Aurora Cannabis Inc (NASDAQ: ACB)

Sector: Healthcare Industry: Drug Manufacturers - Specialty & Generic CIK: 0001683541
Market Cap 295.12 Mn
P/B 0.77
P/E -5.60
P/S 1.11
ROIC (Qtr) -7.78
Div Yield % 0.00
Rev 1y % (Qtr) 9.78
Total Debt (Qtr) 72.71 Mn
Debt/Equity (Qtr) 0.19

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 102.86M provide 2.17x coverage of short-term debt 47.35M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 504.55M provides 6.94x coverage of total debt 72.71M, indicating robust asset backing and low credit risk.
  • Tangible assets of 504.55M provide exceptional 483.87x coverage of deferred revenue 1.04M, showing strong service capability backing.
  • Cash position of 102.86M provides exceptional 15.39x coverage of minority interest expenses 6.68M, indicating strong liquidity.
  • Tangible assets of 504.55M provide robust 73.87x coverage of other current liabilities 6.83M, indicating strong asset backing.

Bear case

  • Operating cash flow of 1.63M barely covers its investment activities of (15.45M), with a coverage ratio of -0.11, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (15.45M) provide weak support for R&D spending of 2.50M, which is -6.18x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Free cash flow of (12.25M) provides weak coverage of capital expenditures of 13.87M, with a -0.88 ratio suggesting additional external financing needs for growth initiatives.
  • The company's operating cash flow of 1.63M shows concerning coverage of stock compensation expenses of 10.96M, with a 0.15 ratio indicating potential earnings quality issues.
  • Operating earnings of (39.97M) show weak coverage of depreciation charges of 17.25M, with a -2.32 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Drug Manufacturers - Specialty & Generic
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ZTS Zoetis Inc. 56.15 Bn 21.18 5.98 7.27 Bn
2 TAK Takeda Pharmaceutical Co Ltd 48.92 Bn 221.13 1.66 36.24 Bn
3 HLN Haleon plc 46.13 Bn 25.59 3.29 -
4 TEVA Teva Pharmaceutical Industries Ltd 35.27 Bn 49.54 2.10 17.07 Bn
5 UTHR UNITED THERAPEUTICS Corp 21.76 Bn 17.11 6.95 0.00 Bn
6 VTRS Viatris Inc 14.87 Bn -4.03 1.05 14.44 Bn
7 NBIX Neurocrine Biosciences Inc 14.08 Bn 32.91 5.25 0.43 Bn
8 ELAN Elanco Animal Health Inc 11.64 Bn 323.29 2.54 4.32 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.29 24.98
EV to Cash from Ops. EV/CFO 97.30 -85.40
EV to Debt EV to Debt 2.18 265.88
EV to EBIT EV/EBIT -3.96 -32.65
EV to EBITDA EV/EBITDA -25.52 -29.50
EV to Free Cash Flow [EV/FCF] EV/FCF -12.91 -32.62
EV to Market Cap EV to Market Cap 0.54 -10.98
EV to Revenue EV/Rev 0.59 -700.14
Price to Book Value [P/B] P/B 0.77 27.22
Price to Earnings [P/E] P/E -5.60 -122.96
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.34
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.81
Dividend per Basic Share Div per Share (Qtr) 0.00 0.07
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.08
Interest Coverage Int. cover (Qtr) -6.46 -38.10
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -170.14 -157.22
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -7.72 44,776.25
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.81
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -35.43 24.45
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -368.61 18.14
EBIT Growth (1y) % EBIT 1y % (Qtr) -19.79 37.66
EBT Growth (1y) % EBT 1y % (Qtr) -16.70 108.18
EPS Growth (1y) % EPS 1y % (Qtr) -12.63 52.88
FCF Growth (1y) % FCF 1y % (Qtr) 66.61 -54.47
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 1.53 25.28
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.35 0.50
Cash Payout Ratio Cash Payout Ratio 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 1.14 2.10
Current Ratio Curr Ratio (Qtr) 3.42 3.92
Debt to Equity Ratio Debt/Equity (Qtr) 0.19 -1.11
Interest Cover Ratio Int Coverage (Qtr) -6.46 -38.10
Times Interest Earned Times Interest Earned (Qtr) -6.46 -38.10
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -8.50 -62,432.09
EBIT Margin % EBIT Margin % (Qtr) -20.74 -63,260.88
EBT Margin % EBT Margin % (Qtr) -17.35 -66,726.96
Gross Margin % Gross Margin % (Qtr) 43.90 8,332.72
Net Profit Margin % Net Margin % (Qtr) -19.80 -66,728.37