Where Will Aurora Cannabis Be in 5 Years?
The last five years have been downright brutal for the cannabis industry. Pick a cannabis stock and you'll likely find a horrible investment to own during that stretch. Aurora Cannabis (NASDAQ: ACB) has gone from being a promising growth stock to an ultra-risky investment.
However, the good news is that with the company focusing more on cutting costs and becoming leaner, and now also expecting to generate positive free cash flow, its future may actually be getting brighter. Here's what may happen with the business over the next five years.
One of the ways Aurora Cannabis has been strengthening its business is by focusing on medical-marijuana products. It's a good way to improve its margins and not get into a race to the bottom with other consumer-cannabis producers. CEO Miguel Martin credits its high-margin cannabis business for helping Aurora post a positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) profit for four consecutive quarters. Martin also highlighted record-revenue numbers in Europe and Australia last quarter.
Source Fool.com
