Is it a good company at a reasonable price? They seem to be going through a restructuring. Most of the recommendations are a Hold and I can see why. People seem to be waiting to see what unfolds with this company in the future. I think it is cheap, but being cheap does not always make a stock a good buy. I think that wait and see is a good attitude for this stock.
I do not own this stock of Wild Brain Ltd (TSX-WILD, OTC-WLDBF). In the CanTech Letter of May 2014 Byron Capital says investors should accumulate DHX Media aggressively.
When I was updating my spreadsheet, I noticed since this is a small stock and really is not doing well presently, it still has analysts following it and giving estimates for the next 3 years. It would seem that analysts feel that this company will do well in the future. However, in the meantime it has a negative book value (that is bad), Debt/Market Cap Ratio of 1.59 (that is bad) and Intangible/Market Cap Ratio of 1.96 (and that is bad).
Note that this company has a financial year ending June 30 each year, so I am doing my spreadsheet based on the June 30, 2024 financials.
If you had invested in this company in December 2013, for $1,002.40 you would have bought 179 shares at $5.60 per share. In December 2023, after 10 years you would have received $48.33 in dividends. The stock would be worth $195.11. Your total return would have been $243.44. This would be a total loss of 14.33% per year with 15.10% from capital loss and 0.66% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $5.60 | $1,002.40 | 179 | 10 | $48.33 | $195.11 | $243.44 |
The dividends were cancelled in 2019, so there is no dividend information or Dividend Payout Ratios (DPR).
Debt Ratios are mostly awful. The Long Term Debt/Market Cap Ratio for 2023 is far too high at 1.59 and currently at 2.32. The Intangible/Market Cap Ratio for 2023 is far too high at 1.80 and currently at 1.96. The Liquidity Ratio for 2023 is too low at 1.19 and better at 1.76 currently. If you added in Cash Flow after dividends, the ratio is currently too low at 1.37 and but fine currently at 1.89. The Debt Ratio for 2023 is too low at 1.31 and 1.32 currently. The Leverage and Debt/Equity Ratios for 2023 are negative because this company now has a negative book value.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 1.59 | 2.32 |
| Intang/GW | 1.80 | 1.96 |
| Liquidity | 1.19 | 1.76 |
| Liq. + CF | 1.37 | 1.89 |
| Debt Ratio | 1.31 | 1.32 |
| Leverage | -98.03 | -93.39 |
| D/E Ratio | -75.08 | -70.63 |
The Total Return per year is shown below for years of 5 to 18 to the end of 2023. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2018 | 5 | 0.00% | -11.61% | -11.61% | 0.00% |
| 2013 | 10 | 0.00% | -14.44% | -15.10% | 0.56% |
| 2008 | 15 | 9.09% | 5.62% | 2.53% | |
| 2005 | 18 | -2.73% | -3.92% | 1.13% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are negative and therefore, useless. The corresponding 10 year ratios are negative and useless. The corresponding historical ratios are negative and useless.
This stock price testing suggests that the stock price is relatively reasonable and below the median.
With negative earnings, the Graham Price cannot be calculated, so I cannot do Price/Graham Price Ratio testing.
I get a 10-year median Price/Book Value per Share Ratio of 3.00. I can do no P/B Ratio testing for 2025 as the Book Value is negative in 2025. However, for 2026, I have a Book Value per Share estimate of $0.03. This implies a ratio of 34.00 based on a stock price of $1.02 and Book Value of $6.2M. This ratio is 1033% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
I get a 10-year median Price/Cash Flow per Share Ratio of 4.75. The current P/CF Ratio is 5.67 based on Cash Flow per Share estimate for 2025 of $0.18 and a stock price of $1.02. This ratio is 19% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I cannot do any dividend yield tests because this company has suspended dividends.
The 10-year median Price/Sales (Revenue) Ratio is 1.04. The current P/S Ratio is 0.41 based on Revenue estimate for 2025 of $510.3M, Revenue per Share of $2.48 and a stock price of $1.02. The current ratio is 60% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
Results of stock price testing is that the stock price is probably cheap. A favourite test of mine is the P/S Ratio test (after the dividend tests). This test says that the stock price is relatively cheap.
When I look at analysts’ recommendations, I find Strong Buy (1), and Hold (6). The consensus would be a Hold. The 12 month stock price consensus is $1.85 with a high of $3.00 and low of $1.25. The consensus stock price of $1.85 implies a total return of $81.37%, all from capital gains.
There are no entries on Stock Chase for this stock. Aditya Raghunath on Motley Fool says this stock is risky, but could pay off in the future.. Amy Legate-Wolfe on Motley Fool says this stock is due to bounce back. Guru Focus News via Yahoo Finance talks a look at this company’s first quarter of 2025. The company put out a Press Release on their fourth quarter results for 2024. The company put out a Press Release about their first quarter of 2025 results.
Simply Wall Street via Yahoo Finance reviews this stock. Simply Wall Street gives this stock 1 and one half stars out of 5. Simply Wall Street has 2 warnings out on this stock of currently unprofitable and not forecast to become profitable over the next 3 years; and shareholders have been diluted in the past year.
WildBrain Ltd develops, produces, and distributes films and television programs for domestic and international markets; licenses its brands in the domestic and international markets; broadcasts films and television programs in the domestic market; sells advertising on various ad-supported video-on-demand platforms; and manages copyrights, licensing, and brands for third parties. Its web site is here Wild Brain Ltd.
The last stock I wrote about was about was Stella-Jones Inc (TSX-SJ, OTC-STLJF) ... learn more. The next stock I will write about will be Keg Royalties Income Fund (TSX-KEG.UN, OTC-KRIUF) ... learn more on Wednesday, November 27, 2024 around 5 pm. Tomorrow on my other blog I will write about Leon’s Furniture .... learn more on Tuesday, November 26, 2024 around 5 pm.
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