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Canopy Growth
(NASDAQ:WEED)
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Rating:47Neutral
Price Target:
C$1.50
▼(-4.46% Downside)
Action:Reiterated
Date:06/16/26
The score is held down primarily by weak financial performance (shrinking revenue, large losses, and negative free cash flow) and bearish technical momentum (below key moving averages with negative MACD). The latest earnings call provides a meaningful offset via FY2027 profitability guidance, cost savings, and improved liquidity, but execution and margin/policy risks remain material.
Positive Factors
Improved liquidity & lower leverage
A materially stronger balance sheet and extended debt maturities to 2031 reduce solvency and refinancing risk, providing multi-quarter runway to execute turnaround plans, invest in integration and product launches, and withstand regulatory timing variability while pursuing positive adjusted EBITDA.
Negative Factors
Negative free cash flow
Persistent negative operating and free cash flow means the business remains dependent on external financing or asset sales to fund operations and capex. Until sustained positive cash generation appears, liquidity actions must be maintained, constraining strategic flexibility and increasing execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved liquidity & lower leverage
A materially stronger balance sheet and extended debt maturities to 2031 reduce solvency and refinancing risk, providing multi-quarter runway to execute turnaround plans, invest in integration and product launches, and withstand regulatory timing variability while pursuing positive adjusted EBITDA.
Read all positive factors
Canopy Growth (WEED) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$613.59M
Dividend YieldN/A
Average Volume (3M)1.44M
Price to Earnings (P/E)―
Beta (1Y)2.38
Revenue Growth5.80%
EPS Growth85.58%
CountryCA
Employees1,029
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.86
Shares Outstanding418,370,200
10 Day Avg. Volume1,465,226
30 Day Avg. Volume1,435,383
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.65
Price to Sales (P/S)1.60
P/FCF Ratio-6.54
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$2.78Price Target Upside77.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.3
Revenue Forecast (FY)C$348.14M
Canopy Growth Business Overview & Revenue Model
Company Description
Canopy Growth Corporation, through its various operating units, is actively involved in the cultivation, marketing, and distribution of cannabis and hemp-derived products. These offerings serve both recreational consumers and medical patients acro...
How the Company Makes Money
Canopy Growth makes money primarily by selling regulated cannabis and cannabis-derived products through a mix of business-to-business and business-to-consumer channels, depending on the market’s regulatory structure. In Canada’s adult-use market, ...
Canopy Growth Earnings Call Summary
Earnings Call Date:Feb 06, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 07, 2026
Earnings Call Sentiment Positive
The call conveyed clear progress across multiple fronts: a materially stronger balance sheet (post-quarter recap), meaningful cost savings, sequential stabilization and growth internationally, and strong momentum in key product lines (medical, adult-use pre-rolls/vapes, and Storz & Bickel VEAZY). At the same time, the company faces margin pressures (cannabis and S&B gross margins down ~3ppt YoY), a still-negative adjusted EBITDA (narrowed to −$3M), a negative free cash flow outflow (−$19M) and near-term policy and tariff headwinds (veterans reimbursement reduction and tariffs). Overall, positives (liquidity, cost savings, revenue growth in core channels, narrowing EBITDA loss and clear path to FY27 profitability) outweigh the lowlights, though material risks remain in margins and policy that management is actively addressing.Positive Updates
Stronger Balance Sheet and Liquidity
Ended Q3 with $371M in cash and cash equivalents and a net cash position of $146M; completed a post-quarter USD 150M recapitalization that improved near-term liquidity and extended debt maturities to 2031 (company cited roughly $425M post-recap in Q&A).
Negative Updates
Gross Margin Pressure — Cannabis
Cannabis gross margin declined to 25% in Q3 from 28% in Q3 a year ago (a ~3 percentage-point decline), primarily due to lower international sales and a change in sales mix within Canadian adult-use.
Read all updates
Q3-2026 Updates
Positive
Negative
Stronger Balance Sheet and Liquidity
Ended Q3 with $371M in cash and cash equivalents and a net cash position of $146M; completed a post-quarter USD 150M recapitalization that improved near-term liquidity and extended debt maturities to 2031 (company cited roughly $425M post-recap in Q&A).
