Cronos Group (CRON) AI Stock Analysis

• Market Cap: C$1.35B
• Dividend Yield: N/A
• Average Volume (3M): 192.45K
• Price to Earnings (P/E): 52.1
• Beta (1Y): 1.24
• Revenue Growth: 31.72%
• EPS Growth: N/A
• Country: CA
• Employees: 459
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.14
• Shares Outstanding: 382,939,580
• 10 Day Avg. Volume: 108,857
• 30 Day Avg. Volume: 192,453
• PEG Ratio: -0.12
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 6.53
• P/FCF Ratio: 134.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 63 Neutral
• Price Target: C$4.00 ▲(13.31% Upside)

Cronos Group's overall stock score reflects a mix of strong earnings performance and financial stability, offset by operational inefficiencies and valuation concerns. The earnings call provided a positive outlook with significant revenue growth and improved margins, which are the most impactful factors. However, technical indicators suggest a lack of momentum, and the high P/E ratio indicates potential overvaluation.

Positive Factors

Revenue Growth

The 21% year-over-year revenue growth indicates strong demand and effective market strategies, supporting long-term business expansion.

Improved Gross Margin

Improved gross margins reflect better cost management and operational efficiency, enhancing profitability and competitiveness.

Strong Balance Sheet

A strong balance sheet with no debt provides financial stability and flexibility for strategic investments and growth opportunities.

Negative Factors

Operational Inefficiencies

Negative EBIT and EBITDA margins highlight ongoing operational challenges, potentially impacting profitability and long-term growth.

Cash Flow Challenges

Negative free cash flow suggests cash management issues, which can limit investment in growth initiatives and affect financial health.

Limited Growth in Canadian Market

Slower growth in the Canadian market compared to international markets may hinder overall revenue expansion and market share gains.

Cronos Group Business Overview & Revenue Model

Company Description

Cronos Group (CRON) is a global cannabinoid company focused on the production, marketing, and distribution of cannabis products. Operating in both the medical and recreational sectors, Cronos Group offers a diverse range of products, including dried flower, oils, and edibles, leveraging innovative technology and research to create unique cannabis-derived solutions. The company is dedicated to advancing the growth of the cannabis industry while adhering to quality standards and regulatory compliance across various markets.

How the Company Makes Money

Cronos Group generates revenue primarily through the sale of its cannabis products, including dried flower, oils, and edibles. The company operates in multiple jurisdictions, capturing revenue from both recreational and medical cannabis markets. Key revenue streams include direct sales to consumers through retail dispensaries and online platforms, as well as wholesale distribution to other retailers. Additionally, Cronos Group has strategic partnerships, including a significant investment from Altria Group, which provides capital and expertise in marketing and distribution, thereby enhancing its market presence and operational capabilities. The company may also explore opportunities in international markets to further diversify its revenue sources.

Cronos Group Financial Statement Overview

Summary

Cronos Group is showing signs of recovery with revenue growth and improved gross profit margins. The balance sheet is strong with low leverage, providing financial stability. However, operational inefficiencies persist, as indicated by negative EBIT and EBITDA margins. Cash flow challenges remain, with negative free cash flow posing potential liquidity risks. Overall, the company is on a positive trajectory but needs to address operational and cash flow issues to sustain growth.

Income Statement

Cronos Group has shown a positive trend in revenue growth with a 4.57% increase in TTM, indicating a recovering trajectory. The gross profit margin improved to 27.65% in TTM, reflecting better cost management. However, the company still faces challenges with negative EBIT and EBITDA margins, indicating operational inefficiencies. The net profit margin is positive at 39.68%, driven by non-operational factors, which may not be sustainable long-term.

Balance Sheet

The balance sheet is strong with a very low debt-to-equity ratio of 0.0017, indicating minimal leverage and financial risk. The return on equity has improved to 4.63% in TTM, showing better profitability relative to shareholder equity. The equity ratio remains robust, suggesting a stable financial position with a high proportion of assets funded by equity.

