Is it a good company at a reasonable price? This company is growing and it is producing a reasonable return for Shareholders. It is growing its dividend and that is good. The stock price testing is showing the stock price as relatively cheap, so it seems like a reasonable time to buy.
I do not own this stock of Jamieson Wellness Inc (TSX-JWEL, OTC-JWLLF). This stock was written up in November 26, 2020 by Kay Ng on Motley Fool. She looked at what Warren Buffet was buying and pick some similar stocks, including Jamieson from TSX.
When I was updating my spreadsheet, I noticed that this stock has only been on the TSX since 2017, but it has been growing nicely.
| Year | Item | Tot. Growth | Per Year |
|---|---|---|---|
| 5 | Revenue Growth | 82.08% | 12.73% |
| 5 | AEPS Growth | 169.83% | 21.96% |
| 5 | Net Income Growth | 322.00% | 33.37% |
| 5 | Cash Flow Growth | 183.49% | 23.17% |
| 4 | Dividend Growth | 88.24% | 13.49% |
| 5 | Stock Price Growth | 57.07% | 9.45% |
| 6 | Revenue Growth | 120.42% | 8.22% |
| 5 | AEPS Growth | 169.83% | 10.44% |
| 6 | Net Income Growth | 309.84% | 15.15% |
| 6 | Cash Flow Growth | 74.39% | 5.72% |
| 4 | Dividend Growth | 88.24% | 6.53% |
| 6 | Stock Price Growth | 102.83% | 7.33% |
The current dividend yield is moderate with dividend growth good. The current dividend yield is moderate (2% to 5% range) at 2.29%. The 4 year median dividend yield is low (below 2%) at 1.47%. The dividend increases are good (14% and higher) at 17% per year for the past 4 years. The last increase was in 2022 and it was for 13%.
The Dividend Payout Ratios (DPR) are fine. The DPR for 2022 for Earnings per Share (EPS) is 21% with 5 year coverage at 47%. The DPR for 2022 for Adjusted Earnings per Share (AEPS) is 41% with 5 year coverage at 39%. The DPR for 2022 for Cash Flow per Share (CFPS) is 34% with 5 year coverage at 31%. The DPR for 2022 for Free Cash Flow (FCF) is 73% with 5 year coverage at 87%.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 51.20% | 46.59% |
| AEPS | 41.29% | 39.36% |
| CFPS | 34.39% | 30.85% |
| FCF | 73.08% | 87.05% |
Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2022 is low at 0.09. The current one is a bit higher, but is still a low ratio at 0.27. The Liquidity Ratio for 2022 is good at 2.84. The Debt Ratio for 2022 is good at 3.10. The Leverage and Debt/Equity Ratios are good at 1.91 and 0.91, respectively. They are also higher currently at 2.57 and 1.57 are those are fine.
| Type | Ratio '22 | Ratio Curr |
|---|---|---|
| Lg Term R | 0.09 | 0.27 |
| Intang/GW | 0.19 | 0.44 |
| Liquidity | 2.84 | 2.28 |
| Liq. + CF | 3.10 | 2.43 |
| Debt Ratio | 2.10 | 1.64 |
| Leverage | 1.91 | 2.57 |
| D/E Ratio | 0.91 | 1.57 |
The Total Return per year is shown below for years of 5 to 6 to the end of 2022. 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. |
|---|---|---|---|---|---|
| 2017 | 5 | 17.13% | 11.14% | 9.45% | 1.69% |
| 2016 | 6 | 14.02% | 12.51% | 1.51% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 25.84, 29.72 and 33.11. The corresponding 6 year ratios are 24.81, 29.12 and 33.03. The current P/E Ratio is 18.24 based on a stock price of $29.73 and EPS estimate for 2023 of $1.63. The current ratio is below the low ratio of the 6 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 2084, 27.16 and 31.36. The corresponding 6 year ratios are 20.84, 27.16 and 31.36. The current ratio is 18.02 based on a stock price of $29.73 and AEPS estimate for 2023 of $1.65. The current ratio is below the low ratio of the 6 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I get a Graham Price of $19.59 . The 6-year low, median, and high median Price/Graham Price Ratios are 1.72, 2.08 and 2.43. The current P/GP Ratio is 1.52 based on a stock price of $29.73. The current ratio is below the low ratio of the 6 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I get a 6-year median Price/Book Value per Share Ratio of 3.44. The current P/B Ratio is 2.88 based on a Book Value of $432M, Book Value per Share of $10.35 and stock price of $29.73. The current ratio is 16% below the 6 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I also have a Book Value per Share estimate for 2023 of $11.80. This implies a P/B Ratio of 2.52 with a Book Value of 4494M and with stock price of $29.73. This P/B Ratio is 27% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I get a 6-year median Price/Cash Flow per Share Ratio of 32.52. The current P/CF Ratio is 16.99 based on Cash Flow per Share estimate for 2023 of $1.75, Cash Flow of $73.3M and a stock price of $29.73. The current ratio is 48% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I get a 4 year median dividend yield of 1.47%. The current dividend yield is 2.29% based on dividends of $0.68 and a stock price of $29.73. The current dividend yield is 56% above the 6 year median dividend yield. This stock price testing suggests that the stock price is relatively cheap.
The 6-year median Price/Sales (Revenue) Ratio is 2.71. The current P/S Ratio is 1.81 based Revenue estimate for 2023 of $688M, Revenue per Share of $16.42 and a stock price of $29.73. The current ratio is 33% below the 6 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 that the stock price is probably cheap. The dividend yield test says this and it is confirmed by the P/S Ratio test. Most of the other tests are saying that the stock price is cheap.
When I look at analysts’ recommendations, I find Strong Buy (4), Buy (4), and Hold (2). The consensus would be a Strong Buy. The 12 month stock price consensus is $43.60. This implies a total return of 48.94% with 46.65% from capital gains and 2.29% from dividends.
Analysts were saying on Stock Chase late last year that the stock was a buy. Stock chase gives this company 5 stars out of 5. Amy Legate-Wolfe on Motley thinks this stock is oversold and so it is time to buy. Rajiv Nanjapla on Motley Fool thinks this stock is a long term buy. The company put out a press release on Business Wire about their results for their fourth quarter of 2022. The company put out a press release on Business Wire about their first quarter of 2023 results.
Simply Wall Street on Yahoo Finance says that this stock has a fair market value of $33.55 CDN$. Simply Wall Street gives this stock 2 and one half stars out of 5. Simply Wall Street has 3 warnings of debt is not well covered by operating cash flow; dividend of 2.27% is not well covered; and shareholders have been diluted in the past year.
The Debt to Cash Flow (in Years) is 7.9 year for 2023. It is currently at 5.3 years with a 7 year median at 5.4 years. Ideal is 3 years. I do not see why they are saying that dividend is not well covered? Shareholders are diluted whenever a company issued more shares. The outstanding shares have increased by 2% per year over the past 5 years.
Jamieson Wellness Inc is engaged in the manufacturing, distributing, and marketing of branded natural health products, including vitamins, minerals, and supplements. Geographically, most of its revenue is derived from the domestic market. Its web site is here Jamieson Wellness Inc .
The last stock I wrote about was about was Premium Brands Holdings Corp (TSX-PBH, OTC-PRBZF) ... learn more. The next stock I will write about will be Suncor Energy Inc (TSX-SU, NYSE-SU) ... learn more on Friday, July 7, 2023 around 5 pm. Tomorrow on my other blog I will write about Something to Buy July 2023.... learn more on Thursday, July 6, 2023 around 5 pm.
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