In an industry that sometimes seems like it is full of disappointment with continuous losses and lackluster growth numbers, cannabis investors received a welcome surprise last week from OrganiGram (OGI -0.51%). The marijuana company reported its latest quarterly numbers, and they were full of positives.

OrganiGram grew its sales and improved on its margins. By the marijuana industry's standards in Canada, that's definitely a small miracle, one that investors may not have been expecting. Let's take a closer look at the numbers and see if OrganiGram is a pot stock worth buying today. 

Two people working at a greenhouse.

Image source: Getty Images.

Sales soared 128% year over year

For the period ending Feb. 28, OrganiGram reported gross sales of 43.9 million Canadian dollars, more than double the CA$19.3 million it generated in the prior-year period. After excise taxes, net revenue was still CA$31.8 million and up an impressive 117%. What's even more surprising is that the company's market share in Canada was 8.2% in February, and for the second straight month, it was the No. 3 licensed producer in the country. And it's also in the leading position in the dried flower category, which accounts for half of the entire market.

One of the ways the company has been growing its sales is by launching new products. OrganiGram said it introduced 18 new products during the period, bringing its total core SKUs to 69. 

OrganiGram's margins improved along with revenue

What made the quarter a shocking one was that in addition to some solid sales growth, OrganiGram improved on its margins. Normally, when a company puts out more SKUs and tries to be more aggressive on the top line, it's the margins that suffer. But OrganiGram's adjusted gross margin of 26% was a big improvement from the negative 5% margin that it reported a year earlier. 

Furthermore, it reported an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) profit of CA$1.6 million, versus a loss of CA$7.8 million a year earlier. For comparison's sake, rival producer Aurora Cannabis continues to work toward positive adjusted EBITDA, and it recently shrank its quarterly loss to below CA$10 million in the period ending Dec. 31. But unlike OrganiGram, its revenue declined by 10% on a year-over-year basis to CA$60.6 million.

OrganiGram may not be generating as much in revenue (Aurora's business is broader and more geographically diverse), but the company is generating growth and improving its bottom line, which makes it a more sound investment overall.

Is OrganiGram a buy?

Although the results initially buoyed OrganiGram's stock, it is still down 34% over the past 12 months. However, that's still better than the Horizons Marijuana Life Sciences ETF, which has fallen 52% during the same period. The cannabis industry hasn't been a popular place to invest in of late, especially with legalization in the U.S. not making any meaningful progress, which may be frustrating growth-oriented investors. Relative to what the industry is facing as a whole, OrganiGram's stock has done reasonably well.

The big question for investors about whether the stock is still a buy right now is in determining if it's worth a premium, as it currently trades at a higher price-to-sales (P/S) ratio than its peers.

Chart showing OrganiGram's PS ratio higher than several other cannabis companies'.

OGI PS Ratio data by YCharts

If the company can continue to make improvements in future quarters, not only will its P/S multiple get better, but there will also be a greater justification to pay a premium for this promising growth stock.

For investors wanting exposure to the Canadian cannabis market, OrganiGram may be one of the better options to buy today. More conservative investors, however, may want to wait at least another quarter or two to confirm that its No. 3 position in the market is sustainable for more than just a couple of months.