Aurora Cannabis (ACB) AI Stock Analysis

• Market Cap: $392.92M
• Dividend Yield: N/A
• Average Volume (3M): 757.63K
• Price to Earnings (P/E): 105.8
• Beta (1Y): 1.79
• Revenue Growth: 28.42%
• EPS Growth: 48.33%
• Country: CA
• Employees: 1,073
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.26
• Shares Outstanding: 56,453,950
• 10 Day Avg. Volume: 500,945
• 30 Day Avg. Volume: 757,626
• PEG Ratio: -2.12
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 1.01
• P/FCF Ratio: -121.14
• Enterprise Value/Market Cap: 0.70
• Enterprise Value/Revenue: 0.77
• Enterprise Value/Gross Profit: 1.96
• Enterprise Value/Ebitda: 11.17
• 1Y Price Target: $7.00
• Price Target Upside: -2.84% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: C$7.00 ▼(-2.78% Downside)

Aurora Cannabis's overall stock score is primarily influenced by its financial performance challenges, including profitability and cash flow issues. The earnings call provided a positive outlook with strong revenue growth and improved margins, which partially offsets the financial weaknesses. Technical indicators suggest a neutral to slightly positive trend, while valuation metrics indicate overvaluation due to ongoing losses.

Positive Factors

Negative Factors

Aurora Cannabis Business Overview & Revenue Model

Company Description

Aurora Cannabis Inc. produces, distributes, and sells cannabis and cannabis derivative products in Canada and internationally. It also engages in facility engineering and design, cannabis breeding, research, production, derivatives, product development, wholesale, and retail distribution activities. The company produces various strains of dried cannabis, cannabis oil and capsules, and topical kits for medical patients. It also sells vaporizers; consumable vaporizer accessories; and herb mills for using CanniMed herbal cannabis products, as well as grinders and vaporizer lockable containers. In addition, the company engages in the development of medical cannabis products at various stages of development, including oral, topical, edible, and inhalable products; and operation of CanvasRX, a network of cannabis counseling and outreach centers. Further, it provides patient counselling services; design and construction services; and cannabis analytical product testing services. The company's brand portfolio includes Aurora, Aurora Drift, San Rafael '71, Daily Special, AltaVie, MedReleaf, CanniMed, Whistler, Woodstock, and WMMC. Aurora Cannabis Inc. is headquartered in Edmonton, Canada.

How the Company Makes Money

Aurora Cannabis primarily generates revenue through the sale of its cannabis products in both the medical and recreational markets. The company operates several production facilities, which allow it to cultivate and manufacture a wide array of cannabis products. Key revenue streams include direct sales to consumers through retail channels, wholesale distribution to other retailers, and export sales to international markets where cannabis is legal. Additionally, Aurora has formed significant partnerships and collaborations with other companies, enhancing its distribution capabilities and market reach. The company's revenue is also supported by ongoing investments in product development and innovation, which help maintain its competitive edge in the rapidly evolving cannabis industry.

Aurora Cannabis Financial Statement Overview

Summary

Aurora Cannabis demonstrates some revenue growth but continues to face significant profitability and cash flow challenges. The balance sheet is relatively stable with low leverage, but the company struggles to generate positive returns on equity and cash flow. These factors suggest a need for strategic improvements to enhance financial performance.

Income Statement

Aurora Cannabis shows a modest revenue growth rate of 4.25% TTM, indicating some positive momentum. However, the company struggles with profitability, as evidenced by a negative EBIT margin and a very low net profit margin. The gross profit margin is relatively healthy at 54.65%, but the negative EBIT and net income highlight ongoing operational challenges.

Balance Sheet

The company's debt-to-equity ratio is low at 0.18, suggesting manageable leverage levels. However, the return on equity is minimal at 0.28%, indicating inefficient use of equity capital. The equity ratio is not explicitly calculated, but the balance sheet shows a stable equity position relative to assets.

Cash Flow

Aurora Cannabis faces cash flow challenges, with negative free cash flow and a declining free cash flow growth rate. The operating cash flow to net income ratio is low, reflecting difficulties in converting earnings into cash. The negative free cash flow to net income ratio further underscores cash management issues.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	357.88M	343.29M	270.28M	233.29M	221.34M	245.25M
Gross Profit	140.64M	187.61M	131.46M	-64.36M	21.23M	-21.56M
EBITDA	24.75M	51.35M	-12.34M	-210.74M	-1.55B	-535.28M
Net Income	-20.14M	1.59M	-69.33M	-265.33M	-1.72B	-693.63M
Balance Sheet
Total Assets	837.84M	852.67M	838.67M	926.32M	1.08B	2.60B
Cash, Cash Equivalents and Short-Term Investments	186.03M	138.47M	117.47M	300.84M	439.14M	425.21M
Total Debt	101.63M	104.58M	104.79M	227.52M	269.49M	399.55M
Total Liabilities	249.16M	244.07M	236.80M	409.19M	422.00M	567.03M
Stockholders Equity	551.92M	567.17M	559.77M	486.08M	661.84M	2.04B
Cash Flow
Free Cash Flow	-999.00K	-2.85M	-85.46M	-127.95M	-142.48M	-263.66M
Operating Cash Flow	17.75M	16.00M	-68.51M	-115.82M	-110.27M	-210.58M
Investing Cash Flow	-20.18M	-14.33M	-5.49M	-27.29M	-36.17M	-26.91M
Financing Cash Flow	3.77M	-116.00K	-47.92M	-56.48M	147.78M	521.95M

Aurora Cannabis Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ACB, the sentiment is Positive. The current price of 7.2 is above the 20-day moving average (MA) of 7.00, above the 50-day MA of 6.76, and above the 200-day MA of 6.67, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 56.72 is Neutral, neither overbought nor oversold. The STOCH value of 50.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ACB.

Aurora Cannabis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRON	69 Neutral	1.43B	55.01	1.71%	―	31.72%	―
OGI	66 Neutral	337.16M	83.67	2.02%	―	38.86%	―
SNDL	61 Neutral	661.52M	-9.61	-8.36%	―	0.70%	15.62%
ACB	51 Neutral	$392.92M	105.83	-0.70%	―	28.42%	48.33%
TLRY	50 Neutral	1.41B	-0.54	-198.52%	―	4.10%	-594.06%
WEED	50 Neutral	669.74M	-0.47	-104.81%	―	-4.24%	55.82%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Aurora Cannabis Corporate Events

Aurora Cannabis Announces 2025 AGM Results and Board Changes

Aurora Cannabis Inc. announced the results of its 2025 Annual General and Special Meeting, where shareholders voted on various resolutions, including the election of directors and the appointment of auditors. Theresa Firestone resigned from the Board of Directors, and Michael Singer was appointed as the new Lead Independent Director and Chair of the Human Resources and Compensation Committee. The meeting also saw the approval of amendments to the company’s RSU Plan, PSU Plan, and Share Option Plan, although the advisory vote on executive compensation did not pass.

The most recent analyst rating on (TSE:ACB) stock is a Buy with a C$9.00 price target. To see the full list of analyst forecasts on Aurora Cannabis stock, see the TSE:ACB Stock Forecast page.