Good growth, clean balance sheet, new products coming on stream, efficient capital allocator. Seems like a 5i type of investment. Would you consider it for one of your model portfolios?
EPS of $0.15 beat estimates of $0.08 and revenues of $7.73M missed estimates of $7.9M. Sales grew 19% year-over-year, and its ROE for the last twelve-month period was 21% compared to the prior year period of 15%. It repurchased 156,200 shares in the quarter, and management noted that its Canadian pharmaceutical brands contributed to the positive growth in the quarter. It pays a decent yield of 2.0%, analysts expect 11% growth next year, and it trades at an OK valuation of 16X forward earnings. Its free cash flow is rising, and it uses almost all of it to repurchase shares and pay dividends. We think it looks interesting, but it is a very small ($107M market cap) stock with low levels of liquidity (19K shares traded daily on average), which has been part of a deterrent for us in including it in one of the model portfolios.