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Cann Group Ltd. (AU:CAN)
:CAN
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Cann Group (CAN) AI Stock Analysis

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AU:CAN

Cann Group

(OTC:CAN)

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Underperform 39 (OpenAI - 4o)
Rating:39Underperform
Price Target:
AU$0.00
▼(-100.00% Downside)
Cann Group's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues, substantial losses, and negative equity. Technical analysis also indicates weak momentum, and the valuation is unattractive due to a negative P/E ratio and lack of dividends. These factors collectively result in a low overall stock score.

Cann Group (CAN) vs. iShares MSCI Australia ETF (EWA)

Cann Group Business Overview & Revenue Model

Company DescriptionCann Group Limited (ASX: CAN) is an Australian biotechnology company specializing in the cultivation, production, and distribution of cannabis-based products for both medicinal and research purposes. The company operates in the cannabis sector, focusing on developing high-quality pharmaceutical-grade cannabis products. Cann Group is engaged in the entire supply chain, from cultivation and manufacturing to product distribution, and aims to meet the growing demand for legal cannabis products in Australia and international markets.
How the Company Makes MoneyCann Group generates revenue through multiple key streams, primarily from the sale of medicinal cannabis products to patients and healthcare providers. The company has established a cultivation facility that allows it to produce high-quality cannabis plants, which are then processed into oils, capsules, and other forms of medication. In addition to direct sales, Cann Group also engages in research partnerships and collaborations with academic institutions and pharmaceutical companies to develop new cannabis applications and products, providing an additional revenue source. Securing licenses for cultivation and manufacturing, along with strategic partnerships and expanding distribution channels, further contributes to its financial growth.

Cann Group Financial Statement Overview

Summary
Cann Group Ltd. has shown revenue growth but faces significant profitability and leverage challenges. The high debt-to-equity ratio and continuous losses indicate a need for operational and financial restructuring.
Income Statement
25
Negative
Cann Group Ltd. shows a consistent increase in revenue over the years, with a notable jump from 2022 to 2023, reflecting a revenue growth of 11.58%. However, the company is struggling with negative margins, including a gross profit margin of 20.78% and a significant net loss margin of -333.33% in 2024. The EBIT and EBITDA margins are also negative, indicating operational inefficiencies.
Balance Sheet
20
Very Negative
The balance sheet reveals a high debt-to-equity ratio of 5.21, indicating heavy reliance on debt financing, which can be risky. The equity ratio has decreased significantly over the years to 15.01% in 2024. Additionally, negative return on equity highlights the lack of profitability from shareholders' investments.
Cash Flow
30
Negative
Cash flow analysis shows a negative free cash flow, though it improved from -25.94 million in 2023 to -17.69 million in 2024. The operating cash flow to net income ratio is negative, reflecting challenges in converting revenue to cash. The financing cash flow remains positive, suggesting dependency on external financing.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue15.51M13.25M15.37M13.78M6.41M4.29M
Gross Profit-3.96M5.15M-21.75M20.63M11.24M4.25M
EBITDA-9.43M-8.94M-35.54M-24.63M-19.79M-22.55M
Net Income-47.60M-22.34M-51.24M-33.79M-26.47M-25.10M
Balance Sheet
Total Assets84.97M78.79M92.77M129.47M139.66M101.79M
Cash, Cash Equivalents and Short-Term Investments60.00K10.00K1.64M765.00K1.91M3.10M
Total Debt72.36M75.84M72.47M60.97M47.16M680.00K
Total Liabilities78.65M81.56M78.85M70.20M54.76M9.92M
Stockholders Equity6.32M-2.77M13.92M59.26M84.90M91.87M
Cash Flow
Free Cash Flow-13.90M-9.80M-17.69M-25.94M-65.60M-37.10M
Operating Cash Flow-13.65M-9.64M-15.19M-22.84M-20.43M-20.83M
Investing Cash Flow3.43M-157.00K1.18M-28.00K-45.16M-17.08M
Financing Cash Flow8.53M8.17M14.77M21.71M64.41M39.47M

Cann Group Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.01
Price Trends
50DMA
0.01
Negative
100DMA
0.01
Negative
200DMA
0.02
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
43.55
Neutral
STOCH
<0.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CAN, the sentiment is Negative. The current price of 0.01 is below the 20-day moving average (MA) of 0.01, below the 50-day MA of 0.01, and below the 200-day MA of 0.02, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.55 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:CAN.

Cann Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AU$44.40M12.417.64%3.03%0.13%-12.90%
$7.86B-0.30-43.30%2.27%22.53%-2.21%
AU$21.04M-1.41-47.30%82.53%
AU$9.15M-401.36%-26.49%61.72%
AU$4.26M16.0069.59%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:CAN
Cann Group
0.01
-0.03
-67.50%
AU:EPN
Epsilon Healthcare Limited
0.02
0.00
0.00%
AU:LGP
Little Green Pharma Ltd.
0.14
0.00
0.00%
AU:BOD
Bod Australia Ltd
0.02
0.00
0.00%
AU:AGH
Althea Group Holdings Ltd.
0.02
-0.02
-50.00%
AU:VIT
Cronos Australia Ltd.
0.07
-0.03
-30.00%

Cann Group Corporate Events

Cann Group Limited Announces Capital Raising to Boost Growth
Oct 27, 2025

Cann Group Limited has announced a capital raising initiative through the offer of new ordinary shares and options to sophisticated and professional investors. This move is aimed at strengthening the company’s financial position and supporting its growth strategy in the medicinal cannabis sector. The capital raising is expected to have a significant impact on Cann Group’s operations by providing the necessary funds to expand its market presence and enhance its industry positioning.

