As mentioned in my previous article entitled Major Canadian Cannabis LP Stocks Up Slightly In November; Still Down 54% YTD, the ultimate objective of every company is to have a positive operating cash flow (i.e., more money coming in from sales than operating expenses which is essential for a company to survive over the long term) and evidence that it is increasing from one quarter to the next. If that is not the case, then a prospective investor should focus on whether or not the company has positive earnings before interest, taxes, depreciation, and amortization (EBITDA), evidence that it is increasing from one quarter to the next, and is showing a positive margin. In addition, it is important to know the extent to which a company might encounter financial difficulty - even bankruptcy - in the next 2 years relative to its peers (as sourced from macroaxis.com). The above financial metrics also apply to the 12 constituents in munKNEE American Cannabis MSO Stocks Index who have also announced their latest quarter financial results recently.

The constituents in the Index are compared below, based on the above parameters, along with their stock performances from the end of trading on Friday, October 28th until the close of business on Tuesday, November 29th, in descending order as follows:

1. Jushi (JUSHF): +30.1% 
   • Net Operating Cash Flow (Positive/Negative): Negative
   • Adj. EBITDA (Positive/Negative): Positive
   • Adj. EBITDA Growth (Yes/No): No Change
   • Adj. EBITDA Margin (%): -7.2%
   • Chance of Financial Distress (%): 77%
   • Read: Jushi Holdings Releases Mixed Preliminary Q3 Financials
2. Curaleaf (CURLF): +22.9% 
   • Net Operating Cash Flow (Positive/Negative): Negative
   • Adj. EBITDA (Positive/Negative): Positive
   • Adj. EBITDA Growth (Yes/No): NO
   • Adj. EBITDA Margin (%): -14.6%
   • Chance of Financial Distress (%): 73%
   • Read: Curaleaf Q3 Report Reveals +80% Decrease In Net Profit
3. TerrAscend (TRSSF): +21.6%
   • Net Operating Cash Flow (Positive/Negative): Negative
   • Adj. EBITDA (Positive/Negative): Positive
   • Adj. EBITDA Growth (Yes/No): NO
   • Adj. EBITDA Margin (%): 13.5%
   • Chance of Financial Distress (%): 74%
   • Read: TerrAscend Q3 Financial Report Reveals Major Declines In Income And EBITDA
4. Trulieve (TCNNF): +18.8%
   • Net Operating Cash Flow (Positive/Negative): Negative
   • Adj. EBITDA (Positive/Negative): Positive
   • Adj. EBITDA Growth (Yes/No): NO
   • Adj. EBITDA Margin (%): 28.1%
   • Chance of Financial Distress (%): 74%
   • Read: Trulieve Cannabis Q3 Financials Were Down But Stock Price Jumps
5. Acreage (ACRDF): +13.2%
   • Net Operating Cash Flow (Positive/Negative): Negative
   • Adj. EBITDA (Positive/Negative): Positive
   • Adj. EBITDA Growth (Yes/No): NO
   • Adj. EBITDA Margin (%): 13.5%
   • Chance of Financial Distress (%): 73%
   • Read: Acreage Reports Third Quarter 2022 Financial Results
6. Green Thumb (GTBIF): +12.1%
   • Net Operating Cash Flow (Positive/Negative): POSITIVE (Source)
   • Adj. EBITDA (Positive/Negative): Positive
   • Adj. EBITDA Growth (Yes/No): YES (Source)
   • Adj. EBITDA Margin (%): 38.0%
   • Chance of Financial Distress (%): 14% (Source)
   • Read: Green Thumb Q3 Reports Record Revenue
7. Planet 13 (PLNHF): +10.2%
   • Net Operating Cash Flow (Positive/Negative): Negative
   • Adj. EBITDA (Positive/Negative): Positive
   • Adj. EBITDA Growth (Yes/No): NO
   • Adj. EBITDA Margin (%): 3.0%
   • Chance of Financial Distress (%): 36%
   • Read: Planet 13 Financial Metrics In Q3 All Declined
8. Columbia Care (CCHWF): +8.8%
   • Net Operating Cash Flow (Positive/Negative): Negative
   • Adj. EBITDA (Positive/Negative): Positive
   • Adj. EBITDA Growth (Yes/No): NO
   • Adj. EBITDA Margin (%): -1.6%
   • Chance of Financial Distress (%): 73%
   • Read: Columbia Care Reports Third Quarter 2022 Results
9. Cresco (CRLBF): +3.3% 
   • Net Operating Cash Flow (Positive/Negative): Negative
   • Adj. EBITDA (Positive/Negative): Positive
   • Adj. EBITDA Growth (Yes/No): NO
   • Adj. EBITDA Margin (%): 18.0%
   • Chance of Financial Distress (%): 74%
   • Read: Cresco Labs Q3 Financials Show No Improvement Over Q2 Results
10. Ascend (AAWH): -0.5%
    • Net Operating Cash Flow (Positive/Negative): Negative
    • Adj. EBITDA (Positive/Negative): Positive
    • Adj. EBITDA Growth (Yes/No): YES
    • Adj. EBITDA Margin (%): 8.3%
    • Chance of Financial Distress (%): 77%
    • Read: Ascend Wellness Q3 Report: Record Revenue, Adjusted Gross Profit And EBITDA Margin
11. Verano (VRNOF): -1.0%
    • Net Operating Cash Flow (Positive/Negative): Negative
    • Adj. EBITDA (Positive/Negative): Positive
    • Adj. EBITDA Growth (Yes/No): YES
    • Adj. EBITDA Margin (%): 14.9%
    • Chance of Financial Distress (%): 70%
    • Read: Verano Q3 Financial Report Reveals Major Increase In Net Loss
12. Ayr (AYRWF): -22.6% 
    • Net Operating Cash Flow (Positive/Negative): Negative
    • Adj. EBITDA (Positive/Negative): Positive
    • Adj. EBITDA Growth (Yes/No): YES
    • Adj. EBITDA Margin (%): 202%
    • Chance of Financial Distress (%): 73%
    • Read: Ayr Wellness Q3 Financial Metrics All Show Major Improvement

Of the above 12 constituents:

1. only Green Thumb has a positive net operating cash flow,
2. all the constituents have a positive Adj. EBITDA, BUT only Green Thumb, Ayr, Ascend and Verano report any growth in Adj. EBITDA and
3. only Green Thumb and Planet 13 have less than a 50% chance of encountering financial stress relative to their peers in the next two years.

In spite of its stock performance, it is clearly evident that Green Thumb Holdings Inc. is head and shoulders above its peers in the MSOs category.

The munKNEE American Cannabis MSO Stocks Index was UP 10.0% in November and that compares favorably with the munKNEE Canadian Cannabis LP Stocks Index which was only UP 2.5% during the same time period. Like the LP Index, however, the MSO Index is DOWN YTD almost the same at -53.4% vs. -53.7%. To put things in perspective, the S&P 500 was +9.0% in November and is +15.0% YTD.

More By This Author:

Major Canadian Cannabis LP Stocks Up Slightly In November; Still Down 54% YTD
Organigram Q4 Financial Results: Record Net Revenue; Positive Adjusted EBITDA
Your Choice: Invest In LEGR (+9%) OR Bitcoin/Ethereum (-20%)