Cronos Group (CRON) AI Stock Analysis

• Market Cap: C$1.34B
• Dividend Yield: N/A
• Average Volume (3M): 122.43K
• Price to Earnings (P/E): 26.7
• Beta (1Y): 1.35
• Revenue Growth: 22.20%
• EPS Growth: N/A
• Country: CA
• Employees: 459
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.10
• Shares Outstanding: 382,893,280
• 10 Day Avg. Volume: 126,508
• 30 Day Avg. Volume: 122,430
• PEG Ratio: -0.12
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 6.53
• P/FCF Ratio: 134.90
• 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): -0.13
• Revenue Forecast (FY): C$192.72M

• Rating: 64 Neutral
• Price Target: C$3.50 ▲(0.57% Upside)

Cronos Group's overall stock score reflects a mixed financial performance with improving revenue and gross margins but challenges in profitability and cash flow. Technical analysis shows a neutral trend, while the earnings call provides a positive outlook with strategic growth initiatives. The valuation is moderate, with no dividend yield to attract income investors.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Strong Balance Sheet

A robust balance sheet with no debt and significant cash reserves provides financial flexibility and resilience against market fluctuations.

Product Innovation

Continued product innovation enhances competitive advantage and aligns with consumer preferences, driving future growth and market share.

Negative Factors

Cash Flow Challenges

Negative cash flow growth indicates potential liquidity issues, which could hinder investment in growth initiatives and operational flexibility.

Profitability Challenges

Sustained profitability challenges may limit reinvestment capabilities and affect long-term financial health and shareholder value.

Flower Supply Constraints

Supply constraints in key product categories can impact revenue growth and market positioning, requiring strategic adjustments to mitigate risks.

Cronos Group Business Overview & Revenue Model

Company Description

Cronos Group Inc. is a leading Canadian cannabis company that focuses on the production and distribution of cannabis and cannabis-derived products. Operating in both the adult-use and medical cannabis sectors, Cronos Group is dedicated to innovative product development and has established a strong presence in international markets. The company offers a diverse portfolio of products, including dried flower, oils, capsules, and other cannabis-infused items, while leveraging advanced technology and research to enhance its product offerings.

How the Company Makes Money

Cronos Group generates revenue primarily through the sale of cannabis products in both domestic and international markets. The company's revenue streams include wholesale sales to licensed distributors and retailers, direct-to-consumer sales through its own online platforms, and partnerships with other companies to co-develop and market cannabis products. Significant partnerships, such as those with major players in the pharmaceutical and consumer goods sectors, allow Cronos to expand its reach and diversify its product offerings. Additionally, the company benefits from the growing legalization of cannabis in various regions, enabling it to tap into new markets and increase its customer base.

Cronos Group Financial Statement Overview

Summary

Cronos Group shows mixed financial performance. Revenue growth and gross profit margins are improving, but the company struggles with operational profitability and cash flow generation. The balance sheet is strong with low leverage, but cash flow issues need addressing for long-term sustainability.

Income Statement

Cronos Group has shown a positive revenue growth rate of 1.68% in the TTM, indicating a recovery from previous declines. The gross profit margin has improved to 36.82%, reflecting better cost management. However, the company still faces challenges with profitability, as evidenced by a negative EBIT margin of -25.76% and a net profit margin of 14.17%, which is skewed by non-operational factors.

Balance Sheet

The balance sheet is strong with a very low debt-to-equity ratio of 0.19%, suggesting minimal leverage and financial risk. The return on equity is modest at 1.72%, indicating limited profitability relative to shareholder equity. The equity ratio is healthy, showing a solid capital structure.

Cash Flow

The cash flow situation is concerning, with a negative free cash flow growth rate of -39.03% in the TTM. The operating cash flow to net income ratio is 0.53, indicating that cash generation from operations is not fully covering net income. The free cash flow to net income ratio is negative, highlighting cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	132.65M	117.50M	87.03M	87.54M	64.02M	46.57M
Gross Profit	55.68M	30.45M	11.88M	15.58M	-17.45M	-25.75M
EBITDA	22.19M	-45.37M	-72.28M	-93.81M	-150.79M	-173.09M
Net Income	36.13M	41.04M	-73.79M	-170.26M	-392.81M	-72.90M
Balance Sheet
Total Assets	1.18B	1.17B	1.14B	1.21B	1.40B	1.93B
Cash, Cash Equivalents and Short-Term Investments	824.17M	858.80M	861.53M	877.72M	1.00B	1.29B
Total Debt	1.74M	2.02M	2.55M	3.88M	9.81M	9.81M
Total Liabilities	46.36M	55.33M	43.96M	72.05M	63.46M	217.51M
Stockholders Equity	1.08B	1.06B	1.10B	1.14B	1.34B	1.71B
Cash Flow
Free Cash Flow	-5.74M	5.69M	-46.26M	-93.98M	-165.88M	-177.85M
Operating Cash Flow	21.75M	18.84M	-42.84M	-88.95M	-153.62M	-142.46M
Investing Cash Flow	-84.37M	175.15M	-59.50M	-1.84M	-28.90M	20.15M
Financing Cash Flow	-12.79M	-1.23M	-1.03M	-2.90M	-13.44M	-5.46M

Cronos Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.48
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CRON, the sentiment is Positive. The current price of 3.48 is above the 20-day moving average (MA) of 3.45, below the 50-day MA of 3.54, and above the 200-day MA of 3.02, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 52.36 is Neutral, neither overbought nor oversold. The STOCH value of 75.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CRON.

