Is Aurora Cannabis Stock a Good Investment?
Aurora Cannabis Investment Advice | ACB |
- Examine Aurora Cannabis' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Aurora Cannabis' leadership team and their track record. Good management can help Aurora Cannabis navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Pharmaceuticals space and any emerging trends that could impact Aurora Cannabis' business and its evolving consumer preferences.
- Compare Aurora Cannabis' performance and market position to its competitors. Analyze how Aurora Cannabis is positioned in terms of product offerings, innovation, and market share.
- Check if Aurora Cannabis pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Aurora Cannabis' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Aurora Cannabis stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Aurora Cannabis is a good investment.
Sell | Buy |
Strong Sell
Market Performance | Very Weak | Details | |
Volatility | Unstable | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very High | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Aurora Cannabis Stock
Researching Aurora Cannabis' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 13.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 0.61. Some equities with similar Price to Book (P/B) outperform the market in the long run. Aurora Cannabis recorded a loss per share of 0.46. The entity last dividend was issued on the 11th of May 2020. The firm had 1:10 split on the 20th of February 2024.
To determine if Aurora Cannabis is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Aurora Cannabis' research are outlined below:
| Aurora Cannabis generated a negative expected return over the last 90 days | |
| Aurora Cannabis has high historical volatility and very poor performance | |
| Aurora Cannabis has a very high chance of going through financial distress in the upcoming years | |
| The company reported the last year's revenue of 270.28 M. Reported Net Loss for the year was (59.05 M) with profit before taxes, overhead, and interest of 21.23 M. | |
| Aurora Cannabis has about 439.14 M in cash with (68.51 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.46. | |
| Aurora Cannabis has a poor financial position based on the latest SEC disclosures | |
| Latest headline from benzinga.com: German Cannabis 20 Tons, 10M Grams - And Thats Only 0.3 percent Of The Market, Whats Missing |
Aurora Cannabis Quarterly Liabilities And Stockholders Equity |
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Aurora Cannabis uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Aurora Cannabis. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Aurora Cannabis' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 8th of February 2024 Upcoming Quarterly Report | View | |
| 12th of June 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 12th of June 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of March 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Aurora Cannabis' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Aurora Cannabis' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2018-02-08 | 2017-12-31 | -0.01 | -0.02 | -0.01 | 100 | ||
2017-11-09 | 2017-09-30 | -0.02 | -0.01 | 0.01 | 50 | ||
2023-11-09 | 2023-09-30 | -0.04 | -0.0512 | -0.0112 | 28 | ||
2024-06-20 | 2024-03-31 | -0.23 | -0.26 | -0.03 | 13 | ||
2017-09-26 | 2017-06-30 | -0.0477 | -0.0958 | -0.0481 | 100 | ||
2022-11-10 | 2022-09-30 | -0.12 | -0.17 | -0.05 | 41 | ||
2024-11-06 | 2024-09-30 | -0.22 | -0.16 | 0.06 | 27 | ||
2021-02-11 | 2020-12-31 | -0.27 | -0.36 | -0.09 | 33 |
Know Aurora Cannabis' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Aurora Cannabis is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Aurora Cannabis backward and forwards among themselves. Aurora Cannabis' institutional investor refers to the entity that pools money to purchase Aurora Cannabis' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Td Asset Management Inc | 2024-09-30 | 55.9 K | Cibc World Markets Inc. | 2024-06-30 | 48.1 K | Sig North Trading, Ulc | 2024-06-30 | 46.5 K | Centiva Capital Lp | 2024-09-30 | 45.6 K | Old Mission Capital Llc | 2024-06-30 | 45.1 K | Two Sigma Investments Llc | 2024-09-30 | 35.8 K | Geode Capital Management, Llc | 2024-09-30 | 32.5 K | Barclays Plc | 2024-06-30 | 25.2 K | Mackenzie Investments | 2024-09-30 | 24.5 K | Tidal Investments Llc. | 2024-09-30 | 1.3 M | Renaissance Technologies Corp | 2024-09-30 | 658.3 K |
Aurora Cannabis' market capitalization trends
The company currently falls under 'Small-Cap' category with a total capitalization of 259.17 M.Market Cap |
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Aurora Cannabis' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.09) | (0.10) | |
| Return On Capital Employed | (0.07) | (0.07) | |
| Return On Assets | (0.08) | (0.09) | |
| Return On Equity | (0.12) | (0.13) |
Determining Aurora Cannabis' profitability involves analyzing its financial statements and using various financial metrics to determine if Aurora Cannabis is a good buy. For example, gross profit margin measures Aurora Cannabis' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Aurora Cannabis' profitability and make more informed investment decisions.
Please note, the presentation of Aurora Cannabis' financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Aurora Cannabis' management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Aurora Cannabis' management manipulating its earnings.
