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ACB Aurora Cannabis Inc. - Fundamental Analysis

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ACB Stock | Fundamental Analysis & Investment Insights
NASDAQ Healthcare Drug Manufacturers - Specialty & Generic
Current Price Live
$3.77
Analyst Target
$6.38
+69.2% Upside
52W High
$6.67
52W Low
$3.28

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Confidence Score
87%
Analysis Accuracy
Aurora Cannabis Inc. (ACB) exhibits severe financial distress signals, with a Piotroski F-Score of 1/9 indicating weak operational and financial health. The absence of an Altman Z-Score and the company's negative profitability metrics—particularly a -22.51% profit margin and -15.51% ROE—underscore deep operational inefficiencies. Despite a modest 6.8% revenue growth, earnings have collapsed by 94.7% YoY, and the stock trades at a forward P/E of -34.27, reflecting market skepticism. The 52-week price range of $3.28–$6.67 and a 5-year decline of 96.8% highlight prolonged underperformance. These factors collectively point to a high-risk, fundamentally weak investment.

Key Strengths

Positive operating margin of 2.32% suggests some operational efficiency in core business activities
Strong current ratio of 3.06 indicates solid short-term liquidity and buffer against immediate obligations
Low debt-to-equity ratio of 0.18 implies minimal leverage and reduced financial risk from debt
Recent quarter showed a 103.3% Q/Q EPS growth, signaling potential recovery momentum
Price is trading below book value (P/B = 0.55), suggesting potential undervaluation on a balance sheet basis

Key Risks

Piotroski F-Score of 1/9 is extremely low, indicating severe financial deterioration and poor operational performance
Negative ROE (-15.51%) and ROA (-4.36%) reflect inefficient use of equity and assets
Consistently negative earnings with a -94.7% YoY decline and erratic earnings surprises (e.g., -1250% in 2025-08-06)
No analyst coverage (only 1 analyst) and no target price consensus reduce market confidence
Dividend yield and payout ratio are zero, with no indication of future income generation

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