THE ‘BILL CARA CANNABIS 50’ COMPANIES

This week we focus on 50 cannabis companies for which we, as portfolio managers, capture comprehensive investor-related data. We show how we capture the data and apply it to a proprietary algorithm to generate decision-support information.

We will let the data speak for itself. But new readers will first need an explanation.

Every week my partner Owen Williams and I compile a couple dozen data points for 5,100 listed companies. This information is assembled by Thomson Reuters, the premier Big Data company, from corporate filings and analyst reports. In addition to the components of the major indexes (Dow 30, S&P 500, Russell 3000, ACWI 500), we retrieve the same data for several hundred small cap companies to study them in detail in order for possibly trading them in client portfolios.

We also capture the same data now for a growing number of cannabis companies. A week ago, we had data on 21. This week the number is well over 50. To reduce the list to what we will be calling the Bill Cara Cannabis 50, we eliminated some of the biotech companies that are peripherally involved in cannabis as well as a few others.

As more of these companies meet their regulatory requirements and more industry analysts report on them, our database will expand.

Here is a sample of the fundamentals data that we obtain and massage every week.

  • Y/Y Forecasted Next Year Sales
  • Y/Y Forecasted Next Year EPS
  • 3-month consensus EPS revision % change
  • Consensus Est. Enterprise Value-to-EBITBA
  • Estimated Net Income-to-Sales
  • Net Debt-to-EBITDA
  • Cash Flow-to-Total Liabilities
  • Current Mkt Cap-to-Forecasted EBITDA
  • Current P/BV relative 5-Year Mean P/BV

Once weekly, we run this data for all 5,100 companies to get relative rankings of any stock against the Universe or its sector or within any peer group that we choose such as a portfolio or a group of stocks in an industry like cannabis.

For illustrative purposes, we used the US stock market tickers for our 50 cannabis companies, but this list also contains the Canadian market tickers and the links to the company websites.

In fact, some of the assigned US tickers cannot be traded yet. We could not trade CURLF, CWBHF, NWKRF, HRVOF, KHRNF, NACNF, NDVAF, PHCEF, SNNVF, TCNNF and ZBISF. But the Canadian tickers can be traded.

NRTH.VNCNNF48North Cannabis Corphttps://48nrth.com
ACRGFAcreage Holdingshttps://www.acreageholdings.com/
APHA.TOAPHAAphria Inchttps://aphria.ca/
ACB.TOACBAurora Cannabishttps://www.auroramj.com/
XLY.VCBWTFAuxly Cannabishttps://auxly.com/
TRST.TOCTSTCanntrust Holdingshttps://canntrust.ca/
WEED.TOCGCCanopy Growth Corphttps://www.canopygrowth.com/
RIV.VCNPOFCanopy Rivers Inchttps://www.canopyrivers.com/
CWEB.CACWBHFCharlotte’s Webhttps://www.leafly.ca/sativa/charlottes-web
CRBPCorbus Pharmaceuticals Holdingshttps://www.corbuspharma.com/
CL.CACRLBFCresco Labs Inc.https://www.crescolabs.com/
CRON.TOCRONCronos Grouphttps://thecronosgroup.com/
CURA.CACURLFCuraleaf Holdings, Inc.https://www.curaleaf.com/
NINE.VVRNDFDelta 9 Cannabis Inchttps://www.delta9.ca/
EMH.VEMHTFEmerald Health Therapeuticshttps://emeraldhealth.ca/en
EVE.VEEVVFEve & Co Inchttps://www.evecannabis.ca/
FLWR.VFLWPFFlowr Corphttps://flowr.ca/
CANNGeneral Cannabis Corphttps://www.generalcann.com/
GGB.CAGGBXFGreen Growth Brandhttps://www.greengrowthbrands.com/
TGOD.TOTGODFGreen Organic Dutchmanhttps://www.tgod.ca/
GTII.CAGTBIFGreen Thumb Industries Inc.https://www.gtigrows.com/
GTEC.VGGTTFGTEC Holdingshttps://www.gtec.co/
GWPHGW Pharmaceuticals PLChttps://www.gwpharm.com/
HVT.VHRVOFHarvest One Cannabis Inchttps://www.harvestone.com/
HEXO.TOHEXOHexo Corphttps://www.hexocorp.com/
NDVA.VNDVAFIndiva Ltdhttps://www.indiva.com/
IAN.CAITHUFiAnthus Capital Holdings, Inchttps://www.ianthus.com/
IN.TOIMLFFInMed Pharmaceuticalshttps://www.inmedpharma.com/
IIPRInnovative Industrial Propertieshttp://innovativeindustrialproperties.com/
INSYINSYS Therapeutics Inchttps://www.insysrx.com/
GENE.VIVITFInvictus MD Strategies Corphttps://www.invictus-md.com/
KHRN.VKHRNFKhiron Life Sciences Corphttps://www.khiron.ca/en/home
KSHBKushCohttps://www.kushco.com/
LABS.VMEDIFMedipharm Labs Corphttps://www.medipharmlabs.com/
MMEN.CAMMNFFMedmen Enterpriseshttps://medmen.com/
N.VNXTTFNamaste Technologies Inchttps://www.namastetechnologies.com/
META.VNACNFNational Access Cannabis Corphttp://nationalaccesscannabis.com/
OGI.VOGIOrganigram Holdingshttps://www.organigram.ca/
PCLO.VPHCEFPharmacielo Ltdhttps://www.pharmacielo.com/
SUGR.VRLLRFSugarBud Craft Growers Corphttps://www.sugarbud.ca/
SNN.CASNNVFSunniva Inc.https://www.sunniva.com/
FIRE.TOSPRWFSupreme Cannabis Company Inchttps://www.supreme.ca/
TBP.VTBPMFTetra Bio Pharma Inchttp://tetrabiopharma.com/
TLRYTilrayhttps://www.tilray.ca/
TRUL.CATCNNFTrulieve Cannabis Corp.https://www.trulieve.com/
VIVO.VVVCIFVivo Cannabis Inchttps://www.vivocannabis.com/
WMD.VWDDMFWeedMD Inchttps://www.weedmd.com/
WL.VWSLFFWestleaf Inchttps://www.westleaf.com/
ZENA.VZBISFZenabis Global Inchttps://www.zenabis.com/
ZYNEZynerba Pharmaceuticals Inchttps://zynerba.com/

NWKRF

Newstrike Brands

On the fundamentals data we receive, we apply a proprietary algorithm to compute relative scores for categories like Growth, PEG, EPS and Revenue Revisions etc, some of which are displayed in this article as exhibits.

