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Cresco Labs OTC (TSE:CL)
:CL
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Cresco Labs
(OTC:CL)
50Neutral
Cresco Labs (CL) vs. S&P 500 (SPY)
Market Cap
C$492.27M
Dividend YieldN/A
Average Volume (3M)130.03K
Price to Earnings (P/E)―
Beta (1Y)1.41
Revenue Growth-4.65%
EPS Growth59.09%
CountryCA
Employees2,900
SectorHealthcare
Sector Strength72
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.29
Shares Outstanding333,819,460
10 Day Avg. Volume175,606
30 Day Avg. Volume130,033
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.43
Price to Cash Flow (P/CF)2.60
P/FCF Ratio11.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$2.78Price Target Upside150.24% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Cresco Labs Business Overview & Revenue Model
Company DescriptionCresco Labs (CL) is a leading cannabis company in the United States, operating in the cannabis production, processing, and retail sectors. The company focuses on cultivating high-quality cannabis products and distributing them through its own retail network and third-party dispensaries. Cresco Labs offers a wide range of products, including flower, concentrates, edibles, and other cannabis-infused products, catering to both medical and recreational markets.
How the Company Makes MoneyCresco Labs generates revenue primarily through the cultivation, production, and sale of cannabis products. The company's key revenue streams include sales from its owned dispensaries, wholesale distribution to third-party retailers, and branded product lines. Cresco Labs benefits from significant partnerships and licensing agreements that expand its market presence and product offerings. Additionally, the company's strategic acquisitions and expansion into new markets contribute to its revenue growth by increasing its retail footprint and production capabilities.
Cresco Labs Financial Statement Overview
Summary
Cresco Labs is on a path to recovery with improving margins and cash flows, despite ongoing revenue challenges. The company has shown operational improvements with positive cash flow, though high leverage and declining equity remain concerns. Continued efforts in enhancing operational efficiency and managing debt levels will be crucial for future stability and growth.Income Statement
Cresco Labs has experienced a decline in total revenue over the past two years with a revenue decrease from $842.7M in 2022 to $724.3M in 2024. Despite having a strong gross profit margin of 50.3% in 2024, the company faces challenges with sustained net losses, though the net loss has decreased from -$175.5M in 2023 to -$74.4M in 2024. EBIT and EBITDA margins have shown improvement, indicating a potential turnaround in operational efficiency.45
Neutral
Balance Sheet
The debt-to-equity ratio stands at 1.35 in 2024, reflecting a moderate level of leverage. The equity ratio remains relatively stable at 35.0%, indicating a balanced approach toward asset financing. However, the decline in stockholders' equity from $505.7M in 2023 to $474.9M in 2024 suggests challenges in preserving equity value. Return on equity has improved as net losses have narrowed.55
Neutral
Cash Flow
Cresco Labs shows an improvement in operating cash flow, increasing from $58.6M in 2023 to $132.5M in 2024, which is a positive sign of better cash management. Free cash flow has also turned positive, reaching $109.0M in 2024, a significant improvement from $0.7M in 2023. This is indicative of stronger operational performance and better capital expenditure management.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 724.34M | 770.88M | 842.68M | 821.68M | 476.25M | Gross Profit |
| 364.45M | 362.37M | 407.01M | 406.35M | 283.94M | EBIT |
| 107.29M | -87.82M | 65.75M | 87.97M | 58.30M | EBITDA |
| 114.28M | -14.36M | -10.66M | -159.63M | 5.23M | Net Income Common Stockholders |
| -74.44M | -175.52M | -215.84M | -296.83M | -36.56M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 137.56M | 103.43M | 119.34M | 223.54M | 136.34M | Total Assets |
| 1.36B | 1.36B | 1.58B | 1.78B | 1.33B | Total Debt |
| 639.64M | 682.76M | 670.17M | 624.74M | 354.58M | Net Debt |
| 502.08M | 579.33M | 550.83M | 401.19M | 218.24M | Total Liabilities |
| 967.18M | 930.40M | 996.01M | 982.73M | 608.37M | Stockholders Equity |
| 474.85M | 505.69M | 627.04M | 755.55M | 574.45M |
| Cash Flow | Free Cash Flow | |||
| 108.99M | 681.00K | -67.39M | -82.57M | -91.21M | Operating Cash Flow |
| 132.48M | 58.56M | 18.74M | 14.49M | -10.83M | Investing Cash Flow |
| -25.23M | -44.59M | -36.58M | -163.93M | -44.11M | Financing Cash Flow |
| -71.48M | -26.91M | -86.64M | 235.00M | 142.67M |
Cresco Labs Technical Analysis
Negative
1.11
Price Trends
1.21
Negative
1.36
Negative
1.80
Negative
Market Momentum
-0.04
Negative
48.97
Neutral
84.13
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CL, the sentiment is Negative. The current price of 1.11 is above the 20-day moving average (MA) of 1.07, below the 50-day MA of 1.21, and below the 200-day MA of 1.80, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 48.97 is Neutral, neither overbought nor oversold. The STOCH value of 84.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CL.
