Golden Agri-Resources Stock (OTC:GARPY), Trade Ideas

GOLDEN AGRI-RES ADR

Golden Agri-Resources Ltd is an integrated palm oil plantation company. It operates through two segments namely Plantations and palm oil mills, and Palm, laurics, and others. The plantation and palm oil mills segment comprises the products from the upstream business. The Palm, laurics and others comprise the processing and merchandising of palm and oilseed-based products i.e. bulk, branded, oleo-chemicals and other vegetable oils. The majority of the revenue is generated from the Palm, laurics and other segments.

GOLDEN AGRI-RES UNSP/ADR by Golden Agri-Resources

Golden Agri-Resources Ltd

As periods of economic turmoil bode relatively well for the value stocks, it could be wise to invest in shares of Group 1 Automotive (GPI), Golden Agri-Resources (GARPY), and Friedman Industries (FRD) that are trading at discounted prices and offer stable returns. Continue reading… While uncertainties are still elevated, involving recession risks and inflation, the economy has tried to remain resilient in recent months. Following recent turmoil from the <a href="https://www.bankrate.com/banking/bank-failures-latest-updates-silicon-valley-signature-bank/">high-profile bank failures</a> and a slowing economy, the Fed seems close to ending its streak of raising interest rates.
Given this backdrop, investing in shares of fundamentally sound stocks Group 1 Automotive, Inc. (<a href="https://stocknews.com/stock/GPI/">GPI</a>), Golden Agri-Resources Ltd (<a href="https://stocknews.com/stock/GARPY/">GARPY</a>), and Friedman Industries, Incorporated (<a href="https://stocknews.com/stock/FRD/">FRD</a>), which are trading at a discount, could be worth your while in May 2023.
The recent weak economic figures raised concerns about the U.S. economy tipping into recession. The latest data from the Commerce Department indicated that Gross Domestic Product (GDP) <a href="https://www.cnbc.com/2023/04/27/gdp-q1-2023-.html">rose at a 1.1% annual rate</a> in the first quarter, below the 2% estimate.
According to former Treasury Secretary Larry Summers, the U.S. has a <a href="https://ca.finance.yahoo.com/news/odds-recession-next-70-us-232225990.html">70% chance of tipping into a recession</a> within the next year, as stagflation is brewing in the economy.
Meanwhile, inflation still looms well above the Fed's target at 5%, per the latest <a href="https://www.bls.gov/news.release/pdf/cpi.pdf">Consumer Price Index (CPI) report</a>. Moreover, this environment has caused a shift from growth stocks to value stocks as investors seek shelter in high-quality businesses with strong fundamentals and low share prices.
Additionally, since value stocks tend to be low-volatility investments, they can provide stability for portfolios during market downturns while still offering potential upside when markets rebound.
According to a report by Schroders, the asset management company gave an optimistic outlook on value investing and stated that <a href="https://mybrand.schroders.com/m/5e3ed2c593d7efa4/original/607519_SC_InFocus_QEP-10-key-themes-for-2023_v2.pdf">value equities would outperform the broader market by 11.8%</a> (cumulatively) over the next three years.
With this being said, let's dive into three fundamentally sound value stocks to watch in the stock market this month.
Group 1 Automotive, Inc. (<a href="https://stocknews.com/stock/GPI/">GPI</a>)
GPI is an automotive retailer that operates through two geographical segments: the United States (U.S.) and the United Kingdom (U.K). Through its omnichannel platform, the company sells new and used cars and light trucks; arranges related vehicle financing; sells service and insurance contracts; provides automotive maintenance and repair services, and sells vehicle parts.
On March 28, GPI announced the expansion of its U.S. operations with the acquisition of Estero Bay Chevrolet in Estero, Florida. The dealership is expected to generate $150 million in annual revenues, which should bode well for the company.
On February 14, backed by its strong cash flow, the company's board of directors increased its annual dividend rate by 20% year-over-year to $1.80 per share. Consistent with this increase, GPI paid a $0.45 dividend per share to its shareholders on March 15, 2023.
The company's four-year average dividend yield is 0.90%, and its forward annual dividend of $1.80 translates to an 0.80% yield on prevailing prices. Its dividends have grown at 12.1% and 9.9% CAGRs over the past three and five years, respectively.
In terms of forward non-GAAP P/E, GPI is trading at 5.48x, 60% lower than the industry average of 13.71x. Its forward EV/Sales multiple of 0.38 is 65.2% lower than the industry average of 1.10x. In addition, GPI's forward Price/Sales ratio of 0.18 is 77.7% lower than the industry average of 0.82.
For the first quarter that ended March 31, 2023, GPI's total revenues increased 7.4% year-over-year to $4.13 billion, while its gross profit grew marginally from the year-ago value to $727.90 million.
During the same period, its non-GAAP income from operations and <a href="https://www.investopedia.com/terms/n/netincome.asp">net income</a> from continuing operations amounted to $242.10 million and $156.10 million, respectively. Also, its adjusted EPS from continuing operations increased 1.1% year-over-year to $10.93.
Analysts expect GPI's revenue to increase 2.6% year-over-year to $4.25 billion in the second quarter ending June 2023. Its EPS is expected to be $10.78 in the same period and increase by 11.4% per annum over the next five years. GPI surpassed the consensus EPS and revenue estimates in each of the trailing four quarters, which is promising.
GPI's net income and EBITDA grew at 62.4% and 35.4% CAGRs over the past three years. Over the same period, the company's EPS improved at a CAGR of 73.5%.
Shares of GPI have gained 32.8% over the past six months to close the last trading session at $223.78.
