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Cannara Biotech

LOVE.TO
40
Drug Manufacturers - Specialty & Generic · Healthcare
Exchange
Toronto Stock Exchange
Winston Score
40
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 23, 2026 · filings through May 31, 2026
How the score breaks down
Quality
Weak
Growth
Mixed
Cash Flow
Strong
Stability
Good
Valuation
Good

Winston Score History

The full picture

Cannara Biotech is a Canadian cannabis company that grows and sells marijuana products legally under Canada's federal licensing system. It operates large indoor growing facilities in Quebec and sells recreational cannabis products — including dried flower, pre-rolls, and oils — to adult consumers through provincial government retailers across Canada. Cannara owns the Orchid and Tribal cannabis brands and is one of the few licensed producers with fully integrated, large-scale indoor cultivation in Quebec.

The company makes money by selling cannabis products wholesale to provincial distributors, which then sell to consumers in government-run or government-approved stores. Cannara operates entirely within Canada, making it a domestic-focused producer in a competitive and heavily regulated market. Its main competitive advantages are low production costs from its large automated facility and its Quebec market presence, but the broader Canadian cannabis industry remains oversupplied and price-competitive, which continues to pressure margins across the sector.

Growth Profile

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

Revenue Growth

+16.4% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+8.2% YoY

YoY Growth Rate

Slow EPS growth

Insider Activity

54.2%ownership

Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

C$22M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

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

Growth + cash flow

Cannara Biotech is a rare growth stock that's already generating positive cash flow while growing at 16%. 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

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Quality

Profit per sale
Gross Margin
21.6%
Thin — 21.6% gross margin
Profit after running costs
Operating Margin
-1.8%
Losing money on operations — -1.8%
Return on the money invested
ROCE
0.1%
Weak — 0.1% 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
+15.4%
Fast-growing sales (+15.4% YoY)
Profit growth
EPS YoY
-33.7%
Earnings shrinking (-33.7% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

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
170%
Turns 170% of profit into real cash
Spare cash per sale
FCF Margin
4.0%
Thin free cash flow (4.0%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
0.29
Conservative — low debt load (0.29)
Covers its interest
Interest Cover
0.04x
Dangerous — barely covers interest (0.0x)

Interest coverage below 1. Their profits don't cover the interest bill.

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Valuation

Price vs profit
P/E Ratio (TTM)
18.3x
no trend
Fair value — P/E 18.3

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
+2.3
GROWING
Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Not applicable for this business.
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