Operating Margin

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Price: 5.01 CAD -10.22% Market Closed

Market Cap: CA$1.8B

9.8%

Improving

by 2.1%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

9.8%

Operating Income

$124.1m

Revenue

$914.7m

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

9.8%

Operating Income

CA$124.1m

Revenue

$914.7m

Peer Comparison

Country		Company	Market Cap	Operating Margin
US	V	Verano Holdings Corp CNSX:VRNO	1.7B CAD	Loading...
US		Eli Lilly and Co NYSE:LLY	1T USD	Loading...
UK		Dechra Pharmaceuticals PLC LSE:DPH	440.4B GBP	Loading...
US		Johnson & Johnson NYSE:JNJ	528.7B USD	Loading...
CH		Roche Holding AG SIX:ROG	275.3B CHF	Loading...
UK		AstraZeneca PLC LSE:AZN	210.3B GBP	Loading...
DK		Novo Nordisk A/S CSE:NOVO B	1.8T DKK	Loading...
CH		Novartis AG SIX:NOVN	221.9B CHF	Loading...
US		Merck & Co Inc NYSE:MRK	267.9B USD	Loading...
IE	E	Endo International PLC LSE:0Y5F	218B USD	Loading...
US		Pfizer Inc NYSE:PFE	145.6B USD	Loading...

Market Distribution

Min	-4 087 900%
30th Percentile	-5.1%
Median	6%
70th Percentile	14.8%
Max	1 032 600%

Other Profitability Ratios

Verano Holdings Corp
Glance View

Market Cap

1.8B CAD

Industry

Pharmaceuticals

In the burgeoning landscape of the cannabis industry, Verano Holdings Corp. emerges as a key player, crafting a narrative of growth and innovation. Founded with an ambition to bring premium cannabis products to the forefront of the market, Verano operates across a diverse array of segments, tapping into both the medicinal and recreational sectors. The company stands out due to its vertically integrated model, which means it controls the entire supply chain, from cultivation and production to distribution and retail. This model not only ensures quality and consistency but also allows Verano to capture value at every step of the process. Through meticulous cultivation practices and state-of-the-art facilities, Verano develops a wide range of products, including flower, edibles, and concentrates, which are distributed under its house of premium brands in various markets across North America. Verano's financial engine is powered by its extensive network of retail outlets—known as Zen Leaf and MÜV dispensaries—and its aggressive expansion strategy into emerging markets. This retail footprint is crucial, providing direct access to consumers and fostering a loyal customer base. Verano continuously enhances its product offerings by focusing on innovation and responding adeptly to consumer trends, thereby driving sales and margin growth. Its adept navigation of complex regulatory environments reflects a keen understanding of market dynamics, allowing it to take advantage of growth opportunities in a sector that remains highly regulated. By marrying operational efficiency with a deep commitment to delivering high-quality, consistent cannabis products, Verano not only sustains profitability but also positions itself strategically for future growth in an evolving industry landscape.

View VRNO Analysis

VRNO Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Verano Holdings Corp
CNSX:VRNO

Peer Comparison

Market Distribution

Other Profitability Ratios

Verano Holdings Corp
Glance View

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Verano Holdings Corp CNSX:VRNO