Read all positive updates
Company Guidance
Management guided to achieve positive adjusted EBITDA during fiscal 2027, expecting sequential improvements in cannabis gross margins starting in Q4 and into FY2027 with a near‑term blended gross‑margin target in the mid‑ to high‑30s% post‑MTL (MTL acquisition to be consolidated from close; expected cash consideration ~C$40–50M). The guidance is supported by Q3 results: total cannabis net revenue of $52M (Canada medical $23M, +15% Y/Y; Canada adult‑use $23M, +8% Y/Y; international +22% Q/Q), cannabis gross margin of 25% (vs. 28% LY), Storz & Bickel revenue $23M (+45% sequentially) with 37% gross margin (vs. 40% LY), narrowest adjusted EBITDA loss to date of $3M, $29M of annualized cost savings identified, SG&A ex‑acquisition down 12% Y/Y, free cash flow outflow of $19M (vs. $28M LY), cash and short‑term investments of $371M and net cash of $146M (bolstered by a post‑period US$150M recap that extended debt maturities to 2031 and increased post‑recap liquidity to roughly $425M), while preserving ATM capacity and targeting improved inventory turns and tighter capital allocation.Canopy Growth Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
48
Neutral
Cash Flow
30
Negative
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 284.60M | 269.00M | 297.15M | 333.25M | 475.70M |
| Gross Profit | 69.67M | 79.51M | 80.88M | -98.38M | -143.60M |
| EBITDA | -188.22M | -479.31M | -312.83M | -2.88B | -52.98M |
| Net Income | -262.91M | -598.12M | -657.27M | -3.28B | -310.04M |
Balance Sheet | |||||
| Total Assets | 1.12B | 917.70M | 1.30B | 2.44B | 5.62B |
| Cash, Cash Equivalents and Short-Term Investments | 369.73M | 131.47M | 210.77M | 773.22M | 1.38B |
| Total Debt | 278.71M | 348.40M | 668.00M | 1.41B | 1.64B |
| Total Liabilities | 421.14M | 430.49M | 799.82M | 1.68B | 1.98B |
| Stockholders Equity | 697.59M | 487.21M | 500.37M | 758.43M | 3.59B |
Cash Flow | |||||
| Free Cash Flow | -69.76M | -177.03M | -285.95M | -568.10M | -593.92M |
| Operating Cash Flow | -63.81M | -165.75M | -281.95M | -557.55M | -545.81M |
| Investing Cash Flow | -21.35M | -47.79M | 241.59M | 433.38M | 230.82M |
| Financing Cash Flow | 332.41M | 148.66M | -465.06M | -19.69M | -45.53M |
Canopy Growth Technical Analysis
Negative
1.57
Price Trends
1.47
Negative
1.47
Negative
1.62
Negative
Market Momentum
-0.03
Negative
47.30
Neutral
55.88
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 1.57 is above the 20-day moving average (MA) of 1.39, above the 50-day MA of 1.47, and below the 200-day MA of 1.62, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 47.30 is Neutral, neither overbought nor oversold. The STOCH value of 55.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:WEED.
Canopy Growth Risk Analysis
Canopy Growth disclosed 85 risk factors in its most recent earnings report. Canopy Growth reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Canopy Growth Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | C$250.54M | 7.29 | 19.79% | ― | 22.20% | 47.62% | |
67 Neutral | C$1.46B | -1,266.48 | -0.19% | ― | 27.16% | -103.47% | |
53 Neutral | C$358.13M | -2.37 | -82.13% | ― | -12.41% | -2.33% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | C$613.59M | -1.63 | -35.48% | ― | 5.80% | 85.58% | |
46 Neutral | C$244.67M | -1.78 | -14.05% | ― | -6.61% | -3770.67% | |
44 Neutral | C$197.20M | -7.88 | -6.83% | ― | 41.27% | -281.56% |
* Healthcare Sector Average
TSE:WEED
Canopy Growth
1.38
-0.25
-15.34%
TSE:OGI
Organigram Global
1.45
-0.45
-23.95%
TSE:ACB
Aurora Cannabis
3.95
-2.13
-35.03%
TSE:XLY
Auxly Cannabis Group
0.18
0.06
52.17%
TSE:CRON
Cronos Group
3.92
1.19
43.59%
TSE:TSND
TerrAscend Corp
0.96
0.58
152.63%
Canopy Growth Corporate Events
Business Operations and StrategyProduct-Related Announcements
Canopy Growth Targets Value Segment With High-THC Deelish Brand Launch
Positive
Mar 31, 2026
Canopy Growth has expanded its recreational portfolio with Deelish, a new value-focused cannabis brand targeting everyday consumers who prioritize high THC at accessible prices. The brand debuts with rotating high-potency genetics in dried flower ...
Business Operations and Strategy
Canopy Growth’s Apollo Clinics Named Top Medical Cannabis Provider by Toronto Star Readers
Positive
Mar 30, 2026
Canopy Growth’s Apollo Cannabis Clinics, a fully virtual medical cannabis network, has been voted Best Medical Cannabis Clinic in the 2025 Toronto Star Readers’ Choice Awards. The recognition reflects strong patient trust in ApolloR...
Business Operations and StrategyExecutive/Board Changes
Canopy Growth’s Storz & Bickel Taps Veteran Insider as New Managing Director
Positive
Mar 27, 2026
Canopy Growth’s German vaporization subsidiary Storz Bickel, a global leader in high-end, medically certified cannabis vaporizers, is undergoing a leadership transition after 25 years under co-founder Jürgen Bickel. The company, renown...
Business Operations and StrategyM&A Transactions
Canopy Growth Closes MTL Cannabis Deal to Cement Lead in Medical Market
Positive
Mar 16, 2026
Canopy Growth has completed its acquisition of MTL Cannabis, creating what it says is Canada’s leading medical cannabis business by revenue and significantly expanding its premium flower supply. The deal deepens the company’s presence ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.