Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  CANADIAN NATIONAL STOCK EXCHANGE  >  Curaleaf Holdings, Inc.    CURA   CA23126M1023

CURALEAF HOLDINGS, INC.

(CURA)
  Report
Delayed Quote. Delayed CANADIAN NATIONAL STOCK EXCHANGE - 09/25 03:59:59 pm
9.5 CAD   +3.60%
09/23CURALEAF : Select Brand Announces Partnership with Jim Belushi and Belushi's Farm
AQ
09/22CURALEAF : Select Brand Expands Into New York
AQ
09/21CURALEAF : Continues Western Expansion of Select Brand Products
AQ
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Curaleaf Holdings, Inc. : Target to become one of the world’s leading cannabis company

share with twitter share with LinkedIn share with facebook
07/10/2020 | 05:12am EDT

An unorthodox pick among MarketScreener's selected opportunities, Curaleaf Holdings, formerly known as Lead Ventures Inc, is the sixth most valuable cannabis company in North America.

Albeit listed in Canada, the company operates essentially in the U.S. Of note are the peculiar backgrounds of its chairman — the Russian-American businessman Boris Jordan, a star investment banker known to advise oligarchs — and of its majority shareholder, Andrei Blokh, a former partner of Roman Abramovich.

zb_graphique_de_cours

Established in 2010, the company's financial history remains opaque till 2016, as its first public equity raise dates from 2018. Two highlights however: the company is still losing money — with a cash-burn before acquisitions of about $170mil — and it will require more capital to fulfill management's vision of becoming "the world’s leading cannabis company".

Of course, a substantial market opportunity shines in the horizon. While the U.S. legal cannabis industry is projected to total $16bn in 2020, total cannabis demand is estimated to total $75B-$100B, including markets serviced by illicit actors. 37 states have already legalized medical cannabis, and 12 out of these 37 have allowed adult-use for recreative ends. 

So far most of Curaleaf's efforts have focused on securing cultivating and processing license — costs and requirements vary by states — as well as acquiring peers across the value chain, from distribution to manufacturing. Growth of consumption per capita as new product forms, such as edibles and vapes, lead to proliferation of uses; building up a comprehensive offering takes time and money.

Management believes that vertical integration will distinguish Curaleaf from peers in their race to scale. Channel ownership burdens the cost structure, but it undercuts the middlemen — a rewarding feature in what should remain a high-margin retail segment — and enables products to reach consumers faster. In frontier markets, speed drives control.

Last year, the takeover of Grassroots propped the store count up to 135 venues, while the buyout of Select earlier in 2020 expanded wholesale to more than a thousand stores. With 2.2 million square feet of cultivation capacity, 180,000 patients served and 30 processing facilities, Curaleaf sports an unparalleled cost-to-coast footprint and ranks as a serious contender.

Despite the onset of the COVID-19 pandemic — or perhaps because of it — and thanks to these acquisitions, Curaleaf succeeded at growing revenue by 29% and adjusted EBITDA by 45% sequentially in 1Q20. It has also captured sizeable market shares in key states such as New Jersey or Florida, for a 14% market share nationwide.

Regardless, analysts see the integration of Grassroots as well as the expansion of regulated markets and conversion of illicit markets as major catalysts going forward. With $155mil in pro forma revenue, Curaleaf should widen the gap with its two closest followers, GTI and Trulieve, each with approximately $100mil in revenue.

Valuation-wise, shares trade at bubble-like PE ratios — a la Tesla, Netflix, etc. — but surprisingly affordable EBITDA multiples related to enterprise value, notwithstanding the fact that Curaleaf represents an ideal acquisition candidate for heavyweights such as Aurora, Canopy or GW Pharmaceuticals.

Value investors will look elsewhere, of course, but growth enthusiasts and momentum players may be keenly interested in following the next move. At this point, the key risks are an investor retreat — for instance if the pot rush came to fade — and the federal Department of Justice taking a closer look at cannabis M&A transactions.

Curaleaf is a position in Marketscreener's US portfolio.


share with twitter share with LinkedIn share with facebook
All news about CURALEAF HOLDINGS, INC.
09/23CURALEAF : Select Brand Announces Partnership with Jim Belushi and Belushi's Far..
AQ
09/22CURALEAF : Select Brand Expands Into New York
AQ
09/21CURALEAF : Continues Western Expansion of Select Brand Products
AQ
09/18CURALEAF : Appoints Talley Wettlaufer Senior Vice President of Retail
AQ
09/18CURALEAF : Recent Developments In TCPA Class Actions Against Cannabis Industry P..
AQ
09/17CURALEAF : Appoints Talley Wettlaufer Senior Vice President of Retail
AQ
09/14CURALEAF : Continues Expansion Across Nevada With Opening of Ely Dispensary
AQ
09/08CURALEAF : Announces Participation at the AdvisorShares Cannabis Week AlphaCall ..
AQ
08/25CURALEAF : Opens New Cannabis Dispensary in Clearwater Florida
AQ
08/17CURALEAF : Reports Record Second Quarter 2020 Financial and Operational Results
PR
More news
Notations Surperformance©
  Help  
Fundamental ratings
Overall rating
Trading Rating
Investor Rating
Growth (Revenue)
Valuation
Finances
Profitability
Earnings quality
Business Predictability
P/E ratio -
Potential
Yield -
Consensus
7 days EPS revision
4 months EPS revision
1 year EPS revision
4 months Revenue revision
1 year Revenue revision
Technical ratings
Short Term Timing
Middle Term Timing
Long Term Timing
RSI
Bollinger Spread
Unusual Volumes
Key data
Capitalization (CAD)
6 246 114 340
Capitalization (USD)
4 657 664 454
Net sales (USD)
221 018 000
Free-Float
47,3%
Free-Float capitalization (CAD)
2 956 376 681
Free-Float capitalization (USD)
2 204 540 268
Avg. Exchange 20 sessions (USD)
4 154 743
Average Daily Capital Traded
0,07%
Income Statement Evolution
EPS & Dividend
EPS Revisions
Revenue Revisions
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 13
Average target price 15,95 CAD
Last Close Price 9,50 CAD
Spread / Highest target 142%
Spread / Average Target 67,9%
Spread / Lowest Target 5,26%
Consensus revision (last 18 months)