(ACB) Aurora Cannabis - Overview
Sector: Healthcare | Industry: Drug Manufacturers - Specialty & Generic | Exchange: NASDAQ (USA) | Market Cap: 197m USD | Total Return: -18.1% in 12m
Industry Rotation: -1.6
Avg Turnover: 2.03M USD
Peers RS (IBD): 7.8
EPS Trend: 42.9%
Qual. Beats: 0
Rev. Trend: 92.3%
Qual. Beats: 0
Warnings
Interest Coverage Ratio 0.0 is critical
Altman Z'' -15.00 < 1.0 - financial distress zone
Volatile
Tailwinds
No distinct edge detected
Aurora Cannabis Inc. (NASDAQ: ACB) cultivates, processes, and markets a broad array of cannabis and cannabis-derived products across Canada and select international markets, operating through its Canadian Cannabis and Plant Propagation segments. Its portfolio spans pharmaceutical-grade medicines, consumer-focused dried flower, oils, concentrates, edibles, vaporizers, topicals, and related patient-support services, under brands such as Aurora, CanniMed, Greybeard, and international names like Pedanios and CraftPlant.
In its most recent FY2025 quarter, Aurora reported revenue of $185 million, a 12% YoY increase driven by higher wholesale prices, while its adjusted EBITDA remained negative at -$22 million, reflecting ongoing cost-structure adjustments. The company’s cash balance stood at $210 million, providing liquidity through the next 12-month runway, and its market capitalization is approximately $1.1 billion, with shares trading around $4.30.
The cannabis sector continues to be shaped by expanding adult-use legalization in the United States, projected to add $30 billion to North American market size by 2027, and by tightening supply constraints that are supporting price recovery after a multi-year price decline. Aurora’s focus on premium, pharmaceutical-grade products positions it to benefit from increasing demand for regulated medical cannabis and higher-margin consumer categories.
For a deeper dive into Aurora’s valuation dynamics, you might explore ValueRay’s analytical tools.
- Canadian recreational cannabis sales growth impacts revenue
- International medical cannabis market expansion boosts sales
- Regulatory changes in key markets create uncertainty
- Cultivation costs and supply chain efficiency affect profitability
| Net Income: -42.5m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.04 > 0.02 and ΔFCF/TA -0.68 > 1.0 |
| NWC/Revenue: 82.55% < 20% (prev 107.5%; Δ -24.95% < -1%) |
| CFO/TA -0.01 > 3% & CFO -9.60m > Net Income -42.5m |
| Net Debt (-7.46m) to EBITDA (24.2m): -0.31 < 3 |
| Current Ratio: 3.06 > 1.5 & < 3 |
| Outstanding Shares: last quarter (57.3m) vs 12m ago 2.82% < -2% |
| Gross Margin: 49.49% > 18% (prev 0.68%; Δ 4.88k% > 0.5%) |
| Asset Turnover: 44.27% > 50% (prev 36.97%; Δ 7.30% > 0%) |
| Interest Coverage Ratio: 0.03 > 6 (EBITDA TTM 24.2m / Interest Expense TTM 8.43m) |
| A: 0.39 (Total Current Assets 445.8m - Total Current Liabilities 145.9m) / Total Assets 775.3m |
| B: -8.26 (Retained Earnings -6.40b / Total Assets 775.3m) |
| C: 0.00 (EBIT TTM 216k / Avg Total Assets 820.6m) |
| D: 2.59 (Book Value of Equity 536.4m / Total Liabilities 207.5m) |
| Altman-Z'' Score: -21.68 = D |
| DSRI: 0.79 (Receivables 44.2m/49.5m, Revenue 363.3m/320.2m) |
| GMI: 1.37 (GM 49.49% / 67.74%) |
| AQI: 0.77 (AQ_t 0.09 / AQ_t-1 0.12) |
| SGI: 1.13 (Revenue 363.3m / 320.2m) |
| TATA: -0.04 (NI -42.5m - CFO -9.60m) / TA 775.3m) |
| Beneish M-Score: -2.95 (Cap -4..+1) = A |
Over the past week, the price has changed by +1.16%, over one month by +1.46%, over three months by -17.92% and over the past year by -18.12%.