Cronos Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRON	64 Neutral	C$1.34B	26.70	3.34%	―	22.20%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CL	48 Neutral	C$516.11M	―	-11.79%	―	-6.48%	22.63%
ACB	47 Neutral	C$361.20M	―	-10.76%	―	23.87%	-19.57%
TRUL	46 Neutral	C$1.66B	―	-9.95%	―	4.27%	3.41%
CURA	45 Neutral	C$2.85B	―	-27.61%	―	-3.38%	-31.35%
WEED	40 Underperform	C$582.16M	-0.57	-60.19%	―	-0.67%	58.98%

Cronos Group Corporate Events

Cronos Group Achieves Record Revenue and Profit in Q3 2025

Cronos Group Inc. is a global cannabinoid company focused on cannabis research, technology, and product development, with a diverse brand portfolio including Spinach, PEACE NATURALS, and Lord Jones. In its third-quarter 2025 earnings report, Cronos Group announced record levels of net revenue, gross profit, and Adjusted EBITDA, driven by strong performance in Israel and strategic cost management. Key financial highlights include a 9% increase in net revenue quarter-over-quarter, a significant rise in gross profit due to favorable inventory dynamics, and a notable improvement in Adjusted EBITDA. The company also emphasized the continued market leadership of its PEACE NATURALS brand in Israel and the Spinach brand in Canada, particularly in the edibles and vape categories. Looking ahead, Cronos Group remains well-positioned for growth with a strong balance sheet and plans to expand its global footprint and product offerings, supported by the recent completion of the Cronos GrowCo expansion.

Cronos Group Achieves Record Q3 2025 Results, Strengthens Global Position

Cronos Group reported record levels of consolidated net revenue, gross profit, and Adjusted EBITDA for the third quarter of 2025, driven by strong performance in Israel and strategic cost management. The company maintains a robust financial position with $824 million in cash and investments, enabling global expansion and innovation. Despite temporary supply constraints in Canada, Cronos is well-positioned for future growth with its expanded cultivation capacity at Cronos GrowCo.

The most recent analyst rating on (TSE:CRON) stock is a Hold with a C$4.00 price target. To see the full list of analyst forecasts on Cronos Group stock, see the TSE:CRON Stock Forecast page.

Cronos Group Terminates VP Lloyd Wilson for Cause

On August 29, 2025, Cronos Group Inc. terminated Lloyd Wilson, the Vice President, Controller, and Principal Accounting Officer, for cause, effective immediately. The termination was not related to the company’s financial or operating results, internal controls, or any disagreements regarding financial or reporting practices.

The most recent analyst rating on (TSE:CRON) stock is a Hold with a C$4.00 price target. To see the full list of analyst forecasts on Cronos Group stock, see the TSE:CRON Stock Forecast page.

Cronos Group’s Earnings Call Highlights Growth and Expansion

Cronos Group’s latest earnings call exuded a positive sentiment, underscored by impressive revenue growth and significant improvements in gross margins. The company showcased strong brand performance and international expansion, although it continues to grapple with supply constraints. Despite these challenges, Cronos maintains a robust financial position and is strategically investing for future growth.

Cronos Group Reports Strong Q2 2025 Performance

Cronos Group Inc. is a global cannabinoid company focused on cannabis research, technology, and product development, with a diverse brand portfolio including Spinach, PEACE NATURALS, and Lord Jones.

Cronos Group Appoints New Principal Accounting Officer

On August 7, 2025, Cronos Group announced the appointment of Lloyd Wilson as the new Principal Accounting Officer, succeeding James McGinness. Wilson brings over 20 years of financial leadership experience, previously serving as Corporate Controller at Vital Farms, Inc. Additionally, Cronos reported a 21% year-over-year increase in net revenue for Q2 2025, driven by strong demand in international markets, particularly in Israel where PEACE NATURALS® remains the top cannabis brand. The company highlighted its robust financial health and strategic positioning for accelerated growth in the latter half of 2025.

The most recent analyst rating on (TSE:CRON) stock is a Sell with a C$2.00 price target. To see the full list of analyst forecasts on Cronos Group stock, see the TSE:CRON Stock Forecast page.