Trulieve Cannabis Corp Up 36% in 2021 After Opening 4 New Locations
Trulieve Stock Still Has a Lot More Room to Run
Trulieve Cannabis Corp (CNSX:TRUL, OTCMKTS:TCNNF) was one of the best U.S. pot stocks in 2020, and that momentum has carried into 2021. TCNNF stock soared 167% in 2020 and it has rallied 36% in 2021. And by all accounts, the Florida-based multi-state operator is just getting started.
Last November, Trulieve announced record third-quarter results, with its revenue advancing 93%, its 11th consecutive quarter of profitability, and a strong cash position. There’s every reason to believe the company will report the same kinds of numbers for the fourth quarter. That report should be released in early April.
While 2021 is still in its infancy, Trulieve Cannabis Corp has already announced that it opened four new dispensaries, launched a new product, and received four dispensary permits in West Virginia—giving it a presence in six states.
TCNNF Stock Overview
Trulieve is the first and leading medical cannabis company in the state of Florida. In addition to having 1.9 million square feet of indoor facilities and greenhouse cultivation space across Florida, the vertically integrated seed-to-sale pot company operates 79 dispensaries nationwide. (Source: “Investor Relations,” Trulieve Cannabis Corp, last accessed February 18, 2021.)
On February 11, Trulieve opened its third dispensary in Jacksonville, FL. This is Trulieve’s 74th location in Florida.
Thanks to its strong presence in the Sunshine State, Trulieve has cornered roughly 51% of the Florida market. The company sells more than 500 stock-keeping units (SKUs) and is always adding new items to its product line.
Trulieve Cannabis Corp also has operations in California, Massachusetts, Connecticut, and Pennsylvania. In early February, the company was awarded four permits for dispensaries in West Virginia.
Record Third-Quarter Results
Last November, Trulieve announced that its revenue for the third quarter ended September 30 jumped 93% year-over-year and 13% quarter-over-quarter to a record $136.3 million. (Source: “Trulieve Achieves Record Third Quarter Results, Enters 6th State,” Trulieve Cannabis Corp, November 17, 2020.)
The company reported third-quarter net income of $17.4 million, or $0.15 per share. Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were up 83% year-over-year and 12% sequentially at $67.5 million, or 50% of its revenue.
This represents the company’s 11th quarter of consecutive growth and profitability.
Trulieve Cannabis Corp maintained its strong financial position, with cash and cash equivalents of $193.4 million.
During the third quarter, Trulieve entered two additional states, introduced its own line of edibles, announced an acquisition in Pennsylvania, and was awarded a processor license in West Virginia. Trulieve also achieved its 2020 goal of opening 68 stores nationwide.
Analyst Take
Trulieve Cannabis Corp is one of the most compelling multi-state marijuana operators. The company has been reporting record revenue and earnings, opening new dispensaries, entering new states, and launching new products. It also has a strong balance sheet.
2020 was a monumental year for Trulieve stock, and 2021 could be transformative.
