Canopy Growth (WEED) AI Stock Analysis

• Market Cap: C$655.86M
• Dividend Yield: N/A
• Average Volume (3M): 5.67M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.87
• Revenue Growth: -0.67%
• EPS Growth: 58.98%
• Country: CA
• Employees: 1,029
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.01
• Shares Outstanding: 342,201,420
• 10 Day Avg. Volume: 13,789,599
• 30 Day Avg. Volume: 5,665,715
• PEG Ratio: <0.01
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.53
• P/FCF Ratio: -0.81
• 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: C$5.25
• Price Target Upside: 169.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): -0.31
• Revenue Forecast (FY): C$281.10M

• Rating: 47 Neutral
• Price Target: C$2.00 ▲(2.56% Upside)

Canopy Growth's overall stock score is primarily impacted by its poor financial performance, with significant profitability and cash flow challenges. While technical indicators suggest some short-term bullish momentum, the negative P/E ratio and lack of dividend yield weigh heavily on the valuation. The company's strategic improvements in Canada are promising, but international market challenges and regulatory risks remain concerns.

Positive Factors

Canadian Market Growth

Strong growth in the Canadian market indicates robust demand and effective market penetration, enhancing long-term revenue potential.

Cost Management

Effective cost management improves profitability and cash flow, supporting sustainable financial health and operational efficiency.

Cash Position

A strong cash position relative to debt enhances financial stability and provides flexibility for strategic investments and growth initiatives.

Negative Factors

International Market Challenges

Declining revenues in international markets highlight operational challenges and could limit global expansion and diversification efforts.

Profitability Issues

Persistent profitability issues indicate structural challenges in cost management and revenue generation, impacting long-term viability.

Regulatory Risks

Potential regulatory changes could impact revenue from medical cannabis, posing risks to market stability and growth in Canada.

Canopy Growth Business Overview & Revenue Model

Company Description

Canopy Growth Corporation, together with its subsidiaries, engages in the production, distribution, and sale of cannabis and hemp-based products for recreational and medical purposes primarily in Canada, the United States, and Germany. It operates through two segments, Global Cannabis and Other Consumer Products. The company's products include dried cannabis flower, extracts and concentrates, beverages, gummies, and vapes. It offers its products under the Tweed, 7ACRES, 7ACRES Craft Collective, DOJA, Ace Valley, Quatreau, Deep Space, First + Free, Surity Pro, Spectrum Therapeutics, Vert, Tokyo Smoke, Twd, Martha Stewart CBD, DNA Genetics, BioSteel, Storz & Bickel, This Works, HiWay, Simple Stash, Whisl, and Truverra brands. The company was formerly known as Tweed Marijuana Inc. and changed its name to Canopy Growth Corporation in September 2015. Canopy Growth Corporation was incorporated in 2009 and is headquartered in Smiths Falls, Canada.

How the Company Makes Money

Canopy Growth generates revenue primarily through the sale of cannabis products, including dried flower, oils, and edibles. The company operates in both the medical and recreational cannabis markets, allowing it to tap into various consumer segments. A significant portion of its earnings comes from its direct retail operations, which include physical dispensaries and online sales. Additionally, Canopy Growth has established several strategic partnerships and joint ventures, such as its collaboration with Constellation Brands, which enhances its product offerings and market reach. The company also invests in research and development to create new products and expand its market presence, further contributing to its revenue streams.

Canopy Growth Financial Statement Overview

Summary

Canopy Growth faces significant financial challenges with deeply negative net profit margins and cash flow issues, despite some improvements in debt management. The company struggles with profitability and operational efficiency, necessitating strategic changes for financial stability.

