Is Canopy Growth Stock a Good Investment?
Canopy Growth Investment Advice | CGC |
- Examine Canopy Growth's 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 Canopy Growth's leadership team and their track record. Good management can help Canopy Growth 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 Canopy Growth's business and its evolving consumer preferences.
- Compare Canopy Growth's performance and market position to its competitors. Analyze how Canopy Growth is positioned in terms of product offerings, innovation, and market share.
- Check if Canopy Growth pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Canopy Growth's 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 Canopy Growth Corp 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 Canopy Growth Corp is a good investment.
Sell | Buy |
Hold
Market Performance | Very Weak | Details | |
Volatility | Dangerous | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very High | Details | |
Economic Sensitivity | Hyperactively responds to market trends | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Hold | Details | |
Financial Strenth (F Score) | Frail | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Canopy Growth Stock
Researching Canopy Growth's 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). The company has price-to-book (P/B) ratio of 0.42. Some equities with similar Price to Book (P/B) outperform the market in the long run. Canopy Growth Corp recorded a loss per share of 3.53. The entity had not issued any dividends in recent years. The firm had 1:10 split on the 20th of December 2023.
To determine if Canopy Growth 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 Canopy Growth's research are outlined below:
| Canopy Growth Corp generated a negative expected return over the last 90 days | |
| Canopy Growth Corp has high historical volatility and very poor performance | |
| Canopy Growth Corp may become a speculative penny stock | |
| Canopy Growth Corp has a very high chance of going through financial distress in the upcoming years | |
| The company reported the last year's revenue of 297.15 M. Reported Net Loss for the year was (483.68 M) with profit before taxes, overhead, and interest of 84.14 M. | |
| Canopy Growth Corp has about 1.23 B in cash with (281.95 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.94, which can makes it an attractive takeover target, given it will continue generating positive cash flow. | |
| Canopy Growth Corp has a frail financial position based on the latest SEC disclosures | |
| Latest headline from zacks.com: Aurora Cannabis Rides the Global Legalization Wave Should You Invest |
Canopy Growth 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 Canopy Growth Corp. 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 Canopy Growth's 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.
| 9th of February 2024 Upcoming Quarterly Report | View | |
| 27th of June 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 27th 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 Canopy Growth's 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 Canopy Growth's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2016-08-29 | 2016-06-30 | -0.03 | -0.04 | -0.01 | 33 | ||
2016-02-25 | 2015-12-31 | -0.02 | -0.03 | -0.01 | 50 | ||
2017-08-14 | 2017-06-30 | -0.05 | -0.03 | 0.02 | 40 | ||
2015-06-29 | 2015-03-31 | -0.03 | -0.01 | 0.02 | 66 | ||
2017-11-14 | 2017-09-30 | -0.04 | -0.01 | 0.03 | 75 | ||
2016-06-27 | 2016-03-31 | -0.02 | -0.05 | -0.03 | 150 | ||
2015-02-25 | 2014-12-31 | -0.04 | -0.07 | -0.03 | 75 | ||
2017-02-14 | 2016-12-31 | -0.03 | 0.02 | 0.05 | 166 |
Know Canopy Growth's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Canopy Growth is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Canopy Growth Corp backward and forwards among themselves. Canopy Growth's institutional investor refers to the entity that pools money to purchase Canopy Growth's 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 | Wealthfront Advisers Llc | 2024-12-31 | 139.2 K | Squarepoint Ops Llc | 2024-12-31 | 138.2 K | Centiva Capital Lp | 2024-12-31 | 124.2 K | Ameriprise Financial Inc | 2024-12-31 | 114.5 K | Alberta Investment Management Corp | 2024-12-31 | 96.5 K | Advisorshares Investments, Llc | 2024-12-31 | 91.5 K | Baader Bank Inc | 2024-12-31 | 77.5 K | Td Asset Management Inc | 2024-12-31 | 76.5 K | Engineers Gate Manager Lp | 2024-12-31 | 76.4 K | Tidal Investments Llc. | 2024-12-31 | 2.3 M | Morgan Stanley - Brokerage Accounts | 2024-12-31 | 952.4 K |
Canopy Growth's market capitalization trends
The company currently falls under 'Small-Cap' category with a total capitalization of 217.6 M.Market Cap |
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Canopy Growth's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.34) | (0.36) | |
| Return On Capital Employed | (0.33) | (0.32) | |
| Return On Assets | (0.34) | (0.36) | |
| Return On Equity | (0.41) | (0.43) |
Determining Canopy Growth's profitability involves analyzing its financial statements and using various financial metrics to determine if Canopy Growth is a good buy. For example, gross profit margin measures Canopy Growth's 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 Canopy Growth's profitability and make more informed investment decisions.
Please note, the presentation of Canopy Growth's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Canopy Growth's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Canopy Growth's management manipulating its earnings.
