3 Marijuana Stocks That Beat Canopy Growth Corp (TSX:WEED) to Profitability

Canopy Growth Corp (TSX:WEED)(NYSE:CGC) made headlines for its strong earnings in Q3, but these three cannabis companies became profitable earlier

| More on:
Where to Invest?

Image source: Getty Images

In Q3, Canopy Growth Corp (TSX:WEED)(NYSE:CGC) hit a major milestone by achieving $74 million in net income. Although it was not the company’s first profitable quarter, it was the first time it achieved profits that were high as a percentage of revenue. The quarter was seen as a watershed moment for the company, cementing its status as the king of the cannabis castle.

Canopy’s Q3 earnings showcased a business moving closer and closer to consistent profits. Although the company posted an operating loss in the quarter, the loss was down from the prior quarter, indicating that Canopy is inching toward both net and operating profitability.

Pivotal as last quarter was for Canopy, it was not the first time a cannabis producer posted a sizable profit. In fact, not only have other cannabis companies posted positive net income and diluted EPS before, but many of them got there much quicker than Canopy did. The following are three marijuana stocks with consistent profitability track records that beat Canopy to the punch.

CannTrust Holdings (TSX:TRST)(NYSE:TRST)

CannTrust is easily one of the most profitable cannabis companies on the TSX right now. In all of its past four quarters, it has had positive net AND operating income, making it one of the first cannabis companies to hit this milestone. Of course, this isn’t hard to explain. CannTrust is not a very large cannabis producer, and isn’t making the massive investments in global infrastructure that a Canopy (for example) is. In the long run, this could hurt its gains. But for now, its lean operations make it one of the cheapest marijuana stocks around.

Aphria Inc (TSX:APHA)(NYSE:APHA)

Aphria may be one of the most controversial marijuana stocks in the world. Faced with short attacks, lawsuits and hostile takeover bids, it’s been a magnet for drama. However, this hasn’t stopped it from being profitable: the company has had positive net income in three of the past four years and three of the past four quarters. In its most recent quarter, Aphria had about $54 million in net income–in prior quarters, it posted positive operating income as well.

Organigram Holdings (TSX:OGI)

Organigram Holdings is one of the smaller TSX cannabis stocks, but it punches above its weight in terms of profitability. In its most recent quarter, it posted $12.7 million in sales, up 287% from the same quarter a year before. On top of those sales, the company earned $29 million in net income. However, it’s important to note that Organigram’s results for that quarter included a $49 million fair value adjustment that drove the earnings figure higher than it would otherwise be. Even taking that out of the equation, however, the company still had $2.9 million in free cash flow–an incredible achievement for any company in the cannabis space.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Andrew Button has no position in any of the stocks mentioned.

More on Cannabis Stocks

A cannabis plant grows.
Cannabis Stocks

TLRY Stock: Here’s What’s Coming in 2023

Tilray Inc. (TSX:TLRY) is geared up for big growth this decade and looks like one of the top cannabis stocks…

Read more »

A person holds a small glass jar of marijuana.
Cannabis Stocks

Canopy Growth Stock: Here’s What’s Coming in 2023

Canopy Growth stock has made a lot of new moves in the last few months, but where is the company…

Read more »

A cannabis plant grows.
Cannabis Stocks

Better Cannabis Buy: Canopy Growth Stock or Tilray?

Only two TSX weed stocks can deliver substantial returns in the highly anticipated growth of the global cannabis market.

Read more »

Medicinal research is conducted on cannabis.
Cannabis Stocks

Is Tilray Stock a Buy in January 2023?

Tilray stock has lost 50% of its value in the last 12 months, in line with its peers.

Read more »

Pot stocks are a riskier investment
Cannabis Stocks

Are Cannabis Stocks Still a Thing in 2023?

The whole question of whether cannabis stocks are still relevant in 2023 is an interesting one. Here's my take on…

Read more »

A cannabis plant grows.
Cannabis Stocks

Why Canopy Growth Stock Fell 72% Last Year

Canopy Growth stock is a beaten-up cannabis giant that is trading at a discount compared to historical multiples. But is…

Read more »

Cannabis grows at a commercial farm.
Cannabis Stocks

Is SNDL Stock a Buy in January 2023?

SNDL is among the worst-performing cannabis stocks in the last three years. But is SNDL stock a buy right now?

Read more »

a person watches a downward arrow crash through the floor
Cannabis Stocks

Why Tilray Stock Fell Almost 60% in 2022

Tilray is a Canadian cannabis stock that is down 93% from all-time highs. Let's see if TLRY stock is a…

Read more »