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Curaleaf Holdings (OTC) (TSE:CURA)
:CURA
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Curaleaf Holdings
(OTC:CURA)
51Neutral
Positive Factors
Market Expansion
Expansion into new markets is anticipated to increase revenue streams.
Operational Efficiency
Operational efficiencies are expected to drive margins.
Sales Growth
Sales growth in 2Q24 was largely driven by wholesale revenue growth as the international segment continues to gain traction.
Negative Factors
Competition
The company is facing stiff competition in the cannabis industry.
Financial Performance
EBITDA margins fell short of expectations due to higher G&A spend and heavy promotions at the start of the quarter.
Regulatory Challenges
There are concerns about regulatory challenges in the cannabis market.
Curaleaf Holdings (CURA) vs. S&P 500 (SPY)
Market Cap
C$807.54M
Dividend YieldN/A
Average Volume (3M)460.86K
Price to Earnings (P/E)―
Beta (1Y)1.56
Revenue Growth0.67%
EPS Growth19.14%
CountryCA
Employees5,519
SectorHealthcare
Sector Strength70
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.42
Shares Outstanding660,736,630
10 Day Avg. Volume445,204
30 Day Avg. Volume460,856
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.49
Price to Cash Flow (P/CF)3.50
P/FCF Ratio3.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$5.06Price Target Upside373.15% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Curaleaf Holdings Business Overview & Revenue Model
Company DescriptionCuraleaf Holdings, Inc. is a leading multi-state cannabis operator in the United States. The company operates in the cannabis industry and focuses on the cultivation, production, distribution, and retail of cannabis and cannabis-related products. Curaleaf offers a diverse range of products including cannabis flower, pre-rolls, vaporizers, edibles, and topicals that cater to both medical and adult-use markets. With a strong presence across numerous states, Curaleaf aims to provide high-quality cannabis products to enhance the consumer experience.
How the Company Makes MoneyCuraleaf Holdings generates revenue primarily through the sale of cannabis products. The company's revenue streams include retail sales from its dispensaries, wholesale distribution to other cannabis businesses, and branded product sales. Curaleaf operates a vertically integrated model, controlling the entire supply chain from cultivation to retail, which allows them to manage costs and maintain product quality. Additionally, strategic acquisitions and partnerships with other cannabis companies enhance their market presence and contribute to financial growth. Curaleaf's earnings are further bolstered by its expansion into new markets and the development of innovative cannabis products, ensuring a diversified revenue base.
Curaleaf Holdings Financial Statement Overview
Summary
Curaleaf Holdings demonstrates stable revenue but struggles with profitability. The income statement shows persistent net losses, while the balance sheet indicates rising leverage. Cash flow management is strong, with improving operating cash flow, but challenges remain in achieving profitability and reducing debt.Income Statement
Curaleaf Holdings shows a mixed performance in its income statement. Although the revenue has been relatively stable over the years, there is a concerning trend of negative net income. The company has managed to maintain a consistent gross profit margin, but the net profit margin remains negative, indicating challenges in achieving profitability. The EBIT and EBITDA margins reflect operational efficiency struggles, with EBIT showing significant volatility.60
Neutral
Balance Sheet
The balance sheet of Curaleaf indicates moderate financial stability with a debt-to-equity ratio that has increased over time, suggesting rising leverage. The equity ratio has decreased, reflecting a reduction in financial flexibility and increased reliance on debt. The return on equity remains negative, highlighting ongoing profitability challenges.55
