Is it a good company at a reasonable price? Certainly, a negative is the awful Debt Ratios. The company certainly does not have a great past track record. However, a positive would be that analysts seem to think that this company is going to do well in the near future. Possibly, but the risk level is high. My stock price testing points to a rather cheap stock price currently.
I do not own this stock of Wild Brain Ltd (TSX-WILD, OTC-WLDBF). In the CanTech Letter of May 2014, investors should accumulate DHX Media “aggressively”, says Byron Capital. I also saw a report on this stock from Global Maxfin Capital who rates this stock a strong buy in January 2014. Note that his stock has their financial year end of June 30, so I am reviewing the financial year end of June 30, 2023 and the first quarter of 2024 of September 30, 2023. Also, DHX Media was rebranded as Wild Brain Ltd in 2019.
When I was updating my spreadsheet, I noticed this company has not turned a profit since 2017. Since that time also, the stock price has declined by 82% from the high of 2017. It also cut its dividend in 2019. However, the company is expected to turn profitable in the 2025 financial year, that is next year.
| Year | Item | Tot. Growth | Per Year |
|---|---|---|---|
| 5 | Revenue Growth | 22.66% | 4.17% |
| 5 | EPS Growth | -160.00% | N/C |
| 5 | Net Income Growth | -159.91% | N/C |
| 5 | Cash Flow Growth | 604.80% | 47.78% |
| 5 | Dividend Growth | -100.00% | N/C |
| 5 | Stock Price Growth | -44.23% | -11.02% |
| 10 | Revenue Growth | 447.87% | 18.54% |
| 10 | EPS Growth | -1400.00% | N/C |
| 10 | Net Income Growth | -1042.96% | N/C |
| 10 | Cash Flow Growth | 1041.81% | 27.57% |
| 10 | Dividend Growth | -100.00% | N/C |
| 10 | Stock Price Growth | 82.46% | 6.20% |
If you had invested in this company in December 2017, for $1,003.50 you would have bought 223 shares at $4.50 per share. In December 2022, after 5 years you would have received $0.00 in dividends. The stock would be worth $697.76. Your total return would have been $695.76. This is a total return would be a total loss of 10.25% per year with 10.25% from capital loss and 0.00% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $4.50 | $1,003.50 | 223 | 5 | $0.00 | $695.76 | $695.76 |
This company stopped paying a dividend in 2019. They are not earnings any profits, so a dividend is currently out of the question.
Debt Ratios are awful. The Long Term Debt/Market Cap Ratio for 2023 is far too high at 1.54 for 2022 and 1.42 currently. Any ratio above 1.00 (and some analyst think about 0.50 is too high. It means that the market value of the company is much lower than the company’s long term debt. The Intangible and Good Will/Market Cap Ratios are much to high at 1.48 for 2023 and 1.89 now. It means that the company has intangibles on its balance sheet that show worth higher than the current market value of the company.
The Liquidity Ratio for 2023 is good at 1.60. However, this ratio is too low currently at 1.17 and even if you add in cash flow it is still low at 1.31. I prefer it to be at 1.50 or higher. The Debt Ratio for 2023 is too low at 1.37 and currently at 1.38. I prefer this to be 1.50 or higher. The Leverage and Debt/Equity Ratios for 2023 are far too high at 15.96 and 11.69 and at 16.21 and 11.74 currently. These should be under 3.00 and 2.00.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 1.54 | 1.42 |
| Intang/GW | 1.48 | 1.89 |
| Liquidity | 1.60 | 1.17 |
| Liq. + CF | 1.87 | 1.31 |
| Debt Ratio | 1.37 | 1.38 |
| Leverage | 15.96 | 16.21 |
| D/E Ratio | 11.69 | 11.74 |
The Total Return per year is shown below for years of 5 to 17 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 | 0.00% | -7.06% | -7.06% | 0.00% |
| 2012 | 10 | 0.00% | 7.87% | 6.20% | 1.19% |
| 2007 | 15 | 4.50% | 3.55% | 1.43% | |
| 2005 | 17 | 2.71% | 1.97% | 1.00% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are negative and useless. The corresponding 10 year ratios are also negative and useless. The corresponding historical ratios are negative and useless. The current P/E Ratios is negative and useless for testing. However, P/E Ratio for 2025 is 14.25 based on a stock price of $1.14 and EPS estimate for 2025 of $0.08. A P/E Ratio of 14.25 would be moderate and so suggest a reasonable stock price.
I get a Graham Price of $0.29. The 10-year low, median, and high median Price/Graham Price Ratios are 3.10, 5.50 and 7.96. The current P/GP Ratio is 3.94 based on a stock price of $1.14. This ratio is between the low and median ratio of the 10 year ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median. The problem with this testing is that the Graham Price includes the EPS which has been mostly negative and the current Graham Price is an estimate.
However, for the 2025 financial year, the Graham Price is $0.82. The P/GP Ratio would be 1.39 based on a stock price of 1.14. P/GP Ratios up to 1.20 could be considered reasonable. This ratio is above 1.20 and therefore would suggest that the stock price is relatively expensive.
I get a 10-year median Price/Book Value per Share Ratio of 3.00. The current P/B Ratio is 3.07 based on a stock price of $1.14, Book Value of $74.28 and Book Value per Share of $0.37. This ratio is 2% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I also go a Book Value per Share estimate for 2024 of $0.51. This implies a ratio of 2.24 and Book Value of $120M. This ratio is 25% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I get a 10-year median Price/Cash Flow per Share Ratio of 5.55. The current P/CF Ratio is 3.56 based on Cash Flow per Share estimate for 2024 of $0.32 and a stock price of $1.14. The current ratio is 36% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I cannot do any dividend yield testing because the company has cancelled its dividends.
The 10-year median Price/Sales (Revenue) Ratio is1.32. The current P/S Ratio is 0.46 based on Revenue estimate for 2024 of $498M, Revenue per Share of $2.49 and a stock price of $1.14. The current ratio is 65% 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. The P/S Ratio test says this and it is a good test. The P/CF Ratio test says this also. The other tests vary and the only other ones without problems is the P/B Ratio tests and they say reasonable to cheap.
When I look at analysts’ recommendations, I find Strong Buy (2), Buy (3) and Hold (3). The consensus would be Buy. The 12 months stock price consensus would be $2.433 with a high of $4.00 and low of $1.50. The 12 month consensus price of $2.433 implies a total return of 113.42% all from capital gains.
This stock is not listed on Stock Chase. It is not on any of my dividend lists. Adam Othman on Motley Fool says buying this stock now might allow you to leverage the next bullish phase. Ambrose O'Callaghan on Motley Fool says this stock offers exposure to a Canadian streaming stock. The company put out a press release on Newswire about their June 2023 year end results. The company put out a press release on Newswire about their first quarter of 2024 results.
Simply Wall Street via Yahoo Finance says the fair value of this stock is $1.70. Simply Wall Street put out 1 warning of shareholders have been diluted in the past year. Simply Wall Street gives this stock 2 and one half stars out of 5.
WildBrain Ltd is a children's content and brands company, recognized globally for properties such as Peanuts, Strawberry Shortcake, Caillou, Inspector Gadget, and Degrassi franchise. Its web site is here Wild Brain Ltd.
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