Canopy Growth (WEED) AI Stock Analysis

• Market Cap: C$537.77M
• Dividend Yield: N/A
• Average Volume (3M): 4.28M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.56
• Revenue Growth: -4.24%
• EPS Growth: 55.82%
• Country: CA
• Employees: 1,029
• Sector: Healthcare
• Sector Strength: 47
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.22
• Shares Outstanding: 236,064,540
• 10 Day Avg. Volume: 5,746,847
• 30 Day Avg. Volume: 4,281,635
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$4.78
• Price Target Upside: 133.28% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 50 Neutral
• Price Target: C$2.00 ▼(-2.44% Downside)

Canopy Growth's overall stock score is primarily impacted by its weak financial performance, characterized by significant losses and negative cash flows. While there are positive signs in technical analysis and some optimism from the earnings call, the negative valuation metrics and financial challenges weigh heavily on the score.

Positive Factors

Cost Reduction

Management has identified new cost-reduction plans that are expected to lead to cost savings of at least C$20mn over the next 12-18 months.

Negative Factors

Execution Problems

Canopy has lingering execution problems, such as reliable product supply, resource allocation, supply chain coordination, and poor alignment between consumer demand and products sold.

Regulatory Challenges

Recent regulatory changes in Poland are putting near-term pressure on its international operations.

Stock Price Decline

Canopy's stock price has plunged significantly due to its two recent ATM programs to raise cash and other unfavorable factors.

Canopy Growth Business Overview & Revenue Model

Company Description

Canopy Growth Corporation is a leading Canadian cannabis company that operates in the production and distribution of cannabis and hemp-based products. Founded in 2013, the company operates across various sectors, including recreational and medical cannabis products, as well as CBD-infused beverages and edibles. Canopy Growth is known for its diverse portfolio of brands such as Tweed, Spectrum Therapeutics, and Houseplant, catering to a wide range of consumer preferences in both the domestic and international markets.

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: Positive
• Last Price: 2.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 Positive. The current price of 2.05 is above the 20-day moving average (MA) of 1.79, above the 50-day MA of 1.70, and below the 200-day MA of 2.57, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 60.29 is Neutral, neither overbought nor oversold. The STOCH value of 73.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:WEED.

Canopy Growth Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.83B	-0.18	-40.10%	2.29%	21.46%	-2.03%
WEED	50 Neutral	C$537.77M	―	-98.42%	―	-4.24%	55.82%
ACB	―	$298.77M	97.05	-0.70%	―	―	―
CRON	―	$977.31M	53.68	1.73%	―	―	―
CURLF	―	$2.42B	―	-24.93%	―	―	―
GTBIF	―	$2.07B	73.42	1.63%	―	―	―
TCNNF	―	$1.71B	―	-12.60%	―	―	―

Canopy Growth Corporate Events

Canopy Growth Urges Shareholders to Vote in Upcoming Meeting

Canopy Growth Corporation has announced the mailing and filing of proxy materials for its 2025 annual general and special meeting of shareholders. The company emphasizes the importance of shareholder voting to avoid additional costs and achieve a quorum, which is essential for the meeting to proceed. Shareholders will vote on several key issues, including the election of directors, auditor re-appointment, a share consolidation proposal, and an advisory vote on executive compensation. The board recommends voting in favor of all resolutions.

Canopy Growth Expands 7ACRES Brand to Australia

Canopy Growth has expanded its global medical cannabis portfolio by launching its 7ACRES brand in Australia, introducing two high-THC sativa strains, Ultra Jack and Jack Frost. This expansion enhances Canopy Growth’s existing product offerings in Australia, which already include Tweed flower products and Spectrum Therapeutics oils, and underscores the company’s focus on building a scalable medical platform across international markets.

Canopy Growth Strengthens European Market Strategy with New Appointment

Canopy Growth has appointed Miles Worne as Managing Director of European Markets, aiming to strengthen its presence in Europe and support its global medical strategy. This strategic move highlights the company’s focus on long-term growth in Europe, leveraging Mr. Worne’s extensive experience in the cannabis and healthcare sectors to enhance operations and market execution in the region.

Canopy Growth to Reduce Debt and Interest Expenses with Strategic Prepayments

Canopy Growth announced an agreement to make early prepayments on its Senior Secured Term Loan, reducing it by US$50 million by March 2026. This move is expected to lower the company’s annual cash interest expense by US$6.5 million, enhancing financial flexibility for sustainable growth. The agreement also facilitates additional funding for Acreage Holdings, a part of Canopy USA’s portfolio, highlighting Canopy Growth’s strategic efforts to strengthen its financial position and support its subsidiaries.

Canopy Growth to Announce Q1 Fiscal 2026 Financial Results

Canopy Growth Corporation announced it will release its first quarter fiscal year 2026 financial results on August 8, 2025. Following the release, the company will host an audio webcast with CEO Luc Mongeau and Interim CFO Tom Stewart. This announcement highlights Canopy Growth’s ongoing transparency with stakeholders and its strategic focus on the U.S. market, which may influence its market positioning and stakeholder relations.

Storz & Bickel Wins ‘Equipment Provider of the Year’ at 2025 Cannabis Awards

Storz & Bickel, a subsidiary of Canopy Growth, has been named ‘Equipment Provider of the Year’ at the 2025 Business of Cannabis Awards, highlighting their innovation and excellence in vaporization technology. This recognition underscores Storz & Bickel’s leadership in the industry, with products like the VOLCANO and VENTY vaporizers making significant impacts in both medical and recreational markets. The award enhances the company’s reputation for precision engineering and product reliability, further solidifying its position in the global cannabis vaporization market.

Canopy Growth Reports FY2025 Financial Results with Strategic Focus on Growth and Profitability

Canopy Growth Corporation reported its financial results for the fourth quarter and fiscal year 2025, highlighting a 4% increase in Canada cannabis revenue in Q4, driven by a 13% growth in medical cannabis. The company reduced its total debt by $293 million, or 49%, during FY2025 and initiated cost reduction measures expected to save at least $20 million annually. Despite a decrease in net revenue and gross margin, the company remains focused on accelerating growth and profitability through strategic restructuring and operational improvements, aiming for positive adjusted EBITDA and free cash flow in the near term.