Curaleaf Holdings (CURA) AI Stock Analysis

• Market Cap: $908.75M
• Dividend Yield: N/A
• Average Volume (3M): 462.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.66
• Revenue Growth: -0.11%
• EPS Growth: 11.22%
• Country: CA
• Employees: 5,519
• Sector: Healthcare
• Sector Strength: 42
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.10
• Shares Outstanding: 663,325,000
• 10 Day Avg. Volume: 518,070
• 30 Day Avg. Volume: 462,318
• PEG Ratio: N/A
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.76
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: 0.25
• Enterprise Value/Gross Profit: 2.24
• Enterprise Value/Ebitda: 1.41
• 1Y Price Target: $5.18
• Price Target Upside: 331.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 54 Neutral
• Price Target: C$1.00 ▼( -16.67% Downside)

Curaleaf Holdings' stock score of 54 reflects moderate financial performance with persistent net losses and high leverage risks. Positive international growth and strategic expansions are promising, but mixed technical indicators and challenging valuation metrics offset these positives. The earnings call suggests potential for future growth, yet significant domestic market challenges remain.

Positive Factors

Market Expansion

Expansion into new markets is anticipated to increase revenue streams.

Operational Efficiency

Operational efficiencies are expected to drive margins.

Sales Growth

Sales growth in 2Q24 was largely driven by wholesale revenue growth as the international segment continues to gain traction.

Negative Factors

Competition

The company is facing stiff competition in the cannabis industry.

Financial Performance

EBITDA margins fell short of expectations due to higher G&A spend and heavy promotions at the start of the quarter.

Regulatory Challenges

There are concerns about regulatory challenges in the cannabis market.

Curaleaf Holdings Business Overview & Revenue Model

Company Description

Curaleaf Holdings, Inc. is a leading multi-state cannabis operator in the United States, engaged in the cultivation, production, and distribution of cannabis products. The company operates in both the medical and adult-use cannabis sectors, providing a wide range of products including flower, edibles, topicals, and vape products. With a strong presence in numerous states, Curaleaf has established a significant retail footprint with its dispensaries, catering to a diverse customer base seeking cannabis for health, wellness, and recreational purposes.

How the Company Makes Money

Curaleaf Holdings generates revenue primarily through the sale of cannabis products across its retail dispensaries and wholesale channels. The company's key revenue streams include the direct sale of proprietary branded products, such as Curaleaf, Select, and Grassroots, which are available in various forms including flower, pre-rolls, oils, and edibles. Additionally, Curaleaf earns revenue through wholesale operations where it supplies cannabis products to other dispensaries and retailers. Strategic partnerships and acquisitions also play a vital role in expanding Curaleaf's market presence and product offerings, contributing to its earnings. The company's vertically integrated model ensures control over the entire supply chain, from cultivation to distribution, optimizing cost efficiencies and product quality.

Curaleaf Holdings Financial Statement Overview

Summary

Curaleaf Holdings faces challenges with profitability, evidenced by declining revenues and persistent net losses. While cash flow and operational efficiency show some improvement, high debt levels and leverage risks pose financial stability concerns. The company needs to enhance profitability and manage leverage for sustainable growth.

Income Statement

The company shows a declining revenue trend with a slight drop in total revenue from $1.34 billion in the previous year to $1.31 billion in TTM. The gross profit margin has decreased, indicating increased cost pressures. Furthermore, negative net income results in a negative net profit margin, highlighting ongoing profitability challenges. Though EBIT and EBITDA margins show slight improvements, they remain low, impacting overall profitability.

Balance Sheet

The balance sheet shows a relatively high debt-to-equity ratio, which poses leverage risks. However, the equity ratio remains stable, suggesting a moderate level of equity financing. Return on equity is negative due to net losses, impacting shareholder returns. Overall, the balance sheet shows stability but with notable leverage risks.