Income Statement

Canopy Growth's income statement shows significant challenges with profitability. The TTM data indicates a gross profit margin of 27.1%, which is a positive aspect, but the net profit margin is deeply negative at -186.4%, reflecting substantial net losses. Revenue growth is minimal at 1.34% TTM, indicating stagnation. The EBIT and EBITDA margins are also negative, suggesting operational inefficiencies and high costs.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.67 TTM, which is an improvement from previous periods, indicating some deleveraging. However, the return on equity is negative, reflecting ongoing losses. The equity ratio stands at 68.8%, showing a reasonable level of equity financing compared to assets, but the company is still struggling to generate returns.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, with a concerning free cash flow growth rate of -27.8% TTM. The operating cash flow to net income ratio is negative, indicating cash flow issues. The free cash flow to net income ratio is slightly above 1, suggesting that while cash flow is negative, it aligns proportionally with net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	278.61M	269.00M	297.15M	333.25M	510.32M	546.65M
Gross Profit	74.58M	79.51M	80.88M	-98.38M	-143.60M	66.96M
EBITDA	-294.03M	-479.31M	-312.83M	-2.88B	-52.98M	-1.55B
Net Income	-385.85M	-598.12M	-657.27M	-3.28B	-310.04M	-1.74B
Balance Sheet
Total Assets	1.07B	917.70M	1.30B	2.44B	5.62B	6.82B
Cash, Cash Equivalents and Short-Term Investments	298.06M	131.47M	203.46M	782.60M	1.37B	2.30B
Total Debt	254.57M	348.40M	668.00M	1.31B	1.50B	1.58B
Total Liabilities	333.82M	430.49M	799.82M	1.68B	1.98B	3.20B
Stockholders Equity	736.01M	487.21M	500.37M	758.43M	3.59B	3.48B
Cash Flow
Free Cash Flow	-96.14M	-177.03M	-285.95M	-568.10M	-593.92M	-639.87M
Operating Cash Flow	-88.43M	-165.75M	-281.95M	-557.55M	-545.81M	-465.73M
Investing Cash Flow	229.00K	-47.79M	241.59M	433.38M	230.82M	-884.11M
Financing Cash Flow	148.40M	148.66M	-465.06M	-19.69M	-45.53M	1.26B

Canopy Growth Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.95
• 50DMA: Positive
• 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:WEED, the sentiment is Negative. The current price of 1.95 is above the 20-day moving average (MA) of 1.87, above the 50-day MA of 1.76, and above the 200-day MA of 1.80, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 47.23 is Neutral, neither overbought nor oversold. The STOCH value of 13.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:WEED.

Canopy Growth Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRON	67 Neutral	C$1.44B	28.68	3.34%	―	22.20%	―
XLY	64 Neutral	C$195.25M	4.23	31.46%	―	27.38%	―
OGI	54 Neutral	C$325.36M	-11.87	-7.93%	―	62.15%	60.50%
TSND	53 Neutral	C$405.87M	-1.95	-43.99%	―	-11.16%	-29.56%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ACB	49 Neutral	C$355.53M	-6.09	-10.76%	―	23.87%	-19.57%
WEED	47 Neutral	C$655.86M	-0.64	-60.19%	―	-0.67%	58.98%

Canopy Growth Corporate Events

Canopy Growth Expands into Canadian Vape Market with Claybourne Gassers Launch

Canopy Growth has launched the Claybourne Gassers, a new line of All-in-One vapes featuring liquid diamonds, in Canada. This launch marks Claybourne’s entry into the Canadian vape market, enhancing its presence in the high-growth vape segment. The new products, which include high-THC vapes and infused pre-rolls, are designed to meet the rising consumer demand for potent and flavorful cannabis products. This expansion is expected to strengthen Canopy Growth’s market position and cater to the accelerating demand in the adult-use cannabis market.

Canopy Growth Expands Medical Cannabis Offerings in Australia

Canopy Growth has expanded its Spectrum Therapeutics portfolio in Australia by introducing new softgel capsules, enhancing its medical cannabis offerings in the region. This expansion strengthens Canopy Growth’s presence in the maturing Australian market, providing patients with more choices and supporting the company’s global medical strategy.

