Cresco Labs Inc.
Cresco Labs Inc. Fundamental Analysis
Cresco Labs Inc. (CRLBF) shows weak financial fundamentals with a PE ratio of -6.99, profit margin of -7.80%, and ROE of -11.54%. The company generates $0.6B in annual revenue with weak year-over-year growth of -6.04%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -6.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CRLBF's fundamental strength across five key dimensions:
Efficiency Score
WeakCRLBF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCRLBF trades at attractive valuation levels.
Growth Score
ModerateCRLBF shows steady but slowing expansion.
Financial Health Score
ModerateCRLBF shows balanced financial health with some risks.
Profitability Score
WeakCRLBF struggles to sustain strong margins.
Key Financial Metrics
Is CRLBF Expensive or Cheap?
P/E Ratio
CRLBF trades at -6.99 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CRLBF's PEG of 0.45 indicates potential undervaluation.
Price to Book
The market values Cresco Labs Inc. at 0.85 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -1.67 times EBITDA. This is generally considered low.
How Well Does CRLBF Make Money?
Net Profit Margin
For every $100 in sales, Cresco Labs Inc. keeps $-7.80 as profit after all expenses.
Operating Margin
Core operations generate 10.01 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-11.54 in profit for every $100 of shareholder equity.
ROA
Cresco Labs Inc. generates $-4.08 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cresco Labs Inc. produces operating cash flow of $71.39M, showing steady but balanced cash generation.
Free Cash Flow
Cresco Labs Inc. produces free cash flow of $41.50M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.12 in free cash annually.
FCF Yield
CRLBF converts 12.54% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-6.99
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.45
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.85
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.52
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.36
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.49
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.12
vs 25 benchmark
ROA
Return on assets percentage
-0.04
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How CRLBF Stacks Against Its Sector Peers
| Metric | CRLBF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -6.99 | 29.78 | Better (Cheaper) |
| ROE | -11.54% | 792.00% | Weak |
| Net Margin | -7.80% | -23280.00% (disorted) | Weak |
| Debt/Equity | 1.36 | 0.25 | Weak (High Leverage) |
| Current Ratio | 2.49 | 4.60 | Strong Liquidity |
| ROA | -4.08% | -18077.00% (disorted) | Weak |
CRLBF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Cresco Labs Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
93.00%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
40.99%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
280.13%
Industry Style: Defensive, Growth, Innovation
High Growth