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Is Green Thumb Industries stock a good investment? To answer that we’ll have to comb through what Green Thumb Industries (GTI) has to offer. GTI is a versatile and diverse operation. It's attacking on many fronts including production, retail, and consumer packaged goods. Needless to say, GTI is an enticing stock for pot stock buyers.
U.S. Market Opportunity
The U.S. pot market is gaining steam on tobacco and beer sales. At this rate, huge growth is expected over the next decade for the pot sector. In recent years, the U.S. has experienced a major shift in momentum towards an end to weed prohibition. With the Farm Bill passing in 2018 and the Safe Act passing the House in September 2019, lawmakers have never looked more eager to legalize weed.
Green Thumb Overview
Green Thumb’s mission is to “promote wellness through the power of cannabis.” GTI was founded in 2014 in Chicago, Illinois. Since then, GTI has added 1,900 team members across the country. That's impressive job growth for any brand. As a result of its weed expertise, it operates a number of pot brands to fit different lifestyles and preferences.
Green Thumb operates six consumer product brands that are distributed to 12 states. GTI has 48 active stores as of July 31st, 2020. It has 96 retail licenses in total. This backlog of licenses is set to expand its national operations.
One of the keys to GTI’s success is its vertically-integrated supply chain. Controlling the entire supply chain serves to maintain a consistent product line across all markets. GTI has 13 cultivation and manufacturing facilities to serve its production needs. Across its 12 markets (adult and medical), it distributes products to over 150 million Americans.
From 2014 to 2017, GTI set its footprint in limited supply markets. From 2018 to 2019, it amped up its production capacity and shop openings. In 2020, it's focused on scaling the business. It hopes to continue its expansion on many fronts. It plans on automating its infrastructure and improving its community partnerships.
In 2019, the brand earned $216 million in sales. 2020 presents unique hurdles and developments. These include the COVID-19 pandemic and the November election. GTI continues to be profitable due to its branded products. For instance, a partnership with Cookies is set to open the first Cookies store on the Las Vegas Strip. Its business decisions show it values authentic consumer experiences.
Consumer Products Portfolio
Green Thumb’s line of brands has each stood out on its own. GTI provides a diverse set of branded products. These include whole flower, vapes, edibles, pre-rolls, concentrates, and skincare topicals. Its diverse portfolio promotes well-being. Check out its family of brands.
Rhythm caters to users' enduring love for whole-flower buds. Rhythm features award-winning flower, live concentrates, and full-spectrum vapes. They come in four effects-driven categories: Energize, Relax, Balance, and Heal.
Beboe’s slick branding and luxury appeal make it a clear winner for weed consumers. Beboe creates a range of pot products including rose gold pens and pastilles. It offers “socially-dosed” products. These products are meant to keep you functionally high and relaxed.
Beboe Therapies taps into the skincare and beauty market. Its product line combines active botanicals with full-spectrum CBD. Its products include a face serum, body balm, face cream, and face mask.
Colorado edible lovers know the incredibles brand all too well. This weed confectionery creates an array of flavor-packed chocolate bars, gummies, and tarts. Find its products in Massachusetts, Illinois, Nevada, and Puerto Rico.
Dr. Solomon’s blends science and nature to create high-quality medical pot products. Explore its line of transdermal salves, lotions, capsules, and Rick Simpson Oil.
Enjoy Dogwalkers’ award-winning full flower pre-rolls, mini multi-packs, and Big Dogs. Choose from three distinct product categories: Sit (indica), Stay (hybrid), and Play (sativa). Best of all, the brand donates a part of its sales to dog causes.
The Feel Collection
The Feel Collection crafts botanically-infused tinctures for those who want that extra oomph throughout the day. Choose from six different tincture categories: Blissed, Comfort, Relaxed, Energized, Dreamy, and Healed.
Green Thumb has a strong national market composed of 48 active stores. It has a steady supply of licenses to more than double its opened store count. People can shop digitally for pickup or delivery. GTI taps into its analytics to give people what they want at value and premium price points.
GTI operates five different retail brands, with Rise as its main retail brand. Rise consists of 36 stores. Rise’s first store in Mundelein, Illinois has become its highest volume store.
Its Essence brand has 5 stores: four in Las Vegas and one in Henderson, Nevada. Its two 3C Compassionate Care Center shops can be found in Illinois. Find two of its Bluepoint Wellness stores in Connecticut. Check out its four Fp Wellness stores in New York.
Green Thumb's brand has provided communities with a wealth of sales and jobs. It's employed over 1,900 people across the nation. Needless to say, GTI brings new life to many communities. It's this drive that earned it 2019’s mg Magazine Leading Industry Employer.
GTI is committed to social equity in the industry. It promotes its pro-bono License Education Assistance Program (LEAP) to help those in need. LEAP helps hundreds of social equity applicants with business licensing and incubation.
Green Thumb's strong second-quarter earnings indicate sustainable growth over time. As of June 30, 2020, GTI earned $119,640,000 in sales during its 2020 second quarter. In 2019, it earned $44,727,000 during its second quarter. The numbers indicate that GTI is on a steady rise to success.
Should You Buy Green Thumb Industries Stock?
If we’re going based on second-quarter 2020 numbers, GTI has seen incredible growth. Financial experts see this stock as a clear buy. Experts have improved their one-year price targets despite global hurdles. As of August 25, 2020, Green Thumb Inc (GTBIF) had a closing price of $14.45. It’s down 1.03 percent from its previous closing price of $14.60.
Green Thumb's has a structure that consistently brings in operating cash flow. It's currently running numerous stores. It also has a presence in many markets. This has helped it become profitable faster than much of its competition. Plus, it has a diverse product portfolio that can adapt to any obstacles in the changing market.