Ayr Wellness (AYR.A) AI Stock Analysis

• Market Cap: C$18.10M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 2.14
• Revenue Growth: 0.63%
• EPS Growth: -31.86%
• Country: CA
• Employees: 2,440
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): N/A
• Shares Outstanding: 108,759,750
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.13
• Price to Sales (P/S): 0.11
• P/FCF Ratio: -3.31
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Neutral
• Price Target: C$0.15 ▼(-8.13% Downside)

Ayr Wellness faces significant financial and operational challenges, with declining profitability, increasing debt, and negative cash flows. Technical indicators suggest bearish momentum, and valuation metrics are poor with a negative P/E ratio. The recent initiation of CCAA proceedings further highlights the company's financial distress.

Ayr Wellness Business Overview & Revenue Model

Company Description

Ayr Wellness Inc. is a vertically integrated cannabis company based in the United States, primarily focused on the cultivation, manufacturing, and distribution of cannabis products for both medical and recreational use. The company operates in various states, leveraging its extensive grow facilities, dispensaries, and processing operations to provide a diverse range of cannabis products, including flower, concentrates, edibles, and wellness products. Ayr Wellness aims to enhance the accessibility and quality of cannabis while adhering to local regulations and promoting responsible usage.

How the Company Makes Money

Ayr Wellness generates revenue through multiple key streams, primarily from the sale of cannabis products in both retail and wholesale markets. The company operates a network of dispensaries that sell its branded products directly to consumers, which constitutes a significant portion of its revenue. Additionally, Ayr Wellness engages in wholesale distribution to other retailers, expanding its market reach. The company also benefits from partnerships with local cultivators and suppliers, which help optimize its supply chain and reduce costs. Furthermore, revenue is bolstered by its focus on product innovation and brand development, allowing it to capture a larger share of the growing cannabis market. Regulatory compliance and strategic market positioning in key states also play a crucial role in driving sales and profitability.

Ayr Wellness Financial Statement Overview

Summary

Ayr Wellness is experiencing financial challenges, with declining profitability, increasing debt levels, and negative cash flows. The company needs to improve operational efficiency and manage its leverage 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
EBITDA	-154.53M	84.60M	-67.66M	87.69M	17.21M
Net Income	-359.31M	-272.43M	-245.47M	-16.95M	-176.33M
Balance Sheet
Total Assets	1.27B	1.46B	1.76B	1.86B	615.87M
Cash, Cash Equivalents and Short-Term Investments	35.48M	50.77M	80.64M	154.34M	127.24M
Total Debt	621.88M	597.77M	621.66M	483.82M	190.62M
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: Negative
• Last Price: 0.16
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

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 above the 20-day moving average (MA) of 0.15, above the 50-day MA of 0.15, and below the 200-day MA of 0.19, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 29.79 is Positive, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XLY	64 Neutral	$201.98M	4.37	31.46%	―	27.38%	―
OGI	59 Neutral	C$350.59M	-14.29	-7.93%	―	62.15%	60.50%
TSND	53 Neutral	C$568.22M	-3.23	-43.99%	―	-11.16%	-29.56%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
LABS	45 Neutral	C$27.35M	-3.63	-19.10%	―	18.06%	34.58%
PLTH	42 Neutral	C$131.77M	-1.29	-83.55%	―	2.19%	-91.41%
AYR.A	40 Neutral	C$18.10M	-0.04	―	―	0.63%	-31.86%

Ayr Wellness Corporate Events

AYR Wellness Initiates CCAA Proceedings Amid Restructuring Efforts

AYR Wellness Inc. has initiated proceedings under the Companies’ Creditors Arrangement Act in Canada as part of its restructuring efforts. This move is aligned with a previously disclosed Restructuring Support Agreement, which involves transitioning core assets to a new acquisition vehicle owned by senior noteholders. The restructuring process includes a court-supervised wind-down of AYR’s corporate parent entity and the appointment of a licensed insolvency trustee to ensure operational stability. Additionally, the company has executed a Master Purchase Agreement to transfer assets and equity interests of subsidiaries in several states to the new entity, subject to regulatory approvals.

AYR Wellness Completes Auction, Initiates Core Asset Sale

AYR Wellness has announced the successful completion of a public foreclosure auction, resulting in its senior noteholders acquiring core assets through a new acquisition vehicle. This marks a significant milestone in AYR’s restructuring process, as the company prepares to transfer ownership of its core assets to the new entity and wind down its existing corporate structure. The company plans to continue operating its core assets while seeking necessary regulatory approvals and maintaining its commitment to delivering high-quality products and services.

AYR Wellness Initiates Article 9 Proceedings in Debt Restructuring

AYR Wellness has announced the commencement of Article 9 proceedings as part of its debt restructuring process with senior noteholders. This phase involves a foreclosure sale of certain assets and equity interests in specified subsidiaries across several states, scheduled for November 10, 2025. The company will continue operations and maintain product quality during the transition of asset ownership to the successful bidder. This restructuring step is crucial for AYR’s ongoing efforts to stabilize its financial standing and maintain cooperative relations with stakeholders.

AYR Wellness Releases Q1 2025 Financial Statements and MD&A

AYR Wellness has announced the filing of its unaudited interim financial statements and Management’s Discussion and Analysis (MD&A) for the first quarter of 2025. These documents, available on SEDAR+ and the SEC’s EDGAR system, offer insights into the company’s operating performance and liquidity position. The release emphasizes the use of non-GAAP measures like Adjusted EBITDA and Adjusted Gross Profit to provide greater transparency and understanding of the company’s financial health, which may be beneficial for investors and stakeholders.