GPI's promising outlook is apparent in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of B, which equates to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
It has an A grade for Value. Out of 21 stocks in the <a href="https://stocknews.com/category/auto-dealers/">Auto Dealers &amp; Rentals</a> industry, it is ranked #3. To see the other ratings of GPI for Growth, Momentum, Stability, Sentiment, and Quality, <a href="https://stocknews.com/stock/GPI/">click here</a>.
Golden Agri-Resources Ltd (<a href="https://stocknews.com/stock/GARPY/">GARPY</a>)
Based in Singapore, GARPY is a leading seed-to-shelf agribusiness, producing an extensive portfolio of palm-based products with an efficient end-to-end supply chain, from sustainable sourcing to global delivery. It operates through the Plantations and Palm Oil Mills, and Palm, Laurics, and Others segments.
On February 28, the company proposed a final dividend of 0.991 Singapore cents per share for a total of 1.791 Singapore cents per share for the full year 2022, reflecting a 12% increase from the previous year. The proposed final dividend will be distributed on May 18, 2023, subject to approval from GARPY's shareholders at the 2023 annual meeting.
GARPY's four-year average dividend yield is 3.72%, and its forward annual dividend of $1.47 translates to a 7.21% yield on the current price level. Its dividends have grown at 47.4% and 24.7% CAGRs over the past three and five years, respectively.
In terms of forward EV/Sales, GARPY is trading at 0.50x, 71.1% lower than the industry average of 1.73x. Likewise, its forward EV/EBITDA and Price/Sales multiples of 4.33 and 0.24 are 64.3% and 78.7% lower than the industry averages of 12.14x of 1.15x.
GARPY's revenue increased 12.3% year-over-year to $11.44 billion in the fiscal year that ended on December 31, 2022. Its gross profit grew 28.5% from the year-ago value to $3.03 billion, while its EBITDA improved 50.4% year-over-year to an all-time high of $1.83 billion.
Net profit attributable to owners of the company increased 64.2% from its year-ago value to $782.10 million. In addition, its EPS increased by 64.5% from the previous year to 6.17 cents.
For the fiscal years 2023 and 2024, GARPY's revenue is expected to amount to $10.52 billion and $10.46 billion, respectively. Over the past three years, its revenue and EBITDA have grown at CAGRs of 21.2% and 63.1%, respectively. Likewise, its EPS grew at a CAGR of 59.4% over the same period.
Over the past three months, the stock has gained 8.4% to close the last trading session at $20.38. Also, it has gained 6.8% year-to-date.
GARPY's strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, which equates to a Strong Buy in our POWR Ratings system. GARPY also has an A grade for Value and a B for Stability and Quality. Within the <a href="https://stocknews.com/category/agriculture/">Agriculture</a> industry, it is ranked first of 27 stocks.
<a href="https://stocknews.com/stock/GARPY/">Click here</a> to see the additional POWR Ratings for GARPY (Growth, Momentum, and Sentiment).
Friedman Industries, Incorporated (<a href="https://stocknews.com/stock/FRD/">FRD</a>)
FRD is a manufacturer and processor of steel products with operating plants in Hickman, Arkansas; Decatur, Alabama; and Lone Star, Texas. The company operates in two segments: coil products and tubular products.
On March 21, the company declared a dividend of $0.02 per share on its common stock, payable to shareholders on May 26, 2023. FRD's four-year average dividend yield is 1.42%, and its current dividend of $0.08 translates to a 0.73% yield on prevailing prices. Also, its dividend payout has grown at a 9.9% CAGR over the past five years.
In terms of trailing-12-month EV/Sales, FRD is trading at 0.25x, 82.8% lower than the industry average of 1.44x. The stock's trailing-12-month Price/Sales of 0.16x is 85.8% lower than the 1.10x industry average. Furthermore, the stock's forward Price/Cash Flow of 1.51x is 82.7% lower than the 8.72x industry average.
FRD's net sales increased 116.5% year-over-year to $111.86 million for the fiscal third quarter that ended December 31, 2022. Its earnings from operations amounted to $110.43 million versus a loss from operations of $5.59 million in the year-ago period. The company's net earnings came in at $1.38 million and $0.19 per share compared to a net loss of $2.96 million and $0.45 per share in the prior-year period.
Its revenue has grown at CAGRs of 48.8% and 38.4% over the past three and five years, respectively. Its total assets have grown at a 34.3% CAGR over the past three years.
The stock has gained 18.1% over the past six months and 11.9% year-to-date to close the last trading session at $10.95.
FRD's solid prospects are reflected in its POWR Ratings. The stock has an overall rating of B, equating to Buy in our proprietary rating system. It has an A grade for Value and a B for Growth and Sentiment. Among the 34 stocks in the A-rated <a href="https://stocknews.com/category/steel/">Steel</a> industry, it is ranked #13.
In addition to the POWR Ratings I've just highlighted, <a href="https://stocknews.com/stock/FRD/">click here</a> to see FRD's ratings for Momentum, Stability, and Quality.
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GPI shares were trading at $223.15 per share on Wednesday afternoon, down $0.63 (-0.28%). Year-to-date, GPI has gained 23.97%, versus a 7.96% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Shweta Kumari</h2> <img src='https:/wp-content/uploads/2022/03/Shweta-Kumari_Image-2.jpg' style="float:left; padding:5px;width:125px;">Shweta's profound interest in financial research and quantitative analysis led her to pursue a career as an investment analyst. She uses her knowledge to help retail investors make educated investment decisions.<a href="https://stocknews.com/authors/?author=shweta-kumari">More...</a>The post <a href=https://stocknews.com/news/gpi-garpy-frd-the-great-rotation-3-value-stocks-to-buy-in-may/>The Great Rotation: 3 Value Stocks to Buy in May 2023</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

