Welcome to our Cannabis Earnings series where we break down the latest earnings to help you focus on the most important topics.
Introduction
Cronos (CRON) continued to disappoint with its latest financial results and its valuation has become increasingly detached from fundamentals. We think the business outlook for Cronos has deteriorated in the last few months as its sales and margin underperformed. Despite having the second-largest cash balance in the industry, the company has not been able to deploy capital accretively with its head-scratching US$300 million acquisition of Lord Jones generating sales of