Cannabis comp tables as of Dec. 17 – now excluding excess cash

There is no excess cash in cannabis. With perhaps one or two exceptions, any net cash (cash – debt) on a company’s balance sheet is needed to ensure survival or for investment and cannot be considered “excess” and returnable to shareholders.

In our effort to continue making our content even more relevant and useful to our audience, the comp table now computes enterprise value as the greater of market capitalization or market capitalization plus net debt. This is a middle road, which does not penalize companies that have high gross debt and high gross cash levels, but it also reflects that companies with high net cash levels will be using that cash in their operations.

We also walked through the implications of the many complex capital structures for cannabis companies, driven by warrants, options, convertible debt and pending acquisitions. Most companies have been adjusted for future dilution and debt levels by including in-the-money warrants, options, convertible debt and shares issued in pending acquisitions.

As with most comp tables, this tool provides a benchmark for private investors to evaluate existing and future investments as well as a menu for public investors to peruse. Tracking the multiples and estimates over time can show how the returns of the stock are decomposed in changes in expectations (sales and EBITDA estimates) and the cost of capital (i.e., multiples applied to those estimates).

It organizes companies into groups based on the main business model (vertically integrated operators, hemp/CBD, pharmaceutical, and ancillary products and services) and lists the market capitalization, enterprise value (EV), sales and EBITDA estimates, and the EV/sales and EV/EBITDA multiples on those projections.

Nonmeaningful outliers are removed before the averages by group are calculated.

We are continuing to improve the comp table, and planning some more changes in the coming weeks. Are there companies missing from this table? A metric you believe is relevant to include? A feature you’d like to see?

Email us at [email protected] and let us know.

Download the PDF or the sortable spreadsheet for more details on each company, including estimates for 2020 and 2021.

Priced as of Dec. 17, 2019.

