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Cronos Group
(NASDAQ:CRON)
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Rating:75Outperform
Price Target:
C$5.00
▲(25.94% Upside)
Action:Upgraded
Date:08/10/26
The score is driven primarily by strengthening financial performance—especially the exceptionally conservative balance sheet and the shift to positive operating and free cash flow—reinforced by a positive earnings call highlighting record results and strong liquidity. Technicals are supportive with clear uptrend signals. The main drag is valuation, with a deeply negative P/E and no dividend yield data, alongside ongoing risks around margin variability and regulatory/execution uncertainty (Israel investigation and CanAdelaar timing).
Positive Factors
Balance Sheet Strength
Cronos’s extremely low leverage (~0.1% debt-to-equity) and roughly $1.07B of equity against $1.18B of assets provide durable financial flexibility. This conservative capital structure supports sustained R&D, international expansion, opportunistic M&A or buybacks and cushions regulatory or industry shocks over months.
Negative Factors
Regulatory Risk in Israel
A new anti-dumping investigation in Israel poses a structural regulatory and trade risk in a high-growth market where Cronos recently reported consecutive record quarters and material greenhouse/R&D investments. Potential duties, restrictions, or reputational impacts could slow revenue growth and raise costs for months or longer.
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Positive Factors
Negative Factors
Balance Sheet Strength
Cronos’s extremely low leverage (~0.1% debt-to-equity) and roughly $1.07B of equity against $1.18B of assets provide durable financial flexibility. This conservative capital structure supports sustained R&D, international expansion, opportunistic M&A or buybacks and cushions regulatory or industry shocks over months.
Read all positive factors
Cronos Group (CRON) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.61B
Dividend YieldN/A
Average Volume (3M)113.79K
Price to Earnings (P/E)16.7
Beta (1Y)1.26
Revenue Growth36.21%
EPS Growth264.71%
CountryCA
Employees610
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.19
Shares Outstanding368,412,870
10 Day Avg. Volume99,052
30 Day Avg. Volume113,794
Financial Highlights & Ratios
PEG Ratio0.83
Price to Book (P/B)0.92
Price to Sales (P/S)6.74
P/FCF Ratio6.63K
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$4.73Price Target Upside19.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.15
Revenue Forecast (FY)C$199.00M
Cronos Group Business Overview & Revenue Model
Company Description
Cronos Group Inc. functions as a diversified global cannabinoid enterprise. Within the United States, it manufactures, promotes, and distributes a variety of hemp-derived supplements and cosmetic products. These items are available under its Lord ...
How the Company Makes Money
Cronos Group primarily makes money by selling cannabis and cannabinoid-derived products in regulated markets. Its core revenue stream is product revenue from the commercialization of branded offerings (e.g., cannabis flower and other consumer cann...
Cronos Group Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive operational and financial picture: record revenue, gross profit, and adjusted EBITDA, strong brand performance (notably Spinach), meaningful international growth (Israel and Germany), and a robust cash position. Key risks and headwinds include a new anti-dumping investigation in Israel, modest OpEx increases, margin variability tied to seasonality and mix, and timing uncertainty around the CanAdelaar closing. On balance, the positive operational momentum and strong financials outweigh the highlighted risks.Positive Updates
Record Financial Results
Consolidated net revenue of $53.0M, up 58% year-over-year; gross profit of $28.5M, up 96% year-over-year; record adjusted EBITDA of $13.1M, an improvement of $11.4M year-over-year.
Negative Updates
New Anti-Dumping Investigation in Israel
The Israeli Trade Levies Commissioner opened a new investigation into alleged dumping of medical cannabis imports from Canada; company disputes the allegations and will cooperate, but this represents regulatory and geopolitical risk in a key growth market.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Financial Results
Consolidated net revenue of $53.0M, up 58% year-over-year; gross profit of $28.5M, up 96% year-over-year; record adjusted EBITDA of $13.1M, an improvement of $11.4M year-over-year.