The Great Rotation: 3 Value Stocks to Buy in May 2023

AGCO Corporation (AGCO) delivered robust sales growth and margin improvement in the last reported quarter. The stock has generated stable returns and might be an ideal buy this month. Keep reading... Despite the uncertain macroeconomic environment, AGCO Corporation (<a href="https://stocknews.com/stock/AGCO/">AGCO</a>) delivered a solid financial performance in the first quarter. Its EPS and revenue came above analyst expectations. The company's EPS beat the consensus estimate by 29.4%, while its revenue came 5.7% above analyst estimates.
With the stock expected to maintain its performance in the upcoming term, AGCO could be worth owning.
AGCO's Chairman, President, and CEO, Eric Hansotia, stated, "With continued execution of our strategy, AGCO delivered robust sales growth and margin expansion in the first quarter as healthy farm economics continued to support elevated global demand. Our solid operational performance, continued pricing actions, and a stabilizing supply chain contributed to the excellent first quarter results."
"Our solid operational performance, continued pricing actions, and a stabilizing supply chain all contributed to the excellent first quarter results. The success of our farmer-first strategy focused on growing our precision ag business, globalizing a full line of our Fendt branded products, and expanding our parts and service business, is generating strong growth in these margin-rich businesses," he added.
The company's order board remains strong, and it remains confident in the success of its products and the strength of large ag demand. AGCO sales in North America, South America, and Europe/Middle East grew strongly in the first quarter. The Asia/Pacific/Africa sales dipped 9.9% year-over-year.
AGCO has an impressive earnings surprise history, surpassing the consensus EPS estimates in each of the trailing four quarters. For fiscal 2023, the company's net sales are expected to be approximately $14.50 billion, while its gross and operating margins are expected to improve over the previous year. Its EPS is expected to come in at $14.40.
AGCO's stock has gained 10.5% over the past nine months and 5% over the past year to close the last trading session at $123.56. Wall Street analysts expect the stock to hit $153.27, indicating a <a href="https://www.tipranks.com/stocks/agco/forecast">potential upside of 27.7%</a>.
Here's what could influence AGCO's performance in the upcoming months:
Robust Financials
For the fiscal first quarter that ended March 31, 2023, AGCO's net sales increased 24.1% year-over-year to $3.33 billion. The company's adjusted income from operations increased 60.1% from the year-ago period to $388.80 million.
Its adjusted net income increased 46.9% year-over-year to $263.10 million. In addition, its adjusted net EPS came in at $3.51, representing an increase of 46.9% over the prior-year quarter.
Strong Historical Growth
AGCO's revenue grew at a CAGR of 14% over the past three years. Its EBIT grew at a CAGR of 39.6% over the past three years. In addition, its EPS grew at a CAGR of 99.5% in the same time frame.
Discounted Valuation
In terms of forward non-GAAP <a href="https://www.investopedia.com/terms/p/price-earningsratio.asp">P/E</a>, AGCO's 8.42x is 48.4% lower than the 16.34x industry average. Its 0.74x forward EV/Sales is 53.9% lower than the 1.61x industry average. Likewise, its 6.81x forward EV/EBIT is 53.2% lower than the 14.56x industry average.
High Profitability
In terms of the trailing-12-month EBIT margin, AGCO's 10.87% is 12.9% higher than the 9.63% industry average. Its 1.29x trailing-12-month asset turnover ratio is 60.5% higher than the 0.80x industry average. Likewise, its 24.86% trailing-12-month Return on Common Equity is 79.7% higher than the industry average of 13.83%.
Positive Analyst Estimates
The consensus EPS estimate of $14.67 for the fiscal year 2023 represents an 18.10% improvement year-over-year. The consensus revenue estimate of $14.54 billion for the same year indicates a 15% increase from the prior year. Its EPS for fiscal 2024 is expected to increase marginally year-over-year to $14.67, while its revenue is expected to increase 1% year-over-year to $14.69 billion.
AGCO's EPS and revenue for the quarter ending June 30, 2023, are expected to increase 55.5% and 26.3% year-over-year to $3.70 and $3.72 billion, respectively.
POWR Ratings Show Promise
AGCO has an overall B rating, equating to a Buy in our proprietary <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> system. The POWR Ratings are calculated considering 118 distinct factors, with each factor weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. AGCO has an A grade for Value, consistent with its discounted valuation.
It has a B for Growth and Sentiment, in sync with its solid historical growth and favorable analyst estimates.
Within the <a href="https://stocknews.com/category/agriculture/">Agriculture</a> industry, AGCO is ranked #2 out of 26 stocks. <a href="https://stocknews.com/stock/AGCO/">Click here</a> to access AGCO's ratings for Momentum, Stability, and Quality.
Bottom Line 
Despite the uncertain macroeconomic environment, AGCO delivered a strong financial performance in the first quarter. The company is confident of maintaining strong momentum throughout fiscal 2023 as its order board remains healthy. Although there are concerns about a recession, AGCO is well-positioned to tackle it, thanks to its strong global presence.
Given its robust financials, solid historical growth, discounted valuations, favorable analyst estimates, and high profitability, it could be wise to buy the stock now.
How Does AGCO Corporation (AGCO) Stack Up Against Its Peers?
AGCO has an overall POWR Rating of B. Check out these other stocks within the Agriculture industry with A (Strong Buy) or B (Buy) ratings: Golden Agri-Resources Ltd (<a href="https://stocknews.com/stock/GARPY/">GARPY</a>), MariMed Inc. (<a href="https://stocknews.com/stock/MRMD/">MRMD</a>), and Dole plc (<a href="https://stocknews.com/stock/DOLE/">DOLE</a>).
<a href="https://report.stocknews.com/free-report/10-stocks-to-sell/?formplacement=artbotad_10sell">10 Stocks to SELL NOW!</a>
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AGCO shares were trading at $120.09 per share on Tuesday afternoon, down $3.47 (-2.81%). Year-to-date, AGCO has declined -13.06%, versus a 8.14% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Malaika Alphonsus</h2> <img src='https:/wp-content/uploads/2022/11/Malaika-Alphonsus_Headshot-1.png' style="float:left; padding:5px;width:125px;">Malaika's passion for writing and interest in financial markets led her to pursue a career in investment research.