Neutral
Cash Flow
Cash flow analysis reveals some positive trends, such as improving operating cash flow, which indicates better cash generation from core operations. Despite this, free cash flow has shown volatility, with significant capital expenditures impacting overall cash flow health. The ratios of operating cash flow and free cash flow to net income are strong, suggesting effective cash management despite net income losses.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.34B | 1.35B | 1.34B | 1.21B | 626.64M | Gross Profit |
| 639.25M | 614.45M | 579.03M | 687.59M | 390.51M | EBIT |
| 20.20M | 42.88M | -10.25M | 175.63M | 63.68M | EBITDA |
| 233.14M | 238.76M | 220.97M | 278.98M | 128.59M | Net Income Common Stockholders |
| -215.42M | -281.20M | -376.93M | -109.13M | -61.33M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 93.03M | 91.82M | 163.18M | 299.33M | 73.54M | Total Assets |
| 2.95B | 3.10B | 3.40B | 3.26B | 2.39B | Total Debt |
| 853.82M | 883.55M | 931.91M | 753.65M | 577.71M | Net Debt |
| 760.80M | 800.33M | 768.73M | 454.32M | 504.16M | Total Liabilities |
| 1.96B | 1.93B | 2.00B | 1.45B | 1.01B | Stockholders Equity |
| 861.21M | 1.05B | 1.28B | 1.76B | 1.38B |
| Cash Flow | Free Cash Flow | |||
| 64.42M | 5.05M | -91.96M | -205.92M | -113.92M | Operating Cash Flow |
| 162.57M | 75.26M | 46.40M | -33.96M | 12.36M | Investing Cash Flow |
| -93.83M | -78.69M | -228.62M | -163.97M | -197.11M | Financing Cash Flow |
| -54.24M | -67.02M | 50.54M | 424.80M | 224.08M |
Curaleaf Holdings Technical Analysis
Negative
1.07
Price Trends
1.63
Negative
1.97
Negative
3.22
Negative
Market Momentum
-0.13
Negative
38.64
Neutral
65.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CURA, the sentiment is Negative. The current price of 1.07 is below the 20-day moving average (MA) of 1.26, below the 50-day MA of 1.63, and below the 200-day MA of 3.22, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 38.64 is Neutral, neither overbought nor oversold. The STOCH value of 65.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CURA.
Curaleaf Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $921.90M | 15.63 | 3.80% | ― | 35.87% | ― | |
52 Neutral | C$166.66M | ― | -18.27% | ― | 7.33% | 84.41% | |
51 Neutral | C$807.54M | ― | -23.33% | ― | 0.67% | 19.14% | |
48 Neutral | $6.26B | 1.15 | -46.15% | 2.69% | 19.24% | 1.69% | |
47 Neutral | $328.76M | 24.56 | 4.78% | ― | 16.39% | -98.10% | |
42 Neutral | $228.17M | ― | -84.50% | ― | -16.27% | ― |
* Healthcare Sector Average
Performance Comparison
TSE:CURA
Curaleaf Holdings
1.12
-5.52
-83.13%
TSE:WEED
Canopy Growth
1.30
-9.40
-87.85%
TSE:CRON
Cronos Group
2.43
-1.02
-29.57%
TSE:ACB
Aurora Cannabis
5.93
-3.15
-34.69%
TSE:OGI
OrganiGram Holdings
1.32
-1.36
-50.75%
Curaleaf Holdings Earnings Call Summary
Earnings Call Date: Mar 3, 2025 | % Change Since: -38.86% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
Curaleaf's earnings call reflected a mixed performance in 2024, with stable overall revenue and significant international growth offsetting domestic retail declines and net losses. The company is optimistic about new product launches and market expansion, but faces ongoing challenges with price compression and debt management.Highlights
Stable Revenue Despite Industry Challenges
Curaleaf reported a total revenue of $1.34 billion for 2024, flat compared to last year, despite a 14% average price compression across the industry.
International Growth Success
International revenue grew by 73%, surpassing the $100 million milestone, largely driven by strong performance in Germany and the UK.
Improved Margins
Adjusted gross margin increased by 160 basis points to 48% for the year, reflecting enhanced efficiency and productivity.
Ohio and New York Market Expansion
Ohio experienced 96% growth in the second half of 2024, while New York saw a 50% increase in state growth, driven by strong triple-digit growth in wholesale.
