Conservative "Cannabis" Stocks Rallied 6%, On Average, Last Week
The 6 tobacco, beer and distiller/vintner companies with major investments in the cannabis sector, constituents in the munKNEE Conservative "Cannabis" Stocks Index, are ranked below in descending order as to their performances last week and YTD along with their latest news.
Conservative "Cannabis" Stocks Index
- Anheuser-Busch InBev (BUD): UP 11.5% last week; DOWN 2.7% YTD
- has a $100 million joint venture with Tilray (TLRY)
- has a dividend yield of 1.4%
- has a forward Price-to-Earnings (PE) ratio of 19.3 (High - sector median is 18.5)
- has a forward Price-to-Sales Ratio (PSR) of 1.9 (High - sector median is 1.1)
- has a Price-to-Earnings-Growth (PEG) ratio of 1.8 (sector median is 2.3)
- has a Enterprise Value-to-Earnings Before Interest Taxes, Depreciation and Amortization (EV/EBITDA) ratio of 10.0 (sector median is 11.0)
- Read:
- British American Tobacco (BTI): UP 7.3% last week; DOWN 16.9% YTD
- has a C$346M product development partnership with Organigram Holdings (OGI)
- has a dividend yield of 9.1%
- has a forward price-to-earnings (PE) ratio of 6.9
- has a forward price-to-sales ratio (PSR) of 2.1 (High)
- has a price-to-earnings-growth (PEG) ratio of 0.1
- has a Enterprise Value-to-Earnings Before Interest Taxes, Depreciation and Amortization (EV/EBITDA) ratio of 7.1
- Read:
- Imperial Brands (IMBBY): UP 5.8% last week; UP 2.6% YTD
- has a 19.9% stake in Auxly Cannabis Group (CBWTF)
- has a dividend yield of 7.7%
- has a forward price-to-earnings (PE) ratio of 8.0
- has a forward price-to-sales ratio (PSR) of 1.7 (High)
- has a price-to-earnings-growth (PEG) ratio of 5.9 (High)
- has a Enterprise Value-to-Earnings Before Interest Taxes, Depreciation and Amortization (EV/EBITDA) ratio of 6.4
- Read: Imperial Brands sticks by forecast, to buy back $1.3 billion in shares
- Constellation Brands (STZ): UP 5.3% last week; DOWN 3.7% YTD
- has a 39% stake in Canopy Growth (CGC)
- has a dividend yield of 1.5%
- has a forward price-to-earnings (PE) ratio of 20.2 (High)
- has a forward price-to-sales ratio (PSR) of 4.4 (High)
- has a price-to-earnings-growth (PEG) ratio of 2.2 (High)
- has a Enterprise Value-to-Earnings Before Interest Taxes, Depreciation and Amortization (EV/EBITDA) ratio of 15.2 (High)
- Read: Constellation Brands: Good News in the Bad News for Investors
- Molson Coors Beverage (TAP): UP 4.0% last week; UP 27.4% YTD
- has announced that it is selling its 57.5% share of Truss, its JV with Tilray, to Tilray, and when completed Molson Coors will be removed from the Conservative "Cannabis" Stocks Index
- has a dividend yield of 2.8%
- has a forward price-to-earnings (PE) ratio of 11.5
- has a forward price-to-sales ratio (PSR) of 1.1
- has a price-to-earnings-growth (PEG) ratio of 0.9
- has a Enterprise Value-to-Earnings Before Interest Taxes, Depreciation and Amortization (EV/EBITDA) ratio of 8.0
- Read:
- Altria Group (MO): UP 3.5% last week; DOWN 14.2% YTD
- has a 45% stake in Cronos Group (CRON)
- has a dividend yield of 9.6%
- has a forward price-to-earnings (P/E) ratio of 8.2
- has a forward price-to-sales ratio (PSR) of 3.5 (High)
- has a price-to-earnings-growth (PEG) ratio of 2.3
- has a Enterprise Value-to-Earnings Before Interest Taxes, Depreciation and Amortization (EV/EBITDA) ratio of 8.0
- Read:
Summary
The munKNEE Conservative "Cannabis" Stocks Index was UP 5.9% last week and is now only DOWN 2.3.% YTD. In addition, the stocks in the Index now have an average dividend yield of 3.2%.
Definitions
- The price-to-earnings (P/E) ratio is the ratio for valuing a company that measures its current share price relative to its earnings per share. An excellent forward P/E ratio is between 10-25 for major stocks since stocks with a forward P/E below 10 can often be a value trap. On the other hand, those above 25 can be too expensive as they are priced with irrationally high growth anticipations. The mean P/E Ratio for Consumer Staples/Tobacco and Distillers and Vintners companies is 18.5.
- The price-to-sales ratio (PSR) describes how much someone must pay to buy one share of a company relative to how much that share generates in revenue for the company. and, as such, determines whether its stock is cheap or overpriced in comparison to its peers. While the ideal ratio depends on the company and industry, the ratio is typically good when the value falls between one (1) and two (2) and a ratio of less than one (1`) is even better. The mean forward PSR for Consumer Staples/Tobacco companies is 1.1.
- The price earnings-to-growth ratio (PEG ratio) is considered to be an indicator of a stock's true value. A PEG lower than 1.0 is best, suggesting that a company is relatively undervalued. The mean forward PEG Ratio for Consumer Staples/Tobacco and Distillers and Vintners companies is 2.3.
- The Enterprise Value-to-Earnings Before Interest, Taxes, Depreciation, and Amortization ratio (EV/EBITDA) is one of the best metrics used by value investors to evaluate a company because it accounts for the value of all financing the company has received from both equity stakes and debt allowing investors to compare profitability between companies. A high means the company is overvalued, while a low ratio indicates it’s undervalued. The mean forward EV/EBITDA ratio for Consumer Staples/Tobacco and Distillers and Vintners companies is 11.0.
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Disclosure: None
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