Aurora Cannabis Inc. (ACB)
Aurora Cannabis Inc. produces and distributes cannabis and cannabis derivative products in Canada and internationally. With a diverse brand portfolio and involvement in various aspects of the cannabis industry, Aurora aims to capitalize on the growing global cannabis market.
Company Overview
Aurora Cannabis Inc. (ACB) is a global cannabis leader with a diverse portfolio of brands and a vertically integrated business model, poised to capitalize on the expanding international cannabis market with a strategic focus on high-margin products and efficient operations, trading at a P/E of 6.64.
Investment Thesis
Aurora Cannabis Inc. presents a compelling investment opportunity due to its established presence in the growing cannabis market and its strategic focus on high-margin products. With a current Profit Margin of 11.2% and Gross Margin of 62.7%, Aurora demonstrates its ability to generate profits. The company's diverse brand portfolio and international operations provide a solid foundation for future growth. The increasing acceptance and legalization of cannabis globally will drive demand for Aurora's products. Key value drivers include continued expansion into new international markets, the development and launch of innovative cannabis products, and ongoing cost optimization efforts. The current P/E ratio of 6.64 suggests that the stock may be undervalued relative to its earnings potential. Investors should consider ACB for its long-term growth potential in the evolving cannabis industry.
Key Highlights
- Market Cap of $0.20B reflects Aurora's current valuation in the cannabis market.
- P/E ratio of 6.64 indicates the stock's valuation relative to its earnings.
- Profit Margin of 11.2% demonstrates the company's ability to generate profits from its operations.
- Gross Margin of 62.7% highlights the efficiency of Aurora's production and sales processes.
- Beta of 1.36 suggests that the stock is more volatile than the overall market.
Competitors
Strengths
- Diverse brand portfolio.
- Established production capacity.
- International presence.
- Focus on medical cannabis.
Weaknesses
- History of net losses.
- High operating expenses.
- Dilution through equity financing.
- Dependence on regulatory approvals.
Catalysts
- Upcoming: Potential regulatory changes in key international markets could open new opportunities.
- Ongoing: Continued expansion of the company's product line with innovative cannabis products.
- Ongoing: Increasing acceptance and legalization of cannabis globally.
Risks
- Potential: Regulatory changes could negatively impact the company's operations.
- Ongoing: Intense competition could erode market share and profitability.
- Ongoing: Price volatility in the cannabis market could impact revenue and earnings.
- Potential: Negative perceptions of cannabis could limit market growth.
Growth Opportunities
- Expansion into International Markets: Aurora has the opportunity to expand its presence in international markets, particularly in Europe and Latin America, where cannabis legalization is progressing. By establishing strategic partnerships and distribution networks, Aurora can tap into new revenue streams and diversify its geographic footprint. The global cannabis market is projected to reach $42.7 billion by 2027, offering a substantial opportunity for Aurora to increase its market share.
- Development of Innovative Cannabis Products: Aurora can drive growth by developing and launching innovative cannabis products that cater to evolving consumer preferences. This includes new formulations, delivery methods, and product categories, such as edibles, beverages, and wellness products. Investing in research and development and collaborating with scientific institutions can help Aurora stay ahead of the curve and capture new market segments. The market for cannabis-infused products is expected to grow rapidly in the coming years.
- Focus on High-Margin Medical Cannabis: Aurora can enhance its profitability by focusing on the high-margin medical cannabis market. This includes developing specialized cannabis products for specific medical conditions and building relationships with healthcare professionals and patients. The medical cannabis market is less price-sensitive than the recreational market, offering opportunities for higher margins. The global medical cannabis market is projected to reach $56 billion by 2028.
- Strategic Acquisitions and Partnerships: Aurora can accelerate its growth through strategic acquisitions and partnerships with other companies in the cannabis industry. This includes acquiring companies with complementary technologies, brands, or distribution networks. Strategic partnerships can also provide access to new markets and expertise. The cannabis industry is consolidating, and Aurora can play a role in shaping the future landscape through strategic M&A activity.
