Tuesday 29 September 2020

Aphria stock price is impressive compared to similar pot companies

Aphria Marijuana Stock is an interesting investment. Canadian cannabis sales are continuing to increase month after month in these days of the global coronavirus Covid-19 pandemic.

The latest interesting data from Statistics Canada show that in June, retail sales topped 201 million Canadian dollars and were up 8% from May's total sales. The Canadian government legalized marijuana in October 2018. The legal market sales have certainly been increasing. The Canadian pot market has opportunities.

Companies like Aphria (NASDAQ:APHA) and Aurora Cannabis (NYSE:ACB) seem to be ready to get more share of the rapidly expanding marketplace. Aphria sure wants to get more Aphria market share.

Aphria is coming off a tough quarter, but it is hopeful. Ontario-based Aphria is usually more consistent than Aurora. When Aphria released its 4th-quarter results on July 29 for the period ending in May, it reported a loss of CA$98.8 million. Impairment charges of CA$64 million weighed down its results, as did non-operating losses of CA$23 million. Despite a disappointing bottom line, Aphria still achieved positive adjusted-EBITDA for the 5th consecutive period, totaling CA$8.6 million in Q4.

Aphria has the strength of its diversified distribution structure. In its most recent fiscal year, CA$369.2 million of its CA$543.3 million in net revenue came from distribution revenue.

Aphria Inc. is a Canadian cannabis company. It is listed on the TSE (Toronto Stock Exchange) and the NYSE (New York Stock Exchange). It has a market capitalization of about $3 billion. The company was founded back in 2014.

In 2017, Aphria announced an exciting USA expansion strategy. Investors had concerns that Aphria might be delisted from the Toronto Stock Exchange or face other difficult sanctions. This is because of the uncertain legal status of cannabis in the USA (different in different states).

Keep in mind, the price-earnings ratio, also known as P/E ratio is the ratio of a company's share price to the company's earnings per share. The ratio is used for valuing companies. You could find out whether they are overvalued or undervalued.

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