Over the past year, the cannabis industry has experienced a lot of volatility and Canadian Cannabis stocks lost most of their value. The COVID-19 deepened the crisis and some of the stocks are unlikely to survive. However, there are some that are in strong positions to survive the crisis and create wealth for investors going forward.
Aphria among Canadian cannabis stocks posting a consistent profit
Aphria Inc. (NASDAQ:APHA) is currently one of the safer Canadian cannabis stocks. The stock has managed to keep a better track record by staying in the black consistently. The cannabis operator has produced positive EBITDA in three of the past eight quarters.
In the most recent quarter, the company reported a net income of CA$5.7 million on net sales of CA$144 million. Also in the past nine months, it reported total revenue of CA$391 million realizing a net profit of CA$14 million in that period.
Canopy Growth has cash of $1.3 billion in its books
Another Canadian cannabis stock that is in a strong cash position is Canopy Growth Corp (NYSE:CGC). Most importantly the company is backed by deep pockets of beer maker, Constellation Brands (NYSE:STZ). With its new CEO, David Klein, the company has been restructuring and refocusing its strategy on the path to profitability.
In Q4 2020 the company reported revenue of CA$107 million and a negative EBITDA of CA$102 million. Despite the unconvincing quarter, Canopy is in a strong position and will survive the COVID-19 pandemic. It has cash of around $1.3 billion and $673.3 million in investments.
Cronos reducing its net losses
Cronos Group (NASDAQ:CRON) is also another stock with significant cash on its books to weather the crisis. The company has cash of around $1.1 billion in its books with near-term investments of $206 million. Its borrowings are almost $10 million which is negligible and net liquidity is over $1.3 billion. The company is in a strong position and has been reducing its net losses which dropped to $34 million in the recent quarter.