Here is a background explanation of the Williams Market Analytics Fundamental Scoring System and our Fundamentals algorithm.

Scores range from 0 (weakest) to 100 (strongest) and are centered around 50, like a diffusion index, as explained below. The number in parenthesis is the company’s percentile rank for the metric, either versus all listed companies (“Global”) or versus its peers (“Sector”). The 100th percentile is top of class.

NA = Fundamental data is not available for the company or there is a lack of analyst coverage.

Metric Components Significance of 50 level
GrowthY/Y Forecasted Next Year Sales/Current
Year Sales
Y/Y Forecasted Next Year EPS/Current
Year EPS
50 = 0% aggregate growth rate
EPS
Revisions
6-month consensus revision % change
(current year)
3-month consensus revision % change
(current year)
6-month consensus revision % change
(for next year)
3-month consensus revision % change
(for next year)
50 = 0% change in aggregate revisions
Sales
Revisions
6-month consensus revision % change
(current year)
3-month consensus revision % change
(current year)
6-month consensus revision % change
(for next year)
3-month consensus revision % change
(for next year)
50 = 0% change in aggregate revisions
ValuationConsensus Est. Enterprise Value-to
EBITDA
Consensus Est. Enterprise Value-to-Sales
For Banks:
Total Liabilities & Shareholders’ Equity
to-EBITDA
Total Liabilities & Shareholders’ Equity
to-Revenue
50 = 50th percentile of each component
ProfitabilityEstimated Net Income-to-Sales
Estimated EBITDA-to-Sales
50 = 0% profit margin for each measure
P/EEstimated P/E for Current Year
Estimated P/E for Next Year
50 = 50th percentile of average forward P/E
Financial
Situation
Total Debt-to-Total Equity
EBITDA-to-Interest Expense
Net Debt-to-EBITDA
Cash Flow-to-Total Liabilities
50 = 50th percentile of each component
Yield Indicated Dividend Yield 50 = 50th percentile of all dividend payers
Analyst Consensus analyst recommendation 50 = analyst recommendations between
Hold and Accumulate
PEG Avg. Est. P/E / In-House aggregate
growth rate calculation
50 = 50th percentile
Price/Book
Value
(historical)
Current P/BV relative 5-Year Mean P/BV 50 = 50th percentile of all percent spreads
Mkt Cap /
EBITDA
Current Mkt Cap-to-Forecasted EBITDA 50 = 50th percentile
Price/Earnings
(historical)
Current P/E relative 5-Year Mean P/E 50 = 50th percentile of all percent spreads

So, without getting into technical (market price and volume) studies that are part of our decision-support trading process, you can see we have an investment process based on fundamentals.

Now let’s examine the detailed scoring results of the Bill Cara Cannabis 50.

The first illustration is of Growth.

TickerNameGrowthUniverse rank (4234)
ACRGFAcreage Holdings1001
CBWTFAuxly Cannabis Group Inc.1001
CTSTCannTrust Holdings Inc1001
CRLBFCresco Labs Inc.1001
CURLFCuraleaf Holdings, Inc.1001
EMHTFEmerald Health Therapeutics1001
EEVVFEve & Co Inc1001
FLWPFFlowr Corp1001
GGBXFGreen Growth Brand1001
GTBIFGreen Thumb Industries Inc.1001
HEXOHexo Corp1001
MEDIFMediPharm Labs Corp.1001
SNNVFSunniva Inc.1001
VVCIFVivo Cannabis Inc1001
ZBISFZenabis Global Inc1001
TGODFGreen Organic Dutchman96.9841
PHCEFPharmacielo Ltd96.1043
APHAAphria Inc.95.1246
SPRWFSupreme Cannabis Company,92.5855
KHRNFKhiron Life Sciences Corp92.0456
CWBHFCharlotte’s Web91.8459
IVITFInvictus MD Strategies Corp91.6561
MMNFFMedmen Enterprises86.8586
ACBAurora Cannabis85.9193
IIPRInnovative Industrial Properties Inc85.4498
KSHBKush Bottles Inc85.36101
CGCCanopy Growth Corporation83.05131
GWPHGW Pharmaceuticals PLC82.48145
TLRYTilray Inc82.32149
VRNDFDelta 9 Cannabis Inc79.96212
OGRMFOrganigram Holdings Inc79.34242
INSYInsys Therapeutics Inc78.80261
TCNNFTrulieve Cannabis Corp.76.20389
CRONCronos Group Inc75.57410
CNPOFCanopy Rivers Inc72.93477
ZYNEZynerba Pharmaceuticals Inc55.041709
CRBPCorbus Pharmaceuticals Holdings Inc36.993769
IMLFFInMed Pharmaceuticals0NA
NCNNF48North Cannabis CorpNANA
CANNGeneral Cannabis CorpNANA
GGTTFGTEC HoldingsNANA
HRVOFHarvest One CannabisNANA
NDVAFIndiva LtdNANA
NXTTFNamaste Technologies Inc.NANA
NACNFNational Access Cannabis CorpNANA
NWKRFNewstrike BrandsNANA
RLLRFSugarBud Craft Growers CorpNANA
TBPMFTetra Bio Pharma IncNANA
WDDMFWeedMD IncNANA
WSLFFWestleaf IncNANA

From the description of the Fundamentals algorithm, you can see that our Growth score is based on both Revenue and Earnings calculations.

For statistical reasons, we apply a maximum score of 100 to all 5,000+ companies, for all calculations. This methodology resulted in 15 of the 50 cannabis companies having 100 scores for Growth and hence receiving a T1 (tied for #1) ranking.

That result reflects the explosive growth in the cannabis industry, particularly in the revenue part of the calculations, if not yet in earnings.

Of the 50 companies, there was insufficient data to calculate scores on 13. But of the 37 we scored, fully 34 of these companies scored more than 75.0, which is extraordinary, and is the reason so many investors are watching the cannabis industry closely.

