Cronos Group Inc. (CRON)
Valuation Overview•Is Cronos Group Inc. Overvalued or Undervalued?
Commands a premium valuation multiple over its peers, likely pricing in superior execution.
Moderate quality score of 54/100, reflecting stable operating margins and manageable leverage.
Analysts remain cautious, with consensus price targets indicating limited room for upside expansion.
Verdict: Average quality business weighed down by significant profitability concerns.
Wall Street is cautious, forecasting potential downside. However, capital return yields remain modest, driven predominantly by aggressive share repurchases.
Returns capital exclusively via buybacks — no active dividend
CRON struggles with subpar profitability and pressured margins. This is backed by a fortress balance sheet, holding significant net cash ($790M) and minimal debt risk.
The company is driving exceptional top-line expansion (30.6% 3Y CAGR) paired with stable bottom-line earnings. However, profitability remains a major concern with severely compressed operating margins (-0.1%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $44.6M | +64.4% | +30.6% | +32.9% | +49.8% | |
| EBITDA | $2.2M | — | +79.8% | — | — | |
| Net Income | $13.6M | -123.0% | +61.7% | — | — | |
| EPS (Diluted) | $0.04 | -122.3% | — | — | — | |
| Free Cash Flow | $8.9M | -97.3% | — | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 32.8% | 22.5% | 11.6% | 37.9% |
| Operating Margin | -0.1% | -54.6% | -148.9% | -251.4% |
| Net Margin | -1.0% | -18.2% | -172.6% | 345.3% |
| FCF Margin | 12.9% | -16.0% | -82.7% | -489.0% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.01 | $0.01 | +0.0% | ||
| Q1'26 | $0.01 | $-0.00 | -147.0% | ||
| Q4'25 | $0.02 | $0.07 | +250.0% | ||
| Q3'25 | $-0.02 | $-0.10 | -400.0% | ||
| Q2'25 | $-0.01 | $0.02 | +378.6% | ||
| Q1'25 | $-0.01 | $-0.01 | +0.0% | ||
| Q4'24 | $-0.01 | $-0.02 | -300.0% | ||
| Q3'24 | $-0.00 | $-0.02 | -700.0% |
Total return is +41.9% (1Y), outperforming the benchmark by +16.9%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +0.4% | -8.9% | — |
| 1Y | +41.9% | +16.9% | — |
| 3YCAGR | +16.6% | -3.5% | — |
| 5YCAGR | -20.2% | -33.3% | — |
| 10YCAGR | +32.3% | +18.5% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Cronos Group Inc. (CRON) valuation, health, and returns.
Cronos Group Inc. is estimated to be fair under our discounted cash flow framework. relative multiples indicate the stock is Expensive versus peers compared to industry peers. trading near fair value (DCF: $2.82)
Cronos Group Inc. has multiple valuation anchors: DCF Intrinsic Value: $2.82 | Peer Relative Fair Value: $1.38 | Wall Street Analyst Target: $2.30 (implying -15.1% upside). A convergence of these signals offers higher conviction.
Cronos Group Inc. displays fair financial health with a composite quality score of 54/100, supported by a Altman Z-Score of 12.8 (safe zone), Piotroski F-Score of 7/9, Return on Invested Capital (ROIC) of -0.7%.
Cronos Group Inc. returns capital via buybacks instead of dividends, carrying a 1.0% buyback yield and reducing outstanding shares by -0.1% in the last 12 months.
Cronos Group Inc.'s current growth trajectory is Accelerating. The company achieved +64.4% 1Y revenue growth and -122.3% 1Y EPS growth, compared to its 3Y revenue CAGR of +30.6%.
Wall Street consensus is Hold based on 15 analysts, beating EPS expectations in 17% of recent quarters with a -2-quarter streak. The consensus price target represents a -15.1% change from current levels.
Investment risks for Cronos Group Inc. include: -26.9% 1-year max drawdown. Volatility risk is characterized by a beta of 0.92x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.