Cresco Labs Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
50 Neutral | C$492.27M | ― | -15.18% | ― | -4.65% | 59.09% | |
48 Neutral | $6.84B | 1.02 | -53.11% | 2.50% | 16.84% | 0.92% | |
47 Neutral | $347.96M | 27.10 | 4.78% | ― | 16.39% | -98.10% | |
47 Neutral | $183.01M | ― | -18.27% | ― | 7.33% | 84.41% | |
44 Neutral | $621.38M | ― | -7.28% | ― | 18.38% | 86.59% | |
32 Underperform | $257.15M | ― | -84.50% | ― | -16.27% | 76.17% |
* Healthcare Sector Average
Performance Comparison
TSE:CL
Cresco Labs
1.03
-1.92
-65.08%
TLRY
Tilray
0.66
-1.75
-72.61%
TSE:WEED
Canopy Growth
1.33
-9.99
-88.25%
TSE:ACB
Aurora Cannabis
6.30
-0.48
-7.08%
TSE:OGI
OrganiGram Holdings
1.47
-1.30
-46.93%
Cresco Labs Earnings Call Summary
Earnings Call Date: Mar 12, 2025 | % Change Since: 3.74% | Next Earnings Date: May 14, 2025
Earnings Call Sentiment Neutral
Cresco Labs demonstrated strong cash flow and operational improvements, with strategic expansions in key markets. However, these achievements were offset by revenue declines and margin pressures due to price compression and supply constraints. The company is positioning itself for long-term growth, but faces near-term challenges.Highlights
Improved Cash Flow and Profitability
Cresco Labs generated $132 million in operating cash flow in 2024, a $74 million improvement from last year, and a $200 million adjusted EBITDA, a $26 million improvement.
Successful Market Expansion
Cresco Labs strengthened its position in Pennsylvania by adding three new dispensaries and plans to expand in Pennsylvania, Florida, and Ohio in 2025. The company also entered the Kentucky market, securing a cultivation license with 25,000 square feet of canopy.
Retail Performance
Cresco Labs' dispensaries were 30% more productive than the market average, maintaining retail revenue year-over-year despite price compression.
Debt Reduction and Strong Financial Position
Cresco Labs retired $40 million of its 2026 note and plans to refinance, showing strong demand from lenders and a commitment to reducing debt.
Lowlights
Revenue Decline
Cresco Labs reported a 6% year-over-year decline in revenue, primarily due to price compression and supply constraints in key markets like Illinois and Pennsylvania.
Wholesale Revenue Pressure
Wholesale revenue declined sequentially, particularly in Illinois and Pennsylvania, due to price compression and supply constraints.
Margin Pressure
The company experienced a decline in adjusted gross margin to approximately 50% in Q4, down from the previous quarter, impacted by price compression and wholesale pressures.
Supply Constraints
Cresco Labs faced supply constraints in Q4, limiting its ability to capitalize on increased demand due to price compression.
Company Guidance
In the Cresco Labs Fourth Quarter 2024 Earnings Conference Call, the company provided comprehensive financial guidance and strategic initiatives for future growth. They reported a total revenue of $724 million for the full year 2024, reflecting a 6% year-over-year decline, but they maintained their adjusted gross profit dollars flat and managed to reduce adjusted SG&A expenses by $29 million. This resulted in a 15% growth in adjusted EBITDA to $200 million and a 126% improvement in operating cash flow, reaching $132 million. For the fourth quarter, Cresco Labs achieved $176 million in revenue and $42 million in adjusted EBITDA, representing 24% of revenue, despite facing price compression and supply constraints in key markets. Looking forward, Cresco Labs plans to maintain its profitability focus in 2025 by driving productivity in core markets and strategically expanding its footprint with new store openings in Pennsylvania, Florida, and Ohio, as well as entering Kentucky's medical cannabis market with a significant cultivation license. The company is also prioritizing independent retailers over multi-state operators (MSOs) to manage accounts receivable risk and ensure long-term sustainability.Cresco Labs Corporate Events
Business Operations and StrategyFinancial Disclosures
Cresco Labs Achieves Record Financial Performance in 2024
Positive
Mar 12, 2025
Cresco Labs reported record financial results for 2024, with an operating cash flow of $132 million, marking a 126% increase from the previous year. The company achieved a revenue of $724 million and maintained its leading market share in Illinois, Pennsylvania, and Massachusetts. Despite a net loss of $60 million due to one-time charges, Cresco Labs improved its adjusted EBITDA by 15% year-over-year, reflecting its disciplined strategy and strong market positioning.
Business Operations and Strategy
Cresco Labs Expands into Kentucky’s Medical Cannabis Market
Positive
Mar 10, 2025
Cresco Labs has announced a management services agreement to operate a Tier 3 Cultivation License in Kentucky, marking a significant expansion into the state’s newly launched medical cannabis market. This move positions Cresco Labs as a key player in Kentucky’s burgeoning cannabis industry, with the potential to influence market growth and capitalize on projected revenue increases, reinforcing its strategic expansion and investment in high-return growth opportunities.
Financial Disclosures
Cresco Labs to Announce Q4 2024 Financial Results
Neutral
Mar 3, 2025
Cresco Labs announced it will release its fourth quarter and full-year 2024 financial results on March 12, 2025. The announcement includes a conference call and webcast to discuss the results and highlight key business developments, which could impact the company’s market positioning and stakeholder interests.
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.