Is it a good company at a reasonable price? This company is a just at the startup position. This is a risky stock and you should not invest in it any money you cannot afford to lose. I was think of buying it on the basis it might be fun. It has increased it dividend one it started, but dividends are very low. It might be a dividend growth stock. It is too soon to tell.
I do not own this stock of Neighbourly Pharmacy Inc (TSX-NBLY, OTC-none). I read about it on the Daily Advice website.
When I was updating my spreadsheet, I noticed they started to show Adjusted Earnings per Share for the financial year of 2022. There is a big difference in AEPS for 2021 compared EPS for 2021. The AEPS for 2021 is $0.32 and the EPS for 2021 is a loss of $198.80. Also, just at the time they went on the TSX, the company had a consolidation of stock at 10 to 1. (For every 10 shares, shareholders got 1 share.) Note that the financial year ends March 31 each year, so I am reviewing the financial year ending March 31, 2022.
If you had invested in this company in May 2021, for $1,003.00 you would have bought 59 shares at $17.00 per share. In December 2021, after 7 months you would have received $8.73 in dividends. The stock would be worth $2,256.46. Your total return would have been $2,365.19. This stock was issued in may 2021 for $17.00 for its IPO. This is the best I can determine.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $17.00 | $1,003.00 | 59 | 7 Mths. | $8.73 | $2,356.46 | $2,365.19 |
The dividend yields are low with dividend growth good for this recently issued stock. The dividend yields are low (below 1%). The original dividend was 0.37% and now it is 0.79%. So, it is very low. There was one increase in 2022 and it was for 246%. Dividend went from $0.013 to $0.045.
The Dividend Payout Ratios (DPR) are expected to be good in 2023. The DPR for EPS for 2022 cannot be calculated because of an earnings loss. The DPR for EPS for 2023 is expected to be around 120% and then falling to around 38% in 2024. The DPR for Adjusted Earnings per Share for 2022 is 39%. The DPR for Cash Flow per Share in 2022 is 46%, and is expected to fall to 27% in 2023. The DPR for Free Cash Flow for 2022 cannot be calculated due to a negative FCF. The DPR for FCF for 2023 is expected to be 20%.
Debt Ratios are currently good. The Long Term Debt/Market Cap for 2022 is good at 0.06. It was 277.40 last year and has improved because of lower debt and increase in Stock Price. The Liquidity Ratio for 2022 is 1.56 and this is good and a great improvement over last year’s 0.31. The Debt Ratio is also good at 2.58 and is better than last year’s 0.74. The Leverage and Debt/Equity Ratio for 2022 are good at 1.67 and 0.65.
The Total Return per year is shown below for years of 1 to the end of 2021 as best as I can determine for this Stock issued in May 2021. 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. |
|---|---|---|---|---|---|
| 2021 | 1 | 7.85% | 135.81% | 134.94% | 0.87% |
The low, median, and high median Price/Earnings per Share Ratios are all negative and so unusable. The P/E Ratio for 2023 is 155.47. This is a high ratio.
The 2-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 24.63, 39.73 and 54.82. They are rather high. The P/AEPS Ratio for 2023 is 44.00. This ratio is expected to fall to 28.44 in 2024 and 20.64 in 2025. All are quite high, and that points to an expensive stock price. However, the stock price was rising quickly to the end of last year. It has fallen some 41.6% this year.
I get a Graham Price of $12.94. The 2-year low, median, and high median Price/Graham Price Ratios are 1.01, 1.63 and 2.26. The current P/GP Ratio is 1.80 based on a stock price of $22.89. The current ratio is between the median and high ratios of the 2 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median. However, we do not much information to base this on.
I get a 2-year median Price/Book Value per Share Ratio of 1.44. The current P/B Ratio is 1.63 based on a Book Value of $621M, Book Value per Share of $14.04 and a stock price of $22.89. The current ratio is 13% above the 2 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get a 2-year median Price/Cash Flow per Share Ratio of 44.42. The current P/CF Ratio is 34.16 based on Cash Flow per Share estimate for 2023 of $0.67, Cash Flow of $29.7M and a stock price of $22.89. The current ratio is 23% below the 2 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I get a 1 year median dividend yield of 0.52%. The current dividend yield is 0.79% based on a stock price of $22.89 and dividends of $0.18. The current yield is 51% above the 1 year median dividend yield. So based on very little data, this stock price testing suggests that the stock price is relatively cheap.
The 1-year median Price/Sales (Revenue) Ratio is 2.30. The current P/S Ratio is 1.34 based on Revenue estimate for 2023 of $758M, Revenue per Share of $17.12 and a stock price of $22.89. The current ratio is 42% below the 1 year median ratio. So based on very little data, this stock price testing suggests that the stock price is relatively cheap.
Results of stock price testing is that the stock price is the price. It is difficult to determine a relative price. In some cases, I have only one other year to based this year’s ratios on. Sometimes I have 2 years. The analysts’ recommendation at a Buy is probably a fair conclusion. So, let us go with a reasonable price.
When I look at analysts’ recommendations, I find Strong Buy (1), Buy (5) and Hold (3). The consensus would be a Buy. The 12 month stock price consensus is $29.56. This implies a total return of 29.93% with 29.14% from capital gains and 0.79% from dividends based on a current stock price of $22.89.
This stock is mostly liked on Stock Chase by analysts. Stock Chase gives this stock 4 stars out of 5. Daniel Da Costa on Motley Fool thinks this stock can make you a millionaire. Daniel Da Costa on Motley Fool reviews this stock and says it is his top growth stock. The company put out a Press Release on their fourth quarter of 2022. The company put out a Press Release on their second quarter of 2023. Simply Wall Street via Yahoo Finance reviews this stock. Simply Wall Street gives this stock 3 stars out of 5. Simply Wall Street issues two warnings of large one-off items impacting financial results and shareholders have been diluted in the past year.
Neighbourly Pharmacy Inc is a network of community pharmacies. Its pharmacies act as the centre of care within their communities, representing an indispensable source of both healthcare delivery and trusted advice for their patients. Its web site is here Neighbourly Pharmacy Inc.
The last stock I wrote about was about was Element Fleet Management Corp (TSX-EFN, OTC-ELEEF) ... learn more. The next stock I will write about will be Maple Leaf Foods Inc (TSX-MFI, OTC-MLFNF) ... learn more on Tuesday, December 27, 2022 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
No comments:
Post a Comment