Aurora Cannabis Inc. (NASDAQ: ACB) smoked another quarter, led by top-line growth, profitability, and disciplined capital allocation. And in fresh news, there’s positive cash flow right around the corner.
Take a hit off this: The top line increased 11%, driven primarily by strong medical cannabis performance linked to high demand from Germany, Poland, and Australia. Gross margin expanded significantly to 61%, led by the medical business, which continues to outperform the broader cannabis industry.
Management expects a return to positive free cash flow in its fiscal third quarter, which ends in December. Additionally, ACB maintains a rock-solid balance sheet with C$142 million in cash, and no cannabis-related debt.
To top it off, the re-certification of Aurora’s EU-GMP and Leuna facility expansion has placed Aurora among a short list of cannabis companies, offering visibility for sustainable growth and margin improvement.
Turning to valuation, ACB is trading at 0.9x forward sales and 6.5x EV/EBITDA, below peer averages even amid an attractive industry positioning. For investors interested in a straightforward play on medical and international cannabis markets, ACB is a name to keep on the shelf.
Download the full report to learn more about Aurora’s transformation from turnaround story to trailblazer.
