Aurora Cannabis (ACB) AI Stock Analysis

• Market Cap: $341.98M
• Dividend Yield: N/A
• Average Volume (3M): 554.50K
• Price to Earnings (P/E): 104.3
• Beta (1Y): 2.19
• Revenue Growth: 16.39%
• EPS Growth: -98.10%
• Country: CA
• Employees: 1,073
• Sector: Healthcare
• Sector Strength: 40
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.35
• Shares Outstanding: 56,246,403
• 10 Day Avg. Volume: 857,263
• 30 Day Avg. Volume: 554,499
• PEG Ratio: 0.07
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.02
• 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: $7.01
• Price Target Upside: 15.28% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 50 Neutral
• Price Target: ―

Aurora Cannabis scores a 50, reflecting a balance of significant financial difficulties and promising operational improvements. The positive earnings call and strategic corporate moves suggest potential growth, but the persistent financial challenges and high valuation limit the overall score. Continued focus on profitability and operational efficiency will be crucial.

Positive Factors

Financial Stability

The company's balance sheet offers optionality even in tough conditions.

Market Potential

A federal re-scheduling in the U.S. should provide benefits including increased research, lower stigma, improve access to capital, and unlock the world's biggest addressable cannabis market.

Strategic Shift

ACB has turned over a proverbial new leaf following the reset in the cannabis industry, now with a focus on responsible growth.

Negative Factors

Industry Risks

There are lingering risks in the emerging cannabis industry including rampant illicit markets, limited insurance coverage, and unpredictable path to further de-regulation.

Operational Challenges

There are administration delays in settlement payments.

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 generates revenue through the cultivation and sale of cannabis products for both medical and recreational use. Key revenue streams include the sale of dried cannabis flower and derivative products such as oils, edibles, and topicals. The company also earns from its international operations, where it supplies medical cannabis to various countries with legal frameworks supporting its use. Moreover, Aurora engages in strategic partnerships and acquisitions to expand its market reach and product offerings, including collaborations with other cannabis companies and investments in technology and research to improve cultivation efficiency and product innovation. Additionally, the company may also generate revenue from licensing its cannabis strains and intellectual property to other producers.

Aurora Cannabis Financial Statement Overview

Summary

Aurora Cannabis is facing significant financial challenges. Despite a positive gross profit and revenue growth, the company continues to operate at a net loss with negative cash flow, highlighting ongoing operational inefficiencies. The balance sheet shows conservative leverage but poor return metrics.

Income Statement

Aurora Cannabis has been facing significant challenges in its income statement. Although there was a positive gross profit in the latest year, the company continues to operate at a net loss with a negative net profit margin. The revenue growth rate was positive, indicating some recovery, but the EBIT and EBITDA margins remain negative, reflecting ongoing operational inefficiencies.

Balance Sheet

The balance sheet shows a moderately stable capital structure with a low debt-to-equity ratio, indicating conservative leverage use. However, the return on equity is negative due to persistent losses, which undermines shareholder value. The equity ratio remains strong, suggesting an asset-heavy structure, which may provide some stability.

Cash Flow

Aurora's cash flow situation is concerning, with negative free cash flow indicating more cash is leaving the business than is being generated. The operating cash flow to net income ratio suggests inefficiencies in cash generation relative to reported earnings. Despite this, the company has shown some improvement in free cash flow growth, albeit from a low base.

Breakdown	Mar 2024	Mar 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	270.28M	231.58M	221.34M	245.25M	278.91M
Gross Profit	131.46M	-60.45M	21.23M	-21.56M	-33.54M
EBITDA	20.47M	-203.32M	-143.09M	-137.20M	-393.23M
Net Income	-69.33M	-263.79M	-1.72B	-693.63M	-3.31B
Balance Sheet
Total Assets	838.67M	926.32M	1.08B	2.60B	2.78B
Cash, Cash Equivalents and Short-Term Investments	117.47M	300.84M	439.14M	425.21M	169.25M
Total Debt	104.79M	227.52M	269.49M	399.55M	531.25M
Total Liabilities	236.80M	404.62M	422.00M	567.03M	657.25M
Stockholders Equity	559.77M	490.64M	661.84M	2.04B	2.15B
Cash Flow
Free Cash Flow	-85.46M	-125.13M	-142.05M	-263.66M	-692.96M
Operating Cash Flow	-68.51M	-115.81M	-109.84M	-210.58M	-337.95M
Investing Cash Flow	-5.49M	-27.31M	-36.60M	-26.91M	-249.48M
Financing Cash Flow	-47.92M	-56.48M	147.78M	521.95M	582.56M

Aurora Cannabis Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 6.08 is below the 20-day moving average (MA) of 6.87, below the 50-day MA of 6.91, and below the 200-day MA of 6.82, indicating a bearish trend. The MACD of -0.44 indicates Positive momentum. The RSI at 42.24 is Neutral, neither overbought nor oversold. The STOCH value of 35.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ACB.

Aurora Cannabis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.50B	0.32	-61.87%	2.27%	17.10%	1.59%
ACB	50 Neutral	$341.98M	104.29	3.05%	―	16.39%	-98.10%
CGC		$256.86M	―	-122.10%	―	―	―
OGI		$181.37M	20.29	4.76%	―	―	―
CRLBF		$229.92M	―	-17.34%	―	―	―
TSND	45 Neutral	C$140.60M	―	-38.89%	―	-6.80%	11.94%
CBSTF		$167.76M	―	-554.70%	―	―	―

Aurora Cannabis Corporate Events

Aurora Cannabis Unveils Mildew-Resistant Cannabis Breakthrough

Aurora Cannabis has announced a groundbreaking discovery of a genetic resistance to powdery mildew, a significant pathogen in cannabis cultivation. This development, achieved at their Aurora Coast research facility, is expected to lead to the creation of mildew-resistant cannabis cultivars, enhancing biosecurity, reducing production costs, and improving product quality. The discovery, protected by international patents, positions Aurora as a leader in cannabis science, potentially opening new market opportunities and advancing cultivation methods globally.

Aurora Cannabis Enhances Access to Medical Cannabis in Australia

Aurora Cannabis, in collaboration with its subsidiary MedReleaf Australia, has removed the concession card requirement for its IndiMed products, allowing broader patient access to medical cannabis in Australia. This move reflects Aurora’s commitment to simplifying prescription processes and adapting quickly to market demands, enhancing its position in the growing Australian medical cannabis market.

Aurora Cannabis Secures Strategic $27 Million Supply Agreement with SNDL

Aurora Cannabis has announced a strategic supply agreement with SNDL Inc., a Canadian cannabis producer, to source premium cannabis flower over the next three years valued at $27 million. This partnership underscores Aurora’s strategy to leverage both in-house and third-party cultivation to enhance its product offerings, reflecting its commitment to quality and cultivation excellence, which is expected to strengthen its market position and benefit stakeholders.

Aurora Cannabis Achieves Record Third-Quarter Revenue and Income

Aurora Cannabis reported its fiscal 2025 third-quarter results with a total net revenue of $88.2 million, marking a 37% increase year-over-year, primarily driven by a 51% rise in its global medical cannabis sector. The company achieved record net income of $31.2 million and adjusted EBITDA of $23.1 million, both experiencing substantial growth. Aurora also generated positive free cash flow of $27.4 million, maintaining a strong balance sheet with $180 million in cash and a debt-free cannabis business. These results underscore Aurora’s leadership in the global cannabis industry, supported by international revenue growth and expansion in its plant propagation segment.