H C🅰️p
Equity Investor, Finance Writer
Cronos looks worth more than a below-liquidation valuation. A quoted post from a GrowCo site visit describes a large, professionally run operation and calls the JV partnership with the Mucci family, agriculture masters running it like a pharmaceutical lab, the most overlooked part of the thesis. x.com
Cronos Group is one of the more compelling five-year setups, with four growth engines running while cash limits the downside. About 71% of its ~$1.16bn market cap is cash and investments, with no traditional debt. Adj. EBITDA margin rose from ~7% in 2025 to ~25% in Q2'26, and organic growth, margin expansion, acquisitions and buybacks drive a 2031 base case of ~$190m EBITDA. At 10-12x plus net cash, that is ~$8.50-$10 a share, 170-215% upside, without needing US legalization. x.com
Cronos Group is one of the easiest longs in the market as higher-margin Israel and Germany sales lift gross profit without excise taxes. Q2 revenue rose 58% to $53M and adjusted EBITDA to $13.1M from $1.7M; gross profit nearly doubled. Spinach is Canada's #2 cannabis brand and #1 in edibles and vapes. CanAdelaar adds a leading Dutch adult-use pilot position at ~1.4x annualized revenue. Q2's $827M in cash, investments and deposits against $62M in liabilities and buybacks support per-share upside. … Show more
Cronos is one of the best value stocks because cash covers most of its market cap while operations improve. Its $827 million of cash is 65% of a $1.27 billion market cap, the industry's best balance sheet, with net tangible assets of $1.05 billion. Q2 revenue rose 51% in constant currency, gross margin reached 53% from 43%, and it earned $0.09 a share with $0.06 of free cash flow per share. GrowCo is fully online with more efficiency gains expected, and buybacks continue. x.com
