Verano Holdings (VRNO) AI Stock Analysis

• Market Cap: C$2.17B
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• Revenue Growth: -4.13%
• EPS Growth: -218.59%
• Country: CA
• Employees: 3,800
• Sector: Healthcare
• Sector Strength: 42
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.04
• Shares Outstanding: 359,718,320
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$3.50
• Price Target Upside: -44.58% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 52 Neutral
• Price Target: C$6.50 ▲( 2.85% Upside)

Verano Holdings is currently facing financial and operational challenges, with declining revenues and negative profitability impacting its financial performance. The technical analysis indicates a stagnant market position, and valuation is unattractive due to negative earnings. Despite these challenges, the company is making strategic moves to expand its retail footprint, which could support long-term growth if successfully executed.

Positive Factors

Earnings

Verano reported strong Q2 results, with profitability margins and adjusted EBITDA contribution both exceeding expectations, demonstrating strong operational execution.

Growth Potential

Verano launched adult-use sales in Ohio on the first day of market launch, positioning it as a key growth lever with significant sales potential.

Market Expansion

The acquisition of CBST's assets in Arizona and Virginia will expand Verano's operations and penetrate the Virginia medical market for the first time.

Negative Factors

Revenue Challenges

Solid growth in wholesale revenue offset by a decline in retail revenue, primarily driven by the expected productivity decline in NJ.

Verano Holdings Business Overview & Revenue Model

Company Description

Verano Holdings Corp. operates as a vertically integrated multi-state cannabis operator in the United States. The company engages in the cultivation, processing, wholesale, and retail distribution of cannabis in Arizona, Arkansas, California, Connecticut, Florida, Illinois, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, Ohio, Pennsylvania, and West Virginia. It offers artisanal cannabis products under the Encore, Avexia, MUV, Savvy, BITS, and Verano brands for medical and adult-use markets. The company is headquartered in Chicago, Illinois.

How the Company Makes Money

Verano Holdings generates revenue through multiple streams, primarily from the sale of cannabis products across its retail dispensaries and wholesale distribution channels. The company cultivates and processes cannabis in its state-of-the-art facilities, ensuring a consistent supply of high-quality products. Retail sales contribute significantly to Verano's revenue, as the company operates numerous dispensaries in key markets. Additionally, it engages in wholesale transactions, supplying cannabis products to other dispensaries and third-party retailers. Verano's strategic partnerships and acquisitions often enhance its market presence and expand its product offerings, further bolstering its revenue generation capabilities. The company also benefits from its strong brand portfolio, which attracts a loyal customer base and drives sales growth.

Verano Holdings Financial Statement Overview

Summary

Verano Holdings faces significant financial challenges, with declining revenues and profitability. Operational cash flows remain positive, but the company struggles with consistent revenue growth and net losses. The balance sheet shows moderate leverage but decreasing financial stability.

Income Statement

Verano Holdings has faced significant challenges in profitability, with declining gross profit and net profit margins. The company reported negative net income in the latest period, indicating operational difficulties. Revenue growth has been inconsistent, with a notable decline from 2022 to 2024. EBIT and EBITDA margins have also deteriorated, suggesting pressure on operational efficiency.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, indicating manageable leverage levels. However, the equity ratio has declined, reflecting reduced financial stability. Return on equity remains negative due to ongoing net losses. The company's total assets have also decreased, which could limit future growth potential.

Cash Flow

Cash flow from operations remains positive, which is a positive indicator amidst the company's struggles. Free cash flow growth is modest but positive, reflecting some capacity to generate cash after capital expenditures. The operating cash flow to net income ratio is strong, suggesting efficient cash conversion from operations despite net losses.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
878.59M	938.45M	1.14B	925.07M	306.53M
	Gross Profit
443.93M	475.21M	534.79M	405.23M	157.02M
	EBIT
-237.18M	84.78M	86.56M	75.34M	123.81M
	EBITDA
-94.29M	239.22M	47.32M	212.51M	134.36M
	Net Income Common Stockholders
-341.86M	-117.35M	-350.41M	-72.10M	51.51M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
87.80M	230.44M	114.97M	125.20M	20.90M
	Total Assets
1.99B	3.08B	3.26B	3.22B	419.98M
	Total Debt
522.98M	542.79M	675.78M	446.27M	67.17M
	Net Debt
435.19M	368.03M	560.81M	321.07M	46.27M
	Total Liabilities
1.04B	1.45B	1.45B	1.35B	224.55M
	Stockholders Equity
952.17M	1.64B	1.82B	1.87B	187.48M
Cash Flow		Free Cash Flow
13.15M	99.04M	-32.32M	54.55M	10.79M
	Operating Cash Flow
112.19M	148.07M	122.83M	242.15M	100.88M
	Investing Cash Flow
-133.25M	-63.98M	-270.59M	-582.27M	-119.07M
	Financing Cash Flow
-65.93M	27.60M	129.20M	443.82M	33.89M

Verano Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.32
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Neutral
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:VRNO, the sentiment is Negative. The current price of 6.32 is above the 20-day moving average (MA) of 6.32, above the 50-day MA of 6.32, and below the 200-day MA of 6.32, indicating a neutral trend. The MACD of <0.01 indicates Neutral momentum. The RSI at 100.00 is Negative, neither overbought nor oversold. The STOCH value of 81.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:VRNO.

