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MariMed MRMD Stock Forecast & Analysis

MariMed MRMD stock forecast is listed below given for Q3 with current MariMed financial data.  Is MRMD a good investment?  MRMD stock has some of the best numbers in the industry with tremendous upside potential.  In a recent interview, Bob Fireman has MariMed revenue potential in the future at $120M – $200M.  This is from company financial statements and MariMed management guidance from analysts.  In Q4, MariMed management will provide guidance for 2022.  For now, notwithstanding new dispensary openings, here is the MariMed MRMD stock forecast for the next 5 years time.

MariMed MRMD Stock Forecast Comparison

The stand-outs for the Q3 numbers were the 32% revenue increase QoQ, 38% adjusted EBITDA/Revenue, and MariMed management maintained guidance.

Here are the numbers for comparing the cannabis companies on my Complete List of Top 100 Cannabis companies:

  • #21 Market Cap: $235M
  • #9 Revenue Growth Rate: 32.3%
  • #16 Gross Margins: 54%
  • #9 Operating Efficiencies: 34%
  • #9 EBITDA/Revenue: 22%
  • #13 Cash/Debt Ratio: 54%
  • #31 Total Assets: $73M

MariMed continued to perform excellent compared to its counterparts.  Despite that, there was a dip in gross margins on a percentage basis despite the big pop upwards in revenue.  Outside of the overall size of the company (Market Cap & Total Assets), MariMed is one of the best companies out there.  Period.  And, they are about to grow even more significantly.

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MariMed MRMD Stock Financial Data

Here is a breakdown of MariMed Q3 financial data.  For a full breakdown of MariMed MRMD stock numbers, visit the MRMD stock page.MRMD stock page.

MariMed Gross Profits

  • MariMed Revenue & MRMD Stock Forecast
    MariMed Revenue

Strong, continuous growth upwards in revenue was the big theme for MariMed.  The 32.3% growth rate was solid.  However, despite this, MariMed printed lower gross margins whose affect you can see trickle all the way down the financial statement.  Nonetheless, gross profits continuously maintained a slid increase showing a balance between revenue and cost.

Most cannabis companies are seeing a slight slowing in revenue.  Overall, cannabis companies increased about 5% for this quarter.  This is still solid growth, especially when yo compare that to the broader market which prints all of about 3.5% quarterly.

MariMed expects to meet guidance given at the beginning of the year, but, that means a print of $28M for the upcoming quarter.  Cannabis companies have been attributing this to no more stimulus checks to which, I see that as a scapegoat without merit.  Bars are opening up again and people are normalizing their lives.  This means no more sitting at home getting stoned to death while binging Netflix and Doritos with nothing else to do.  I figured this would occur.

MariMed Operating Profits

  • MariMed Revenue & MRMD Stock Forecast
    MariMed Revenue

Operating costs advanced for the quarter along with revenues.  But, on a percentage basis, operating efficiencies also went higher; 34.9% for the quarter.  In order to make an omelet, you need to crack some eggs.  I expect that new management brought on to the team, along with other costs associated with advancing management’s objectives will pay off.

Still, the 35% is within the same range of the best players in the industry.  I look for 30% – 35% as being the standard to achieve.  Prior to this, MariMed was well beyond these metrics dipping in to the 20s.  I expect operating efficiencies will see these numbers again soon as new stores open and revenues continually increase.

MariMed EBTIDA & Net Profits

  • MariMed EBTIDA & MRMD Stock Forecast
    MariMed EBTIDA

On an adjusted basis, EBTIDA hit 38% (Unadjusted was 21%).  This is about 50% higher than the broader S&P 500 stocks.  This means that every dollar in revenue MariMed earns in revenue, they are keeping 50% more from cost of goods and operations, less D&A.  Which company would you rather invest in?  A company that prints 50% higher in margins, or not?  Hopefully, you are always looking to optimize your investment opportunity.  Time is money.  And, on a percentage basis, MariMed makes more money comparatively.

We are likely to see EBITDA, unadjusted, heading back upwards during future quarters.  MariMed is continually looking to expand and get its #1 selling products in more areas, opening more dispensaries, and continually looking towards acquisitions.

