Cronos Group Inc.

Health Care
Medicinal Chemicals and Botanical Products
www.thecronosgroup.com

Earnings Score
Moat Score

Market Cap $776.99M
PE -16
Debt $NaN
Cash $862.03M
EV $NaN
FCF $17.85M

Earnings

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Sales & Net Margins

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Earnings	-$48.95M
EBIT	-$54.87M
ROE	-4%
ROA	-5%
FCF	$17.85M
Equity	$1.13B
Growth Stability	-112%
PE	-15.87
PEG	21.43
PB	0.69
P/FCF	43.52
P/S	5.02
Price/Cash	1.11
Net Margins	-3%
Gross Margins	11%
Op. Margins	-35%
Earnings CAGR	-0%
Sales Growth YoY	37%
Sales Growth QoQ	20%
Sales CAGR	50%
Equity CAGR	18%
Earnings Stability	-0.4

Earnings Growth YoY	-513%
Earnings Growth QoQ	-184%
Earnings CAGR 5Y	-1%
Sales CAGR 5Y	40%
Equity CAGR 5Y	-12%
Earnings CAGR 3Y	15%
Sales CAGR 3Y	15%
Equity CAGR 3Y	-8%
Market Cap	$776.99M
Revenue	$154.65M
Assets	$1.18B
Cash	$862.03M
Shares Outstanding	381.96M
Earnings Score	6%
Moat Score	11%
Working Capital	919.61M
Current Ratio	24.24
Gross Profit	$16.30M
Shares Growth 3y	1%
Equity Growth QoQ	7%
Equity Growth YoY	1%

Assets & ROA

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Stockholders Equity & ROE

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Cronos Group, headquartered in Toronto, Canada cultivates and sells medicinal and recreational cannabis through its medicinal brand, Peace Naturals, and its two recreational brands, Cove and Spinach. Although it primarily operates in Canada, Cronos exports medical cannabis to Poland and Germany. In addition, it has entered joint ventures in Israel, Colombia, and Australia to drive further international cultivation and distribution growth. In the U.S. the company directly sells hemp-derived CBD and has an option to acquire 10.5% of U.S. multistate operator PharmaCann.

SEC Filings

Direct access to Cronos Group Inc. (CRON) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Cronos Group Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Cronos Group Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -0%

Stability -40%

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Cronos Group Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Cronos Group Inc..

Years

Calculation mode

= $179M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$18M	$18M	$18M	$18M	$18M	$18M	$18M	$18M	$18M	$18M	$18M	$179M
DCF		$16M	$15M	$13M	$12M	$11M	$10M	$9.2M	$8.3M	$7.6M	$6.9M	$69M
Value	$179M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	-47%	-165%	5K%	-138%	-444%	-147%	-62%	-3%
ROA	-	-12%	56%	-4%	-28%	-10%	-6%	-5%
ROE	-	-15%	67%	-4%	-30%	-15%	-7%	-4%

Bad Net Margins (-3.25%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-	-	-	-	-	-	-
Debt over Equity	-	-	-	-	-	-	-	-
Growth Stability	-	-	-	-20%	-112%	-73%	-	-112%

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Bad Graham’s Stability (-112%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	321%	94%	112%	65%	28%	5%	40%
Earnings YoY growth	-	1K%	-5K%	-106%	428%	-58%	-56%	-1%
Equity YoY growth	-	133%	1K%	-2%	-22%	-14%	-4%	-12%
FCF YoY growth	-	158%	76%	3%	-5%	-44%	-51%	-