- Cost Optimization and Operational Efficiency: Aurora can improve its financial performance by focusing on cost optimization and operational efficiency. This includes streamlining its production processes, reducing overhead expenses, and improving its supply chain management. By becoming a more efficient operator, Aurora can enhance its profitability and competitiveness. The company has already made progress in this area, but there is still room for further improvement.
Opportunities
- Expansion into new international markets.
- Development of innovative cannabis products.
- Strategic acquisitions and partnerships.
- Increasing acceptance of cannabis for medical and recreational use.
Threats
- Intense competition.
- Evolving regulations.
- Price volatility.
- Negative perceptions of cannabis.
Competitive Advantages
- Brand recognition: Strong brand portfolio including Aurora, San Rafael '71, and MedReleaf.
- Production Capacity: Significant cultivation and production capacity.
- Distribution Network: Established distribution network in Canada and select international markets.
- Intellectual Property: Patents and proprietary technologies related to cannabis cultivation and product development.
About
Aurora Cannabis Inc., headquartered in Edmonton, Canada, is a key player in the global cannabis industry. Founded with a vision to be a leading cannabis company, Aurora has evolved through strategic acquisitions and organic growth to establish a significant presence in both the medical and recreational cannabis markets. The company's operations span the entire cannabis value chain, from facility engineering and design to cannabis breeding, research, production, derivatives, product development, wholesale, and retail distribution. Aurora produces a wide array of cannabis products, including dried cannabis, cannabis oil and capsules, and topical kits, catering to diverse consumer preferences and medical needs. Its brand portfolio includes well-known names such as Aurora, Aurora Drift, San Rafael '71, Daily Special, AltaVie, MedReleaf, CanniMed, Whistler, Woodstock, and WMMC. Aurora also develops medical cannabis products in various forms, including oral, topical, edible, and inhalable options. Furthermore, the company provides patient counseling services and cannabis analytical product testing services, solidifying its position as a comprehensive cannabis solutions provider. Aurora's international footprint extends beyond Canada, with distribution and sales in select international markets, positioning the company to benefit from the increasing global acceptance and legalization of cannabis.
What They Do
- Produces and sells dried cannabis.
- Manufactures and distributes cannabis oils and capsules.
- Offers topical cannabis products.
- Sells vaporizers and accessories.
- Develops medical cannabis products (oral, topical, edible, inhalable).
- Operates a network of cannabis counseling centers (CanvasRX).
- Provides patient counseling services.
- Offers cannabis analytical product testing services.
Business Model
- Cultivation and production of cannabis.
- Wholesale distribution to retailers.
- Direct-to-consumer sales through online channels and retail stores.
- Licensing of cannabis brands and technologies.
Industry Context
Aurora Cannabis operates in the rapidly evolving cannabis industry, which is experiencing significant growth due to increasing legalization and acceptance of cannabis for both medical and recreational purposes. The market is characterized by intense competition, with companies vying for market share through product innovation, branding, and distribution partnerships. Aurora competes with other major cannabis producers such as Canopy Growth Corporation (CGC) and smaller players focusing on niche markets. The industry is also subject to evolving regulations, which can impact market access and profitability. The global cannabis market is projected to reach billions of dollars in the coming years, presenting significant opportunities for companies like Aurora that can effectively navigate the regulatory landscape and capture market share.
Key Customers
- Medical cannabis patients seeking relief from various conditions.
- Adult consumers for recreational use.
- Wholesale distributors and retailers.
- Other cannabis companies through licensing agreements.
Financials
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q4 2025 | $94M | $2M | $0.03 |
| Q3 2025 | $88M | $32M | $0.57 |
| Q2 2025 | $88M | $32M | $0.57 |
| Q1 2025 | $91M | -$25M | $-0.44 |
Source: Company filings
Chart & Info
Price Chart
Aurora Cannabis Inc. (ACB) stock price: $4.28 (-0.06, -1.38%)
Why Bull
- •Recent insider buying suggests confidence in ACB's future prospects, indicating that those closest to the company believe in its potential.
- •Community sentiment has shifted positively, with discussions highlighting recent product innovations that could capture market interest.
