Getting in on Aphria now could be a very smart move later

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The growing cannabis company is on solid ground and has a bright future ahead

Among all marijuana stocks operating in the publicly traded market, only a few are expected to build long-term profits for investors. The young cannabis industry has been trying to overcome several structural issues that slowed down the development of the legal market in both Canada and the US, and yet some companies are thriving. One of those cannabis stocks that is expected to deliver long-term wealth is Aphria Inc. with a market cap of $1.72 billion.

Aphria’s stock is currently being traded at $6 per share, which is still 68% less than its record high when the industry went public. Its low price is actually one of the main reasons to consider investing in this cannabis giant. Aphria participates in both the medical and recreational markets by offering a wide range of products to consumers through multiple brands, such as Broken Coast, RIFF, and Good Supply. The last quarter of fiscal 2020 that ended in May reported a huge increase in sales – 129% year-over-year for a total of $543.3 million. Its price-to-sales multiple is 3.2, which is quite a reasonable number that shows the potential Aphria has for the future.

For the last five consecutive quarters, Aphria has done something that only a couple more cannabis ventures have been able to do so far – report a positive EBITDA. This last quarter the company’s EBITDA soared a stellar 49% compared to the previous year for a total of $8.6 million.

Beyond its performance in the US market, Aphria has a strong presence in the recreational and medical marijuana market in countries like Canada, Germany, Malta, Columbia and Argentina. Canada is poised to bring a new spike in the company’s sales after the Cannabis 2.0 reform; Aphria is bringing cannabis-infused edibles to the market and has already launched several vape products in Canada.