Canopy Growth Corporation Common Shares (CGC)

FairStock Score: 55/100 — STEADY

Key Financials

AI Analysis

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

I look for businesses with durable competitive advantages, consistent earnings, and a margin of safety. Canopy Growth does not yet meet those tests. It sells cannabis and vaporizers, a competitive and heavily regulated area. Revenue is inching up: in fiscal Q1 2027, the quarter ended 2026-06-30, revenue was $81.2M versus $72.1M in fiscal Q1 2026, the quarter ended 2025-06-30. In FY2026, the year ended 2026-03-31, revenue was $284.6M, up from $269.0M in FY2025, the year ended 2025-03-31. But profits remain deeply negative. In FY2026, the year ended 2026-03-31, net loss was $262.9M; in FY2025, the year ended 2025-03-31, net loss was $508.9M; and in FY2024, the year ended 2024-03-31, net loss was $712.2M. The latest quarter, fiscal Q1 2027, the quarter ended 2026-06-30, still lost $14.6M, though that is better than the $44.9M loss in fiscal Q1 2026, the quarter ended 2025-06-30. Trailing free cash flow is -$83.7M, a -25.9% FCF yield, so the company is consuming capital. FairStock calculations at the $0.76 close on 2026-10-13 show P/B of 0.66, ROE of -39.51%, ROCE of -3.92%, a Piotroski F-Score of 3/9, and an Altman Z-Score of -13.29. The low price-to-book may attract asset-focused investors, but book value can be written down by continued losses. With a FairStock P/E of -1.59 and diluted EPS of -$0.88 in FY2026, the year ended 2026-03-31, there is no earnings-based margin of safety. Canopy has not earned a profit in the last four years, so it fits no Lynch category. This is a speculation on a turnaround, not a Graham-style bargain. I would need evidence of positive free cash flow and a durable path to profitability before calling it investment grade.

In plain English: Canopy Growth sells cannabis, vaporizers and related products, mainly in Canada and Germany. The business is still losing money and using cash, even though sales have grown a little. At $0.76 a share, the price looks low compared with its reported net assets, but that apparent cheapness is doubtful while losses continue.

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

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-06-30) · fiscal Q3 2026 10-K (period ended 2025-12-31) · fiscal Q2 2026 10-K (period ended 2025-09-30) · fiscal Q1 2026 10-Q (period ended 2025-06-30) · FY2026 10-K (period ended 2026-03-31) · FY2025 10-K (period ended 2025-03-31) · FY2024 10-K (period ended 2024-03-31)

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