The Canadian marijuana stocks on our list are trading at low forward EV/EBITDA multiples compared to their peers
SmallCapPower | February 5, 2018: The Horizons Marijuana Life Sciences Index is down 32% from its peak in January. The Canadian marijuana stocks we’ve identified today trade at industry-low EV/EBITDA multiples. As legalization approaches on July 1, these companies could begin taking in a great deal of revenue soon.
Invictus MD Strategies Corp. (TSXV:IMH) – $1.96
Pharmaceuticals
Invictus MD Strategies is a Canada-based licensed producer of marijuana. The Company currently produces 600kg out of its Acreage Pharms facility. The Company has funded production facilities capable of producing 15,000 kg/year, to be operational by the end of 2018. Invictus plans to reach 50,000 kg/year by 2022.
- Market Cap: $156.5 Million
- YTD Total Return: 23.3%
- Forward EV/EBITDA 2018: 7.3x
- Forward EV/EBITDA 2019: 1.8x
- Peer Median Forward EV/EBITDA 2019: 14.5x
Supreme Cannabis Company Inc. (TSXV:FIRE) – $2.21
Pharmaceuticals
Supreme Cannabis is a Canada-based licensed producer of medical marijuana. The Company’s primary asset is 7ACRES, which currently operates a 40,000 square foot facility that produces 5,000 KG per year. The Company is also developing a 342,000 square foot facility at 7ACRES that anticipates 50,000 KG of annual production.
- Market Cap: $517.8 Million
- YTD Total Return: -3.5%
- Forward EV/EBITDA 2018: 13.6x
- Forward EV/EBITDA 2019: 3.7x
Aphria Inc. (TSX:APH) – $15.48
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: $2,486.4 Million
- YTD Total Return: -17.2%
- Forward EV/EBITDA 2018: 14.4x
- Forward EV/EBITDA 2019: 6.2x
Aurora Cannabis Inc. (TSX:ACB) – $10.22
Pharmaceuticals
Aurora Cannabis is a licensed producer and seller of medical marijuana and cannabis oil under the ACMPR. Aurora sells its products over the phone, online or through its mobile app and offers a delivery service to its customers. Currently, the Company is engaged in the construction of its new 800,000 square foot production facility in Alberta called Aurora Sky. On January 24, Aurora bought CanniMed Therapeutics Inc. (TSX:CMED) for $1.1 billion.
- Market Cap: $4,626.9 Million
- YTD Total Return: 6.5%
- Forward EV/EBITDA 2018: 10.5x
- Forward EV/EBITDA 2019: 4.2x
Disclosure: Neither the author nor his/her family own shares in any of the companies mentioned above.
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