TSX:WEED

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Executive Summary

Canopy Growth Corporation, together with its subsidiaries, engages in the production, distribution, and sale of cannabis for recreational and medical purposes primarily in Canada, the United States, Germany, and the United Kingdom. More Details


Snowflake Analysis

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

Stable Share Price: WEED is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: WEED's weekly volatility (10%) has been stable over the past year.


Market Performance


7 Day Return

4.4%

WEED

6.2%

CA Pharmaceuticals

0.04%

CA Market


1 Year Return

50.1%

WEED

29.3%

CA Pharmaceuticals

1.3%

CA Market

Return vs Industry: WEED exceeded the Canadian Pharmaceuticals industry which returned 18.9% over the past year.

Return vs Market: WEED exceeded the Canadian Market which returned 0.7% over the past year.


Shareholder returns

WEEDIndustryMarket
7 Day4.4%6.2%0.04%
30 Day31.2%27.6%10.9%
90 Day68.8%48.3%7.2%
1 Year50.1%50.1%29.3%29.3%5.0%1.3%
3 Year98.6%98.6%-27.2%-28.2%13.5%2.4%
5 Year1,199.6%1,199.6%274.2%271.5%54.2%30.5%

Long-Term 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?

24.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WEED (CA$36.39) is trading below our estimate of fair value (CA$47.91)

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 CA 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 (2.8x) compared to the CA Pharmaceuticals industry average (1.7x).


Next Steps

Future Growth

How is Canopy Growth forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

44.0%

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 (1.7%).

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 (34.4% per year) is forecast to grow faster than the Canadian market (6.2% per year).

High Growth Revenue: WEED's revenue (34.4% 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.


Next Steps

Past Performance

How has Canopy Growth performed over the past 5 years?

-73.6%

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 73.6% 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 (-45%).


Return on Equity

High ROE: WEED has a negative Return on Equity (-32.23%), 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$2.3B) exceed its short term liabilities (CA$324.5M).

Long Term Liabilities: WEED's short term assets (CA$2.3B) exceed its long term liabilities (CA$1.1B).


Debt to Equity History and Analysis

Debt Level: WEED's debt to equity ratio (10.4%) is considered satisfactory.

Reducing Debt: WEED's debt to equity ratio has increased from 5.2% to 10.4% 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: 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 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?

1.5yrs

Average management tenure


CEO

David Klein (56 yo)

0.92

Tenure

CA$34,539,206

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 ($USD48.96M) is above average for companies of similar size in the Canadian market ($USD7.04M).

Compensation vs Earnings: Insufficient data to compare David's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
David Klein
CEO & Director0.92yrCA$34.54mno data
Rade Kovacevic
President & Chief Product Officer1.42yrsCA$3.16m0.040%
CA$ 5.1m
Michael Lee
Executive VP & CFO1.5yrsCA$2.16m0.040%
CA$ 5.2m
Thomas Stewart
VP & Chief Accounting Officerno dataCA$1.92m0.0074%
CA$ 949.7k
Phillip Shaer
Chief Legal Officerno dataCA$719.29k0.0089%
CA$ 1.2m
Timothy Saunders
Strategic Advisor1.5yrsCA$2.16m0.12%
CA$ 15.8m
Andrew MacCorquodale
Interim COO & VP of Operations Transformation0.50yrno datano data
Thomas Shipley
Senior VP of Quality Assurance & Chief Science Officer2.25yrsno data0%
CA$ 0
Holly Lukavsky
Chief Human Resources Officerno datano datano data
Jason Green
Head of Agriculture - Hemp Divisionno datano datano data
Mark Ware
Chief Medical Officer2.42yrsno datano data
Hilary Black
Chief Advocacy Officer1.83yrsno datano data

1.5yrs

Average Tenure

46yo

Average Age

Experienced Management: WEED's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
David Klein
CEO & Director0.92yrCA$34.54mno data
David Lazzarato
Independent Director0.75yrCA$105.65k0.00022%
CA$ 28.3k
William Newlands
Independent Director2.08yrsno datano data
Robert Hanson
Independent Director2.08yrsCA$20.05k0.00090%
CA$ 115.7k
Judy Schmeling
Independent Chairman0.92yrCA$323.02k0.0030%
CA$ 389.4k
James Sabia
Director0.25yrno data0.00040%
CA$ 51.4k
Theresa Yanofsky
Independent Director0.75yrCA$105.65k0.0015%
CA$ 188.9k

0.9yrs

Average Tenure

60yo

Average Age

Experienced Board: WEED's board of directors are not considered experienced ( 0.9 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: WEED insiders have only sold shares 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 6.8%.


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$12.851b
  • Shares outstanding: 372.28m
  • 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
CGCNasdaqGS (Nasdaq Global Select)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 the production, distribution, and sale of cannabis for recreational and medical purposes primarily in Canada, the United States, German...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 23:11
End of Day Share Price2020/12/02 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.