The Canada-listed cannabis stocks we’ve identified have the best revenue growth prospects with average expected revenue growth of 235% through 2024
SmallCapPower | May 31, 2021: Today we have done a deep dive and discovered cannabis stocks with the strongest revenue growth and lowest production costs. The four Canada-listed cannabis stocks we’ve weeded out today are expected to see significant revenue gains when comparing F2020 results with F2024 consensus revenue estimates, with an average increase in revenue projected at 235%. Analysts are also expecting these companies to control their costs, with anticipated gross margins of between 44% and 70%.
*Share price and other metrics as of May 28, 2021
Trulieve Cannabis Corp. (CSE:TRUL) – $45.74
Cannabis
Trulieve is vertically integrated and the largest fully licensed medical cannabis company in Florida. Trulieve cultivates and produces all its own products and distributes those products through its 85 dispensaries operating throughout Florida, as well as directly to patients via home delivery. On May 10, 2021, Trulieve announced an agreement to acquire Harvest Health and Recreation for $2.1B in stock, creating a market leader with 2021 pro forma revenues of $1.2B. The combined business will have operations in 11 states, comprised of 22 cultivation and processing facilities with a total capacity of 3.1 million square feet, and 126 dispensaries serving both the medical and adult-use recreational cannabis markets. Additionally, with the acquisition TRUL is expected to generate $2.2B in revenue by F2024 with 70% gross margins.
- Market Cap: $5,768.2M
- YTD-Return: +13.8%
- 1-Year Share Price Return: +154.8%
- 30-Day Average Trading Volume: 157,060
- 2024 Revenue Estimate: $2,234.0M (pro forma)
- Gross Margin Estimate: 70.0%
- F2020 Revenue: $619.3M
Curaleaf Holdings, Inc. (CSE:CURA) – $17.75
Cannabis
Curaleaf is a leading international provider of consumer products in cannabis with a mission to improve lives by providing clarity around cannabis and confidence around consumption. In the United States, Curaleaf currently operates in 23 states with 106 dispensaries, 23 cultivation sites and over 30 processing sites, and employs over 4,800 team members. Curaleaf recently announced the acquisition of Sueños Farms, the largest outdoor grow in Colorado. The proposed transaction includes three Pueblo, Colorado outdoor cannabis grow facilities covering 66 acres of cultivation capacity, including land, equipment and licensed operating entities, an 1,800 plant indoor grow and two retail cannabis dispensary locations serving adult use customers. Consensus estimates have Curaleaf pulling in revenues of $2.9B in 2024 with 56% gross margins.
- Market Cap: $12,475.0M
- YTD-Return: +16.5%
- 1-Year Share Price Return: +116.5%
- 30-Day Average Trading Volume: 430,820
- 2024 Revenue Estimate: $2,933.2M
- Gross Margin Estimate: 55.8%
- F2020 Revenue: $790.5M
Tilray, Inc. (TSX:TLRY) – $20.20
Cannabis
Tilray is a leading global cannabis-lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia, and Latin America that is changing people’s lives for the better – one person at a time – by inspiring and empowering the worldwide community to live their very best life by providing them with products that meet the needs of their mind, body, and soul and invoke a sense of wellbeing. After completing its merger with Aphria on May 5, 2021, Tilray has become the market share leader in Canada with an estimated 14% market share. Analysts are expecting the combined company to generate $1.7B in revenue by 2024. Tilray estimates costs synergies of $100M within 18 months of the merger in the key areas of cultivation and production, cannabis and product purchasing, sales, and marketing, and corporate expenses.
- Market Cap: $9,015.4M
- 30-Day Share Price Return: +10.0%
- 30-Day Average Trading Volume: 1,598,330
- 2024 Revenue Estimate: $1,699.0M
- Gross Margin Estimate: N/A
- F2020 Revenue: $611.1M
Canopy Growth Corporation (TSX:WEED) – $31.45
Cannabis
Canopy Growth, an early mover in the Canadian market, is a multi-faceted cannabis company with a strong investment in brand, market and product differentiation. Through owned and partnered cannabis production platforms, as well as education to help customers safely, effectively and responsibly use cannabis, Canopy has created a dominant, global business with the potential to generate a significant and sustained return on shareholder capital over the long term. With celebrity endorsements such as the recently announced pet CBD line with Martha Stewart, analysts are expecting Canopy to generate 1.7B in revenue by 2024 with 44% gross margins.
- Market Cap: $12,041.4M
- YTD-Return: 0.4%
- 1-Year Share Price Return: +2.9%
- 30-Day Average Trading Volume: 1,211,700
- 2024 Revenue Estimate: $1,767.5M
- Gross Margin Estimate: +44.0%
- F2020 Revenue: $506.1M
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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