Auxly Cannabis Group (XLY) AI Stock Analysis

• Market Cap: $111.61M
• Dividend Yield: N/A
• Average Volume (3M): 573.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.49
• Revenue Growth: 21.02%
• EPS Growth: 59.82%
• Country: CA
• Employees: 388
• Sector: Healthcare
• Sector Strength: 69
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.02
• Shares Outstanding: 1,313,048,700
• 10 Day Avg. Volume: 220,358
• 30 Day Avg. Volume: 573,562
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.87
• Price to Cash Flow (P/CF): 2.00
• P/FCF Ratio: 1.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Auxly Cannabis Group shows promising financial improvements, especially in revenue growth and cash flow management. Despite challenges in profitability, the stock benefits from positive technical indicators and a strong corporate event showcasing record sales and debt reduction. Valuation remains a concern due to negative profitability metrics, but the company's strategic positioning and market leadership provide a solid foundation for potential future gains.

Auxly Cannabis Group Business Overview & Revenue Model

Company Description

Auxly Cannabis Group Inc. is a leading consumer packaged goods company in the cannabis products market. It operates across various sectors of the cannabis industry, including cultivation, processing, and distribution. Auxly focuses on developing, manufacturing, and distributing branded cannabis products for wellness and recreational consumers in Canada. The company's core products include a wide range of cannabis-derived goods such as dried flower, oils, capsules, and edibles.

How the Company Makes Money

Auxly Cannabis Group generates revenue primarily through the sale of its branded cannabis products. The company's revenue model is centered around producing and distributing a diverse portfolio of cannabis products to licensed retailers and directly to consumers in jurisdictions where cannabis is legal. Key revenue streams include sales from dried cannabis flower, cannabis oil, and derivative products like edibles and beverages. Auxly further enhances its earnings through strategic partnerships and supply agreements with other cannabis producers and retailers, as well as its proprietary product development initiatives. These partnerships allow Auxly to expand its market reach and distribution capabilities, contributing significantly to its revenue.

Auxly Cannabis Group Financial Statement Overview

Summary

Auxly Cannabis Group has shown revenue growth and improvements in cash flow management but struggles with profitability, as indicated by negative net income and EBIT margins. The balance sheet shows manageable leverage, yet the negative return on equity suggests inefficiencies in generating shareholder returns.

Income Statement

The company has shown moderate revenue growth over the years, with a recent TTM revenue growth rate of 13.38%. However, profitability remains a concern as the company has consistently reported negative net income and EBIT margins. The gross profit margin for the TTM is 23.73%, indicating some ability to cover production costs, but significant negative EBIT (-9.16%) and EBITDA margins (-27.59%) reflect ongoing operational challenges.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.64, indicating some reliance on debt. The company has a positive equity ratio of 42.18%, suggesting a reasonable level of equity financing. However, the return on equity is negative due to persistent net losses, signaling inefficiencies in generating shareholder returns.

Cash Flow

The cash flow analysis shows an improvement in operating cash flows, with a significant increase in free cash flow over the past year. The operating cash flow to net income ratio is positive at -0.29, and free cash flow to net income ratio at -0.25, reflecting improved cash management despite ongoing losses. Free cash flow growth has been substantial compared to previous years.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
114.61M	101.08M	94.47M	83.83M	50.80M	8.35M
	Gross Profit
27.20M	21.28M	17.92M	19.29M	11.14M	-3.71M
	EBIT
-10.50M	-19.00M	-46.79M	-42.01M	-54.03M	-61.05M
	EBITDA
-31.61M	-10.82M	-93.40M	-13.64M	-57.18M	-96.82M
	Net Income Common Stockholders
-74.79M	-44.51M	-130.29M	-45.91M	-87.43M	-108.62M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
215.06M	15.75M	14.78M	14.89M	21.50M	44.44M
	Total Assets
460.82M	261.90M	331.82M	450.42M	378.96M	411.59M
	Total Debt
94.15M	159.04M	193.59M	190.10M	124.68M	99.72M
	Net Debt
-117.56M	143.44M	178.96M	175.35M	103.47M	55.59M
	Total Liabilities
139.67M	210.86M	246.13M	242.31M	187.43M	149.69M
	Stockholders Equity
318.13M	51.05M	90.41M	212.52M	195.94M	264.25M
Cash Flow		Free Cash Flow
18.78M	6.61M	-11.67M	-50.01M	-53.86M	-116.92M
	Operating Cash Flow
21.38M	8.21M	-2.48M	-49.63M	-33.13M	-79.12M
	Investing Cash Flow
-346.00K	-1.56M	1.18M	17.33M	-14.53M	-134.82M
	Financing Cash Flow
-10.59M	-5.68M	1.18M	26.40M	24.74M	46.36M

Auxly Cannabis Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:XLY, the sentiment is Positive. The current price of 0.08 is above the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.08, and above the 200-day MA of 0.05, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.69 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:XLY.

Auxly Cannabis Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XLY	64 Neutral	$111.61M	―	-20.63%	―	21.02%	59.82%
OGI	53 Neutral	$202.01M	―	-18.27%	―	7.33%	84.41%
Sector *	51 Neutral	$5.32B	3.39	-40.26%	2.89%	17.93%	2.48%
ACB	50 Neutral	$325.46M	25.51	4.78%	―	16.39%	-98.10%
WEED	47 Neutral	$353.13M	―	-84.50%	―	-16.27%	―

Auxly Cannabis Group Corporate Events

Auxly Cannabis Group Achieves Record Sales and Profitability in 2024

Auxly Cannabis Group Inc. reported record sales and profitability for the fourth quarter and full year of 2024, with significant increases in net revenue and gross margins. The company reduced its total debt by 56% and achieved a notable market position with its Back Forty brand emerging as the top cannabis brand in Canada. These achievements underscore Auxly’s strong industry positioning and commitment to sustainable growth and value creation for stakeholders.