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Cannara Biotech (LOVE) AI Stock Analysis
Cannara Biotech
(TSX:LOVE)
The score is driven primarily by improving fundamentals (strong growth and profitability turnaround) tempered by recent margin and free-cash-flow volatility. Technicals add support via an established uptrend, while valuation is only moderate given the ~18x P/E and no dividend. The latest earnings call is a net positive due to strong operational momentum and expansion/partnership catalysts, with near-term cash-flow and competition risks noted.
Cannara Biotech (LOVE) vs. iShares MSCI Canada ETF (EWC)
- Market Cap
- CAD 141.06M
- Dividend Yield
- ―
- Average Volume (3M)
- 42.99K
- Price to Earnings (P/E)
- 17.7
- Beta (1Y)
- 0.44
- Revenue Growth
- 14.66%
- EPS Growth
- -33.72%
- Country
- Canada
- Employees
- 452
- Sector
- Healthcare
- Sector Strength
- 51
- Industry
- Drug Manufacturers - Specialty & Generic
Cannara Biotech Business Overview & Revenue Model
Company Description
Cannara Biotech Inc., alongside its affiliated entities, specializes in the indoor cultivation, processing, and distribution of cannabis and related products across Canada. The company operates with a dual business model, encompassing both cannabis o...
How the Company Makes Money
Cannara Biotech makes money primarily by producing cannabis (cultivation) and converting harvested biomass into finished, packaged cannabis products (processing/manufacturing) that are sold into Canada’s regulated adult-use market. Its key revenue st...
Cannara Biotech Earnings Call Summary
The call presents a broadly positive operational and financial picture: double-digit revenue growth (16% QoQ), continued profitability (adjusted EBITDA up 11% and 21 consecutive positive quarters), strengthened market penetration (national share gains and record monthly shares in Ontario and Alberta), accelerated capacity expansion and strategic partnerships (Medican acquisition, Blue River technology, CAD 21M Curaleaf agreement). Notable near-term negatives include lower quarterly free cash flow and operating cash flow versus the prior year driven by higher expansion capex, a modest dip in gross margin from product mix, higher receivables and inventory, and competitive pressures in certain categories. On balance, the highlights — consistent profitability, expanding distribution and market share, accelerated capacity rollout, and strategic deals — outweigh the lowlights tied to timing, investment-driven cash flow effects, and category competition.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Guidance highlighted a demand‑driven, accelerated capacity build: Cannara now has >58,000 kg annualized capacity and expects to activate four additional grow zones by the end of fiscal 2027 to reach ~75,000 kg (with a runway to 100,000 kg), staging three room activations in Q2–Q3 and the final in Q4 after Valleyfield processing upgrades complete in December; new rooms typically take ~5–6 months to meaningfully hit retail. The company also starts the Curaleaf bulk supply agreement on August 1 (up to CAD 21 million over two years, with Curaleaf sponsoring pursuit of EU GMP, a ~1–2 year process once construction is finished), and is funding expansion from internal cash and credit (YTD infrastructure investment >CAD 10.5M, drew CAD 2M of a CAD 10M facility at a 4.83% rate) while maintaining liquidity (CAD 21.8M cash, current assets CAD 97.7M, working capital ~CAD 65.1M) and profitability (Q3 gross cannabis revenue CAD 44.1M, total net revenue CAD 31.8M, adjusted EBITDA CAD 8.5M or 27% margin, net income CAD 4.8M).
Cannara Biotech Financial Statement Overview
Summary
Strong multi-year revenue scaling and a clear shift to sustained profitability, with improving leverage and a higher equity base. Offsetting this, the latest period shows margin compression, operating profitability deterioration versus prior year, and volatile cash conversion with a sharp TTM free-cash-flow pullback.
