The Canada marijuana stocks on our list are trading at attractive prices given their growth prospects
SmallCapPower | May 25, 2017: There are over 40 publicly listed marijuana companies in Canada, comprising a total market value of $5B. These stocks have performed well given the prospects of recreational marijuana legalization in Canada. However, this has skyrocketed valuations to levels that make it nearly impossible to rationalize the purchase of these types of stocks. Despite this, there are still a few marijuana companies that can be justified as Growth at a Reasonable Price (GARP). Today we have identified five Canada marijuana stocks that are all trading well below the industry average in terms of EV/Sales (LTM).
Canopy Growth Corp (TSX: WEED) – $8.09
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: $1,337,832,426
- Total Revenue (LTM): $12,699,000
- Debt to Equity: 3.2%
- YTD Price Change: -11.5%
Aphria Inc. (TSX: APH) – $5.70
Aphria Inc., formerly Black Sparrow Capital Corp., is a Canada-based company, which is engaged in producing and selling medical marijuana through retail sales and wholesale channels. The Company’s retail sales are sold primarily through the Company’s online store, as well as telephone orders. Its wholesale shipments are sold to other Medical Purposes Regulations (MMPR) Licensed Producers. It offers medical cannabis of various strains, including Kusawa, Tamaracouta, Panache, Churchill and Iroquois. The Company is also engaged in the research and development, and commercial production of cannabis oil.
- Market Cap: $786,226,484
- Total Revenue (LTM): $8,433,930
- Debt to Equity: 0.0%
- YTD Price Change: 13.1%
OrganiGram Holdings Inc. (TSXV: OGI) – $2.56
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 Marihuana Medical Access Regulations (MMAR) of the Government of Canada.
- Market Cap: $294,923,362
- Total Revenue (LTM): $6,127,630
- Debt to Equity: 16.9%
- YTD Price Change: -11.7%
Aurora Cannabis Inc. (TSXV: ACB) – $2.50
Aurora Cannabis Inc, formerly Prescient Mining Corp, is a Canada-based company, which is in the business of producing and distributing medical marijuana pursuant to the Access to Cannabis for Medical Purposes Regulations (ACMPR). The Company’s primary business consists of the sale of dried medical cannabis. The Company’s principal market is patients who use medical cannabis in Canada. It operates under the following segments: the production and sale of medical cannabis, as well as patient counseling and outreach services. The Company sells dried medical cannabis by direct delivery to patients through physical delivery services, as well as ordering services through the phone and the Company’s online shop and mobile application.
- Market Cap: $826,138,655
- Total Revenue (LTM): $1,439,270
- Debt to Equity: 175.9%
- YTD Price Change: 8.7%
Canabo Medical Inc. (TSXV: CMM) – $0.46
Healthcare Facilities & Services
Canabo Medical Inc, formerly Four River Ventures Ltd, is a Canada-based company, which is engaged in the provision of medical services and non-cannabinoid products for patients suffering from chronic pain and disabling illnesses through health clinics. The Company operates approximately 10 medical clinics across Canada. Its medical clinics are operated by qualified health care practitioners, independent medical marijuana evaluations for employers and insurers, and medical marijuana scientific research.
- Market Cap: $17,478,253
- Total Revenue (LTM): $2,080,850
- Debt to Equity: 0.0%
- YTD Price Change: -49.5%
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.
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