CANADA CANNABIS INVESTMENT SERIES – part three.
As announced last week, four significant Canada focused public cannabis companies are to report earnings and issue other reports, especially post-legalization commentaries --- Aurora Cannabis Inc., Tilray Inc Cronos Group Inc., and Canopy Growth Corp. Today’ public company review is Cronos Group Inc.
Cronos Group Inc., formerly known as PharmaCan Capital Corp., is a principal investment firm. The firm seeks to invest in companies either licensed or actively seeking a license, to produce medical marijuana according to Canada's Marihuana for Medical Purposes Regulations. Cronos Group Inc. was incorporated in January 2013 and is based in Toronto, Canada with an additional office in Toronto, Canada.
Cronos Group Inc. (CRON) $8.12
earnings report: CRON reports Q3 revs of CAD 3.76 mln vs. $1.314 mln last year and two-analyst estimate of CAD 3.56 mln, Q3 GAAP loss per share of CAD 0.04 vs. CAD 0.01 last year and two-analyst estimate of - CAD 0.02
overview: CROM reported that kilograms of cannabis sold increased 213% in the third quarter from 164 kilograms in the third quarter of 2017 to 514 kilograms in the third quarter of 2018. The main drivers associated with the increase in revenues and the increase in kilograms sold are increased production capacity and increased volumes sold through the domestic medical and international channels, as well as initial shipments into the domestic adult-use recreational market.
The Company continues to see strong growth in cannabis oil sales, which represented 29% of total revenue in the third quarter of 2018.
commentary: CROM has a $1.45 billion valuation with revenue of only $6.96 million. With a negative cash flow, CROM is a risk that should be avoided. As for profits with its current business model – it will never happen.
Valuation Measures
Market Cap (intraday) 1.48B
Enterprise Value 1.45B
Trailing P/E 825.00
Forward P/E N/A
PEG Ratio (5 yr expected) N/A
Price/Sales (ttm) 212.95
Price/Book (mrq) 8.54
Enterprise Value/Revenue 208.42
Enterprise Value/EBITDA -643,606.50
Financial Highlights
Currency in CAD.
Fiscal Year
Fiscal Year Ends Dec 30, 2017
Most Recent Quarter (mrq) Jun 29, 2018
Profitability
Profit Margin 30.59%
Operating Margin (ttm) -16.78%
Management Effectiveness
Return on Assets (ttm) -0.67%
Return on Equity (ttm) 2.04%
Income Statement
Revenue (ttm) 6.96M
Revenue Per Share (ttm) 0.05
Quarterly Revenue Growth (yoy) 427.80%
Gross Profit (ttm) 7.23M
EBITDA -2.25k
Net Income Avi to Common (ttm) 2.13M
Diluted EPS (ttm) 0.01
Quarterly Earnings Growth (yoy) 315.50%
Balance Sheet
Total Cash (mrq) 67.36M
Total Cash Per Share (mrq) 0.38
Total Debt (mrq) 4.18M
Total Debt/Equity (mrq) 2.45
Current Ratio (mrq) 52.75
Book Value Per Share (mrq) 0.97
Cash Flow Statement
Operating Cash Flow (ttm) -15.73M
Levered Free Cash Flow (ttm) -72.56M
Trading Information
Stock Price History
Beta (3Y Monthly) 4.04
52-Week Change %
S&P500 52-Week Change 5.47%
52 Week High 15.30
52 Week Low 5.12
50-Day Moving Average 9.49
200-Day Moving Average 8.01
Share Statistics
Avg Vol (3 month) 21.62M
Avg Vol (10 day) 11.38M
Shares Outstanding 177.15M
Float 150.95M
% Held by Insiders 6.12%
% Held by Institutions 12.44%
Shares Short (Oct 30, 2018) 30.05M
Short Ratio (Oct 30, 2018) 2.27
Short % of Float (Oct 30, 2018) N/A
Short % of Shares Outstanding (Oct 30, 2018) 16.97%
Shares Short (prior month Sep 27, 2018) 22.51M