Cronos Group Inc. Fundamental Analysis (NASDAQ: CRON)
Cronos Group Inc. Fundamental Analysis (NASDAQ: CRON)
Cronos Group Inc. (NASDAQ: CRON) shows moderate financial fundamentals with a PE ratio of 17.48, profit margin of 28.74%, and ROE of 6.46%. The company generates $0.2B in annual revenue with strong year-over-year growth of 26.94%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 71.6/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze CRON's fundamental strength across five key dimensions:
Efficiency Score
WeakCRON struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCRON trades at attractive valuation levels.
Growth Score
ModerateCRON shows steady but slowing expansion.
Financial Health Score
ExcellentCRON maintains a strong and stable balance sheet.
Profitability Score
ModerateCRON maintains healthy but balanced margins.
Key Financial Metrics
Is CRON Expensive or Cheap?
P/E Ratio
CRON trades at 17.48 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CRON's PEG of -0.00 indicates potential undervaluation.
Price to Book
The market values Cronos Group Inc. at 1.14 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 67.73 times EBITDA. This signals the market has high growth expectations.
How Well Does CRON Make Money?
Net Profit Margin
For every $100 in sales, Cronos Group Inc. keeps $28.74 as profit after all expenses.
Operating Margin
Core operations generate 5.12 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.46 in profit for every $100 of shareholder equity.
ROA
Cronos Group Inc. generates $5.91 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cronos Group Inc. produces operating cash flow of $53.24M, showing steady but balanced cash generation.
Free Cash Flow
Cronos Group Inc. generates strong free cash flow of $43.20M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.12 in free cash annually.
FCF Yield
CRON converts 3.77% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.48
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.14
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.88
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.001
vs 25 benchmark
Current Ratio
Current assets to current liabilities
16.18
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How CRON Stacks Against Its Sector Peers
| Metric | CRON Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.48 | 31.56 | Better (Cheaper) |
| ROE | 6.46% | 441.00% | Weak |
| Net Margin | 28.74% | 18300.00% | Weak |
| Debt/Equity | 0.00 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 16.18 | 5.63 | Strong Liquidity |
| ROA | 5.91% | 1512.00% | Weak |
CRON outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Cronos Group Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
188.31%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
88.13%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
116.63%
Industry Style: Defensive, Growth, Innovation
High Growth