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Trulieve Cannabis (TSE:TRUL)
:TRUL
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Trulieve Cannabis
(OTC:TRUL)
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Rating:56Neutral
Price Target:
C$10.00
▼(-1.57% Downside)
Trulieve Cannabis's stock score is primarily influenced by its financial performance and technical analysis. The company faces challenges with declining revenue and profitability, but strong gross margins and improved cash flow management are positive signs. Technical indicators show bullish momentum, supporting a higher score. However, the negative P/E ratio and lack of dividend yield weigh down the valuation score, impacting the overall assessment.
Positive Factors
Negative Factors
Trulieve Cannabis (TRUL) vs. iShares MSCI Canada ETF (EWC)
Market Cap
$1.83B
Dividend YieldN/A
Average Volume (3M)349.14K
Price to Earnings (P/E)―
Beta (1Y)2.14
Revenue Growth4.92%
EPS Growth-64.84%
CountryCA
Employees6,000
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.10
Shares Outstanding167,882,980
10 Day Avg. Volume175,986
30 Day Avg. Volume349,143
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)0.78
Price to Sales (P/S)0.83
P/FCF Ratio8.46
Enterprise Value/Market Cap0.84
Enterprise Value/Revenue1.30
Enterprise Value/Gross Profit2.12
Enterprise Value/Ebitda5.62
Forecast
1Y Price Target
$20.58Price Target Upside102.51% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Trulieve Cannabis Business Overview & Revenue Model
Company DescriptionTrulieve Cannabis Corp., together with its subsidiaries, operates as a medical cannabis company. It cultivates and produces products in-house and distributes its products to Trulieve branded stores (dispensaries) in Florida, as well as through home delivery. The company produces flower, edible, vaporizer cartridge, concentrate, topical, capsule, tincture, dissolvable powder, and nasal spray products under the Avenue, Cultivar Collection, Muse, Modern Flower, Alchemy, Momenta, Sweet Talk, Co2lors, Loveli, and Roll One brands. As of March 16, 2022, it operated 162 dispensaries, which included 113 dispensaries in Florida, 19 affiliated dispensaries in Pennsylvania, 17 dispensaries in Arizona, five dispensaries in California, three dispensaries in Maryland, two dispensaries in Massachusetts, two dispensaries in West Virginia, and one dispensary in Connecticut. Trulieve Cannabis Corp. also operated cultivation and processing facilities in Arizona, Colorado, Florida, Maryland, Massachusetts, Nevada, Pennsylvania, and West Virginia. The company was formerly known as Schyan Exploration Inc./Exploration Schyan Inc. and changed its name to Trulieve Cannabis Corp. in September 2018. Trulieve Cannabis Corp. was incorporated in 1940 and is headquartered in Quincy, Florida.
How the Company Makes MoneyTrulieve generates revenue primarily through the sale of cannabis products in its retail dispensaries, as well as through wholesale distribution to other licensed retailers. The company's core revenue streams include direct sales from its dispensaries, which are strategically located in high-demand areas, and online sales through its e-commerce platform. Trulieve also benefits from its cultivation and production facilities, which allow for cost-effective operations and supply chain control. Additionally, partnerships with local suppliers and other cannabis companies enhance its product offerings and market reach. The legalization of cannabis in various states and Trulieve's ability to scale its operations further contribute to its earnings potential.
Trulieve Cannabis Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted stable revenue and significant growth in wholesale and branded product sales, alongside strong gross margins and cash flow. However, challenges include net losses, pricing compression, and anticipated seasonal revenue decline. Advocacy for federal cannabis reform and innovative product launches provide optimism for future growth.Q2-2025 Updates
Positive Updates
Stable Revenue and Growth in Key Markets
Second quarter revenue was $302 million, comparable to last year and up 1% sequentially. Market share growth was noted in Arizona and Florida, with higher Trulieve branded product sales in Pennsylvania.
Strong Gross Margin and Cash Flow
Gross margin improved to 61%, and operating cash flow was $86 million, contributing to $401 million in cash at quarter end.
Wholesale Revenue Growth
Wholesale revenue grew 27% compared to last year, with expanded relationships in Maryland and Pennsylvania.
Branded Product Success
Trulieve sold over 12.5 million branded product units in the second quarter, with Modern Flower and Roll One representing 50% of branded products sold.
Federal Cannabis Reform Advocacy
Trulieve is actively engaged in federal reform efforts, with optimism for rescheduling cannabis to Schedule III and strong bipartisan support for the SAFER Banking Act.
Innovative Product Launches
Launch of new THC beverage lines Onward and Upward, with cases sold up 300% compared to the pilot launch. New flavors are being introduced in the coming months.
Negative Updates
Continued Pricing Compression
Retail traffic and units sold increased, but this was offset by pricing compression and loyalty point redemption.
Net Loss for the Quarter
Second quarter net loss was $14 million, compared to a loss of $12 million last year. Loss per share was $0.07.
Challenges with Consumer Spending
Despite increased frequency of customer visits, the average basket size and spend per visit have decreased.
Seasonal Revenue Decline Expected
Third quarter revenue is anticipated to be down mid-single digit percentage sequentially, in line with historical seasonal patterns.
