Auxly Cannabis Group (XLY) AI Stock Analysis

• Market Cap: C$195.49M
• Dividend Yield: N/A
• Average Volume (3M): 979.68K
• Price to Earnings (P/E): 4.2
• Beta (1Y): 1.89
• Revenue Growth: 27.38%
• EPS Growth: N/A
• Country: CA
• Employees: 388
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.01
• Shares Outstanding: 1,367,038,800
• 10 Day Avg. Volume: 1,296,089
• 30 Day Avg. Volume: 979,678
• PEG Ratio: 0.04
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.39
• P/FCF Ratio: 3.44
• 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$0.25
• Price Target Upside: 78.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: C$0.16 ▲(12.14% Upside)

The score is driven by improved financial performance and a low P/E, signaling a meaningful TTM profitability turnaround and discounted valuation. These positives are tempered by weak technical momentum and elevated consistency risk from historically volatile earnings and less robust cash conversion.

Positive Factors

Revenue Growth

The company's consistent revenue growth indicates a strong market position and effective product offerings, supporting long-term business sustainability.

Cash Flow Management

Improved cash flow management enhances financial flexibility, allowing for reinvestment in growth initiatives and reducing reliance on external financing.

Leverage Management

Improved leverage management reduces financial risk and enhances the company's ability to navigate economic fluctuations, supporting long-term stability.

Negative Factors

Net Losses

Ongoing net losses can hinder profitability and limit the company's ability to invest in growth opportunities, posing a challenge to long-term financial health.

EBIT Margin Absence

Lack of EBIT margin suggests operational inefficiencies, which could impact the company's ability to achieve sustainable profitability over time.

Equity Ratio

A lower equity ratio indicates potential vulnerability to financial stress, which could affect the company's long-term resilience and growth capacity.

Auxly Cannabis Group Business Overview & Revenue Model

Company Description

Auxly Cannabis Group Inc. operates as a consumer-packaged goods company in the cannabis products market in Canada. The company focuses on developing, manufacturing, and distributing cannabis products for wellness and recreational consumers. It offers cannabis products under various forms, including vape catridges, dried flower, concentrates, chocolates, soft chews, oil drops, capsules, topicals, and hard candy under the brands KOLAB PROJECT, Dosecann, BACK FORTY, and Foray. The company was formerly known as Cannabis Wheaton Income Corp. and changed its name to Auxly Cannabis Group Inc. in June 2018. Auxly Cannabis Group Inc. was incorporated in 1987 and is based in Toronto, Canada.

How the Company Makes Money

Auxly Cannabis Group generates revenue primarily through the sale of cannabis products to both wholesale and retail markets. The company has established a revenue model that includes multiple key streams: direct sales of cannabis products through its own retail outlets, partnerships with licensed retailers, and wholesale distribution to other cannabis brands. Additionally, Auxly has engaged in strategic partnerships and collaborations with other companies within the industry to enhance its product offerings and expand its market reach. The company's focus on product innovation and compliance with regulatory requirements also contributes to its ability to attract and retain customers, ultimately driving revenue growth.

Auxly Cannabis Group Financial Statement Overview

Summary

Auxly Cannabis Group is showing financial improvement with revenue growth and stronger cash flow positions. However, ongoing net losses and zero EBIT remain concerns. The company is improving operational efficiency and leverage management, but profitability and debt management need continued focus.

Income Statement

Auxly Cannabis Group has shown a positive revenue growth trend, with a recent increase from $101 million in 2023 to $122 million in 2024. However, despite improved gross profit margins, the company is still experiencing net losses, which affects the net profit margin negatively. The EBITDA margin has turned positive, indicating some operational improvements, but the absence of EBIT margin due to zero EBIT is a concern.

Balance Sheet

The company has improved its equity position, with shareholder equity increasing significantly from 2023 to 2024. The debt-to-equity ratio has improved as well, indicating better leverage management. However, the equity ratio shows room for improvement, reflecting moderate financial stability amidst high total liabilities.