Cann Group Limited Announces Proposed Securities Issue to Boost Growth
Oct 27, 2025

Cann Group Limited has announced a proposed issue of securities, including options and ordinary shares, as part of a securities purchase plan and placement. This move aims to raise capital, potentially strengthening the company’s financial position and supporting its growth initiatives in the medicinal cannabis sector.

Cann Group Announces Major Debt Restructuring and Capital Raise
Oct 27, 2025

Cann Group Limited has announced a significant restructuring of its debt and a capital raise, which includes a major debt forgiveness agreement with National Australia Bank, reducing its outstanding loan balance by 81%. The company has also secured a new loan from an existing lender and commitments for a $9 million capital raise through institutional placement and a share purchase plan. This financial restructuring is expected to improve Cann Group’s financial stability and market position, with projected revenue growth and a reduction in EBITDA losses by FY26.

Cann Group Initiates Trading Halt for Debt Restructuring Announcement
Oct 23, 2025

Cann Group Limited has requested a trading halt on its securities pending an announcement related to its debt restructuring and capital raising activities. This move is intended to help the company manage its continuous disclosure obligations and is expected to have implications for its financial strategy and market positioning.

Cann Group Secures Short-Term Extension on NAB Debt Facilities
Oct 14, 2025

Cann Group Limited has announced a short-term extension of its debt facilities with National Australia Bank, moving the expiry date from 15 October 2025 to 31 October 2025. This extension allows the company additional time to engage in refinancing discussions and evaluate options that align with its long-term financial strategy, potentially impacting its operational stability and financial planning.

Cann Group Limited Releases 2025 Corporate Governance Statement
Sep 26, 2025

Cann Group Limited has released its corporate governance statement for the financial year ending June 30, 2025, which is available on their website. The statement, approved by the board, outlines the company’s adherence to ASX Corporate Governance Council’s principles and recommendations. This announcement underscores Cann Group’s commitment to transparency and accountability, potentially strengthening its position in the market and providing reassurance to stakeholders regarding its governance practices.

Cann Group Limited Announces New Securities Issuance
Sep 26, 2025

Cann Group Limited has announced a new issuance of 28,414,222 ordinary fully paid securities, which will be quoted on the Australian Securities Exchange (ASX) as of September 26, 2025. This move is part of the company’s strategic efforts to enhance its capital structure and support its ongoing operations and growth initiatives in the medicinal cannabis sector.

Cann Group Limited Announces Quotation of New Securities on ASX
Sep 25, 2025

Cann Group Limited has announced the quotation of 11,546,780 fully paid ordinary securities on the Australian Securities Exchange (ASX) as of September 25, 2025. This move is part of the company’s strategy to enhance its capital structure and potentially increase its market presence, which could have implications for its operations and stakeholders by providing additional resources for growth and development.

Cann Group Achieves Positive EBITDA and Expands Product Portfolio
Sep 25, 2025

Cann Group Limited announced a positive EBITDA for August 2025, marking a significant milestone since the commissioning of its Mildura facility in 2022. The company’s growth is driven by strong B2B flower sales, expansion of its Botanitech product range, and increasing export opportunities, particularly in Europe. Cann is also enhancing its product portfolio with new offerings and has secured additional R&D funding, while progressing its refinancing initiatives to support future growth.

Cann Group Receives Non-Waiver Letter from NAB Over Unpaid Fees
Sep 8, 2025

Cann Group Limited has received a Letter of Non-Waiver from National Australia Bank regarding its non-payment of interest and facility fees totaling $1,378,152, which were due in late August 2025. While NAB reserves its rights, it has decided not to take any action at this time. Cann Group is actively engaging with NAB and other financiers to address its financing arrangements and plans to update the market by the end of September 2025.

Cann Group Limited Announces New Securities Quotation
Sep 3, 2025

Cann Group Limited has announced the issuance of 12,306,575 ordinary fully paid securities, which are set to be quoted on the Australian Securities Exchange (ASX) as of September 3, 2025. This move reflects the company’s strategic efforts to enhance its capital structure and potentially expand its market presence, offering stakeholders an opportunity to engage with its growth trajectory.

Cann Group Reports FY25 Growth in Dried Flower Sales and Cost Reductions
Aug 29, 2025

Cann Group Limited reported its FY25 financial results, highlighting a significant increase in dried flower production and a 100% growth in revenue from its Botanitech brand. The company successfully reduced operating expenses by 35%, resulting in improved EBITDA and a reduced loss after tax. The strategic shift towards dried flower products and cost management has positioned Cann Group to be more competitive in the market as it enters FY26 with a focus on maximizing revenue and achieving an EBITDA-positive outcome.

Cann Group Limited Reports Improved Financial Performance Amid Market Shifts
Aug 29, 2025

Cann Group Limited reported a significant reduction in its net loss for the year ended 30 June 2025, with a 56% improvement compared to the previous year. This improvement is attributed to effective cost management, resulting in a 35% reduction in operating expenses. Despite a 27% decline in sales revenue due to a shift in product mix from oils to dried flowers, the company saw a 30% increase in dried flower tonnage sold and a 17% increase in sales for its Botanitech brand. The financial results indicate a positive trajectory for Cann Group as it continues to adapt to market changes and improve its operational efficiency.

Cann Group Reports Record Production and Sales Growth in Q4 2025
Jul 31, 2025

Cann Group Limited reported a record production of 2.05 tonnes of dried flower in Q4 2025, marking a 41% increase from the previous quarter and contributing to a full-year production of 5.94 tonnes. The company achieved an 8% increase in sales, reaching $2.51 million for the quarter, and improved its net operating cash outflows by 13% compared to the prior quarter. With new debt and equity funding secured, Cann Group is poised for continued growth, focusing on restructuring its balance sheet and maximizing revenue as it enters FY2026.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 28, 2025