Which Two Midcap Pot Stocks Are On Investors’ Radar?

4 min read | November 25, 2020 05:49 PM AEDT | By Team Kalkine Media

Which Two Midcap Pot Stocks Are On Investors’ Radar?

Aphria Inc. (TSX:APHA)

Current Stock Price: C$ 8.29

In an effort to expand its footprints in the US market, Aphria recently announced an agreement to acquire American beverages company SweetWater.

Aphria is known for its low-priced production of high-quality cannabis at a high scale, cultivated in organic conditions.

Aphria Stock Performance

The pot stock has swelled over 172 per cent since the pandemic-led market crash on March 19. Its 10-day average trading volume is 3.97 million and 30-day volume is 4.93 million.

The pot stock has been ranked among TMX’s most actively traded stocks across the TSX and the TSXV in the last 10 days. The marijuana company also made it to TMX’s top healthcare stocks that have outperformed peers across the Canadian markets with the largest price gain in the last 30 days.

Stocks of Aphria are up 37 per cent in the last three months and over 45 per cent in the last six months. The stock has gained nearly 34.5 per cent year-to-date.

The midcap company’s current market cap stands at nearly C$ 2.4 billion. Its price-to-book ratio is 1.326, and the price-to-cashflow ratio is 2681.60. Its current debt-to-equity ratio is 0.23, as per data available on the TMX portal.

Aphria’s YTD Stock Performance / Source: EODHD/Others, Thomson Reuters

Aphria Financial Highlights

The pot company reported net revenue of C$ 145.7 million in the first quarter of fiscal 2021, with an increase of 16 per cent year over year (YoY). The company posted the sixth consecutive quarter with revenue growth.

Its net cannabis revenue soared 103 per cent in Q1 FY21 from the prior-year quarter.

The midcap company reported an adjusted EBITDA of C$ 10 million in the first quarter of FY21, a growth of 17 per cent QoQ. The company held C$ 400 million cash and cash equivalents as of August 31, 2020.

Aurora Cannabis Inc. (TSX:ACB)

Current Stock Price: C$ 9.39

The Canadian pot company grows and retails medicinal and recreational cannabis via a range of brands that comprise Aurora, CanniMed, Daily Special, MedReleaf, and San Rafael '71. It has extended its medical cannabis export through agreements or cultivation plants in over 20 countries.

Aurora Stock Performance

The marijuana company’s 10-day average trading volume is 8.28 million units. Its 30-day trading stock volume is 7.56 million units. Aurora has been ranked among TMX’s most traded stocks across the TSX and the TSXV in the last 10 days. The cannabis company made it to TMX’s top healthcare stocks.

Stocks of Aurora posted 53 per cent growth in the last one month. The pot stock is yet to regain its pre-pandemic levels. The stock is down nearly 68 per cent YTD.

The cannabis company’s current market cap stands at approximately C$ 1.326 billion. Its price-to-book ratio is 0.267. Its current debt-to-equity ratio is 0.24, as per data available on the TMX portal.

Aurora YTD Stock Performance / Source: EODHD/Others, Thomson Reuters

Aurora Financial Highlights

In the first quarter of fiscal year 2021, the leading Canadian cannabis company reported total and cannabis net revenue of C$ 67.8 million, marginally up from C$ 67.5 million in the prior quarter.

The pot company registered an adjusted EBITDA loss of C$ 57.9 million in Q1 FY21, which comprises restructuring costs like contract and employee termination expenses of C$ 47.4 million.

The pot firm’s cash balance amounted to nearly C$ 250 million as of November 6, 2020.

Its medical cannabis net revenue increased by 4 per cent to C$ 33.5 million, from the prior quarter. This was led by growth in the international medical market, which expanded 41 per cent quarter over quarter (QoQ), and from consistent performance in its leading Canadian medical business.

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