Verano Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	53 Neutral	$5.14B	3.03	-43.89%	2.83%	16.75%	-0.06%
VRNO	52 Neutral	C$2.17B	―	-31.94%	―	-4.13%	-218.59%
ACB		$301.26M	34.90	4.78%	―	―	―
CURLF		$656.05M	―	-25.08%	―	―	―
GTBIF		$1.28B	25.70	2.83%	―	―	―
TCNNF		$801.23M	―	-12.39%	―	―	―
CRLBF		$296.05M	―	-15.18%	―	―	―

Verano Holdings Corporate Events

Verano Holdings Expands Connecticut Presence with Zen Leaf Enfield Opening

Verano Holdings announced the grand opening of Zen Leaf Enfield, its seventh dispensary in Connecticut, which coincides with the $250 million redevelopment of Enfield Square Mall into Enfield Marketplace. The company is actively engaging with the local community by supporting charitable causes and providing career opportunities, positioning itself as a key player in the region’s economic growth and the legal marijuana industry.

The most recent analyst rating on (TSE:VRNO) stock is a Buy with a C$4.00 price target. To see the full list of analyst forecasts on Verano Holdings stock, see the TSE:VRNO Stock Forecast page.

Verano Holdings Reports Q1 2025 Financial Results Amidst Revenue Decline

Verano Holdings reported its financial results for the first quarter of 2025, showing a decrease in revenue to $210 million, down 5% year-over-year. The decline was attributed to increased promotional activity and price compression, although partially offset by strong sales in Ohio and contributions from recent acquisitions. Despite a net loss of $12 million, Verano expanded its retail operations, opening new dispensaries in Florida and other states, and implemented automation technologies to improve efficiency and reduce costs.

Verano Expands Florida Presence with New MÜV Dispensary

Verano Holdings Corp. has expanded its retail presence in Florida with the opening of the MÜV New Smyrna Beach dispensary, marking its 81st location in the state and 155th nationwide. This new opening, strategically located near local amenities, aims to enhance customer experience and capitalize on the 420 ‘high holiday’ with significant promotions. The expansion underscores Verano’s commitment to growing its footprint in Florida, with plans for further product launches and dispensary openings throughout 2025, thereby strengthening its market position and offering a comprehensive cannabis shopping experience.

Verano Holdings to Announce Q1 2025 Financial Results

Verano Holdings announced it will release its first quarter 2025 financial results on May 8, 2025, before the market opens. The company will host a conference call and webcast to discuss these results, providing an opportunity for analysts and investors to engage with the company’s leadership. This announcement is significant as it provides stakeholders with insights into the company’s financial health and operational performance, potentially influencing market perceptions and investment decisions.

Verano Holdings Expands in Connecticut with New Zen Leaf Ashford Dispensary

Verano Holdings has expanded its presence in Connecticut with the opening of Zen Leaf Ashford, its sixth retail location in the state and the closest cannabis dispensary to the University of Connecticut. This new outlet offers a unique 20% discount for UConn students and celebrates university sports victories with special deals. The opening is part of Verano’s broader strategy to enhance its market position and community engagement, including support for local organizations. The Ashford location complements existing Connecticut dispensaries and is supported by Verano’s cultivation facility in Rocky Hill, which produces a variety of cannabis products.

Verano Expands Savvy and Essence Cannabis Product Lines

Verano Holdings has announced the expansion of its Savvy and Essence product lines, introducing new cannabis products such as Extra Savvy 2-gram vape cartridges and Savvy Strut 2-gram all-in-one vapes. These products target the rapidly growing vape and pre-roll categories, leveraging advanced manufacturing technology to enhance production efficiency and meet consumer demand. The launch positions Verano to strengthen its market presence in key states, with products available in Illinois, New Jersey, Maryland, and Arizona, and plans to expand to additional states.

Verano Holdings Reports 2024 Financial Results Amid Strategic Expansion

Verano Holdings Corp. reported its financial results for the fourth quarter and full year of 2024, highlighting a decrease in revenue and a significant net loss compared to the previous year. Despite these challenges, the company made strategic moves by entering the Virginia market, expanding in Arizona, and launching new dispensaries and products, which are expected to support long-term growth.