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Curaleaf Holdings Inc CURLF

Morningstar Rating
$5.16 +0.20 (4.03%)
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Company Report

Curaleaf Earnings: 2023 Ends With More Sales Growth and a Healthy Margin; Shares Undervalued

No-moat Curaleaf reported fourth-quarter sequential net revenue growth of 4% compared with 1% in the third quarter. Moreover, its adjusted EBITDA margin reached 24%, a slight improvement from third quarter’s 23% mark. Full-year revenue of $1.34 billion was within our expectations. Still, profitability was better than we expected as its 23% adjusted EBITDA margin was a few hundred basis points higher than we forecast. For 2024, Curaleaf expects mid-single-digit top-line growth and a mid-20% adjusted EBITDA margin. Compared with our existing forecast, this sales growth outlook is slightly lower, but this margin outlook is slightly higher. We expect our forecast changes to offset, leading to minimal changes in our per-share $13/CAD 18 fair value estimates.

Price vs Fair Value

CURLF is trading at a 60% discount.
Price
$5.16
Fair Value
$75.00
Uncertainty
Very High
1-Star Price
$53.88
5-Star Price
$7.40
Economic Moat
Tvvl
Capital Allocation
Cjjbysml

Bulls Say, Bears Say

Bulls

Curaleaf’s acquisition of EMMAC Life Sciences gives it cheap Portugal production and a base to build its European business around.

Bears

Sales growth for legal sellers like Curaleaf are challenged by the lack of taxes in the illicit market.

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News

Trading Information

Previous Close Price
$4.96
Day Range
$4.855.24
52-Week Range
$2.195.80
Bid/Ask
$5.00 / $5.17
Market Cap
$3.80 Bil
Volume/Avg
1.0 Mil / 956,182

Key Statistics

Price/Earnings (Normalized)
Price/Sales
2.77
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

Curaleaf is headquartered in Wakefield, Massachusetts, and cultivates and sells medicinal and recreational cannabis in the U.S. The company has operations in 18 states. Its brands include Curaleaf, UKU, Select, and Grassroots. The company acquired EMMAC Life Sciences in March 2021, beginning its foray into the global medical market in competition with Canadian cannabis producers.
Sector
Healthcare
Industry
Drug Manufacturers - Specialty & Generic
Stock Style Box
Small Growth
Total Number of Employees
5,650

Competitors

Valuation

Metric
CURLF
GTII
CRON
Price/Earnings (Normalized)
47.42
Price/Book Value
3.601.900.77
Price/Sales
2.773.049.74
Price/Cash Flow
65.4312.36
Price/Earnings
CURLF
GTII
CRON

Financial Strength

Metric
CURLF
GTII
CRON
Quick Ratio
0.311.6221.68
Current Ratio
0.852.7222.54
Interest Coverage
−0.248.83
Quick Ratio
CURLF
GTII
CRON

Profitability

Metric
CURLF
GTII
CRON
Return on Assets (Normalized)
−3.72%3.06%−0.53%
Return on Equity (Normalized)
−10.45%4.55%−0.55%
Return on Invested Capital (Normalized)
−2.20%3.80%−4.90%
Return on Assets
CURLF
GTII
CRON
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