NBLY three levers of growth NBLY three levers of EBITDA growth (M&A), organic business growth, and margin expansion provide for a solid outlook over the next couple of years.
Using TD's mid-range M&A EBITDA contribution of 12.5%, 3% organic growth, and 50 basis points margin improvement. NBLY's EBITDA will increase to around $115m from $98M within 12 months, and again to $132M over the subsequent 12 months.
Companies operating within mature, predictable, industries such as pharmacy healthcare don't increase their underlying cash flow by over 30% in two years. As such, NBLY is truly unique in its ability to generate material growth while keeping its debt ratio stable. Most promising, as the interest cycle reverse, NBLY will be able to deliver the above while shrinking its outstanding debt, meaning value accretion to shareholders will accelerate as the company enterprise value equity/debt mix shifts to the equity side of the equation.
If Canada GDP numbers this morning are any indication, interest rates are on their way down by Q2/24 at the latest. NBLY in the mid-teens, remains an absolute steal.