Income Statement
72PositiveBalance Sheet
74PositiveCash Flow
62Positive| Breakdown | TTM | Aug 2025 | Aug 2024 | Nov 2023 | Aug 2022 | Nov 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 117.76M | 107.32M | 81.75M | 57.26M | 35.84M | 17.02M |
| Gross Profit | 30.97M | 47.22M | 29.79M | 27.23M | 16.74M | 11.86M |
| EBITDA | 15.38M | 28.46M | 15.16M | 15.77M | 7.85M | 4.63M |
| Net Income | 10.86M | 13.08M | 6.44M | 6.95M | 2.31M | -1.53M |
Balance Sheet | ||||||
| Total Assets | 194.49M | 168.65M | 154.72M | 141.52M | 125.62M | 92.02M |
| Cash, Cash Equivalents and Short-Term Investments | 21.81M | 14.36M | 6.62M | 4.27M | 12.11M | 8.16M |
| Total Debt | 37.00M | 41.58M | 48.33M | 45.78M | 48.39M | 20.90M |
| Total Liabilities | 68.64M | 66.43M | 66.77M | 61.78M | 58.88M | 27.91M |
| Stockholders Equity | 125.85M | 102.22M | 87.95M | 79.74M | 66.74M | 64.12M |
Cash Flow | ||||||
| Free Cash Flow | 4.74M | 13.65M | 3.21M | -3.97M | -21.55M | -33.17M |
| Operating Cash Flow | 18.46M | 20.01M | 10.68M | 5.91M | -6.08M | -2.09M |
| Investing Cash Flow | -16.13M | -5.95M | -5.19M | -9.48M | -15.35M | -30.83M |
| Financing Cash Flow | 5.07M | -6.32M | -3.14M | -4.19M | 25.46M | 33.25M |
Cannara Biotech Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LOVE, the sentiment is Positive. The current price of 2.01 is below the 20-day moving average (MA) of 2.06, below the 50-day MA of 2.04, and above the 200-day MA of 1.87, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 46.94 is Neutral, neither overbought nor oversold. The STOCH value of 28.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:LOVE.
Cannara Biotech Peers Comparison
Overall Rating
TSE:XLY83Outperform- TSE:LOVE71Outperform
TSE:OGI59.8Neutral
TSE:GRIN47Neutral
TSE:JUSH42Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TSE:XLY | 83Outperform | CAD 373.71M | 10.87 | 18.12% | ― | 18.79% | 10.74% |
| TSE:LOVE | 71Outperform | CAD 198.55M | 17.69 | 9.45% | ― | 14.66% | -33.72% |
| TSE:OGI | 60Neutral | CAD 186.13M | 2.05 | 21.99% | ― | 38.14% | 2030.00% |
| Sector * | 51Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
| TSE:GRIN | 47Neutral | CAD 114.97M | -21.71 | -12.66% | ― | 34.29% | -307.69% |
| TSE:JUSH | 42Neutral | CAD 133.80M | -1.72 | 40.27% | ― | 5.37% | 17.78% |
* Healthcare Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TSE:LOVE | Cannara Biotech, Inc. | 2.01 | 0.32 | 18.93% | |
| TSE:JUSH | Jushi Holdings Inc | 0.67 | -0.20 | -22.99% | |
| TSE:OGI | Organigram Global Inc. | 1.32 | -0.88 | -40.00% | |
| TSE:XLY | Auxly Cannabis Group (Otc) | 3.62 | 1.45 | 66.82% | |
| TSE:GRIN | Grown Rogue International | 0.46 | -0.05 | -9.80% |
Cannara Biotech Corporate Events
Cannara Biotech Names New CFO to Support Growth Strategy
PositiveCannara Biotech has appointed Nicholas Fozard as its new Chief Financial Officer, with the role to take effect once he receives the required Health Canada security clearance. Fozard, a CPA with extensive cannabis-sector finance experience at Organigr...
Source Rock Royalties Declares Monthly Dividend and Grants RSUs to Leadership
PositiveSource Rock Royalties has declared a monthly cash dividend of $0.0065 per common share, payable on August 14, 2026, to shareholders of record as of July 31, 2026, and designated it as an eligible dividend for Canadian tax purposes. The move underscor...
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.
Date of analysis: Jul 16, 2026