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 02/21/2025
Weekly Sector Credit – Hemp
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- The public hemp sector companies do not show the sizzle of the hemp intoxicant story as most of that business is carried out by private companies. Still, the top quartile of the 37 companies is beginning to look pretty credible (pun intended)
- The top quartile has free cash flow adjusted current ratios above 1.0x, indicating little need for immediate additional funding.
- Similarly, the top quartile of the sector has total liabilities to market cap of under .48x, slightly better than the .61x registered by the top quartile of the cultivation and retail sector. Hemp has had a more challenging time raising capital than even the cultivators, which has the benefit of restraining leverage.
- The top quartile of hemp still has a ways to go to achieve credit stability. The Altman z score for the top quartile is only 1.9x, relative to a much stronger 4.6x for the cultivation and retail sector. Remember, scores above 2.99x generally indicate a low risk of financial distress.
- The public hemp sector companies do not show the sizzle of the hemp intoxicant story as most of that business is carried out by private companies. Still, the top quartile of the 37 companies is beginning to look pretty credible (pun intended)
Week ended 02/21/2025
Weekly Sector Credit – Hemp
-
- The public hemp sector companies do not show the sizzle of the hemp intoxicant story as most of that business is carried out by private companies. Still, the top quartile of the 37 companies is beginning to look pretty credible (pun intended)
- The top quartile has free cash flow adjusted current ratios above 1.0x, indicating little need for immediate additional funding.
- Similarly, the top quartile of the sector has total liabilities to market cap of under .48x, slightly better than the .61x registered by the top quartile of the cultivation and retail sector. Hemp has had a more challenging time raising capital than even the cultivators, which has the benefit of restraining leverage.
- The top quartile of hemp still has a ways to go to achieve credit stability. The Altman z score for the top quartile is only 1.9x, relative to a much stronger 4.6x for the cultivation and retail sector. Remember, scores above 2.99x generally indicate a low risk of financial distress.
- The public hemp sector companies do not show the sizzle of the hemp intoxicant story as most of that business is carried out by private companies. Still, the top quartile of the 37 companies is beginning to look pretty credible (pun intended)
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