TLRY - Undervalued Cannabis Stock? This Company Could Reach A C$1B Valuation On The Back Of Pre-Roll Sales | Benzinga
With a nearly 50% share in infused pre-rolls, which constitute 70% of its sales, Decibel Cannabis Co. Inc. (TSXV: DB) (OTC: DBCCF) is well-positioned in the market.
A recent cannabis equity research report by Zuanic & Associates offers an in-depth evaluation of the company's market standing, financial status, and future potential.
Market Leadership And Growth Prospects
Decibel Holdings leads in Canada's recreational cannabis market, especially with its popular pre-rolls and vapes among younger consumers, offering competitively priced infused pre-rolls through efficient automation and kief coating techniques.
Financial Health
The company has achieved seven consecutive quarters of positive free cash flow since the first quarter of 2022, a notable turnaround from the negative cash flows posted in 2020 and 2021.
Gross margins have improved significantly and EBITDA margins have risen to the mid-twenties, which is exceptional for a Canadian cannabis company.
"EBITDA margins rose from low to mid-20s, exceptional for a Canadian cannabis company. This is attributed to ...