The Canadian marijuana stocks on our list have industry low EV/Forward Revenue multiples
SmallCapPower | June 28, 2017: Today we have identified four Canadian marijuana stocks trading below the industry average in terms of EV/Forward Revenue. This is an appropriate multiple to use due to the early stage, high growth nature of the industry, meaning that companies are not expected to generate earnings yet; however, high revenue growth has become the norm. If these companies are to meet their next twelve-month (NTM) revenue expectations, it could result in a large appreciation in the company’s share price.
ABcann Global Corp. (TSXV: ABCN) – $0.93
Pharmaceuticals
ABcann Global Corp, formerly Panda Capital Inc, is a Canada-based company, which operates as a licensed Canadian cannabis producer through ABcann Medicinals Inc. It provides a fully-operational 14,500 square foot facility with production capacity of 1,000 kilograms annually and plans to commence development of a 71,000 square foot facility with production capacity of 20,000 kilograms per year.
- Market Cap: $92,485,177
- Revenue (NTM): $17,202,500
- Enterprise Value: $92,351,351.47
- EV/Revenue (NTM): 5.5x
OrganiGram Holdings Inc. (TSXV: OGI) – $2.24
Pharmaceuticals
OrganiGram Holdings Inc., formerly Inform Exploration Corp., is a Canada-based company, which operates through its subsidiary Organigram Inc. Organigram Inc. is a licensed medical marijuana producer as regulated by Health Canada under the Marijuana Medical Access Regulations (MMAR) of the Government of Canada.
- Market Cap: $230,984,964
- Revenue (NTM): $33,595,708
- Enterprise Value: $179,443,886
- EV/Revenue (NTM): 5.4x
Emblem Corp. (TSXV: EMC) – $1.63
Investment Holding Companies
Emblem Corp, formerly Saber Capital Corp., is a Canada-based holding company that is a licensed producer of medical marijuana. The Company’s business involves the growing of medical marijuana, an agricultural product. The Company produces approximately 55 kilograms per month of dried flower marijuana. Its activities and resources are focused primarily on its existing facility in Paris, Ontario.
- Market Cap: $116,126,113
- Revenue (NTM): $19,092,800
- Enterprise Value: $115,625,547
- EV/Revenue (NTM): 5.9x
Canopy Growth Corp. (TSX: WEED) – $8.46
Pharmaceuticals
Canopy Growth Corporation, formerly Tweed Marijuana Inc., is a diversified cannabis company. The Company, through its subsidiaries Tweed Inc. (Tweed), Bedrocan Canada Inc. (Bedrocan) and Tweed Farms Inc. (Tweed Farms), is engaged in the business of producing and selling legal marijuana in the Canadian medical market. It is also focusing on producing and selling marijuana in the recreational market in Canada. Its core brands are Tweed and Bedrocan. Tweed is a licensed producer of medical marijuana. Tweed’s commercial license covers approximately 168,000 square feet of its Smiths Falls facility and allows Tweed to produce and sell approximately 3,540 kilograms of medical marijuana per year.
- Market Cap: $1,397,776,453
- Revenue (NTM): $167,387,215
- Enterprise Value: $1,312,442,453
- EV/Revenue (NTM): 7.8x
Disclosure: Neither the author nor any of the principals at Small Cap Power, or their family members, own shares in any of the companies mentioned above.
The Content contained on this page (including any facts, views, opinions, recommendations, description of, or references to, products or securities) made available by SmallCapPower/Ubika Research is for information purposes only and is not tailored to the needs or circumstances of any particular person. Any mention of a particular security is merely a general discussion of the merits and risks associated there with and is not to be used or construed as an offer to sell, a solicitation of an offer to buy, or an endorsement, recommendation, or sponsorship of any entity or security by SmallCapPower/Ubika Research. To read more of this Disclaimer please click on the button below:
