Aurora Cannabis Inc
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
CAD 75.00 | Zyzr | Zypvb |
Aurora: Ratings Unaffected by CFO Change or Share Consolidation, but We Are Reducing FVE on MedReleaf Deal
On Feb. 20, no-moat Aurora completed a previously announced 1-for-10 reverse split of its shares to keep its Nasdaq listing. This move has no effect on Aurora's intrinsic value, but this isn't the first time it was forced to consolidate shares, underlining the significant dilution risk. Separately, the company announced that Simona King would replace Glen Ibbott as chief financial officer, effective Feb. 21. The change seems sudden, although King's decades of experience in corporate finance seem adequate for the position. Still, it doesn't alter our Poor Capital Allocation Rating for Aurora.