The lowest Growth score that we would deem acceptable for investment was Organigram at 79.34, which stood at 242 out of 4,234 ranked companies this week (May 17 data). And yet Organigram ranked only #31 out of these 50 cannabis companies. Nothing further needs to be said.

Note that the database universe is 5100 companies but the scoring universe for each criterion is less because the reported data from the companies and/or the analysts was insufficient. In fact, for the emerging cannabis industry we were unable to analyze several criteria that we do every week for mature companies, such as Yield because there are no dividends paid by these companies.

The second illustration is for Price-Earnings Growth.

Here is where Earnings matter and the fact that only 24 of the 50 companies could be scored shows where investors need to focus. But these scores are based largely on analyst estimates, which are highly influenced by company guidance. When subsequent operating results fail to meet consensus estimates, the stock prices get hammered. Cannabis companies can either walk the talk investors expect, or they cannot.

TickerNamePEGUniverse rank (3595)
EEVVFEve & Co Inc1001
SNNVFSunniva Inc.1001
IVITFInvictus MD Strategies Corp1001
GTBIFGreen Thumb Industries Inc.99.35113
GGBXFGreen Growth Brand99.33115
ZBISFZenabis Global Inc98.83133
VRNDFDelta 9 Cannabis Inc96.68222
CRLBFCresco Labs Inc.96.13238
HEXOHexo Corp93.46341
APHAAphria Inc.93.10353
MEDIFMediPharm Labs Corp.92.67365
CRONCronos Group Inc92.34378
CWBHFCharlotte’s Web89.64460
EMHTFEmerald Health Therapeutics89.28473
TCNNFTrulieve Cannabis Corp.89.26475
IIPRInnovative Industrial Properties Inc84.94603
OGRMFOrganigram Holdings Inc83.31656
FLWPFFlowr Corp75.46898
SPRWFSupreme Cannabis Company,74.26931
CURLFCuraleaf Holdings, Inc.72.94973
ACRGFAcreage Holdings72.68985
CTSTCannTrust Holdings Inc62.501278
VVCIFVivo Cannabis Inc60.881315
CNPOFCanopy Rivers Inc45.452446
CBWTFAuxly Cannabis Group Inc.NANA
TGODFGreen Organic DutchmanNANA
PHCEFPharmacielo LtdNANA
KHRNFKhiron Life Sciences CorpNANA
MMNFFMedmen EnterprisesNANA
ACBAurora CannabisNANA
KSHBKush Bottles IncNANA
CGCCanopy Growth CorporationNANA
GWPHGW Pharmaceuticals PLCNANA
TLRYTilray IncNANA
INSYInsys Therapeutics IncNANA
ZYNEZynerba Pharmaceuticals IncNANA
CRBPCorbus Pharmaceuticals Holdings IncNANA
IMLFFInMed PharmaceuticalsNANA
NCNNF48North Cannabis CorpNANA
CANNGeneral Cannabis CorpNANA
GGTTFGTEC HoldingsNANA
HRVOFHarvest One CannabisNANA
NDVAFIndiva LtdNANA
NXTTFNamaste Technologies Inc.NANA
NACNFNational Access Cannabis CorpNANA
NWKRFNewstrike BrandsNANA
RLLRFSugarBud Craft Growers CorpNANA
TBPMFTetra Bio Pharma IncNANA
WDDMFWeedMD IncNANA
WSLFFWestleaf IncNANA

Of the 24 scored companies for PEG scores, Eve & Co Inc (EEVVF), Sunniva Inc. (SNNVF) and Invictus MD Strategies Corp (IVITF) were best, followed by Green Thumb Industries Inc. (GTBIF), Green Growth Brand (GGBXF) and Zenabis Global Inc (ZBISF).

In the universe of 5,100 companies of which we were able to score 3595 for PEG, and we typically filter out the bottom 80%, Organigram Holdings Inc., with a universal ranking of 656, 17th best for cannabis, was the lowest one we deem acceptable on this basis.

To determine the best candidates for investment based on company fundamentals, we look at the scores of all these exhibits. Prior to investing, we then run different market price-based algorithms.

Interesting is that some of profit-generating companies are being acquired by larger companies, probably to learn the ropes on how to generate earnings.

The third illustration is for EPS Revisions.

Bear in mind that we are not referring to absolute earnings here. When companies guide from a major loss to a lesser loss, the analysts take note.

TickerNameEPS RevisionsUniverse rank (4171)
FLWPFFlowr Corp1001
CRBPCorbus Pharmaceuticals Holdings Inc1001
CGCCanopy Growth Corporation89.27184
INSYInsys Therapeutics Inc87.25193
CWBHFCharlotte’s Web76.38317
IMLFFInMed Pharmaceuticals74.00345
MEDIFMediPharm Labs Corp.70.88391
ZBISFZenabis Global Inc67.79456
HEXOHexo Corp66.02495
TCNNFTrulieve Cannabis Corp.65.67506
KHRNFKhiron Life Sciences Corp64.85535
CURLFCuraleaf Holdings, Inc.56.65855
IIPRInnovative Industrial Properties Inc54.381027
CTSTCannTrust Holdings Inc44.332813
SPRWFSupreme Cannabis Company,44.052833
ACBAurora Cannabis44.052833
KSHBKush Bottles Inc42.393017
CRONCronos Group Inc36.553365
ACRGFAcreage Holdings33.383483
OGRMFOrganigram Holdings Inc32.973501
CBWTFAuxly Cannabis Group Inc.32.893504
ZYNEZynerba Pharmaceuticals Inc32.413530
TLRYTilray Inc31.813554
TGODFGreen Organic Dutchman27.233671
HRVOFHarvest One Cannabis27.183675
GTBIFGreen Thumb Industries Inc.27.133679
CNPOFCanopy Rivers Inc26.753685
APHAAphria Inc.16.293864
MMNFFMedmen Enterprises8.713967
PHCEFPharmacielo Ltd8.143975
VRNDFDelta 9 Cannabis Inc2.554025
VVCIFVivo Cannabis Inc0NA
EEVVFEve & Co IncNANA
SNNVFSunniva Inc.NANA
IVITFInvictus MD Strategies CorpNANA
GGBXFGreen Growth BrandNANA
CRLBFCresco Labs Inc.NANA
EMHTFEmerald Health TherapeuticsNANA
GWPHGW Pharmaceuticals PLCNANA
NCNNF48North Cannabis CorpNANA
CANNGeneral Cannabis CorpNANA
GGTTFGTEC HoldingsNANA
NDVAFIndiva LtdNANA
NXTTFNamaste Technologies Inc.NANA
NACNFNational Access Cannabis CorpNANA
NWKRFNewstrike BrandsNANA
RLLRFSugarBud Craft Growers CorpNANA
TBPMFTetra Bio Pharma IncNANA
WDDMFWeedMD IncNANA
WSLFFWestleaf IncNANA

On this EPS Revisions basis, 31 of the 50 companies received a score, but only 12 were acceptable for additional study.