Read all positive updates
Company Guidance
The company’s forward-looking commentary centered on near-term M&A and capital-allocation priorities and reiterated caution on margin variability: management expects the CanAdelaar acquisition to close in H2 2026 pending Dutch regulatory clearance, will remain active in its share‑repurchase program (about $60M of repurchases in the quarter), and plans to deploy capital opportunistically while funding growth from a strong liquidity position (cash, cash equivalents, short‑term investments and non‑current interest‑bearing deposits of $827M, plus $17M loan receivable, $15M current tax receivable and $5M other investments) and positive operating cash flow ($24M in Q2); those decisions are underpinned by record Q2 operating momentum (consolidated net revenue $53M, +58% YoY; gross profit $28.5M, +96% YoY; adjusted EBITDA $13.1M, +$11.4M YoY), segment trends (Cronos Israel’s 10th consecutive record quarter, Israel sales +60% YoY / +32% constant currency; international ex‑Israel net revenue +88% YoY led by Germany; Canada brand retail sales +25% YoY vs industry +1%), and a reminder that gross margins may fluctuate quarter‑to‑quarter and are best viewed over a trailing‑12‑month period.Cronos Group Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
88
Very Positive
Cash Flow
76
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 179.03M | 149.15M | 117.50M | 87.03M | 87.54M | 64.02M |
| Gross Profit | 81.23M | 61.70M | 30.45M | 11.88M | 15.58M | -17.45M |
| EBITDA | 54.16M | -2.94M | -45.37M | -72.28M | -93.81M | -150.79M |
| Net Income | 69.73M | -9.61M | 41.04M | -73.79M | -170.26M | -392.81M |
Balance Sheet | ||||||
| Total Assets | 1.18B | 1.19B | 1.17B | 1.14B | 1.21B | 1.40B |
| Cash, Cash Equivalents and Short-Term Investments | 797.02M | 830.28M | 858.80M | 861.53M | 877.72M | 1.00B |
| Total Debt | 1.29M | 1.51M | 2.02M | 2.55M | 3.88M | 9.81M |
| Total Liabilities | 62.41M | 54.08M | 55.33M | 43.96M | 72.05M | 63.46M |
| Stockholders Equity | 1.07B | 1.09B | 1.06B | 1.10B | 1.14B | 1.34B |
Cash Flow | ||||||
| Free Cash Flow | 49.70M | 151.61K | 5.69M | -46.26M | -93.98M | -165.88M |
| Operating Cash Flow | 60.07M | 26.32M | 18.84M | -42.84M | -88.95M | -153.62M |
| Investing Cash Flow | -341.01M | -77.90M | 175.15M | -59.50M | -1.84M | -28.90M |
| Financing Cash Flow | -48.26M | -20.25M | -1.23M | -1.03M | -2.90M | -13.44M |
Cronos Group Technical Analysis
Positive
3.97
Price Trends
3.96
Positive
3.81
Positive
3.70
Positive
Market Momentum
0.12
Negative
62.23
Neutral
82.35
Negative
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 3.97 is below the 20-day moving average (MA) of 4.09, above the 50-day MA of 3.96, and above the 200-day MA of 3.70, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 62.23 is Neutral, neither overbought nor oversold. The STOCH value of 82.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CRON.
Cronos Group Risk Analysis
Cronos Group disclosed 92 risk factors in its most recent earnings report. Cronos Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cronos Group Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$1.61B | 16.73 | 6.46% | ― | 36.21% | 264.71% | |
65 Neutral | C$2.20B | 13.27 | 6.82% | ― | 3.81% | 344.13% | |
57 Neutral | C$3.48B | -69.02 | -4.47% | ― | 1.50% | 81.84% | |
53 Neutral | C$620.03M | -2.06 | -29.85% | ― | 6.81% | 85.26% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | C$502.31M | -2.55 | -28.27% | ― | -5.83% | -115.39% |
* Healthcare Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.