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

CURALEAF HOLDINGS, INC.

(CURA)
  Report
Delayed Quote. Delayed CANADIAN NATIONAL STOCK EXCHANGE - 11/26 03:59:56 pm
13.94 CAD   -1.41%
11/23CURALEAF : Announces "Feed the Block" Program to Address Hunger in Several States
AQ
11/20CURALEAF : Launches Fast Onset NANO Chews in Florida
AQ
11/17CURALEAF : Announces CEO Succession Effective January 1, 2021
AQ
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Curaleaf Holdings, Inc. : Target to become one of the world’s leading cannabis company

07/10/2020 | 05:12am EST

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.

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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.


© MarketScreener.com 2020
All news about CURALEAF HOLDINGS, INC.
11/23CURALEAF : Announces "Feed the Block" Program to Address Hunger in Several State..
AQ
11/20CURALEAF : Launches Fast Onset NANO Chews in Florida
AQ
11/17CURALEAF : Announces CEO Succession Effective January 1, 2021
AQ
11/17CURALEAF : Reports Record Third Quarter 2020 Financial and Operational Results
AQ
11/12CURALEAF HOLDINGS, INC. : quaterly earnings release
11/09TerrAscend Expands U.S. Footprint via Acquisition of Maryland Based Grower Pr..
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11/09CURALEAF : Select Brand Expands Into Pennsylvania
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11/06CURALEAF : TerrAscend Expands U.S. Footprint Via Acquisition of Maryland Based G..
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11/06“CANNABIS 2.0” : CEO’s of Aphria, Icanic Brands, Curaleaf, and..
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11/06TERRASCEND : Curaleaf Announces Asset Divestitures in Maryland for $31.5 Million
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P/E ratio -
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7 days EPS revision
4 months EPS revision
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4 months Revenue revision
1 year Revenue revision
Technical ratings
Short Term Timing
Middle Term Timing
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Key data
Capitalization (CAD)
9 169 826 206
Capitalization (USD)
7 044 771 026
Net sales (USD)
221 018 000
Free-Float
55,4%
Free-Float capitalization (CAD)
5 084 117 143
Free-Float capitalization (USD)
3 905 901 850
Avg. Exchange 20 sessions (USD)
14 542 973
Average Daily Capital Traded
0,16%
Income Statement Evolution
EPS & Dividend
EPS Revisions
Revenue Revisions
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 13
Average target price 13,94 $
Last Close Price 10,70 $
Spread / Highest target 64,6%
Spread / Average Target 30,3%
Spread / Lowest Target -14,9%
Consensus revision (last 18 months)