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Tilray (TLRY)
:TLRY
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Tilray
(NASDAQ:TLRY)
46Neutral
Positive Factors
Financial Performance
Adj. EBITDA of $9M came in higher vs. our $6.5M estimate, in part from better-than-expected Canadian cannabis gross margins of 40.5%.
Growth Initiatives
The company recently completed capital investments in a facility that allows better use of byproducts for vapes and infused pre-rolls, expected to improve Canadian adult-use trends.
International Expansion
Tilray's international businesses are positioned for imminent growth, with expectations for the international cannabis topline to accelerate.
Negative Factors
Market Challenges
The path to federal legalization of cannabis in the U.S. remains unclear, impacting future prospects.
Price Competition
Canadian adult-use will be challenging due to price competition.
Sales Outlook
Management lowered their FY25 sales outlook by $50M to $850M-$900M owing to SKU rationalization efforts.
Tilray (TLRY) vs. S&P 500 (SPY)
Market Cap
$475.87M
Dividend YieldN/A
Average Volume (3M)31.49M
Price to Earnings (P/E)―
Beta (1Y)1.15
Revenue Growth11.22%
EPS Growth-108.58%
CountryUS
Employees2,650
SectorHealthcare
Sector Strength73
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-1.05
Shares Outstanding1,006,495,900
10 Day Avg. Volume26,344,354
30 Day Avg. Volume31,488,171
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.73
Price to Cash Flow (P/CF)-3.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$0.93Price Target Upside93.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Tilray Business Overview & Revenue Model
Company DescriptionTilray Brands, Inc. engages in the research, cultivation, production, marketing, and distribution of medical cannabis products in Canada, the United States, Europe, Australia, New Zealand, Latin America, and internationally. The company operates through four segments: Cannabis Business, Distribution Business, Beverage Alcohol Business, and Wellness Business. It offers medical and adult-use cannabis products, including GMP-certified flowers, oils, vapes, edibles, and topicals; purchases and resells pharmaceutical and wellness products; and produces, markets, sells, and distributes beverage alcohol products, and hemp-based food and other wellness products. The company offers its products under the Tilray, Aphria, Broken Coast, Symbios, B!NGO, The Batch, P'tite Pof, Dubon, Good Supply, Solei, Chowie Wowie, Canaca, RIFF, SweetWater, Breckenridge Distillery, Alpine Beer Company, and Green Flash brands. It sells its products to retailers, wholesalers, patients, physicians, hospitals, pharmacies, researchers, and governments, as well as direct to consumers. The company was formerly known as Tilray, Inc. Tilray Brands, Inc. is headquartered in Leamington, Canada.
How the Company Makes MoneyTilray generates revenue primarily through the sale of cannabis and cannabis-derived products to medical patients and adult-use consumers. Key revenue streams include medical cannabis sales, recreational cannabis sales, and the sale of hemp-based foods and alcoholic beverages. The company leverages its extensive distribution network and strategic partnerships to penetrate various markets, such as through its acquisition of Manitoba Harvest, a leading hemp foods producer, and SweetWater Brewing Company, an American craft brewery. These acquisitions have expanded Tilray's portfolio and provided new revenue opportunities beyond traditional cannabis products. Additionally, the company's investments in research and development, as well as its ability to secure supply agreements with governments and private entities, contribute significantly to its potential earnings growth.
Tilray Financial Statement Overview
Summary
Tilray faces significant financial challenges with a negative net profit margin, indicating high losses. Despite modest revenue growth, profitability issues persist with negative EBIT and EBITDA margins. The balance sheet shows low leverage but declining equity and negative returns. Cash flow issues further highlight the need for operational improvements.Income Statement
Tilray's income statement shows significant challenges, with a negative net profit margin at -114.9% TTM, indicating high losses relative to revenue. Despite a slight revenue growth of 4.79% from the previous year, the company struggles with profitability as evidenced by negative EBIT and EBITDA margins. The gross profit margin is at 28.57% TTM, indicating some efficiency in production but insufficient to cover operating costs.45
Neutral
Balance Sheet
The balance sheet reveals a debt-to-equity ratio of 0.08, suggesting relatively low leverage, which is a positive sign. However, this is offset by a concerning drop in stockholders' equity over time. The equity ratio is 80.22% TTM, highlighting a strong equity position relative to assets. Nevertheless, the negative return on equity of -34.78% TTM reflects ongoing profitability issues.50
Neutral
Cash Flow
Cash flow analysis shows negative free cash flow growth, indicating cash outflows continue to exceed inflows. The operating cash flow to net income ratio is -0.05 TTM, suggesting operational inefficiencies. The company also exhibits a negative free cash flow to net income ratio, pointing to difficulties in generating cash relative to reported losses.40
Negative
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 826.66M | 788.94M | 627.12M | 628.37M | 513.09M | 391.00M | Gross Profit |
| 236.24M | 223.35M | 146.96M | 116.82M | 123.18M | 137.68M | EBIT |
| -725.55M | -174.75M | -1.37B | 153.29M | -4.95M | 51.48M | EBITDA |
| -648.68M | -72.84M | -889.52M | -246.40M | -218.36M | -18.40M | Net Income Common Stockholders |
| -945.62M | -244.98M | -1.44B | -434.13M | -336.01M | ― |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 248.41M | 260.52M | 448.53M | 415.91M | 488.47M | 358.47M | Total Assets |
| 3.40B | 4.22B | 4.31B | 5.45B | 6.03B | 1.80B | Total Debt |
| 229.10M | 387.32M | 590.13M | 623.81M | 938.66M | 300.32M | Net Debt |
| 29.14M | 158.98M | 383.50M | 207.90M | 450.19M | -58.15M | Total Liabilities |
| 701.04M | 778.49M | 977.32M | 1.01B | 1.56B | 475.89M | Stockholders Equity |
| 2.73B | 3.44B | 3.32B | 4.40B | 4.46B | 1.31B |
| Cash Flow | Free Cash Flow | ||||
| -66.82M | -60.15M | -12.89M | -211.33M | -83.59M | ― | Operating Cash Flow |
| -50.67M | -30.91M | 7.91M | -177.26M | -44.72M | ― | Investing Cash Flow |
| -16.47M | 128.35M | -285.11M | -21.53M | 46.10M | ― | Financing Cash Flow |
| 124.77M | -75.19M | 70.16M | 128.20M | 124.31M | 125.40M |
Tilray Technical Analysis
Negative
0.48
Price Trends
0.72
Negative
0.99
Negative
1.36
Negative
Market Momentum
-0.07
Positive
32.40
Neutral
20.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TLRY, the sentiment is Negative. The current price of 0.48 is below the 20-day moving average (MA) of 0.59, below the 50-day MA of 0.72, and below the 200-day MA of 1.36, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 32.40 is Neutral, neither overbought nor oversold. The STOCH value of 20.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TLRY.
