Curaleaf Holdings (CURA) AI Stock Analysis

• Market Cap: $905.65M
• Dividend Yield: N/A
• Average Volume (3M): 453.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.70
• Revenue Growth: -0.11%
• EPS Growth: 11.22%
• Country: CA
• Employees: 5,519
• Sector: Healthcare
• Sector Strength: 46
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.10
• Shares Outstanding: 660,736,630
• 10 Day Avg. Volume: 547,585
• 30 Day Avg. Volume: 453,819
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 3.58
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 5.07
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.41
• Price Target Upside: 374.57% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Curaleaf Holdings' stock score reflects a blend of moderate financial performance, neutral technical indicators, and challenging valuation metrics. The company's stable revenue and international growth are positive, but persistent net losses and increasing leverage weigh on the score. The earnings call suggests optimism for future growth, yet significant challenges remain in domestic markets and debt management.

Positive Factors

Market Expansion

Expansion into new markets is anticipated to increase revenue streams.

Operational Efficiency

Operational efficiencies are expected to drive margins.

Sales Growth

Sales growth in 2Q24 was largely driven by wholesale revenue growth as the international segment continues to gain traction.

Negative Factors

Competition

The company is facing stiff competition in the cannabis industry.

Financial Performance

EBITDA margins fell short of expectations due to higher G&A spend and heavy promotions at the start of the quarter.

Regulatory Challenges

There are concerns about regulatory challenges in the cannabis market.

Curaleaf Holdings Business Overview & Revenue Model

Company Description

Curaleaf Holdings, Inc. is a leading multi-state cannabis operator in the United States, engaged in the cultivation, production, and distribution of cannabis products. The company operates in both the medical and adult-use cannabis sectors, providing a wide range of products including flower, edibles, topicals, and vape products. With a strong presence in numerous states, Curaleaf has established a significant retail footprint with its dispensaries, catering to a diverse customer base seeking cannabis for health, wellness, and recreational purposes.

How the Company Makes Money

Curaleaf Holdings generates revenue primarily through the sale of cannabis products across its retail dispensaries and wholesale channels. The company's key revenue streams include the direct sale of proprietary branded products, such as Curaleaf, Select, and Grassroots, which are available in various forms including flower, pre-rolls, oils, and edibles. Additionally, Curaleaf earns revenue through wholesale operations where it supplies cannabis products to other dispensaries and retailers. Strategic partnerships and acquisitions also play a vital role in expanding Curaleaf's market presence and product offerings, contributing to its earnings. The company's vertically integrated model ensures control over the entire supply chain, from cultivation to distribution, optimizing cost efficiencies and product quality.

Curaleaf Holdings Financial Statement Overview

Summary

Curaleaf Holdings demonstrates stable revenue but struggles with profitability. The income statement shows persistent net losses, while the balance sheet indicates rising leverage. Cash flow management is strong, with improving operating cash flow, but challenges remain in achieving profitability and reducing debt.

Income Statement

Curaleaf Holdings shows a mixed performance in its income statement. Although the revenue has been relatively stable over the years, there is a concerning trend of negative net income. The company has managed to maintain a consistent gross profit margin, but the net profit margin remains negative, indicating challenges in achieving profitability. The EBIT and EBITDA margins reflect operational efficiency struggles, with EBIT showing significant volatility.

Balance Sheet

The balance sheet of Curaleaf indicates moderate financial stability with a debt-to-equity ratio that has increased over time, suggesting rising leverage. The equity ratio has decreased, reflecting a reduction in financial flexibility and increased reliance on debt. The return on equity remains negative, highlighting ongoing profitability challenges.

