? (1 check)
Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
Is the average tenure of the management team less than 2 years? (1 check)
Is the average tenure of the board of directors team less than 3 years? (1 check)

Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

WEED News

Simply Wall St News

Should You Be Worried About Insider Transactions At Canopy Growth Corporation (TSE:WEED)?

So we'll take a look at whether insiders have been buying or selling shares in Canopy Growth Corporation (TSE:WEED). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … The Last 12 Months Of Insider Transactions At Canopy Growth.

Simply Wall St - 2 weeks ago – Full article

Canopy Growth Corporation (TSE:WEED): When Will It Breakeven?

Canopy Growth Corporation's (TSE:WEED):. … Canopy Growth Corporation, together with its subsidiaries, engages in growing, possession, and sale of medical cannabis in Canada. … In this article, I will touch on the expectations for WEED’s growth and when analysts expect the company to become profitable

Simply Wall St - 1 month ago – Full article

Is Canopy Growth Corporation (TSE:WEED) A Financially Strong Company?

With a market capitalization of CA$20b, Canopy Growth Corporation (TSE:WEED) is a large-cap stock, which is considered by most investors as a safe bet. … Common characteristics for these big stocks are their strong balance sheet and high liquidity, which means there's plenty of stocks available to the public for trading. … These companies are resilient in times of low liquidity and are not as strongly impacted by interest rate hikes as companies with lots of debt.

Simply Wall St - 2 months ago – Full article

What Kind Of Shareholders Own Canopy Growth Corporation (TSE:WEED)?

Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … We also tend to see lower insider ownership in companies that were previously publicly owned. … Companies of this size are usually well known to retail investors, too.

Simply Wall St - 2 months ago – Full article

What You Must Know About Canopy Growth Corporation's (TSE:WEED) Financial Health

Mid-caps stocks, like Canopy Growth Corporation (TSE:WEED) with a market capitalization of CA$8.32b, aren’t the focus of most investors who prefer to direct their investments towards either large-cap or small-cap stocks. … Today we will look at WEED’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Check out our latest analysis for Canopy Growth

Simply Wall St - 9 months ago – Full article

Canopy Growth Corporation's (TSE:WEED) Path To Profitability

I’ve put together a brief outline of industry analyst expectations for WEED, its year of breakeven and its implied growth rate. … View our latest analysis for Canopy Growth According to the industry analysts covering WEED, breakeven is near. … How fast will WEED have to grow each year in order to reach the breakeven point by 2020?