Aurora Cannabis Inc. Fundamental Analysis
Aurora Cannabis Inc. Fundamental Analysis
Aurora Cannabis Inc. (ACB) shows moderate financial fundamentals with a PE ratio of -3.25, profit margin of -24.14%, and ROE of -14.05%. The company generates $0.3B in annual revenue with strong year-over-year growth of 27.01%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 16.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ACB's fundamental strength across five key dimensions:
Efficiency Score
WeakACB struggles to generate sufficient returns from assets.
Valuation Score
ExcellentACB trades at attractive valuation levels.
Growth Score
ModerateACB shows steady but slowing expansion.
Financial Health Score
ExcellentACB maintains a strong and stable balance sheet.
Profitability Score
WeakACB struggles to sustain strong margins.
Key Financial Metrics
Is ACB Expensive or Cheap?
P/E Ratio
ACB trades at -3.25 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ACB's PEG of -0.02 indicates potential undervaluation.
Price to Book
The market values Aurora Cannabis Inc. at 0.48 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 31.47 times EBITDA. This signals the market has high growth expectations.
How Well Does ACB Make Money?
Net Profit Margin
For every $100 in sales, Aurora Cannabis Inc. keeps $-24.14 as profit after all expenses.
Operating Margin
Core operations generate 0.25 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-14.05 in profit for every $100 of shareholder equity.
ROA
Aurora Cannabis Inc. generates $-12.45 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Aurora Cannabis Inc. generates limited operating cash flow of $-13.33M, signaling weaker underlying cash strength.
Free Cash Flow
Aurora Cannabis Inc. generates weak or negative free cash flow of $-35.59M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.63 in free cash annually.
FCF Yield
ACB converts -14.89% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-3.25
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.48
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.78
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.05
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.94
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.14
vs 25 benchmark
ROA
Return on assets percentage
-0.12
vs 25 benchmark
ROCE
Return on capital employed
0.001
vs 25 benchmark
How ACB Stacks Against Its Sector Peers
| Metric | ACB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -3.25 | 29.03 | Better (Cheaper) |
| ROE | -14.05% | 773.00% | Weak |
| Net Margin | -24.14% | -53616.00% (disorted) | Weak |
| Debt/Equity | 0.05 | 0.50 | Strong (Low Leverage) |
| Current Ratio | 5.94 | 4.44 | Strong Liquidity |
| ROA | -12.45% | -20231.00% (disorted) | Weak |
ACB outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Aurora Cannabis Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-77.11%
Industry Style: Defensive, Growth, Innovation
DecliningEPS CAGR
100.01%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
100.84%
Industry Style: Defensive, Growth, Innovation
High Growth