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Aurora Cannabis Inc ACB

Morningstar Rating
$6.81 +0.39 (6.07%)
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Company Report

Cannabis Shares Rally (Again) on Next Incremental Step to Federal Rescheduling

Shares of Canadian-licensed producers and US multistate operators rallied massively on news that the US Drug Enforcement Administration will proceed with rescheduling cannabis to Schedule III from Schedule I. Schedule I indicates it is considered to have a high potential for abuse and no medical value. In comparison, Schedule III drugs are considered less dangerous, with a lower potential for abuse and having some medical value. We view the April 30 news as the next step in a long process by the Biden administration to relax the current federal prohibition. We view the market reaction as a reflection of how much pressure these stocks have faced rather than any new development.

Price vs Fair Value

ACB is trading within a range we consider fairly valued.
Price
$6.42
Fair Value
$73.70
Uncertainty
Extreme
1-Star Price
$66.00
5-Star Price
$8.58
Economic Moat
Lqj
Capital Allocation
Fwk

Bulls Say, Bears Say

Bulls

Aurora is now generating consistent positive adjusted EBITDA, so free cash flow is eventual. The need for dilutive share issuances should fall.

Bears

Aurora has repeatedly issued equity at a massive discount to our fair value estimate, diluting existing shareholders and destroying value. There's a risk it'll do it again.

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News

Trading Information

Previous Close Price
$6.42
Day Range
$6.286.95
52-Week Range
$2.8411.50
Bid/Ask
$6.84 / $6.84
Market Cap
$371.41 Mil
Volume/Avg
4.9 Mil / 7.5 Mil

Key Statistics

Price/Earnings (Normalized)
Price/Sales
1.14
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

Aurora Cannabis, headquartered in Edmonton, Canada, cultivates and sells medicinal and recreational cannabis through a portfolio of brands that includes Drift, San Rafael '71, Daily Special, Whistler, Being, and Greybeard. Although the company primarily operates in Canada, it has expanded internationally through medical cannabis exporting agreements.
Sector
Healthcare
Industry
Drug Manufacturers - Specialty & Generic
Stock Style Box
Small Value
Total Number of Employees
1,130

Competitors

Valuation

Metric
ACB
TLRY
CRON
Price/Earnings (Normalized)
Price/Book Value
0.780.450.99
Price/Sales
1.141.8912.45
Price/Cash Flow
Price/Earnings
ACB
TLRY
CRON

Financial Strength

Metric
ACB
TLRY
CRON
Quick Ratio
1.790.9621.68
Current Ratio
3.791.9222.54
Interest Coverage
−4.39
Quick Ratio
ACB
TLRY
CRON

Profitability

Metric
ACB
TLRY
CRON
Return on Assets (Normalized)
−1.42%−0.53%
Return on Equity (Normalized)
−1.82%−0.55%
Return on Invested Capital (Normalized)
−0.92%−4.90%
Return on Assets
ACB
TLRY
CRON
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