The best two were Flowr Corp (FLWPF) and Corbus Pharmaceuticals Holdings Inc (CRBP), while the 12th best was Curaleaf Holdings, Inc. (CURLF). Next best, Innovative Industrial Properties Inc (IIPR) was close.

But the best of the rest scored only 2813 against the universe of 4,171 companies that received scores for this measure. That was CannTrust Holdings with a ranking of 2813. The others received very poor rankings.

The fourth illustration is for Revenue Revisions.

Of the 27 companies that we were able to score on this basis, from a universe of 4046 companies, there were seven, Flowr Corp (FLWPF), Corbus Pharmaceuticals Holdings Inc (CRBP), MediPharm Labs Corp. (MEDIF), Kush Bottles Inc (KSHB), Zynerba Pharmaceuticals Inc (ZYNE), Emerald Health Therapeutics (EMHTF), and GW Pharmaceuticals PLC ( GWPH), that received a T1 (tied for the maximum of 100).

TickerNameRevenue RevisionsUniverse rank (4046)
FLWPFFlowr Corp1001
CRBPCorbus Pharmaceuticals Holdings Inc1001
MEDIFMediPharm Labs Corp.1001
KSHBKush Bottles Inc1001
ZYNEZynerba Pharmaceuticals Inc1001
EMHTFEmerald Health Therapeutics1001
GWPHGW Pharmaceuticals PLC1001
CURLFCuraleaf Holdings, Inc.97.27122
IIPRInnovative Industrial Properties Inc93.48162
TLRYTilray Inc86.74229
CRLBFCresco Labs Inc.83.93257
TCNNFTrulieve Cannabis Corp.82.94265
KHRNFKhiron Life Sciences Corp72.58431
ACRGFAcreage Holdings67.60540
OGRMFOrganigram Holdings Inc66.21578
HEXOHexo Corp59.56834
CWBHFCharlotte’s Web59.05862
GTBIFGreen Thumb Industries Inc.49.151983
APHAAphria Inc.47.192439
MMNFFMedmen Enterprises42.483047
HRVOFHarvest One Cannabis34.973457
CGCCanopy Growth Corporation29.373598
CTSTCannTrust Holdings Inc20.443750
ACBAurora Cannabis9.953855
CBWTFAuxly Cannabis Group Inc.7.643880
SPRWFSupreme Cannabis Company,6.953895
CNPOFCanopy Rivers Inc6.183901
INSYInsys Therapeutics Inc0NA
CRONCronos Group Inc0NA
TGODFGreen Organic Dutchman0NA
VRNDFDelta 9 Cannabis Inc0NA
VVCIFVivo Cannabis Inc0NA
IMLFFInMed PharmaceuticalsNANA
ZBISFZenabis Global IncNANA
PHCEFPharmacielo LtdNANA
EEVVFEve & Co IncNANA
SNNVFSunniva Inc.NANA
IVITFInvictus MD Strategies CorpNANA
GGBXFGreen Growth BrandNANA
NCNNF48North Cannabis CorpNANA
CANNGeneral Cannabis CorpNANA
GGTTFGTEC HoldingsNANA
NDVAFIndiva LtdNANA
NXTTFNamaste Technologies Inc.NANA
NACNFNational Access Cannabis CorpNANA
NWKRFNewstrike BrandsNANA
RLLRFSugarBud Craft Growers CorpNANA
TBPMFTetra Bio Pharma IncNANA
WDDMFWeedMD IncNANA
WSLFFWestleaf IncNANA

Of these 27 companies out of 50 we scored and could rank; investors would take note that maybe 17 received scores and rankings that would be acceptable on this basis.

The fifth illustration is for Valuation, which we based on the consensus analyst estimates of Enterprise Value (EV) to EBITDA and EV to Sales.

TickerNameValuationUniverse rank (4909)
INSYInsys Therapeutics Inc1001
IVITFInvictus MD Strategies Corp87.38593
VRNDFDelta 9 Cannabis Inc81.38895
WDDMFWeedMD Inc68.711635
HRVOFHarvest One Cannabis67.871680
KSHBKush Bottles Inc58.882245
ZBISFZenabis Global Inc55.522473
CBWTFAuxly Cannabis Group Inc.54.202552
EEVVFEve & Co Inc48.133082
TCNNFTrulieve Cannabis Corp.44.733523
GGBXFGreen Growth Brand44.343562
CWBHFCharlotte’s Web39.533907
CURLFCuraleaf Holdings, Inc.39.123933
NACNFNational Access Cannabis Corp39.013940
SPRWFSupreme Cannabis Company,38.233980
APHAAphria Inc.37.584016
ACRGFAcreage Holdings37.394024
KHRNFKhiron Life Sciences Corp36.334088
OGRMFOrganigram Holdings Inc33.464209
SNNVFSunniva Inc.33.014233
NXTTFNamaste Technologies Inc.32.204257
MEDIFMediPharm Labs Corp.31.814272
VVCIFVivo Cannabis Inc27.774381
CANNGeneral Cannabis Corp27.744382
HEXOHexo Corp25.304419
EMHTFEmerald Health Therapeutics24.074452
MMNFFMedmen Enterprises21.784511
TGODFGreen Organic Dutchman21.294520
CRLBFCresco Labs Inc.16.824586
FLWPFFlowr Corp14.614618
IIPRInnovative Industrial Properties Inc14.234625
TLRYTilray Inc14.164626
CTSTCannTrust Holdings Inc11.934646
GWPHGW Pharmaceuticals PLC2.444696
CRBPCorbus Pharmaceuticals Holdings Inc0NA
ZYNEZynerba Pharmaceuticals Inc0NA
GTBIFGreen Thumb Industries Inc.0NA
CGCCanopy Growth Corporation0NA
ACBAurora Cannabis0NA
CNPOFCanopy Rivers Inc0NA
CRONCronos Group Inc0NA
PHCEFPharmacielo Ltd0NA
NCNNF48North Cannabis Corp0NA
GGTTFGTEC Holdings0NA
NWKRFNewstrike Brands0NA
RLLRFSugarBud Craft Growers Corp0NA
TBPMFTetra Bio Pharma Inc0NA
IMLFFInMed PharmaceuticalsNANA
NDVAFIndiva LtdNANA
WSLFFWestleaf IncNANA

 

Three of the companies made the rankings cut based on Valuation as an investment factor. These were Insys Therapeutics Inc (INSY), Invictus MD Strategies Corp (IVITF), and Delta 9 Cannabis Inc (VRNDF).

Thirty-four of the 50 were scored and ranked, but most scores were very low and clearly unacceptable.

The sixth illustration is for the Price-to-Earnings Ratio (PER).

We were able to score and rank only 22 of the 50 companies and only two stood out. Invictus MD Strategies Corp (IVITF) and WeedMD Inc (WDDMF) received rankings of 170 and 904 out of the scored universe of 3384 companies.

TickerNamePERUniverse rank (3384)
IVITFInvictus MD Strategies Corp93.27170
WDDMFWeedMD Inc70.70904
VRNDFDelta 9 Cannabis Inc57.321438
EEVVFEve & Co Inc49.501877
TCNNFTrulieve Cannabis Corp.49.092004
HRVOFHarvest One Cannabis47.492429
SNNVFSunniva Inc.47.382464
CRONCronos Group Inc46.662594
GGBXFGreen Growth Brand45.962665
OGRMFOrganigram Holdings Inc42.912890
CWBHFCharlotte’s Web42.292925
IIPRInnovative Industrial Properties Inc41.602956
APHAAphria Inc.39.773018
ZBISFZenabis Global Inc38.183055
MEDIFMediPharm Labs Corp.35.163117
HEXOHexo Corp31.923143
CNPOFCanopy Rivers Inc29.433182
CTSTCannTrust Holdings Inc29.223187
GTBIFGreen Thumb Industries Inc.28.033198
CRLBFCresco Labs Inc.22.793231
CURLFCuraleaf Holdings, Inc.13.063270
SPRWFSupreme Cannabis Company,9.193285
ACRGFAcreage Holdings0NA
VVCIFVivo Cannabis Inc0NA
EMHTFEmerald Health Therapeutics0NA
FLWPFFlowr Corp0.0NA
INSYInsys Therapeutics IncNANA
KSHBKush Bottles IncNANA
CBWTFAuxly Cannabis Group Inc.NANA
NACNFNational Access Cannabis CorpNANA
KHRNFKhiron Life Sciences CorpNANA
NXTTFNamaste Technologies Inc.NANA
CANNGeneral Cannabis CorpNANA
MMNFFMedmen EnterprisesNANA
TGODFGreen Organic DutchmanNANA
TLRYTilray IncNANA
GWPHGW Pharmaceuticals PLCNANA
CRBPCorbus Pharmaceuticals Holdings IncNANA
ZYNEZynerba Pharmaceuticals IncNANA
CGCCanopy Growth CorporationNANA
ACBAurora CannabisNANA
PHCEFPharmacielo LtdNANA
NCNNF48North Cannabis CorpNANA
GGTTFGTEC HoldingsNANA
NWKRFNewstrike BrandsNANA
RLLRFSugarBud Craft Growers CorpNANA
TBPMFTetra Bio Pharma IncNANA
IMLFFInMed PharmaceuticalsNANA
NDVAFIndiva LtdNANA
WSLFFWestleaf IncNANA

 

For these leaders, the scores benefited from estimates of 2019 and 2020 earnings that are unlikely to come true.

The seventh illustration is for Market Cap to forecasted EBITDA.

Only 12 of the 50 cannabis companies received a score that was related to estimated EBITDA. Where are the earnings? Of the scores we received, none would be acceptable on an investment basis. Market prices are simply excessive.

TickerNameMV/EBITUniverse rank (4023)
VRNDFDelta 9 Cannabis Inc49.412276
WDDMFWeedMD Inc46.842952
TCNNFTrulieve Cannabis Corp.45.703149
SNNVFSunniva Inc.45.243219
GTBIFGreen Thumb Industries Inc.40.393561
OGRMFOrganigram Holdings Inc35.233718
ZBISFZenabis Global Inc34.913728
IIPRInnovative Industrial Properties Inc33.123755
MEDIFMediPharm Labs Corp.32.633761
CWBHFCharlotte’s Web25.923821
ACRGFAcreage Holdings22.783841
CRLBFCresco Labs Inc.15.063875
CTSTCannTrust Holdings Inc0NA
CURLFCuraleaf Holdings, Inc.0NA
IVITFInvictus MD Strategies CorpNANA
EEVVFEve & Co IncNANA
HRVOFHarvest One CannabisNANA
CRONCronos Group IncNANA
GGBXFGreen Growth BrandNANA
APHAAphria Inc.NANA
HEXOHexo CorpNANA
CNPOFCanopy Rivers IncNANA
SPRWFSupreme Cannabis Company,NANA
VVCIFVivo Cannabis IncNANA
EMHTFEmerald Health TherapeuticsNANA
FLWPFFlowr CorpNANA
INSYInsys Therapeutics IncNANA
KSHBKush Bottles IncNANA
CBWTFAuxly Cannabis Group Inc.NANA
NACNFNational Access Cannabis CorpNANA
KHRNFKhiron Life Sciences CorpNANA
NXTTFNamaste Technologies Inc.NANA
CANNGeneral Cannabis CorpNANA
MMNFFMedmen EnterprisesNANA
TGODFGreen Organic DutchmanNANA
TLRYTilray IncNANA
GWPHGW Pharmaceuticals PLCNANA
CRBPCorbus Pharmaceuticals Holdings IncNANA
ZYNEZynerba Pharmaceuticals IncNANA
CGCCanopy Growth CorporationNANA
ACBAurora CannabisNANA
PHCEFPharmacielo LtdNANA
NCNNF48North Cannabis CorpNANA
GGTTFGTEC HoldingsNANA
NWKRFNewstrike BrandsNANA
RLLRFSugarBud Craft Growers CorpNANA
TBPMFTetra Bio Pharma IncNANA
IMLFFInMed PharmaceuticalsNANA
NDVAFIndiva LtdNANA
WSLFFWestleaf IncNANA

 

At least the analysts have reported an estimated EBITDA for those 12 companies.

