Undervalued Opportunity in Medical Cannabis: The Case for Cantourage Group (ETR:HIGH)

The European medical cannabis sector is undergoing a transformative phase, driven by regulatory advancements, clinical validation, and surging demand for cannabis-based pharmaceuticals. Amid this backdrop, Cantourage Group (ETR:HIGH) emerges as a compelling deep-value investment opportunity. With a market capitalization of approximately €46.1 million as of early September 2025 [1], the company trades at a significant discount to its operational performance and sector peers, despite achieving a 130% year-on-year revenue surge in Q2 2025 to €27.9 million [2].

Strategic Positioning and Operational Efficiency

Cantourage’s asset-light business model is a cornerstone of its competitive advantage. By sourcing cannabis globally and processing it into pharmaceutical-grade medicines in Germany and Portugal, the company avoids the capital-intensive costs of cultivation while minimizing working capital risk [1]. This approach has enabled Cantourage to achieve break-even in 2023 and maintain an EBITDA margin of 11–13% in Q1 2025 [3], outpacing many peers in the sector. For context, Aurora Cannabis, a major North American player with a P/E ratio of 21.28, reported a 52% adjusted gross margin in Q1 2025 but still trails Cantourage’s EBITDA efficiency [4].

The company’s expansion into Portugal further strengthens its supply chain resilience, ensuring stable production as European demand for medical cannabis grows. Germany alone, Cantourage’s largest market, is projected to see a 55% annual growth rate in medical cannabis revenue through 2027 [5], driven by regulatory reforms and increasing prescriptions for chronic pain and neurological conditions.

Sector-Specific Growth and Valuation Disparity

The global cannabis pharmaceuticals market is forecasted to reach $102.4 billion by 2030, with Europe dominating 2023’s revenue share [6]. Cantourage’s focus on high-margin international markets—such as the UK, Poland, and Switzerland—positions it to capitalize on this trend. Yet, its valuation remains disconnected from fundamentals. While peers like Tilray trade at a forward P/E of 25.75 [7], Cantourage’s forward P/E ranges between 5.5 and 23.66 [1], reflecting market skepticism rather than operational weakness.

This discrepancy is further amplified by Cantourage’s revenue trajectory. The company’s first-half 2025 revenue of €54 million already exceeds its 2024 full-year total of €51.4 million [2], suggesting a path to €110 million in annual revenue by late 2025. At a conservative 10x EBITDA multiple (in line with Aurora’s 21.28x and Tilray’s 25.75x), Cantourage’s implied market capitalization would surpass €150 million—a 227% premium to its current valuation.

Risks and Mitigants

Critics may cite Cantourage’s 52-week stock price range of €3.50–€6.76 and a -39.87% compound annual growth rate since late 2022 [1] as red flags. However, these metrics reflect broader sector volatility rather than company-specific issues. Cantourage’s asset-light model, diversified sourcing, and strategic production expansion in Portugal mitigate supply chain risks, while its focus on pharmaceutical-grade products insulates it from price wars in the recreational cannabis market.

Conclusion: A Deep-Value Play on Sector Growth

Cantourage Group’s combination of operational efficiency, sector-leading EBITDA margins, and undervaluation makes it a rare deep-value opportunity in the medical cannabis space. As European markets mature and regulatory barriers dissolve, the company is well-positioned to outperform peers with a scalable, low-risk model. For investors seeking exposure to a high-growth sector at a discounted price, Cantourage represents a compelling case study in value investing.

Source:
[1] Cantourage Group SE Share Price Börse Stuttgart, [https://in.marketscreener.com/quote/stock/CANTOURAGE-GROUP-SE-150191894/]
[2] A Tale of Two Markets: German Cannabis Companies ..., [https://businessofcannabis.com/a-tale-of-two-markets-german-cannabis-companies-chase-records-as-uk-operators-seek-exits/]
[3] Ad hoc: Cantourage significantly increases profitability and revenue – EBITDA margin of 11 to 13% in the first quarter of 2025, [https://www.eqs-news.com/news/ad-hoc/ad-hoc-cantourage-significantly-increases-profitability-and-revenue-ebitda-margin-of-11-to-13-in-the-first-quarter-of-2025/46814df0-c92e-45fc-ba64-561c85b2d731_en]
[4] Earnings call transcript: Aurora Cannabis Q1 2025 revenue ..., [https://www.investing.com/news/transcripts/earnings-call-transcript-aurora-cannabis-q1-2025-revenue-beats-forecast-93CH-4173516]
[5] Focus on growth markets for medical cannabis and industrial hemp underscores positive outlook for SYNBIOTIC, [https://app.boersengefluester.de/en/newswire/DE000A3E5A59/synbiotic-se/focus-on-growth-markets-for-medical-cannabis-and-industrial-hemp-underscores-positive-outlook-for-synbiotic-2176176]
[6] Cannabis Pharmaceuticals Market Size & Share Report 2030, [https://www.grandviewresearch.com/industry-analysis/cannabis-pharmaceuticals-market]
[7] Is Tilray Stock a Buy, Sell, or Hold for August 2025?, [https://azaliaelevator.net/news/story/34282398/is-tilray-stock-a-buy-sell-or-hold-for-august-2025]