Ayr Wellness (AYR.A) AI Stock Analysis

• Market Cap: $47.88M
• Dividend Yield: N/A
• Average Volume (3M): 131.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.10
• Revenue Growth: 1.48%
• EPS Growth: -174.61%
• Country: CA
• Employees: 2,440
• Sector: Healthcare
• Sector Strength: 58
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -4.49
• Shares Outstanding: 108,759,750
• 10 Day Avg. Volume: 168,209
• 30 Day Avg. Volume: 131,562
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 18.76
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 5.08
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $2.08
• Price Target Upside: 406.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Ayr Wellness currently faces significant financial challenges, with declining profitability, high leverage, and negative cash flows. Despite some positive strategic initiatives such as operational streamlining and market expansion, particularly in Ohio, the overall financial instability and valuation concerns weigh heavily on the stock's performance. Technical indicators provide mixed signals, and while recent corporate events are positive, they are not enough to offset the fundamental weaknesses.

Ayr Wellness Business Overview & Revenue Model

Company Description

Ayr Wellness Inc. (AYR.A) is a leading vertically integrated cannabis multi-state operator in the United States. The company is engaged in the cultivation, manufacturing, and retail distribution of cannabis products. Ayr Wellness operates across several states, providing a range of products including flower, edibles, concentrates, and branded merchandise. The company's core mission is to deliver high-quality cannabis products and exceptional customer experiences through its retail dispensaries and wholesale channels.

How the Company Makes Money

Ayr Wellness generates revenue through multiple streams in the cannabis industry. Primarily, the company earns income from the sale of cannabis products through its owned and operated retail dispensaries, as well as wholesale distribution to third-party dispensaries. Ayr Wellness benefits from its vertically integrated model, which allows for control over the entire supply chain from cultivation to retail. This integration enables the company to optimize production costs and maintain high product quality, contributing to its profitability. Additionally, strategic acquisitions and partnerships within key markets have expanded Ayr's footprint, enhancing its revenue potential. The company also capitalizes on branding and marketing efforts to strengthen customer loyalty and drive sales growth.

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

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

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

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.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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 Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.41
• 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 TSE:AYR.A, the sentiment is Neutral. The current price of 0.41 is above the 20-day moving average (MA) of 0.25, above the 50-day MA of 0.29, and below the 200-day MA of 1.38, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 68.56 is Neutral, neither overbought nor oversold. The STOCH value of 90.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:AYR.A.

Ayr Wellness Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GTII	71 Outperform	$2.12B	21.58	4.19%	―	9.46%	105.27%
TRUL	56 Neutral	$1.23B	―	-12.12%	―	6.27%	67.62%
CURA	56 Neutral	C$988.67M	―	-23.33%	―	0.67%	19.14%
CL	56 Neutral	$549.67M	―	-15.18%	―	-4.65%	59.09%
OGI	53 Neutral	$200.75M	―	-18.27%	―	7.33%	84.41%
Sector *	52 Neutral	$5.36B	3.88	-42.93%	2.87%	17.85%	1.45%
AYR.A	48 Neutral	$47.88M	―	-74.75%	―	1.48%	-174.61%

Ayr Wellness Corporate Events

AYR Wellness Announces Leadership Transition with New Interim CEO

AYR Wellness Inc. has announced a leadership change with Scott Davido appointed as the new Interim Chief Executive Officer, succeeding Steven M. Cohen. This transition is part of AYR’s strategic initiatives to enhance its operational and financial performance, with Davido bringing extensive experience in leading companies through periods of transition. The company aims to leverage this leadership change to further its growth and success in the cannabis industry.

AYR Wellness Appoints Donna Granato as Interim CFO Following Brad Asher’s Resignation

AYR Wellness has announced a significant change in its management team with the resignation of Brad Asher as Chief Financial Officer, effective March 23, 2025. Donna Granato has been appointed as the Interim CFO, bringing over 25 years of experience in corporate finance and operations, which is expected to strengthen AYR’s financial leadership. This change is anticipated to enhance the company’s operational efficiency and market positioning in the cannabis industry.

AYR Wellness Appoints New Interim CFO Amid Management Changes

AYR Wellness has announced a change in its management team, with the resignation of Brad Asher as Chief Financial Officer and the appointment of Donna Granato as Interim CFO. Granato, who has extensive experience in corporate finance and operations, is expected to enhance AYR’s financial leadership, potentially strengthening the company’s position in the cannabis industry.

AYR Wellness Expands Cannabis Dispensary Network in Florida and Ohio

AYR Wellness Inc. announced updates to its dispensary network, with the opening of new locations in Miami, FL, and Niles, OH, while closing the Key West dispensary to improve operational efficiency. The Miami-Midtown dispensary is notable as the first medical cannabis dispensary within Miami’s city limits, representing a significant milestone in the company’s expansion strategy. The Niles, OH location marks the company’s fourth store in the state, with plans for further expansion throughout the year. These strategic moves aim to enhance customer service and product accessibility while optimizing the core retail footprint.

AYR Wellness Announces Leadership Transition with Jared Cohen

AYR Wellness announced that Jared Cohen is transitioning from his role on the Board of Directors to a position as Board Observer, as he takes on new professional responsibilities outside the cannabis industry. This change reflects ongoing engagement with Cohen in a different capacity and indicates the company’s adaptability in leadership roles, potentially impacting its strategic direction and stakeholder interactions.

AYR Wellness to Discuss 2024 Financial Results in Upcoming Conference Call

AYR Wellness announced it will host a conference call on March 6, 2025, to discuss its financial results for the fourth quarter and full year of 2024. The call will be led by Interim CEO Steven Cohen and CFO Brad Asher, and it aims to provide stakeholders with insights into the company’s performance and strategic direction. This event may influence AYR’s market positioning and stakeholder engagement as it focuses on transparency and operational updates.