Cash Flow

Auxly Cannabis Group has exhibited strong free cash flow growth, with free cash flow growing from $6.61 million in 2023 to $14.02 million in 2024. The operating cash flow to net income ratio is positive, showing that the company is generating cash from operations despite net losses. The improvement in free cash flow to net income ratio reflects better cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	146.00M	122.33M	101.08M	94.47M	83.83M	50.80M
Gross Profit	86.93M	59.93M	21.28M	17.92M	19.29M	11.14M
EBITDA	53.87M	24.38M	-10.89M	-93.40M	-13.64M	-57.18M
Net Income	45.34M	-16.35M	-44.51M	-130.29M	-45.91M	-87.43M
Balance Sheet
Total Assets	276.43M	261.53M	261.90M	331.82M	450.42M	378.96M
Cash, Cash Equivalents and Short-Term Investments	30.62M	18.50M	15.75M	14.78M	14.89M	21.50M
Total Debt	65.99M	68.47M	159.04M	193.59M	190.10M	124.68M
Total Liabilities	103.91M	145.87M	210.86M	246.13M	242.31M	187.43M
Stockholders Equity	172.52M	115.66M	51.05M	90.41M	212.52M	195.94M
Cash Flow
Free Cash Flow	15.86M	14.02M	6.61M	-11.67M	-50.01M	-53.86M
Operating Cash Flow	18.57M	16.78M	8.21M	-2.48M	-49.63M	-33.13M
Investing Cash Flow	-2.60M	-445.00K	-1.56M	1.18M	17.33M	-14.53M
Financing Cash Flow	-4.44M	-13.59M	-5.68M	1.18M	26.40M	24.74M

Auxly Cannabis Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:XLY, the sentiment is Neutral. The current price of 0.14 is below the 20-day moving average (MA) of 0.15, below the 50-day MA of 0.15, and above the 200-day MA of 0.13, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.21 is Neutral, neither overbought nor oversold. The STOCH value of 34.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:XLY.

Auxly Cannabis Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRON	67 Neutral	C$1.35B	26.93	3.34%	―	22.20%	―
XLY	67 Neutral	C$195.49M	4.17	31.46%	―	27.38%	―
TRUL	60 Neutral	$2.28B	-12.18	-9.95%	―	4.27%	3.41%
OGI	54 Neutral	C$302.41M	-11.03	-7.93%	―	62.15%	60.50%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ACB	49 Neutral	C$334.55M	-5.73	-10.76%	―	23.87%	-19.57%
WEED	47 Neutral	C$601.71M	―	-60.19%	―	-0.67%	58.98%

Auxly Cannabis Group Corporate Events

Auxly Caps Strong 2025 With New Product Wins and Sets 2026 Growth Plan

Auxly reported that 2025 was a strong year marked by market share gains, with the company ranking as the third-largest licensed producer in Canada and its Back Forty label holding the top cannabis brand position nationwide. Key innovations included the successful launch of Back Forty Backpackers pre-rolls, which quickly became top-10 SKUs and expanded across multiple provinces, and the introduction of the South Point brand, which offers craft-style dried flower and pre-rolls from its Southwestern Ontario facility aimed at providing elevated quality without premium pricing. Looking ahead to 2026, Auxly plans to invest $10 million to $12 million in growth-related capital expenditures to support continued domestic expansion and prepare for direct access to international markets, with management emphasizing that these investments are expected to be funded from operating cash flow while preserving flexibility for shareholder-accretive capital allocation.

The most recent analyst rating on (TSE:XLY) stock is a Hold with a C$0.16 price target. To see the full list of analyst forecasts on Auxly Cannabis Group stock, see the TSE:XLY Stock Forecast page.

Auxly Cannabis Group Reports Robust Q3 2025 Financial Results

Auxly Cannabis Group reported a strong financial performance for the third quarter of 2025, with net revenues increasing by 20% to $39.9 million and a significant rise in net income by 533% to $20.5 million. The company’s strategic focus on product innovation and cost control has resulted in a 48% increase in Adjusted EBITDA, and the repayment of high-interest debt is expected to save approximately $900,000 in annualized interest expenses, positioning Auxly for continued growth and profitability.

Auxly Cannabis Group to Announce Q3 2025 Financial Results

Auxly Cannabis Group Inc. has announced that it will release its financial results for the third quarter of 2025 on November 13, before the markets open. This announcement is significant as it provides stakeholders with insights into the company’s financial performance over the past nine months, potentially impacting investor confidence and market positioning.

Auxly Cannabis Group Repays $5 Million Loan, Strengthening Financial Position

Auxly Cannabis Group Inc. announced the full repayment of its $5 million inventory loan to GrassHopper Capital Inc., using cash on hand. This repayment is expected to save the company approximately $900,000 in annualized interest expenses, allowing Auxly to strategically allocate capital towards organic growth investments and strengthening its balance sheet, thereby enhancing its financial stability and operational leverage.

Auxly Cannabis Group to Present at Toronto’s Planet MicroCap Showcase

Auxly Cannabis Group Inc. announced its participation in the Planet MicroCap Showcase in Toronto, where CEO Hugo Alves will present and engage with investors. This event is part of Auxly’s strategy to strengthen its market presence and connect with potential investors, reflecting its commitment to growth and leadership in the cannabis industry.