Often investors have more than one reason to buy a stock. In addition to sales growth and profitability, there are also environmental, social management (ECG) factors that can play a role in determining whether a stock is a good choice for a particular investor.
If you want to invest in a cannabis company that evaluates ECG, there are many options for you. Scotts Miracle-Gro: (NYSE: SMG), Green Thumb Industries: (OTC: GTBIF), և: Hexo: (NYSE: HEXO) All of them are marijuana-related companies working on community and environmental initiatives that may be ideal for ECG investors.
1. Scotts Miracle-Gro:
Scotts Miracle-Gro, a horticultural and hydroponics company, is playing a key role in expanding the cannabis industry as it provides producers with the tools they need to grow efficiently. Hydroponics producers do not even need land. They use pipes and pumps to save space, as well as to minimize the use of water and soil. It is a potentially more environmentally friendly way to grow crops. In addition, the company maintains a focus on social justice reform. It is involved in a number of projects, including the Last Prisoner project, which aims to “liberate and rebuild the lives of those affected by cannabis criminalization.”
Scott prioritizes ECG while providing strong funding. For the nine months to July 3, the company’s sales of $ 4.2 billion increased by 29% compared to the same period a year earlier, and its net income amounted to $ 561.3 million, up 46%. His hydroponics business, which focuses on hydroponics, has done particularly well, with $ 1.1 billion in sales boosting much of the company’s growth. The top line of the segment has risen by 60% in the last three quarters. The US consumer sector, which is a major part of its operations, grew by 19%.
These solid funds will put Scott in a good position to continue focusing on ECG issues while providing investors with large returns in the long run.
2. Green Thumb Industries:
Marijuana-producing Green Thumb Industries is also involved in the Last Prisoners project and other social issues. Green Thumb has the Good Green Initiative, which helps vulnerable communities և invest in education և changes in employment, as well as marijuana-related criminal records. It also proposes the License Education Support Program (LEAP), which helps “reduce barriers to cannabis business ownership for those who have been disproportionately banned from cannabis.”
The company will help fund up to three licensees in Illinois with a six-month mentoring to grow their cannabis business. It started accepting applications for the LEAP program in August կհ will announce the participants next month.
Both Scott and Green Thumb are involved in sports with strong finances. Sales of $ 556.6 million last year doubled from $ 216.4 million last year. The company even showed a rare case for a cannabis grower after-tax profit. It recorded earnings of $ 0.07 per share (a loss of $ 0.31 per share last year).
Green Thumb operates in 14 markets; on August 9, it opened its 62nd store in the country. It was the 16th store in Pennsylvania under the Rise brand. The company says it will donate its first day’s profits from Rise Warminster’s new location, the National Donation Alliance, which appears to be helping low-income individuals.
Overall, Green Thumb is an ethically strong business that is clearly valued by the ECG. And with some impressive sales figures, investors also do not have to sacrifice growth opportunities for ethics.
Hexo is the only company on this list that has been a bit overwhelming in terms of financial performance. For the quarter ending April 30, its revenue of C $ 22.7 million was up just 2% from a year earlier, with sales down more than 31% from the previous quarter. The hemp producer also suffered losses in each of the past four seasons.
However, investors may be willing to be patient with the business, as Hexo promises to be the number one Canadian cannabis drinker. The company has a joint venture with Truss, a beer producer Molson Coors:. Hexo is also undergoing a number of changes, acquiring many Canadian cannabis companies earlier this year, including Zenabis and Redecan և 48North, as it aims to be one of the top three cannabis companies in the country.
It also changes its business in another way. In June, the company announced that by September it would be 100% carbon neutral. Hexo reduces the footprint of its environment by including the use of more recyclable packaging materials, minimizing waste անց switching to virtual labor. Hexo not only compensates for the emissions of its activities, but also the personal emissions of its 1,200 employees.
Hexo is the most risky investment out of the three listed here, given its difficult financial situation, but if you are an ECG investor, it can benefit from securities. The company is different from its peers in terms of environment, և it can attract more investors in the long run, և lead to some big profits.
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