viridian chart of the week

In our January 2024 outlook, we asserted that cannabis equity analysts, having been burned by the need for continual downward revisions in 2023, were undershooting in their 2024 & 2025 estimates. First quarter results are now in for ten major MSOs, and the results lend credence to our claims....

This week’s Chart of the Week explores the relationship between market cap., liquidity, and valuation.  In the current capital-constrained environment, a logical hypothesis would be that valuation metrics should be higher for companies with more robust liquidity, as they have less...

A recent report by Viridian Capital Advisors explores the valuation and growth prospects of cannabis stocks against those of well-established sectors like alcohol, tobacco, pharmaceuticals, healthcare products and food. The report looks closely at the value and growth of...

The chart shows Enterprise Value to 2024 consensus EBITDA multiples on the vertical axis against 2023-2025 Revenue CAGR on the horizontal axis for thirteen different industries. We last explored this topic in the 6/24/22 Viridian Capital Chart of the Week and wanted to explore the impact of the...

Most cannabis industry observers realize that valuations and valuations multiples for the major MSOs are up Y/O/Y, spurred by the promise of rescheduling.   The chart shows the Enterprise Value to Consensus Next twelve-month (NTM) EBITDA multiples of fourteen major MSOs from 4/14/23 (light...

A recent analysis by Viridian Capital Advisors provides intriguing insights into the liquidity of cannabis companies, indicating both advancements and setbacks in the sector. Despite an overall increase in average daily dollar trading volume, some of the industry's giants are facing...

Viridian noted in a Chart of the Week published in November 2022 that increased “consolidation is inevitable” in the Cannabis industry. What does the latest data show? The green bars in the graph show data from BDSA that Viridian presented at the Green Market Finance Summit at NECANN...

Earnings for the 4th quarter of 2023 have largely been released, and the results were generally positive, with a few exceptions. Unlike what we expected, the market reacted rationally to the EBITDA beats with a statistically significant .75 correlation between EBITDA surprises and stock performance...

Cannabis Stocks have been trending downward for two weeks, but the MJUS ETF rebalancing efforts gave some of them an additional shove. The Amplify U.S. Alternative Harvest ETF (ARCA: MJUS) is an actively managed ETF that seeks long-term capital growth through investing in the securities of U....

Florida is often considered one of the most critical states in terms of growing legal cannabis sales. The State is estimated to have approximately $2.6B in 2023 legal sales, representing a per capita consumption of about $118 based on the total population or $145 based on adult population. The...

The first week of 2024 saw significant stock price appreciation for most of the 30 stocks Viridian Capital Advisors credit ranks weekly. As a proxy, the MSOS ETV rose 12.84%, the sharpest uptick since the HHS announcement at the end of August. There was no particular news to account for the uptick...

This week’s Viridian Chart of the Week looks at the stock prices of the leaders in several cannabis sectors, including Agriculture Technology, Cultivation and Retail, Psychedelics, and Financial Services, relative to their 52-week highs and lows. The chart is arranged in increasing order of...

The Viridian Credit Tracker model is a valuable tool for investors and companies alike to gauge the credit quality of cannabis companies. The model utilizes 11 market-based and financial statement-based variables to measure four critical attributes of credit quality: Liquidity, Leverage,...

The MSOS ETF is now up 41.4% from the August 30, 2023, HHS rescheduling announcement, but it has fallen significantly from its peak gain of 85.0% in mid-September. The Viridian Chart of the Week looks at the potential upside and downside of the top 15 MSOs concerning a DEA announcement on...

2023 has been a disappointing year for cannabis, and according to consensus estimates, the top ten MSOs will have a 2023 revenue growth of only 1% and an EBITDA decline of 1% compared to 2022. 2023 has been a disappointing year for cannabis, and according to consensus estimates, the top ten...