NewLake Capital Partners (PNK:NLCP) is a key player in providing real estate capital to state-licensed cannabis operators. The company is set to release its quarterly earnings on March 6, 2025, with Wall Street analysts estimating an earnings per share of $0.32 and projected revenue of $12.45 million. This release will provide insights into the company's financial health and future prospects.
In the fourth quarter of 2024, NewLake reported a revenue of $12.5 million, slightly surpassing the projected $12.45 million for the upcoming quarter. This contributed to a total annual revenue of $50.1 million, a 6% increase from the previous year. The company's net income for the fourth quarter was $6 million, with funds from operations at $9.9 million and adjusted funds from operations at $10.9 million.
For the full year of 2024, NewLake's net income attributable to common stockholders was $26.1 million. The funds from operations reached $41.3 million, while adjusted funds from operations totaled $43.7 million. These figures highlight the company's strong financial performance and its ability to generate cash flow, which is crucial for sustaining operations and growth.
NewLake's financial ratios provide further insights into its market valuation and financial stability. The company has a price-to-earnings (P/E) ratio of approximately 12.66, indicating the price investors are willing to pay for each dollar of earnings. The price-to-sales ratio is about 6.87, and the enterprise value to sales ratio is around 6.63, reflecting the market's valuation of the company's sales and overall worth.
The company's financial health is further supported by a low debt-to-equity ratio of 0.019, suggesting minimal reliance on debt. However, the current ratio of approximately 0.90 indicates that NewLake may face challenges in covering short-term liabilities with its short-term assets. Despite this, the earnings yield of about 7.90% shows a strong return on investment for shareholders.
