Cronos Valuation
| CRON Stock | CAD 2.65 0.04 1.49% |
Based on Macroaxis valuation methodology, the firm appears to be fairly valued. Cronos Group shows a prevailing Real Value of C$2.76 per share. The current price of the firm is C$2.65. Our model approximates the value of Cronos Group from analyzing the firm fundamentals such as Current Valuation of (203.28 M), profit margin of 0.35 %, and Return On Equity of 0.0363 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Cronos' valuation include:
Price Book 0.6758 | Enterprise Value | Enterprise Value Ebitda (1.95) | Price Sales 8.749 | Trailing PE 16.8125 |
Fairly Valued
Today
Please note that Cronos' price fluctuation is relatively risky at this time. Calculation of the real value of Cronos Group is based on 3 months time horizon. Increasing Cronos' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Cronos is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Cronos Stock. However, Cronos' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 2.65 | Real 2.76 | Hype 2.69 | Naive 2.63 |
The intrinsic value of Cronos' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Cronos' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Cronos Group helps investors to forecast how Cronos stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Cronos more accurately as focusing exclusively on Cronos' fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Cronos' intrinsic value based on its ongoing forecasts of Cronos' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Cronos' closest peers.
Cronos Cash |
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Cronos Valuation Trend
Knowing Cronos' actual value is paramount for traders when making sound investment determinations. Using both Cronos' enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Cronos Total Value Analysis
Cronos Group is currently estimated to have takeover price of (203.28 M) with market capitalization of 1.03 B, debt of 55.33 M, and cash on hands of 764.64 M. The negative valuation of Cronos may imply that the market is not capable to price the future growth of the company or it is pricing it at zero value. It may also suggest that takeover valuation may not have captured all of the outstanding financial obligations of the company both on and off balance sheet. Investors should thoroughly investigate all of the Cronos fundamentals.| Takeover Price | Market Cap | Debt Obligations | Cash |
(203.28 M) | 1.03 B | 55.33 M | 764.64 M |
Cronos Investor Information
About 46.0% of the company shares are held by company insiders. The company has price-to-book (P/B) ratio of 0.68. Some equities with similar Price to Book (P/B) outperform the market in the long run. Cronos Group had not issued any dividends in recent years. The entity had 1:7 split on the 17th of December 2014. Based on the key indicators related to Cronos' liquidity, profitability, solvency, and operating efficiency, Cronos Group is doing better financially today then in previous quarter. It has a moderate probability of reporting better financial numbers in April.Cronos Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Cronos has an asset utilization ratio of 10.08 percent. This suggests that the Company is making C$0.1 for each dollar of assets. An increasing asset utilization means that Cronos Group is more efficient with each dollar of assets it utilizes for everyday operations.Cronos Ownership Allocation
Cronos holds a total of 382.53 Million outstanding shares. Cronos Group retains significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company's outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Cronos Profitability Analysis
The company reported the revenue of 117.61 M. Net Income was 41.08 M with profit before overhead, payroll, taxes, and interest of 30.48 M.About Cronos Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Cronos Group. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Cronos Group based exclusively on its fundamental and basic technical indicators. By analyzing Cronos's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Cronos's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Cronos. We calculate exposure to Cronos's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Cronos's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 25.2 M | 26.5 M | |
| Pretax Profit Margin | 0.31 | 0.30 | |
| Operating Profit Margin | (0.65) | (0.68) | |
| Net Profit Margin | 0.35 | 0.33 | |
| Gross Profit Margin | 0.21 | 0.20 |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Cronos Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.