Cannabis Chart Of The Week: Are There Good Values Among Canadian Cannabis Companies?
Portfolio Pulse from Viridian Capital Advisors
The article discusses the valuation and credit of eighteen U.S. and Canadian cannabis companies with market caps between $20M and $100M. Five of the top-ranked companies by credit quality are Canadian. Avant Brands (OTC:AVTBF), Rubicon Organics (OTC:ROMJF), High Tide (NASDAQ:HITI), and Decibel Cannabis (OTC:DBCCF) are highlighted for their credit quality, liquidity, and leverage. The article suggests that these companies may be good investment opportunities.
July 24, 2023 | 4:44 pm
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POSITIVE IMPACT
Avant Brands ranks as the top credit quality company in the group, with excellent liquidity and low leverage. However, it is priced for growth with a high enterprise value to annualized sales ratio.
The company's strong credit quality, liquidity, and low leverage make it an attractive investment. However, its high valuation may be a concern for some investors.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Decibel Cannabis ranks as the seventh strongest credit of the group and has been gaining market share. Its solid profitability and positive cash flow make it an attractive investment.
The company's strong credit, market share gains, profitability, and positive cash flow make it an attractive investment.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
High Tide trades at .3x annualized revenues and 4.0x annualized adjusted revenues. However, its thin EBITDA margins and low liquidity may be concerns.
The company's low trading multiples make it an attractive investment. However, its thin EBITDA margins and low liquidity may be concerns for some investors.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Rubicon Organics has strong liquidity, low leverage, and is priced at only .9x annualized sales. However, its profitability ranking and minimal size may be concerns.
The company's strong liquidity and low leverage make it an attractive investment. However, its profitability and size may be concerns for some investors.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80