Aug. 13 at 1:17 PM
$VFF Some observations on
$CBWTF and
$VFF, Auxly ran up a ton and has a market cap of 240 million and is nearly VFFs market cap which is at 307 million. but because VFF has large net cash and auxly has net debt their EV is almost identical at around 250 million
Auxly is clearly growing and a profitable operator. Great great performance in Canada rec market. Continuous profitable market share gains. However they report in CAD and the difference in numbers is pretty stark. VFF had 15.4 million EBITDA, Auxly had EBITDA of 8 million EBITDA. Moreover because VFF has a better balance sheet it has more solid EBITDA to net income conversion. Auxly pays no income tax due to still having losses to carry over.
Both solid balance sheets, but VFF's is undeniably better. auxly is about 2x tangible book value, VFF is around 1x. VFF has much more cash, more PPE and lower debt.
IMHO at the same enterprise value, VFF has more profitability, better balance sheet and better international growth ops.
GLTA!
