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Auxly Cannabis Group (XLY) Fair Value & Analysis

Healthcare · CA · Market cap C$244M

AC Auxly Cannabis Group XLY · TO
PriceC$2.85
Fair ValueC$0.4100
Upside-85.6%
Quality59/100
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Mixed Growth
Highly profitable · 20.9% net margin
Low debt · generates free cash flow
Ranks above peers (10/13)
Moderate moat 64/100
Evidence: High Range C$0.2300 – C$0.5200 Share as image

Fair value as of: Jul 31, 2026

From 24 valuation models · updated 10 days ago

Share price +1,483.3% over the past month.

A solid business, but screening 86% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (C$0.5200). The favourable scenario is already priced in.
  • Solid but not exceptional quality (59/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (C$0.2300 to C$0.5200) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

C$2.85 C$0.0100 Fair Value C$0.4100 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 31, 2026.

How to read this chart

60‑month range C$0.0100 – C$2.85 · fair‑value band C$0.2300 – C$0.5200 · the C$2.85 price screens above the C$0.4100 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 31, 2026.

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Analysis

Auxly Cannabis Group (XLY) currently trades at C$2.85, while our model-based Fair Value estimate is C$0.4100, implying the stock looks roughly 85.6% overvalued today. The Quality Score stands at 59/100 (solid quality), in the Healthcare sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Auxly Cannabis Group generated revenue of C$159M at a net margin of 20.9%. Revenue grew 21.7% year over year. It earns a return on equity of 21.3%. Net debt stands at C$25.1M. Fundamentals as of Jul 31, 2026

Our scenario range runs from C$0.2300 (bear case) to C$0.5200 (bull case); at C$2.85, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Healthcare peers we cover trades at -49% fair-value upside, at -86%, XLY screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Note: the current price implies far more future growth than the conservative anchors of our models allow (base growth is deliberately capped, we do not regard such extreme rates as sustainable). Our models are not designed for expectations this high; that is why the individual models scatter extremely (C$0.0800 to C$1.38). Read the values as a conservative anchor, not as a price target.
Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF C$0.1800 C$0.2900 C$0.4600 80
Rev-Margin DCF C$0.2300 C$0.4200 C$0.8100 74
ROIC Compounder C$0.1600 C$0.2000 C$0.2400 72
All 24 models by family
DCF Models
FCF DCF C$0.1900 C$0.2700 C$0.4900 38
Owner Earnings C$0.3900 C$0.7700 C$1.43 31
5Y Revenue Exit C$0.2100 C$0.3600 C$0.7000 39
5Y EBITDA Exit C$0.2700 C$0.5000 C$0.9400 41
5Y P/E Exit C$0.3700 C$0.8900 C$1.59 38
10Y Revenue Exit C$0.1900 C$0.4200 C$0.5700 36
10Y EBITDA Exit C$0.2400 C$0.5400 C$1.08 37
10Y P/E Exit C$0.3000 C$0.7300 C$1.45 35
Earnings-Based
Graham-Dodd C$0.2000 C$1.38 C$1.94 54
Lynch FV C$0.7200 C$1.02 C$1.33 50
PEG = 1.0 C$0.7200 C$1.02 C$1.33 46
EPV C$0.1400 C$0.1600 C$0.1700 59
Multiples
P/E Multiple C$0.4800 C$0.6400 C$0.8000 63
P/S Multiple C$0.2800 C$0.3700 C$0.4600 58
P/B Multiple C$0.3700 C$0.5000 C$0.6200 55
EV/EBIT C$0.2900 C$0.3800 C$0.4800 53
EV/EBITDA C$0.3200 C$0.4300 C$0.5300 54
EV/Revenue C$0.2000 C$0.2900 C$0.3800 43
Asset-Based
NCAV (Graham) C$0.0600 C$0.0800 C$0.1200 50
Growth DCF
Growth DCF C$0.1800 C$0.2900 C$0.4600 80
Rev-Margin DCF C$0.2300 C$0.4200 C$0.8100 74
Economic Profit
Residual Income C$0.1500 C$0.2000 C$0.7200 61
ROIC Compounder C$0.1600 C$0.2000 C$0.2400 72
Growth Earnings
Growth-Adj P/E C$0.9500 C$1.36 C$1.76 68

Widest divergence: Growth Earnings (C$1.36) versus Asset-Based (C$0.0800). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) C$159M
Revenue growth (YoY) +21.7%
Net margin 20.9%
Return on equity 21.3%
Free cash flow C$23.4M FY2025
P/E ratio 8.0
More key figures
Operating margin 11.8%
EPS (TTM) C$0.0200
EPS growth (YoY) -76.7%
Net debt C$25.1M FY2025

Figures from reported company fundamentals · as of Jul 31, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 59/100

Of which business quality 58 · Market factors (momentum, volatility) 77

Profitability 73
Margins and returns on capital today
Quality Growth 98
Are margins and returns improving?
Cashflow 58
Earnings quality: real cash, not paper profit
Fin. Strength 48
Balance sheet, leverage, solvency risk
Investment 67
Disciplined investing over empire-building
Low Volatility 23
Calm price path (market factor)
Momentum 100
Price trend over the last 3–12 months (market factor)
52W Momentum 100
Distance to the 52-week high (market factor)
Net Issuance 0
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Auxly Cannabis Group Inc. operates as a consumer-packaged goods company in the cannabis products market in Canada. The company offers dried and fresh cannabis, plants, seeds, and oils; and edibles, extracts, and topicals under the KOLAB PROJECT, Dosecann, BACK FORTY, Foray, and Parcel brand names.