Launch of Innovative Products
Curaleaf introduced new products like the Anthem pre-roll brand and ACE oil processing technology, which are expected to drive future growth.
Lowlights
Retail Revenue Decline
Retail revenue decreased by 6% to $1 billion for the year, with a notable 11% year-over-year decline in the fourth quarter.
Net Loss from Continuing Operations
The company reported a net loss from continuing operations of $216 million for 2024, with adjusted net loss at $117 million.
Price Compression Challenges
Price compression in markets like Pennsylvania, Illinois, and New Jersey had a significant negative impact on revenue.
Hemp Business Impact on Margins
The hemp business negatively impacted EBITDA margins by 50 basis points.
Debt and Refinancing Concerns
Outstanding debt was $569 million, and the company faces challenges with tax debt in relation to refinancing.
Company Guidance
During the Curaleaf Holdings Fourth Quarter and Fiscal Year End 2024 Earnings Call, the company reported a stable revenue of $1.34 billion for 2024, maintaining the same level as the previous year despite a 14% industry-wide price compression. The adjusted gross margin increased by 160 basis points to 48%, while adjusted EBITDA remained flat at $301 million. In the fourth quarter, Curaleaf generated $331 million in revenue, with an adjusted gross margin of 48% and adjusted EBITDA of $76 million, resulting in a 23% EBITDA margin. The company ended the year with $107 million in cash and generated $163 million in operating cash flow and $70 million in free cash flow. Curaleaf plans to focus on organic growth, margin enhancement, and cash flow generation in 2025 through its "Return to Our Roots" initiative. The international segment showed impressive growth, with a 73% revenue increase, surpassing $100 million, while wholesale revenue increased by 25% to $304 million. The company's capital expenditures for 2024 totaled $93 million, with a reduction planned for 2025. Additionally, Curaleaf aims to reduce its debt by approximately $60 million in the coming year.Curaleaf Holdings Corporate Events
Business Operations and StrategyFinancial Disclosures
Curaleaf Holdings to Announce Q1 2025 Financial Results
Neutral
Apr 7, 2025
Curaleaf Holdings announced it will release its first quarter 2025 financial and operational results on May 8, 2025, after market close. The company will host a conference call and webcast to discuss these results, providing stakeholders with insights into its performance and strategic direction. This announcement is significant as it offers an opportunity for investors and analysts to evaluate Curaleaf’s market positioning and operational effectiveness in the evolving cannabis industry.
Spark’s Take on TSE:CURA Stock
According to Spark, TipRanks’ AI Analyst, TSE:CURA is a Neutral.
Curaleaf Holdings exhibits stable revenue and strong cash flow management amidst profitability challenges and rising debt. Technical indicators suggest bearish momentum, and valuation metrics reflect ongoing losses. Although the company shows potential for growth through international expansion and product innovation, price compression and debt remain significant risks.
To see Spark’s full report on TSE:CURA stock, click here.
Business Operations and StrategyFinancial Disclosures
Curaleaf Holdings Reports 2024 Financial Results and Strategic Initiatives
Neutral
Mar 3, 2025
Curaleaf Holdings reported its fourth quarter and full year 2024 financial results, highlighting a slight sequential increase in fourth quarter revenue to $331 million and a gross margin of 48%. Despite a net loss of $71.8 million for the quarter, the company generated significant operating and free cash flow, and aims to expand its leadership position through its ‘Return to our ROOTS’ initiative, focusing on organic growth and innovation.
Financial Disclosures
Curaleaf to Announce 2024 Financial Results on March 3
Neutral
Jan 28, 2025
Curaleaf Holdings announced it will release its financial and operational results for the fourth quarter and full year 2024 on March 3, 2025. The announcement includes plans for a conference call and webcast to discuss the company’s performance, offering stakeholders insights into Curaleaf’s market positioning and operational achievements over the past year.
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.