The eighth illustration is related to Book Value.

We scored 47 of the 50 cannabis companies based on Market Price to Book Value. Our analysis shows 29 would be acceptable for potential investment. Green Growth Brand (GGBXF) and Vivo Cannabis Inc (VVCIF) received a maximum score of 100 (T1 ranking) – but there so many other non-cannabis companies with this T1 ranking — in the universe of 5024 scored companies.

At 24th best, CannTrust received a universal ranking of 960, which out of a possible 5024 is very good, which means that almost half the cannabis companies have outstanding book value per share because their market valuations are excessive.

TickerNameBookValueUniverse rank (5024)
GGBXFGreen Growth Brand1001
VVCIFVivo Cannabis Inc1001
SPRWFSupreme Cannabis Company,83.95171
VRNDFDelta 9 Cannabis Inc81.86187
EMHTFEmerald Health Therapeutics73.01260
TCNNFTrulieve Cannabis Corp.72.92267
INSYInsys Therapeutics Inc72.77273
MMNFFMedmen Enterprises72.68278
CRLBFCresco Labs Inc.72.66280
IIPRInnovative Industrial Properties Inc72.65284
GTBIFGreen Thumb Industries Inc.72.54304
CURLFCuraleaf Holdings, Inc.72.40311
TLRYTilray Inc68.86434
CBWTFAuxly Cannabis Group Inc.68.67441
NWKRFNewstrike Brands67.08509
NACNFNational Access Cannabis Corp66.14545
KSHBKush Bottles Inc65.29593
WDDMFWeedMD Inc65.06614
ACBAurora Cannabis64.82631
CANNGeneral Cannabis Corp64.71639
IVITFInvictus MD Strategies Corp64.62644
APHAAphria Inc.64.43661
EEVVFEve & Co Inc64.34669
HRVOFHarvest One Cannabis63.21744
CWBHFCharlotte’s Web61.74861
NDVAFIndiva Ltd61.69866
TGODFGreen Organic Dutchman60.63940
SNNVFSunniva Inc.60.55951
CTSTCannTrust Holdings Inc60.47960
CGCCanopy Growth Corporation56.531386
NCNNF48North Cannabis Corp52.981955
HEXOHexo Corp52.142091
CRBPCorbus Pharmaceuticals Holdings Inc51.122268
CRONCronos Group Inc48.932751
CNPOFCanopy Rivers Inc48.242887
GGTTFGTEC Holdings48.112911
NXTTFNamaste Technologies Inc.45.263507
ZBISFZenabis Global Inc44.383662
ZYNEZynerba Pharmaceuticals Inc42.553929
GWPHGW Pharmaceuticals PLC41.764028
RLLRFSugarBud Craft Growers Corp39.894201
FLWPFFlowr Corp39.244241
OGRMFOrganigram Holdings Inc29.194670
IMLFFInMed Pharmaceuticals28.284696
PHCEFPharmacielo Ltd26.184737
KHRNFKhiron Life Sciences Corp9.184873
MEDIFMediPharm Labs Corp.0.0NA
ACRGFAcreage Holdings0.0NA
TBPMFTetra Bio Pharma Inc0.0NA
WSLFFWestleaf IncNANA

 

The ninth illustration is for Profitability.

Thirty-three of the 50 companies received a score based on estimated net income and estimated EBITDA to Sales. But of these, only one was deemed possibly acceptable for investment purposes based on this factor.

For Profitability, the best company is Innovative Industrial Properties Inc (IIPR), which reported strong earnings this month. The stock ranked #79 of the 4807 companies we monitor weekly.

TickerNameProfitabilityUniverse rank (4807)
IIPRInnovative Industrial Properties Inc96.6479
CWBHFCharlotte’s Web71.361219
CRONCronos Group Inc64.581820
TCNNFTrulieve Cannabis Corp.63.181975
OGRMFOrganigram Holdings Inc62.212090
ZBISFZenabis Global Inc59.492499
APHAAphria Inc.52.233694
CRLBFCresco Labs Inc.49.923970
CTSTCannTrust Holdings Inc49.584009
CURLFCuraleaf Holdings, Inc.47.214223
GTBIFGreen Thumb Industries Inc.47.024231
KSHBKush Bottles Inc45.424288
SNNVFSunniva Inc.41.914364
VVCIFVivo Cannabis Inc40.414381
TLRYTilray Inc39.554396
INSYInsys Therapeutics Inc36.844424
SPRWFSupreme Cannabis Company,34.254444
NXTTFNamaste Technologies Inc.34.184445
ACBAurora Cannabis31.294457
MMNFFMedmen Enterprises28.684469
EMHTFEmerald Health Therapeutics27.564476
FLWPFFlowr Corp26.524482
CGCCanopy Growth Corporation26.414483
ACRGFAcreage Holdings26.324484
HEXOHexo Corp21.864506
CBWTFAuxly Cannabis Group Inc.21.044514
HRVOFHarvest One Cannabis20.754516
TGODFGreen Organic Dutchman19.854519
GWPHGW Pharmaceuticals PLC18.304528
NWKRFNewstrike Brands10.904570
CANNGeneral Cannabis Corp10.594572
IVITFInvictus MD Strategies Corp4.714607
NACNFNational Access Cannabis Corp1.894619
CRBPCorbus Pharmaceuticals Holdings Inc0NA
GGTTFGTEC Holdings0NA
ZYNEZynerba Pharmaceuticals Inc0NA
TBPMFTetra Bio Pharma Inc0NA
GGBXFGreen Growth BrandNANA
VRNDFDelta 9 Cannabis IncNANA
WDDMFWeedMD IncNANA
EEVVFEve & Co IncNANA
NDVAFIndiva LtdNANA
NCNNF48North Cannabis CorpNANA
CNPOFCanopy Rivers IncNANA
RLLRFSugarBud Craft Growers CorpNANA
IMLFFInMed PharmaceuticalsNANA
PHCEFPharmacielo LtdNANA
KHRNFKhiron Life Sciences CorpNANA
MEDIFMediPharm Labs Corp.NANA
WSLFFWestleaf IncNANA

 

While just one of the 50 companies received an acceptable Profitability score Charlotte’s Web (CWBHF) was close with a 1219 ranking (improved this week from 1221) out of the universe of 4807 that we were able to score.

