(VIANEWS) – Canopy Growth Corporation (CGC) shares have increased by 16.15% over five sessions, from EUR0.57 to EUR0.66, as of 20:05 EST on Monday evening. This surge follows two straight sessions of gains. NASDAQ currently sits 1.02% lower at EUR14,159.47 following an upward momentum-based session; CGC closed Monday with its last close at EUR0.62, 87.04% below its 52-week high of EUR4.77
About Canopy Growth
Canopy Growth Corporation is a premier cannabis and hemp-based products manufacturer that operates across Canada, the US, and Germany. Their wide array of products includes dried cannabis flower, extracts/concentrates/beverages/gummies/vapes for recreational and medical purposes under different brands like Tweed, 7ACRES, DOJA, Ace Valley Quatreau Deep Space First+Free Surity Pro Spectrum Therapeutics Vert Tokyo Smoke Twd Martha Stewart CBD DNA Genetics BioSteel Storz & Bickel This Works HiWay Simple Stash Whisl & Truverra. Established in 2009 they operate out of Smiths Falls Canada
Yearly Analysis
Canopy Growth’s stock (Ticker: WEED) is currently trading at EUR0.66, significantly below its 52-week high of EUR4.77 but higher than its 52-week low of EUR0.35. This indicates a substantial decline in value during 2018, but has more recently rebounded after reaching its lowest point.
Canopy Growth’s financial performance is projected to decline with an anticipated sales growth rate of negative 17.6% this year and 1.1% projected for next year.
Canopy Growth’s EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) stands at EUR2.37; although this metric provides insight into its profitability, other financial metrics, including revenue and net income can provide more complete analysis of its health.
Canopy Growth’s stock has underperformed relative to its 52-week high and 52-week low; however, investors should exercise caution and conduct further research into their financial health and growth prospects before making any investment decisions.
Technical Analysis
Quarter Analysis
Canopy Growth has experienced a negative 15.4% sales growth for its next quarter. This indicates a decrease in revenue for Canopy in this upcoming period.
Canopy Growth is projected to experience growth estimates between 87.5 percent and 95.8 percent for this and subsequent quarters, suggesting they anticipate significant revenue gains over that timeframe.
Canopy Growth’s year-on-year quarterly revenue growth has steadily declined over the years and now stands at 368.59M for twelve trailing months – an indication of its ongoing revenue decline.
Canopy Growth’s negative sales growth for the coming quarter may cause investors to be cautious; however, they should also remain optimistic regarding its growth estimates for this and subsequent quarters. Furthermore, its year-on-year revenue decline should also be taken into consideration when making investment decisions.
Equity Analysis
Canopy Growth’s trailing twelve month earnings per share (EPS) stand at EUR-1.56 indicating it is currently not profitable on an individual share level and its return on equity (ROE) for those twelve trailing months stands at -99.66% suggesting it does not generate any positive return for shareholders who invested their equity into it.
Canopy Growth is a growth-oriented company operating in an industry still at its nascent stages. Therefore, they may invest heavily in R&D, marketing and expanding operations without yet realizing significant profits; yet these investments could lead to long-term gains and greater long-term profits.
Investors should carefully evaluate Canopy Growth’s investment outlook by considering factors like its financial position, competitive landscape and growth prospects. Reviewing financial statements and reports from Canopy Growth as well as industry analysis and trends may provide additional insight into its future growth and profitability potential.
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