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Canopy Growth Corp WEED

Morningstar Rating
CAD 4.35 −0.09 (2.03%)
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Company Report

Canopy's Financial Performance Improving, but Repeated Dilution Continues to Destroy Value

Canopy Growth grows and sells cannabis products primarily in Canada, which accounts for roughly 60% of sales. Unfortunately, the Canadian market is overloaded with too many licensed producers, leading to tough price competition and a stubbornly robust illicit market, so Canopy has yet to reach profitability. We forecast mid-single-digit growth over the next decade for the Canadian market, driven by the conversion of illicit consumers into the legal market. We expect competition to ease as continued industry losses drive consolidation.

Price vs Fair Value

WEED is trading at a 52% discount.
Price
CAD 4.35
Fair Value
CAD 9.10
Uncertainty
Extreme
1-Star Price
CAD 16.60
5-Star Price
CAD 4.23
Economic Moat
Tvfn
Capital Allocation
Dzdf

Bulls Say, Bears Say

Bulls

Canopy Growth’s plans to create Canopy USA to strengthen its competitive position before U.S. federal legalization.

Bears

While Canopy waits for U.S. federal legalization to enter the THC market there, U.S. multistate operators continue to grow bigger and become more competitive.

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News

Trading Information

Previous Close Price
CAD 4.44
Day Range
CAD 4.284.50
52-Week Range
CAD 4.2831.45
Bid/Ask
CAD 4.34 / CAD 4.35
Market Cap
CAD 396.35 Mil
Volume/Avg
852,455 / 1.2 Mil

Key Statistics

Price/Earnings (Normalized)
Price/Sales
0.95
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

Canopy Growth, headquartered in Smiths Falls, Canada, cultivates and sells medicinal and recreational cannabis, and hemp, through a portfolio of brands that include Doja, 7ACRES, Tweed, and Deep Space. Its non-THC products include skincare products under Martha Stewart CBD and Storz & Bickel vaporizers. Canopy growth is attempting to merge its U.S. assets into a separately operated holding company, Canopy USA, which will not be consolidated into the Canadian company's financials.
Sector
Healthcare
Industry
Drug Manufacturers - Specialty & Generic
Stock Style Box
Small Core
Total Number of Employees
1,621

Competitors

Valuation

Metric
WEED
CRON
ACB
Price/Earnings (Normalized)
Price/Book Value
0.660.700.39
Price/Sales
0.958.820.56
Price/Cash Flow
Price/Earnings
WEED
CRON
ACB

Financial Strength

Metric
WEED
CRON
ACB
Quick Ratio
1.1321.681.79
Current Ratio
1.7922.543.79
Interest Coverage
−9.27
Quick Ratio
WEED
CRON
ACB

Profitability

Metric
WEED
CRON
ACB
Return on Assets (Normalized)
−23.44%−0.53%
Return on Equity (Normalized)
−57.88%−0.55%
Return on Invested Capital (Normalized)
−20.86%−4.90%
Return on Assets
WEED
CRON
ACB
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