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 05/03/2024
- The proposed rescheduling has buoyed market-based leverage stats for the cultivation and retail segment, but the effect dwindled as the week went on.
- Last week, we claimed that the ratification that the DEA would approve S3 had caused a massive credit event. But the effect dwindled as stock prices drifted lower through the week.
- The cultivation and retail sector now has a median debt/market cap of .99x, compared to 1.21x last week, still a decent improvement, if not as dramatic as we might have predicted. Similarly, total liabilities to market cap have declined to 2.21x from 2.60x last week. We anticipate better results to report next week after more earnings roll in. So far, Ascend, GTI, and Verano have reported, and all of them have beaten EBITDA estimates. We are not surprised, as we have maintained for some time that, in the aggregate, analysts were overly conservative in their 2024 outlook.
Week ended 05/03/2024
- The proposed rescheduling has buoyed market-based leverage stats for the cultivation and retail segment, but the effect dwindled as the week went on.
- Last week, we claimed that the ratification that the DEA would approve S3 had caused a massive credit event. But the effect dwindled as stock prices drifted lower through the week.
- The cultivation and retail sector now has a median debt/market cap of .99x, compared to 1.21x last week, still a decent improvement, if not as dramatic as we might have predicted. Similarly, total liabilities to market cap have declined to 2.21x from 2.60x last week. We anticipate better results to report next week after more earnings roll in. So far, Ascend, GTI, and Verano have reported, and all of them have beaten EBITDA estimates. We are not surprised, as we have maintained for some time that, in the aggregate, analysts were overly conservative in their 2024 outlook.
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