With a degree in Economics and Psychology, she intends to assist investors in making informed investment decisions.<a href="https://stocknews.com/authors/?author=malaika-alphonsus">More...</a>The post <a href=https://stocknews.com/news/agco-garpy-mrmd-dole-agco-corp-agco-the-best-agricultural-stock-to-buy-in/>AGCO Corp (AGCO): The Best Agricultural Stock to Buy in May</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

AGCO Corp (AGCO): The Best Agricultural Stock to Buy in May

Despite the growing market for recreational cannabis, Cronos Group (CRON) has failed to surpass its consensus EPS and revenue estimates during the first quarter. However, given its substantial cash reserves and no long-term debt, is CRON a good buy now? Keep reading... Following its legalization in 2018, Canada's cannabis industry witnessed a boom, significantly contributing to the country's economy. Despite growing legalization, not all companies have been able to capitalize on the industry tailwinds. To that end, I think it could be best to steer clear of Cronos Group Inc. (<a href="https://stocknews.com/stock/CRON/">CRON</a>).
In this piece, I have discussed several reasons why it could be wise to avoid the stock now.
During the first quarter, CRON's EPS and revenue failed to beat analyst estimates. Its EPS came 18.2% below the consensus estimate, while its revenue fell short of the analyst estimates by 17.7%.
The company witnessed a decrease in net revenue primarily due to lower cannabis flower sales in the Rest of World (ROW) segment and a decline in revenue in the U.S. segment. The ROW segment net revenue was also impacted by the weakened Canadian dollar and Israeli Shekel against the U.S. dollar.
The Israeli medical market has been challenged by competitive activity, a slowdown in patient permit authorizations, and geopolitical unrest, which has resulted in a decline in sales.
Moreover, CRON's decline in gross profit was primarily driven by reduced gross profit in the ROW segment due to lower cannabis flower sales in Israel, an adverse price/mix shift in cannabis flower sales in Canada, increased returns, and a reduction in gross profit in the U.S. segment.
Although it's been nearly five years since Canada legalized recreational cannabis for adults, the industry is now plagued with oversupply challenges. The oversupply problem has caused the prices of dry flower to plummet along with sales due to the fierce competition, as recreational marijuana is now <a href="https://edition.cnn.com/2023/05/30/politics/minnesota-cannabis-legalization-recreational-marijuana/index.html">legalized in 23 U.S. states</a>.
For fiscal 2023, CRON expects its net revenue to be between $100 million and $110 million. Also, the company expects to achieve the higher end of the $10 million and $20 million operating expenses savings in 2023. It expects its cash flow for the last nine months of fiscal 2023 to decline by less than $25 million.
CRON's stock has fallen 39.2% in price over the past year and 46.6% over the past six months to close its last trading session at $1.74.
Here are some factors that could influence CRON's performance in the upcoming months:
Disappointing Financials
For the fiscal first quarter that ended March 31, 2023, CRON's net revenue declined 19.5% year-over-year to $20.14 million. The company's gross profit fell 65.6% over the prior-year quarter to $2.38 million. Its operating loss narrowed 39% year-over-year to $22 million. In addition, its net loss attributable to CRON and its loss per share came in at $19.17 million and $0.05, respectively.
Poor Profitability
In terms of the trailing-12-month asset turnover ratio, CRON's 0.07x compares to the industry average of 0.35x. Its 8.53% trailing-12-month <a href="https://www.investopedia.com/terms/g/gross_profit_margin.asp">gross profit margin</a> is 84.7% lower than the industry average of 55.77%. Likewise, its 4.07% trailing-12-month Capex/Sales is 12.3% lower than the 4.64% industry average.
Mixed Analyst Estimates
Analysts expect CRON's EPS for fiscal 2023 and 2024 to remain negative. Its revenue for fiscal 2023 and 2024 is expected to increase 4.5% and 23.7% year-over-year to $95.75 million and $118.46 million. Additionally, its EPS for the quarter ending June 30, 2023, is expected to remain negative. Its revenue for the same quarter is expected to increase 0.6% year-over-year to $23.13 million.
POWR Ratings Show Weakness
CRON has an overall D rating, equating to a Sell in our proprietary <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> system. The POWR Ratings are calculated considering 118 distinct factors, with each factor weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. CRON has a D grade for Quality, in sync with its poor profitability.
Within the D-rated <a href="https://stocknews.com/category/agriculture/">Agriculture</a> industry, CRON is ranked #25 out of 27 stocks. <a href="https://stocknews.com/stock/CRON/">Click here</a> to access CRON's Growth, Value, Momentum, Stability, and Sentiment ratings.
Bottom Line 
CRON's stock is trading below its 50-day and 200-day moving averages of $1.86 and $2.51, respectively, indicating a downtrend. Amid persistent inflation, tough competition, oversupply problems, and regulation challenges, the company struggles to generate sales. Following a disappointing first quarter financial performance, the company could continue to remain unprofitable in the upcoming quarters.
Given its disappointing financials and poor profitability, it could be wise to avoid the stock now.
Stocks to Consider Instead of Cronos Group Inc. (CRON)
CRON has an overall POWR Rating of D, equating to a Sell rating. However, investors could check out these other stocks within the Agriculture industry with an A (Strong Buy) or B (Buy) rating: Golden Agri-Resources Ltd (<a href="https://stocknews.com/stock/GARPY/">GARPY</a>), AGCO Corporation (<a href="https://stocknews.com/stock/AGCO/">AGCO</a>), and MariMed Inc. (<a href="https://stocknews.com/stock/MRMD/">MRMD</a>).
What To Do Next?
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CRON shares were trading at $1.78 per share on Friday afternoon, up $0.04 (+2.01%). Year-to-date, CRON has declined -29.92%, versus a 12.36% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Malaika Alphonsus</h2> <img src='https:/wp-content/uploads/2022/11/Malaika-Alphonsus_Headshot-1.png' style="float:left; padding:5px;width:125px;">Malaika's passion for writing and interest in financial markets led her to pursue a career in investment research.

