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Canopy Growth Corporation

CGC
16
Drug Manufacturers - Specialty & Generic · Healthcare
Price
$0.94
+0.01 (+1.37%)
Market Cap
$396.8M
Exchange
NASDAQ
Winston Score
16
Winston is worried
Weak fundamentals across most pillars.

Share count rising — dilution

+7516.3% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 39.1M (2022) → 2.98B (2026)

Canopy Growth Corporation is a Canadian cannabis company that grows, packages, and sells marijuana and hemp products. Its main products include dried cannabis flower, oils, edibles, and beverages sold under brands like Tweed and Storz & Bickel vaporizers. It sells to adult recreational users and medical patients, primarily in Canada, with some operations in Germany and the United States hemp market.

The company makes money by selling cannabis products directly to government-run stores in Canada and through medical channels in other countries. With a market cap of around $400 million, Canopy Growth is one of the larger cannabis companies, but it has struggled to turn a profit, posting negative operating margins. The biggest risk the company faces is continued cash burn — it has lost money for years — while the key growth opportunity depends on whether the U.S. federal government eventually loosens restrictions on cannabis, which would open a much larger market.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-10.7% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-37.9% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

Declining (-100% vs prior year)

0.0% of revenue

Below sector average (18%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

8.9%ownership

Rising

Insiders increasing their stake — aligned with shareholders

Cash Runway

~9 months

$114M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Short runway — potential dilution ahead through share issuance

Cash watch

Canopy Growth Corporation has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
16.2%
Thin — 16.2% gross margin
Operating Margin
-28.1%
Losing money on operations — -28.1%
ROCE
-2.3%
Weak — -2.3% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY
+0.6%
Nearly flat sales (0.6% YoY)
EPS YoY
N/A
Data not available
EPS Consistency
0/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
N/A
Data not available
FCF Margin
-31.1%
Burning cash (-31.1%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity
0.62
Moderate — manageable debt (0.62)
Interest Cover
N/A
Data not available

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Valuation

P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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