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
|Historical stock prices|
|Current Share Price||CA$1.16|
|52 Week High||CA$8.69|
|52 Week Low||CA$1.12|
|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
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
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
|ACB||US Pharmaceuticals||US Market|
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.
|ACB Average Weekly Movement||13.6%|
|Pharmaceuticals Industry Average Movement||11.3%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.7%|
|10% least volatile stocks in US Market||2.8%|
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
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
|ACB fundamental statistics|
Is ACB overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|ACB income statement (TTM)|
|Cost of Revenue||CA$200.11m|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||-5.72|
|Net Profit Margin||-776.02%|
How did ACB perform over the long term?See historical performance and comparison
Is ACB undervalued compared to its fair value, analyst forecasts and its price relative to the market?
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
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.
|What is ACB's n/a Ratio?|
Price to Sales Ratio vs Peers
How does ACB's PS Ratio compare to its peers?
|ACB PS Ratio vs Peers|
|Company||PS||Estimated Growth||Market Cap|
TARS Tarsus Pharmaceuticals
AMYT Amryt Pharma
ESPR Esperion Therapeutics
ACB Aurora Cannabis
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.
|Current PS Ratio||2.2x|
|Fair PS Ratio||3.5x|
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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How is Aurora Cannabis forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
Future Growth Score1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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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How has Aurora Cannabis performed over the past 5 years?
Past Performance Score0/6
Past Performance Score 0/6
Growing Profit Margin
Earnings vs Industry
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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How is Aurora Cannabis's financial position?
Financial Health Score4/6
Financial Health Score 4/6
Short Term Liabilities
Long Term Liabilities
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.
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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What is Aurora Cannabis's current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
Dividend Yield vs Market
|Aurora Cannabis Dividend Yield vs Market|
|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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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Miguel Martin (50 yo)
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|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||n/a||n/a|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||CA$4m||CA$694k|
Compensation vs Market: Miguel's total compensation ($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.
Experienced Management: ACB's management team is considered experienced (3.1 years average tenure).
Experienced Board: ACB's board of directors are considered experienced (3.6 years average tenure).
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
|08 Jun 22||BuyUS$97,938||Miguel Martin||Individual||60,956||US$1.61|
|07 Jun 22||BuyUS$77,671||Ronald Funk||Individual||50,000||US$1.55|
|07 Jun 22||BuyUS$4,345||Nathalie Clark||Individual||2,700||US$1.61|
|07 Jun 22||BuyUS$59,738||Glen Ibbott||Individual||38,262||US$1.56|
|31 May 22||BuyUS$66,359||Chitwant Kohli||Individual||40,000||US$1.66|
|03 Dec 21||SellUS$1,406||Norma Beauchamp||Individual||230||US$6.11|
|Owner Type||Number of Shares||Ownership Percentage|
Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 51.7%.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Aurora Cannabis Inc.'s employee growth, exchange listings and data sources
- 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
- Aurora Cannabis Inc.
- 500 - 10355 Jasper Avenue
- T5J 1Y6
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|21P1||DB (Deutsche Boerse AG)||Yes||Common Shares||DE||EUR||Dec 2014|
|ACB||NasdaqGS (Nasdaq Global Select)||Yes||Common Shares||US||USD||Dec 2014|
|ACB||TSX (The Toronto Stock Exchange)||Yes||Common Shares||CA||CAD||Dec 2014|
|21P1||BUL (Bulgaria Stock Exchange)||Yes||Common Shares||BG||EUR||Dec 2014|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/26 00:00|
|End of Day Share Price||2022/09/26 00:00|
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.