OUR 9TH YEAR OF PROVIDING PROPRIETARY CAPITAL MARKETS INTELLIGENCE ON THE CANNABIS / HEMP / PSYCHEDELIC SECTORS
Quick
Links
More Charts
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 04/05/2024
- The Biotech/Pharma sector is similar to Psychedelics from a credit point of view—primarily pre-revenue and negative cash flow with a continuing need for incremental financing. From a liquidity point of view, the 46-member sector is somewhat worse than Psychedelics. The median free cash flow adjusted current ratio of -.03 is the same as Psychedelics; however, the 3rd quartile measure of .88x indicates that at least 75% of the companies have insufficient liquidity to get through the next year without additional funding. The sector leverage, as measured by the median total liabilities to market cap, is also higher than the Psychedelic sector. The sector is less profitable based on FFO/total assets, but the companies tend to be slightly larger. The preponderance of evidence suggests that, as a group, the cannabis Biotech sector has somewhat lower credit quality than the Psychedelic sector. We caution investors that it is perilous to judge an entire sector’s credit quality and that individual companies may be quite different than the central measures for the sector.
Week ended 04/05/2024
- The Biotech/Pharma sector is similar to Psychedelics from a credit point of view—primarily pre-revenue and negative cash flow with a continuing need for incremental financing. From a liquidity point of view, the 46-member sector is somewhat worse than Psychedelics. The median free cash flow adjusted current ratio of -.03 is the same as Psychedelics; however, the 3rd quartile measure of .88x indicates that at least 75% of the companies have insufficient liquidity to get through the next year without additional funding. The sector leverage, as measured by the median total liabilities to market cap, is also higher than the Psychedelic sector. The sector is less profitable based on FFO/total assets, but the companies tend to be slightly larger. The preponderance of evidence suggests that, as a group, the cannabis Biotech sector has somewhat lower credit quality than the Psychedelic sector. We caution investors that it is perilous to judge an entire sector’s credit quality and that individual companies may be quite different than the central measures for the sector.
This Chart is Only Available to Higher Tier Memberships
Please Purchase a Premium or Enterprise membership to see more.
