Canopy Growth (WEED) AI Stock Analysis

• Market Cap: $639.30M
• Dividend Yield: N/A
• Average Volume (3M): 5.43M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.97
• Revenue Growth: -4.24%
• EPS Growth: 55.82%
• Country: CA
• Employees: 1,029
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.22
• Shares Outstanding: 311,990,600
• 10 Day Avg. Volume: 2,960,936
• 30 Day Avg. Volume: 5,434,589
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.77
• Enterprise Value/Revenue: 1.80
• Enterprise Value/Gross Profit: 6.64
• Enterprise Value/Ebitda: -1.21
• 1Y Price Target: $7.99
• Price Target Upside: 314.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 50 Neutral
• Price Target: C$2.00 ▲(3.63% Upside)

Canopy Growth's overall stock score reflects significant financial challenges, with ongoing losses and negative cash flows weighing heavily. While technical indicators and valuation suggest potential for recovery, profitability issues and market-specific challenges remain critical risks. Positive revenue growth and cost reductions provide some optimism for future improvements.

Positive Factors

Negative Factors

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, which includes both dried flower and oils for recreational and medical use. The company's revenue model is largely driven by its ability to scale production and leverage its extensive distribution networks. Key revenue streams include direct sales to consumers through retail outlets, wholesale distribution to other retailers, and export sales to international markets where cannabis is legal. Additionally, Canopy Growth has formed significant partnerships, including collaborations with beverage companies to develop cannabis-infused drinks, which further enhance its product offerings and market reach. The company also invests in research and development to innovate within the cannabis space, creating new products that tap into emerging consumer trends.

Canopy Growth Financial Statement Overview

Summary

Canopy Growth faces significant financial challenges with substantial net losses and negative cash flows. Despite slight revenue growth, the company struggles with profitability, as indicated by a negative net profit margin and return on equity. The balance sheet shows moderate leverage, but the overall financial health is concerning.

Income Statement

Canopy Growth's income statement shows significant challenges with profitability. The company has a negative net profit margin of -222.35% in the TTM, indicating substantial losses relative to revenue. Although there is a slight revenue growth of 2.20% in the TTM, the EBIT and EBITDA margins remain deeply negative, reflecting ongoing operational inefficiencies. The gross profit margin is positive at 29.56%, but the overall financial health is concerning due to persistent net losses.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.72 in the TTM, suggesting manageable leverage compared to equity. However, the return on equity is significantly negative at -112.78%, highlighting the company's inability to generate profit from shareholders' equity. The equity ratio stands at 54.05%, indicating a reasonable proportion of equity financing, but the negative ROE is a major concern.

Cash Flow

Cash flow analysis indicates negative operating cash flow and free cash flow in the TTM, with a free cash flow growth rate of -24.79%. The operating cash flow to net income ratio is negative, suggesting cash outflows exceed net losses. The free cash flow to net income ratio is slightly positive at 1.07, indicating some alignment between cash flow and accounting losses, but overall cash flow health is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	274.92M	269.00M	297.15M	333.25M	510.32M	546.65M
Gross Profit	74.52M	79.51M	80.88M	-98.38M	-143.60M	66.96M
EBITDA	-410.31M	-479.31M	-312.83M	-2.88B	-52.98M	-1.55B
Net Income	-512.50M	-598.12M	-657.27M	-3.28B	-310.04M	-1.74B
Balance Sheet
Total Assets	904.67M	917.70M	1.30B	2.44B	5.62B	6.82B
Cash, Cash Equivalents and Short-Term Investments	143.63M	131.47M	203.46M	782.60M	1.37B	2.30B
Total Debt	327.80M	348.40M	668.00M	1.31B	1.50B	1.58B
Total Liabilities	415.69M	430.49M	799.82M	1.68B	1.98B	3.20B
Stockholders Equity	488.98M	487.21M	500.37M	758.43M	3.59B	3.48B
Cash Flow
Free Cash Flow	-133.14M	-177.03M	-285.95M	-568.10M	-593.92M	-639.87M
Operating Cash Flow	-124.31M	-165.75M	-281.95M	-557.55M	-545.81M	-465.73M
Investing Cash Flow	-15.46M	-47.79M	241.59M	433.38M	230.82M	-884.11M
Financing Cash Flow	68.34M	148.66M	-465.06M	-19.69M	-45.53M	1.26B

Canopy Growth Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 1.93 is below the 20-day moving average (MA) of 2.00, above the 50-day MA of 1.79, and below the 200-day MA of 2.31, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 50.14 is Neutral, neither overbought nor oversold. The STOCH value of 43.80 is Neutral, 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	69 Neutral	1.36B	54.57	1.71%	―	31.72%	0.00%
GTII	68 Neutral	2.44B	63.41	1.61%	―	7.06%	-54.16%
TRUL	56 Neutral	1.83B	-8.24	-13.60%	―	4.92%	-64.84%
CURA	56 Neutral	2.62B	-7.88	-28.04%	―	-2.64%	1.65%
ACB	51 Neutral	388.97M	-21.17	-3.65%	―	28.42%	48.33%
WEED	50 Neutral	$639.30M	―	-98.42%	―	-4.24%	55.82%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Canopy Growth Corporate Events

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.

The most recent analyst rating on (TSE:WEED) stock is a Hold with a C$2.00 price target. To see the full list of analyst forecasts on Canopy Growth stock, see the TSE:WEED Stock Forecast page.

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.

The most recent analyst rating on (TSE:WEED) stock is a Hold with a C$2.00 price target. To see the full list of analyst forecasts on Canopy Growth stock, see the TSE:WEED Stock Forecast page.

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.

The most recent analyst rating on (TSE:WEED) stock is a Hold with a C$2.00 price target. To see the full list of analyst forecasts on Canopy Growth stock, see the TSE:WEED Stock Forecast page.

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.

The most recent analyst rating on (TSE:WEED) stock is a Hold with a C$2.00 price target. To see the full list of analyst forecasts on Canopy Growth stock, see the TSE:WEED Stock Forecast page.

ISS Endorses Canopy Growth’s Resolutions Ahead of Shareholder Meeting

Canopy Growth Corporation has received a recommendation from Institutional Shareholder Services Inc. (ISS) for shareholders to vote in favor of all resolutions at the upcoming Annual General and Special Meeting. This endorsement by ISS, a respected proxy advisory firm, is significant as it influences many institutional investors. Achieving a quorum at the meeting is crucial for Canopy Growth to avoid additional costs, and shareholders are urged to vote promptly.

The most recent analyst rating on (TSE:WEED) stock is a Hold with a C$2.00 price target. To see the full list of analyst forecasts on Canopy Growth stock, see the TSE:WEED Stock Forecast page.