Some observers described Aurora Cannabis as an industry powerhouse. It creates products. The company also invests in other marijuana firms. Aurora hopes to turn the collaboration into a long-term boom. Investments have reached the $700-million mark. Management says it looks forward to producing around 570, 000 kilograms of cannabis next year. Aurora’s acquisition of another Canadian weed pharma MedReleaf bolstered this projection. All these developments made Aurora Cannabis as the most encouraging stock in the market.
Good Financial Standing
The company boasts of a solid financial reputation. Overall current assets stand at $220 million. Meanwhile, earnings soared to $55 million so far this year with good profit. Earnings per Share increased to 16 cents. This looks satisfactory for an up and coming enterprise. Aurora’s income of C$16 million is higher compared to the next largest competitor, Canopy Growth. Aurora Cannabis owns an investment of C$55 million in a holdings firm known as Green Organic Dutchman Holdings Limited. It maintains 33 million stocks at C$1.65 per share.
Like Canopy Growth, this company retains supply pacts with nine out of 10 provinces and territories in Canada. In other words, Aurora Cannabis reaches out to roughly 98% of Canada’s populace.
Income and Profits
Since 2016, earnings from the selling of medical pot across this country rose from $1.1 million to 42.7 million. The increase was 39 times more within the last two years. Look at the gross margin in 2017 and 2018:
2017 = 88%
2018 (three quarters only) = 78%
The company’s net profit according to management came from two main sources. These are increasing in values of assets (non-cash acquisitions on derivatives) and securities. Net loss from 2018 operations reached over $74 million. The figure increased from $9.67 million during the previous year. Said factors turned this company into one of the major players in the cannabis marketplace worldwide.
Driving Growth and Dominance
Aurora Cannabis fuels growth through the following:
- Pouring investments in production hubs
- Procuring related businesses across the cannabis supply chain for vertical integration
- Establishing partnerships with enterprises for a broader range.
Many stakeholders believe the only obstruction for possible and present investors is valuation. It can strengthen Aurora’s position as the second-biggest marijuana firm globally by 2019. Aurora Cannabis lies in the same footing as Canopy Growth and Aphria in terms of Price to Sale metrics. Research outfit, Grand View estimated the international medical weed market at $55.8 billion by the year 2025. Another projection stated that Aurora can secure at least 15% of this market.
Like all marijuana stocks, Aurora’s shares surged due to the developments of legalization in North America and states in the USA. Many think Aurora built a name not only as a manufacturer but cannabis hedge fund as well.
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