Canopy Growth (WEED) AI Stock Analysis

• Market Cap: C$611.65M
• Dividend Yield: N/A
• Average Volume (3M): 6.00M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.88
• 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: 2,781,558
• 30 Day Avg. Volume: 5,996,837
• 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$5.26
• Price Target Upside: 169.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• 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

Strong Canadian market growth

Sustained double-digit growth in Canada (30% adult-use; 17% medical) shows the company’s core market is recovering and its product mix resonates with consumers. Durable domestic demand reduces reliance on volatile exports and supports revenue scale and distribution leverage over quarters.

Improved liquidity and deleveraging

Having $298M cash that exceeds debt by $70M and a $50M term‑loan prepayment materially strengthens solvency and lowers interest burden. This deleveraging provides lasting runway to fund operations, invest in product initiatives, and absorb near-term volatility without immediate refinancing.

Structural cost reductions

Achieving over $21M in annualized SG&A savings indicates management can implement durable cost discipline. Lower structural overhead improves operating leverage, narrows adjusted EBITDA losses, and speeds the path to profitability as revenue trends stabilize.

Negative Factors

Entrenched unprofitability

A net margin of -186% TTM and negative ROE signal structural unprofitability beyond one-off items. Despite decent gross margin, persistent operating losses and impairments erode shareholder returns and imply multi-quarter corrective action is required to restore sustainable profitability.

Negative cash flow dynamics

Ongoing negative operating and free cash flows with FCF down 27.8% TTM show persistent cash burn that constrains reinvestment and heightens refinancing risk. Without consistent positive cash generation, balance sheet gains may be temporary and capital allocation remains limited.

International and regulatory exposure

A 39% YoY slump in international revenue due to supply chain issues reveals fragile overseas execution. Combined with proposed Canadian reimbursement cuts for veterans, these structural operational and regulatory risks can shrink addressable markets and depress long-term revenue and margin visibility.

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: 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 1.87, above the 50-day MA of 1.73, and above the 200-day MA of 1.80, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 45.50 is Neutral, neither overbought nor oversold. The STOCH value of 18.08 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	27.99	3.34%	―	22.20%	―
XLY	67 Neutral	C$195.25M	4.23	31.46%	―	27.38%	―
OGI	54 Neutral	C$317.26M	-11.72	-7.93%	―	62.15%	60.50%
TSND	53 Neutral	C$398.49M	-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$333.99M	-5.73	-10.76%	―	23.87%	-19.57%
WEED	47 Neutral	C$611.65M	-0.64	-60.19%	―	-0.67%	58.98%

Canopy Growth Corporate Events

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.

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.

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 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.

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.