small-cap

One NASDAQ-Listed Cannabis Stock to Punt on: Tilray Brands Inc

Sep 12, 2022 | Team Kalkine

Read Time :5 min

One NASDAQ-Listed Cannabis Stock to Punt on: Tilray Brands Inc

Section 1: Company Fundamentals

1.1 Summary Table

1.2 The Key Positives, Negatives, and Investment summary

1.3 Key Metrics

TLRY over the last five years has been in a sharp upward trending momentum in its revenues and gross profits, the primary contributor being the improved legalization of cannabis in different parts of the world. TLRY has grown its revenues and gross margin at an impressive 5-year CAGR of 98.29% and 59.26% respectively but the price is currently trading at levels last seen in the Covid pandemic’s FY20 March correction and near to its all-time low of USD 2.43. Therefore, looking at the 5-year CAGR for topline financials and comparing it with the current price, TLRY seems to be undervalued. Furthermore, TLRY has improved on its balance sheet risk over the last five years with the company improving from levels of 2.17x in FY18 to a current Debt/Equity ratio of 0.14x in FY22.

Section 2: Tilray Brands Inc (“Speculative Buy” at the current market price of USD 3.41, as of September 12, 2022, at 09:15 am PDT)

2.1 Company Details

2.2 Valuation and Technical Guidance

Markets are trading in a highly volatile zone currently due to certain macroeconomic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: The reference data in this report has been partly sourced from REFINITIV.

Note 2: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 3: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and the uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect against further losses in case of unfavourable movement in the stock prices.

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