Cronos Group (CRON) AI Stock Analysis

• Market Cap: C$1.47B
• Dividend Yield: N/A
• Average Volume (3M): 296.46K
• Price to Earnings (P/E): 28.6
• Beta (1Y): 1.40
• 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: 648,370
• 30 Day Avg. Volume: 296,456
• 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): -0.12
• Revenue Forecast (FY): C$188.73M

• Rating: 67 Neutral
• Price Target: C$4.00 ▲(14.94% Upside)

Cronos Group's overall score reflects strong earnings performance and technical momentum, offset by valuation concerns and cash flow challenges. The company's robust market position in Canada and Israel, coupled with a strong balance sheet, supports future growth, but operational profitability and cash flow issues need resolution.

Positive Factors

Market Expansion

The acquisition of CanAdelaar positions Cronos to expand into the European market, leveraging the Netherlands' adult-use cannabis pilot program, which enhances its global footprint and long-term growth potential.

Strong Balance Sheet

A strong balance sheet with substantial cash reserves and no debt provides Cronos with financial stability and flexibility to invest in growth opportunities and weather industry volatility.

Brand Leadership

The market leadership of the Spinach brand in Canada demonstrates Cronos' competitive advantage in brand recognition and consumer preference, supporting sustained revenue growth.

Negative Factors

Cash Flow Challenges

Ongoing cash flow challenges may limit Cronos' ability to fund operations and growth initiatives internally, potentially necessitating external financing, which could impact long-term financial health.

Operational Profitability

Persistent issues with operational profitability, as indicated by a negative EBIT margin, suggest inefficiencies that could hinder Cronos' ability to achieve sustainable profit margins over time.

Flower Supply Constraints

Supply constraints in the core flower category could impact Cronos' ability to meet demand and maintain market share, potentially affecting revenue growth and competitive positioning.

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: Neutral
• Last Price: 3.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 3.48 is below the 20-day moving average (MA) of 3.78, below the 50-day MA of 3.59, and above the 200-day MA of 3.11, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 49.00 is Neutral, neither overbought nor oversold. The STOCH value of 28.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:CRON.

Cronos Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRON	67 Neutral	C$1.47B	28.60	3.34%	―	22.20%	―
TRUL	60 Neutral	C$2.00B	-10.87	-9.95%	―	4.27%	3.41%
CURA	58 Neutral	C$2.96B	-7.90	-27.61%	―	-3.38%	-31.35%
CL	52 Neutral	C$720.77M	-7.99	-11.79%	―	-6.48%	22.63%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ACB	49 Neutral	C$366.87M	-6.19	-10.76%	―	23.87%	-19.57%
WEED	47 Neutral	C$677.97M	-0.70	-60.19%	―	-0.67%	58.98%

Cronos Group Corporate Events

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.