Curaleaf: Cheapest Stock in Canada
The multistate cannabis producer is now trading at a sizable discount to our fair value estimate as the sector grows more slowly than expected.
Andrew Willis: If you clicked through to this video guessing that the “cheapest” stock in Canada was in the cannabis industry, you’d be right—and you’d be very patient if you still had the optimism.
If you bought Curaleaf CURLF around its IPO in 2017, you’d be down around 30%. Thankfully, you’re holding what is now the cheapest stock in our Canadian coverage universe. The multistate cannabis producer is now trading at a sizable discount to our fair value estimate as the sector grows more slowly than expected.
From revenue growth as low as 1% from quarter to quarter, to Hurricane Ian closing stores in Florida, and U.S. midterm elections that could sway policy, Curaleaf is surrounded by uncertainty. But sector strategist Kristoffer Inton, like other patient investors, is sticking to a long-term view, estimating revenue in the billions and margins around 40% by 2026, as this “late harvest” could be well worth the wait.
For Morningstar, I’m Andrew Willis.
The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.
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