One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
Canopy Growth Corporation
CGC · NMS · Healthcare · Drug Manufacturers - Specialty & Generic
Current price
$0.62
52-week range
$0.58 - $2.38
Market cap
$280.02M
Balance sheet
Healthy
-1.91x Concerning
Net cash $52.40M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Revenue grew 5.8% last year.
- Risk Return on equity was -39.2% last year — the company lost money on shareholders' equity.
- Risk Insider ownership is only 0.2% (peer median: 1.7%).
What this company does
Canopy Growth Corporation
Canopy Growth Corporation sells a variety of cannabis products, from dried flower to edibles and vaporizers, primarily in Canada and internationally. Their money mainly comes from selling these cannabis products and related items, which is important because it shows how much people are buying their goods. The company also has a segment that sells vaporizers and accessories, adding another stream of income from these lifestyle products.
How the company got here
Canopy Growth Corporation started in 2013 as Tweed Marijuana Inc., founded by Bruce Linton and Chuck Rifici with the hope of capitalizing on the potential legalization of recreational cannabis in Canada [1, 7]. The company was a pioneer, becoming the first federally regulated and publicly traded cannabis producer in North America [1, 4]. It was one of the first to acquire competitors, notably buying Bedrocan Canada in 2015, the same year it rebranded to Canopy Growth Corporation [1, 7]. A significant turning point was a substantial investment from Constellation Brands in 2018, which aimed to legitimize the company and fuel its expansion [7]. However, the company faced challenges, with its stock price experiencing significant drops in the years following 2019 [1]. In recent years, Canopy Growth has undergone restructuring, divesting some operations and focusing on core markets and profitability [1, 10, 14].
What it actually does
Canopy Growth is a cannabis company that produces, distributes, and sells a wide variety of cannabis and cannabis-related products. These products are intended for both medical and adult (recreational) use [2, 3, 9]. The company operates in Canada, Germany, the United States, and other international markets [2, 3, 13]. Their product offerings include dried flower (the actual cannabis plant material), pre-rolled joints, oils, vapes, beverages, edibles like gummies, extracts, and concentrates [2, 9, 12]. They also sell vaporizers and accessories through their Storz & Bickel segment [3, 9]. Canopy Growth markets its products under a diverse portfolio of brands, aiming to cater to different consumer preferences and needs [2, 11, 17].
Cannabis
This is Canopy Growth's largest business segment, generating the majority of its revenue [3]. Within this segment, the company cultivates, produces, and sells a broad range of cannabis products for both medical patients and adult consumers [3, 11]. These products come in various forms, including dried flower, pre-rolls (cannabis that has been ground and rolled into a cigarette for smoking), oils, vapes, beverages, edibles (like gummies), softgels, and concentrates [2, 9, 12]. Canopy Growth operates under numerous brands, such as Tweed, 7ACRES, DOJA, Deep Space, and Wana, each targeting different market segments and consumer preferences [2, 11, 17].
Storz & Bickel
This segment focuses on the production and sale of high-quality vaporizers and related accessories [3, 9]. Storz & Bickel is a well-known brand in the vaporizer market, recognized for its innovative and durable devices [2]. These vaporizers are used for consuming various substances, including cannabis. This business line represents a smaller portion of Canopy Growth's overall revenue compared to the cannabis segment but is a distinct part of its operations [3].
What management is betting on now
Canopy Growth's current strategy is heavily focused on achieving profitability and solidifying its position in key markets, particularly the United States [10, 14]. The company is strategically positioning itself to capitalize on the growing U.S. cannabis market, which is projected to be worth billions of dollars [8, 14]. This involves consolidating control over its U.S. cannabis assets through a specific ownership structure designed to comply with federal regulations [8, 14]. Management is also prioritizing operational efficiency and cost savings, as demonstrated by recent acquisitions aimed at strengthening their core Canadian business and improving their financial performance [10]. The goal is to build a more focused and sustainable business that can deliver higher-quality products and scale strategically to meet demand [10].
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value — vs current price $0.62
We couldn't calculate a fair value right now.
Is it drowning in debt?
Healthy
Net cash $52.4M - more cash than debt. Interest coverage -1.9x.
Net debt
$-52.40M
Interest coverage
-1.91x
Canopy Growth Corporation's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
CGC
BASELINE
Canopy Growth Corporation
Total debt $174.29M Interest coverage -1.91x This is the baseline the peer rows are being compared against.
Total debt $371.93M Interest coverage -1.85x Neither company has much profit cushion over interest right now.
Total debt $1.21M Interest coverage -1,499.77x Neither company has much profit cushion over interest right now.
Total debt $16.08M Interest coverage -25.79x Neither company has much profit cushion over interest right now.
Total debt $115.06M Interest coverage -0.59x Neither company has much profit cushion over interest right now.
Total debt $695.96M Interest coverage 6.83x This peer still has a real interest-payment cushion, while CGC does not.
What you should know
The case for and against CGC
1 Reward
2 Risks
Rewards
-
Revenue grew 5.8% last year.
Risks
-
Return on equity was -39.2% last year — the company lost money on shareholders' equity.
-
Insider ownership is only 0.2% (peer median: 1.7%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-5.14x
P/B
0.57x
P/S
0.91x
EV/EBITDA
-5.84x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
27.6%
Operating margin
-25.0%
Net margin
-88.1%
ROE
-39.2%
ROA
-4.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.38x
Current ratio
2.82x
Quick ratio
2.09x
Total debt
$174.29M
Total cash
$226.69M
Growth
How the business has been compounding
Revenue TTM
$218.56M
Revenue 5Y CAGR
-5.1%
EPS TTM
-0.51
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-45.23M
Free CF TTM
$-49.45M
FCF margin
-22.6%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
—
Last ex-div date
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