Summary TREES Corporation is a cannabis retailer and cultivator in the States of Colorado and Oregon. We presently operate six (6) cannabis dispensaries as follows: Englewood, Colorado 5005 S.
The business is unprofitable at the operating level (-21.91% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue grew 35.0%, still solid.
ROIC dropped from -9.70% to -12.57%, capital efficiency is deteriorating. Negative free cash flow of -$1M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$15M
▲ +35.0% YoY
Net Income (TTM)
-$5M
▲ +25.3% YoY
Op. Margin
-8.69%
▲ +1.7pp YoY
ROIC
-5.39%
▼ -2.9pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$460K
▲ +46.7% YoY
Op. Cash Flow (TTM)
-$460K
▲ +45.1% YoY
Net Debt
$18M
Cash & Equiv.
$245K
5Y CAGR: +60.2%
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