Revenue Growth Analysis: Cannabis Stocks With The Highest Decade to date (DTD) Revenue Growth
- Adastra
- May 11, 2022
- 5 min read
Updated: Jan 30, 2024
This analysis of cannabis stocks using revenue growth is a factor contributing to the stocks ranked as best cannabis stocks in the Best Cannabis Stocks Analysis.
The following tables shows the analysis based on quarterly revenues for the 16 stocks shortlisted in terms of quarterly revenue (derived from cannabis) around or exceeding US$50 million. This first table shows the Quarterly revenue for each quarter starting in Q4 2019. This data is used to compute the sequential quarterly revenue growth.
This second table shows Quarter over Quarter (QoQ) revenue growth for the decade starting Q1 2020. The stocks are sorted in order of highest quarterly revenue, for the last available quarter.
The main metric to look at is the average Quarter over Quarter (QoQ) growth for the decade. The table highlights the companies consistently growing revenue at QoQ growth in excess of 10%. This is the metric that has been incorporated into the methodology to rank the Best Cannabis Stocks.
This third table lists them in order of highest to lowest QoQ growth rates.
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We are looking at some very impressive revenue growth rates, especially with the vertically integrated apriums, US MSOs including Curaleaf, Green Thumb, Trulieve, and Canada based SNDL and High Tide. The analysis is impacted by the growth starting at a point in time, being the start of the decade (Q1 2020). But, reviewing the quarterly numbers does highlight the performance and trends, and is a metric that is worthy of inclusion in any stock ranking methodology. The notes provide more details, including clarification on the color coding.
When you look at all three tables together you start to see the impact of the vertically integrated model on revenue growth. The vertically integrated apriums have delivered impressive revenue growth. The five Tier 1 US MSOs have the highest revenues, led by Curaleaf, Green Thumb, and Trulieve. The other MSOs, SNDL and High Tide have also delivered impressive revenue growth and have high quarterly revenues. Fun fact: of all the stocks analyzed in this blog, High Tide is the only company that has had sequential revenue growth in every quarter in this decade.
Purely by the numbers on sequential (quarter over quarter) revenue growth, SNDL is the clear leader. However, investors need to factor in that this high revenue growth was from the 2022 acquisition of alcohol retailer, Alcanna. More than 60% of SNDL revenue is non-cannabis related, derived from the Liquor Retail segment. Jushi Holdings also deserves to be highlighted as the leader for total Decade to Date (DTD) revenue growth.
Excluding SNDL, the Licensed Producers (plums) Canopy Growth and Aurora Cannabis, have seen revenues stagnate. Canopy now has an overall negative average quarterly revenue growth, and also a Decade to Date (DTD) decrease in quarterly revenue. Meanwhile, the vertically integrated aprium High Tide, has steadily grown revenue to overtake Aurora Cannabis and Canopy Growth in terms of quarterly revenue. This, in addition to the US MSOs, highlight the superiority in fundamentals of apriums over plums. The market continues to value plums at higher relative multiples to apriums. That discrepancy in valuation makes apriums worthy of further due diligence and inclusion in Cannabis Portfolios.
There are columns in the table that show Decade to date (DTD) revenue growth rates and ranking. This metric is not used in the analysis to rank the Best Cannabis Stocks. But it is an interesting metric that is well worth considering in any analysis. For a balanced comparison, this metric is only presented for those who had quarterly growth starting in Q1 2020. It is interesting and impressive to see many companies in this analysis having an average quarterly revenue growth of 10%+ for the large number of quarters starting Q1 2020.
A point to note is that there were instances where the quarterly numbers were inconsistent in the news releases, especially when a company restated some numbers in future quarters. I have done my best to use the most accurate and recently available quarterly revenue numbers. But the numbers do serve the purpose of presenting the big picture on a balanced ranking on Cannabis stocks.
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Regarding Tilray, the analysis considers results published around and after the time of the Aphria and Tilray merger. This was actually Aphria doing a reverse takeover of Tilray, with Aphria’s CEO Irwin Simon becoming CEO of the combined company, which took Tilray's name and Nasdaq listing. Past quarters were excluded in this analysis as these did not seem relevant to the new company.
This analysis and the tables included will be updated on a regular basis and the relative rankings are expected to change based on quarterly revenues reported. The ANALYSIS category of this blog has the other analyses incorporated into the Best Cannabis Stocks analysis.
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Disclosure: I (username Adastra) am an investor not a trader. I am bullish on the Cannabis sector as a long-term investment (2026 and beyond), provided stocks/ETFs are carefully picked based on data-driven due diligence. Of the 16 stocks covered in the Best Cannabis Stocks analysis, I have invested only in my top 3 picks: High Tide, Green Thumb and Curaleaf. But my analysis indicates (without any guarantees) that there is a potential for impressive gains in investing in the stocks best ranked in the analysis, including WM Technology, and Trulieve, which have a dedicated page with detailed analysis in the STOCKS category. I reserve the right to buy or sell at any time any of the stocks mentioned in this blog. I do not short stocks and never will short any stock in a company that makes the world a better place. I do not have insider knowledge of any company covered in this blog. All data used for analysis is from public sources. I have received (as of last update date of this page) ZERO funding for this blog from any of the companies featured in this blog.
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