Cash Flow

Operating cash flow remains positive, reflecting operational viability. The free cash flow has grown compared to previous periods, improving cash flow stability. However, the free cash flow to net income ratio is affected by persistent losses, and the operating cash flow to net income ratio indicates inefficiencies. Overall, cash flow management shows improvements but remains constrained by net income losses.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.31B	1.34B	1.35B	1.34B	1.21B	626.64M
	Gross Profit
596.92M	639.25M	614.45M	579.03M	687.59M	390.51M
	EBIT
15.32M	20.20M	42.88M	-10.25M	175.63M	63.68M
	EBITDA
217.71M	233.14M	238.76M	220.97M	278.98M	128.59M
	Net Income Common Stockholders
-228.21M	-215.42M	-281.20M	-376.93M	-109.13M	-61.33M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
121.87M	93.03M	91.82M	163.18M	299.33M	73.54M
	Total Assets
2.95B	2.95B	3.10B	3.40B	3.26B	2.39B
	Total Debt
846.60M	853.82M	883.55M	931.91M	753.65M	577.71M
	Net Debt
724.73M	760.80M	800.33M	768.73M	454.32M	504.16M
	Total Liabilities
1.98B	1.96B	1.93B	2.00B	1.45B	1.01B
	Stockholders Equity
814.02M	861.21M	1.05B	1.28B	1.76B	1.38B
Cash Flow		Free Cash Flow
62.65M	64.42M	5.05M	-91.96M	-205.92M	-113.92M
	Operating Cash Flow
159.03M	162.57M	75.26M	46.40M	-33.96M	12.36M
	Investing Cash Flow
-93.78M	-93.83M	-78.69M	-228.62M	-163.97M	-197.11M
	Financing Cash Flow
-48.01M	-54.24M	-67.02M	50.54M	424.80M	224.08M

Curaleaf Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CURA, the sentiment is Negative. The current price of 1.2 is below the 20-day moving average (MA) of 1.24, below the 50-day MA of 1.25, and below the 200-day MA of 2.62, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 47.52 is Neutral, neither overbought nor oversold. The STOCH value of 37.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CURA.

Curaleaf Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRON	72 Outperform	$1.10B	15.95	4.61%	―	38.16%	―
TRUL	55 Neutral	$1.10B	―	-12.39%	―	7.23%	64.93%
CURA	54 Neutral	$908.75M	―	-25.08%	―	-0.11%	11.22%
CL	53 Neutral	$424.54M	―	-15.18%	―	-4.65%	59.09%
Sector *	53 Neutral	$5.14B	3.03	-43.89%	2.83%	16.75%	-0.06%
ACB	50 Neutral	$417.67M	32.73	4.78%	―	16.39%	-98.10%
WEED	47 Neutral	$555.06M	―	-84.50%	―	-16.27%	―

Curaleaf Holdings Corporate Events

Curaleaf Holdings Reports Q1 2025 Results with Strong International Growth

Curaleaf Holdings reported a total revenue of $310 million for the first quarter of 2025, with a notable international revenue growth of 74% year-over-year. Despite a decrease in net revenue compared to the previous year, the company achieved a 50% adjusted gross margin and continued to expand its product offerings and retail locations, demonstrating resilience and strategic positioning for long-term success.

Curaleaf Holdings to Announce Q1 2025 Financial Results

Curaleaf Holdings announced it will release its first quarter 2025 financial and operational results on May 8, 2025, after market close. The company will host a conference call and webcast to discuss these results, providing stakeholders with insights into its performance and strategic direction. This announcement is significant as it offers an opportunity for investors and analysts to evaluate Curaleaf’s market positioning and operational effectiveness in the evolving cannabis industry.

Curaleaf Holdings Reports 2024 Financial Results and Strategic Initiatives

Curaleaf Holdings reported its fourth quarter and full year 2024 financial results, highlighting a slight sequential increase in fourth quarter revenue to $331 million and a gross margin of 48%. Despite a net loss of $71.8 million for the quarter, the company generated significant operating and free cash flow, and aims to expand its leadership position through its ‘Return to our ROOTS’ initiative, focusing on organic growth and innovation.