In a recent series of equity research reports, Pablo Zuanic of Zuanic & Associates provided a detailed analysis of the Q2 2024 performance for three major players in the cannabis industry: Verano Holdings (OTCQX:VRNOF), Green Thumb Industries (OTCQX:GTBIF) and MariMed Inc. (OTCQX:MRMD).
Verano Holdings: Strategic Acquisitions And Stable Growth
Verano Holdings achieved a 6% quarter-over-quarter revenue increase, reaching $233 million. The company partly attributes this growth to its ongoing expansion in key markets, including recent agreements to acquire operations in Virginia and Arizona from The Cannabist Company. Zuanic highlighted that these acquisitions, expected to close in 2025, will further strengthen Verano's market position.
The report highlighted that Verano's adjusted EBITDA margin slightly improved from 35.6% in Q1 2024 to 36.2% in Q2, driven by cost efficiencies and a favorable product mix. Despite these trends, the stock's valuation remains conservative, with an EV/EBITDA multiple of 8.4x based on Zuanic's estimates.
Green Thumb Industries: Market Expansion And Financial Resilience
Meanwhile, Green Thumb Industries demonstrated robust performance in Q2 2024, with revenue growing 10% year-over-year to $335 million. Zuanic's analysis emphasized that Green Thumb's ability to maintain an adjusted EBITDA margin of 32.5% highlights its operational resilience.
Read Also: Green Thumb's Q2 Revenue Soars 11% To $280M, Is Rising Cost Something To Watch?
The report also highlighted that Green Thumb's management focuses on disciplined capital allocation, reflecting in the company's strong free cash flow of $45 million for the quarter. The company's valuation, with a forward EV/EBITDA multiple of 10x, favorably positions it compared to peers.
MariMed: Focused Growth Amid Market Challenges
Finally, MariMed Inc. reported a modest revenue increase of 4% year-over-year, totaling $37 million for Q2 2024. Zuanic noted that while the company's top-line growth was slower compared to its peers, MariMed's focus on organic growth and an improved EBITDA margin of 20.4%, up from 19.8% in the previous quarter.
Zuanic's report also discussed MariMed's strategic decision to refrain from share buybacks despite market inefficiencies. MariMed's stock trades at a forward EV/EBITDA multiple of 7.5x, suggesting it may be undervalued relative to its growth potential.
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