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 02/09/2024
The eight companies in the Consumption Devices sector are a study in credit contrasts. On a liquidity basis, the sector’s top quartile of free cash flow adjusted current ratio is only .98x. Only two companies, Delota (LOTA: CSE) at 1.12x, and Turning Point (TPG: NYSE ) at 3.37x appear to be able to get through the year without additional capital. On the low end, Item 9 (INLB-OTC), the sector’s worst-ranked credit, is clearly in a full-on liquidity crisis and is searching for a buyer for the firm. Its distress is also shown by its over 900x liabilities to market cap. Meanwhile, the sector’s top-ranked credit, Turning Point, has annualized funds from operation to total liabilities of 16%, ranking it as a solid single B credit. The Consumption Device sector is a small group with such incredibly divergent credit quality that median ratios, or even quartiles, don’t adequately describe the picture.
Week ended 02/09/2024
The eight companies in the Consumption Devices sector are a study in credit contrasts. On a liquidity basis, the sector’s top quartile of free cash flow adjusted current ratio is only .98x. Only two companies, Delota (LOTA: CSE) at 1.12x, and Turning Point (TPG: NYSE ) at 3.37x appear to be able to get through the year without additional capital. On the low end, Item 9 (INLB-OTC), the sector’s worst-ranked credit, is clearly in a full-on liquidity crisis and is searching for a buyer for the firm. Its distress is also shown by its over 900x liabilities to market cap. Meanwhile, the sector’s top-ranked credit, Turning Point, has annualized funds from operation to total liabilities of 16%, ranking it as a solid single B credit. The Consumption Device sector is a small group with such incredibly divergent credit quality that median ratios, or even quartiles, don’t adequately describe the picture.
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