Vext VEXTF stock could easily push much higher. This is a smallish boutique cannabis company with a lot of upside potential because of its metrics alone. Easily, Vext Sciences VEXTF vies for the top spot on a lot of my metrics that I follow. And, a lot of these metrics I can see improving as more revenues are created. Currently, Vext Sciences is expanding to meet demand. In AZ, adult-use cannabis has seen much higher growth than initially was expected and companies are moving quickly to fulfill demand.
Despite that, Vext is a smallish producer at this time. They are, however, expanding outside of their Arizona base into five more states over the next few years. They have been developing relationships and signing deals.
The revenue gains we have seen will continue to increase and I expect further gains. In the meantime, Vext Sciences VEXTF is profitable and an undervalued marijuana stocks you can buy today.
Vext Sciences VEXTF Stock Comparisons
From a comparison perspective, Vext Sciences ranks very high on the Complete List of Top 100 Cannabis Companies. And, what metrics they lag in I can expect to increase over the next few quarters as revenues expand and they process more products.
In the meantime, here is how Vext Sciences stacks up:
- #20 Revenue Growth Rate: 42.2%
- #23 Revenue Per Share: $0.133
- #38 Gross Margins: 45.1%
- #3 Operating Efficiencies: 18.7%
- #7 EBITDA/Revenue: 34.1%
- #18 Cash/Debt Ratio: 88%
Vext Sciences Financial Data
Continually, I expect to see continued increases in the metrics below.
Revenue hit an all-time high and my expectation is that this continues as Vext Sciences works quickly to expand and meet current demand:
I have not been able to find any guidance for revenue for this year. But, my expectation, considering the numbers we have seen out of Arizona, will be for revenues to continue to exceed current levels and push forward.
For now, gross margins are a metric that is still on the softer side. But, I see this more as an opportunity than as a disparaging position:
Imagine what could happen to this company should they start to sell considerably more product and see gross margins moving up to 65% where some of the best marijuana stocks reside?
Think that through for a moment. If revenues hit $20M in a quarter this would have the tendency to push gross margins upwards. Right now, gross profits are about $4M on the $9M in revenue. What if Vext Sciences were to hit $20M in revenue with 65% gross margins? Gross profits would hit $13M.
Vext Sciences is already profitable. But, if they were to achieve this, that would send the potential of the stock far higher.
Current operating efficiencies are one of the brightest spots for Vext Sciences:
Obviously, this is not an outlier as the past few quarters show that Vext Sciences is consistently pushing some of the best numbers there are. Given any future expansion of the Arizona base foundation, operating costs would already be covered. Increased revenues are merely going to push this stock into a new area with metrics.
EBTIDA Profits & Net Earnings
Over the past few quarters, EBTIDA profitability has been consistently coming in and increasing for Vext Sciences:
This is obviously the first big milestone towards profits for a new company. Vext Sciences has consistently hit this over the past few quarters. They have expanded nicely over the past few years and so are not taking on too much debt nor size in order to meet current adult-use potential. They created profits first and are now expanding into new territory.
Just as Vext Sciences VEXT Stock has seen continued EBTIDA profits, they also have been consistently net earnings profitable.
Being net earnings profitable is something of an outlier for a lot of cannabis companies. Continually, I see this as a big opportunity for the stock. Profits are what it is all about. But, the broader market is not doing anything about the opportunity. A patient investor will be well-rewarded.
Vext VEXTF Stock Chart
Movements in marijuana stocks have been all down hill lately. Valuations for cannabis companies are completely misaligned with the broader market. This is an opportunity for a patient investor.
VEXTF Stock Chart
Here is a look at VEXTF Stock. The latest financial data gave a bit of a bump upwards in the stock price. But, largely, there is no momentum in with marijuana stocks.
VEXT stock has not seen as much selling as other cannabis companies have. Still, VEXTF stock is a significantly undervalued marijuana stock. The upside potential I think is very large.
MSOS ETF Chart
MSOS ETF has been selling off; these are significantly undervalued marijuana stocks:
MSOS ETF has gotten a bit of love the past couple of hours. But, this is a small respite from the continuous eroding in value of the overall marijuana stock outlook. I should think there will be some kind of turn-around eventually. For now, buying on these dips will reward a patient investor.
Vext VEXTF Stock Projection
Given the current metrics, VEXT Stock should be higher if you compare the numbers to the broader stock market. VEXTF stock is yielding some 4% with its current $0.0234 EPS and $0.58 stock price. Given the current market environment, VEXTF stock should be trading at about $2.50, or thereabouts.
- Shares Outstanding: 175M
- $4.1M Net Earnings
- $0.0234 EPS
- 100x Future Earnings: $2.34
- $0.58 VEXTF
But, the revenue and profits are going to continually expand. This means the stock will continually move higher.
I expect VEXTF stock could push upwards to $5.00 over the very near term should this stock start to see appropriate valuations. VEXTF Stock is easily an undervalued marijuana stock.
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