Last Updated: 14 Sep 2024
Executive Summary
Aurora Cannabis Inc. (ACB) is a leading global producer and distributor of medical cannabis products. The company has a strong presence in Canada and is expanding rapidly into international markets. ACB's financial performance has been mixed in recent quarters, but the company remains well-positioned for long-term growth.
Company Overview
Aurora Cannabis was founded in 2013 and is headquartered in Edmonton, Canada. The company operates 25 production facilities across Canada, Europe, and South America. ACB's products include dried flower, cannabis oil, and edibles. The company sells its products to medical cannabis dispensaries, pharmacies, and other licensed retailers.
Fundamental Analysis
ACB's financial performance has been mixed in recent quarters. The company reported a net loss of $108.5 million in the first quarter of 2023, compared to a net loss of $115.2 million in the same period last year. Revenue increased by 11.6% to $63.1 million.
ACB's gross margin has been declining in recent quarters, due to increased input costs and competition. The company's operating margin was -11.5% in the first quarter of 2023, compared to -10.2% in the same period last year.
ACB's balance sheet is strong. The company has $278.9 million in cash and equivalents and $1.1 billion in long-term debt. ACB's debt-to-equity ratio is 0.44.
Technical Analysis
ACB's stock price has been trading in a range between $5 and $7 for the past several months. The stock broke out of this range in early June and reached a high of $9.80. However, the stock has since pulled back and is now trading at $5.80.
The technical indicators are mixed. The relative strength index (RSI) is above 50, indicating that the stock is overbought. However, the moving average convergence divergence (MACD) is below zero, indicating that the stock is in a downtrend.
Short Term Outlook
ACB's stock price is likely to remain volatile in the short term. The company's financial performance has been mixed and the technical indicators are mixed. Investors should be cautious about buying ACB stock at this time.
Long Term Outlook
ACB is a well-positioned company in the growing global medical cannabis market. The company has a strong brand, a large production capacity, and a global distribution network. ACB is also well-funded and has a strong balance sheet.
ACB's long-term growth prospects are positive. The global medical cannabis market is expected to grow rapidly in the coming years. ACB is well-positioned to capture a significant share of this market.
Analyst Recommendations
The analysts have a mixed view on ACB stock. Two analysts have a "strong buy" rating on the stock, two analysts have a "buy" rating, and zero analysts have a "hold," "sell," or "strong sell" rating. The average analyst target price is $31.83.
