Canopy Growth Corporation, Undisputed Cannabis Industry Leader, Undervalued?

Canopy Growth Corporation, Undisputed Cannabis Industry Leader, Undervalued?

Canopy Growth’s (NYSE:CGC) recent report was filled with surprising results for their 2019 fiscal year Q3.

CGC continues to demonstrate why it is the undisputed leader of the cannabis industry. They’ve experienced phenomenal year-over-year growth and demonstrated incredible pricing power.

Now, if only we could turn back time to 2017 and pick up some CGC shares at $7 USD a pop. Well, it’s worth mentioning that even though CGC is currently trading +/- 7x higher – there is a fairly strong case CGC stock is still undervalued.

Remember: Canopy Growth now has $4 Billion cash from Constellation Brands in its coffers – just waiting to be deployed for substantial expansion into an industry with limited supply. If these supply constraints continue to inflate prices then revenues should increase with demand.

Detailed Q3 Results from Canopy Growth Website

Here are the highlights from CGC’s report:

• Cannabis shipments totaled 10,102 kilograms and kilogram equivalents.

• Net income of $74.9 million, including changes in fair values of financial liabilities included in Other Income

• Closed the previously announced $5 billion investment by Constellation Brands Inc and began putting that capital to work for shareholders with key acquisitions of Storz & Bickel and the assets of ebbu Inc.

• Expanded to new markets including United Kingdom and Peru, and announced intention to establish operations in New York State, marking the Company’s entry into the US hemp market.

• Intellectual property portfolio grew to 32 issued patents and over 140 patent applications, covering a range of target areas from technology to genetics to clinical formulations.

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Canopy Growth Corporation, Undisputed Cannabis Industry Leader, Undervalued?