Aurora Cannabis Inc. Common Shares (ACB)

FairStock Score: 44/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham investor, I look first for a durable business that earns good returns on capital and turns revenue into cash. Aurora fails that test today. In the latest reported quarter (fiscal Q2 2026), revenue was $67.6 million and net income was -$4.0 million, a -5.97% net margin. Trailing free cash flow is -$51.2 million, and the FairStock-calculated FCF yield is -25.1% against a $203.7 million market cap at the 2026-10-13 close. That is cash burn, not owner earnings. The balance sheet has one bright spot: debt-to-equity is only 0.04, so leverage is not the immediate threat. But returns on capital are negative: FairStock calculations show ROE -9.40% and ROCE -3.72%. A Piotroski F-Score of 3/9 and Altman Z-Score of -12.55 point to financial weakness; the FairStock Score is 44/100. The Lynch category is 'none' because only 0 years of filed results are available and three are needed, so there is no reliable long-term track record to judge. Valuation looks superficially cheap: at the 2026-10-13 close, FairStock calculations show P/B 0.72 and P/E -6.50. But a negative P/E is not a bargain multiple; it signals losses. With no dividend, beta 1.45, and negative trailing free cash flow, the Graham margin of safety is not evident. I would want to see positive free cash flow, stable revenue, and positive returns on capital before calling this a sound value. Until then, it is a speculative turnaround, not a proven compounding business.

In plain English: Aurora Cannabis makes and sells medical and consumer cannabis products in Canada and other countries. The business is currently unprofitable: it had a small loss in its latest quarter and used more cash than it generated, and sales have been shrinking. At the recent price, the shares look inexpensive compared with the company's accounting net assets, but weak profits and cash use make that cheapness uncertain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer