Cronos Group (CRON) AI Stock Analysis

• Market Cap: C$1.08B
• Dividend Yield: N/A
• Average Volume (3M): 83.33K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 1.08
• Revenue Growth: 38.16%
• EPS Growth: N/A
• Country: CA
• Employees: 459
• Sector: Healthcare
• Sector Strength: 39
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.03
• Shares Outstanding: 385,419,000
• 10 Day Avg. Volume: 75,981
• 30 Day Avg. Volume: 83,335
• PEG Ratio: 0.10
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.00
• Enterprise Value/Market Cap: 0.17
• Enterprise Value/Revenue: 0.39
• Enterprise Value/Gross Profit: 5.20
• Enterprise Value/Ebitda: -0.80
• 1Y Price Target: C$2.26
• Price Target Upside: -19.02% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: C$3.00 ▲(7.53%Upside)

Cronos Group's overall score is driven by strong financial health and positive earnings call highlights, tempered by operational inefficiencies and mixed technical indicators. The company's strategic initiatives and market positioning support a moderately positive outlook, while potential risks require careful monitoring.

Positive Factors

Financial Health

Cronos Group has robust liquidity and an asset-light model which supports its operations.

Sales Growth

Growth was strong in multiple markets, including a 57% increase in Israel and 183% in other countries.

Negative Factors

Profitability Uncertainty

The timing of profitability is unclear, and the company is not expected to achieve positive adjusted EBITDA before 2026.

Regulatory Challenges

Regulatory challenges, including unclear US federal cannabis reform and changes to the Canadian Cannabis Act, are significant factors that negatively impact the stock's valuation.

Valuation Pressure

Cronos Group's enterprise value is slightly negative, attributed to the lack of US reform and investor restrictions, which pressures the stock compared to its peers.

Cronos Group Business Overview & Revenue Model

Company Description

Cronos Group Inc. is a globally diversified and vertically integrated cannabis company. Headquartered in Toronto, Canada, the company operates within the consumer packaged goods sector, focusing on the production and distribution of cannabis and hemp-derived products. Cronos Group's core products include dried cannabis, cannabis oils, and derivative products such as edibles and topicals. Through its subsidiaries and strategic investments, the company aims to innovate and develop premium consumer brands and products with a focus on quality and consistency.

How the Company Makes Money

Cronos Group generates revenue primarily through the sale of cannabis and cannabis-derived products in both the recreational and medical markets. The company's revenue streams include direct sales to consumers, wholesale distribution to licensed retailers, and international exports to markets where cannabis is legally permitted. Significant partnerships, such as the strategic investment from Altria Group, provide Cronos with financial resources and expertise to expand its market presence and product offerings. Additionally, the company's focus on research and development aims to innovate new products and enhance existing ones, contributing to its revenue growth. Revenue is further supported by the company's expansion into new markets and its commitment to building a diverse portfolio of cannabis brands tailored to different consumer preferences.

Cronos Group Financial Statement Overview

Summary

Cronos Group shows solid revenue growth and improved net profit margins, though operational inefficiencies persist with negative EBIT. The balance sheet is robust with low leverage and high liquidity, but negative free cash flow is a concern. Strategic improvements in operational efficiency and investment allocation are needed.

Income Statement

Cronos Group shows a positive trend in revenue growth with a 6% increase in TTM (Trailing-Twelve-Months) compared to the previous year. Despite this, the company struggles with negative EBIT and EBITDA margins, indicating operational inefficiencies. However, a notable improvement in net profit margin from previous losses to a positive stance suggests some recovery in profitability. Continued focus on cost management is crucial to sustain this trajectory.

Balance Sheet

The balance sheet reflects strong stability with a low debt-to-equity ratio and a high equity ratio of 92% in TTM, indicating robust financial health and low leverage. The significant cash reserves bolster liquidity, although the reduction in total assets over the years might indicate a need for strategic investments to support growth.

Cash Flow

Operating cash flow improved year-on-year, and the company maintains a positive operating cash flow to net income ratio, reflecting efficient cash management. However, negative free cash flow growth signals potential pressure on cash reserves if investment activities continue at the current rate. Strategies to optimize capital expenditure could enhance cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	124.59M	117.61M	87.24M	91.90M	74.44M	46.72M
Gross Profit	34.45M	25.20M	11.91M	11.97M	-17.53M	-25.83M
EBITDA	-38.73M	-50.21M	-71.80M	-91.27M	-192.28M	-82.73M
Net Income	49.44M	41.08M	-73.96M	-168.73M	-396.70M	-74.62M
Balance Sheet
Total Assets	1.15B	1.17B	1.14B	1.21B	1.40B	1.93B
Cash, Cash Equivalents and Short-Term Investments	837.82M	858.80M	861.53M	877.72M	1.00B	1.29B
Total Debt	1.82M	2.02M	2.55M	3.88M	9.81M	9.81M
Total Liabilities	39.06M	55.33M	43.96M	72.05M	63.46M	217.51M
Stockholders Equity	1.07B	1.06B	1.10B	1.14B	1.34B	1.71B
Cash Flow
Free Cash Flow	-7.57M	5.69M	-46.26M	-93.98M	-165.88M	-177.85M
Operating Cash Flow	18.95M	18.84M	-42.84M	-88.95M	-153.62M	-142.46M
Investing Cash Flow	-69.76M	175.15M	-59.50M	-1.84M	-28.90M	20.15M
Financing Cash Flow	-3.52M	-1.23M	-1.03M	-2.90M	-13.44M	-5.46M

Cronos Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 2.79 is above the 20-day moving average (MA) of 2.65, above the 50-day MA of 2.69, and above the 200-day MA of 2.77, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 63.21 is Neutral, neither overbought nor oversold. The STOCH value of 82.47 is Negative, 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
CURA	66 Neutral	C$855.81M	―	-25.08%	―	-0.11%	11.22%
CRON	65 Neutral	C$1.08B	15.58	4.61%	―	38.16%	―
TRUL	55 Neutral	$1.02B	―	-12.39%	―	7.23%	64.93%
CL	52 Neutral	$303.38M	―	-17.34%	―	-4.38%	46.68%
Sector *	52 Neutral	$7.45B	0.30	-61.93%	2.28%	16.62%	1.04%
ACB	50 Neutral	C$340.29M	106.52	3.05%	―	16.39%	-98.10%
WEED	42 Neutral	C$344.73M	―	-122.10%	―	-18.39%	35.21%

Cronos Group Corporate Events

Cronos Group Reports Strong Shareholder Support at 2025 Annual Meeting

Cronos Group Inc. announced the results of its 2025 Annual Meeting of Shareholders, where 71.87% of common shares were represented. All nominated directors were elected with over 92.3% approval, and shareholders approved an advisory resolution on executive compensation and the appointment of Davidson & Company LLP as the independent auditor for 2025. These results reflect strong shareholder support and are expected to positively impact the company’s governance and operational strategies.

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.

Cronos Group to Host Virtual 2025 Shareholders Meeting

Cronos Group Inc. announced that its 2025 Annual Meeting of Shareholders will be held virtually on June 20, 2025, allowing registered shareholders and proxyholders to participate online. This virtual format ensures accessibility for participants regardless of location, offering opportunities for engagement through questions and voting. The meeting’s replay will be available on the company’s website, reflecting Cronos’s commitment to transparency and stakeholder engagement.