Are Investors Missing The Forest? 35% Stock Drop Masks The International Potential Of This Weed Company

Core Insights - InterCure Ltd. has demonstrated resilience in H1 2024, reporting revenues of 126 million NIS ($33.97 million), exceeding the estimated 121 million NIS [1] - The company is still below pre-October 2023 revenue levels of 414 million NIS due to disruptions at its southern Israeli facility occupied by the IDF [2] - InterCure's EBITDA for H1 2024 was reported at 17.6 million NIS, significantly higher than the 5 million NIS estimate, aided by government compensation for damages [4] Financial Performance - Cash reserves have decreased from 111 million NIS in December 2023 to 21 million NIS by the end of June 2024 [5] - Net debt increased from 60 million NIS to 112 million NIS during the same period, although the company has access to an unused credit line of over 22 million NIS [5] Future Outlook - InterCure is guiding for double-digit sales growth in H2 2024, with expected revenues around 140 million NIS, revised down from previous estimates of 180 million NIS [6] - The company plans to launch over 30 new GMP SKUs in collaboration with brands such as Cookies, Binske, and Organigram OGI, with Cookies products expected to be introduced in Germany by Q4 2024 [6] Stock Performance and Valuation - The stock price has declined from a peak of $3.12 in May 2024 to $1.97, yet the valuation remains attractive, trading at 1x sales and 8x EBITDA for CY25 [7] - InterCure's enterprise value is estimated at $132 million, comprising $96 million in market capitalization and $36 million in net debt [7]