The End of America's Global Leadership

Believe it or not, this October surprise could end up being the real election story when historians write their books. And no matter who wins, it may be impossible to restore America's global standing afterwards.

Canadian Vs. U.S. Cannabis Companies: Who Is Winning The Market Race To Weed Profits?

Nicolás Jose Rodriguez
June 25, 2024

The financial landscapes of Canadian and U.S. cannabis operators showcase distinct paths in the quest for profitability, driven by varying market dynamics and regulatory environments. According to recent financial data from Beacon Securities, the analysis of key financial metrics such as EV/EBITDA and P/CFO ratios reveals crucial insights.

U.S. cannabis operators demonstrate a more robust market performance with an average EV/EBITDA ratio of 8.0x, compared to their Canadian counterparts who post a significantly higher average of 20.6x.

This disparity indicates that American companies like Curaleaf Holdings, Inc. (OTC:CURA) and Green Thumb Industries Inc. (OTC:GTBIF) are generally priced more attractively relative to their earnings before interest, taxes, depreciation and amortization—a key profitability metric.

Moreover, the Price to Cash Flow from Operations (P/CFO), which assesses the value of a company's stock price relative to its operating cash flow per share, further underscores this trend.

U.S. operators like Trulieve Cannabis Corp. (OTC:TRUL) and Ascend Wellness Holdings LLC (OTC:AAWH) maintain an average P/CFO of 11.3x, considerably lower than the Canadian average of 31.2x for firms such as Aurora Cannabis Inc. (NASDAQ:ACB) and Tilray Brands, Inc. (NASDAQ:TLRY).

Such figures suggest that investors are paying less for each dollar of cash flow generated by U.S. firms, pointing to a more favorable valuation in the American market.

Investment And Growth Prospects

Looking ahead, the growth trajectory for these operators is equally telling. U.S. cannabis firms are projected to have an Adjusted EBITDA Compound Annual Growth Rate (CAGR) of 42% over the next two years, vastly outpacing the Canadian growth rate of 65%, which appears inflated due to a smaller base of operations. This robust growth in the U.S. is partly due to expanding legalization and a larger addressable market, offering greater opportunities for scale and profitability.

While Canadian operators like Canopy Growth Corporation (NASDAQ:CGC) and OrganiGram Holdings Inc. (NASDAQ:OGI) struggle with higher valuations and slower effective growth rates, U.S. cannabis operators are carving a path to profitability that appears more sustainable and grounded in solid market fundamentals.

This analysis not only highlights the current state of financial health between these operators but also paints a clearer picture of the better investment frontier, with U.S. operators taking the lead in the profitability race.

These investing issues will be a hot topic at the upcoming Benzinga Cannabis Capital Conference in Chicago this Oct. 8-9. Join us to get more insight into what the wave of weed legalization means for the future of investing in the industry. Hear directly from top executives, investors, advocates, and policymakers. Get your tickets now before prices go up by following this link.

Photo: AI-Generated Image. 

Continue Reading...

Popular

These Are The Top Democratic Contenders Who Could Succeed Biden If President Were To Bow Out Of

In the wake of a debate performance that drew widespread criticism, speculation has been reignited about whether President Joe Biden should bow out before the November election.

Trump Vs. Biden: New 2024 Election Poll Show Tie, But Here's Who Independent Voters Favor

A new 2024 election poll shows Donald Trump and Joe Biden tied. The poll shows inflation a key concern for voters moving forward.

Get in Our "Ozempic Trade" Before It's Too Late... - Ad

In the past 90 days, one stock has jumped 96% and another has gained 88%. Don't miss out on the next round of potential winners. Here are 4 "Ozempic Stocks" you must own.

Top 3 Tech Stocks Which Could Rescue Your Portfolio In July

Here's the latest list of major oversold players in this sector, having an RSI near or below 30.

Wall Street's Most Accurate Analysts Weigh In On 3 Energy Stocks With Over 6% Dividend Yields

During times of turbulence and uncertainty in the markets, even when markets are at all-time highs, many investors turn to dividend-yielding stocks.

Your Second Chance to Profit from AI - Ad

If you missed out on Nvidia, don't worry. A 244-year-old pattern is about to trigger a $25.6 trillion AI surge... And send three overlooked stocks soaring 1,000%+

Top 4 Real Estate Stocks That Could Lead To Your Biggest Gains In Q3

The most oversold stocks in the real estate sector presents an opportunity to buy into undervalued companies.

Elon Musk Responds To Vivek Ramaswamy As To Who's Running The Country After Trump-Biden Debate: 'Maybe Nobody'

Tesla Inc. CEO Elon Musk gave a cryptic response to a comment from former GOP candidate Vivek Ramaswamy about who's actually running the country.

The AI Presentation 'They' Don't Want You to See - Ad

Wall Street legend confesses, "I feel a sense of duty to share what I know with as many people as I can... that's why I made this free for all to view."

Stocks Show Modest Gains Ahead Of Fed's Inflation Report; Chipmakers Struggle, While Gold And Bitcoin Rebound: What's Driving Markets Thursday?

Wall Street experienced a subdued trading day on Thursday, as traders likely chose to remain on the sidelines in anticipation of Friday’s release of the Federal Reserve’s preferred inflation gauge.

Elon Did It Again: This Could be Bigger than Tesla - Ad

After revolutionizing online payment processing (PayPal), space exploration (SpaceX) and the auto industry (Tesla)... He's getting ready to do it again with his new A.I. venture. This could be bigger than Tesla, bigger than SpaceX, and bigger than Paypal.

Exposed: 3 Cent Crypto to Explode July 22nd? - Ad

Chris Rowe, the man who spotted 44 different coins that have returned over 100%, is now making the biggest crypto call of his ENTIRE career.... Because a powerful crypto event will trigger on June 24th... Sending hundreds of tiny cryptos soaring 5X, 50X, even 100X -- in just days.

What's Going On With Nikola Stock After Its Reverse Split?

Nikola Corporation shares are trading lower Tuesday after the stock began trading on a reverse split-adjusted basis. Here's a look at what to know:

Target Tightens Shoplifting Rules, Reduces Threshold To $50: Report

Target has lowered its shoplifting intervention threshold to $50, down from $100, to combat rising theft. The new policy, effective this summer, is part of Target's broader efforts to address theft impacting profit margins.

Elon Musk's Chilling Warning for Humanity - Ad

Elon Musk warned that humanity will soon be 'obsolete.' Every port, railroad, highway, and airport in America is facilitating a kind of 'invasion' that will bring about centuries worth of change in the next few years. If Elon and the research are correct -- the results could be devastating for the average American.

Royal Caribbean Stock Is Rising Tuesday: What's Going On?

Royal Caribbean Cruises Ltd (NYSE:RCL) shares are trading higher Tuesday in sympathy with shares of Carnival Corp (NYSE:CCL), which jumped after the company reported better-than-expected quarterly results.

United Airlines jet makes unscheduled landing in Florida after a passenger fights with a crew member

ORLANDO, Fla. (AP) — A United Airlines jet from Miami to New Jersey made an unscheduled landing in Orlando, Florida, this week after a passenger became “aggressive and disruptive,” the airline said.

The Election Shock Nobody Expected... (But You'll See it Coming) - Ad

It comes down to just 9 words... Nine simple words which when spoken, will determine the outcome of the 2024 election... These words have nothing to do with Trump, the economy, or what's happening in Ukraine, China or Israel. This is the scandal that isn't being reported (yet.) But my political operatives tracked down this story.

Nike Analysts Sour On Retailer's Short-Term Prospects Following Poor Outlook: 'No Quick Rebound'

Nike shares plummet after weak revenue numbers and lowered guidance. Analysts have mixed opinions, with some seeing a long-term play and others disappointed by lifestyle category trends.

July 22nd - The Biggest Crypto Event in History - Ad

According to the man who called every major market top and bottom for the last 29 years... A single event triggering on June 24th will send the crypto market soaring. But what's more exciting... is that this event could send a small sector of the crypto market soaring 5X, 25X, and even 100X higher in just days.

