1-Star Price
PREMIUM
5-Star Price
PREMIUM
Economic Moat
PREMIUM
Capital Allocation
PREMIUM
After updating Cronos for our latest methodologies, we find minimal valuation impact from environmental, social, and governance risk and assign a Standard capital allocation rating. We maintain our $7 and CAD 9 per share fair value estimates and no-moat rating. Shares look slightly undervalued but in 3-star territory after considering Cronos’ very high uncertainty rating.
Cronos Group, headquartered in Toronto, Canada cultivates and sells medicinal and recreational cannabis through its medicinal brand, Peace Naturals, and its two recreational brands, Cove and Spinach. Although it primarily operates in Canada, Cronos exports medical cannabis to Poland and Germany. In addition, it has entered joint ventures in Israel, Colombia, and Australia to drive further international cultivation and distribution growth. In the U.S. the company directly sells hemp-derived CBD and has an option to acquire 10.5% of U.S. multistate operator PharmaCann.
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