Skip to Content

Green Thumb Industries Inc GTBIF

Morningstar Rating
$12.84 −0.21 (1.57%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Green Thumb Earnings: Profitability Exceeds Our Expectations; Shares Undervalued Despite Rally

No-moat Green Thumb’s fourth quarter exceeded our expectations, especially from a profitability perspective. While fourth-quarter revenue was roughly flat sequentially, the adjusted EBITDA margin expanded by about 300 basis points to an impressive 33%, the highest margin ever achieved. Impressively, improvement at the gross margin level indicates that at least some of it is due to operational improvements. As we forecast the adjusted EBITDA margin to approach the mid-30% range on a run-rate basis, we don’t expect to significantly change our long-term forecasts or fair value estimates of $26 and CAD 36 per share.

Price vs Fair Value

GTBIF is trading at a 51% discount.
Price
$12.84
Fair Value
$21.00
Uncertainty
Very High
1-Star Price
$65.80
5-Star Price
$87.00
Economic Moat
Kmst
Capital Allocation
Ljkmfxgr

Bulls Say, Bears Say

Bulls

Green Thumb gives investors pure-play exposure to the U.S., which we forecast will be the largest market in the world by sales.

Bears

States are incentivized to maximize tax revenue for products like alcohol, tobacco, and cannabis. Although alcohol and tobacco companies successfully pass higher taxes onto consumers, cannabis companies lack the brand power to do the same.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if GTBIF is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$13.05
Day Range
$12.6813.37
52-Week Range
$6.4214.30
Bid/Ask
$12.81 / $13.00
Market Cap
$3.07 Bil
Volume/Avg
422,566 / 518,429

Key Statistics

Price/Earnings (Normalized)
45.56
Price/Sales
2.92
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
1.31%

Company Profile

Green Thumb Industries is headquartered in Chicago, Illinois, and produces and sells medicinal and recreational cannabis through wholesale and retail channels in the United States. It has a presence in 15 states and operates roughly 87 cannabis stores under the brand Rise. GTI is focusing its expansion on limited license states with large populations, and it does not currently export into the global medical market due to U.S. federal prohibition. It offers multiple products under a portfolio of cannabis consumer packaged goods brands, including &Shine, Beboe, Dogwalkers, Doctor Solomon’s, Good Green, incredibles and RYTHM.
Sector
Healthcare
Industry
Drug Manufacturers - Specialty & Generic
Stock Style Box
Small Growth
Total Number of Employees
4,561

Competitors

Valuation

Metric
GTBIF
CRON
ACB
Price/Earnings (Normalized)
45.56
Price/Book Value
1.790.670.37
Price/Sales
2.928.430.54
Price/Cash Flow
11.88
Price/Earnings
GTBIF
CRON
ACB

Financial Strength

Metric
GTBIF
CRON
ACB
Quick Ratio
1.6221.681.79
Current Ratio
2.7222.543.79
Interest Coverage
8.83
Quick Ratio
GTBIF
CRON
ACB

Profitability

Metric
GTBIF
CRON
ACB
Return on Assets (Normalized)
3.06%−0.53%
Return on Equity (Normalized)
4.55%−0.55%
Return on Invested Capital (Normalized)
3.80%−4.90%
Return on Assets
GTBIF
CRON
ACB
See how this stock stacks up to its competitors with Morningstar Investor

Drug Manufacturers - Specialty & Generic Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
ZTS
Zoetis Inc Class AYcsc$86.0 Bil
MKKGY
Merck KGaA ADRTjsscj$74.3 Bil
HLN
Haleon PLC ADRPyyd$38.5 Bil
TEVA
Teva Pharmaceutical Industries Ltd ADRDtp$15.1 Bil
VTRS
Viatris IncTvdj$14.7 Bil
RDY
Dr Reddy's Laboratories Ltd ADRVpqgb$12.7 Bil
CTLT
Catalent IncKbrccs$10.3 Bil
PBH
Prestige Consumer Healthcare IncHlzsck$3.6 Bil
PRGO
Perrigo Co PLCCxvz$3.6 Bil
CURLF
Curaleaf Holdings IncNmk$3.5 Bil

Sponsor Center