Only six cannabis companies received Profitability scores in the top 50% of companies and most were very lowly ranked. Herein lies a problem with market perception tied to growing capacity for the companies that have cultivation and sales licenses.

I have written this before: growing cannabis is not like growing lettuce. These companies can employ all the PhD’s and agriculture scholars they want for marketing purposes; but almost none of them can compete with the grey market for product quality. Investors are wondering why their products, in many cases, are not selling? It is simply because knowledgeable clients will not accept poor quality no matter how beautiful the packaging.

In our last article, we referred to the lack of green (i.e. Net Income and EBITDA). None of these companies can walk the talk. They produce brown bud.

The tenth illustration relates to Financial Situation. There are four factors we considered: (i) Total Debt-to-Total Equity (ii) EBITDA-to-Interest Expense (iii) Net Debt-to-EBITDA, and (iv) Cash Flow-to-Total Liabilities.

TickerNameFinancialsUniverse rank (5036)
MEDIFMediPharm Labs Corp.1001
CNPOFCanopy Rivers Inc98.92112
CWBHFCharlotte’s Web94.62161
GWPHGW Pharmaceuticals PLC92.34200
FLWPFFlowr Corp75.201007
APHAAphria Inc.71.011220
CGCCanopy Growth Corporation70.211268
ACRGFAcreage Holdings69.831293
IIPRInnovative Industrial Properties Inc68.801361
TCNNFTrulieve Cannabis Corp.68.041403
EMHTFEmerald Health Therapeutics67.321452
TGODFGreen Organic Dutchman66.921476
SPRWFSupreme Cannabis Company,65.061599
CURLFCuraleaf Holdings, Inc.64.711622
NWKRFNewstrike Brands63.951676
HRVOFHarvest One Cannabis62.941734
KSHBKush Bottles Inc62.211788
CRLBFCresco Labs Inc.62.191789
IMLFFInMed Pharmaceuticals61.881815
CBWTFAuxly Cannabis Group Inc.61.311855
GTBIFGreen Thumb Industries Inc.61.251860
OGRMFOrganigram Holdings Inc60.711896
CTSTCannTrust Holdings Inc60.141925
ZYNEZynerba Pharmaceuticals Inc60.031932
HEXOHexo Corp59.911940
NXTTFNamaste Technologies Inc.59.521980
IVITFInvictus MD Strategies Corp59.431989
CRBPCorbus Pharmaceuticals Holdings Inc56.582207
VVCIFVivo Cannabis Inc55.792268
TBPMFTetra Bio Pharma Inc54.672343
NCNNF48North Cannabis Corp51.882605
TLRYTilray Inc51.722623
ZBISFZenabis Global Inc50.692764
PHCEFPharmacielo Ltd50.002898
INSYInsys Therapeutics Inc48.363231
EEVVFEve & Co Inc45.843734
CRONCronos Group Inc44.963890
ACBAurora Cannabis44.513968
CANNGeneral Cannabis Corp38.264497
SNNVFSunniva Inc.37.154547
MMNFFMedmen Enterprises36.164587
GGTTFGTEC Holdings35.124640
NACNFNational Access Cannabis Corp28.584862
GGBXFGreen Growth Brand26.864891
VRNDFDelta 9 Cannabis IncNANA
WDDMFWeedMD IncNANA
NDVAFIndiva LtdNANA
RLLRFSugarBud Craft Growers CorpNANA
KHRNFKhiron Life Sciences CorpNANA
WSLFFWestleaf IncNANA

 

There were 44 of the 50 companies that received a Financials Quality score: Five were acceptable.

MediPharm Labs Corp. (MEDIF), Canopy Rivers Inc (CNPOF), Charlotte’s Web (CWBHF) and GW Pharmaceuticals PLC (GWPH) received extremely good rankings of T1, 112, 161 and 200 respectively out of the universe of 5036 we scored. Excellent.

Many more of the Cannabis 50 were in the ‘comfortable’ range, which reflects their relatively strong capitalization as speculators rushed into private placements with their high-risk mindset. However; that situation may be short-lived if the industry’s extremely high burn rates are not appropriately managed.

Some of the big names, Aurora Cannabis (3968), Cronos Group Inc (3890), General Cannabis Corp (44497), Medmen Enterprises (4587) and Green Growth Brand (4891), received very low Financial Quality rankings. Too many liabilities and not enough earnings at this point.

The eleventh illustration is of the consensus scoring of all the <strong>Analysts</strong> who follow the almost 5100 companies that we score and rank on a relative basis each week based on data from Thomson Reuters.

There were 42 companies that received an Analyst Consensus score. As more analysts follow the remaining eight companies that were unranked, they too will be accorded a consensus score and our ranking.

