Tilray Brands, Inc. (NASDAQ: TLRY)

Sector: Healthcare Industry: Drug Manufacturers - Specialty & Generic CIK: 0001731348
Market Cap 820.12 Mn
P/B 0.53
P/E -0.38
P/S 0.99
ROIC (Qtr) -15.06
Div Yield % 0.00
Rev 1y % (Qtr) 4.73
Total Debt (Qtr) 323.74 Mn
Debt/Equity (Qtr) 0.21

About

Tilray Brands, Inc., commonly recognized through its stock symbols TLRY and TLRYF, is a prominent player in the global lifestyle consumer products industry, with a primary focus on cannabis, beverage, wellness, and entertainment. The company's operations span across various countries and regions, including Canada, the United States, Europe, Australia, New Zealand, and Latin America. Tilray's primary business activities encompass the cultivation, production, distribution, and sale of both medical and adult-use cannabis products. Additionally, the...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 264.83M provide 8.29x coverage of short-term debt 31.96M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 1.31B provides 4.03x coverage of total debt 323.74M, indicating robust asset backing and low credit risk.
  • Strong free cash flow of (89.25M) provides 4.93x coverage of acquisition spending (18.11M), indicating disciplined M&A strategy.
  • Cash position of 264.83M provides exceptional 36.36x coverage of minority interest expenses 7.28M, indicating strong liquidity.
  • Robust tangible asset base of 1.31B provides 3.01x coverage of working capital 433.51M, indicating strong operational backing.

Bear case

  • Operating cash flow of (60.63M) barely covers its investment activities of 27.14M, with a coverage ratio of -2.23, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 264.83M provide limited coverage of acquisition spending of (18.11M), which is -14.62x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of (60.63M) shows concerning coverage of stock compensation expenses of 22.42M, with a -2.70 ratio indicating potential earnings quality issues.
  • Operating cash flow of (60.63M) provides minimal 0.49x coverage of tax expenses of (124.19M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Free cash flow of (89.25M) provides weak coverage of capital expenditures of 28.61M, with a -3.12 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the Drug Manufacturers - Specialty & Generic
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ZTS Zoetis Inc. 56.15 Bn 21.18 5.98 7.27 Bn
2 TAK Takeda Pharmaceutical Co Ltd 48.92 Bn 221.13 1.66 36.24 Bn
3 HLN Haleon plc 46.13 Bn 25.59 3.29 -
4 TEVA Teva Pharmaceutical Industries Ltd 35.27 Bn 49.54 2.10 17.07 Bn
5 UTHR UNITED THERAPEUTICS Corp 21.76 Bn 17.11 6.95 0.00 Bn
6 VTRS Viatris Inc 14.87 Bn -4.03 1.05 14.44 Bn
7 NBIX Neurocrine Biosciences Inc 14.08 Bn 32.91 5.25 0.43 Bn
8 ELAN Elanco Animal Health Inc 11.64 Bn 323.29 2.54 4.32 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.45 24.98
EV to Cash from Ops. EV/CFO -15.29 -85.40
EV to Debt EV to Debt 2.86 265.88
EV to EBIT EV/EBIT -0.41 -32.65
EV to EBITDA EV/EBITDA -0.43 -29.50
EV to Free Cash Flow [EV/FCF] EV/FCF -10.39 -32.62
EV to Market Cap EV to Market Cap 1.13 -10.98
EV to Revenue EV/Rev 1.12 -700.14
Price to Book Value [P/B] P/B 0.53 27.22
Price to Earnings [P/E] P/E -0.38 -122.96
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.34
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.81
Dividend per Basic Share Div per Share (Qtr) 0.00 0.07
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.08
Interest Coverage Int. cover (Qtr) -83.93 -38.10
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -21.06 -157.22
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 29.07 44,776.25
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.81
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -967.73 24.45
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -3,888.61 18.14
EBIT Growth (1y) % EBIT 1y % (Qtr) -888.24 37.66
EBT Growth (1y) % EBT 1y % (Qtr) -762.04 108.18
EPS Growth (1y) % EPS 1y % (Qtr) -777.78 52.88
FCF Growth (1y) % FCF 1y % (Qtr) -20.59 -54.47
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -0.22 25.28
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.40 0.50
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.99 2.10
Current Ratio Curr Ratio (Qtr) 2.62 3.92
Debt to Equity Ratio Debt/Equity (Qtr) 0.21 -1.11
Interest Cover Ratio Int Coverage (Qtr) -83.93 -38.10
Times Interest Earned Times Interest Earned (Qtr) -83.93 -38.10
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -256.70 -62,432.09
EBIT Margin % EBIT Margin % (Qtr) -270.82 -63,260.88
EBT Margin % EBT Margin % (Qtr) -274.04 -66,726.96
Gross Margin % Gross Margin % (Qtr) 28.70 8,332.72
Net Profit Margin % Net Margin % (Qtr) -259.10 -66,728.37