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 04/19/2024
- The eighteen companies in the Ag Tech sector continue to paint a relatively ugly credit picture. The median company is quite small, with only $10M of assets and $4M of market cap. Liquidity is strained with a median current ratio of only 1.07x and a negative free cash flow adjusted current ratio, indicating a need for additional financing, asset sales, or both. Free cash flow remains deeply negative, and even the top quartile of the five analyst-covered companies has only slightly positive EBITDA.
- The sector will benefit significantly from S3 as the cultivator purse strings are loosened and expansion re-ignites. In the meantime, the most robust credits may be able to take advantage of the situation with some bolt-on acquisitions.
Week ended 04/19/2024
- The eighteen companies in the Ag Tech sector continue to paint a relatively ugly credit picture. The median company is quite small, with only $10M of assets and $4M of market cap. Liquidity is strained with a median current ratio of only 1.07x and a negative free cash flow adjusted current ratio, indicating a need for additional financing, asset sales, or both. Free cash flow remains deeply negative, and even the top quartile of the five analyst-covered companies has only slightly positive EBITDA.
- The sector will benefit significantly from S3 as the cultivator purse strings are loosened and expansion re-ignites. In the meantime, the most robust credits may be able to take advantage of the situation with some bolt-on acquisitions.
This Chart is Only Available to Higher Tier Memberships
Please Purchase a Premium or Enterprise membership to see more.