TickerNameConsensusUniverse rank (4327)
IVITFInvictus MD Strategies Corp1001
TBPMFTetra Bio Pharma Inc1001
ZBISFZenabis Global Inc1001
SNNVFSunniva Inc.1001
GGBXFGreen Growth Brand1001
VRNDFDelta 9 Cannabis Inc1001
KHRNFKhiron Life Sciences Corp1001
MEDIFMediPharm Labs Corp.85.71188
HRVOFHarvest One Cannabis85.71188
CBWTFAuxly Cannabis Group Inc.85.71188
VVCIFVivo Cannabis Inc85.71188
WDDMFWeedMD Inc85.71188
ACRGFAcreage Holdings82.86364
IIPRInnovative Industrial Properties Inc80.95428
MMNFFMedmen Enterprises80.95428
CWBHFCharlotte’s Web79.59565
SPRWFSupreme Cannabis Company,79.59565
OGRMFOrganigram Holdings Inc79.22595
CTSTCannTrust Holdings Inc79.22595
TCNNFTrulieve Cannabis Corp.78.57612
GWPHGW Pharmaceuticals PLC78.02695
CRBPCorbus Pharmaceuticals Holdings Inc77.78701
CNPOFCanopy Rivers Inc77.14722
KSHBKush Bottles Inc77.14722
ZYNEZynerba Pharmaceuticals Inc76.19818
GTBIFGreen Thumb Industries Inc.75.51892
FLWPFFlowr Corp71.431105
EMHTFEmerald Health Therapeutics71.431105
CURLFCuraleaf Holdings, Inc.71.431105
CRLBFCresco Labs Inc.71.431105
IMLFFInMed Pharmaceuticals71.431105
HEXOHexo Corp71.431105
PHCEFPharmacielo Ltd71.431105
EEVVFEve & Co Inc71.431105
ACBAurora Cannabis71.431105
RLLRFSugarBud Craft Growers Corp71.431105
APHAAphria Inc.66.232063
CGCCanopy Growth Corporation63.032367
TGODFGreen Organic Dutchman60.002630
INSYInsys Therapeutics Inc60.002630
TLRYTilray Inc48.053553
CRONCronos Group Inc27.274274
NWKRFNewstrike BrandsNANA
NXTTFNamaste Technologies Inc.NANA
NCNNF48North Cannabis CorpNANA
CANNGeneral Cannabis CorpNANA
GGTTFGTEC HoldingsNANA
NACNFNational Access Cannabis CorpNANA
NDVAFIndiva LtdNANA
WSLFFWestleaf IncNANA

 

Analyst ratings are not our scores or rankings. We are analyzing and reporting data based on what the industry analysts are reporting, so please don’t shoot the messenger.

The ranking out of a universe of 4327 ran from a best possible T1 for seven companies down to Cronos Group (CRON) at 4274 in the total universe, which was really bad. Tilray (TLRY) was also poorly rated by analysts with a consensus score that ranked just 3553 in our 4327 ranked universe.

On the other hand, the T1 top ranked cannabis companies were: Invictus MD Strategies Corp (IVITF), Tetra Bio Pharma Inc (TBPMF), Zenabis Global Inc (ZBISF), Sunniva Inc. (SNNVF), Green Growth Brand (GGBXF), Delta 9 Cannabis Inc (VRNDF), and Khiron Life Sciences Corp (KHRNF). Five more were ranked T188, which means 12 of 50 were ranked T188 or better out of 4327 companies. Moreover, a total of 26 of the 50 were ranked 892 or better.

The only interpretation is that many of these analysts are ignoring fundamentals and are probably too close to the investment banking side of the business where bad-mouthing a company results in zero investment banking work.

In time there will be more analysts covering these cannabis companies, and more companies will be covered. The data, scoring and ranking will continually change. If anything, these analysts, like their legal and accounting colleagues, are likely to become over time much more objective and less promotionally oriented in their assessments.

The 12th and final illustration in our study series is our proprietary composite score for Growth.

We were able to rank 46 of the 50 companies of a ranked universe that totaled 5091.

TickerNameGROWTH COMPUniverse rank (5091)
FLWPFFlowr Corp87.723
MEDIFMediPharm Labs Corp.86.986
CWBHFCharlotte’s Web80.6430
IIPRInnovative Industrial Properties Inc80.4132
TCNNFTrulieve Cannabis Corp.78.3046
CURLFCuraleaf Holdings, Inc.78.2647
HEXOHexo Corp77.2457
EMHTFEmerald Health Therapeutics71.53179
CRLBFCresco Labs Inc.71.23188
GTBIFGreen Thumb Industries Inc.70.47211
ZBISFZenabis Global Inc68.72264
OGRMFOrganigram Holdings Inc66.84345
ACRGFAcreage Holdings66.80346
APHAAphria Inc.65.81396
CTSTCannTrust Holdings Inc57.191081
SPRWFSupreme Cannabis Company,55.961204
CRONCronos Group Inc55.601235
SNNVFSunniva Inc.53.951482
EEVVFEve & Co Inc52.291768
IVITFInvictus MD Strategies Corp51.541924
GGBXFGreen Growth Brand51.142028
KSHBKush Bottles Inc50.932073
CRBPCorbus Pharmaceuticals Holdings Inc50.232249
KHRNFKhiron Life Sciences Corp45.892915
VRNDFDelta 9 Cannabis Inc45.512938
CGCCanopy Growth Corporation45.172957
TLRYTilray Inc44.742981
VVCIFVivo Cannabis Inc43.073084
GWPHGW Pharmaceuticals PLC42.033129
ZYNEZynerba Pharmaceuticals Inc40.493208
CNPOFCanopy Rivers Inc39.753238
INSYInsys Therapeutics Inc37.473357
CBWTFAuxly Cannabis Group Inc.32.223664
ACBAurora Cannabis31.773690
MMNFFMedmen Enterprises30.853743
TGODFGreen Organic Dutchman29.183833
PHCEFPharmacielo Ltd23.354003
IMLFFInMed Pharmaceuticals17.894131
HRVOFHarvest One Cannabis16.614156
NXTTFNamaste Technologies Inc.4.694794
NWKRFNewstrike Brands3.744905
TBPMFTetra Bio Pharma Inc2.734970
NCNNF48North Cannabis Corp2.594976
CANNGeneral Cannabis Corp2.445004
GGTTFGTEC Holdings1.765033
NACNFNational Access Cannabis Corp1.525045
WDDMFWeedMD Inc0NA
RLLRFSugarBud Craft Growers Corp0NA
NDVAFIndiva Ltd0NA
WSLFFWestleaf Inc0NA

 

Using the raw data at hand, our studies showed that 14 of the 50 cannabis companies were ranked 396 or better out of 5091, which appears to be outstanding. We report them objectively as we rank all companies in our 5100 ranked company universe the same way; however, there is a caveat. We do know there is a sell-side analyst bias to the data, much like there was in 1999-2000 as the internet industry emerged.

Seasoned companies are also ranked for Composite Value and Yield, but such analysis is unnecessary for cannabis at this point.

We believe that as the industry is in the emerging growth phase, we must pay attention to our weekly Fundamental scoring and ranking system results; but we know that for many months to come our proprietary Technical algorithms will be more important for decision-support purposes.

Like our readers and clients, we are students of the market. Every week is a learning experience and we hope this one was for you as well.

As we broaden and deepen our research, we anticipate offering a cannabis portfolio as an option to clients.

 

 


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