Village Farms International Sustains High Cannabis EBITDA Margins, Setting Stage For Growth, Market Research Shows
With the cannabis sector experiencing dynamic shifts, Village Farms International (NASDAQ: VFF) emerges as a key player, poised for significant growth. Senior analyst Pablo Zuanic, from Zuanic & Associates, highlights pivotal catalysts propelling VFF forward in the ever-evolving cannabis market.
“From a stock perspective, we continue to believe the stock is attractively valued at 0.5x EV/current sales on the aggregate, and with the cannabis unit valued at 3.3x EBITDA our CY25 estimates,” Zuanic wrote.
Steady Growth And Positive Outlook
VFF stands out with sustained cannabis EBITDA margins in the high teens, indicating robust operational performance.
Notably, the company exhibits consistent free cash flow generation, a trend solidified in 3Q23 after a period of fluctuation.
Domestic Market Resurgence
An encouraging turnaround in domestic recreational market share trends positions VFF favorably. Momentum has surged since July ’23, with VFF posting impressive sales growth in 4Q23, surpassing top competitors.
According to Hifyre scanner data, VFF’s sales growth in 4Q23 reached $89.5 million, marking a significant achievement in the competitive landscape of the cannabis sector.
Analyzing Canadian Market Dynamics
While challenges such as market deceleration and pricing fluctuations persist, VFF maintains a resilient position.
In addition to Village Farms International, several other …