MarketIQ Analyst Report for Cronos Group Inc

111 PETER STREET, SUITE 300, TORONTO, ON, CA
CRON

Last Updated: 09 Nov 2024

Executive Summary

Cronos Group Inc. (CRON) is a leading cannabinoid company with a market capitalization of $788.5 million. Despite strong revenue growth of 46% year-over-year, the company continues to face profitability challenges, with a negative EBITDA of $61.5 million and an EPS of -$0.15. Analysts have a mixed outlook on CRON, with one Buy rating, one Hold rating, and one Sell rating. The stock's current price of $2 is below its 52-week high of $3.14 and above its 52-week low of $1.85.

Company Overview

Cronos Group is headquartered in Toronto, Canada, and is engaged in the cultivation, production, and distribution of cannabinoids. The company's products include medical cannabis, adult-use cannabis, and hemp-derived CBD products. Cronos Group operates in Canada, the United States, and other international markets.

Fundamental Analysis

Revenue: CRON's revenue for the latest quarter (ending June 30, 2024) was $101.8 million, representing a 46% increase from the same period last year.
Profitability: The company's profitability remains a concern, with an EBITDA of -$61.5 million and a profit margin of -56.4%.
Valuation: CRON's current price-to-sales ratio of 7.75 and price-to-book ratio of 0.72 suggest that the stock is undervalued relative to its peers.

Technical Analysis

Moving Averages: The stock's 50-day moving average is $2.18, while its 200-day moving average is $2.337.
Support and Resistance: The stock has been trading within a range of $1.85 to $3.14 over the past year.
Momentum: The stock's relative strength index (RSI) is currently at 45, indicating neutral momentum.

Short Term Outlook

In the short term, CRON's stock price is likely to remain range-bound between $1.85 and $3.14. The company's profitability challenges and mixed analyst sentiment will likely weigh on the stock's performance.

Long Term Outlook

The long-term outlook for CRON is more positive. The company's strong revenue growth and international expansion efforts suggest that it has the potential to become a major player in the global cannabis industry. However, the company's profitability challenges need to be addressed in order to unlock its full potential.

Analyst Recommendations

Analysts have a mixed outlook on CRON. One analyst has a Buy rating, one has a Hold rating, and one has a Sell rating. The average analyst target price is $2.86, suggesting a potential upside of 43% from the current price.