Can I get your thoughts on Grey Wolf Animal Health (WOLF). It looks like it is profitable and is interesting to me. It is a small cap. I would like to get your overall thoughts on the company and its operations.
Thanks
WOLF is tiny at a $28M market cap, but very cheap on valuation. It has not been listed too long (2021). It has mostly traded flat over the past two years. It has $8.0M in cash, a small debt position, and an overall healthy balance sheet. Sales have grown nicely over the years, it is profitable and generates positive free cash flow. The company focuses on identifying, in-licensing, acquiring, or developing innovative branded and generic products for commercialization in the veterinary channel in Canada. Their products include therapeutic foods, surgery post-op garments, and more. It trades at a cheap valuation of 3.9X earnings, 1.1X book, and 1.1X sales. We think it is interesting, but due to its size we find it hard to endorse, but otherwise it reads fairly well.