Cash Flow

Cash flow analysis reveals a mixed picture. While operating cash flow is positive, the free cash flow remains negative, indicating ongoing capital expenditure or operational challenges. The operating cash flow to net income ratio is 0.57, suggesting moderate cash generation efficiency. The free cash flow to net income ratio is negative, highlighting potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	130.46M	117.50M	87.03M	87.54M	64.02M	46.57M
Gross Profit	48.03M	30.45M	11.88M	15.58M	-17.45M	-25.75M
EBITDA	-16.58M	-45.37M	-72.28M	-93.81M	-150.79M	-173.09M
Net Income	18.49M	41.04M	-73.79M	-170.26M	-392.81M	-72.90M
Balance Sheet
Total Assets	1.18B	1.17B	1.14B	1.21B	1.40B	1.93B
Cash, Cash Equivalents and Short-Term Investments	834.42M	858.80M	861.53M	877.72M	1.00B	1.29B
Total Debt	2.01M	2.02M	2.55M	3.88M	9.81M	9.81M
Total Liabilities	45.02M	55.33M	43.96M	72.05M	63.46M	217.51M
Stockholders Equity	1.08B	1.06B	1.10B	1.14B	1.34B	1.71B
Cash Flow
Free Cash Flow	-9.41M	5.69M	-46.26M	-93.98M	-165.88M	-177.85M
Operating Cash Flow	20.02M	18.84M	-42.84M	-88.95M	-153.62M	-142.46M
Investing Cash Flow	-62.19M	175.15M	-59.50M	-1.84M	-28.90M	20.15M
Financing Cash Flow	-10.94M	-1.23M	-1.03M	-2.90M	-13.44M	-5.46M

Cronos Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.53
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CRON, the sentiment is Positive. The current price of 3.53 is below the 20-day moving average (MA) of 3.54, below the 50-day MA of 3.57, and above the 200-day MA of 2.95, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 50.12 is Neutral, neither overbought nor oversold. The STOCH value of 40.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CRON.

Cronos Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRON	―	C$1.35B	52.06	1.73%	―	31.72%	―
TRUL	―	C$1.94B	―	-12.60%	―	4.92%	-64.84%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ACB	―	C$392.92M	―	-0.70%	―	28.42%	48.33%
CURA	―	C$3.03B	―	-24.93%	―	-2.64%	1.65%
CL	―	$755.18M	―	-10.02%	―	-5.65%	73.45%
WEED	―	C$620.45M	―	-98.42%	―	-4.24%	55.82%

Cronos Group Corporate Events

Cronos Group Terminates VP Lloyd Wilson for Cause

On August 29, 2025, Cronos Group Inc. terminated Lloyd Wilson, the Vice President, Controller, and Principal Accounting Officer, for cause, effective immediately. The termination was not related to the company’s financial or operating results, internal controls, or any disagreements regarding financial or reporting practices.

The most recent analyst rating on (TSE:CRON) stock is a Hold with a C$4.00 price target. To see the full list of analyst forecasts on Cronos Group stock, see the TSE:CRON Stock Forecast page.

Cronos Group’s Earnings Call Highlights Growth and Expansion

Cronos Group’s latest earnings call exuded a positive sentiment, underscored by impressive revenue growth and significant improvements in gross margins. The company showcased strong brand performance and international expansion, although it continues to grapple with supply constraints. Despite these challenges, Cronos maintains a robust financial position and is strategically investing for future growth.

Cronos Group Reports Strong Q2 2025 Performance

Cronos Group Inc. is a global cannabinoid company focused on cannabis research, technology, and product development, with a diverse brand portfolio including Spinach, PEACE NATURALS, and Lord Jones.

Cronos Group Appoints New Principal Accounting Officer

On August 7, 2025, Cronos Group announced the appointment of Lloyd Wilson as the new Principal Accounting Officer, succeeding James McGinness. Wilson brings over 20 years of financial leadership experience, previously serving as Corporate Controller at Vital Farms, Inc. Additionally, Cronos reported a 21% year-over-year increase in net revenue for Q2 2025, driven by strong demand in international markets, particularly in Israel where PEACE NATURALS® remains the top cannabis brand. The company highlighted its robust financial health and strategic positioning for accelerated growth in the latter half of 2025.

The most recent analyst rating on (TSE:CRON) stock is a Sell with a C$2.00 price target. To see the full list of analyst forecasts on Cronos Group stock, see the TSE:CRON Stock Forecast page.