Name Ticker Market Cap Enterprise Value EV/Sales 2020E EV/EBITDA 2020E Sales 2020E Sales Growth 2020E EBITDA Margin 2020E
Vertically Integrated Operators
48North Cannabis Corp. NCNNF  $            47  $               47 4.7X 19.0X  $           10 181% 9%
4Front Ventures Corp. FFNTF  $          210  $            255 5.5X 12.7X  $           47 153% 17%
Acreage Holdings Inc. ACRGF  $          821  $            821 5.1X 24.0X  $         162 143% 9%
Aphria Inc. APHA-TSE  $       1,305  $         1,305 3.9X 20.8X  $         331 60% 12%
Aurora Cannabis Inc. ACB  $       2,429  $         2,779 10.9X n.m.  $         256 84% 0%
CannTrust Holdings Inc. TRST-CA  $          153  $            153 4.2X n.m.  $           36 50% -18%
Canopy Growth Corp. CGC  $       7,715  $         7,715 27.4X n.m.  $         282 84% -40%
Cansortium Inc. CNTMF  $            83  $            172 5.7X 6.9X  $           30 215% 27%
Columbia Care Inc. CCHWF  $          616  $            616 7.5X 11.9X  $           82 287% 16%
Cresco Labs Inc. CRLBF-US  $       2,612  $         2,612 19.8X 17.3X  $         132 330% 27%
Cronos Group Inc. CRON  $       2,580  $         2,580 n.m. n.m.  $           36 244% -36%
Curaleaf Holdings Inc. CURLF  $       3,982  $         4,065 17.1X 15.5X  $         238 293% 28%
Flowr Corp. FLWPF  $          173  $            173 19.3X 37.1X  $             9 743% 6%
Green Organic Dutchman Holdings Ltd. TGODF  $          158  $            158 14.3X n.m.  $           11 509% -14%
Green Thumb Industries Inc. GTBIF  $       1,666  $         1,728 8.0X 14.0X  $         217 119% 26%
GTEC Holdings Ltd. GTEC-TSX  $            16  $               21 3.7X 1.0X  $             6 645% 52%
Harvest Health & Recreation Inc. HRVSF  $          913  $         1,056 8.9X 7.6X  $         119 447% 21%
Harvest One Cannabis Inc. HRVOF  $            22  $               22 1.5X 33.1X  $           15 153% 2%
HEXO Corp. HEXO  $          544  $            544 11.4X n.m.  $           48 95% -26%
iAnthus Capital Holdings Inc. ITHUF  $          232  $            336 3.7X 7.4X  $           91 184% 18%
Medicine Man Technologies Inc. MDCL  $          275  $            383 2.3X 10.7X  $         170 5% 20%
MedMen Enterprises Inc. MMNFF  $          415  $            914 5.2X n.m.  $         176 61% -11%
MJardin Group Inc. MJARF  $            11  $            148 5.7X 25.0X  $           26 84% 12%
OrganiGram Holdings Inc. OGI  $          403  $            404 5.3X 11.0X  $           77 70% 28%
Planet 13 Holdings Inc. PLNHF  $          240  $            240 3.7X 8.7X  $           64 46% 29%
Tilray Inc. TLRY  $       1,998  $         2,278 13.1X n.m.  $         174 79% -12%
Trulieve Cannabis Corp. TCNNF  $       1,148  $         1,220 4.9X 7.6X  $         250 59% 40%
Village Farms International Inc. VFF  $          318  $            392 2.0X 7.0X  $         192 39% 21%
Vireo Health International Inc. VREOF  $            97  $               97 3.1X 6.6X  $           31 203% 16%
WeedMD Inc. WMD-CA  $            65  $               85 3.9X 4.8X  $           22 281% 22%
Average – Vertically Integrated Operators  $       1,042  $         1,111 8.0X 14.1X  $         111 198% 10%
Name Ticker Market Cap Enterprise Value EV/Sales 2020E EV/EBITDA 2020E Sales 2020E Sales Growth 2020E EBITDA Margin 2020E
Hemp / CBD
cbdMD Inc. YCBD  $            80  $               80 0.9X n.m.  $           91 147% -2%
Charlotte’s Web Holdings Inc. CWBHF  $          877  $            877 6.0X 47.6X  $         147 48% 13%
CV Sciences Inc. CVSI  $          127  $            127 1.7X 8.9X  $           75 34% 19%
Elixinol Global Ltd. ELLXF  $            73  $               73 2.1X n.m.  $           34 31% -26%
Emerald Health Therapeutics Inc. EMHTF  $            36  $               52 1.2X n.m.  $           44 77% -34%
Green Growth Brands Inc. GGBXF  $          211  $            311 1.4X 13.4X  $         223 282% 10%
Neptune Wellness Solutions Inc. NEPT-CA  $          263  $            263 2.9X 11.7X  $           91 235% 25%
Average – Hemp / CBD  $          238  $            255 2.3X 20.4X  $         101 122% 1%
Name Ticker Market Cap Enterprise Value EV/Sales 2020E EV/EBITDA 2020E Sales 2020E Sales Growth 2020E EBITDA Margin 2020E
Pharmaceutical
Arena Pharmaceuticals Inc. ARNA  $       2,449  $         2,449 n.m. n.m.  $           12 -99% n.m.
Cara Therapeutics Inc. CARA  $          808  $            808 30.4X n.m.  $           27 28% n.m.
Corbus Pharmaceuticals Holdings Inc. CRBP  $          331  $            331 33.2X n.m.  $           10 -74% n.m.
GW Pharmaceuticals Plc GWPH  $       3,259  $         3,259 6.0X n.m.  $         547 81% 11%
MediPharm Labs Corp. MEDIF  $          343  $            343 2.0X 7.0X  $         172 60% 28%
Ultragenyx Pharmaceutical Inc. RARE  $       2,595  $         2,595 13.7X n.m.  $         189 89% -177%
Zynerba Pharmaceuticals Inc. ZYNE  $          145  $            145 n.m. n.m.  $            – n.m. n.m.
Average – Pharmaceutical  $       1,419  $         1,419 17.1X 7.0X  $         137 14% -46%
Name Ticker Market Cap Enterprise Value EV/Sales 2020E EV/EBITDA 2020E Sales 2020E Sales Growth 2020E EBITDA Margin 2020E
Ancillary Products & Services
Akerna Corp. KERN-USA  $          142  $            142 5.6X n.m.  $           26 50% n.m.
Canopy Rivers Inc. CNPOF  $          179  $            179 13.8X 2.9X  $           13 -2% 469%
Greenlane Holdings Inc. GNLN  $          122  $            122 0.6X n.m.  $         191 2% -3%
Innovative Industrial Properties Inc. IIPR  $       1,022  $            848 8.8X 10.6X  $           96 136% 84%
KushCo Holdings Inc. KSHB  $          172  $            200 0.8X n.m.  $         257 47% 0%
MediPharm Labs Corp. LABS-CA  $          340  $            340 2.0X 7.0X  $         172 60% 28%
New Age Beverages Corp. NBEV  $          145  $            160 0.5X n.m.  $         295 13% -1%
Scotts Miracle-Gro Co. SMG  $       5,934  $         7,567 2.3X 12.8X  $     3,345 5% 18%
Supreme Cannabis Co. Inc. FIRE-CA  $          171  $            210 2.1X 12.1X  $         102 99% 17%
Valens GroWorks Corp. VGWCF  $          310  $            310 2.4X 5.2X  $         132 167% 45%
Average – Ancillary Products & Services  $          854  $         1,008 3.9X 8.4X  $         463 58% 73%

Source: FactSet financial data and analytics, company filings.