Is Green Thumb Industries Stock a Buy Now? | The Motley Fool

Green Thumb Industries  ( GTBIF 0.58 % ) is a crown cannabis company with a presence in more than a twelve states across the country. The commercial enterprise has multiple brands that sell lotions, edibles, pre-rolls, and other products. Focused on timbre and premium offerings, the business generates better margins and cash hang than early cannabis companies .
Like many other pot stocks, however, Green Thumb Industries stock has been struggling, and investors may be growing frustrated with the investment. The party recently reported encourage quarterly results, but that failed to generate a hard rally. Is now the time to load up on the stock, or should investors sell before it falls further down ?
A person using a microscope in a greenhouse.

Green Thumb has posted a profit for six straight quarters

On March 1, the company released its fourth-quarter results. tax income of $ 243.6 million for the period ending Dec. 31 was up 4.2 % from the previous one-fourth, and the company posted a profit of $ 22.8 million, for a profit gross profit of 9.4 % .

It marks the sixth straight period in which Green Thumb has posted a profit and the eighth straight menstruation in which the party besides generated positive cash from its function activities. Both profitableness and positive cash menstruate are a snatch of a rarity in the cannabis industry .
To put this into position, consider that when cannabis producers frequently report earnings, they focus on profitableness in terms of adjusted earnings before concern, taxes, disparagement, and amortization ( EBITDA ). That frequently includes respective adjustments to truthful accountancy income, or “ net income ” as it is called in the income statement. It can mean millions of dollars ‘ worth of adjustments that help prop up an adjusted bottom line. When Canadian-based cannabis company Aurora Cannabis says it ‘s finale to profitableness, it ‘s talking about adjusted EBITDA, not net income. That ‘s what makes green Thumb ‘s streak of positive net income all that more impressive .
And what ‘s flush more noteworthy is that this comes as the cannabis company has been expanding its operations. In 2021, Green Thumb opened and acquired a entire of 22 stores. During the class, it generated gross from 73 retail stores from across 14 states, including top markets like California and Florida .

Is Green Thumb Industries a cheap buy?

In the past year, shares of Green Thumb have fallen by more than 50 %. And while that is by no means great, the breed has outperformed the Horizons Marijuana Life Sciences ETF  during that time, which has crashed by over 60 %. Investors are likely less bearish on green Thumb given its potent financials and continue growth .
When looking at the price-to-sales ratios of some of the top multi-state cannabis companies in the country, park Thumb does rank on the high end in terms of evaluation :

GTBIF PS Ratio Chart

While it ‘s not a huge bounty over the other multi-state operators, investors need to decide whether or not it ‘s worth paying more for the stock than for top companies such as Curaleaf Holdings and Trulieve Cannabis .

Should you buy Green Thumb stock?

overall, green Thumb looks to be one of the safe and better cannabis companies you can invest in today. even if it is trading at a slightly higher bounty than its peers, there ‘s still batch of hope for the stock to generate some strong returns over the long run. multiple brokerages have lowered their price targets for the store this year, but they ‘re distillery all at $ 30 or more — which suggests shares of the company could double in value .
That ‘s not a stretch given that the legal cannabis grocery store is growing at a compound annual emergence rate of more than 21 % until at least 2025, according to research company Technavio. And with Green Thumb already having a strong presence across the country and being profitable, it ‘s in excellent side to benefit from the long-run growth opportunities in the sector .
Marijuana legalization in the U.S. may even be years away from being a reality, but if you ‘re bequeath to buy and hold, then Green Thumb could make for a solid increase stock to hang on to or add to your portfolio today.

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Category : Finance

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