Tilray (TLRY) AI Stock Analysis

• Market Cap: $414.31M
• Dividend Yield: N/A
• Average Volume (3M): 23.97M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: 11.22%
• EPS Growth: -108.58%
• Country: US
• Employees: 2,650
• Sector: Healthcare
• Sector Strength: 59
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.87
• Shares Outstanding: 1,025,530,500
• 10 Day Avg. Volume: 31,981,876
• 30 Day Avg. Volume: 23,969,240
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -80.04
• Enterprise Value/Market Cap: 3.42
• Enterprise Value/Revenue: 0.43
• Enterprise Value/Gross Profit: 5.99
• Enterprise Value/Ebitda: -1.55
• 1Y Price Target: $0.93
• Price Target Upside: 132.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 44 Neutral
• Price Target: $0.50 ▲(25.00%Upside)

Tilray's score is primarily driven by financial performance challenges, bearish technical indicators, and unfavorable valuation metrics. The earnings call provided mixed insights, with some operational improvements offset by significant financial losses. These factors together suggest a cautious outlook on the stock.

Positive Factors

Cost management

Beverage Improvement Plans are back on track with internalized production and focus on core markets, resulting in significant cost savings.

Financial performance

Tilray's Adjusted EBITDA of $9M exceeded expectations, driven by better-than-expected Canadian cannabis gross margins of 40.5%.

Operational improvements

The company recently completed capital investments in a facility that allows better use of byproducts for vapes and infused pre-rolls, expected to improve Canadian adult-use trends.

Negative Factors

Market challenges

The craft beer category and Canadian cannabis markets are under competitive pressure, affecting Tilray's outlook.

Regulatory environment

The path to federal legalization of cannabis in the U.S. remains unclear, impacting future prospects.

Sales performance

Tilray reported 3Q sales of $186M, falling short of the $206M estimate and FS $210M.

Tilray Business Overview & Revenue Model

Company Description

Tilray, Inc. is a global leader in cannabis research, cultivation, processing, and distribution. Operating in several sectors including medical, recreational, and hemp-based cannabis products, Tilray offers a diverse portfolio that includes cannabis flower, oils, vapes, edibles, and beverages. The company is committed to advancing the science of cannabis and providing quality products to consumers and patients around the world.

How the Company Makes Money

Tilray makes money primarily through the sale of cannabis and cannabis-derived products across various markets. Its key revenue streams include the medical cannabis sector, where it supplies products to patients and healthcare providers, and the adult-use or recreational cannabis sector, which caters to consumers seeking cannabis for personal enjoyment. Additionally, Tilray generates revenue through its hemp products, including hemp food and wellness products. The company also benefits from strategic partnerships and acquisitions that expand its market reach and product offerings, contributing significantly to its earnings. Tilray's global distribution network and its investments in research and innovation further bolster its revenue-generating capabilities.

Tilray Financial Statement Overview

Summary

Tilray faces significant financial challenges with negative profitability indicators and cash flow issues, despite modest revenue growth. The balance sheet shows low leverage but declining equity and negative returns highlight ongoing difficulties.

Income Statement

Tilray's income statement shows significant challenges, with a negative net profit margin at -114.9% TTM, indicating high losses relative to revenue. Despite a slight revenue growth of 4.79% from the previous year, the company struggles with profitability as evidenced by negative EBIT and EBITDA margins. The gross profit margin is at 28.57% TTM, indicating some efficiency in production but insufficient to cover operating costs.

Balance Sheet

The balance sheet reveals a debt-to-equity ratio of 0.08, suggesting relatively low leverage, which is a positive sign. However, this is offset by a concerning drop in stockholders' equity over time. The equity ratio is 80.22% TTM, highlighting a strong equity position relative to assets. Nevertheless, the negative return on equity of -34.78% TTM reflects ongoing profitability issues.

Cash Flow

Cash flow analysis shows negative free cash flow growth, indicating cash outflows continue to exceed inflows. The operating cash flow to net income ratio is -0.05 TTM, suggesting operational inefficiencies. The company also exhibits a negative free cash flow to net income ratio, pointing to difficulties in generating cash relative to reported losses.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
826.66M	788.94M	627.12M	628.37M	513.09M	391.00M
	Gross Profit
236.24M	223.35M	146.96M	116.82M	123.18M	137.68M
	EBIT
-725.55M	-174.75M	-1.37B	153.29M	-4.95M	51.48M
	EBITDA
-648.68M	-72.84M	-889.52M	-246.40M	-218.36M	-18.40M
	Net Income Common Stockholders
-945.62M	-244.98M	-1.44B	-434.13M	-336.01M	―
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
248.41M	260.52M	448.53M	415.91M	488.47M	358.47M
	Total Assets
3.40B	4.22B	4.31B	5.45B	6.03B	1.80B
	Total Debt
343.91M	387.32M	590.13M	623.81M	938.66M	300.32M
	Net Debt
143.95M	158.98M	383.50M	207.90M	450.19M	-58.15M
	Total Liabilities
701.04M	778.49M	977.32M	1.01B	1.56B	475.89M
	Stockholders Equity
2.73B	3.44B	3.32B	4.40B	4.46B	1.31B
Cash Flow		Free Cash Flow
-81.23M	-60.15M	-12.89M	-211.33M	-83.59M	―
	Operating Cash Flow
-50.67M	-30.91M	7.91M	-177.26M	-44.72M	―
	Investing Cash Flow
-16.47M	128.35M	-285.11M	-21.53M	46.10M	―
	Financing Cash Flow
124.77M	-75.19M	70.16M	128.20M	124.31M	125.40M

Tilray Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TLRY, the sentiment is Negative. The current price of 0.4 is below the 20-day moving average (MA) of 0.43, below the 50-day MA of 0.46, and below the 200-day MA of 1.07, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 40.08 is Neutral, neither overbought nor oversold. The STOCH value of 44.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TLRY.

Tilray Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	54 Neutral	$5.38B	3.27	-45.10%	3.30%	16.81%	0.02%
SNDL	52 Neutral	$331.92M	―	-9.20%	―	-3.02%	26.00%
FLGC	46 Neutral	$16.75M	―	-336.65%	―	-28.78%	86.97%
TLRY	44 Neutral	$414.31M	―	-31.06%	―	11.22%	-108.58%
CPHI	39 Underperform	$5.32M	―	-59.14%	―	-33.10%	71.37%
YCBD	30 Underperform	$7.69M	―	-8.46%	―	-9.22%	89.90%

Tilray Corporate Events

Tilray Approves Reverse Stock Split Proposal

On June 10, 2025, Tilray Brands, Inc. held a special meeting of stockholders to vote on two proposals: an amendment for a reverse stock split and the adjournment of the meeting for further proxy solicitation if needed. Both proposals were approved, with the board retaining discretion on executing the reverse stock split, indicating a strategic move to potentially enhance the company’s stock market positioning.

The most recent analyst rating on (TLRY) stock is a Hold with a $1.40 price target. To see the full list of analyst forecasts on Tilray stock, see the TLRY Stock Forecast page.