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Cronos Group Inc. (CRON) Stock Guide

November 14, 2020
50
Bull Case
  • Revenue growth higher than the industry and sector averages
  • Company’s profitability is improving
  • Forward P/B ratio low relative to industry peers
  • Cash/Debt ratio is higher than the industry and sector averages
Bear Case
  • Forward P/S ratio high relative to industry peers
  • High short share of float
  • High short interest
  • Enterprise Value/Revenue ratio low relative to industry peers

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 $1.95.

Analysis

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

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 29.10%, higher than the industry and sector average revenue growth (0.07% and 0.52%, 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 1.11, which is low compared to its industry peers’ P/B ratios. See CRON forward Price/Book ratio chart.
  • CRON cash to debt ratio is 130.20, 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 59.16, which is high compared to its industry peers’ P/S ratios. See CRON forward Price/Sales ratio chart.
  • CRON short share of float is 25.11%. 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 14.39. 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 17.06, 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 $7.33
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 $2.52B
Forward P/E Ratio N/A
Price/Book Ratio 68.24
Revenue (TTM) $36.98M
YoY Quarterly Revenue Growth 96.30%
Profit Margin 270.68%

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