CURLF
Curaleaf Holdings Inc
Consumer, Industrial/Transportation
10/16/2020
Presented
| Date | 10/14/2020 |
| Price | $8.75 |
| Market Cap | $4.02B |
| Ent Value | $4.76B |
| P/E Ratio | N/A |
| Book Value | $1.74 |
| Div Yield | 0% |
| Shares O/S | 459.30M |
| Ave Daily Vol | 720,865 |
| Short Int | N/A |
Current
| Price | $3.01 |
| Market Cap | $2.23B |
| Curaleaf Holdings, Inc. engages in the manufacture and trade of medical cannabis. It operates through the Cannabis Operations and Non-Cannabis Operations segments. The Cannabis Operations segment produces and sells cannabis through retail and wholesale channels. The Non-Cannabis Operations segment offers professional services, including cultivation, processing, back office administration, intellectual property licensing, real estate leasing services, and lending facilities to medical and adult-use cannabis licensees under management service agreements. It provides oils for vaporizing, cartridges, concentrates, tinctures, mints, capsules, edibles, and flower pods. The company was founded on November 13, 2014 and is headquartered in Wakefield, MA. |
Publicly traded companies mentioned herein: Cresco Labs Inc (CL CN), Curaleaf Holdings Inc (CURLF), Green Thumb Industries Inc (GTII CN), Trulieve Cannabis Corp (TRUL CN)
Highlights
Through extensive study of the cannabis industry, the presenter analyzes that most entrants have underappreciated both the capital intensity and operational challenges inherent to creating a successful business. Given that the cannabis business is not legal at the federal level, and therefore, there is no federal banking, access to capital from traditional sources has been restricted. As a byproduct of this, there has been a bifurcation between the haves and have nots within the industry. A few U.S. multi-state operators (MSOs) with leverage to limited license states are beginning to reach an inflection point in terms of EBITDA, scale and positive FCF. Although this inflection began in the first half of 2020, he believes the second half of this year will be the real inflection point in the underlying growth profile of this industry. While he recognizes that there are other U.S. MSOs who have attractive qualities, he is long Curaleaf Holdings Inc (CURLF), due to its large national scale and strong positioning across states on the East Coast. Based on these two factors he believes CURLF, more so than other U.S operators, stands to benefit from the legalization of recreational cannabis.
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