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Scaling and luckily printing cash

  We are expecting consistent revenue growth that will later stabilize at 5% after a period of sustained expansion (2023 - 2026). Margins will also follow expansion as economies of scale kick-in and will stabilize at 18% for the long term. This model also forecasts Capex requirements at around 2-3% of revenues, which is in line with what happened in the past.  We believe that the company will not stop pursuing stra These are the results of our analysis. Assuming a perpetual growth rate of 1%, the sum of the present and terminal values is around $400 million of total value. After subtracting roughly $60 million of debt we derive an equity value of $344 million, or $4.9 per share. This represents an upside of 25% from the current price. Glass House is at an exciting inflection point, with production now ramping up and the distribution channel completely expanded and operative. The company has demonstrated a strong ability to execute and deliver, and has strong competitive advant...
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Cost of Production per LB (GLASF Latest Presentation)

  Cost of Production per LB (GLASF Latest Presentation) This proves the ability of management to execute what they commit to and do it within the timeline. And more developments took place in what seems to be an accelerating 2023: (1) the company announced its first FCF-positive quarter ending in March 2023, and (2) an expansion of their production of 250,000 more pounds of high-quality cannabis per year. Guidance for 2023 now is revenue growth of more than 75% to $160 million. This means that a company growing more than 70% YoY is trading at a P/S multiple of less than 2. Last but not least, the company recently reported earnings. They were positive, with revenue coming in at $44 million, a $5 million beat. Also, Q3 guidance was raised up to $47 million against the $43 million consensus. Full-year revenue was also guided up to $170 million, versus $160 million before. Again, more proof that management is very good at execution and that the past years' investments in infrastructure...
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