Full company description

Auxly Cannabis Group Inc. operates as a consumer-packaged goods company in the cannabis products market in Canada. The company offers dried and fresh cannabis, plants, seeds, and oils; and edibles, extracts, and topicals under the KOLAB PROJECT, Dosecann, BACK FORTY, Foray, and Parcel brand names. It sells its products through supply arrangements with provincial control boards and distributors, medical cannabis sales channels, and retailers, as well as to authorized wholesalers. The company was formerly known as Cannabis Wheaton Income Corp. and changed its name to Auxly Cannabis Group Inc. in June 2018. Auxly Cannabis Group Inc. was incorporated in 1987 and is headquartered in Toronto, Canada.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Auxly Cannabis Group reported revenue of C$151M in FY2025 versus C$83.8M in FY2021, a compound +15.9%/yr. Reported net income was C$41.9M in FY2025.

Growth Quality 92/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
C$151M
Latest YoY
+23.8%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+17.0%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+26.5%
Avg. growth/yr (28Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+96.0%
Revenue +15.9%/yr
FY21 C$83.8M
FY22 C$94.5M
FY23 C$101M
FY24 C$122M
FY25 C$151M
Net income
FY21 −C$33.7M
FY22 −C$130M
FY23 −C$44.5M
FY24 −C$16.3M
FY25 C$41.9M

XLY screens 86% overvalued. Compare with Jiangsu Hengrui Pharmaceuticals Co →

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Cite: Fair Value Calculator (2026). "Auxly Cannabis Group Fair Value". https://www.fairvalue-calculator.com/stock/XLY

Peer Group

Drug Manufacturers - Specialty & Generic · 623 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 59 · Above median
Fair Value upside −86% · Bottom 25%
Return on equity (TTM) 21% · Top 25%
Return on assets 7% · Top 25%
Net margin (TTM) 21% · Top 25%
Operating margin (TTM) 12% · Above median
Revenue growth 22% · Top 25%
Debt / equity 0.23× · Higher than median

Valuation Multiples vs Drug Manufacturers - Specialty & Generic median · lower = cheaper

P/E (TTM) 8.5× · Cheaper than 75% of peers
P/B 0.98× · Cheaper than median
P/S (TTM) 1.10× · Cheaper than median
P/FCF 7.5× · Pricier than median
EV/EBITDA 4.3× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 6
FUTURE 100 · sector 20
PAST 85 · sector 24
HEALTH 89 · sector 97
DIVIDEND 0 · sector 34

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Drug Manufacturers - Specialty & Generic stocks, each showing price versus our Fair Value estimate (as of Jul 31, 2026).

Stock Price Fair Value vs Fair Value
Jiangsu Hengrui Pharmaceuticals Co 600276 ¥53.19 ¥25.94 -51%
Sun Pharmaceutical Industries Limited SUNPHARMA ₹1,933 ₹989.50 -49%
Divi's Laboratories Limited DIVISLAB ₹7,316 ₹1,943 -73%
Torrent Pharmaceuticals Limited TORNTPHARM ₹4,763 ₹1,329 -72%
PharmaEssentia Corporation 6446 1,285 TWD 221.01 TWD -83%
Cipla Limited CIPLA ₹1,439 ₹1,001 -30%
Zydus Lifesciences Limited ZYDUSLIFE ₹1,151 ₹703.32 -39%
Lupin Limited LUPIN ₹2,443 ₹2,477 +1%
Mankind Pharma Limited MANKIND ₹2,484 ₹983.11 -60%
Dr. Reddy's Laboratories Limited DRREDDY ₹1,211 ₹874.79 -28%

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Frequently asked questions

Is Auxly Cannabis Group (XLY) overvalued or undervalued?
As of Jul 31, 2026, our model estimates a fair value of C$0.4100 versus a price of C$2.85, about −86% (overvalued).
What is the fair value of XLY?
Our model-based fair value for Auxly Cannabis Group is C$0.4100 (as of Jul 31, 2026), built from audited fundamentals. The current price is C$2.85.
What is the quality score of XLY?
Auxly Cannabis Group has a Quality Score of 59/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Auxly Cannabis Group (XLY)?
Auxly Cannabis Group reported trailing-twelve-month revenue of about C$159M (latest available figure, as of Jul 31, 2026).
What is the net profit margin of XLY?
The net profit margin of Auxly Cannabis Group is about 20.9%, meaning it keeps roughly 20.9% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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