With a degree in Economics and Psychology, she intends to assist investors in making informed investment decisions.<a href="https://stocknews.com/authors/?author=malaika-alphonsus">More...</a>The post <a href=https://stocknews.com/news/cron-garpy-agco-mrmd-is-cronos-group-cron-a-good-buy/>Is Cronos Group (CRON) a Good Buy?</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

Is Cronos Group (CRON) a Good Buy?

Golden Agri-Resources Ltd is an integrated palm oil plantation company. It operates through two segments: Plantations and palm oil mills, and Palm laurates and others.

Daily Stock Analysis: Golden Agri-Resouces

Cannabis producer Cronos Group (CRON) is experiencing turbulent times with weakening sales and losses. So, will it be worth investing in the stock now? Read on... While Canadian cannabinoid company Cronos Group Inc. (<a href="https://stocknews.com/stock/CRON">CRON</a>) has been expanding its business, that's not paying off well. The company is struggling with lower cannabis flower sales in its Rest of the World segment and a decline in revenue in the U.S. segment.
The company reported a 20% year-over-year drop in net revenue at $20.14 million for the quarter ending March 31. Gross profit for the same period stood at a dwindled $2.38 million, marking a decrease of $4.55 million compared to the prior-year quarter. Also, its bottom line remained in the red.
Although the trend of states legalizing cannabis has been on the rise and support for legalization maintains a steady incline, the battle for mainstream acceptance is far from over. Thus, it could be a bumpy road ahead for the company to turn its business to profitability and growth.
From my perspective, CRON is not ideally suited for short-term investors. The following detailed analysis of several key metrics substantiates my bearish stance.
Analyzing CRON's Financial Performance: A Detailed Review of Key Metrics 2020-2023
The <a href="https://www.investopedia.com/terms/t/ttm.asp">trailing-12-month</a> net income of CRON has demonstrated a clear fluctuating downward trend spanning from September 2020 to March 2023 based on the given data series.
<ul>
<li>On September 30, 2020, CRON's net income was $77.29 million.</li>
<li>It then hiked downwards to -$73.14 million by December 31, 2020, indicating the beginning of their losses.</li>
<li>An overarching trend of fluctuation followed, although generally in the negative zone. A notable drop occurred in the first quarter of 2021, with a reported -$310.49 million, marking an all-time low for the year.</li>
<li>However, on June 30, 2021, there was a stride toward recovery with small losses of approximately -$146.46 million.</li>
<li>Sadly, another peak decline was witnessed at -$373.70 million by the close of the third quarter of the same year.</li>
<li>Despite the minor improvements throughout 2022 and 2023, the values remained below zero. For instance, on December 31, 2022, and March 31, 2023, the net income was capped at -$168.73 million and -$155.27 million, respectively.</li>
</ul>
From September 30, 2020, to March 31, 2023, CRON experienced a significant negative growth rate as its net income plunged from $77.29 million to -$155.27 million. This data flags a certain level of financial instability within CRON, particularly accentuated by the final values in the series.
<img src="https://storage.googleapis.com/sjn-charts/visualized-metrics/1688482463.77137.png" />
Based on the provided data, the trend of trailing-12-month revenue for the company from September 2020 to March 2023 demonstrated a generally upward progression, with noticeable fluctuations.
<ul>
<li>Starting at $36.61 million in September 2020, the revenue steadily rose, finishing at $74.44 million in December 2021.</li>
<li>By March 2022, a substantial surge led to the amount landing at $86.86 million.</li>
<li>June and September 2022 witnessed a steady climb, hitting an all-time high of $94.81 million in September.</li>
<li>However, there were significant drops in the final quarter of 2022 and the first quarter of 2023, leading to a decrease to $91.90 million in December 2022 and then further down to $87.01 million in March 2023.</li>
</ul>
In terms of growth rate, when measured from the initial value of $36.61 million (September 2020) to the latest value of $87.01 million (March 2023), CRON experienced a growth rate of approximately 137.77%. It's crucial to note that while the overall trend showed substantial growth, the downward trend during the last reported periods since December 2022 alerts potential challenges that the company might be facing.
<img src="https://storage.googleapis.com/sjn-charts/visualized-metrics/1688482507.07417.png" />
The Analyst Price Target for CRON experienced a mix of stability and decline from November 12, 2021, to July 4, 2023. Here is an overview:
<ul>
<li>From November 12, 2021, to November 26, 2021, the price target remained stable at $7.5. However, it dropped to $7 on November 26, 2021, and held steady till February 18, 2022.</li>
<li>The Analyst Price Target then declined steadily from $7 in February 2022 to $4 on March 11, 2022, and remained at this level until May 20, 2022.</li>
<li>A slight increase was observed on May 13, reaching $4.25 before decreasing back to $4 on May 20 - a level maintained until around August 12, 2022.</li>
<li>We then notice a sharper decline from $4 in early August 2022 to $3.5 by October 7, 2022, which persisted for a month before narrowing to $3.49 on November 4, 2022, and eventually settling at $3.4 from November 18, 2022, to February 24, 2023.</li>
<li>After fluctuating between $3.3 and $3.123 between December 30, 2022, and April 28, 2023, the Analyst Price Target plunged sharply to $2.995 on May 19, 2023, remaining constant until July 4, 2023.</li>
</ul>
