Cannara Biotech (TSX:LOVE) ROE %: 5.75% (As of Feb. 2026) — 2030% Above Median


TSX:LOVE Cannara Biotech Inc TSX:LOVE
92 GF Score
Price C$1.68
GF Value C$1.68
Valuation Fairly Valued
! 4 Warning Signs
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What is Cannara Biotech ROE %?

Cannara Biotech TSX:LOVE +5.00% 92 ROE % is 5.75% as of Feb. 2026, which is 2030% above its 10-year median of 0.27. GuruFocus rates TSX:LOVE with a GF Score™ of 92/100 and a GF Value™ of C$1.68 (Fairly Valued). The stock has 4 warning signs investors should review. Among 936 Drug Manufacturers companies, Cannara Biotech ranks better than 63.35% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Cannara Biotech's annualized net income for the quarter that ended in Feb. 2026 was C$6.7 Mil. Cannara Biotech's average Total Stockholders Equity over the quarter that ended in Feb. 2026 was C$115.7 Mil. Therefore, Cannara Biotech's annualized ROE % for the quarter that ended in Feb. 2026 was 5.75%.

The historical rank and industry rank for Cannara Biotech's ROE % or its related term are showing as below:

TSX:LOVE' s ROE % Range Over the Past 10 Years
Min: -39.79   Med: 0.27   Max: 13.75
Current: 9.65

During the past 8 years, Cannara Biotech's highest ROE % was 13.75%. The lowest was -39.79%. And the median was 0.27%.

TSX:LOVE's ROE % is ranked better than
63.35% of 936 companies
in the Drug Manufacturers industry
Industry Median: 5.865 vs TSX:LOVE: 9.65

Cannara Biotech  (TSX:LOVE) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Feb. 2026 )
=Net Income/Total Stockholders Equity
=6.652/115.7115
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(6.652 / 108.716)*(108.716 / 177.8255)*(177.8255 / 115.7115)
=Net Margin %*Asset Turnover*Equity Multiplier
=6.12 %*0.6114*1.5368
=ROA %*Equity Multiplier
=3.74 %*1.5368
=5.75 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Feb. 2026 )
=Net Income/Total Stockholders Equity
=6.652/115.7115
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (6.652 / 11.28) * (11.28 / 13.604) * (13.604 / 108.716) * (108.716 / 177.8255) * (177.8255 / 115.7115)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.5897 * 0.8292 * 12.51 % * 0.6114 * 1.5368
=5.75 %

Note: The net income data used here is four times the quarterly (Feb. 2026) net income data. The Revenue data used here is four times the quarterly (Feb. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Cannara Biotech ROE % Related Terms


Cannara Biotech ROE % Historical Data

* Premium members only.

The historical data trend for Cannara Biotech's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Cannara Biotech ROE % Chart

Cannara Biotech Annual Data
Trend Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24 Aug25
ROE %
Get a 7-Day Free Trial -2.98 3.52 9.48 7.68 13.75

Cannara Biotech Quarterly Data
May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25 May25 Aug25 Nov25 Feb26
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.35 17.19 13.20 3.90 5.75

TSX:LOVE vs ZTS: ROE % Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Cannara Biotech's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Cannara Biotech ROE % vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Cannara Biotech's ROE % distribution charts can be found below:

* The bar in red indicates where Cannara Biotech's ROE % falls into.


TSX:LOVE
92GF Score
Cannara Biotech Inc TSX:LOVE
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Cannara Biotech ROE % Calculation

Cannara Biotech's annualized ROE % for the fiscal year that ended in Aug. 2025 is calculated as

ROE %=Net Income (A: Aug. 2025 )/( (Total Stockholders Equity (A: Aug. 2024 )+Total Stockholders Equity (A: Aug. 2025 ))/ count )
=13.076/( (87.951+102.221)/ 2 )
=13.076/95.086
=13.75 %

Cannara Biotech's annualized ROE % for the quarter that ended in Feb. 2026 is calculated as

ROE %=Net Income (Q: Feb. 2026 )/( (Total Stockholders Equity (Q: Nov. 2025 )+Total Stockholders Equity (Q: Feb. 2026 ))/ count )
=6.652/( (111.214+120.209)/ 2 )
=6.652/115.7115
=5.75 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Feb. 2026) net income data. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 5.75% mean?
Cannara Biotech (TSX:LOVE) has a ROE % of 5.75% as of Feb. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Cannara Biotech and its competitors. This is 2030% above median its historical median of 0.27. According to the industry distribution chart, Cannara Biotech ranks #343 out of 936 companies in the Drug Manufacturers industry, placing it in the top 36.6%.
Is Cannara Biotech's ROE % too high?
Cannara Biotech's current ROE % of 5.75% is 2030% above median its 10-year median of 0.27. The Drug Manufacturers industry median ROE % is 5.87. Cannara Biotech's value of 5.75% is 2% below this industry median. Based on the distribution chart, Cannara Biotech ranks #343 out of 936 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Cannara Biotech has a GF Score™ of 92/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Cannara Biotech's ROE % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Cannara Biotech ranks #343 out of 936 companies for ROE %. This puts Cannara Biotech in the upper half of its industry. The industry median ROE % is 5.87. Cannara Biotech's value of 5.75% is 2% below this benchmark. While the company's 10-year median is 0.27 vs. the industry median of 5.87, Cannara Biotech has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Drug Manufacturers company?
The median ROE % among Drug Manufacturers companies is 5.87, based on 936 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cannara Biotech's current ROE % of 5.75% is 2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Cannara Biotech and its competitors. For the Drug Manufacturers industry, the median ROE % is 5.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cannara Biotech's current ROE % is 5.75%, which is 2030% above median its own 10-year median of 0.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cannara Biotech stock overvalued right now?
Based on GuruFocus' analysis, Cannara Biotech (TSX:LOVE) is currently considered Fairly Valued. The stock's GF Value™ is C$1.68, compared to a current price of C$1.68 — trading right at its estimated fair value. The current ROE % is 5.75%, which is 2030% above median its 10-year median of 0.27 and 2% below the Drug Manufacturers industry median of 5.87. Cannara Biotech's overall GF Score™ is 92/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Cannara Biotech (TSX:LOVE), the current ROE % is 5.75% as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Cannara Biotech (TSX:LOVE) Overvalued in 2026?

Based on GuruFocus' analysis, Cannara Biotech stock appears to be undervalued. The current stock price of C$1.68 is trading 0% below its estimated GF Value™ of C$1.68. GuruFocus considers Cannara Biotech to be Fairly Valued.

Key valuation signals for TSX:LOVE:

  • ROE %: 5.75% (2030% above median its 10-year median of 0.27)
  • GF Value™: C$1.68 vs. price of C$1.68 (0% below fair value)
  • GF Score™: 92/100 with 4 warning signs
  • Industry Position: 2% below the Drug Manufacturers median (#343 of 936)

No single metric tells the full story. See the TSX:LOVE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Cannara Biotech Business Description

Other Exchanges LOVFF:USA8CB0:Germany
Address 1055 West Georgia Street, Suite 2050, Vancouver, BC, CAN, V6E 3P3
Cannara Biotech Inc is a vertically integrated producer of premium-grade cannabis and cannabis-derivative products for Canadian markets. The company owns two mega Quebec-based facilities. The company operates in in two segments; Indoor cannabis operations segment which includes the cultivation, processing and sale of dried cannabis and cannabis derivatives for the Canadian market and the Real estate operations segment related to the Farnham and Valleyfield building. Majority of the revenue for the company is generated from its Cannabis operations segment. .
92GF Score

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ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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