Streetbeat News

JAPAF

Japan Tobacco Inc.

https://www.jti.co.jp/

CEO

Masamichi Terabatake

Industry

Tobacco Manufacturing

Open

27.00

Mkt cap

48B

Volume

100

High

27.00

P/E Ratio

15.52

52-wk high

30.25

Low

27.00

Div yield

0.05

52-wk low

24.21

A study by Viridian Capital Advisors reveals that the cannabis industry requires more capital than other similar sectors. The research compared the capital needs of the cannabis industry against potential acquirer sectors in the event of federal legalization. These sectors include tobacco, alcoholic beverages, pharmaceuticals, and consumer products. The study found that the cannabis industry's capital intensity is high due to federal restrictions on interstate commerce. However, federal legalization could reduce operational costs and eliminate redundancy, potentially easing the capital crunch.

Portfolio Pulse from Joana Scopel

August 29, 2023 | 7:46 pm

A chart by Viridian Capital shows that the cannabis industry is the most capital-intensive compared to tobacco, alcoholic beverages, pharmaceuticals, and consumer products industries. The capital intensity is measured by the next twelve-month consensus revenue estimates divided by aggregate capital employed. The chart includes nine cannabis companies with market caps over $100M, and several companies from the other industries. The high capital intensity of the cannabis industry is attributed to federal illegality, which forces companies to maintain duplicate managerial and operations functions.

Portfolio Pulse from Viridian Capital Advisors

August 28, 2023 | 5:10 pm

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