Canopy Growth Net Income vs. Operating Margin
| CGC Stock | USD 1.18 0.01 0.85% |
Net Loss | First Reported 2009-12-31 | Previous Quarter -1.6 M | Current Value -62.6 M | Quarterly Volatility 356.4 M |
For Canopy Growth profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Canopy Growth to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Canopy Growth Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Canopy Growth's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Canopy Growth Corp over time as well as its relative position and ranking within its peers.
Check out Trending Equities. Will Pharmaceuticals sector continue expanding? Could Canopy diversify its offerings? Factors like these will boost the valuation of Canopy Growth. Projected growth potential of Canopy fundamentally drives upward valuation adjustments. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Canopy Growth data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Earnings Share (1.36) | Revenue Per Share | Quarterly Revenue Growth (0) | Return On Assets | Return On Equity |
Investors evaluate Canopy Growth Corp using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating Canopy Growth's intrinsic value - the estimated true worth - helps identify when the stock trades at a discount or premium to fair value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. External factors like market trends, sector rotation, and investor psychology can cause Canopy Growth's market price to deviate significantly from intrinsic value.
It's important to distinguish between Canopy Growth's intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding Canopy Growth should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. Conversely, Canopy Growth's market price signifies the transaction level at which participants voluntarily complete trades.
Canopy Growth Corp Operating Margin vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Canopy Growth's current stock value. Our valuation model uses many indicators to compare Canopy Growth value to that of its competitors to determine the firm's financial worth. Canopy Growth Corp is rated below average in net income category among its peers. It is rated below average in operating margin category among its peers . At present, Canopy Growth's Net Loss is projected to decrease significantly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Canopy Growth's earnings, one of the primary drivers of an investment's value.Canopy Operating Margin vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Canopy Growth |
| = | (604.14 M) |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Canopy Growth |
| = | (0.18) % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Canopy Operating Margin Comparison
Canopy Growth is currently under evaluation in operating margin category among its peers.
Canopy Growth Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Canopy Growth, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Canopy Growth will eventually generate negative long term returns. The profitability progress is the general direction of Canopy Growth's change in net profit over the period of time. It can combine multiple indicators of Canopy Growth, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Operating Income | -6.7 M | -7.1 M | |
| Income Before Tax | -8.9 M | -9.4 M | |
| Total Other Income Expense Net | -2.2 M | -2.3 M | |
| Net Loss | -8.9 M | -9.4 M | |
| Net Loss | -8.9 M | -9.4 M | |
| Net Loss | -8 M | -8.4 M | |
| Interest Income | 7.9 M | 7.5 M | |
| Net Interest Income | -59.2 M | -56.2 M | |
| Change To Netincome | 3.7 M | 3.5 M | |
| Net Loss | (0.30) | (0.31) | |
| Income Quality | 1.09 | 1.13 | |
| Net Income Per E B T | 1.15 | 1.23 |
Canopy Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Canopy Growth. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Canopy Growth position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Canopy Growth's important profitability drivers and their relationship over time.
Canopy Growth Earnings per Share Projection vs Actual
Use Canopy Growth in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Canopy Growth position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Canopy Growth will appreciate offsetting losses from the drop in the long position's value.Canopy Growth Pair Trading
Canopy Growth Corp Pair Trading Analysis
The ability to find closely correlated positions to Canopy Growth could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Canopy Growth when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Canopy Growth - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Canopy Growth Corp to buy it.
The correlation of Canopy Growth is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Canopy Growth moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Canopy Growth Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Canopy Growth can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Canopy Growth position
In addition to having Canopy Growth in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Trending Equities. You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
To fully project Canopy Growth's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Canopy Growth Corp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Canopy Growth's income statement, its balance sheet, and the statement of cash flows.