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Aurora Cannabis Inc ACB

Morningstar Rating
CAD 9.86 −0.23 (2.28%)
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Company Report

First Pillar of Germany's Cannabis Legalization Begins April 1; Legal Sales to Come Later

The Bundestag, the lower house of Germany’s legislature, passed a cannabis bill last month that would allow possession of up to 25 grams and home-growing of up to three plants. The law will become effective April 1 as planned after the Bundesrat, the upper house, voted not to send it to mediation committee on March 22. The law expands on July 1 to allow nonprofit cannabis grow clubs of up to 500 members and 50 grams per member.

Price vs Fair Value

ACB is trading at a 55% discount.
Price
CAD 10.09
Fair Value
CAD 19.10
Uncertainty
Extreme
1-Star Price
CAD 73.00
5-Star Price
CAD 4.18
Economic Moat
Kvmxk
Capital Allocation
Rcq

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
CAD 10.09
Day Range
CAD 9.6610.25
52-Week Range
CAD 3.8415.50
Bid/Ask
CAD 9.85 / CAD 9.86
Market Cap
CAD 537.21 Mil
Volume/Avg
2.2 Mil / 1.8 Mil

Key Statistics

Price/Earnings (Normalized)
Price/Sales
1.33
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
0.930.420.86
Price/Sales
1.331.7710.79
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)
−13.42%−0.53%
Return on Equity (Normalized)
−17.13%−0.55%
Return on Invested Capital (Normalized)
−14.23%−4.90%
Return on Assets
ACB
TLRY
CRON
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