Company Guidance
During the Trulieve Cannabis Corporation's second-quarter 2025 earnings call, the company provided guidance indicating a strong financial performance. Trulieve reported a second-quarter revenue of $302 million, showing a 1% sequential increase, with a gross margin of 61%, a 1% improvement from the previous year. The company achieved an adjusted EBITDA of $111 million, reflecting a 37% margin, which is a 2% increase year-over-year, driven by high gross margins and strict expense control. Operating cash flow was $86 million, contributing to a cash reserve of $401 million at the end of the quarter. The company anticipates third-quarter revenue to decrease by a mid-single-digit percentage sequentially due to historical seasonal patterns, with an expectation for the full-year gross margin to be comparable to 2024. Trulieve also expects full-year operating cash flow of at least $250 million and capital expenditures of up to $40 million. The company remains optimistic about federal cannabis reform and is focused on strategic objectives, including branded products, distribution, and customer engagement.Trulieve Cannabis Financial Statement Overview
Summary
Trulieve Cannabis faces challenges with declining revenue and profitability, impacting its overall financial health. While the company maintains a strong gross profit margin and improved cash flow management, negative net income and return on equity highlight areas needing attention. The balance sheet remains stable, but future growth and profitability improvements are crucial for long-term success.Income Statement
Trulieve Cannabis has experienced declining revenue growth, with a negative growth rate of -11.4% in the TTM period. The company struggles with profitability, as evidenced by a negative net profit margin of -14.06%. However, the gross profit margin remains relatively strong at 61.29%, indicating efficient production processes. The EBIT and EBITDA margins are positive, but lower than previous years, reflecting challenges in operational efficiency.45
Neutral
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio of 0.67, suggesting a balanced approach to leveraging. However, the return on equity is negative at -13.25%, indicating inefficiencies in generating returns for shareholders. The equity ratio stands at 41.92%, showing a stable capital structure but highlighting potential risks if profitability does not improve.50
Neutral
Cash Flow
Cash flow analysis reveals a significant improvement in free cash flow growth at 111.6% in the TTM period, indicating better cash management. The operating cash flow to net income ratio is strong at 1.60, suggesting effective cash generation relative to net income. However, the free cash flow to net income ratio is only 0.30, pointing to challenges in translating earnings into free cash flow.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.19B | 1.19B | 1.13B | 1.24B | 938.38M | 521.53M |
| Gross Profit | 726.44M | 715.75M | 588.63M | 682.00M | 566.13M | 386.42M |
| EBITDA | 274.49M | 282.80M | -21.98M | 239.75M | 283.59M | 207.87M |
| Net Income | -166.65M | -155.10M | -526.80M | -205.10M | 18.03M | 63.00M |
Balance Sheet | ||||||
| Total Assets | 2.92B | 2.87B | 2.73B | 3.40B | 3.41B | 816.11M |
| Cash, Cash Equivalents and Short-Term Investments | 392.58M | 299.20M | 201.37M | 212.30M | 230.65M | 146.71M |
| Total Debt | 823.70M | 824.46M | 792.57M | 1.03B | 859.02M | 168.60M |
| Total Liabilities | 1.71B | 1.62B | 1.32B | 1.47B | 1.26B | 368.21M |
| Stockholders Equity | 1.23B | 1.26B | 1.41B | 1.93B | 2.15B | 447.90M |
Cash Flow | ||||||
| Free Cash Flow | 60.28M | 116.82M | 146.35M | -161.49M | -293.22M | -47.10M |
| Operating Cash Flow | 197.84M | 271.48M | 201.84M | 23.10M | 12.90M | 99.64M |
| Investing Cash Flow | -119.90M | -206.62M | -37.47M | -215.06M | -215.18M | -174.65M |
| Financing Cash Flow | -33.05M | -33.44M | -175.59M | 177.80M | 289.23M | 129.91M |
Trulieve Cannabis Technical Analysis
Positive
10.16
Price Trends
8.84
Positive
7.21
Positive
6.81
Positive
Market Momentum
0.11
Positive
51.89
Neutral
30.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TRUL, the sentiment is Positive. The current price of 10.16 is below the 20-day moving average (MA) of 10.73, above the 50-day MA of 8.84, and above the 200-day MA of 6.81, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 51.89 is Neutral, neither overbought nor oversold. The STOCH value of 30.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TRUL.
Trulieve Cannabis Risk Analysis
Trulieve Cannabis disclosed 56 risk factors in its most recent earnings report. Trulieve Cannabis reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Trulieve Cannabis Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | 812.46M | 149.03 | -0.64% | 4.89% | 0.03% | -56.81% | |
69 Neutral | 1.36B | 52.21 | 1.71% | ― | 31.72% | 0.00% | |
68 Neutral | 2.44B | 62.06 | 1.61% | ― | 7.06% | -54.16% | |
56 Neutral | $1.83B | ― | -12.60% | ― | 4.92% | -64.84% | |
56 Neutral | 2.62B | -7.45 | -28.04% | ― | -2.64% | 1.65% | |
55 Neutral | 599.70M | -7.43 | -10.28% | ― | -5.65% | 73.45% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
Performance Comparison
TSE:TRUL
Trulieve Cannabis
9.60
-5.61
-36.88%
CRON
Cronos Group
2.67
0.44
19.73%
CURLF
Curaleaf Holdings
2.60
-0.38
-12.75%
GTBIF
Green Thumb Industries
7.80
-2.50
-24.27%
CRLBF
Cresco Labs
1.06
-0.59
-35.76%
TSE:DHT.UN
DRI Healthcare
14.88
3.16
26.96%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.