Earnings are still rare in the cannabis industry. That’s because many companies are taking every penny they bring in — and then some — and pouring that money right back into expansion.
But how about revenues? After all, a company that is ringing the cash register … and growing those sales big-time, year-over-year … can be very attractive.
With that in mind, here are the top five revenue-generators in the cannabis space, using their most recent quarterly numbers.
Looking at the growth in revenues, you can see why many investors find select cannabis stocks so attractive. The sales growth can be simply stunning.
Here’s a brief on each of these companies …
GW Pharmaceuticals (Nasdaq: GWPH) has a market cap of $5.9 billion. It is a biotech that is developing all sorts of new drugs. The stock really took off due to its proprietary cannabinoid product. They announced positive results from a second Phase 3 study of Epidiolex (cannabidiol or CBD) in children and adults with Lennox-Gastaut syndrome (LGS), a form of epilepsy. Epidiolex drastically reduces the seizures that patients suffer.
Trulieve (OTC Pink: TCNNF) has a market cap of $1.38 billion. It is a Florida-focused seed-to-sale company; it just opened its 27th dispensary in Florida last month. The company currently holds the largest storefront footprint in the state and won an appeal to open an additional 14 stores in Florida. It has total location licenses for 49 stores. Trulieve has a strong brand, and has developed a devoted following among customers. The company aims to export its Florida success to other states.
KushCo Holdings (OTCQB: KSHB) has a market cap of $409 million. This company has divisions that do different things; it is best known as being the packaging supplier to much of the legal marijuana industry, and it has distribution centers in the five biggest U.S. cannabis markets. That makes it one of the biggest “picks and shovels” plays in the cannabis industry.
Beyond packaging, its umbrella also contains …
- Kush Energy, which provides ultra-pure hydrocarbon gases and solvents to the cannabis and CBD sector.
- Hybrid Creative, a creative design agency for cannabis and non-cannabis ventures.
- Koleto Packaging Solutions, the research and development arm driving intellectual property development and acquisitions.
Curaleaf Holdings (OTC Pink: CURLF) has a market cap of $4 billion. It is a seed-to-sale company. Through subsidiaries, it operates in 12 states. It has 44 dispensaries, 12 cultivation sites and 19 processing sites. It has the largest footprint of any branded marijuana retailer in the U.S., and it is expanding FAST! I visited three dispensaries while I was recently in Las Vegas; two of them had just been taken over by Curaleaf. The company also provides non-cannabis services to licensed cannabis operators in the areas of cultivation, extraction and production, and retail operations.
MedMen Enterprises (OTCQB: MMNFF) has a market cap of $1.07 billion. It is another seed-to-sale company, and is the second-largest American cannabis company by dispensary count. It focuses on building dispensaries in affluent, high-traffic areas where customers will pay higher margins. It has 32 operating stores and licenses for 78 stores across 12 states.
The Good and the Bad
So, those are the top five marijuana revenue-generators. I like most of them. But there’s one I wouldn’t buy with ANYONE’s money. You’ll pardon me if I play that card close to my chest for now. Subscribers to my new Marijuana Millionaire Portfolio publication — which just banked its first gain on Friday — will find out first.
If you’re doing this on your own, be sure to do your research. There are plenty of potential winners out there, but lots of dogs, too. And you don’t want to be the one left with the fleas.
Have a great Memorial Day weekend.
All the best,