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Canopy Growth
(TSX:WEED)
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Rating:53Neutral
Price Target:
C$1.00
▼(-30.07% Downside)
Action:Reiterated
Date:08/17/26
The score is held back primarily by weak financial performance (large ongoing losses and negative operating/free cash flow) despite improved leverage and a sharp revenue rebound. The earnings call adds support due to clear guidance toward positive adjusted EBITDA and visible margin/revenue improvements alongside strong cash. Technicals are only mildly constructive (early stabilization but still below longer-term averages), and valuation remains challenged given negative earnings and no provided dividend yield.
Positive Factors
Revenue and margin improvement
Broad-based revenue growth and a substantial increase in adjusted gross margin indicate that operating and cost-structure initiatives are improving the business economics. If maintained, these gains can support stronger contribution margins and provide a credible foundation for eventual sustainable profitability.
Negative Factors
Deep ongoing unprofitability
Severe ongoing losses show that revenue growth has not yet translated into sustainable earnings. Persistently negative operating profitability limits internally funded investment, weakens returns on the capital base, and leaves the company dependent on successful execution of its improvement plan.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and margin improvement
Broad-based revenue growth and a substantial increase in adjusted gross margin indicate that operating and cost-structure initiatives are improving the business economics. If maintained, these gains can support stronger contribution margins and provide a credible foundation for eventual sustainable profitability.
Read all positive factors
Canopy Growth (WEED) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$543.65M
Dividend YieldN/A
Average Volume (3M)522.33K
Price to Earnings (P/E)―
Beta (1Y)2.30
Revenue Growth6.81%
EPS Growth85.26%
CountryCA
Employees1,128
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.67
Shares Outstanding423,037,700
10 Day Avg. Volume416,542
30 Day Avg. Volume522,325
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.29
Price to Sales (P/S)0.53
P/FCF Ratio-0.81
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.19
Revenue Forecast (FY)C$346.11M
Canopy Growth Business Overview & Revenue Model
Company Description
Canopy Growth Corporation, through its various operating units, is actively involved in the cultivation, marketing, and distribution of cannabis and hemp-derived products. These offerings serve both recreational consumers and medical patients acro...
How the Company Makes Money
Canopy Growth makes money primarily by selling branded cannabis and cannabinoid products into regulated channels and, to a lesser extent, through ancillary and licensing-type arrangements (where applicable).
1) Canadian adult-use cannabis sales: ...
Canopy Growth Earnings Call Summary
Earnings Call Date:Aug 07, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 06, 2026
Earnings Call Sentiment Positive
The call conveyed broad-based operational improvement and tangible progress: year-over-year revenue growth (+13% consolidated), strong segment performances (Canada medical +22%, cannabis +14%, Storz & Bickel +6%), substantial adjusted gross margin expansion (+600 bps to 31%), improved adjusted EBITDA (59% improvement), and a strong cash position (CAD 337M). Management outlined clear operational initiatives (cultivation yield, EU GMP certification, supply chain optimization) and reported meaningful synergies from the MTL acquisition (CAD 8M realized toward a CAD 10M target). Key challenges include a 29% Veterans Affairs reimbursement cut affecting medical margins, a CAD 2.6M non-cash acquisition-related charge lowering reported gross margin to 22%, continued negative adjusted EBITDA (albeit improved), and higher operating cash usage in the quarter. Overall, positives — consistent growth, margin improvement, and balance sheet strength — materially outweigh the remaining execution and market headwinds.Positive Updates
Consolidated Revenue Growth
Net revenue of CAD 81.2 million in Q1 FY2027, up 13% year-over-year, driven by growth across all business lines.
Negative Updates
Veterans Affairs Canada Reimbursement Cut
A headline reimbursement reduction of 29% from Veterans Affairs Canada reduced order values and pressured margins in the medical channel; company is mitigating impact but continues to face this headwind.
Read all updates
Q1-2027 Updates
Positive
Negative
Consolidated Revenue Growth
Net revenue of CAD 81.2 million in Q1 FY2027, up 13% year-over-year, driven by growth across all business lines.
