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ACB

Aurora Cannabis NasdaqGS:ACB Stock Report

Last Price

US$1.16

Market Cap

US$348.5m

7D

-21.1%

1Y

-81.8%

Updated

26 Sep, 2022

Data

Company Financials +
ACB fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance0/6
Financial Health4/6
Dividends0/6

ACB Stock Overview

Aurora Cannabis Inc., together with its subsidiaries, produces, distributes, and sells cannabis and cannabis-derivative products in Canada and internationally.

Aurora Cannabis Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Aurora Cannabis
Historical stock prices
Current Share PriceCA$1.16
52 Week HighCA$8.69
52 Week LowCA$1.12
Beta2.99
1 Month Change-24.68%
3 Month Change-22.15%
1 Year Change-81.83%
3 Year Change-97.80%
5 Year Change-95.76%
Change since IPO-69.12%

Recent News & Updates

Sep 19

Aurora Cannabis Q4 2022 Earnings Preview

Aurora Cannabis (NASDAQ:ACB) is scheduled to announce Q4 earnings results on Monday, September 19th, before market open. The consensus EPS Estimate is -$0.12 and the consensus Revenue Estimate is $38.16M Over the last 3 months, EPS estimates have seen 1 upward revision and 0 downward. Revenue estimates have seen 0 upward revisions and 3 downward.  In Q3,  the company boosted it target for annual expenses to C$150M-C$170M by 1H 2023, up from C$60M-$C-80M before. Last quarter, the company saw its Q3 2022 EBITDA net loss narrow 41% to C$12.3M compared to the prior-year period despite a decrease in net revenue. Also Read- Non-medical cannabis sales rose 21% YTD in Canada - Cantor

Aug 25

Aurora Cannabis: Don't Let Your Money Go Up In Smoke

Summary Aurora Cannabis has been dead money for years, and the trend is bound to continue. Company is bleeding cash and there's no immediate solution in sight for the impending liquidity problems. We are not happy with the recent acquisition given the declining fundamentals. Expected political changes will provide no catalyst for the stock going forward. Thesis With the recent acquisition, Aurora Cannabis (ACB) is even more of a stock for investors to avoid. The company has historically reported poor financial results despite major acquisitions, and the company is burning through cash rapidly as loan commitments are coming due. We believe that liquidity issues and an unfavorable political environment in the United States will continue to drive this stock price lower over the coming years. Company Overview Aurora Cannabis is a cannabis growing company based in Edmonton, Canada. Aurora operates a network of subsidiaries related to the cannabis industry, and the company owns numerous brands, such as San Rafael '71, Daily Special, CanniMed, Whistler Cannabis Co., and more. These brands create cannabis products for consumer and medical consumption. The stock has had abysmal return for investors, and the stock trades at around $1.675 compared to its historic high above $120 per share only a few years ago. The company now has a valuation of less than $500 million CAD. ACB data by YCharts Abysmal Performance and Returns Aurora Cannabis has had poor financial performance in line with the poor stock price performance in the same time frame. The company is still down ~80% from its 52-week high of $8.69 and the stock price is correlated with the revenue decline. For a growth stock name, the company has actually seen its revenue decline over the past few years, even as the company aggressively acquired competitors. For the recent quarter, revenue has declined 9% YoY and has declined 17% QoQ. In addition, the company has reported a loss of $1 billion CAD in the recent quarter, and according to a report, the recent quarter increased the cumulative net losses of the company to roughly $5.3 billion CAD since 2015. These losses are astronomical, given that the cumulative losses are now 10x the current market capitalization of the company. The poor financial performance should immediately be a red flag to investors, and we believe that there is no immediate catalyst to turn this stock around anytime soon. ACB data by YCharts Liquidity Issues For a company with such large losses, it is not hard to find that the company is exposed to major liquidity issues. In the most recent FY 2021 financial report, the company outlines that ~$494 million CAD are liabilities that are payable between one and three years. In that same time frame, the company reported that there's $332.4 million CAD in cash and cash equivalents, which is substantially below the pending commitments in the next few years. Given the liabilities and the negative earnings, liquidity is risk of the utmost issue, and it is unclear how management plans to navigate through this problem. ACB FY 2021 We believe given management's history, we find it likely that the management will continue to keep the business afloat through dilutive actions and tapping into the debt markets, which will only further add debt to the unprofitable business. As seen below, the diluted shares outstanding for ACB has soared as a result of various acquisitions and financing needs. Just recently, the company announced a major acquisition at a price tag of ~$45 million CAD in cash. Regardless of the potential synergies through the acquisition, we find that the cash burn in addition to constant acquisitions are not recipes for success when the company's fundamentals continue to decline. We don't see that this trend will stop any time soon, and we believe that the company should be avoided at all costs as a result of its frivolous spend and impending liquidity crunch. ACB Average Diluted Shares Outstanding (Annual) data by YCharts Upcoming Political Headwinds

Shareholder Returns

ACBUS PharmaceuticalsUS Market
7D-21.1%-1.7%-6.9%
1Y-81.8%3.0%-23.7%

Return vs Industry: ACB underperformed the US Pharmaceuticals industry which returned 2.9% over the past year.

