OUR 9TH YEAR OF PROVIDING PROPRIETARY CAPITAL MARKETS INTELLIGENCE ON THE CANNABIS / HEMP / PSYCHEDELIC SECTORS
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Credit Tracker By Industry Sector
Credit Tracker By Sector
Credit ratings are not currently available for public cannabis companies leaving companies, lenders and investors with a gap of information. The Viridian Cannabis Credit Tracker fills this gap. The model uses 11 market and financial statement variables to discern 4 key credit factors: Liquidity, Leverage, Profitability, and Size, to provide credit/liquidity analysis for over 370 public Cannabis/Hemp companies.
Week ended 11/15/2024
Weekly Sector Credit – Cultivation and Retail
- The sector bounced back a bit this week with respect to overall credit risk. Part of this was the final reporting companies being incorporated into the data, and part was a slight uptick in equity prices.
- Total liabilities to market cap is 1.86, a modest but noticeable improvement from 1.97x last week. Similarly, the median annualized free cash flow adjusted current ratio improved by one tick to .66x. Debt to 2024 EBITDA actually declined by 1bp to 3.28x from 3.29x last week.
- Importantly, these changes are relatively subtle. The market is still saying that asset value coverage has taken a hit. Forward multiples of EBITDA are now below where they were when HHS came out with their first announcement on Schedule 3. We consistently maintain that a change in equity valuation is a credit event, and we haven’t dug ourselves out of this hole yet.
- We consistently maintain that a change in equity valuation is a credit event, and we haven’t dug ourselves out of this hole yet.
Week ended 11/15/2024
Weekly Sector Credit – Cultivation and Retail
- The sector bounced back a bit this week with respect to overall credit risk. Part of this was the final reporting companies being incorporated into the data, and part was a slight uptick in equity prices.
- Total liabilities to market cap is 1.86, a modest but noticeable improvement from 1.97x last week. Similarly, the median annualized free cash flow adjusted current ratio improved by one tick to .66x. Debt to 2024 EBITDA actually declined by 1bp to 3.28x from 3.29x last week.
- Importantly, these changes are relatively subtle. The market is still saying that asset value coverage has taken a hit. Forward multiples of EBITDA are now below where they were when HHS came out with their first announcement on Schedule 3. We consistently maintain that a change in equity valuation is a credit event, and we haven’t dug ourselves out of this hole yet.
- We consistently maintain that a change in equity valuation is a credit event, and we haven’t dug ourselves out of this hole yet.
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