TSX:NBLY - Post Discussion
Post by
retiredcf on Jul 06, 2023 6:33am
Stockchase Insights
HOLD
Neighbourly Pharmacy Inc(NBLY-T)
05/07/2023
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research
NBLY has not been a public company for very long (IPO'd in mid-2021), but its growth rates are strong, and while it is not yet profitable, it is on the cusp of becoming profitable. Its forward P/E is now fairly high at 31.3X, but its price to book is 1.2X and its forward sales multiple is cheap at 0.8X. It has a ~5.7% free cash flow yield and its balance sheet is strong. With a net profit margin of ~(2%), if sales growth continues at a fast pace and it becomes profitable, we believe that its strong fundamental base can begin to be appreciated by investors. We do not like the negative momentum recently, but we believe it has a lot to offer and it is now nearing its book value. In a rising interest rate environment, unprofitable names are still not investors' number one preference, but we expect NBLY's high growth rates to be a tailwind over the long-term.
Healthcare
$15.880
Unknown
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