Return vs Market: ACB underperformed the US Market which returned -23% over the past year.

Price Volatility

Is ACB's price volatile compared to industry and market?
ACB volatility
ACB Average Weekly Movement13.6%
Pharmaceuticals Industry Average Movement11.3%
Market Average Movement6.9%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: ACB is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: ACB's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
n/a1,338Miguel Martinhttps://www.auroramj.com

Aurora Cannabis Inc., together with its subsidiaries, produces, distributes, and sells cannabis and cannabis-derivative products in Canada and internationally. The company produces, distributes, and sells medical and consumer cannabis products in Canada. It is also involved in the distribution of wholesale medical cannabis in the European Union (EU); distribution of wholesale medical cannabis in various international markets, including Australia, Caribbeans, South America, and Israel; and distribution and sale of hemp-derived cannabidiol (CBD) products in the United States (U.S.) market.

Aurora Cannabis Fundamentals Summary

How do Aurora Cannabis's earnings and revenue compare to its market cap?
ACB fundamental statistics
Market CapUS$348.51m
Earnings (TTM)-US$1.25b
Revenue (TTM)US$161.50m

2.2x

P/S Ratio

-0.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ACB income statement (TTM)
RevenueCA$221.34m
Cost of RevenueCA$200.11m
Gross ProfitCA$21.23m
Other ExpensesCA$1.74b
Earnings-CA$1.72b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-5.72
Gross Margin9.59%
Net Profit Margin-776.02%
Debt/Equity Ratio34.2%

How did ACB perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is ACB undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ACB?

Other financial metrics that can be useful for relative valuation.

ACB key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.4x
Enterprise Value/EBITDA-2.1x
PEG Ration/a

Price to Sales Ratio vs Peers

How does ACB's PS Ratio compare to its peers?

ACB PS Ratio vs Peers
The above table shows the PS ratio for ACB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average8.8x
TARS Tarsus Pharmaceuticals
24.9x67.2%US$432.7m
AMYT Amryt Pharma
1.8x21.7%US$436.4m
BTMD biote
1.9x13.7%US$285.2m
ESPR Esperion Therapeutics
6.7x48.9%US$452.6m
ACB Aurora Cannabis
2.2x14.9%US$477.6m

Price-To-Sales vs Peers: ACB is good value based on its Price-To-Sales Ratio (2.2x) compared to the peer average (8.8x).


Price to Earnings Ratio vs Industry

How does ACB's PE Ratio compare vs other companies in the US Pharmaceuticals Industry?

Price-To-Sales vs Industry: ACB is good value based on its Price-To-Sales Ratio (2.2x) compared to the US Pharmaceuticals industry average (2.8x)


Price to Sales Ratio vs Fair Ratio

What is ACB's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ACB PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.2x
Fair PS Ratio3.5x

Price-To-Sales vs Fair Ratio: ACB is good value based on its Price-To-Sales Ratio (2.2x) compared to the estimated Fair Price-To-Sales Ratio (3.5x).


Share Price vs Fair Value

What is the Fair Price of ACB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ACB ($1.16) is trading below our estimate of fair value ($4.42)

Significantly Below Fair Value: ACB is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Aurora Cannabis forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


126.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: ACB's revenue (14.9% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: ACB's revenue (14.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ACB is forecast to be unprofitable in 3 years.


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Past Performance

How has Aurora Cannabis performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-42.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ACB is currently unprofitable.

Growing Profit Margin: ACB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ACB is unprofitable, and losses have increased over the past 5 years at a rate of 42.6% per year.

Accelerating Growth: Unable to compare ACB's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ACB is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (5%).


Return on Equity

High ROE: ACB has a negative Return on Equity (-259.37%), as it is currently unprofitable.


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Financial Health

How is Aurora Cannabis's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: ACB's short term assets (CA$745.1M) exceed its short term liabilities (CA$145.2M).

Long Term Liabilities: ACB's short term assets (CA$745.1M) exceed its long term liabilities (CA$276.8M).


Debt to Equity History and Analysis

Debt Level: ACB has more cash than its total debt.

Reducing Debt: ACB's debt to equity ratio has increased from 29% to 34.2% 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: ACB has sufficient cash runway for more than 3 years based on its current free cash flow.

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


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Dividend

What is Aurora Cannabis's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Aurora Cannabis Dividend Yield vs Market
How does Aurora Cannabis dividend yield compare to the market?
SegmentDividend Yield
Company (Aurora Cannabis)n/a
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Pharmaceuticals)2.6%
Analyst forecast in 3 Years (Aurora Cannabis)n/a

Notable Dividend: Unable to evaluate ACB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ACB'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 ACB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ACB's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ACB has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average management tenure


CEO

Miguel Martin (50 yo)

2yrs

Tenure

CA$4,348,794

Compensation

Mr. Miguel Martin has been Chief Executive Officer at Aurora Cannabis Inc. since September 08, 2020 and has been its Director since July 2020 and served as its Chief Commercial Officer since July 06, 2020...


