Cronos Australia Ltd. (VIT) AI Stock Analysis

• Market Cap: AU$43.71M
• Dividend Yield: N/A
• Average Volume (3M): 271.47K
• Price to Earnings (P/E): 19.4
• Beta (1Y): 0.94
• Revenue Growth: 5.76%
• EPS Growth: -79.76%
• Country: AU
• Employees: N/A
• Sector: Healthcare
• Sector Strength: 55
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): <0.01
• Shares Outstanding: 662,254,900
• 10 Day Avg. Volume: 303,673
• 30 Day Avg. Volume: 271,468
• PEG Ratio: 0.21
• Price to Book (P/B): 8.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 32.57
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: ―

Cronos Australia Ltd. presents a mixed picture. The company shows strong revenue growth and a stable balance sheet, which are positive indicators of its financial health. However, challenges with declining profit margins and cash flow generation, combined with a bearish technical outlook, contribute to a cautious view. The stock is fairly valued, but the lack of dividend yield may limit its attractiveness to certain investors.

Cronos Australia Ltd. Business Overview & Revenue Model

Company Description

Vitura Health Limited engages in the sale and distribution of medicinal cannabis products in Australia and Asia. Its brands include CanView, Burleigh Heads Cannabis, CDA Clinics, Cannadoc, and Adaya. The company was formerly known as Cronos Australia Limited and changed its name to Vitura Health Limited in February 2023. The company was incorporated in 2018 and is based in South Yarra, Australia.

How the Company Makes Money

Cronos Australia Ltd. makes money primarily through the sale of its medicinal cannabis products. The company's revenue model involves cultivating cannabis plants, processing them into various forms of therapeutic products, and distributing these products to pharmacies, clinics, and healthcare providers. Key revenue streams include the sale of dried cannabis flowers, oils, and other derivative products designed for patient treatment. The company may also engage in partnerships with healthcare institutions or research organizations to expand its market reach and enhance product development. Factors contributing to its earnings include regulatory approvals, market demand for medicinal cannabis, and strategic partnerships within the healthcare sector.

Cronos Australia Ltd. Financial Statement Overview

Summary

Cronos Australia Ltd. demonstrates robust growth in revenue and maintains a strong balance sheet with prudent financial management. Nevertheless, recent declines in profit margins and cash flow generation may pose challenges. Continued focus on cost management and cash flow improvement will be critical in sustaining its financial health.

Income Statement

Cronos Australia Ltd. has shown significant revenue growth over the years, particularly from 2021 to 2022, indicating strong market demand for its products. The Gross Profit Margin has been improving, suggesting better cost management. However, Net Profit Margin has recently decreased, pointing to increased operational costs or pricing pressures. The EBIT and EBITDA margins have weakened compared to previous years, indicating potential operational inefficiencies.

Balance Sheet

The company maintains a healthy equity position with an improving equity ratio, indicating financial stability. The Debt-to-Equity ratio is manageable, showing conservative leverage practices. Return on Equity has declined recently, reflecting on the reduced net income. Overall, the balance sheet remains strong with sufficient equity backing its operations.

