Cronos Group last week was the latest marijuana stock to fall following its latest earnings report. But unlike some of its cash-strapped peers, Cronos has a strong balance sheet—a factor that led Cowen analyst Vivien Azer to title a Monday note to clients, “Who needs revenues when you have cash?”

Where we were. Cash burn has been a major concern for investors following marijuana stocks in recent months. Some of the biggest names like Tilray (ticker: TLRY) and Aurora Cannabis (ACB) have been cutting costs through layoffs, asset sales, and closed facilities.

Such concerns have played into the hands of Cronos, which received about $1.2 billion from tobacco giant Altria Group. By opting for an “asset-light” approach, the company has held onto the cash to sustain its current spending for years. But whether that means Cronos becomes a long-term winner in the space is far less concrete.

What’s new. Cronos stock fell in the days following the company’s fourth-quarter earnings report. In terms of cash flow, the company reported earnings before interest, taxes, depreciation and amortization of about negative $52 million, Cowen’s Azer noted.

But excluding inventory write-downs, the company’s 2019 gross margin would have been 49%. The company is averaging about $21 million in quarterly operating expenses, meaning it may be some time until it turns cash flow positive. Temporary retail store closures related to Covid-19 could drag on results, she added.

“That said, investors remain most attracted to the company’s balance sheet ($1.5 billion in cash),” Azer wrote. “To paraphrase Yogi Berra (here), CRON has cash which is just as good as money.”

Looking ahead. Azer maintained a market perform rating on the stock, though she lowered her price target and expectations for revenue.

“While CRON continues to maintain patience in Canada and to let the market come to them as competitors declare bankruptcy, it has been unable to establish momentum and still maintains a limited distribution,” she wrote.

Cronos stock (CRON) rose 4.5% Monday, while the S&P 500 index soared 7%. The ETFMG Alternative Harvest ETF (MJ), an exchange-traded fund with exposure to the marijuana trade, was up 5%.

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