On Tuesday, Canadian cannabis company Canopy Growth reported fiscal third-quarter revenue that surpassed analysts’ expectations. However, the company incurred a loss during the period.
The company’s revenue grew +23% year-over-year to a record-setting $152.5 million in the three months ending Dec. 31, 2020.
Canopy Growth’s fiscal third-quarter net loss came in at -C$829 million (-US$651.1 million), from $720 million in the year-ago quarter.
Adjusted earnings (loss) before interest, taxes, depreciation and amortization for the quarter were -C$68 million vs. - C$97 million a year ago.
Analysts polled by Bloomberg expected revenue of $148.9 million and an adjusted EBITDA loss of -$71.1 million.
Canopy expects to generate positive adjusted EBITDA during the second half of 2022, and 20 per cent adjusted EBITDA margin for the full year 2024. It projects positive operating cash flow for the full year of 2023, and positive free cash flow for the full year of 2024. The forecasts are based on Canopy’s cost savings strategy, and expectations for compound annual net revenue growth of 40 to 50 per cent between 2022 and 2024.
"We are executing against our cost savings program, with several initiatives already completed and more underway to build a leaner and more agile business," chief financial officer Mike Lee said.
There is a broader rally in Canadian cannabis shares, fueled by hopes for a policy shift in the U.S that would remove pot from the country’s list of Schedule 1 drugs.
The 10-day RSI Indicator for CGC moved out of overbought territory on April 04, 2024. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 22 instances where the indicator moved out of the overbought zone. In of the 22 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
The Momentum Indicator moved below the 0 level on April 11, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on CGC as a result. In of 77 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for CGC turned negative on April 12, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CGC declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
CGC broke above its upper Bollinger Band on March 27, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
CGC moved above its 50-day moving average on March 20, 2024 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for CGC crossed bullishly above the 50-day moving average on March 25, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 10 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a +5 3-day Advance, the price is estimated to grow further. Considering data from situations where CGC advanced for three days, in of 197 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 116 cases where CGC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. CGC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.702) is normal, around the industry mean (48.543). P/E Ratio (0.000) is within average values for comparable stocks, (82.883). CGC's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (2.825). Dividend Yield (0.000) settles around the average of (0.115) among similar stocks. P/S Ratio (1.820) is also within normal values, averaging (61.364).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. CGC’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a producer of medical marijuana
Industry PharmaceuticalsOther