Neighbourly Pharmacy Inc

This morning I bought some more shares in this company of Neighbourly Pharmacy Inc. I realize it is highly risky and I used my fooling around money.

Sound bite for Twitter and StockTwits is: Results of stock price testing is that the stock price is probably cheap. When I was updating my spreadsheet, I noticed per share Revenue per share is down because of outstanding shares are growing much faster than revenue. Debt Ratios are fine The Dividend Payout Ratios (DPR) are fine. The current dividend yield is low with dividend growth flat, but expected to rise. See my spreadsheet on Neighbourly Pharmacy Inc.

Is it a good company at a reasonable price? I always like companies that pay dividends, because with paying dividends, the company does have to come up with cash to do so. This is a recently issued small cap company and buying it is risky. The current stock price is testing as cheap.

I own this stock of Neighbourly Pharmacy Inc (TSX-NBLY, OTC-NBLYF). I read about it on the on Daily Advice website that has since disappeared. This company has a financial year ending March 31 each year, so I am reviewing the financial year ending March 31, 2023.

When I was updating my spreadsheet, I noticed per share Revenue per share is down because of outstanding shares are growing much faster than revenue. Revenue has grown over the past 5 years at 52% per year, Revenue per Share over the past 5 years is down 39% per year. This is because the number of shares outstanding has grown at 148% per year.

If you had invested in this company at issued on May 24, 2021, for $1,012.05 you would have bought 45 shares at $22.49 per share. In December 2022, after 2 years you would have received $14.76 in dividends. The stock would be worth $1,052.55. Your total return would have been $1,067.31. This is a total return would be a total return of 3.36% per year with 2.46% from capital gain and 0.90% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$22.49	$1,012.05	45	2	$14.76	$1,052.55	$1,067.31

The current dividend yield is low with dividend growth flat, but expected to rise. The current dividend yield is low (below2%) at just 1.16%. The 2 year median is also low at 0.61%. The dividends were increased after the first one was issued in 2022 and that increase was for 22%, but dividends have been flat since. Analysts think there will be an increase soon.

The Dividend Payout Ratios (DPR) are fine. The DPR for 2022 for Earnings per Share (EPS) is showing as 0% because of EPS loss. The DPR for 2022 for Adjusted Earnings per Share (AEPS) is 39%. The DPR for 2022 for Cash Flow per Share (CFPS) is 20%. The DPR for 2022 for Free Cash Flow (FCF) is 19%. There is no 5 year coverage as dividends have only paid for 3 years or since 2021.

Item	Cur	5 Years
EPS	0.00%	0.00%
AEPS	39.13%	0.00%
CFPS	20.47%	0.00%
FCF	18.58%	10.89%

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2022 is good at 0.22 and currently at 0.31. The Liquidity Ratio for 2022 is a bit low at 1.22 and 1.17 currently. If you added in Cash Flow after dividends, the ratios are fine at 1.50 and 1.74. The Debt Ratio for 2022 is good at 2.27 and 2.16 currently. The Leverage and Debt/Equity Ratios for 2022 are good at 1.81 and 1.80 and currently at 1.88 and 0.87.

Type	Year End	Ratio Curr
Lg Term R	0.22	0.31
Intang/GW	0.78	1.04
Liquidity	1.22	1.17
Liq. + CF	1.50	1.77
Debt Ratio	2.27	2.16
Leverage	1.81	1.88
D/E Ratio	0.80	0.87

The Total Return per year is shown below for years 2 years 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.
2021	2	21.62%	299.60%	292.88%	6.72%

The 2-year low, median, and high median Price/Earnings per Share Ratios are all negative and so useless.

I also have Adjusted Earnings per Share (data). The 2-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 59.18, 70.28 and 70.28. The current P/AEPS ratio 27.58 based on a stock price of $15.50 and AEPS estimate for 2024 of $0.56. This ratio is below the low ratio of the 2 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $12.91. The 3-year low, median, and high median Price/Graham Price Ratios are 2.45, 2.67 and 2.67. The current P/GP Ratio is 1.20 based on a stock price of 15.50. The current ratio is below the low ratio of 3 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get a 3-year median Price/Book Value per Share Ratio of 1.77. The current P/B Ratio is 1.17 based on a stock price of $15.50, Book Value of $590M, and Book Value per Share of $13.23. The current P/B Ratio is 34% below the 3 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get a 3-year median Price/Cash Flow per Share Ratio of 21.70. The current P/CF Ratio is 7.49 based on Cash Flow per Share estimate for 2024 of $2.07, Cash Flow of $92.3M and a stock price of $15.50. The current ratio is 65% below the 3 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get a 2 year and historical median dividend yield of 0.61%. The current dividend is 1.16% based on dividends of $0.18 and a stock price of $15.50. This dividend yield is 90% above the 2 year median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

The 2-year median Price/Sales (Revenue) Ratio is 1.98. The current P/S Ratio is 75 based on Revenue estimate for 2024 of $918M, Revenue per Share of $20.58 and a stock price of $15.50. The current ratio is 62% below the 2 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 company only went public in May of 2021, so I do not have much to work with. However, all my tests are pointing to the stock price being relatively cheap. My favourite one of dividend yield is saying this and it is confirmed by the P/S Ratio test.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (2) and Hold (3). The consensus would be a Buy. This is a lot of analysts following a start-up. The 12 months target price is $21.29 with a high of $28.00 and a low of $18.50. The 12 month target price of $21.29 implies a total return of 38.52% with 37.35% from capital gains and 1.16% from dividends.

Simply Wall Street via Yahoo Finance talks about who owns this company. Simply Wall Street gives this stock 3 and one half stars. They give one warning of volatile share price over the past 3 months.

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 Friday, December 22, 2023 around 5 pm. Tomorrow on my other blog I will write about Stocktrades .... learn more on Thursday, December 21, 2023 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. 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.

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