The Canadian marijuana stocks on our list have the industry’s lowest EV/ Forward Sales multiples
SmallCapPower | June 6, 2017: Investors likely purchase marijuana stocks for their strong growth potential, which may lead to valuations that don’t justify their growth. The five marijuana stocks we have identified today have the Canadian marijuana industry’s lowest EV/Forward Sales multiples, meaning you are getting good relative value for every dollar that investors pay for the next year of sales.
Related: For Our Complete Coverage Of Canadian Marijuana Stocks Click Here
Golden Leaf Holdings Ltd. (CSE: GLH) – $0.32
Pharmaceuticals
Golden Leaf Holdings Ltd. (GLH) is a cannabis oil and solution provider in North America. The Company produces and distributes various types of products, such as cannabis flower and cannabis oils. The Company owns a dispensary through its subsidiary, Left Coast Connections. GLH operates cultivation business through its subsidiary, Greenpoint Oregon, Inc. (GPO). GPO uses over two separate extraction methods for extracting cannabis oil, such as carbon dioxide (CO2) extraction and hydrocarbon extraction. Using CO2 as an extraction solvent, GLH focuses on the extraction process, leaving behind various properties, such as chlorophyll, lipids, waxes and fats from the plant. GPO operates over two hydrocarbon extractors.
- Market Cap: $32,081,143
- Total Revenue (LTM): $10,289,381
- Debt to Equity: N/A
- EV/Forward Sales: 1.0x
Aurora Cannabis Inc. (TSXV: ACB) – $2.22
Pharmaceuticals
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: $737,074,834
- Total Revenue (LTM): $1,439,270
- Debt to Equity: 175.9%
- EV/Forward Sales: 5.6x
ABcann Global Corp. (TSXV: ABCN) – $0.99
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: $98,389,547.59
- Total Revenue (LTM): $0
- Debt to Equity: NA
- EV/Forward Sales: 6.6x
OrganiGram Holdings Inc. (TSXV: OGI) – $2.40
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: $246,204,650
- Total Revenue (LTM): $6,127,630
- Debt to Equity: 16.9%
- EV/Forward Sales: 6.63x
CanniMed Therapeutics Inc. (TSX: CMED) – $9.08
Pharmaceuticals
CanniMed Therapeutics Inc is a Canada-based plant biopharmaceutical company specializing in the production of pharmaceutical-grade cannabis and offering a range of pharmaceutical-grade cannabis products. In addition, the Company has a plant biotechnology research and product development program focused on the production of plant-based materials for pharmaceutical, agricultural and environmental applications. The Company, through its subsidiary CanniMed Ltd, offers medical cannabis oils, dried medical cannabis, vaporizers, vaporizer parts and accessories. Its CanniMed Oils are made using only dried cannabis flowers. Its vaporizers include Arizer Air vaporizer and Volcano Medic vaporizer.
- Market Cap: $205,349,361
- Total Revenue (LTM): $5,788,000
- Debt to Equity: 127.6%
- EV/Forward Sales: 7.6x
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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