Tilray Risk Analysis
Tilray disclosed 59 risk factors in its most recent earnings report. Tilray reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Tilray Peers Comparison
Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
59 Neutral | $342.21M | ― | -8.00% | ― | -2.89% | 47.06% | |
50 Neutral | $5.51B | 2.95 | -43.70% | 2.78% | 16.94% | 3.59% | |
46 Neutral | $475.87M | ― | -31.06% | ― | 11.22% | -108.58% | |
45 Neutral | $1.50M | ― | -60.98% | ― | -18.02% | 78.28% | |
42 Neutral | $9.00M | ― | -291.50% | ― | -22.58% | 82.94% | |
34 Underperform | $4.61M | ― | -61.58% | ― | -35.41% | 72.84% |
* Healthcare Sector Average
Performance Comparison
TLRY
Tilray
0.48
-1.24
-72.09%
CPHI
China Pharma Holdings
1.56
-1.80
-53.57%
YCBD
cbdMD
0.22
-0.70
-76.09%
SNDL
SNDL
1.35
-0.48
-26.23%
FLGC
Flora Growth
0.48
-1.31
-73.18%
Tilray Earnings Call Summary
Earnings Call Date: Apr 8, 2025 | % Change Since: -17.24% | Next Earnings Date: Jul 23, 2025
Earnings Call Sentiment Neutral
The earnings call presented both positive and negative aspects. While there were notable improvements in cannabis gross margins and international growth, significant challenges remain, particularly with net revenue decline and a substantial net loss due to non-cash impairment. The beverage segment showed mixed results with some areas of growth, but overall sales volumes faced challenges.Highlights
Record Cannabis Gross Margin
Tilray achieved its highest cannabis gross margin in almost two years, increasing by eight hundred basis points year over year to reach 41%.
Significant International Growth
Quarter over quarter and year over year revenue growth was seen in several international markets including Germany, Italy, Luxembourg, and Portugal. Medical cannabis sales in Germany grew significantly with flower sales increasing by 79% post-legalization.
Project 420 Cost Savings
Tilray increased its Project 420 cost savings target to $33 million, achieving $20.6 million on an annualized basis.
Beverage Segment Performance
Tilray Beverages generated $55.9 million in net revenue with an increased gross margin to 36% compared to 34% in the prior year quarter.
Strong Balance Sheet
Tilray reduced its net debt position to approximately $50 million, with cash and marketable securities totaling $248 million.
Lowlights
Net Revenue Decline
Net revenue for the quarter was $185.8 million, down from $188.3 million in the previous year quarter. Adjusted net revenue was impacted by strategic initiatives reducing it by $13 million.
Significant Net Loss
Reported a net loss of $793.5 million for the quarter, compared to a net loss of $105 million in the prior year quarter, primarily due to a $700 million non-cash impairment.
Canadian Cannabis Revenue Impact
Strategic decisions to focus on margin and not revenue temporarily in the vape and infused pre-roll space resulted in a decrease in year-over-year revenue of approximately $4 million.
Challenges in the Beverage Segment
Tracking data indicates that sales and volumes for the craft beer brands are down about mid-teens in the third quarter.
Company Guidance
In its fiscal 2025 Q3 earnings call, Tilray Brands provided guidance highlighting a focus on profitability and operational efficiency across its diversified product lines. The company reported a net revenue of $186 million, or $193 million on a constant currency basis, with strategic decisions impacting revenue by about $13 million. Adjusted net revenue, accounting for these impacts, increased by 10% to $206 million. Tilray achieved a 5% increase in gross profit, and gross margins expanded by 200 basis points to 28%. The cannabis gross margin reached 41%, the highest in nearly two years, driven by international sales and strategic focus on profitable segments. Tilray's balance sheet remains robust, with cash and marketable securities totaling $248 million and net debt below one times EBITDA. The company revised its fiscal 2025 net revenue guidance to $850-$900 million, with adjustments for strategic initiatives and SKU rationalization.Tilray Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Tilray Refinances Loan to Strengthen Financial Stability
Positive
Feb 26, 2025
On February 21, 2025, Aphria Diamond Inc., a subsidiary of Tilray Brands, Inc., refinanced its existing term loan by entering into a new Credit Agreement with the Canadian Imperial Bank of Commerce. This agreement involves term loans totaling CAD $53 million, with a significant portion used to repay a prior credit agreement. The new loans mature in 2028, with quarterly repayments required, and are secured by a first lien on the borrower’s assets. This refinancing effort is part of Tilray’s strategy to manage its financial obligations and improve its capital structure, potentially impacting its financial stability and market operations.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.