- •Analysts note that ACB has strengthened its supply chain, which is critical for meeting increasing demand in the cannabis sector.
- •The overall trend in cannabis legalization is gaining momentum, positioning ACB to benefit from a broader market expansion.
Why Bear
- •Concerns over regulatory challenges persist, as changes in legislation could impact ACB's operational capabilities.
- •Recent social sentiment has revealed skepticism about ACB's ability to compete with larger, more established players in the cannabis market.
- •Market perception remains cautious due to ACB's historical volatility, which raises questions about its stability amid changing market conditions.
- •Insider selling has also been noted, which may signal a lack of confidence from some executives regarding the company's short-term outlook.
Latest News
-
'Federal Agency Finalized Rule For CBD Medicare Coverage Pilot Program Weeks Ago, Key Hemp Stakeholder Says'- Marijuana Moment
benzinga · Feb 13, 2026
-
'GOP Congressman Isn't Sure Marijuana Rescheduling Is A DOJ 'Priority,' But Remains Optimistic About Progress Under Trump' - Marijuana Moment
benzinga · Feb 10, 2026
-
Weekly Roundup on the Cannabis Sector & Psychedelic Sector
Market Exclusive · Feb 8, 2026
-
Earnings Scheduled For February 4, 2026
benzinga · Feb 4, 2026
Technical Analysis
Rationale
AI-generated technical analysis for ACB including trend direction, momentum, and pattern recognition.
What to Watch
Key support and resistance levels, volume signals, and upcoming events.
Risk Management
Position sizing, stop-loss levels, and risk-reward assessment.
Community
Discussion
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Sentiment
Community sentiment and discussion activity for ACB.
Make a Prediction
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Current price: $4.28
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for ACB.
Price Targets
Median: $8.00 (+38.3% from current price)
Insider Flow (30d)
No insider trades in the last 30 days.
MoonshotScore
Score Factors
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Revenue Growth 6/100
Revenue increased 27.0% YoY, reflecting moderate but steady business growth.
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Gross Margin 10/100
Gross margin of 62.7% shows excellent pricing power and a strong competitive moat.
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Operating Leverage 6/100
Revenue growth is driving operating leverage, meaning profits can grow faster than costs.
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Cash Runway 8/100
Strong cash reserves of $184M provide a solid financial cushion for growth investments and market downturns.
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R&D Intensity 2/100
R&D at only 1.1% of revenue suggests limited innovation investment, which may impact long-term competitiveness.
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Insider Activity 6/100
No significant insider buying or selling recently, which is neutral for the stock outlook.
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Short Interest 10/100
Daily turnover of 2.07% indicates healthy liquidity with smooth entry/exit for investors.
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Price Momentum 0/100
No bullish technical signals detected. The stock lacks upward price momentum currently.
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News Sentiment 5/100
No sentiment data available
What does this score mean?
The MoonshotScore rates ACB's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Latest News
'Federal Agency Finalized Rule For CBD Medicare Coverage Pilot Program Weeks Ago, Key Hemp Stakeholder Says'- Marijuana Moment
'GOP Congressman Isn't Sure Marijuana Rescheduling Is A DOJ 'Priority,' But Remains Optimistic About Progress Under Trump' - Marijuana Moment
Weekly Roundup on the Cannabis Sector & Psychedelic Sector
Earnings Scheduled For February 4, 2026
Frequently Asked Questions
What does Aurora Cannabis Inc. do?
Aurora Cannabis Inc. is a global cannabis company that produces, distributes, and sells cannabis and cannabis derivative products. The company operates across the entire cannabis value chain, from cultivation and production to wholesale and retail distribution. Aurora offers a diverse range of cannabis products, including dried cannabis, cannabis oils, capsules, and topical products, catering to both medical and recreational consumers. The company's brand portfolio includes well-known names such as Aurora, San Rafael '71, and MedReleaf. Aurora also provides patient counseling services and cannabis analytical product testing services, solidifying its position as a comprehensive cannabis solutions provider.
Is ACB stock a good buy?