Evaluate Aurora Cannabis' management efficiency
Aurora Cannabis has Return on Asset of (0.0124) % which means that on every $100 spent on assets, it lost $0.0124. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of (0.0579) %, meaning that it generated no profit with money invested by stockholders. Aurora Cannabis' management efficiency ratios could be used to measure how well Aurora Cannabis manages its routine affairs as well as how well it operates its assets and liabilities. As of November 25, 2024, Return On Tangible Assets is expected to decline to -0.1. In addition to that, Return On Capital Employed is expected to decline to -0.07. At present, Aurora Cannabis' Total Assets are projected to increase significantly based on the last few years of reporting. The current year's Non Current Assets Total is expected to grow to about 744.6 M, whereas Total Current Assets are forecasted to decline to about 234.2 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 12.69 | 12.06 | |
| Tangible Book Value Per Share | 10.92 | 10.37 | |
| Enterprise Value Over EBITDA | 13.12 | 13.78 | |
| Price Book Value Ratio | 0.50 | 0.47 | |
| Enterprise Value Multiple | 13.12 | 13.78 | |
| Price Fair Value | 0.50 | 0.47 | |
| Enterprise Value | 268.7 M | 255.3 M |
Aurora Cannabis showcases strong leadership that adapts to market changes and drives innovation. Our analysis explores how this adaptability affects the stock's investment appeal.
Beta 2.697 |
Basic technical analysis of Aurora Stock
As of the 25th of November, Aurora Cannabis shows the Risk Adjusted Performance of (0.09), mean deviation of 2.63, and Standard Deviation of 3.75. Aurora Cannabis technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.Aurora Cannabis' Outstanding Corporate Bonds
Aurora Cannabis issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Aurora Cannabis uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Aurora bonds can be classified according to their maturity, which is the date when Aurora Cannabis has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View |
Understand Aurora Cannabis' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Aurora Cannabis' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.09) | |||
| Market Risk Adjusted Performance | (96.05) | |||
| Mean Deviation | 2.63 | |||
| Coefficient Of Variation | (813.67) | |||
| Standard Deviation | 3.75 | |||
| Variance | 14.05 | |||
| Information Ratio | (0.16) | |||
| Jensen Alpha | (0.47) | |||
| Total Risk Alpha | (1.06) | |||
| Treynor Ratio | (96.06) | |||
| Maximum Drawdown | 26.91 | |||
| Value At Risk | (4.78) | |||
| Potential Upside | 5.51 | |||
| Skewness | (0.63) | |||
| Kurtosis | 4.8 |
| Risk Adjusted Performance | (0.09) | |||
| Market Risk Adjusted Performance | (96.05) | |||
| Mean Deviation | 2.63 | |||
| Coefficient Of Variation | (813.67) | |||
| Standard Deviation | 3.75 | |||
| Variance | 14.05 | |||
| Information Ratio | (0.16) | |||
| Jensen Alpha | (0.47) | |||
| Total Risk Alpha | (1.06) | |||
| Treynor Ratio | (96.06) | |||
| Maximum Drawdown | 26.91 | |||
| Value At Risk | (4.78) | |||
| Potential Upside | 5.51 | |||
| Skewness | (0.63) | |||
| Kurtosis | 4.8 |
Consider Aurora Cannabis' intraday indicators
Aurora Cannabis intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Aurora Cannabis stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Aurora Cannabis Corporate Filings
6K | 6th of November 2024 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges. | ViewVerify |
| 20th of June 2024 Other Reports | ViewVerify |
Aurora Stock media impact
Far too much social signal, news, headlines, and media speculation about Aurora Cannabis that are available to investors today. That information is available publicly through Aurora media outlets and privately through word of mouth or via Aurora internal channels. However, regardless of the origin, that massive amount of Aurora data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Aurora Cannabis news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Aurora Cannabis relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Aurora Cannabis' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Aurora Cannabis alpha.
Aurora Cannabis Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Aurora Cannabis can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Aurora Cannabis Corporate Directors
| Adam Szweras | Independent Director | Profile | |
| Margaret Atkins | Independent Director | Profile | |
| Norma Beauchamp | Independent Director | Profile | |
| Jason Dyck | Independent Director | Profile |
Already Invested in Aurora Cannabis?
The danger of trading Aurora Cannabis is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Aurora Cannabis is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Aurora Cannabis. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Aurora Cannabis is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Aurora Cannabis offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Aurora Cannabis' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Aurora Cannabis Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Aurora Cannabis Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Aurora Cannabis. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. For information on how to trade Aurora Stock refer to our How to Trade Aurora Stock guide.You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Is Pharmaceuticals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Aurora Cannabis. If investors know Aurora will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Aurora Cannabis listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.92) | Earnings Share (0.46) | Revenue Per Share 0.033 | Quarterly Revenue Growth 0.285 | Return On Assets (0.01) |
The market value of Aurora Cannabis is measured differently than its book value, which is the value of Aurora that is recorded on the company's balance sheet. Investors also form their own opinion of Aurora Cannabis' value that differs from its market value or its book value, called intrinsic value, which is Aurora Cannabis' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Aurora Cannabis' market value can be influenced by many factors that don't directly affect Aurora Cannabis' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Aurora Cannabis' value and its price, as these two are different measures arrived at by various means. Investors typically determine if Aurora Cannabis is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Aurora Cannabis' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.