Cash Flow

Cash flow analysis reveals some positive trends, such as improving operating cash flow, which indicates better cash generation from core operations. Despite this, free cash flow has shown volatility, with significant capital expenditures impacting overall cash flow health. The ratios of operating cash flow and free cash flow to net income are strong, suggesting effective cash management despite net income losses.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.34B	1.35B	1.34B	1.21B	626.64M
	Gross Profit
639.25M	614.45M	579.03M	687.59M	390.51M
	EBIT
20.20M	42.88M	-10.25M	175.63M	63.68M
	EBITDA
233.14M	238.76M	220.97M	278.98M	128.59M
	Net Income Common Stockholders
-215.42M	-281.20M	-376.93M	-109.13M	-61.33M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
93.03M	91.82M	163.18M	299.33M	73.54M
	Total Assets
2.95B	3.10B	3.40B	3.26B	2.39B
	Total Debt
853.82M	883.55M	931.91M	753.65M	577.71M
	Net Debt
760.80M	800.33M	768.73M	454.32M	504.16M
	Total Liabilities
1.96B	1.93B	2.00B	1.45B	1.01B
	Stockholders Equity
861.21M	1.05B	1.28B	1.76B	1.38B
Cash Flow		Free Cash Flow
64.42M	5.05M	-91.96M	-205.92M	-113.92M
	Operating Cash Flow
162.57M	75.26M	46.40M	-33.96M	12.36M
	Investing Cash Flow
-93.83M	-78.69M	-228.62M	-163.97M	-197.11M
	Financing Cash Flow
-54.24M	-67.02M	50.54M	424.80M	224.08M

Curaleaf Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CURA, the sentiment is Negative. The current price of 1.14 is below the 20-day moving average (MA) of 1.24, below the 50-day MA of 1.31, and below the 200-day MA of 2.79, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 42.49 is Neutral, neither overbought nor oversold. The STOCH value of 6.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CURA.

Curaleaf Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRON	72 Outperform	$971.26M	16.98	4.61%	―	38.16%	―
CURA	57 Neutral	$905.65M	―	-25.08%	―	-0.11%	11.22%
Sector *	52 Neutral	$5.15B	3.56	-42.52%	2.83%	14.56%	-0.53%
ACB	50 Neutral	$348.51M	27.31	4.78%	―	16.39%	-98.10%
OGI	49 Neutral	$190.65M	―	-18.27%	―	7.33%	84.41%
WEED	47 Neutral	$320.53M	―	-84.50%	―	-16.27%	―

Curaleaf Holdings Corporate Events

Curaleaf Holdings Reports Q1 2025 Results with Strong International Growth

Curaleaf Holdings reported a total revenue of $310 million for the first quarter of 2025, with a notable international revenue growth of 74% year-over-year. Despite a decrease in net revenue compared to the previous year, the company achieved a 50% adjusted gross margin and continued to expand its product offerings and retail locations, demonstrating resilience and strategic positioning for long-term success.

Spark’s Take on TSE:CURA Stock

According to Spark, TipRanks’ AI Analyst, TSE:CURA is a Neutral.

Curaleaf Holdings’ overall stock score reflects a blend of moderate financial performance, neutral technical indicators, and challenging valuation metrics. The company’s stable revenue and international growth are positive aspects, but the persistent net losses, increasing leverage, and lack of dividend yield weigh down the score. The earnings call suggests optimism for future growth, yet significant challenges remain in domestic markets and debt management.

To see Spark’s full report on TSE:CURA stock, click here.

Curaleaf Holdings to Announce Q1 2025 Financial Results

Curaleaf Holdings announced it will release its first quarter 2025 financial and operational results on May 8, 2025, after market close. The company will host a conference call and webcast to discuss these results, providing stakeholders with insights into its performance and strategic direction. This announcement is significant as it offers an opportunity for investors and analysts to evaluate Curaleaf’s market positioning and operational effectiveness in the evolving cannabis industry.

Spark’s Take on TSE:CURA Stock

According to Spark, TipRanks’ AI Analyst, TSE:CURA is a Neutral.

Curaleaf Holdings exhibits stable revenue and strong cash flow management amidst profitability challenges and rising debt. Technical indicators suggest bearish momentum, and valuation metrics reflect ongoing losses. Although the company shows potential for growth through international expansion and product innovation, price compression and debt remain significant risks.

To see Spark’s full report on TSE:CURA stock, click here.

Curaleaf Holdings Reports 2024 Financial Results and Strategic Initiatives

Curaleaf Holdings reported its fourth quarter and full year 2024 financial results, highlighting a slight sequential increase in fourth quarter revenue to $331 million and a gross margin of 48%. Despite a net loss of $71.8 million for the quarter, the company generated significant operating and free cash flow, and aims to expand its leadership position through its ‘Return to our ROOTS’ initiative, focusing on organic growth and innovation.