Like other marijuana stocks, Tilray (TLRY) is trying to rein in losses, even as the U.S. election and President-elect Biden’s transition lift the sector and raise hopes of broader Canadian entry into the market. So, is Tilray stock a buy right now?
Tilray Stock Fundamental Analysis: Profits Elusive
Tilray stock began trading in July 2018 on the Nasdaq via an IPO. That IPO was the first on a big U.S. exchange from a pure-play cannabis company. But the stock largely fell through 2018 and last year, when industrywide concerns about profitability, sales growth and cash grew more severe.
Earnings growth is a staple of top stocks. But Tilray’s EPS Rating stands at a 23, with 99 being the best possible. Other marijuana stocks also have weak profit ratings. The EPS Rating is a gauge of a company’s profit growth.
In November, Tilray said it was “poised to deliver positive or break even Adjusted EBITDA in the fourth quarter of 2020.” EBITDA stands for earnings before interest, taxes, depreciation and amortization.
Third-quarter sales missed expectations. But the company’s loss was narrower than expected.
Tilray And The Election, Coronavirus
The company has tried to boost sales via its Canadian recreational business, international medical business, and via Manitoba Harvest, a hemp-foods company Tilray bought last year.
In the U.S., five states voted on Election Day to…