Q: Would like your review of results. Do you think this is a good entry point for a 5 year hold and what return can I reasonably expect over 5 years, Thanks John
5i Research Answer:
Sales rose 11% to $8.2M, but missed estimates of $8.8M. EPS rose 33% to 12c. Adjusted estimate was 17c but the company did not release its adjusted EPS figure. ROE rose 2 points to 19%. 400,000 shares were bought and cancelled in 2023. Canadian sales were a record with another product launch. Selling expenses were higher, however. RX still has $28M net cash, and 20% EPS growth is expected next year. The stock is not too expensive at 16X earnings, and the dividend is nice for a small cap. We would consider the results decent enough, and would put a target of $12 over five years.