Read all positive updates
Company Guidance
Management guided that it expects year‑over‑year revenue growth throughout fiscal 2027 and to reach positive adjusted EBITDA during the year, building on Q1 results of CAD 81.2 million net revenue (+13% YoY; cannabis segment +14%, Storz & Bickel +6%), with Canada medical CAD 25.8M (+22%), Canadian adult‑use CAD 29.7M (+10%) and international +10%. They reported adjusted consolidated gross margin of 31% in Q1 (up 600 bps YoY), cannabis adjusted gross margin 26%, Storz & Bickel gross margin 48% (versus 29% a year ago), an adjusted EBITDA loss of CAD 3.2M (a 59% improvement), cash of CAD 337M and CAD 25M cash used in operating activities in the quarter; near‑term targets include mid‑30s adjusted gross margin by year‑end, realizing CAD 10M run‑rate synergies within 18 months (currently executing CAD 8M, up from CAD 6M), modest targeted CapEx to drive cultivation/yield improvements, EU‑GMP certification for Smiths Falls during the fiscal year, and the start of UK flower shipments with revenue expected in H2.Canopy Growth Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
46
Neutral
Cash Flow
22
Negative
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 319.96M | 284.60M | 269.00M | 297.15M | 333.25M | 546.65M |
| Gross Profit | 77.73M | 69.67M | 79.51M | 80.88M | -98.38M | 66.96M |
| EBITDA | -33.65M | -188.22M | -479.31M | -312.83M | -2.88B | -1.55B |
| Net Income | -236.61M | -262.91M | -598.12M | -657.27M | -3.28B | -1.74B |
Balance Sheet | ||||||
| Total Assets | 1.10B | 1.12B | 917.70M | 1.30B | 2.44B | 6.82B |
| Cash, Cash Equivalents and Short-Term Investments | 336.63M | 369.73M | 131.47M | 210.77M | 773.22M | 2.30B |
| Total Debt | 277.33M | 278.71M | 348.40M | 668.00M | 1.41B | 1.72B |
| Total Liabilities | 415.29M | 421.14M | 430.49M | 799.82M | 1.68B | 3.20B |
| Stockholders Equity | 688.63M | 697.59M | 487.21M | 500.37M | 758.43M | 3.48B |
Cash Flow | ||||||
| Free Cash Flow | -91.26M | -69.76M | -177.03M | -285.95M | -568.10M | -639.87M |
| Operating Cash Flow | -85.58M | -63.81M | -165.75M | -281.95M | -557.55M | -465.73M |
| Investing Cash Flow | -14.78M | -21.35M | -47.79M | 241.59M | 433.38M | -884.11M |
| Financing Cash Flow | 366.19M | 332.41M | 148.66M | -465.06M | -19.69M | 1.26B |
Canopy Growth Technical Analysis
Negative
1.43
Price Trends
1.34
Negative
1.36
Negative
1.45
Negative
Market Momentum
-0.03
Positive
33.54
Neutral
29.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WEED, the sentiment is Negative. The current price of 1.43 is above the 20-day moving average (MA) of 1.29, above the 50-day MA of 1.34, and below the 200-day MA of 1.45, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 33.54 is Neutral, neither overbought nor oversold. The STOCH value of 29.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:WEED.
Canopy Growth Risk Analysis
Canopy Growth disclosed 85 risk factors in its most recent earnings report. Canopy Growth reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Canopy Growth Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | C$336.55M | 10.00 | 18.12% | ― | 18.79% | 10.74% | |
75 Outperform | C$1.69B | 17.17 | 6.46% | ― | 36.21% | 264.71% | |
61 Neutral | C$193.18M | 2.11 | 21.99% | ― | 38.14% | 2030.00% | |
53 Neutral | C$543.65M | -1.77 | -29.85% | ― | 6.81% | 85.26% | |
52 Neutral | C$409.80M | -3.35 | -21.00% | ― | -18.93% | -472.15% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
44 Neutral | C$257.14M | -3.89 | -45.81% | ― | -8.14% | 66.53% |
* Healthcare Sector Average
TSE:WEED
Canopy Growth
1.21
-0.71
-36.98%
TSE:OGI
Organigram Global
1.37
-1.29
-48.50%
TSE:ACB
Aurora Cannabis
6.32
-1.09
-14.71%
TSE:XLY
Auxly Cannabis Group
3.26
1.44
79.22%
TSE:CRON
Cronos Group
4.58
1.06
30.11%
TSE:TSND
TerrAscend Corp
0.69
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Canopy Growth Corporate Events
Regulatory Filings and ComplianceShareholder Meetings
Canopy Growth Adjourns 2026 Shareholder Meeting After Quorum Shortfall
Neutral
Sep 25, 2026
Canopy Growth Corporation has postponed its 2026 annual general and special meeting of shareholders after failing to secure the required quorum under Nasdaq rules and its own bylaws. The meeting, originally set for September 25, 2026, will reconve...
Business Operations and StrategyRegulatory Filings and ComplianceShareholder Meetings
Canopy Growth Extends Proxy Voting Deadline to Secure Quorum for 2026 Meeting
Positive
Sep 23, 2026
Canopy Growth has extended the proxy voting deadline for its 2026 Annual General and Special Meeting to September 25, 2026, at 12:00 p.m. ET, with the meeting to be held virtually later that day. The move is intended to give shareholders more time...
Business Operations and StrategyDelistings and Listing ChangesRegulatory Filings and ComplianceShareholder MeetingsStock Split
Canopy Growth Urges Early Shareholder Voting Ahead of 2026 AGM
Neutral
Aug 17, 2026
Canopy Growth has mailed proxy materials and its fiscal 2026 annual report ahead of its Annual General and Special Meeting on September 25, 2026, which will be held via live audio webcast. Shareholders of record as of July 31, 2026, are urged to v...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Canopy Growth Renews EU GMP Certification as European Medical Cannabis Sales Rise
Positive
Aug 14, 2026
Canopy Growth has secured renewed EU GMP certification for its Kincardine, Ontario cultivation facility, reinforcing its ability to export Canadian-grown cannabis flower to medical markets across Europe. The facility serves as the anchor of the co...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Canopy Growth Posts Q1 Revenue and Margin Gains on Cannabis Expansion
Positive
Aug 7, 2026
Canopy Growth reported first quarter fiscal 2027 net revenue of $81.2 million, up 13 percent year over year, with growth across Canada medical and adult-use cannabis, international markets, and its Storz Bickel device business. The acquisition of...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.