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Investment Thesis
Trulieve Cannabis Corp. (OTCQX:TCNNF) is the largest retailer of medical and recreational cannabis with 159 dispensaries in selected states in the US, including Florida, California, Massachusetts, Connecticut, Pennsylvania, and West Virginia. With an EBITDA margin in the range of 45% since FY2017, Trulieve reported an impressive revenue of $224.09M and an EBITDA of $91.5M in FQ3’21. It is in line with its closest competitors, Curaleaf Holdings, Inc (OTCPK:CURLF) and Green Thumb Industries Inc. (OTCQX:GTBIF), which reported revenues of $317.13M and $233.68M in FQ3’21, respectively.
Despite the push for nationwide cannabis legalization, we expect the legalization to potentially start from medical cannabis first, followed by recreational cannabis. Trulieve has done well by securing a significant market share for medical use in Florida and California, where massive growth is expected. In addition, with its massive cash and equivalents in the balance sheet, we expect the company to continue its strategic expansion, as more states legalize the use of medical cannabis and, subsequently, recreational cannabis.
We discuss whether investors should add Trulieve stock now.
How Will Cannabis Be Federally Legalized In 2022?
There has been growing support for the legalization of cannabis recently, with several cannabis-related bills presented in Congress. With the aim of decriminalizing the use of medical and recreational cannabis…
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kmatija/E+ via Getty Images
Investment Thesis
Trulieve Cannabis Corp. (OTCQX:TCNNF) is the largest retailer of medical and recreational cannabis with 159 dispensaries in selected states in the US, including Florida, California, Massachusetts, Connecticut, Pennsylvania, and West Virginia. With an EBITDA margin in the range of 45% since FY2017, Trulieve reported an impressive revenue of $224.09M and an EBITDA of $91.5M in FQ3’21. It is in line with its closest competitors, Curaleaf Holdings, Inc (OTCPK:CURLF) and Green Thumb Industries Inc. (OTCQX:GTBIF), which reported revenues of $317.13M and $233.68M in FQ3’21, respectively.
Despite the push for nationwide cannabis legalization, we expect the legalization to potentially start from medical cannabis first, followed by recreational cannabis. Trulieve has done well by securing a sign
ificant market share for medical use in Florida and California, where massive growth is expected. In addition, with its massive cash and equivalents in the balance sheet, we expect the company to continue its strategic expansion, as more states legalize the use of medical cannabis and, subsequently, recreational cannabis.
We discuss whether investors should add Trulieve stock now.
How Will Cannabis Be Federally Legalized In 2022?
There has been growing support for the legalization of cannabis recently, with several cannabis-related bills presented in Congress. With the aim of decriminalizing the use of medical and recreational cannabis…
