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  5. WOLF: Hi Peter, Can I get your opinion on Grey Wolf's latest acquisition and your thoughts on the company, the stock and its valuation. [Grey Wolf Animal Health Corp.]
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Q: Hi Peter, Can I get your opinion on Grey Wolf's latest acquisition and your thoughts on the company, the stock and its valuation. Also is it a buy at this level. Can you also comment on ROE and debt.

Thanks
Asked by Frank on January 07, 2025
5i Research Answer:

As of Sept 30, 2024, cash was $7.1M and obligations including leases were $9.2M. 12-month cash flow was $0.9M. 2023 ROE was 2.47%. P/E is 33X. Due to its very small size we do not pay close attention to it. It did have a solid Q3 with 78% growth. The acquisition of the compounding pharmacy is quite big for the company at $22.5M. It is accretive to all metrics but will add debt and dilution through the share part of the deal. The deal has closed, and thus debt has increased by nearly $19M from the Sept. 30 numbers. It is an aggressive move, and we will need to see that it performs as expected. 

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