MariMed Wholesale Revenue Up 48% Driven By Top Marijuana Brands: Why Is This Weed Stock Undervalued?
MariMed Inc. (OTC: MRMD), a notable player in the US cannabis market, recently reported its financial results and forward-looking guidance, revealing strategic moves to navigate the sector’s evolving landscape.
In a detailed analysis, Pablo Zuanic, senior analyst at Zuanic & Associates highlighted the company’s position in a competitive market.
Guidance And Valuation Insights
Despite trading at 4.6x EBITDA—below the Multi-State Operator (MSO) average of 7.3x—MariMed’s brand portfolio shines, boasting a 48% increase in wholesale revenue for 2023 and projecting over 20% growth for 2024.
However, the company’s CY24 sales guidance falls short of expectations, estimated at $156-159 million, below the consensus of $175 million.
Adjusted EBITDA is anticipated to be around $25 million, slightly up from the previous year but still under the expected $38 million.
Zuanic attributes this conservative guidance to management’s caution, regulatory uncertainties, and market headwinds, including competitive pressures and price deflation in certain states.
Yet, he notes …