The most profitable cannabis company in Canada trades at 3x earnings.

No one is talking about it. Let me explain why that should change. Auxly Cannabis Group (TSX: XLY) just posted Q3 2025 numbers that would make most CPG companies jealous: 56% gross margins 31% EBITDA margins 20% YoY revenue growth 7th consecutive quarter of positive Adj. EBITDA \#1 cannabis brand in Canada (Back Forty) \#3 licensed producer nationally with 6.2% market share The stock is $0.12. The market cap is C$162M. Now here's where it gets absurd. Canopy Growth trades at 7.5x EV/Revenue. It has 15% gross margins. It loses money. Every quarter. Cronos Group trades at 7.3x EV/Revenue. It holds C$855M in cash and has less than 2% market share. Also loses money. Auxly trades at 1.2x EV/Revenue. With 56% gross margins. And actual earnings. The company that loses money gets a 7x multiple. The company making money gets a 1x multiple. How did we get here? Three structural problems, none of which are fundamental: 1. The stock is $0.12. Most fund mandates require >$1 or >$5. Funds can't buy it. 2. No US listing. Not in MSOS. Not in any cannabis ETF. Invisible to 90% of the capital markets. 3. No earnings calls. The company suspended quarterly calls. The best LP in Canada went silent. The balance sheet tells you everything about the trajectory: → Total debt reduced 56% in 2024 → Imperial Brands converted C$123.4M of debt to equity → Remaining debenture fully settled July 2025 → Going concern disclosure removed → Debt/EBITDA: 0.6x net of cash This is not a turnaround story. The turnaround already happened. This is a re-rating story that hasn't started yet. I built a full DCF model on public data. WACC 14%. Terminal growth 3%. Conservative revenue growth declining from 15% to 8% over 5 years. Implied equity value: C$0.29/share. That's 140% upside from here, on conservative assumptions. At 8x LTM EBITDA (still a discount to Tilray at 5.6x on worse margins), the stock is worth C$0.24. The only analyst covering it, Haywood Securities, has a Buy rating and a C$0.25 target. So why am I posting this? Because the Canadian cannabis sector has a visibility problem, not a fundamentals problem. The companies that executed were punished alongside those that didn't. The result is a company growing 20%+ with 31% EBITDA margins trading at a multiple you'd see on a distressed retailer. If this were a food company with the #1 brand in its category, 56% gross margins, and 20% growth, it would trade at 15-20x EBITDA. It trades at 4.2x. I'm not telling anyone what to do with their capital. I'm saying the data is public, the math is simple, and the disconnect is real. What's your take? Comment model, and I will send you the full analysis. [Auxly](https://www.linkedin.com/company/auxlygroup/) [Hugo Alves](https://www.linkedin.com/in/hugo-alves-5029aa10/) [hashtag#cannabis](https://www.linkedin.com/search/results/all/?keywords=%23cannabis&origin=HASH_TAG_FROM_FEED) [hashtag#investing](https://www.linkedin.com/search/results/all/?keywords=%23investing&origin=HASH_TAG_FROM_FEED) [hashtag#valueinvesting](https://www.linkedin.com/search/results/all/?keywords=%23valueinvesting&origin=HASH_TAG_FROM_FEED) [hashtag#tsx](https://www.linkedin.com/search/results/all/?keywords=%23tsx&origin=HASH_TAG_FROM_FEED) [hashtag#smallcap](https://www.linkedin.com/search/results/all/?keywords=%23smallcap&origin=HASH_TAG_FROM_FEED) [hashtag#auxly](https://www.linkedin.com/search/results/all/?keywords=%23auxly&origin=HASH_TAG_FROM_FEED) [hashtag#backforty](https://www.linkedin.com/search/results/all/?keywords=%23backforty&origin=HASH_TAG_FROM_FEED) Disclosure: Long XLY. Not investment advice. All data from public sources. DYOR, I am not acting as an agent of Auxly; these are my views.