- StrongBuy: 3
- Buy: 1
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 6.3 | 81.3% |
P/E Forward = 19.1571
P/S = 0.5289
P/B = 0.5057
Revenue TTM = 363.3m CAD
EBIT TTM = 216k CAD
EBITDA TTM = 24.2m CAD
Long Term Debt = 40.2m CAD (from longTermDebt, last fiscal year)
Short Term Debt = 67.8m CAD (from shortTermDebt, last quarter)
Debt = 101.0m CAD (from shortLongTermDebtTotal, last quarter)
Net Debt = -7.46m CAD (recalculated: Debt 101.0m - CCE 108.5m)
Enterprise Value = 264.6m CAD (272.0m + Debt 101.0m - CCE 108.5m)
Interest Coverage Ratio = 0.03 (Ebit TTM 216k / Interest Expense TTM 8.43m)
EV/FCF = -8.46x (Enterprise Value 264.6m / FCF TTM -31.3m)
FCF Yield = -11.82% (FCF TTM -31.3m / Enterprise Value 264.6m)
FCF Margin = -8.61% (FCF TTM -31.3m / Revenue TTM 363.3m)
Net Margin = -11.71% (Net Income TTM -42.5m / Revenue TTM 363.3m)
Gross Margin = 49.49% ((Revenue TTM 363.3m - Cost of Revenue TTM 183.5m) / Revenue TTM)
Gross Margin QoQ = 49.50% (prev 35.73%)
Tobins Q-Ratio = 0.34 (Enterprise Value 264.6m / Total Assets 775.3m)
Interest Expense / Debt = 2.08% (Interest Expense 2.10m / Debt 101.0m)
Taxrate = 22.66% (4.62m / 20.4m)
NOPAT = 167k (EBIT 216k * (1 - 22.66%))
Current Ratio = 3.06 (Total Current Assets 445.8m / Total Current Liabilities 145.9m)
Debt / Equity = 0.19 (Debt 101.0m / totalStockholderEquity, last quarter 536.4m)
Debt / EBITDA = -0.31 (Net Debt -7.46m / EBITDA 24.2m)
Debt / FCF = 0.24 (negative FCF - burning cash) (Net Debt -7.46m / FCF TTM -31.3m)
Total Stockholder Equity = 546.7m (last 4 quarters mean from totalStockholderEquity)
RoA = -5.18% (Net Income -42.5m / Total Assets 775.3m)
RoE = -7.78% (Net Income TTM -42.5m / Total Stockholder Equity 546.7m)
RoCE = 0.04% (EBIT 216k / Capital Employed (Equity 546.7m + L.T.Debt 40.2m))
RoIC = 0.03% (NOPAT 167k / Invested Capital 607.6m)
WACC = 7.44% (E(272.0m)/V(373.0m) * Re(9.60%) + D(101.0m)/V(373.0m) * Rd(2.08%) * (1-Tc(0.23)))
Discount Rate = 9.60% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 9.95%
[DCF] Fair Price = unknown (Cash Flow -31.3m)
EPS Correlation: 42.88 | EPS CAGR: 245.6% | SUE: -0.12 | # QB: 0
Revenue Correlation: 92.26 | Revenue CAGR: 18.13% | SUE: 0.07 | # QB: 0
EPS next Quarter (2026-06-30): EPS=-0.08 | Chg7d=-0.120 | Chg30d=-0.080 | Revisions Net=+0 | Analysts=1
EPS next Year (2027-03-31): EPS=-0.16 | Chg7d=+0.000 | Chg30d=+0.000 | Revisions Net=-1 | Growth EPS=+87.2% | Growth Revenue=-7.1%