MRMD - A Top Weed Stock Under The Radar: Strong Growth Cash Flow Savings And Low-Value Market Position | Benzinga
Zuanic & Associates' senior analyst Pablo Zuanic offers a detailed analysis of MariMed Inc. (OTC: MRMD), underscoring its promising trajectory in the cannabis sector and its potential to become a top Multi-State Operator (MSO).
"We estimate MariMed's spot EV at $213Mn, which is 1.4x current sales and 1.2x CY24 FactSet consensus, compared to the MSO average of 2.2x and 1.9x,” Zuanic wrote.
"With a CY24 EBITDA of 5.6x against an 8.7x group average, we foresee the stock re-rating and narrowing its discount through scalable and financially stable growth. Our stance remains Overweight."
Company Prospects And Market Position
MariMed Inc. (MRMD), a publicly traded cannabis company, is poised for significant growth in the coming year, particularly in the states of Illinois, Maryland and Massachusetts.
Despite a cautious 4Q23 forecast, MRMD is expected to achieve above-average growth in CY24.
The company's expansion in Illinois and Maryland, along with market share gains in Massachusetts, are key drivers of this anticipated growth.
According to Zuanic, MariMed is on track to become a top 10 Multi-State Operator (MSO) by 2025, supported by its robust balance sheet and substantial capital expenditure.
The company's financial health is notable, with one of the healthiest balance sheets among MSOs. Its valuation is currently attractive as well, trading ...