Cannabis Vs. Coca-Cola And Marlboro: Marijuana Market Growth Outpaces Alcohol, Tobacco And CPG Giants

Recent financial data from Beacon Securities compares key financial metrics across the alcohol, tobacco and cannabis industries, showing that cannabis is set to outpace major players like Coca-Cola (NYSE: KO), Marlboro (NYSE:

Bitcoin Rebounds From ETF Outflows, Back Above $61K

Bitcoin (CRYPTO: BTC) has bounced from its poor showing in Monday trading and is trading back above $61,000, despite significant net outflows from spot ETFs.

Buy These 3 Stocks Before the FDA's Anticipated Announcement - Ad

See this ASAP! This could NOT be more urgent.... Ian King has identified 3 little-known stocks that could go up 10X in the coming years. It's all thanks to a breakthrough product that could save billions of lives. Maybe even yours.

Man Who Predicted Trump 2016 Win: "Prepare for Election Meltdown" - Ad

In 2016, surveys were giving Hillary Clinton more than 99% chance of winning right up until election night. But right before the election... Former advisor to the CIA, Jim Rickards predicted Trump would win. You won't believe what he's predicting now. And it could have huge implications for the financial markets.

Rivian Stock Skyrockets Premarket, Set To Open At 4-Month High: What's Going On?

EV startup Rivian has found the going tough along with the rest of its peers as demand falters amid an inclement economy.

Federal Court Dismisses Marijuana Companies' Lawsuit Against Government Prohibition

Federal court dismisses marijuana companies' lawsuit against federal prohibition, citing Supreme Court precedent.

Chewy, Apple, Marathon Digital, McDonald's, Tesla: Why These 5 Stocks Are On Investors' Radars Today

On Monday evening, major U.S. indices closed in positive territory. The Dow Jones Industrial Average increased by 0.1%, reaching 39,169.52. The S&P 500 rose by 0.3% to 5,475.09, while the tech-focused Nasdaq climbed 0.8% to finish at 17,879.30. These are the top stocks that gained the attention of retail traders and investors throughout the day:

The Election Shock Nobody Expected... (But You'll See It Coming) - Ad

It comes down to just 9 words...Nine simple words which when spoken, will determine the outcome of the 2024 election...These words have nothing to do with Trump, the economy, or what's happening in Ukraine, China or Israel. This is the scandal that isn't being reported (yet.) But my political operatives tracked down this story.

Trump Media & Technology And Grindr Were Among The 10 Biggest Mid-Cap Stock Gainers Last Week (June 23 - June 29): Are These In Your Portfolio?

Top performers last week: Tempus AI +30%, Enovix Corp +29%, Grindr Inc +27.5%, Trump Media +18.33%, Credo Tech +18.3%, Tecnoglass Inc +17.9%, STAAR Surgical +16.55%, RXO Inc +16.22%, Global-E Online +16.21%, SentinelOne Inc +15.47%.

Big Tech Is Spending Billions Each Month on This AI Superproject - Ad

Big Tech is committing billions each month to the construction of these AI mega data centers. This is where Nvidia, comes in. It's quietly leaning on a set of what we call Silent Partners to get the job done. These companies could benefit greatly from this next wave of the AI boom.

One Tech Tip: Protecting yourself against SIM swapping

NEW YORK (AP) — SIM-swapping is a growing form of identity theft that goes beyond hacking into an email or social media account. In this case, the thieves take over your phone number. Any calls or texts go to them, not to you.

Trending Now

Information, charts or examples are for illustration and educational purposes only and not for individualized investment management This message contains commercial elements, such as advertising. We only send these offers to those who have opted in to our newsletter. Past performance is not indicative of future results. For these reasons we strongly suggest trading in a DEMO/Simulated account. The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended and have not determined if the statements and opinions of the advertiser are accurate, correct or truthful. If you use, act upon or make decisions in reliance on information contained or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates and agents without fault.

Copyright smartmoneytrading.net
Privacy Policy | Terms of Service