Thursday , 26 April 2018


These 4 Marijuana Stocks Expected To Generate Significant EBITDA Growth Over Coming Year

As recreational legalization in Canada approaches this summer, the 4 marijuana stocks on ourmarijuana2 list today have plans to meet the upcoming demand. If the marijuana sector continues its rally, these stocks…are expected to generate significant EBITDA growth over the coming year.

The original article has been edited here for length (…) and clarity ([ ]) to provide a fast & easy read.

1. CannTrust Holdings Inc. (TSX:TRST)
Pharmaceuticals

CannTrust is a Canada-based licensed producer of medical cannabis. The Company’s products are sold online and delivered to registered patients. CannTrust’s 50,000 square foot production facility, located in Vaughan, Ontario, uses hydroponic technology to produce at an annual capacity of 3,600 KG. Furthermore, CannTrust has set aside a 46-acre property, where it plans to ramp up production capacity with a 430,000-square foot expansion.

  • Market Cap: $636.7 Million
  • 1 Month Total Return: 6.0%
  • 3 Month Total Return: 25.9%
  • EBITDA Growth – Next Year/This Year: 2554.5%
  • Peer Average EBITDA Growth – Next Year/This Year: 488.1%

2. MedReleaf Corp. (TSX:LEAF)
Pharmaceuticals

MedReleaf is a licensed producer of medical marijuana under the ACMPR. MedReleaf currently produces 7,000 KG/year out of a 55,000 sq. ft. facility in Markham. The Company started to produce 5,600 KG/year out of a 210,000 sq. ft. facility in Bradford in October. The Company plans to expand its Bradford facility to reach 28,000 KG/year from it by August 2018. The Company has partnered with Shoppers Drug Mart to sell medical marijuana.

  • Market Cap: $1,570.0 Million
  • 1 Month Total Return: 26.4%
  • 3 Month Total Return: 26.1%
  • EBITDA Growth – Next Year/This Year: 1487.6%
  • Peer Average EBITDA Growth – Next Year/This Year: 488.1%

3. Hydropothecary Corp. (TSXV:THCX)
Pharmaceuticals

Hydropothecary is a licensed producer and distributor of medical marijuana under the Access to Cannabis for Medical Purposes Regulations (ACMPR). With an operational 50,000 square foot facility, Hydropothercary also aims to scale up 250,000-square feet with an expansion that is expected to come online by Q2/2018. Hydropothecary closed a $69M offering of convertible debentures in November to fund its expansion plans.

  • Market Cap: $651.0 Million
  • 1 Month Total Return: 7.1%
  • 3 Month Total Return: 35.3%
  • EBITDA Growth – Next Year/This Year: 831.3%
  • Peer Average EBITDA Growth – Next Year/This Year: 488.1%

4. Aphria Inc. (TSX:APH)
Pharmaceuticals

Aphria is a licensed producer and supplier of medical marijuana under the ACMPR. Aphria’s flagship greenhouse production facility is located on a 169-acre property in Leamington, Ontario. The Company currently produces 9,000kg and plans to expand its production facility to add an additional 90,000kg.

  • Market Cap: $2,080.0 Million
  • 1 Month Total Return: -1.2%
  • 3 Month Total Return: 18.1%
  • EBITDA Growth – Next Year/This Year: 763.2%
  • Peer Average EBITDA Growth – Next Year/This Year: 488.1%
Related Articles From the munKNEE Vault:

1. Marijuana/Cannabis Stocks: Analysts Say These 5 Companies Have the Potential to More Than Double in Price This Year

To take advantage of another potential upswing in the market, we have selected 5 cannabis companies, which analysts believe are undervalued. The Canadian marijuana stocks on our list today currently have 100% upside on average according to analysts, indicating that these stocks could post strong returns in the near-term.

2. 4 Canadian Marijuana Stocks with Notable Expected EBITDA Growth

As recreational legalization of marijuana in Canada approaches this summer, these companies have plans to meet the upcoming demand. If marijuana continues its rally, the Canadian marijuana stocks on our list could see strong returns in both the short and long term.

3. Aurora Cannabis Inc. vs. Canopy Growth Corp.: Which Marijuana Stock is More Attractive?

The top spot in the Canadian cannabis industry belongs to Canopy Growth Corp. but some competitors, such as Aurora Cannabis Inc., have the scope, scale, and differentiation to take on the market leader. Of these two which stock is more attractive?

4. Aurora Cannabis Inc. vs. Aphria Inc.: Which One Is A Better Buy?

Today we will be comparing the current and future prospects of Aurora Cannabis and Aphria Inc. – the only two companies with the scope, scale, and differentiation to take on Canopy Growth.

5. These 4 Medical Cannabis Stocks Expected to Generate Positive EPS

Due to the early stages of the cannabis industry and its growth prospects, investors have not expected cannabis companies to generate positive earnings. Instead they have valued the stocks primarily on hope for a lucrative future. That being said, however, we have identified 4 Canadian cannabis stocks that are expected to generate positive earnings in the next 12 months. If they live up to their earnings expectations, it could begin a time when investors look for companies with sustainable growth prospects, as opposed to those that are expected to have the highest short-term revenue growth.

6. Marijuana Stocks vs. Battery Stocks vs. Tech Stocks: Which Will See the Highest ROI?

Being able to sell products at a high margin is a good sign of efficiency. Doing so leaves more cash to dedicate to other expenses and service debt obligations. Identifying undervalued companies with strong gross margins in the young marijuana industry is important, given the upcoming Canadian legalization of marijuana for recreational purposes in 2018. Today we have identified 4 Canadian marijuana stocks that have underperformed their peers despite healthy gross margins.

8. These 5 Medical Marijuana Stocks Have the Greatest Upside Potential

Investing in marijuana-related stocks is a high-risk, high-reward game due to all the uncertainties surrounding the legalization of the drug. Companies that do succeed, however, have potential to bring large capital gains. That being said we have identified five Canadian marijuana stocks with the biggest upside potential, according to consensus analyst price targets.

9. 5 Marijuana Stocks With Gross Margins Well Above Their Industry Peers

Identifying companies with high gross margins in the young marijuana industry is important because operating costs are likely to decrease as the industry matures, leaving these companies with high earnings potential. Today we have identified five Canadian marijuana stocks with gross margins well above their industry peers.

10. Is One of These 5 Junior Marijuana Stocks Ripe For Acquisition?

The search is now on for the next junior marijuana stock that is ripe for acquisition. Will it be one of the 5 we’ve identified based upon their high revenue growth profiles?

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