Looking at the overall dataset, the initial value was $7.5 (on November 12, 2021), and the last recorded value was $2.995 (on July 4, 2023). Calculating growth from the first to the last value gives a decrease of approximately -60.07% over the total period. The more recent data from 2023 show a consistently reduced target value compared to 2021 and 2022, underscoring the need for increased focus on this recent downward trend.
<img src="https://storage.googleapis.com/sjn-charts/visualized-metrics/1688482546.34165.png" />
Assessing CRON Share Price Trends from January to July 2023
The data from January to July 2023 chronicles the share price trend of CRON. Let's look at the details:
<ul>
<li>On January 6, 2023, the price was $2.53. Over the month, it saw a slight decline, closing at $2.47 by January 27.</li>
<li>For February, the prices started at $2.51 on February 3, then saw a steady decrease, ending at $2.16 by February 24.</li>
<li>In March, the prices decreased consistently, starting at $2.11 on March 3 and falling to $1.92 by the end of the month.</li>
<li>April saw a slight fluctuation, with prices moderately recovering to $1.92 on April 21, but it ended at a low of $1.80 on April 28.</li>
<li>In May, the prices rose slightly in the middle of the month to $1.90 on May 5, only to fall again to $1.78 towards the end of the month on May 19.</li>
<li>June began with a low at $1.74 but saw a steady rise throughout, with a significant surge at the end of the month to reach $1.88 on June 30.</li>
<li>This upward momentum carried into July, with the price hitting $2.04 on July 3.</li>
</ul>
Looking at this data, it can be concluded that CRON had a general decreasing trend in share prices from January 2023 till May 2023, post which the trend reversed with prices gradually increasing from June 2023 onwards. However, it should be noted that the growth rate was slightly fluctuating and not stable during the period. Here is a chart of CRON's price over the past 180 days.
<img src="https://storage.googleapis.com/sjn-charts/visualized-metrics/1688483776.97044.png" />
Analyzing CRON's POWR Ratings
CRON has an overall D rating, translating to a Sell in our <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> system. It is ranked #25 out of 28 stocks in the <a href="https://stocknews.com/category/agriculture/">Agriculture</a> sector. This rank is slightly higher than previous weeks and sits towards the lower end of the performance spectrum, as smaller numbers indicate better performance.
For a more detailed review, here is the progression of the CRON stock's performance and ranking over time:
<ul>
<li>From the week of January 7, 2023, to February 25, 2023, the CRON stock maintained a consistent F and later a D rating and mostly held steady at the #25 spot in its category.</li>
<li>Its rank slightly improved to #24 during the week of February 11, 2023, and it continued to oscillate between the 22-24 ranks up until the week of April 1, 2023. At this point, it attained its best rank of #21 in the category.</li>
<li>However, the stock fluctuated again between ranks 22 and 25 through to the most recent date, July 1, 2023.</li>
</ul>
Overall, while CRON showed minor improvements in terms of its rank within the Agriculture category over time, it has remained relatively constant overall with a D rating.
The POWR Ratings for CRON in the most noteworthy dimensions are as follows:
<ol>
<li>Growth:</li>
</ol>
In the growth dimension, CRON has started strong, with a rating of 77 in January 2023. The rating increased slightly to 78 in February 2023 before experiencing a gradual downward trend with values of 70 in March 2023, 71 in April 2023, and then plummeting to 62 in May 2023. The trend continued with further decreases to 56 in June and a slight rise to 58 in July 2023.
<ol>
<li>Stability:</li>
</ol>
CRON began with a modest rating of 21 in January 2023, which increased to 22 in February, followed by a substantial increase to 32 in March which remained stable in April. The stability value made a considerable jump to 38 in May, further escalated to 41 in June, then finalized at a high of 43 in July 2023.
<ol>
<li>Value:</li>
</ol>
In the value dimension, CRON started at 12 in January 2023, which was fairly low. This rating increased gradually to 13 in February, making a noticeable ascent to 19 in March, 22 in April and May, 24 in June, and retaining the same score in July 2023.
Based on the above analysis, it's evident that the growth dimension had the highest ratings at the beginning of the year. However, it showed a declining trend over the subsequent months. On the other hand, stability and value dimensions demonstrated clear ascending trends but remained low throughout the time frame.
<img src="https://storage.googleapis.com/sjn-charts/visualized-metrics/1688483843.06928.png" />
Stocks to Consider Instead of Cronos Group Inc. (CRON) 
Other stocks in the Agriculture sector that may be worth considering are Golden Agri-Resources Ltd (<a href="https://stocknews.com/stock/GARPY">GARPY</a>), AGCO Corporation (<a href="https://stocknews.com/stock/AGCO">AGCO</a>), and ICL Group Ltd. (<a href="https://stocknews.com/stock/ICL">ICL</a>) -- they have better POWR Ratings.
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CRON shares were trading at $2.04 per share on Tuesday morning, up $0.07 (+3.55%). Year-to-date, CRON has declined -19.69%, versus a 16.92% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Subhasree Kar</h2> <img src='https:/wp-content/uploads/2021/06/Subhasree-Kar-HS2.jpg' style="float:left; padding:5px;width:125px;">Subhasree's keen interest in financial instruments led her to pursue a career as an investment analyst. After earning a Master's degree in Economics, she gained knowledge of equity research and portfolio management at Finlatics.<a href="https://stocknews.com/authors/?author=subhasree-kar">More...</a>The post <a href=https://stocknews.com/news/cron-garpy-agco-icl-should-you-buy-shares-of-cronos-group-cron-in-july/>Should You Buy Shares of Cronos Group (CRON) in July?</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

Should You Buy Shares of Cronos Group (CRON) in July?

