Are you convinced it's time to give up on marijuana stocks? There's one that might be worth holding on to: Aphria (NYSE: APHA), which has consistently maintained its profitability despite the cannabis industry's (and the larger market's) struggles.
High, consistent profits demonstrate how well a company is handling its operating expenses. Aphria has shown positive EBITDA (earnings before interest, taxes, depreciation, and amortization) over the past three quarters, while most cannabis companies reported negative earnings. In its recent fiscal third-quarter earnings, Aphria recorded a positive adjusted EBITDA of 5.7 million Canadian dollars.
While peers are burdened with debt or on the verge of bankruptcy, Aphria ended the quarter with CA$515.1 million of cash and cash equivalents. It also raised CA$100 million in equity capital to strengthen its balance sheet. The money will be put toward expansion in Canada and internationally, giving me faith in Aphria to survive the COVID-19 chaos.