Tilray Brands Analysis
More than half of the states in the U.S. have now legalized the use of medicinal cannabis, clearing the way for cannabis companies to begin taking on the market, legally. Tilray is one of those companies, which became a popular name early on when it went public in 2018. The company became an instant sensation, rallying as high of $300 a few months later on hopes that they’ll be the “one” in the cannabis space. Those dreams were crushed in the months and years that followed, with Tilray falling to lows of $1.50 last year.
During this period of correction, the company’s fundamentals have grown more attractive, making it a viable play in the industry. Tilray has grown their annual revenue from $20M in 2017 to $788M as of 2023. Their net income is still negative so the company is yet to post any profits, but that may be overlooked if they can continue growing revenue at a strong pace. They grew YoY revenue at 25% in 2023, and so far by 25% in Q1 of 2024, a promising sign. The remainder of Tilray’s financial statements are still too young to call it a safe long term investment. It is however a strong player in the game that could be around for a while.
The laws around the cannabis industry are still touch and go, so these companies are still subjected to changes. If one plans to invest into it, it must be seen as a high risk investment. There are many other cannabis companies on the market that are growing rapidly, which one will be the long term winner is tough to say. If you want to be savvy and take a different approach, consider Innovative Industrial Properties (IIPR), which is a company that focuses on finding cannabis related real estate.