Planet 13 (PLNH.F 2.11%) is one of my favorite cannabis companies. Its slow-and-steady strategy has allowed it to fine tune its operations without being bogged down by rapidly increasing expenses. Its SuperStore location is a hit in Las Vegas, and it has another one scheduled to launch in California this summer.

For investors, the pot stock has already been an amazing buy, generating returns of more than 300% over the past year while the Horizons Marijuana Life Sciences ETF has risen by just 40%. With the economy reopening and travel on the rise, there could soon be an influx of customers headed for its conveniently located dispensaries. Planet 13's business holds a lot of promise, but can investing in it today make you a millionaire?

Two couples on a yacht.

Image source: Getty Images.

What the numbers say

For a business to make you rich, it needs to be generating some strong numbers. And Planet 13 has been doing just that. On May 27, the Nevada-based company released its first-quarter results for the period ending March 31. Sales during the period totaled $23.8 million, which was a year-over-year increase of 42%. That was also an 18% improvement from the fourth quarter when sales came in at $20.1 million. 

And the numbers are likely to get even better -- Planet 13 reported that in April, sales reached a record of $10.7 million. Co-CEOs Bob Groesbeck and Larry Scheffler were "blown away by the rebound in tourist activity." A rebound is correct, as the monthly visitor volume in Las Vegas is almost back to pre-pandemic levels. In April 2021, visitor volume of 2.57 million was a 15.4% increase from the previous month and down just 27% compared to two years ago. In February 2020, the Las Vegas Convention and Visitors Authority reported 3.3 million visitors. 

Las Vegas visitor volumes by month.

Data source: Las Vegas Convention and Visitors Authority. Chart by author. 

The company is also in a great position to benefit from the recently passed legislation in Nevada that will permit consumption lounges. Planet 13's SuperStore in Las Vegas already has space set aside for that, and the company says it will build a lounge "as soon as possible."

But it isn't just revenue growth that makes the business look good; its bottom line is rock-solid as well. Not only did the company generate a positive adjusted EBITDA of $5.2 million this past quarter, but Planet 13 also broke even and its net income before taxes totaled $3 million. Many marijuana companies struggle to get in the black when it comes to adjusted EBITDA, let alone true accounting income. Profitability is important for a business that wants to grow. Otherwise, that can be a recipe for frequent share offerings that dilute existing shareholders and drive down a stock's price. 

It might not be too late to invest in Planet 13

At less than $25 million in quarterly revenue, Planet 13 is still a bit of a minnow in the industry. Pot giant Curaleaf recently reported sales of more than 10 times that amount -- $260 million for the first three months of the year. Not only does Planet 13 still have a lot of room to get bigger, especially with the company launching its Santa Ana-based SuperStore location later this year, but it also makes the company a potentially attractive acquisition target for a cannabis operator that may be looking to expand into Nevada. With a $1.3 billion market cap, its valuation is lower than Harvest Health ($1.7 billion), which Curaleaf's rival Trulieve recently announced plans to acquire.

Planet 13 may not be expanding as aggressively as other multistate operators in the country, but that strategy has been working just fine for the company. And if you're willing to stay the course and hold on to the pot stock, it could make you rich. While it may not double or triple in value every year, as its business gets bigger and its profits rise, you can be sure many investors will be growing more bullish on this pot stock, paving the way for some fantastic returns.