TSXV:RX - Post Discussion
Post by
retiredcf on Sep 19, 2022 6:02am
Another View
In your comments on Biosyent Oct /21 , you indicated that while very small, the company had impressive financials . Could I have your up-dated assessment post recent earnings and in particular in light of its announcement of an inaugural dividend by the end of this year.
RX reported EPS of $0.1 missing estimates of $0.14, and revenues of $6.63M missing estimates of $7.5M. The company's revenues declined by 9% for the quarter, but net income grew against the prior year by 20%, largely driven by an expansion in its gross profit margin. The company has a healthy cash balance of $27.9M, it grew its equity position for the quarter, and is trading at a good forward sales multiple of 3.4X, P/E of 16.1X, and P/B of 3.0X. The company is adopting a dividend policy by the end of 2022, and we feel that this is quite feasible for the company given its strong balance sheet and profitability, but may limit its top-line growth potential. This is a strong small-cap company, but we want to see the company continue growing its sales. It continues to look pretty attractive here, although due to its size we would exercise some caution around position sizing. (5iResearch)
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