Welcome to the Cannabis Investing Newsletter Forum. Feel free to find your favorite cannabis stocks and contribute content as you please; content that continues the discussion of, and analysis of, cannabis stocks. – D. H. Taylor

Clear all

AYR Wellness AYRWF Stock Potential to double

D. H. Taylor
Member Admin
Joined: 1 year ago
Posts: 313
Topic starter  

For some time I have wanted to look at AYR Wellness AYRWF stock.  The company's financial data is not reported as most and sometimes there are missing pieces.  Nonetheless, there is practical guidance given by management in the recent investor presentation.  Guidance is for $360M in revenue with ~30% EBITDA profit.  These are significant numbers; they include three recent acquisitions being accretive as the new revenues work their way into the fold.  I have viewed many companies with approximately the same revenue.  The 30% is about on par with some solid performers, but not the very best.  I have been able to coax out some metrics such as gross margins; roughly 57.5%.  Again, a solid number, but not the very best.

There is one metric out of all of these that makes everything not just impressive but, standout impressive: Shares outstanding.  AYR Wellness AYRWF Stock has about 47M shares outstanding pre-acquisition of Liberty.  With Liberty, there will be an additional 17M shares.  There should be an additional 2M - 5M shares.  This brings the total to about 70M shares outstanding.  When you break down the revenue and profit potential and spread it out over a mere 70M shares outstanding you get a solid sense that the company is significantly undervalued.


Leave a reply

Author Name

Author Email

Title *

Maximum allowed file size is 10MB

Preview 0 Revisions Saved