Tilray Inc. (NASDAQ: TLRY) is a Canadian cannabis company that focuses on medical cannabis and cannabinoid research, production, and distribution. It develops and sells dried cannabis products and extracts for adult-use and medical markets.
This stock is interesting not only for its bargain price but also for its future potential. It has a higher level of diversification than many direct competitors. In addition to traditional cannabis products, it also develops hemp products including seed, foods, and CBD extracts. Its legal hemp business offers it some protection from inconsistent cannabis legislation in the United States.
Tilray reported Q1 earnings over the weekend, with a -$183.1 million loss, equal to -$1.73 per share. The company cited a weakening Canadian dollar, as well as significant one-off non-cash charges from a stalled U.S. distribution deal. Despite the negatives in the report, the company grew its quarterly revenue year over year in the first quarter, jumping from $7.9 million in 2019 to $52.1 million today. With one-off charges accounted for in the first quarter, future earnings performance is likely to improve.
Investors that can see past the short-term difficulties will find a well-diversified and fully integrated cannabis company with a lot of growth potential. A continued push for legislation in the United States will only expand this company’s addressable market. It has the operational experience and scalability to expand. Its bargain price makes it a solid pick for long term growth in the wider legal cannabis industry.
- 1 Year Price Growth: -83.42%
- YTD Price Growth: -52.83%
- 3 Month Price Growth: -52.08%
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