Friday, April 01, 2022
Schwazze (SHWZ)
Poised for a Breakout 2022
Medicine Man Technologies, Inc. is now operating under its new trade name, Schwazze. Schwazze is executing its strategy to become a leading vertically integrated cannabis holding company with a portfolio consisting of top-tier licensed brands spanning cultivation, extraction, infused-product manufacturing, dispensary operations, consulting, and a nutrient line. Schwazze leadership includes Colorado cannabis leaders with proven expertise in product and business development as well as top-tier executives from Fortune 500 companies. As a leading platform for vertical integration, Schwazze is strengthening the operational efficiency of the cannabis industry in Colorado and beyond, promoting sustainable growth and increased access to capital, while delivering best-quality service and products to the end consumer. The corporate entity continues to be named Medicine Man Technologies, Inc.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
4Q21 Results. Revenue for the quarter totaled $26.5 million, up from $7.9 million a year ago, but down from $31.8 million in the third quarter. The sequential drop was due to overall softness in cannabis in Colorado during the quarter, both on the retail and wholesale level. Adjusted EBITDA was $7.5 million in the quarter. Schwazze reported $5.5 million of net income, or $0.13 per share.
Strong Metrics. Two year stacked IDs for the quarter were 40.4% and one year IDs were 4.9%. Average basket size for 4Q21 was $59.70, up 12.1% y-o-y. Customer visits in the quarter totaled 329,357, down 7.2% y-o-y. Once again, Schwazze outperformed the overall Colorado market making it four quarters in a row, a testament to management’s focus on the operating strategy, in our view …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
