3 Canadian marijuana stocks being overlooked by the market?

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Today we have uncovered three Canadian marijuana stocks trading at low 12-month forward Enterprise Value to Sales ratios.

All the companies we have selected trade below 4x EV/Sales, potentially offering investors a better value play. For comparison, Canopy Growth Corp. (TSX:WEED) trades at a 12-month forward EV/Sales multiple of 22x, while Aphria trades at a multiple of 13x. As such, for investors looking for value in an industry plagued with high valuations, these companies may be a good place to start. Note: All metrics reflect closing prices as at November 1, 2018.

Emblem Corp. (TSXV:EMC) – $1.18
Cannabis

Emblem is a licensed producer of medical marijuana under the ACMPR. The Company, led by former healthcare & pharma executives, currently produces 2,000 kg/yr of dried cannabis and plans to add a further 15,000 kg/yr by Q1/2019. On June 20, 2018, Emblem announced the formation of a joint venture with German pharmaceutical wholesaler Ancos Pharma GmbH under the name “Emblem Germany,” allowing the Company to export cannabis products into Germany. Under this agreement Emblem would hold 60% ownership of Emblem Germany and Acnos would own the remaining 40%. The agreement was finalized on October 24, 2018.

  • Market Cap: $145.2 Million
  • 1 Month Returns: -25.3%
  • YTD Returns: -51.6%
  • 12-month Forward EV/Sales: 3.2x

Emblem Corp. (TSXV:EMC) – $1.18
Cannabis

Story Continues Below

Emblem is a licensed producer of medical marijuana under the ACMPR. The Company, led by former healthcare & pharma executives, currently produces 2,000 kg/yr of dried cannabis and plans to add a further 15,000 kg/yr by Q1/2019. On June 20, 2018, Emblem announced the formation of a joint venture with German pharmaceutical wholesaler Ancos Pharma GmbH under the name “Emblem Germany,” allowing the Company to export cannabis products into Germany. Under this agreement Emblem would hold 60% ownership of Emblem Germany and Acnos would own the remaining 40%. The agreement was finalized on October 24, 2018.

  • Market Cap: $145.2 Million
  • 1 Month Returns: -25.3%
  • YTD Returns: -51.6%
  • 12-month Forward EV/Sales: 3.2x

Planet 13 Holdings Inc. (CSE:PLTH) – $2.30
Cannabis

Planet 13 Holdings operates a number of cultivation facilities and dispensaries across Nevada. Its products include flower, concentrates, vape pens, and edibles. On November 1, 2018, Planet 13 intends open its largest dispensary to date, located adjacent to the Las Vegas strip. The dispensary is projected to serve over 2,000 customers daily and will cover more than 40,000 square feet. The Company reported US$1M in EBITDA for the first half of 2018.

  • Market Cap: $142.7 Million
  • 1 Month Returns: -8.4%
  • YTD Returns: +130.0%
  • 12-month Forward EV/Sales: 3.5x

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