Auxly Cannabis Group stock has been on a tear, with a 90 day gain of about 56% into today’s close at CA$3.05. The market has been pricing in a story. The Q2 print confirms one headline for you. Auxly is now throwing off record cannabis revenues of CA$45.8m and converting a meaningful slice of that into profit and cash, with a trailing net profit margin close to 20%.

The short term move is eye catching. The real question for investors is whether these margins and cash generation can hold over the next few years as forecasts point to pressure on earnings.

Is Auxly Cannabis Group stock genuinely cheap at a 9.5x P/E, or do the earnings forecasts and one off gain tell a different story? Compare that market narrative with the detailed