Is Jushi a Buy?

By newsfeedback@fool.com (David Jagielski)5 days ago

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Jushi Holdings(OTC:JUSHF) has been one of the hottest pot stocks on the markets over the past year, soaring nearly 700% in value and eclipsing theHorizons Marijuana Life Sciences ETF, which is up 120% during that time. Although the multistate operator is growing in size, so too is its valuation. And there are also concerns about its hefty debt load.

However, there are many more factors to consider. Below, I'll look at how the business is doing, its future, and its valuation to help assess whether you should invest in Jushi or if you are better off buying shares of another cannabis company instead.

Image source: Getty Images.

What do Jushi's numbers say?

The company reported its third-quarter results on Nov. 24. Sales for the period ending Sept. 30 totaled $24.9 million, 66.8% higher than the $14.9 million that Jushi reported in the previous quarter. The company achieved great organic growth, with same-store sales rising by 45% (this excluded temporarily closed stores).

The high growth rate is impressive, and the company also posted an adjusted EBITDA profit of $1.9 million. This marked the first time the company finished a quarter in the black. In January, management said it expects revenue for the fourth quarter to come in between $32 million and $33 million, which would be a quarter-over-quarter increase of about 31%.

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