ATB Capital maintained the Outperform rating on Auxly Cannibas(XLY:CA)

STA Research
by: STA Research

ATB Capital maintained the Outperform rating on Auxly Cannibas, with a $.40 target on the company’s stock price.

Based on the Auxly Cannabis Group Inc stock forecasts from 3 analysts, the average analyst target price for Auxly Cannabis Group Inc is CAD 0.58 over the next 12 months. Auxly Cannabis Group Inc’s average analyst rating is . 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 0.15. Auxly Cannabis Group Inc’s stock price has changed by -0.03% over the past week, +0.00% over the past month and -59.46% over the last year.

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:

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

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.

Low Earnings Growth

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

 

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