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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#1448
Positioning
Market Dominance
Manufacturing
Pharmaceutical Products
$1.1B
Michael R. Gorenstein
Cronos Group Inc. operates as a cannabinoid company. It manufactures, markets, and distributes hemp-derived supplements and cosmetic products. The company is also involved in the cultivation, manufacture, and marketing of cannabis and cannabis-derived products for medical and adult-use markets.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = CRON ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 32.9% | 20.5% | 48.8% | 30.6% | 24.4% | 7.7% | 0.9% | 32.0x | $148.6B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.4% | 7.5% | 68.3% | 19.5% | 18.2% | 29.0% | 0.0% | 0.0x | $84M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CRON Cronos Group Inc. | 54 | 45 | 60 | 60 | 211.6x | 14.2x | 0.4% | 0.4% | 36.7% | -32.0% | 2.1% | 30.9% | 0.0% | 4.0x | $1.1B | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -1.9% | 0.9% | 44.1% | 2.5% | 1.0% | 6.7% | 0.0% | 0.2x | - | REF |
Cronos Group Inc. (CRON) receives a "Hold" rating with a composite score of 53.6/100. It ranks #1448 out of 7,333 stocks in our coverage universe and carries a 3-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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In-line with peers — no strong momentum signal
Trading at a discount to fundamentals — favorable entry valuation
Average quality profile
Low volatility — smoother ride and historically better risk-adjusted returns
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for CRON.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 45 | 35 | +10ALPHA |
| MOMENTUM | 60 | 59 | +1NEUTRAL |
| VALUATION | 60 | 52 | +8ALPHA |
| INVESTMENT | 34 | 57 | -23DRAG |
| STABILITY | 79 | 83 | -4NEUTRAL |
| SHORT INT | 77 | 88 | -11DRAG |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROE proxy 0.4% (sector -1.9%)
GM 37% vs sector 44%, OM -32% vs sector 3%
Capital turnover N/A, R&D intensity 3.0%
Rev growth 31%, 9yr history
Interest coverage N/A
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate Cronos Group Inc. (CRON) as a Hold with a composite score of 53.6/100 at a current price of $2.75. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling.
Cronos Group Inc. holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 53.6/100 places it at rank #1448 in our full universe.
No Moat
Low
Standard
Undervalued
Stable competitive position in a defensive sector.
Elevated P/E ratio of 211.6x leaves little room for execution misses.
Vulnerability to macroeconomic shocks and interest rate volatility.
Cronos Group Inc. represents a hold based on multi-factor quantitative performance.
Our model assigns Cronos Group Inc. a Hold rating, with a composite score of 53.6/100 and 3 out of 5 stars. Ranked #1448 of 7,333 stocks, CRON presents a mixed quantitative picture — neither compelling enough to initiate new positions nor weak enough to warrant selling. Investors already holding may consider maintaining their position while monitoring for changes in the factor profile.
With a quality score of 45/100, CRON shows adequate but unremarkable business quality. The company reports a return on equity of 0.4% (sector avg: -1.9%), gross margins of 36.7% (sector avg: 44.1%), net margins of 2.1% (sector avg: 1.0%). This suggests the company generates acceptable returns but may lack the competitive positioning or operational efficiency to stand out from peers.
CRON's value score of 60/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 211.59x, an EV/EBITDA of 14.16x, a P/B ratio of 0.91x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
Cronos Group Inc.'s investment score of 34/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 30.9% vs. a sector average of 6.7% and a return on assets of 0.4% (sector: 0.9%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
CRON demonstrates moderate momentum with a score of 60/100, suggesting a neutral price trend without strong directional conviction. Revenue growth stands at 30.9% year-over-year, while a beta of 0.68 reflects its sensitivity to broader market moves. Moderate momentum may indicate the stock is consolidating or transitioning between trends, warranting close monitoring of upcoming catalysts.
CRON shows good financial stability with a score of 79/100. Key stability metrics include a beta of 0.68 and a debt-to-equity ratio of 4.00x (sector avg: 0.2x). This suggests manageable leverage and moderate price volatility, making it appropriate for investors seeking a balance between growth potential and capital preservation.
CRON carries a short interest score of 77/100, indicating moderate short selling activity. This is a neutral reading — not enough to signal systemic bearishness, but worth monitoring. Specific risk factors include elevated leverage (D/E: 4.00x), small-cap liquidity risk. At $1.1B market cap (small-cap), Cronos Group Inc. offers reasonable institutional liquidity.
Cronos Group Inc. is a small-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #1448 of 7,333 overall (80th percentile). Key comparisons include ROE of 0.4% exceeding the -1.9% sector median and operating margins of -32.0% below the 2.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While CRON currently exhibits a HOLD profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Manufacturing Alpha →Quant Factor Profile
Key factor gap
Stability (79) vs Investment (34) — closing this gap could shift the rating.
EV/EBITDA 24% ABOVE SECTOR MEDIAN
ROE 123% BELOW SECTOR MEDIAN
Gross Margin 17% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081

Cronos Group is acquiring CanAdelaar, the largest cannabis company in the Netherlands' adult-use cannabis pilot program, for $67 million upfront, with potential additional earnouts. The acquisition provides Cronos strategic entry into the European cannabis market and establishes a market leadership position.
Spinach PUFFERZ™ delivers a flavorful experience combining high-quality cannabis with a sleek tactile design, enhanced with liquid diamonds Spinach PUFFERZ™ Spinach PUFFERZ™ Pineapple Coconut (Indica), Spinach PUFFERZ™ Sour Blue Razz (Hybrid), Spinach PUFFERZ™ Tropical AF (Sativa) TORONTO, Feb. 17, 2026 (GLOBE NEWSWIRE) -- Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) (“Cronos”), an innovative global cannabinoid company, announced today the launch of its newest all-in-one (AIO) vape, Spinach PUFF

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