Ayr Wellness (AYRWF) AI Stock Analysis

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Ayr Wellness (AYRWF) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$13.22M

Dividend YieldN/A

Average Volume (3M)348.58K

Price to Earnings (P/E)―

Beta (1Y)1.35

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees2,440

SectorHealthcare

Sector Strength42

IndustryDrug Manufacturers - Specialty & Generic

Share Statistics

EPS (TTM)-0.35

Shares Outstanding108,759,750

10 Day Avg. Volume710,587

30 Day Avg. Volume348,577

Financial Highlights & Ratios

PEG Ratio<0.01

Price to Book (P/B)0.05

Price to Sales (P/S)0.00

P/FCF Ratio-1.29

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$0.29

Price Target Upside107.14% Upside

Rating ConsensusHold

Number of Analyst Covering0

Ayr Wellness Business Overview & Revenue Model

Company DescriptionAyr Wellness Inc., a vertically-integrated cannabis multi-state operator, cultivates, manufactures, and retails cannabis products and branded cannabis packaged goods. The company's cannabis and cannabis products include concentrates, edibles, and vaporizers. It also provides administrative, consulting, and operations support services to licensed cannabis companies. As of November 1, 2022, Ayr Wellness Inc. operated 52 dispensaries. The company was formerly known as Ayr Strategies Inc. and changed its name to Ayr Wellness Inc. in February 2021. Ayr Wellness Inc. was incorporated in 2017 and is headquartered in Miami, Florida.

How the Company Makes Money

Ayr Wellness Earnings Call Summary

Earnings Call Date:May 21, 2025

(Q4-2024)

% Change Since: -41.67%|

Next Earnings Date:Aug 14, 2025

Earnings Call Sentiment Neutral

The call highlighted strategic moves to strengthen the business through operational streamlining and market expansion, particularly in Ohio. However, significant challenges persist, including price compression and various operational difficulties, leading to a decline in profitability and substantial impairment charges.

Q4-2024 Updates

Positive Updates

Strong Wholesale Revenue Growth

CPG wholesale revenue in 2024 was up 20% year-over-year, with core brands Kynd, Haze, and Later Days up 126% over the prior year.

Ohio Market Expansion

Ohio adult use sales in Q4 contributed to meaningful increases in both retail and wholesale revenues. Ohio retail sales increased 41% quarter-over-quarter.

Operational Streamlining

Efforts to streamline operations include selling assets in Illinois, consolidating facilities in Nevada and Massachusetts, and reducing SG&A costs.

New Indoor Cultivation Facility in Florida

Launch of a new indoor cultivation facility in Ocala, expected to come online in Q2, will more than double current flower production capacity.

Negative Updates

Price Compression Across Various Markets

Price compression continued to impact margins, with BDSA flower pricing decreasing sequentially across all markets, ranging from 5% to 12%.

Challenges in Florida

Florida faced price compression, seasonal greenhouse impacts, and inventory challenges stemming from the transition to a new seed-to-sale tracking system.

Q4 Gross Profit Decline

Q4 gross profit of $35.8 million represented a 17% decrease from the prior quarter and a 27% decrease from the prior year.

Impairment Charges

Q4 loss from continuing operations was $133.9 million, driven by $116 million of non-cash impairment charges, including a $94 million goodwill impairment.

Company Guidance

During the Ayr Wellness fourth quarter and full-year 2024 earnings call, Interim CEO Steven Cohen and President George DeNardo discussed the company's strategic focus on sustainable growth and profitability amidst industry challenges. The call highlighted that full-year sales remained flat at $463.6 million compared to the previous year, with retail sales declining by 4% and wholesale sales increasing by 28%. Adjusted gross margin was reported at 51.6%, down from 55% the previous year, primarily due to price compression and a shift in revenue from retail to wholesale. Ayr emphasized its commitment to core markets, including Florida, Ohio, and Pennsylvania, and announced plans to divest non-core assets like those in Illinois. The $10 million CapEx guidance for 2025, excluding potential Virginia investments, reflects a careful approach to capital deployment. Ayr's leadership transition includes the upcoming departure of CFO Brad Asher, with a focus on building a resilient leadership team to drive future success.

Ayr Wellness Financial Statement Overview

Summary

Ayr Wellness is facing significant financial challenges, including declining profitability and increasing debt levels. The negative cash flows and operational inefficiencies raise concerns about the company's ability to stabilize its financial position.

Income Statement

Neutral

Ayr Wellness has faced declining profitability with negative EBIT and net income over the recent years. Revenue has been stagnant, and margins, including gross profit, have decreased. The company shows no revenue growth and negative EBIT and EBITDA margins, indicating operational inefficiencies.

Balance Sheet

Neutral

The balance sheet shows a reasonable equity ratio, but the debt-to-equity ratio has been increasing, indicating rising leverage. The return on equity is negative due to ongoing losses, which suggests potential financial instability.

Cash Flow

Negative

Cash flow is a concern with negative free cash flow and declining operating cash flow. The operating cash flow to net income ratio is weak, and the company struggles to generate cash from its operations, raising liquidity risks.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
463.63M	463.63M	465.62M	357.61M	155.11M
	Gross Profit
176.68M	202.44M	190.44M	138.10M	103.10M
	EBIT
-160.99M	-37.21M	-243.02M	-56.01M	16.12M
	EBITDA
-154.53M	84.60M	-67.66M	87.69M	17.21M
	Net Income Common Stockholders
-359.31M	-272.43M	-245.47M	-16.95M	-176.33M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
35.48M	50.77M	80.64M	154.34M	127.24M
	Total Assets
1.27B	1.46B	1.76B	1.86B	615.87M
	Total Debt
621.88M	597.77M	621.66M	483.82M	190.62M
	Net Debt
586.40M	547.00M	541.02M	329.48M	63.38M
	Total Liabilities
904.31M	889.20M	928.56M	839.85M	465.01M
	Stockholders Equity
379.53M	581.78M	833.32M	1.02B	150.86M
Cash Flow		Free Cash Flow
-15.14M	-12.44M	-96.66M	-127.78M	21.74M
	Operating Cash Flow
9.63M	27.16M	-34.16M	-27.78M	36.51M
	Investing Cash Flow
-21.81M	-24.15M	-66.50M	-219.63M	-62.25M
	Financing Cash Flow
-3.10M	-32.89M	26.96M	274.51M	144.57M

Ayr Wellness Peers Comparison

Overall Rating

UnderperformOutperform

Sector (54)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AYRWF		$13.22M	―	-74.75%	―	―	―
Sector *	54 Neutral	$5.31B	3.28	-45.10%	2.80%	16.76%	0.02%
OGI		$181.34M	19.85	4.76%	―	―	―
CBWTF		$76.92M	4.96	18.60%	―	―	―
MEDIF		$24.28M	―	-16.22%	―	―	―
PLNH		$65.40M	―	-39.53%	―	―	―
TSND	48 Neutral	C$137.07M	―	-38.89%	―	-6.80%	11.94%

* Healthcare Sector Average

Performance Comparison

AYRWF

Ayr Wellness

0.14

-1.91

-93.17%

OGI

OrganiGram Holdings

1.35

-0.24

-15.09%

CBWTF

Auxly Cannabis Group

0.06

0.04

200.00%

MEDIF

MediPharm Labs

0.06

0.00

0.00%

PLNH

Planet 13 Holdings

0.20

-0.37

-64.91%

TSE:TSND

TerrAscend Corp

0.38

-1.63

-81.09%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.