Conservative "Cannabis" Stocks Rallied 6%, On Average, Last Week -

Conservative “Cannabis” Stocks Rallied 6%, On Average, Last Week

Nov 06, 2023Jeremy ParkinsonFinance0

The 6 tobacco, beer and distiller/vintner companies with major investments in the cannabis sector, constituents in the munKNEE Conservative “Cannabis” Stocks Index, are ranked below in descending order as to their performances last week and YTD along with their latest news. Conservative “Cannabis” Stocks Index

Anheuser-Busch InBev (BUD): UP 11.5% last week; DOWN 2.7% YTD

has a $100 million joint venture with Tilray (TLRY)
has a dividend yield of 1.4%
has a forward Price-to-Earnings (PE) ratio of 19.3 (High – sector median is 18.5)
has a forward Price-to-Sales Ratio (PSR) of 1.9 (High – sector median is 1.1)
has a Price-to-Earnings-Growth (PEG) ratio of 1.8 (sector median is 2.3)
has a Enterprise Value-to-Earnings Before Interest Taxes, Depreciation and Amortization (EV/EBITDA) ratio of 10.0 (sector median is 11.0)
Read:
- Bud Light parent AB InBev posts mixed Q3 results, announces a $1 billion buyback program
- Bud Light boycott weighing on AB InBev but beer giant sees signs of optimism

British American Tobacco (BTI): UP 7.3% last week; DOWN 16.9% YTD

has a C$346M product development partnership with Organigram Holdings (OGI)
has a dividend yield of 9.1%
has a forward price-to-earnings (PE) ratio of 6.9
has a forward price-to-sales ratio (PSR) of 2.1 (High)
has a price-to-earnings-growth (PEG) ratio of 0.1
has a Enterprise Value-to-Earnings Before Interest Taxes, Depreciation and Amortization (EV/EBITDA) ratio of 7.1
Read:
- BTI invests another C$124.6M in OGI
- British American Tobacco Stock: Buy, Sell, or Hold?

Imperial Brands (IMBBY): UP 5.8% last week; UP 2.6% YTD

has a 19.9% stake in Auxly Cannabis Group (CBWTF)
has a dividend yield of 7.7%
has a forward price-to-earnings (PE) ratio of 8.0
has a forward price-to-sales ratio (PSR) of 1.7 (High)
has a price-to-earnings-growth (PEG) ratio of 5.9 (High)
has a Enterprise Value-to-Earnings Before Interest Taxes, Depreciation and Amortization (EV/EBITDA) ratio of 6.4
Read: Imperial Brands sticks by forecast, to buy back $1.3 billion in shares

Constellation Brands (STZ): UP 5.3% last week; DOWN 3.7% YTD

has a 39% stake in Canopy Growth (CGC)
has a dividend yield of 1.5%
has a forward price-to-earnings (PE) ratio of 20.2 (High)
has a forward price-to-sales ratio (PSR) of 4.4 (High)
has a price-to-earnings-growth (PEG) ratio of 2.2 (High)
has a Enterprise Value-to-Earnings Before Interest Taxes, Depreciation and Amortization (EV/EBITDA) ratio of 15.2 (High)
Read: Constellation Brands: Good News in the Bad News for Investors

Molson Coors Beverage (TAP): UP 4.0% last week; UP 27.4% YTD

has announced that it is selling its 57.5% share of Truss, its JV with Tilray, to Tilray, and when completed Molson Coors will be removed from the Conservative “Cannabis” Stocks Index
has a dividend yield of 2.8%
has a forward price-to-earnings (PE) ratio of 11.5
has a forward price-to-sales ratio (PSR) of 1.1
has a price-to-earnings-growth (PEG) ratio of 0.9
has a Enterprise Value-to-Earnings Before Interest Taxes, Depreciation and Amortization (EV/EBITDA) ratio of 8.0
Read:
- Molson Coors lifts annual core profit forecast on price hikes, steady demand
- Molson Coors (TAP) Q3 Earnings & Sales Beat on Brand Strength

Altria Group (MO): UP 3.5% last week; DOWN 14.2% YTD

has a 45% stake in Cronos Group (CRON)
has a dividend yield of 9.6%
has a forward price-to-earnings (P/E) ratio of 8.2
has a forward price-to-sales ratio (PSR) of 3.5 (High)
has a price-to-earnings-growth (PEG) ratio of 2.3
has a Enterprise Value-to-Earnings Before Interest Taxes, Depreciation and Amortization (EV/EBITDA) ratio of 8.0
Read:
- Is There An Opportunity With Altria’s 49% Undervaluation?
- Here’s Why We Think Altria Group (NYSE:MO) Might Deserve Your Attention Today

SummaryThe munKNEE Conservative “Cannabis” Stocks Index was UP 5.9% last week and is now only DOWN 2.3.% YTD. In addition, the stocks in the Index now have an average dividend yield of 3.2%. Definitions

The price-to-earnings (P/E) ratio is the ratio for valuing a company that measures its current share price relative to its earnings per share. An excellent forward P/E ratio is between 10-25 for major stocks since stocks with a forward P/E below 10 can often be a value trap. On the other hand, those above 25 can be too expensive as they are priced with irrationally high growth anticipations. The mean P/E Ratio for Consumer Staples/Tobacco and Distillers and Vintners companies is 18.5.

The price-to-sales ratio (PSR) describes how much someone must pay to buy one share of a company relative to how much that share generates in revenue for the company. and, as such, determines whether its stock is cheap or overpriced in comparison to its peers. While the ideal ratio depends on the company and industry, the ratio is typically good when the value falls between one (1) and two (2) and a ratio of less than one (1`) is even better. The mean forward PSR for Consumer Staples/Tobacco companies is 1.1.

The price earnings-to-growth ratio (PEG ratio) is considered to be an indicator of a stock’s true value. A PEG lower than 1.0 is best, suggesting that a company is relatively undervalued. The mean forward PEG Ratio for Consumer Staples/Tobacco and Distillers and Vintners companies is 2.3.

The Enterprise Value-to-Earnings Before Interest, Taxes, Depreciation, and Amortization ratio (EV/EBITDA) is one of the best metrics used by value investors to evaluate a company because it accounts for the value of all financing the company has received from both equity stakes and debt allowing investors to compare profitability between companies. A high means the company is overvalued, while a low ratio indicates it’s undervalued. The mean forward EV/EBITDA ratio for Consumer Staples/Tobacco and Distillers and Vintners companies is 11.0.

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