ACB stock presents a mixed investment picture. The company's established presence in the growing cannabis market and its strategic focus on high-margin products are positive factors. However, Aurora has a history of net losses and high operating expenses, which are concerns. The company's current P/E ratio of 6.64 suggests that the stock may be undervalued, but investors should carefully consider the risks and uncertainties associated with the cannabis industry. The increasing acceptance and legalization of cannabis globally could drive demand for Aurora's products, but competition is intense. Investors should weigh the potential rewards against the risks before investing in ACB stock.
What are the main risks for ACB?
Aurora Cannabis Inc. faces several key risks. Regulatory changes in the cannabis industry could negatively impact the company's operations and market access. Intense competition from other cannabis companies could erode market share and profitability. Price volatility in the cannabis market could impact revenue and earnings. Negative perceptions of cannabis could limit market growth. The company's history of net losses and high operating expenses are also concerns. Aurora's dependence on regulatory approvals and its need to raise capital through equity financing are additional risks. Investors should carefully consider these risks before investing in ACB stock.
Is ACB a good stock to buy?
Whether ACB is a good investment depends on your financial goals, risk tolerance, and investment horizon. Review the Investment Thesis, SWOT analysis, and Risk sections on this page. Always do your own research and consult a financial advisor before investing.
What is the ACB MoonshotScore?
MoonshotScore is our proprietary AI-powered rating system that evaluates stocks based on growth potential, financial health, market momentum, and risk factors. It helps investors quickly identify high-potential opportunities. Check the MoonshotScore badge on this page for the current rating.
How often is ACB data updated?
Stock prices are updated in real-time during market hours (9:30 AM - 4:00 PM ET). Company fundamentals, analyst ratings, and AI insights are refreshed daily. News is updated continuously throughout the day.
What are the growth catalysts for ACB?
Growth catalysts vary by company and may include new product launches, market expansion, earnings surprises, partnerships, or industry tailwinds. Check the Catalysts section on this page for specific drivers relevant to Aurora Cannabis Inc..
Who are ACB's main competitors?
Aurora Cannabis Inc.'s competitors depend on its industry and market segments. Check the Competitors section on this page for a list of direct competitors and how ACB compares.
What do analysts say about ACB?
Analyst ratings and price targets for ACB are aggregated from multiple sources. Check the Analyst Consensus tab for buy/hold/sell ratings and the current consensus price target.
What is ACB's market cap?
Market capitalization reflects the total market value of ACB's outstanding shares. Check the Key Statistics section at the top of this page for the current market cap and other key financial metrics.
How has ACB stock performed recently?
Check the Chart & Info tab for ACB's recent price action, including daily, weekly, and monthly performance charts with technical indicators.
What are the risks of investing in ACB?
Every stock carries risk. Check the Risks and Weaknesses sections on this page for ACB-specific risk factors. Consider macroeconomic conditions, industry trends, and company-specific challenges.
Are insiders buying or selling ACB?
Insider activity can signal management confidence. Check the Insider Flow tab for recent insider buys, sells, and exercise transactions for ACB.
Is ACB a good stock for beginners?
Aurora Cannabis Inc. (ACB) can be suitable for beginner investors depending on several factors. Look at the MoonshotScore on this page for an overall AI-powered assessment of growth potential and risk. Beginners should also check the company's market cap (larger companies tend to be less volatile), gross margin (higher margins mean stronger business fundamentals), and cash position (healthy cash reduces bankruptcy risk). Always start with a small position size and never invest money you cannot afford to lose.
How risky is ACB for first-time investors?
Every stock carries risk, including Aurora Cannabis Inc. (ACB). First-time investors should review the Risk Factors section on this page for company-specific risks. Key risk indicators include price volatility (check the chart for daily swings), insider selling activity (see Insider Flow tab), and cash runway (see MoonshotScore breakdown). A diversified portfolio with an index fund like the S&P 500 as a core holding is generally recommended before adding individual stocks like ACB.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Data provided for informational purposes only.
- Information is based on available data and may be subject to change.
- The cannabis industry is rapidly evolving, and future performance is uncertain.