Auxly Cannabis Group

XLY.TO

Drug Manufacturers - Specialty & Generic · Healthcare

Price

C$3.15

+0.01 (+0.32%)

Market Cap

C$319.2M

Exchange

Toronto Stock Exchange

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Weak

Growth

Good

Cash Flow

Strong

Stability

Good

Valuation

Good

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Share count rising — dilution

+102.5% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 56.0M (2021) → 113.3M (2025)

Winston Score History

The full picture

Auxly Cannabis Group is a Canadian company that grows, makes, and sells cannabis products. Its main products include dried flower, vapes, edibles, and pre-rolls sold under brands like Koios, Robinsons, and Foxtail. It sells almost entirely to adult consumers through licensed retailers across Canada's legal recreational cannabis market.

Auxly makes money by selling packaged cannabis products wholesale to provincial distributors, who then sell them to retail stores. The company operates entirely within Canada and is a mid-sized player in a crowded market with dozens of competitors. Its gross margin of around 47% suggests reasonable pricing power from its branded product lineup, but the Canadian cannabis industry remains highly competitive and faces ongoing pressure from illicit market alternatives and tight regulations that limit advertising and distribution options.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+18.0% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

-14.6% YoY

YoY Growth Rate

Earnings declining

R&D Spend

C$0/ year

0.0% of revenue

Below sector average (18%)

Research and development spending

Insider Activity

23.5%ownership

↓ Declining

Insider ownership declining — could be dilution or selling

Cash Position

Cash flow positive

C$39M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Auxly Cannabis Group is a rare growth stock that's already generating positive cash flow while growing at 18%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

22.0%

Thin — 22.0% gross margin

Profit after running costs

Operating Margin

-8.5%

Losing money on operations — -8.5%

Return on the money invested

ROCE

3.2%

Weak — 3.2% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth

Sales YoY

+18.8%

Fast-growing sales (+18.8% YoY)

Profit growth

EPS YoY

+10.6%

Earnings growing (+10.6% YoY)

Healthy double-digit earnings growth — what compounders look like.

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash

Cash Conversion

108%

Turns 108% of profit into real cash

Spare cash per sale

FCF Margin

19.1%

Converts sales into free cash efficiently (19.1%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns

Debt / Equity

0.25

Conservative — low debt load (0.25)

Covers its interest

Interest Cover

1.67x

Dangerous — barely covers interest (1.7x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit

P/E Ratio (TTM)

9.5x

Attractive valuation — P/E 9.5

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year

P/E vs Forward

-4.9

SLOWING

Earnings expected to fall — forward P/E higher than today

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Dividends

Not applicable for this business.

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