Canopy Growth Strengthens Financial Performance in Q2 FY2026

Canopy Growth reported a significant improvement in its financial performance for the second quarter of fiscal 2026, with a notable increase in Canada adult-use and medical cannabis revenues. The company’s disciplined cost management and strategic focus have resulted in a stronger balance sheet, resolving previous concerns about its ability to continue as a going concern. Despite challenges in international markets and a decrease in revenue from its Storz & Bickel segment, the company has managed to reduce its operating loss and improve its adjusted EBITDA. This financial progress positions Canopy Growth for sustained growth and resilience in the competitive cannabis industry.

Canopy Growth to Announce Q2 Fiscal 2026 Financial Results

Canopy Growth Corporation will announce its second quarter fiscal year 2026 financial results on November 7, 2025. The announcement will be followed by an audio webcast featuring CEO Luc Mongeau and CFO Tom Stewart. This release is significant as it provides insights into the company’s financial health and strategic positioning in the cannabis industry, potentially impacting stakeholders and market perceptions.

Canopy Growth Dedicates DOJA Facility to Canadian Medical Cannabis

Canopy Growth has announced that its DOJA facility in Kelowna, British Columbia, will now exclusively produce craft cannabis for the Spectrum Therapeutics medical portfolio in Canada. This move underscores Canopy Growth’s commitment to the medical cannabis market and aims to strengthen its position by focusing on high-quality, small-batch production for registered medical patients, including veterans.

Canopy Growth Adjourns Shareholder Meeting Due to Lack of Quorum

Canopy Growth Corporation has adjourned its Annual General and Special Meeting of Shareholders due to a lack of quorum and will reconvene on October 10. The company is actively encouraging shareholders to vote before the new meeting date to ensure quorum is met, which is a requirement for its NASDAQ listing. This adjournment allows shareholders additional time to participate in the decision-making process, potentially impacting the company’s governance and future strategies.

Canopy Growth Extends Proxy Voting Deadline to Ensure Quorum

Canopy Growth has extended the proxy voting deadline for its upcoming annual general and special meeting to ensure a quorum is achieved. The extension aims to give shareholders more time to vote, as the company is close to reaching the required quorum for the meeting, which is crucial for transacting business.

Canopy Growth Urges Shareholder Participation Ahead of Key Meeting

Canopy Growth is urging its shareholders to vote in the upcoming annual general and special meeting to help reach the quorum needed to avoid delays and additional costs. The company emphasizes the importance of shareholder participation, regardless of the number of shares owned, to meet the NASDAQ listing requirements and ensure the meeting proceeds as planned.

Canopy Growth Appoints Tom Stewart as CFO to Enhance Financial Strategy

Canopy Growth has appointed Tom Stewart as Chief Financial Officer to strengthen its operational discipline and financial stability. His leadership is expected to drive performance improvements and support the company’s fiscal year 2026 strategy, focusing on structural efficiency and disciplined capital management.

Canopy Growth Enhances Financial Position with Early Loan Prepayment

Canopy Growth has made an early prepayment of US$25 million on its senior secured term loan, completing its obligation under an agreement with lenders. This move is expected to reduce the company’s annual cash interest expense by US$6.5 million, strengthening its financial position and reflecting its strategic focus on debt reduction.

Canopy Growth Strengthens Financial Position with Early Loan Prepayment

Canopy Growth Corporation announced the early prepayment of a US$25 million term loan, completing an aggregate of US$50 million in prepayments under an agreement with its lenders. This financial move is expected to reduce the company’s annual cash interest expense by US$6.5 million, thereby strengthening its financial position and demonstrating prudent fiscal management. The accelerated debt reduction is part of Canopy Growth’s strategy to enhance its financial stability and operational efficiency, potentially benefiting stakeholders by improving the company’s market positioning.

STORZ & BICKEL Unveils VEAZY: A New Compact Vaporizer

STORZ & BICKEL, a subsidiary of Canopy Growth Corporation, has launched the VEAZY, a compact and accessible vaporizer, expanding its premium product portfolio. The VEAZY, available in four colors, offers portability, style, and high performance at a competitive price, aiming to reach a broader audience and enhance the company’s market presence in over 100 countries.