Introduction
The munKNEE American Cannabis MSO Portfolio is UP 15.9% YTD - and UP 5.2% last week - despite the fact that all its constituents are faring poorly in 4 key financial metrics expressed as a % of net revenue.
The financial metrics used in this analysis are a company's:
- Gross Profit Margin is the profit remaining after subtracting the cost of goods sold from revenue. A high gross profit margin reflects how efficiently a company manages its operating expenses, i.e. how successfully a company is producing profit over and above its costs;
- Selling General and Administration (SG&A) Expenses are the costs a company incurs to run its business, which include salaries, marketing, rent, utilities, and office supplies and the SG&A margin is the percentage of revenue consumed by these expenses and shows how much revenue is being absorbed by overhead costs;
- Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) is the cash profit generated by a company's operations excluding non-recurring, irregular, and one-time items such as unrealized gains or losses; non-cash expenses (depreciation, amortization); litigation expenses; gains or losses on foreign exchange; goodwill impairments; non-operating income; and share-based compensation that may distort the EBITDA;
- Net Profit or Loss Margin, or simply net margin, measures how much net income or profit a company generates as a percentage of its revenue. The net profit margin illustrates how much of each dollar in revenue collected by a company translates into profit.
- Source
Below are how each constituent's stock performed last week, MTD and YTD along with their 4 financial metrics as a % of net revenue as per their most recent quarterly financial reports and its rank compared to its peers; their market capitalization and any recent news, analyses and/or commentary on the company.
The munKNEE American Cannabis MSO Portfolio
- Curaleaf (CURLF): UP 10.2% last week; UP 9.6% MTD; UP 1.7% YTD
- Market Capitalization: $3,220M
- Rank of Gross Profit Margin as a % of Net Revenue: #7 @ 45.5%
- Rank of Selling, General, and Administrative Expenses as a % of Net Revenue: #3 @ 32.1 %
- Rank of Adjusted EBITDA as a % of Net Revenue: #6 @ 22.6 %
- Rank of Net Profit Margin (or Loss) as a % of Net Revenue: #5 @ (14.3)%
- Recent News, Analyses and/or Commentary:
- Cresco Labs (CRLBF): UP 9.0% last week; UP 7.6% MTD; UP 25.9% YTD
- Market Capitalization: $782M
- Rank of Gross Profit Margin as a % of Net Revenue: #6 @ 47.1 %
- Rank of Selling, General, and Administrative Expenses as a % of Net Revenue: #2 @ 29.9%
- Rank of Adjusted EBITDA as a % of Net Revenue: #4 @ 28.8%
- Rank of Net Profit Margin (or Loss) as a % of Net Revenue: #3 @ (2.8)%
- Recent News, Analyses and/or Commentary:
- Ayr Wellness (AYRWF): UP 8.4% last week; UP 4.6% MTD; UP 14.4% YTD
- Market Capitalization: $240M
- Rank of Gross Profit Margin as a % of Net Revenue: #1 @ 53.1%
- Rank of Selling, General, and Administrative Expenses as a % of Net Revenue: #6 @ 35.6%
- Rank of Adjusted EBITDA as a % of Net Revenue: #5 @ 24.7%
- Rank of Net Profit Margin (or Loss) as a % of Net Revenue: #6 @ (16.9)%
- Recent News, Analyses and/or Commentary:
- Trulieve Cannabis (TCNNF): UP 7.8% last week; UP 8.0% MTD; UP 91.6% YTD
- Market Capitalization: $1,880M
- Rank of Gross Profit Margin as a % of Net Revenue: #4 @ 49.1%
- Rank of Selling, General, and Administrative Expenses as a % of Net Revenue: #4 @ 34.0%
- Rank of Adjusted EBITDA as a % of Net Revenue: #2 @ 35.6%
- Rank of Net Profit Margin (or Loss) as a % of Net Revenue: #4 @ (10.7)%
- Recent News, Analyses and/or Commentary:
- Verano (VRNOF): UP 5.1% last week; UP 1.4% MTD; DOWN 16.5% YTD
- Market Capitalization: $1,380M
- Rank of Gross Profit Margin as a % of Net Revenue: #3 @ 51.0%
- Rank of Selling, General, and Administrative Expenses as a % of Net Revenue: #7 @ 39.0%
- Rank of Adjusted EBITDA as a % of Net Revenue: #3 @ 30.3%
- Rank of Net Profit Margin (or Loss) as a % of Net Revenue: #2 @ (2.2)%
- Recent News, Analyses and/or Commentary:
- TerrAscend (TSNDF): UP 1.5% last week; DOWN 0.7% MTD; DOWN 17.8% YTD
- Market Capitalization: $493M
- Rank of Gross Profit Margin as a % of Net Revenue: #5 @ 48.0%
- Rank of Selling, General, and Administrative Expenses as a % of Net Revenue: #5 @ 34.7%
- Rank of Adjusted EBITDA as a % of Net Revenue: #7 @ 20.1%
- Rank of Net Profit Margin (or Loss) as a % of Net Revenue: #7 @ (18.4)%
- Recent News, Analyses and/or Commentary:
- Green Thumb (GTBIF): UP 0.9% last week; DOWN 1.8% MTD; UP 2.7% YTD
- Market Capitalization: $2,780M
- Rank of Gross Profit Margin as a % of Net Revenue: #2 @ 52.5%
- Rank of Selling, General, and Administrative Expenses as a % of Net Revenue: #1 @ 25.0%
- Rank of Adjusted EBITDA as a % of Net Revenue: #1 @ 35.7%
- Rank of Net Profit Margin (or Loss) as a % of Net Revenue: #1 @ 11.3%
- Recent News, Analyses and/or Commentary:
Summary
On average, the MSO Portfolio was UP 5.2% last week, is UP 3.4% MTD and is now UP 15.9% YTD.
The above financial metrics as a % of net revenue by company have been averaged and are listed as follows, in descending order, to provide a comparative analysis of their respective financial health:
- (1) Green Thumb; (2) Trulieve; (3) Cresco Labs; (4) Verano; (5) Ayr Wellness; (6) Curaleaf; (7) TerrAscend
The above information will be updated when the Q2 financial reports are released the week of August 12th.
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