Is Aurora Stock a Buy? (ACB Stock Analysis 2019) 📈
Автор: Positive Investing
Загружено: 2019-03-13
Просмотров: 3199
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Is Aurora Stock a Buy in 2019? In this Aurora Stock Analysis video, we go over ACB Stock and decide if Aurora Cannabi is a Buy or Sell. Aurora is a popular stock with investors and after their most recent earnings report, investors are wondering if Aurora Stock is a good investment.
Analysts for Aurora (https://goo.gl/PHRMjF) predict some upside in the stock. Check out the link and sign up for TipRanks absolutely free.
Aurora is one of the most popular stocks in the Cannabis space, and it's extremely popular amount millennial and younger investors. They are a leader in global Marijuana by cultivation, scale, and revenue. They are also the sector leader in technology across operations and production development, while being active in 22 countries across 5 continents. They have a global reach which is what makes them so enticing. They currently have over 71,000 medical patients served and that number should keep growing exponentially in 2019, into 2020.
In terms of production capacity, they currently produce around 100,000 kg/year, and by mid 2019 they plan to produce 150,000 kg/year after the Aurora Sky Facility is opened fully. By mid 2020, their goal is to reach upwards of 500,000 kg/year - absolutely exponential growth. They currently face stiff competition from Canopy Growth Corp Stock (CGC Stock) and Aphria Stock (APHA Stock) but has recently passed both of them in quarterly revenue.
The charts have been flat compared to historic volatility in the stock - and it looks like it's looking for a big catalyst to break past that $5-$8 range it's currently stuck in for the last 2 quarters. It is above all moving averages which is a very healthy and bullish sign. Volume has also been high in 2019, which a lot of investors taking positions in Aurora Stock at current valuations. They currently have a PE of 35, and no forward PE, however I don't expect them to be profitable in the next year. Once Aurora Sky is fully functional, then we can see profits come in and have it pay for itself. Cash balance sits at just under $500M and debt around $200M, so they are safe for now with a Cash/Debt Ratio of 2.38.
Revenue has gone from 0 in 2015, to 55M in 2018, to projected over 100M in 2019 - exponential growth again! However Operating Income is suffering currently, but Net Income was profitable in 2018, even though capital spending increased as well.
Aurora did lay out a path to profitability for investors - with a near term, medium term, and long term view. The general idea here is that they plan to focus on production and efficiencies in that department in the short term, then in the medium term they want more R&D to increase margins, and for the long term they want to build their brand and variety of products offered.
With all things considered, Aurora looks like a very strong stock in the Marijuana space for 2019 - but is it a buy? Watch the video to find out.
#ACB #Aurora #AuroraCannabi #AuroraStock #ACBStock
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