CEO Compensation Analysis

Miguel Martin's Compensation vs Aurora Cannabis Earnings
How has Miguel Martin's remuneration changed compared to Aurora Cannabis's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

-CA$2b

Mar 31 2022n/an/a

-CA$1b

Dec 31 2021n/an/a

-CA$381m

Sep 30 2021n/an/a

-CA$607m

Jun 30 2021CA$4mCA$694k

-CA$692m

Compensation vs Market: Miguel's total compensation ($USD3.17M) is about average for companies of similar size in the US market ($USD2.89M).

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


Leadership Team

Experienced Management: ACB's management team is considered experienced (3.1 years average tenure).


Board Members

Experienced Board: ACB's board of directors are considered experienced (3.6 years average tenure).


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

NasdaqGS:ACB Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
08 Jun 22BuyUS$97,938Miguel MartinIndividual60,956US$1.61
07 Jun 22BuyUS$77,671Ronald FunkIndividual50,000US$1.55
07 Jun 22BuyUS$4,345Nathalie ClarkIndividual2,700US$1.61
07 Jun 22BuyUS$59,738Glen IbbottIndividual38,262US$1.56
31 May 22BuyUS$66,359Chitwant KohliIndividual40,000US$1.66
03 Dec 21SellUS$1,406Norma BeauchampIndividual230US$6.11

Ownership Breakdown

What is the ownership structure of ACB?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders341,6590.1%
VC/PE Firms16,500,0005.5%
Institutions51,870,46517.3%
General Public231,678,60977.1%

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 51.7%.


Top Shareholders

Top 25 shareholders own 20.32% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
5.49%
Heights Capital Management, Inc.
16,500,000CA$19.1m0%1.28%
3.5%
ETF Managers Group LLC
10,526,850CA$12.2m6.01%0.36%
2.37%
The Vanguard Group, Inc.
7,118,236CA$8.3m12.17%no data
1.09%
Millennium Management LLC
3,274,509CA$3.8m613.53%0.01%
1.07%
Renaissance Technologies LLC
3,220,384CA$3.7m267.41%no data
0.89%
D. E. Shaw & Co., L.P.
2,664,650CA$3.1m140.38%0.01%
0.84%
Two Sigma Investments, LP
2,515,071CA$2.9m33.95%0.01%
0.79%
Morgan Stanley, Investment Banking and Brokerage Investments
2,385,461CA$2.8m57.45%no data
0.6%
Mirae Asset Global Investments Co., Ltd
1,798,034CA$2.1m11.27%no data
0.37%
BMO Asset Management Corp.
1,124,549CA$1.3m41.36%no data
0.34%
Dimensional Fund Advisors LP
1,021,516CA$1.2m4.13%no data
0.33%
Hudson Bay Capital Management LP
1,000,000CA$1.2m0%0.01%
0.27%
Alyeska Investment Group, L.P.
820,000CA$951.2k0%0.01%
0.27%
Two Sigma Advisers, LP
808,200CA$937.5k-9.73%no data
0.23%
TD Asset Management, Inc.
703,781CA$816.4k24.39%no data
0.23%
JPMorgan Chase & Co, Brokerage and Securities Investments
701,687CA$814.0k89.56%no data
0.23%
Public Sector Pension Investment Board
698,211CA$809.9k46.17%0.01%
0.23%
Swiss National Bank, Asset Management Arm
684,672CA$794.2k45.16%no data
0.22%
Susquehanna International Group, LLP, Asset Management Arm
674,994CA$783.0k-17.79%no data
0.19%
MM Asset Management Inc
557,070CA$646.2k0%0.04%
0.18%
Merlin Capital LLC
525,950CA$610.1k25.31%1.27%
0.16%
Alberta Investment Management Corporation
493,700CA$572.7k426.89%no data
0.15%
Jane Street Group, LLC, Asset Management Arm
446,600CA$518.1k259.29%no data
0.14%
Charles Schwab Investment Management, Inc.
409,063CA$474.5k15.78%no data
0.12%
Goldman Sachs Asset Management, L.P.
359,511CA$417.0k411.32%no data

Company Information

Aurora Cannabis Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Aurora Cannabis Inc.
  • Ticker: ACB
  • Exchange: NasdaqGS
  • Founded: NaN
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Implied Market Cap: CA$477.621m
  • Listing Market Cap: CA$348.507m
  • Shares outstanding: 300.39m
  • Website: https://www.auroramj.com

Number of Employees


Location

  • Aurora Cannabis Inc.
  • 500 - 10355 Jasper Avenue
  • Edmonton
  • Alberta
  • T5J 1Y6
  • Canada


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
21P1DB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2014
ACBNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDDec 2014
ACBTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 2014
21P1BUL (Bulgaria Stock Exchange)YesCommon SharesBGEURDec 2014

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/26 00:00
End of Day Share Price2022/09/26 00:00
Earnings2022/06/30
Annual Earnings2022/06/30


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.