WM Technology (MAPS)
WM Technology (NASDAQ:MAPS), the company behind Weedmaps, the leading online platform for cannabis enthusiasts, is an interesting player in the marijuana market. Although its Q2 2023 revenue declined slightly year-over-year, its monthly customer base grew modestly.
However, the average revenue per monthly customer declined. Although net earnings declined, there was an improvement in adjusted EBITDA, which is a positive sign. In addition, the company lacks debt and has $24.6 million in cash.
WM Technology is marking cannabis season with its “Power of Weed” campaign, offering 20 Days of Deals ahead of 420. Each day, consumers can take advantage of special offers, from exclusive products to new product launches.
This campaign focuses on highlighting the best cannabis deals in adult-use markets across the country and is available in most markets where recreational cannabis is legal.
Scotts Miracle-Gro (SMG)
Scotts Miracle-Gro (NYSE:SMG) is a leader in the world of consumer gardening products. It offers a wide range of products for outdoor and indoor gardening, including hydroponics. SMG has attracted attention as a potentially undervalued investment in the cannabis market.
Financially, the company had a challenging quarter, with a decline in total sales due to a pullback in its Hawthorne subsidiary. However, consumer sales in the United States have increased. In addition, the company has achieved a significant improvement in cash flow so far this year and has implemented a program expected to save over $300 million. While the company forecasts a decline in annual sales, they have adjusted their credit agreement to provide more operating flexibility.
One interesting aspect is the #ThinkWaterPositive initiative, which shows the company’s commitment to preserving water resources and environmental responsibility. That involves water-saving product innovation, collaborations with non-profit organizations and educating consumers about responsible water use in gardening, especially in drought-prone regions.
On the leadership side, they have announced a succession plan for its president and Chief Operating Officer (COO) Mike Lukemire, who will retire in 2024. That ensures a smooth transition with the promotion of seasoned executive Nate Baxter as COO.
Philip Morris International (PM)
Philip Morris International (NYSE:PM) is a large tobacco company noted for its innovative approach to the tobacco industry. The company is known for products such as IQOS ILUMA, which does not burn tobacco but heats it instead, thereby reducing harmful substances. That has resulted in increased consumer satisfaction and more smokers quitting traditional cigarettes.
In addition to its commitment to innovation and environmental responsibility, PM also demonstrates strong financial performance. In the third quarter of 2023, the company reported impressive diluted Earnings Per Share (EPS) of $1.32 and an even better adjusted EPS of $1.67. That indicates solid financial performance and continued improvement.
Most notable is the EPS growth of 20.3% in currency-neutral terms, suggesting PMI is experiencing significant earnings growth. In addition, the company set ambitious goals for the full year 2023. It projects a reported diluted EPS target of between $4.95 and $4.98 and an adjusted diluted EPS of between $6.05 and $6.08. That shows the company’s confidence in its ability to continue growing.
As of this writing, Gabriel Osorio-Mazzilli did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Gabriel Osorio is a former Goldman Sachs and Citigroup employee. He possesses discipline in bottom-up value investing and volatility-based long/short equities trading.