What they do
Village Farms grows cannabis in British Columbia greenhouses and sells it in Canada, the Netherlands and, more and more, as medical cannabis exported to Germany. It also grows tomatoes.
Why we picked it
- 01$20.9M
Exports are the story. International export sales hit a record $20.9M in Q2 2026, up 74% from $12.0M a year earlier, driven by Germany. They are now 33% of revenue, up from 20%.
- 0247%
Margins followed. Gross margin was 47% in Q2 against 37% a year earlier. The cannabis business alone went to 51% from 42%, on better yields and more bulk flower sold abroad.
- 03$72.9M
The balance sheet is clean. $72.9M of cash against $40.0M of debt at 30 June, so $33.0M of net cash. Insiders own 13.2% of the shares, the CEO 8.8%.
- 04$320.4M
The price. A $320.4M market cap against $312.2M of shareholders' equity, 1.03x book. The Delta 2 greenhouse expansion is expected to add about 15 tonnes of flower in the second half of 2026.
The risk
The catch: export prices per gram fell 16% as the mix moved to bulk flower, SG&A rose 22% in Q2, and in June the company sold 7.5M new shares at $2.00 after buying back 2.2M at about $3.07 earlier in the year.
Sources: 10-Q Q2 2026 (10 Aug 2026), 10-K FY2025, proxy 28 Apr 2026, close 12 Oct 2026.
Market value: shares outstanding on the latest SEC filing cover page, times the latest price.