Flora Growth (FLGC) entered a new partnership recently to grow its presence in Europe. Moreover, as the European Union moves toward de-scheduling narcotics, is this the right time to scoop up FLGC shares? Read on... Flora Growth Corp (<a href="https://stocknews.com/stock/FLGC/">FLGC</a>) recently <a href="https://finance.yahoo.com/news/flora-growth-corp-truhc-pharma-203000173.html">partnered with TruHC Pharma GmbH</a>, a medical cannabis expert based in Hamburg, Germany, aiming to grow its presence in Europe. As Germany and the European Union move towards de-scheduling narcotics, this partnership is expected to strengthen FLGC's competitive standing and future prospects.
Turning attention towards its financial performance, FLGC showcased a commendable revenue expansion in the last reported quarter. However, profitability continues to elude the firm as the net loss stood at a substantial $44.6 million for the quarter ended in June 2023.
With an ongoing emphasis on cost-cutting measures and optimizing resources, FLGC posits this period as a <a href="https://finance.yahoo.com/news/flora-growth-corp-reports-second-200100255.html">rebuilding phase</a> in its strategic plan. Yet, these efforts' efficacy and future contribution to bottom-line improvements remain to be seen. Street analysts expect its EPS to remain negative this year.
In light of escalating competition within the sector, it may be advisable to steer clear of this stock for now—a comprehensive review of vital metrics shades further importance to a cautious approach.
Analyzing FLGC's Financial Performance: A Trend Analysis from 2020 to 2023
The trend and fluctuations in the trailing-12-month net income of FLGC suggest a consistent decline over time. Here are some significant highlights from the data:
<ul>
<li>On December 31, 2020, FLGC recorded a net income of -$14.33 million.</li>
<li>By the end of 2021, there was a significant drop in net income, with a total value of -$21.36 million, reflecting a larger loss than the previous year.</li>
<li>The first half of 2022 saw a steep decline in net income, which stood at -$48.94 million.</li>
<li>The situation did not improve by the end of 2022, as the company reported its net income to be -$52.63 million.</li>
<li>As of the most recent data point on June 30, 2023, the net income has further deteriorated to -$68.37 million.</li>
</ul>
Overall, the growth rate from the first value to the last suggests a significant increase in the losses. From -$14.33 million in December 2020 to -$68.37 million in June 2023, this denotes a substantial decline for FLGC in the reporting period.
<img src="https://storage.googleapis.com/sjn-charts/visualized-metrics/1694089696.11724.png" />
The Gross Margin of FLGC has seen a varied trend with noticeable fluctuations between 2020 to 2023. Below is a summary of this data:
<ul>
<li>December 31, 2020: The gross margin is at 67%.</li>
<li>December 31, 2021: There is a significant drop in gross margin to 27%, demonstrating a major dip in the company's performance.</li>
<li>June 30, 2022: A recovery is seen midway through 2022 as the gross margin increases to 36.5%.</li>
<li>December 31, 2022: Further progress is evident by the end of 2022, with the gross margin rounding off at 38.8%.</li>
<li>June 30, 2023: Surprisingly, there is another decline in gross margin to 27.1%. The most recent values from 2022 reveal an improvement in gross margin as it rises from 27% in 2021 to 38.8% before facing a subsequent decrease in mid-2023.</li>
</ul>
From the given data and calculated growth rate, the gross margin of FLGC drops from its initial value of 67% to 27.1% by June 2023, indicating an overall negative trajectory. Please note that these values and trends are based on the data provided and should be validated using updated financial statements.
<img src="https://storage.googleapis.com/sjn-charts/visualized-metrics/1694089762.70623.png" />
The <a href="https://www.investopedia.com/terms/r/returnonassets.asp">Return on Assets (ROA)</a> trend for FLGC, has shown notable fluctuations in the recent years:
<ul>
<li>Starting at a ROA of -0.41 on December 31, 2021.</li>
<li>The reported ROA demonstrated a significant decline, recording a value of -0.89 on June 30, 2022.</li>
<li>By the end of 2022 (December 31), the ROA rebounded slightly to -0.63.</li>
<li>However, the last recorded value in the series is -1.04 on June 30, 2023, which indicates the lowest value in the series and hence a downward trend.</li>
</ul>
The growth (decline, in this case) rate during this period from December 31, 2021, to June 30, 2023, was calculated as approximately 155%, indicating a larger negative growth in the reported ROA over time. The emphasis on more recent data suggests a continuing trend of declining ROA for FLGC, with a significant drop in the first half of 2023. Observing if this key financial performance metric shows any signs of improvement moving forward will be interesting.
<img src="https://storage.googleapis.com/sjn-charts/visualized-metrics/1694089794.2159.png" />
The Current Ratio of FLGC indicates substantial fluctuations over the provided timeline.
<ul>
<li>On December 31, 2020, the current ratio was 6.43.</li>
<li>By June 30, 2021, it decreased to 4.11, marking a notable decrease in liquidity.</li>
<li>The ratio saw an upward spike to 7.83 on December 31, 2021.</li>
<li>However, in 2022, the current ratio experienced a significant downtrend, falling to 3.18 by June 30. By the end of the year (December 31, 2022), it plummeted further to 1.79.</li>
<li>In the first quarter of 2023 (March 31), it slightly increased to 1.80, but by the end of the second quarter (June 30, 2023), it slumped to 1.25, the lowest point in the examined period.</li>
</ul>
Emphasizing more recent data, it seems that FLGC's current ratio has been facing a steady decline since the end of 2021. Comparing the first value (6.43 on December 31, 2020) to the last (1.25 on June 30, 2023), you can calculate a growth rate of -80.58%. This significant decrease in the current ratio potentially points to deteriorating liquidity and short-term debt-paying ability of FLGC.