While MariMed has been focused on the East Coast, I always try and envision big mergers happening, such as MariMed and maybe 4Front up in Washington State (And others), or Unrivaled who are truly West Coast.  Keep these kinds of moves in mind as we will continually see M&A activity ahead.

MariMed Cash On Hand

  • MariMed Cash On Hand & MRMD Stock Forecast
    MariMed Cash On Hand

Strengthening its balance sheet on a percentage basis, again, MariMed is one of the better-situated companies with regards to cash on hand.  And, with MariMed having net earnings positive, they will continue to add to their capabilities with more and more cash.

I have mentioned many times that cash is king and companies in a positive net earnings position with sufficient cash will begin to outperform others that are lagging behind.  This should absolutely be something you need to keep an eye on, cash on hand, and whether there is a burn rate.

MariMed Total Equity

  • MariMed Total Assets & MRMD Stock Forecast
    MariMed Total Assets

Continually, MariMed is adding assets to its balance sheet in order to increase its revenue & profits capabilities and the continuous moves upwards show that management is doing its job.

Shareholder value can be directly correlated to the increase in total equity and net earnings.  This upward climb is continuously improving and MariMed’s fortunes will do the same.

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MariMed MRMD Stock Forecast

Here is the methodology for MariMed stock forecast using a discounted cash flow statement.  Below, you can find the appropriate information on my MariMed Stock forecast and what to expect with MariMed stock news.  I used a simple 75x EV/EBTIDA rate.  Also, I used a gradual 25% rate of increase on future growth.  Further, I am using a projection based upon the recent interview where CEO Bob Fireman states MariMed has the capability to achieve some $120M – $200M revenue in the future; I projected $175M for 2022.

Is MRMD A Good Investment?

MariMed MRMD Stock Forum & Discussion cannabis stocks & cannabis investments

As MariMed has some of the best margin metrics in the industry.  Yet, there is still potential upside even there.  Gross margins, on a trailing 12-month basis only achieves 54.5%.  There is upside potential of approximately 60% – 65%.  This would bring in an additional $$10M – $20M in gross margin, trickling downward to EBTIDA.

Operating cost, and by extension, operating efficiencies, are 25% on a trailing 12-month basis.  This is some of the best numbers in the industry with comparative cannabis companies achieving some

EBTIDA margins achieved 32% but, with increasing gross margins, MariMed could easily achieve 40%.

MariMed MRMD Stock Financial Data

MariMed MRMD Stock Financial Data

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8 thoughts on “MariMed MRMD Stock Forecast & Analysis

    1. @mattpaul02yahoo-com 

      MariMed may be one of the best companies out there.  They softened a bit on this last report but, all of the cannabis stocks have slowed somewhat.  Also, MRMD stock has not sold off nearly as much as the rest of the industry.  This is likely because of how well MariMed is performing.  

  1. Good morning DH. I’ve read that Marimed had applied for a listing on the cse around the middle of April. Do you know roughly how long the process takes from the time they apply to the time they actually start trading.
    Thanks
    Paul

      1. @dhtaylor They could but I don’t think Robert Fireman wants to sell this company any time soon in my personal opinion.. When your revenue growth doubles w/ zero debit, your company is heading in the right direction..
         

      2. @mattpaul02yahoo-com @birkboy91gmail-com

        Probably both correct.  But, keep this in mind: There will continuously be M&A activity moving forward. If the right deal comes along, say 4Front & MariMed? where both companies are effectively on different sides of the nation and have the best flower/edible on the market, a merge would make sense.  I can see each of these companies looking outward for growth in what will be a hyper-competitive market. I’m not saying it is a done deal.  And, yes, MariMed is sitting at the top spot, as far as I am concerned.  But, it is also a race to be #1 across the board.  With MariMed, they are in the best position of all.  But, why not expand on that continuously?  

        We’ll see what the future holds.  I believe we are going to see tons of M&A and I rule nothing out.  

  2. @mattpaul02yahoo.com  Saw an interview with Fireman a few months back, and your comment lines up with what I heard him say…that Marimed will not be selling, rather, growing into a mid to top-tier MSO.

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