Aurora Cannabis Inc. (TSE:ACB) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Aurora Cannabis Inc., together with its subsidiaries, produces, distributes, and sells cannabis and cannabis-derivative products in Canada and internationally. The CA$314m market-cap company posted a loss in its most recent financial year of CA$1.7b and a latest trailing-twelve-month loss of CA$818m shrinking the gap between loss and breakeven. The most pressing concern for investors is Aurora Cannabis' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Aurora Cannabis

Aurora Cannabis is bordering on breakeven, according to the 10 Canadian Pharmaceuticals analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of CA$3.1m in 2026. So, the company is predicted to breakeven approximately 3 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 130% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict. earnings-per-share-growth

Given this is a high-level overview, we won’t go into details of Aurora Cannabis' upcoming projects, but, take into account that generally a pharma company has lumpy cash flows which are contingent on the drug and stage of product development the business is in. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 34% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.



Next Steps:

There are too many aspects of Aurora Cannabis to cover in one brief article, but the key fundamentals for the company can all be found in one place – Aurora Cannabis' company page on Simply Wall St. We've also put together a list of pertinent factors you should further research:

Historical Track Record: What has Aurora Cannabis' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Aurora Cannabis' board and the CEO’s background. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.