TDR Research: Transforming Cannabis Sector Insights

  1. In-depth Financial Analysis: TDR Research conducts a comprehensive 17-step analysis of key financial aspects, including income statements, cash flow, and balance sheets. This methodical review targets critical financial metrics and examines the company’s overall financial health.
  2. Comparative and Valuation Assessment: We compared the results of our analysis with those of 42 other cannabis companies.
  3. Practical and Insightful Approach: TDR Research aims to provide detailed, actionable insights, moving beyond the standard industry focus on revenue and balance sheets. This approach targets a diverse audience, offering a deep understanding of the cannabis industry.

You have noticed in our daily Half-Baked Newsletter that we launched TDR Research this week, featuring comprehensive 48-page research reports on Aurora Cannabis and MariMed. This institutional-quality research is currently available exclusively to subscribers of the TDR Half Baked Newsletter. If you are not yet subscribed, you can do so at this link.

I wanted to share more about our process and what sets our research apart. Below are a few notes I’ve written for our readers:

The core of TDR Research’s methodology lies in a detailed, 17-step analysis of key performance indicators (KPIs) for each company under review. This rigorous process involves a thorough examination of income statements, dissecting elements such as revenue, gross profit, operating income, and earnings per share. Similarly, the cash flow statements are scrutinized, with particular attention to free cash flow, inventory levels, payables, and sales outstanding. The balance sheet is also probed for signs of financial health or weakness, and the transparency of accounting practices is evaluated, alongside an assessment of dilution risk.

Beyond the financials, TDR Research employs the Rule of 40 as a metric to gauge company performance. This is complemented by a KPI ranking system that positions the company in the context of its market. This involves comparing the financial metrics of the company against 42 other entities in the cannabis manufacturing sector, aiming to assess its competitive edge.

A key aspect of their analysis is the fair value assessment of a company’s stock price. This is achieved through a proprietary discounted cash flow analysis, which also integrates Wall Street targets. Moreover, insider buying trends are monitored, as these can signal executive confidence in the company’s prospects.

TDR Research also conducts a wind-up analysis, evaluating the company’s asset value in relation to its balance sheet, and provides revenue and earnings forecasts, culminating in a full-year financial projection for 2024, focusing on EBIDTA and revenue.

The approach of TDR Research is distinct in its comprehensive nature, contrasting with common industry practices that often focus solely on revenue growth and balance sheet evaluations. Their goal is to offer research that meets the standards of asset management, characterized by insightfulness, depth, and practicality. This approach aims to provide valuable insights not only to CEOs and industry executives but to any reader seeking a deeper understanding of a company or the cannabis industry. I would love to hear your feedback about our research, please reach out to share your thoughts.

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