<img src="https://storage.googleapis.com/sjn-charts/visualized-metrics/1694089822.68545.png" />
FLGC's Share Price: A Rollercoaster Ride from Sharp Decline to Rapid Recovery
Examining the given data about FLGC's share price from March to September 2023, a general decreasing trend can be observed. However, there is a noticeable increase in September:
<ul>
<li>The share price starts at $6.65 on March 17, 2023, and generally decreases over the next several months. There are a few weeks where it experiences a slight recovery, but overall, the trend is downward.</li>
<li>By June 30, 2023, the price had decreased significantly to $2.65, which is nearly a 60% drop over the course of approximately 3.5 months.</li>
<li>In July and August, the prices continue to fluctuate between $2.4 and $2.80 with no clear increasing or decreasing trend.</li>
<li>Starting from late August, a rapid recovery can be noted. The share price increased from $2.14 on August 25, 2023 to $3.99 on September 6, 2023.</li>
</ul>
To conclude, FLGC experienced a consistent price decrease for a period of time, followed by a period of stability and then a quick rebound at the end of the data series. While it's difficult to determine the exact growth rate over this period due to the fluctuations in the data, the trend shows a deceleration in the price decrease around late June and, after that, an acceleration in the price increase at the beginning of September. Here is a chart of FLGC's price over the past 180 days.
<img src="https://storage.googleapis.com/sjn-charts/visualized-metrics/1694089975.07977.png" />
Analyzing FLGC's POWR Ratings: Evolution of Sentiment, Value, and Quality
FLGC has an overall D rating, translating to a Sell in our <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> system. It is ranked #18 out of the 27 stocks in the <a href="https://stocknews.com/category/agriculture/">Agriculture</a> category.
The POWR Grade of FLGC in the Agriculture category of stocks has seen some changes over the past weeks.
Here's a summary of its recent performance:
<ul>
<li>On June 17, 2023, it had a POWR grade of D and was ranked 18.</li>
<li>On June 24 and July 1, 2023, it improved slightly to a POWR grade of C, climbing to a superior rank of 17 in the category.</li>
<li>However, on July 8, 2023, it decreased to a D again and remained at rank 17.</li>
<li>Throughout mid to late July, its POWR grade fluctuated between C and D. The rank improved to 16, then slipped back to 18.</li>
<li>Similar fluctuations continued through August, where it opened at a D on August 5, improved to a C by August 19, and maintained this grade up until August 26, 2023. Its rank in the category remained at 16 when the grade was C and 18 when it dropped to D.</li>
<li>As of the latest data available on September 6, 2023, the POWR grade stands at D, and its rank in the category is 18.</li>
</ul>
Overall, FLGC's POWR grade has been alternating between C and D, and its rank in the Agriculture category has similarly varied slightly, with lower rank values indicating better placement.
The three most noteworthy dimensions for the POWR Ratings for FLGC are Sentiment, Value, and Quality from June 17, 2023 to September 6, 2023.
<ul>
<li>Sentiment seems to be the dimension with the highest ratings for FLGC. On June 17, 2023, the Sentiment dimension had a value of 90. The highest value recorded was on July 22, 2023, boasting a score of 99. However, towards September 2023, there appears to be a significant drop. By September 6, 2023, the sentiment dimension rating had plummeted to 21. This shows a clear declining trend in the sentiment rating over time.</li>
<li>Value is the second most noteworthy dimension. Initially, at 22 on June 17, 2023, this dimension saw a slight increase through the months, hitting its peak of 65 on August 19, 2023. However, just like the sentiment dimension, the value rating also experienced a dip, finally ending at 50 by September 6, 2023. This does not show any prominent trend but keeps fluctuating during this period.</li>
<li>Lastly, Quality, which began at a value of 28 on June 17, 2023, remained fairly unchanged till July 22, 2023. Post which, the quality score started increasing, peaking at 37 on August 19, 2023. From August to September 2023, the quality score was steady around the mid-30s, suggesting a stable trend throughout the period.</li>
</ul>
These observations provide an insight into the trends and notable changes in the various dimensions of FLGC's POWR Ratings over the span of nearly three months.
<img src="https://storage.googleapis.com/sjn-charts/visualized-metrics/1694090063.58583.png" />
Stocks to Consider Instead of Flora Growth Corp (FLGC) 
Other stocks in the Agriculture sector that may be worth considering are MariMed Inc. (<a href="https://stocknews.com/stock/MRMD/">MRMD</a>), AGCO Corporation (<a href="https://stocknews.com/stock/AGCO">AGCO</a>), and Golden Agri-Resources Ltd (<a href="https://stocknews.com/stock/GARPY">GARPY</a>) -- they have better POWR Ratings.
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<hr />
FLGC shares were trading at $3.61 per share on Thursday morning, down $0.21 (-5.50%). Year-to-date, FLGC has declined -20.69%, versus a 16.99% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Subhasree Kar</h2> <img src='https:/wp-content/uploads/2021/06/Subhasree-Kar-HS2.jpg' style="float:left; padding:5px;width:125px;">Subhasree's keen interest in financial instruments led her to pursue a career as an investment analyst. After earning a Master's degree in Economics, she gained knowledge of equity research and portfolio management at Finlatics.<a href="https://stocknews.com/authors/?author=subhasree-kar">More...</a>The post <a href=https://stocknews.com/news/flgc-mrmd-agco-garpy-is-flora-growth-flgc-a-good-agriculture-stock-buy-right/>Is Flora Growth (FLGC) a Good Agriculture Stock Buy Right Now?</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>