AUS
NZ
UK
CA
USA
IND
Highlights
- In Q3 2023, Tilray's net revenue amounted to US$ 145.6 million.
- Tilray maintained a strong balance sheet, with US$ 408.3 million in marketable securities and cash.
- The net revenue of Canopy Growth amounted to C$ 101 million, down by 28 per cent YoY.
Cannabis is one industry that has unquestionably gone from a bubble area to a completely deflated one. Following the government legalisation of cannabis in Canada, the valuations of many companies soared. That said, many people have moved through the subsequent bubble, which persisted for most of 2018 and some of 2019.
Nevertheless, this sector has also seen recent major development, rising at a respectable clip, with prices that are (finally) starting to catch up with reality.
Let's see two Canadian cannabis stocks to assess their performance:
Tilray Brands Inc. (TSX:TLRY)
The company is involved in producing recreational and medical cannabis products. As of writing, the stock was slightly over six per cent and traded at C$ 3.73 per share.
In Q3 2023, Tilray's net revenue amounted to US$ 145.6 million, up from US$ 144.1 million in Q2 2023. Meanwhile, on a constant currency basis, the net revenue was US$ 154.2 million, up from two per cent year-over-year (YoY).
The company's distribution revenue was up five per cent YoY to US$ 65.4 million. Also, the adjusted cannabis gross profit increased from US$ 18 million in Q3 2022 to US$ 22.2 million in Q3 2023.
Tilray maintained a strong balance sheet, with US$ 408.3 million in marketable securities and cash.
On April 11, the market cap of the cannabis producer was C$ 1.66 billion, and the price-to-earnings (P/E) ratio stood at 9.5.
Canopy Growth Corporation (TSX:WEED)
Canopy holds production and distribution licences in more than a dozen nations to advance the expansion of medical marijuana internationally.
The net revenue of Canopy Growth amounted to C$ 101 million, down by 28 per cent YoY. Meanwhile, the gross margin percentage was negative two per cent.
The adjusted EBITDA was C$ 88 million in Q3 2023, an increase of C$ 21 million in adjusted EBITDA loss in Q3 2022.
The WEED stock was up 1.4 per cent as of writing, and its price was C$ 2.18 apiece.
Please note, the above content constitutes a very preliminary observation based on the industry and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
