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Summary
- Canopy Growth stocks yielded 34 per cent returns in 2020. The stock is offering earnings per share of C$ 0.59.
- Aphria stocks are up by 50 per cent YTD. The pot firm stocks are trading actively across the Canadian market on the back of its merger report with Tilray Inc.
- Both cannabis stocks have returned over 50 per cent in the last three months, led by US states authorizing the use of recreational marijuana.
The Canadian cannabis industry is witnessing some heavy restructuring and M&A activities. Top pot companies are setting the ground for rapid expansion across US markets. Canopy Growth Corporation (TSX:WEED) has signed a C$ 297-million agreement to sell its complete stake in Canopy Rivers Inc (TSX:RIV) on Monday, December 21. Canopy Rivers’ management will now enter the US markets with a new name, as per media reports.
Last week, Aphria Inc. (TSX:APHA) and Tilray Inc. (TLRY: US or NASDAQ: TLRY) confirmed their merger report, which is set to create the largest cannabis firm in the world.
Let us take a glance at the stocks movements of these two cannabis stocks:
Canopy Growth Corporation (TSX:WEED)
Current Stock Price: C$ 32.83
Headquartered in Smiths Falls, this cannabis producer firm stock has shot up over 54 per cent in the last three months, guided by recent cannabis rally following the election of US president-elect Joe Biden, who plans to legalize recreational cannabis federally.
The pot stock has surged nearly 34 per cent this year and stocks are placed among TMX’s top healthcare companies that have surpassed their peers with the largest gains in the last one month. WEED has a present market cap of C$ 12.22 million.
The marijuana stock holds an earnings-per-share (EPS) of C$ 0.59. Its price-to-earnings (P/E) ratio stands at 56.40. The stock has a current price-to-book (P/B) ratio of 2.485 and a debt-to-equity (D/E) of 0.14, as per TMX data.
In the second quarter of fiscal 2021, the company reported a record net revenue of C$ 135 million, led by a surge in Canadian recreational revenue. The cannabis company posted an adjusted EBITDA loss of C$ 85.7 million indicates a 43 per cent year-over-year (YoY) recovery from C$150.4 million in Q2 FY2020.
Aphria Inc. (TSX:APHA)
Current Stock Price: C$ 9.24
Aphria stock has swelled over 53 per cent in the last three months and yielded 50 per cent returns YTD. The company also ranks among TMX’s top healthcare companies.
The mid-cap stock is ranked among TMX’s top volume stocks that have traded actively across the TSX and TSXV in the last 10 days. The cannabis scrips have a 10-day average trading volume of 4 million units.
Aphria stocks hold a present price-to-cashflow (P/CF) ratio of 2,681.60 and a P/B ratio of 1.478. Its current market capitalization stands at approximately C$ 2.75 billion, with a D/E ratio of 0.23, according to TMX data.
In the first quarter of FY21 ended on 31 August 2020, the Ontario-based recreational cannabis pot company posted net revenue of C$ 145.7 million, a 15.5 per cent surge YoY. Aphria’s net recreational marijuana revenue was C$ 62.5 million, an astonishing 103 per cent increase YoY.
