Strong Q2 from Verano, Green Thumb and MariMed: Analyzing Cannabis Earnings Rise – MariMed (OTC:MRMD), Green Thumb Industries (OTC:GTBIF)

In a recent series of equity analysis reports Pablo Zuanic from Zuanic & Partner provided a detailed analysis of Q2 2024 performance for three major players in the cannabis industry: Verano Holdings VRNOF, Green Thumb Industries GTBIF And MariMed Inc. MRMD.

Verano Holdings: Strategic acquisitions and stable growth

Verano Holdings reported a 6% quarter-over-quarter revenue increase, reaching $233 million. The company attributes this growth in part to its continued expansion in key markets, including recent agreements to acquire operations in Virginia and Arizona from The Cannabist Company. Zuanic emphasized that these acquisitions, which are expected to close in 2025, will further strengthen Verano’s market position.

The report highlighted that Verano’s adjusted EBITDA margin improved slightly from 35.6% in the first quarter of 2024 to 36.2% in the second quarter, 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 showed a robust performance in the second quarter of 2024, with revenue increasing 10% year-over-year to $335 million. Zuanic’s analysis highlighted that Green Thumb’s ability to maintain an adjusted EBITDA margin of 32.5% underscores its operational resilience.

Also read: Green Thumb’s revenue rises 11% to $280 million in the second quarter. Should rising costs be expected?

The report also highlighted that Green Thumb’s management is focused on disciplined capital allocation, which is reflected in the company’s strong free cash flow of $45 million for the quarter. The company’s valuation at an EV/EBITDA multiple of 10x positions it favorably relative to peers.

MariMed: Focused growth despite market challenges

Finally, MariMed Inc. reported a modest 4% year-over-year increase in revenue, reaching $37 million in the second quarter of 2024. Zuanic noted that while the company’s revenue growth was slower compared to its peers, MariMed focused on organic growth and delivered an improved EBITDA margin of 20.4%, up from 19.8% in the previous quarter.

Zuanic’s report also addressed MariMed’s strategic decision to forego share buybacks despite market inefficiencies. MariMed stock trades at an EV/EBITDA multiple of 7.5, suggesting it may be undervalued relative to its growth potential.

Read more: Verano Holdings reports Q2 revenue of $222 million in line with previous quarter, net loss widens to $22 million ahead of Cannabist Co. acquisition

These topics will be among the hot topics at the upcoming Benzinga Cannabis Capital Conference in Chicago on October 8 and 9. Join us to learn more about what the wave of marijuana legalization means for the future of investing in the industry. Hear directly from top executives, investors, advocates and policymakers. Get your tickets now before prices rise by following this link.

Photo: AI generated image.