Cronos Group (CRON) price speculation: what's next?

12:07 am ET, 07 Jun 2018

Cronos Group (CRON) stock was up 14% post market hours today.  This company,  formerly known as PharmaCan Capital Corp., is a principal investment firm that invests in businesses licensed to produce medical marijuana pursuant to Canada's Marihuana for Medical Purposes Regulations ("MMPR").

The CRON price stock is still significantly below this year's peak, $9.91, achieved in the March time frame.  So what is the CRON stock price forecast?  

The technical analysis suggests strong short-term sentiment for Chronos, along with weak mid-term sentiment and strong long-term sentiment.  

Market research firms such as Capital IQ suggest that Cronos is fairly valued, although the quality of the stock, growth stability and financial health are assessed as poor.  The quality metric uses fundamental data to assess a company’s overall earnings quality in relation to its peers. This metric uses information across all financial statements of the firm.

According to Finstead research, CRON average analyst price target is $9.04.  Based on today's price, CRON price target upside is 14.00%. (visit Finstead.com and type "CRON upside" and "CRON price target" to get the latest data).  

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

Cronos Group Inc. (CRON) Stock Guide

Updated at: 9:56 am ET, 19 May 2020

Before we start: if you're looking for CRON stock price, you can quickly find it out by visiting Finny and typing "CRON quote". If you're looking for a quick scoop on CRON stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "CRON". You'll get all this info in one place. Or you can just type "CRON news" to get the latest stock news.

Looking to buy or sell Cronos Group Inc. (CRON)? Interested in getting the full scoop on CRON, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this CRON stock guide, we'll address key questions about CRON, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are CRON earnings?
2. CRON buy or sell? What is CRON Finny Score?
3. What are the reasons to buy CRON? Why should I buy CRON stock?
4. What are the reasons to sell CRON? Why should I sell CRON stock?
5. What are CRON key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are CRON earnings?

CRON trailing 12-month earnings per share (EPS) is $2.71.

Analysis

2. CRON buy or sell? What is CRON Finny Score?

#{finnyScore:50}Our quantitative analysis shows 4 reasons to buy and 4 reasons to sell CRON, resulting in Finny Score of 50.

3. What are the reasons to buy CRON? Why should I buy CRON stock?

Here are the reasons to buy CRON stock:

  • The company has closed a Canadian $2.4 billion investment of Altria group. With fresh funds, the company can focus on its strategic capital investments.
  • Cronos has focussed on higher-margin alternate products which differentiate the company from other pot startups. This could play in the company's favor in the long-term.
  • The company's revenue growth is very solid. It has also partnered with Ginkgo Bioworks to produce Cultured Cannabinoids.
  • Cronos has strengthened its export business through production expansions in Israel, Colombia, and Australia, and distribution agreements in Poland and Germany.
  • CRON quarterly revenue growth was 84.70%, higher than the industry and sector average revenue growth (0.45% and 1.16%, respectively). See CRON revenue growth chart.
  • CRON profitability is improving. The YoY profit margin change was 331.04 percentage points. See CRON profitability chart.
  • CRON Price/Book ratio is 1.00, which is low compared to its industry peers’ P/B ratios. See CRON forward Price/Book ratio chart.
  • CRON cash to debt ratio is 126.97, higher than the average industry (0.13) and sector (0.16) cash to debt ratio. See CRON cash to debt chart.

4. What are the reasons to sell CRON? Why should I sell CRON stock?

Let's look at the reasons to sell CRON stock (i.e., the bear case):

  • We can expect cannabis taxes to go up in the future, as governments are incentivized to maximize the tax revenue.
  • The existence of the black market limits the potential price increases Cronos can push through to consumers.
  • The company is lagging other cannabis companies in building its production capacity.
  • CRON Price/Sales ratio is 59.25, which is high compared to its industry peers’ P/S ratios. See CRON forward Price/Sales ratio chart.
  • CRON short share of float is 23.46%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See CRON short share of float chart.
  • CRON short interest (days to cover the shorts) ratio is 9.06. The stock garners more short interest than the average industry, sector or S&P 500 stock. See CRON short interest ratio chart.
  • CRON Enterprise Value/Revenue multiple is 19.37, which is high compared to its industry peers’ Enterprise Value/Revenue multiples. See CRON Enterprise Value/Revenue chart.

Key Stats

5. What are CRON key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for CRON:

Metrics CRON
Price $7.07
Average Price Target / Upside N/A
Average Analyst Rating N/A
Forward Dividend Yield 0.00%
Industry Drug Manufacturers - Specialty & Generic
Sector Healthcare
Number of Employees 7
Market Cap $1.73B
Forward P/E Ratio N/A
Price/Book Ratio 59.25
Revenue (TTM) $29.18M
YoY Quarterly Revenue Growth 84.70%
Profit Margin 3,182.03%

If you liked this analysis, check out Stock Guides for other stocks.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

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