Evaluate Canopy Growth's management efficiency
Canopy Growth Corp has Return on Asset of (0.0463) % which means that on every $100 spent on assets, it lost $0.0463. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of (0.8402) %, meaning that it generated no profit with money invested by stockholders. Canopy Growth's management efficiency ratios could be used to measure how well Canopy Growth manages its routine affairs as well as how well it operates its assets and liabilities. As of March 25, 2025, Return On Tangible Assets is expected to decline to -0.36. The current year's Return On Capital Employed is expected to grow to -0.32. At present, Canopy Growth's Non Currrent Assets Other are projected to increase significantly based on the last few years of reporting. The current year's Debt To Assets is expected to grow to 0.14, whereas Total Assets are forecasted to decline to about 24.7 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 0.72 | 0.69 | |
| Tangible Book Value Per Share | 0.72 | 0.69 | |
| Enterprise Value Over EBITDA | (88.07) | (92.47) | |
| Price Book Value Ratio | 28.47 | 29.89 | |
| Enterprise Value Multiple | (88.07) | (92.47) | |
| Price Fair Value | 28.47 | 29.89 | |
| Enterprise Value | 442.4 K | 420.3 K |
At Canopy Growth Corp, effective management practices are pivotal to sustaining long-term profitability. We delve into financial metrics and market conditions to provide a comprehensive analysis of the stock's prospects.
Beta 1.733 |
Basic technical analysis of Canopy Stock
As of the 25th of March, Canopy Growth shows the Risk Adjusted Performance of (0.18), mean deviation of 3.86, and Standard Deviation of 6.01. Canopy Growth Corp 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.Canopy Growth's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Canopy Growth insiders, such as employees or executives, is commonly permitted as long as it does not rely on Canopy Growth's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Canopy Growth insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Luc Mongeau over a month ago Acquisition by Luc Mongeau of 50000 shares of Canopy Growth subject to Rule 16b-3 | ||
Gedeon Christelle over three months ago Acquisition by Gedeon Christelle of 909375 shares of Canopy Growth subject to Rule 16b-3 | ||
Kruh Willy over a year ago Acquisition by Kruh Willy of 6673 shares of Canopy Growth subject to Rule 16b-3 | ||
David Lazzarato over a year ago Sale by David Lazzarato of 3713 shares of Canopy Growth | ||
Lee Michael Alan over a year ago Canopy Growth exotic insider transaction detected | ||
David Lazzarato over a year ago Sale by David Lazzarato of 38502 shares of Canopy Growth | ||
David Lazzarato over a year ago Acquisition by David Lazzarato of 267857 shares of Canopy Growth subject to Rule 16b-3 |
Canopy Growth's Outstanding Corporate Bonds
Canopy Growth 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. Canopy Growth Corp 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 Canopy bonds can be classified according to their maturity, which is the date when Canopy Growth Corp 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.
Understand Canopy Growth's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Canopy Growth's 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 | (0.18) | |||
| Market Risk Adjusted Performance | (0.62) | |||
| Mean Deviation | 3.86 | |||
| Coefficient Of Variation | (475.38) | |||
| Standard Deviation | 6.01 | |||
| Variance | 36.07 | |||
| Information Ratio | (0.21) | |||
| Jensen Alpha | (1.20) | |||
| Total Risk Alpha | (1.03) | |||
| Treynor Ratio | (0.63) | |||
| Maximum Drawdown | 49.56 | |||
| Value At Risk | (8.12) | |||
| Potential Upside | 5.59 | |||
| Skewness | (0.35) | |||
| Kurtosis | 7.56 |
| Risk Adjusted Performance | (0.18) | |||
| Market Risk Adjusted Performance | (0.62) | |||
| Mean Deviation | 3.86 | |||
| Coefficient Of Variation | (475.38) | |||
| Standard Deviation | 6.01 | |||
| Variance | 36.07 | |||
| Information Ratio | (0.21) | |||
| Jensen Alpha | (1.20) | |||
| Total Risk Alpha | (1.03) | |||
| Treynor Ratio | (0.63) | |||
| Maximum Drawdown | 49.56 | |||
| Value At Risk | (8.12) | |||
| Potential Upside | 5.59 | |||
| Skewness | (0.35) | |||
| Kurtosis | 7.56 |
Consider Canopy Growth's intraday indicators
Canopy Growth 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 Canopy Growth 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.
| Daily Balance Of Power | (9,223,372,036,855) | |||
| Rate Of Daily Change | 0.97 | |||
| Day Median Price | 1.13 | |||
| Day Typical Price | 1.13 | |||
| Price Action Indicator | (0.01) | |||
| Period Momentum Indicator | (0.03) | |||
| Relative Strength Index | 31.21 |
Canopy Stock media impact
Far too much social signal, news, headlines, and media speculation about Canopy Growth that are available to investors today. That information is available publicly through Canopy media outlets and privately through word of mouth or via Canopy internal channels. However, regardless of the origin, that massive amount of Canopy 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 Canopy Growth 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 Canopy Growth 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 Canopy Growth's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Canopy Growth alpha.
Canopy Growth Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Canopy Growth 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.
Canopy Growth Corporate Management
| Mark Ware | Chief Medical Officer | Profile | |
| Terry Yanofsky | Director | Profile | |
| FCPA FCA | Strategic Advisor | Profile | |
| Robert Hanson | Independent Director | Profile |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Canopy Growth Corp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in price. You can also try the Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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 Canopy Growth. If investors know Canopy 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 Canopy Growth listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (3.53) | Revenue Per Share | Quarterly Revenue Growth (0.05) | Return On Assets | Return On Equity |
The market value of Canopy Growth Corp is measured differently than its book value, which is the value of Canopy that is recorded on the company's balance sheet. Investors also form their own opinion of Canopy Growth's value that differs from its market value or its book value, called intrinsic value, which is Canopy Growth's 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 Canopy Growth's market value can be influenced by many factors that don't directly affect Canopy Growth's 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 Canopy Growth's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Canopy Growth is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Canopy Growth's 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.