Cash Flow

Free Cash Flow Growth Rate has been negative, signaling potential challenges in generating free cash flow. However, Operating Cash Flow remains strong relative to net income, suggesting operational efficiency. The Free Cash Flow to Net Income Ratio has declined, indicating less cash being converted into income, which could impact future liquidity if trends continue.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
126.57M	123.87M	117.34M	66.99M	1.69M	123.85K
	Gross Profit
33.46M	34.22M	25.96M	25.43M	872.93K	116.79K
	EBIT
3.05M	4.87M	19.86M	10.19M	-3.91M	-3.83M
	EBITDA
3.48M	7.08M	20.85M	10.87M	-486.62K	-3.74M
	Net Income Common Stockholders
1.95M	3.51M	13.81M	6.05M	-4.05M	-3.94M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.40M	11.35M	18.85M	16.08M	9.47M	14.69M
	Total Assets
70.79M	71.28M	46.90M	42.87M	12.69M	16.23M
	Total Debt
17.94M	11.02M	1.28M	5.06M	2.36M	2.21M
	Net Debt
10.54M	-326.07K	-17.57M	-11.02M	-7.10M	-12.48M
	Total Liabilities
30.29M	32.84M	11.99M	16.79M	3.47M	2.73M
	Stockholders Equity
40.96M	38.78M	34.98M	26.10M	9.30M	13.44M
Cash Flow		Free Cash Flow
-132.11K	6.21M	8.78M	13.13M	1.01M	-5.16M
	Operating Cash Flow
59.06K	7.00M	9.71M	13.50M	1.07M	-4.89M
	Investing Cash Flow
-11.67M	-13.20M	-837.72K	2.00M	-160.69K	-515.91K
	Financing Cash Flow
5.43M	-1.30M	-6.10M	-1.50M	-262.03K	19.93M

Cronos Australia Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.07
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:VIT, the sentiment is Negative. The current price of 0.07 is above the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.07, and below the 200-day MA of 0.08, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 44.63 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:VIT.

Cronos Australia Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIT	61 Neutral	AU$43.71M	19.41	4.85%	―	5.76%	-79.76%
Sector *	54 Neutral	$5.34B	3.27	-45.10%	3.30%	16.80%	0.02%
ELLXF		$2.24M	―	-21.29%	―	―	―
CNGGF		$5.39M	―	-164.01%	―	―	―
AGH	45 Neutral	AU$21.39M	―	-218.38%	―	-14.30%	29.69%
BOD	39 Underperform	AU$4.26M	―		―	-49.04%	32.85%

Cronos Australia Ltd. Corporate Events

Vitura Health Expands with Acquisition of Heyday Medical Clinic

Vitura Health Limited, through its joint venture Flora Holdings Pty Ltd, has acquired the Heyday Medical Clinic, a respected medicinal cannabis clinic in Australia. This acquisition strengthens Flora’s clinical network, positioning it as a leader in holistic healthcare, and expands patient access to both face-to-face and telehealth consultations. The deal involves acquiring key assets of Heyday Medical, with Vitura contributing 50% of the acquisition cost. The transition will see Heyday’s clinical team continue under Flora, enhancing the joint venture’s capacity to deliver quality patient care.

The most recent analyst rating on (AU:VIT) stock is a Buy with a A$0.12 price target. To see the full list of analyst forecasts on Cronos Australia Ltd. stock, see the AU:VIT Stock Forecast page.

Vitura Health Reports Positive Q3 FY2025 Momentum

Vitura Health Limited reported positive business momentum in Q3 FY2025, aligning with its Strategic Reset goals. The company saw successive revenue and EBITDA growth, driven by the integration of Candor Medical and Releaf Group, expansion of its Canview platform, and operational efficiencies. Despite slightly missing its annual revenue growth target, Vitura anticipates meeting its EBITDA margin and OPEX efficiency goals, setting a strong foundation for FY2026.

Vitura Health Limited Announces Cessation of Performance Rights

Vitura Health Limited has announced the cessation of 106,933 performance rights due to the conditions for these securities not being met or becoming incapable of being satisfied. This development may impact the company’s capital structure and could have implications for stakeholders, as it reflects on the company’s ability to meet certain performance conditions.

Vitura Health Addresses ASX Compliance Query on Trading Incident

Vitura Health Limited, listed on the ASX, has addressed a compliance query from the ASX regarding a trading incident involving its Director, Mr. Robert Iervasi. The company clarified that the trading was technically compliant with its Trading Policy, although an administrative oversight led to the clearance being granted a day earlier than prescribed. The board has decided not to take any disciplinary action, citing that the market was fully informed and the trade was executed at a premium. The company has reiterated its commitment to compliance and has reminded staff of their obligations under the Trading Policy.