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Ayr Wellness (TSE:AYR.A)
:AYR.A
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Ayr Wellness
(OTC:AYR.A)
Rating:42Neutral
Price Target:
C$0.00
▼(-100.00%Downside)
Ayr Wellness (AYR.A) vs. iShares MSCI Canada ETF (EWC)
Market Cap
$18.10M
Dividend YieldN/A
Average Volume (3M)124.64K
Price to Earnings (P/E)―
Beta (1Y)1.93
Revenue Growth1.48%
EPS Growth-174.61%
CountryCA
Employees2,440
SectorHealthcare
Sector Strength41
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.48
Shares Outstanding108,759,750
10 Day Avg. Volume137,363
30 Day Avg. Volume124,640
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
$0.40Price Target Upside147.69% Upside
Rating ConsensusHold
Number of Analyst Covering0
Ayr Wellness Business Overview & Revenue Model
Company DescriptionAyr 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 MoneyAyr 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 Earnings Call Summary
Earnings Call Date:May 21, 2025
(Q4-2024)
| % Change Since: -51.52%|
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
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.45
Neutral
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.50
Neutral
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.40
Negative
| 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
Negative
0.16
Price Trends
0.28
Negative
0.39
Negative
1.10
Negative
Market Momentum
-0.04
Positive
29.79
Positive
15.08
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AYR.A, the sentiment is Negative. The current price of 0.16 is below the 20-day moving average (MA) of 0.29, below the 50-day MA of 0.28, and below the 200-day MA of 1.10, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 29.79 is Positive, neither overbought nor oversold. The STOCH value of 15.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:AYR.A.
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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $245.01M | 17.20 | 4.76% | ― | 26.93% | ― | |
63 Neutral | $105.23M | 4.76 | 18.60% | ― | 26.78% | ― | |
56 Neutral | C$31.14M | ― | -16.22% | ― | 16.24% | 46.47% | |
54 Neutral | $5.24B | 3.27 | -45.39% | 2.80% | 16.77% | -0.07% | |
48 Neutral | C$146.09M | ― | -38.89% | ― | -6.80% | 11.94% | |
45 Neutral | C$95.98M | ― | -39.53% | ― | 29.90% | 55.23% | |
42 Neutral | $18.10M | ― | -74.75% | ― | 1.48% | -174.61% |
* Healthcare Sector Average
Performance Comparison
TSE:AYR.A
Ayr Wellness
0.16
-2.70
-94.56%
TSE:XLY
Auxly Cannabis Group
0.08
0.05
128.57%
TSE:LABS
MediPharm Labs
0.08
0.00
0.00%
TSE:OGI
OrganiGram Holdings
1.86
-0.33
-15.30%
TSE:PLTH
Planet 13 Holdings
0.28
-0.51
-64.74%
TSE:TSND
TerrAscend Corp
0.38
-1.63
-81.09%
Ayr Wellness Corporate Events
Delistings and Listing ChangesBusiness Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
AYR Wellness Delays Q1 2025 Financial Filings Amid Strategic Review
Negative
May 30, 2025
AYR Wellness Inc. announced a delay in filing its Q1 2025 financial statements and management discussion due to ongoing strategic review processes and negotiations with creditors. The Ontario Securities Commission will issue a cease-trade order, halting trading of AYR’s securities in Canada until the filings are completed, which is expected by June 13, 2025. Despite this, AYR does not anticipate any impact on its regular operations.
The most recent analyst rating on ($TSE:AYR.A) stock is a Buy with a C$3.50 price target. To see the full list of analyst forecasts on Ayr Wellness stock, see the TSE:AYR.A Stock Forecast page.
Executive/Board ChangesBusiness Operations and Strategy
AYR Wellness Announces Leadership Transition with New Interim CEO
Neutral
Apr 4, 2025
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.
Executive/Board ChangesBusiness Operations and Strategy
AYR Wellness Appoints Donna Granato as Interim CFO Following Brad Asher’s Resignation
Neutral
Mar 24, 2025
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.
Executive/Board Changes
AYR Wellness Appoints New Interim CFO Amid Management Changes
Neutral
Mar 24, 2025
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.
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.