Analysts rate Auxly Cannabis Group Inc(XLT:TSX) with a Strong Buy with a $0.33 target

by: Gillian Lawrence
Auxly Cannabis Group Inc

Analysts rate Auxly Cannabis Group Inc with a consensus Strong Buy and a 12-month average target price of $0.33 on the company’s stock.

 Based on the Auxly Cannabis Group Inc stock forecasts from 3 analysts, the average analyst target price for Auxly Cannabis Group Inc is CAD 0.33 over the next 12 months. Auxly Cannabis Group Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Auxly Cannabis Group Inc is Bearish, which is based on 2 positive signals and 5 negative signals. At the last closing, Auxly Cannabis Group Inc’s stock price was CAD 0.05Auxly Cannabis Group Inc’s stock price has changed by +11.11% over the past week, -37.50% over the past month and -82.14% over the last year.

About Auxly Cannabis Group Inc (XLY:CA:TSX)

Auxly Cannabis Group Inc. operates as a consumer-packaged goods company in the cannabis products market in Canada. The company focuses on developing, manufacturing, and distributing cannabis products for wellness and recreational consumers. It offers cannabis products under various forms, including vape catridges, dried flower, concentrates, chocolates, soft chews, oil drops, capsules, topicals, and hard candy under the brands KOLAB PROJECT, Dosecann, BACK FORTY, and Foray. The company was formerly known as Cannabis Wheaton Income Corp. and changed its name to Auxly Cannabis Group Inc. in June 2018. Auxly Cannabis Group Inc. was incorporated in 1987 and is based in Toronto, Canada.

What we like:

Underpriced compared to book value

The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

What we don’t like:

Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Negative cashflow

The company had negative total cash flow in the most recent four quarters.

Negative free cash flow

The company had negative total free cash flow in the most recent four quarters.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector.

Disclaimer

Stock Target Advisor is not a broker/dealer, investment advisor, or platform for making stock buying or selling decisions. Our goal is to democratize and simplify financial information through automated analysis, aggregation of stock information, and education to help investors with their research. No content on our site, blogs or newsletters constitutes – or should be understood as constituting – a recommendation to enter into any securities transactions or to engage in any of the investment strategies presented in our site content. We also cannot guarantee the accuracy of any information presented on our site and in our analysis.

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