Articles written by Viridian Capital Advisors - Benzinga

Viridian Chart Of The Week: A Different Perspective On Valuing Distressed Cannabis Equities – Option Based Valuation

Analysts have a range of choices when valuing cannabis companies. Viridian commonly uses Discounted Cash Flow Analysis, Public Company Comparables, and M&A Precedent Transactions to value both small private concerns as well as larger public companies.

Cannabis Chart Of The Week: How Serious Is The 2026 Debt Maturity "Tsunami"?

Much has been written recently about the upcoming “Tsunami” of Debt maturities in 2026. The articles have an alarming tone that we do not feel is representative of economic reality. The cannabis debt capital market is hot, and refinancings are getting done without the need for equity kickers or other expensive features.

Cannabis Chart Of The Week: Consensus 2024 EBITDA Estimates Are Still Up 8.4% Despite Downward Revisions

The chart shows the percentage change in consensus 2024 EBITDA estimates between the end of 2023 and now. The orange bars represent the portion of EBITDA % change attributable to changes in EBITDA Margins, while the blue bars depict the part attributable to changes in revenue estimates.

Cannabis Chart Of The Week: Introducing The Improved Viridian Capital Credit Ranking Model

The Viridian Capital Credit Ranking Model utilizes eleven different bespoke financial and market variables to resolve four critical credit factors: Liquidity, Leverage, Profitability, and Size. These Factors are weighted to arrive at a credit score and credit rank.

Chart Of The Week: Improved Leverage And Valuation Metrics For Cannabis MSOs

What’s the right way to measure Cannabis company leverage?

Chart Of The Week: Cannabis Credit Markets Are Hot Across the Credit Quality Spectrum

The cannabis debt market is HOT! The five issues shown on the chart were all completed in the third quarter of 2024 (with two weeks remaining) and account for approximately $632M of proceeds, greater than any quarter since the fourth quarter of 2021.

Chart Of The Week: Cannabis Debt Volumes Are Increasing And Costs Are Declining

Debt issuance for the U.S. Cultivation & Retail sector in H2:24 is already ahead of any period since H2:22. With the additional financing expected for the remainder of the year, issuance should top all periods except the second half of 2021 and the first half of 2022.

Cannabis Chart Of The Week: Which Leverage Metric Should Investors Keep A Close Eye On?

The cannabis credit markets have come back to life with several major refinancings, including Ascend (OTC: AAWH), TerrAscend (OTC: TSNDF), and Jushi (OTC: JUSHF).

Cannabis Chart Of The Week: MSO Prices And Volumes Fail To Rally On Harris Or DEA Events

The Viridian Chart of the Week looks at the percentage changes in stock prices and average daily dollar volume from the week ended 7/19/24 to the week ended 7/26/24.

Viridian Chart Of The Week: Do Analyst's Q2 Estimates Reveal An Expectation Of A Slowdown?

The graph shows the calculated percentage growth rates of EBITDA, arranged in increasing order of sequential quarterly growth rates (orange bars.) The blue bars show year-over-year growth rates, and the green bars show estimated full-year 2024 EBITDA vs actual 2023 EBITDA.

Cannabis Chart Of The Week: Which Margins Should Investors Focus On?

Viridian’s Chart of the Week focuses on the strengths and weaknesses of different margins as a measure of profitability and credit quality.

Chart Of The Week: The IRS Grabbed The Cannabis Stock Market's Attention

On Friday, June 28, 2024, Cannabis stocks were pounded by two different adverse events.

Cannabis Chart Of The Week: Is Financial Strength Related To YTD Stock Performance?

The Viridian Chart of the Week explores the relationship between financial strength and YTD stock performance.

Cannabis Chart Of The Week: Lenders Vs. Borrowers – The Wisdom Of Diversification

The chart shows the YTD stock performance of two equally weighted baskets of stocks.

Cannabis Chart Of The Week: What Should MSO EBITDA Multiples Be?

Viridian created a discounted cash flow model ("DCF") to calculate a range of theoretically supportable EV/EBITDA multiples, given analysts' expectations for 2024-2025 and reasonable assumptions for the seven years after that.

Cannabis Chart Of The Week: Are U.S. Cultivation & Retail Capital Raises About To Swing Upward?

The Viridian Chart of the Week shows U.S. Cultivation & Retail sector capital raises, which are up 48% YTD from 2023, albeit from a historically low base. The increase contrasts with a 22.0% decline for all cannabis-related sectors worldwide and a 32.5% decline of all U.S. cannabis raises.

Chart: Cannabis Is More Capital-Intensive Than Tobacco, Alcohol, Pharmaceuticals - Does It Pay Off?

The Viridian Chart of the Week on 8/27/23 demonstrated that cannabis is more capital-intensive than tobacco, alcohol, pharmaceuticals, or general consumer products. Cannabis measured 1.67x capital/sales. The industry has managed to reduce capital intensity slightly since then, and the group now measures 1.54x capital/sales.

Cannabis Chart Of The Week: Are Ancillary Sectors Participating In The Rescheduling Price Upswing?

The graph depicts the stock price performance of baskets of stocks in six different cannabis industry subsectors. Each basket consists of the top four or five U.S. companies in each group. The stocks in each basket are equally weighted, and the basket prices are indexed so that August 25, 2023 (the Friday before the HHS announcement) equals 100.

Cannabis Chart Of The Week: Analysts React Meekly To Strong Q1'24 Earnings

In our January 2024 outlook, we asserted that cannabis equity analysts, having been burned by the need for continual downward revisions in 2023, were undershooting in their 2024 & 2025 estimates. First quarter results are now in for ten major MSOs, and the results lend credence to our claims.

Cannabis Chart Of The Week: How Does Liquidity And Market Cap. Impact Valuation Metrics?

This week’s Chart of the Week explores the relationship between market cap., liquidity, and valuation.