Tilray (NASDAQ:) is a large-scale Canadian cannabis LP with global operations.

It is first in Canada among all cannabis producers for its geographic footprint and Canadian cannabis market share. A recent merger between Aphria (NASDAQ) and Tilray, another Canadian LP, significantly increased the company’s size as well as its revenue.

Tilray was the news story when it saw its stock rise from $7 per share up to $67 each share in January and February. As investors reflect on its long-term potential and new valuation, the stock price is currently at $12 per share. (See TLRY stock charts on TipRanks)

Although its stock has been down over the summer, I maintain a bullish rating.

Tilray’s Operations

The company holds the No. It holds the number 1 spot in Canada’s recreational and medical cannabis markets. It has grow facilities and processing plants in Ontario and British Colombia. From there, it distributes cannabis products to a wide range of customers across all provinces. The company has a Manitoba hemp/CBD processing and grow plant, from which it sells hemp products in Canada as well as the United States. 

Tilray has a European cannabis plant and processing facility in Portugal, Germany. From there, it exports to Australia, New Zealand and Israel. Tilray also operates cannabis businesses in Italy and Poland. It is well-positioned to expand its operations into the U.K. and France. The company has plans to expand its operations into Argentina.

SweetWater Brewery in Atlanta is owned by the company. It’s the eleventh-largest craft brewery in the United States. Tilray plans further expansion in the United States.

Tilray recently purchased the largest amount of convertible senior notes from MedMen, an American-based marijuana MSO. Tilray is entitled to the majority of the company’s shares upon federal legalization.

Q4 2021 Earnings Post Aphria Merger

Tilray reported Q4 net revenue of $142.2 million, showing a 25% increase compared to the prior year’s quarter. The gross profit was $22.5million. The revenue report only represents one month’s performance since the company’s merger with Aphria. This revenue report breaks down the segments as follows: Distribution ($66.7million), Cannabis ($53.7million), Alcoholic Beverages ($15.9million) and Wellness ($5.8million). 

The company reported a net income of $33.6 million, compared to a net loss in the prior year’s quarter. The company has cash of $488.5million, $883.6 million of current assets, and $6 billion in total assets. The company’s total current and future liabilities is $1.6 billion.

The company’s estimated quarterly revenue for Q1 2022 is $180 million.

Wall Street Price Target (NYSE:)

According to Wall Street, Tilray has a Moderate Buy consensus rating, based on three Buys and seven Holds assigned in the past three months. Tilray’s average price target of $16.77 implies an upside potential of 39.6%.

Conclusion

In conclusion, cannabis-minded investors should keep an eye on Tilray.

Tilray has the most extensive geographical reach in the marijuana industry and is present in many countries. It also operates in CBD/wellness, craft brewing, and medical cannabis.

The company’s future revenue prospects are brighter after Aphria’s merger.

Disclosure: Alan Sumler was employed by Tilray at the time of this publication.

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