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 04/26/2024
- This week makes a great case for why we like to look at market leverage versus just the financial statements and analyst estimates. Does anyone doubt that a credit event has occurred in the cannabis market in the last two days? The ratification of the removal of 280e certainly qualifies in our book. After all, the top ten MSOs will save approximately $700M in taxes annually. This improves the sustainability of some rather over-levered balance sheets. But, one would not see any differences in standard credit measures. With the exception of Cansortium, we have no new earnings reports, and analysts have made no revisions to forecasts. Median debt /2024 EBITDA for the Cultivation and Retail segment is unchanged at 2.04x. Similarly, there is no change in cash flow measures or liquidity estimates. Debt/ market cap, though, went from 1.21x to .92x, the largest one-week move we have seen. The equity market is saying that the excess of asset value over debt has grown materially.
Week ended 04/26/2024
- This week makes a great case for why we like to look at market leverage versus just the financial statements and analyst estimates. Does anyone doubt that a credit event has occurred in the cannabis market in the last two days? The ratification of the removal of 280e certainly qualifies in our book. After all, the top ten MSOs will save approximately $700M in taxes annually. This improves the sustainability of some rather over-levered balance sheets. But, one would not see any differences in standard credit measures. With the exception of Cansortium, we have no new earnings reports, and analysts have made no revisions to forecasts. Median debt /2024 EBITDA for the Cultivation and Retail segment is unchanged at 2.04x. Similarly, there is no change in cash flow measures or liquidity estimates. Debt/ market cap, though, went from 1.21x to .92x, the largest one-week move we have seen. The equity market is saying that the excess of asset value over debt has grown materially.
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