Is Aurora The Best Value MJ Co. Based Upon Sales Metrics???Here is a copy and paste of a post which I just made on the Canopy boards:
longonMJ wrote: Now that we have all of the September quarter ending financials for the big 3 MJ companies that came out this week, it would appear that Aurora seems to have the best value out of the big 3 based upon the key metric of top line sales revenues.
Canopy's 2019 Q2 sales came in with a surprisingly sequential decline at only $23.3M for a share price to sales ratio of 642. Tilray came in with September quarter ending top line sales of only $10M for a share price to sales ratio of 932. Aurora was the first to be taken to the woodshed on Monday as they came in with top line sales of $29.6M (excluding some of Medreleaf prior to the official takeover) for a share price to sales ratio of only 262. Looks like the ratio would have been down to only 220 if they had included all of the revenues for Medreleaf in the quarter.
Nevertheless, this would appear to indicate that out of the big 3 MJ companies, that Aurora would be the most undervalued by a long shot. In fact, if the share price for both Canopy and Tilray were given the same value that Aurora received for their sales revenues, the share price for Canopy would only be $18.10 as opposed to their current low $40's. The share price for Tilray would only be $28.13 as opposed to their current price of $100.
It looks like that's the clear advantage of being first into the big American market where you can have a head start on building your name and your brand. Not sure if Aurora will ever receive the same benefit of the doubt in terms of their valuations, but to me it looks like the much safer bet going forward as the investment community will eventually start to understand the financials behind the MJ companies a lot better as the industry becomes more established.
All I can say is that this bodes well for the Aurora longs if they are willing to stick it out for the long term.
GLTA