Canopy Growth (WEED) AI Stock Analysis

• Market Cap: C$583.48M
• Dividend Yield: N/A
• Average Volume (3M): 4.82M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.85
• 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: 338,411,300
• 10 Day Avg. Volume: 2,239,572
• 30 Day Avg. Volume: 4,823,432
• 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$4.31
• Price Target Upside: 121.13% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: C$1.50 ▼(-23.08% Downside)

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 adult-use revenue growth

Sustained 30% YoY growth in the domestic adult-use segment indicates durable market share gains and successful product placement (pre-rolls, vapes). A stronger core market reduces reliance on riskier international expansion and provides a steadier revenue base for reinvesting in R&D and distribution.

Improved liquidity and deleveraging

A cash balance that exceeds debt by $70M and proactive prepayment on term debt materially reduces interest burden and refinancing risk. This stronger liquidity profile improves strategic flexibility, funds operating needs and product investment, and provides a longer runway for execution plans.

Healthy gross margins at product level

A 27.1% gross margin shows the core product economics are viable; with cost discipline and improved supply execution, incremental revenue can flow to the bottom line. Solid product-level margins support scalability and potential recovery in overall profitability as SG&A and execution issues are addressed.

Negative Factors

Severe net losses

A net margin of -186% signals persistent structural losses that erode equity and hinder return generation. Such deep losses require sustained margin improvement or continued capital support; without consistent operating profitability, long-term viability and investor returns remain at risk.

Negative cash flow trends

Ongoing negative operating and free cash flows, with FCF declining nearly 28% TTM, indicate the business is burning cash and not self-funding. This constrains capital allocation, increases reliance on financing or asset sales, and elevates refinancing and liquidity risk over the medium term.

International execution and supply constraints

A 39% YoY drop in international revenue from supply and process issues highlights execution weaknesses and geographic concentration risk. Persistent supply-chain problems in Europe limit diversification and revenue stability, making international expansion a continued structural challenge unless fixed.

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 deleveraging and a reasonable equity ratio, the company's profitability and cash flow generation remain problematic.

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: 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:WEED, the sentiment is Negative. The current price of 1.95 is above the 20-day moving average (MA) of 1.65, above the 50-day MA of 1.72, and above the 200-day MA of 1.82, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 41.00 is Neutral, neither overbought nor oversold. The STOCH value of 15.56 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$1.42B	27.61	3.34%	―	22.20%	―
XLY	67 Neutral	C$191.39M	3.94	31.46%	―	27.38%	―
OGI	54 Neutral	C$301.06M	-10.64	-7.93%	―	62.15%	60.50%
TSND	53 Neutral	C$335.77M	-1.60	-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$341.36M	-5.69	-10.76%	―	23.87%	-19.57%
WEED	47 Neutral	C$583.48M	-0.56	-60.19%	―	-0.67%	58.98%

Canopy Growth Corporate Events

Canopy Growth Sets Date for Q3 Fiscal 2026 Results and Investor Webcast

Canopy Growth has announced it will report financial results for its third quarter of fiscal 2026, covering the period ended December 31, 2025, before markets open on February 6, 2026. Management, including CEO Luc Mongeau and CFO Tom Stewart, will discuss the results on a same-day audio webcast with a replay available through early May, providing investors and other stakeholders an opportunity to assess the company’s performance and strategic progress in the evolving global cannabis market.

The most recent analyst rating on (TSE:WEED) stock is a Hold with a C$1.50 price target. To see the full list of analyst forecasts on Canopy Growth stock, see the TSE:WEED Stock Forecast page.

Canopy Growth Recapitalizes Debt, Extends Maturities to 2031 to Support Growth Strategy

Canopy Growth announced a series of strategic recapitalization transactions designed to strengthen its balance sheet, extend all debt maturities to at least January 2031, and bolster liquidity to support its long-term growth strategy. The company has arranged a new US$150 million term loan maturing in 2031, which will refinance approximately US$101 million of senior secured debt due in 2027, lower its cash interest rate, and provide additional funds for working capital and potential acquisitions. Concurrently, Canopy Growth reached an agreement with an institutional investor to exchange about C$96.4 million of convertible debentures due 2029 for a package including C$55 million of new convertible debentures due 2031, cash, common shares, and share purchase warrants, thereby pushing out its debt obligations while optimizing its capital structure. Management framed the recapitalization as creating a financial runway through 2031, reinforcing the company’s leadership ambitions, particularly in European medical cannabis, and supporting its path toward sustained profitability following its recently announced acquisition of MTL Cannabis Corp.

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 Restructures Debt and Boosts Liquidity in 2031 Recapitalization Plan

Canopy Growth has announced a set of strategic recapitalization transactions designed to materially strengthen its balance sheet, extend all existing debt maturities to at least January 2031, and improve liquidity, leaving the company with an expected cash balance of about C$425 million. The package includes a new US$150 million term loan maturing in 2031 at a lower cash interest rate than its existing senior secured debt, which will be used to refinance roughly US$101 million of 2027 borrowings and support working capital and potential acquisitions, as well as an exchange of about C$96.4 million in 2029 convertible debentures with a single institutional investor for a mix of new 2031 convertible debentures, cash, common shares, and warrants. Management says the recapitalization creates a financial runway through 2031 to back its growth strategy, support rising demand in the European medical cannabis market, and advance its path toward sustained adjusted EBITDA profitability following its acquisition of MTL Cannabis.

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 Acquires MTL Cannabis to Strengthen Market Leadership

Canopy Growth has announced the acquisition of MTL Cannabis, a move expected to create Canada’s leading medical cannabis business and enhance the company’s capacity to meet growing international demand. This strategic acquisition, valued at approximately $125 million, is anticipated to generate significant synergies and improve Canopy Growth’s product quality and operational performance. The transaction will strengthen Canopy Growth’s presence in Québec and expand the national distribution of MTL’s high-quality cannabis products, leveraging MTL’s expertise in cultivation and strong brand recognition.

The most recent analyst rating on (TSE:WEED) stock is a Hold with a C$1.50 price target. To see the full list of analyst forecasts on Canopy Growth stock, see the TSE:WEED Stock Forecast page.

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.

The most recent analyst rating on (TSE:WEED) stock is a Sell with a C$1.50 price target. To see the full list of analyst forecasts on Canopy Growth stock, see the TSE:WEED Stock Forecast page.

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.

The most recent analyst rating on (TSE:WEED) stock is a Buy with a C$8.00 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 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.

The most recent analyst rating on (TSE:WEED) stock is a Sell with a C$1.50 price target. To see the full list of analyst forecasts on Canopy Growth stock, see the TSE:WEED Stock Forecast page.