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This summary was created by AI, based on 4 opinions in the last 12 months.

Neighbourly Pharmacy Inc (NBLY-T) is a relatively young public company, with strong growth rates and potential for future profitability. While the recent privatization 'flip flop' has raised skepticism among investors, the company's management likely sees long-term potential. The stock's valuation multiple is a bit high, but its fundamental base and strong balance sheet may be appreciated by investors in the long-term. Overall, there is potential for growth, but the recent negative momentum and the company's desire to go private have left a bad taste among shareholders.

Fair Value
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

The company has only been public for 30 months, so management is still on probation, at least publicly. The recent privatization 'flip flop' certainly docks them some points. And, having gone public at $17 and then (proposed) private at $18.50 doesn't make that much business sense to us. BUT...management likely sees the potential for the future moreso than investors, and we can't blame them for trying to take advantage of the low price in the market if prospects are so good. It leaves a bad taste, sure, but that's business. In a failed deal we would expect the stock to drop to the $14 range. The difference vs prior is due to the much improved market/rate backdrop. It will still have potential from there, certainly, but it is sometimes difficult for shareholders to support a management team that clearly 'wants to go private'. Thus, we would not expect a huge uptick in valuation multiples, but it could still do well with organic growth and acquisitions. 
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Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

We are not happy with the adjustment in price but we think it is more likely to close at the lower price now. If the deal was in jeopardy, we think it would have been cancelled today rather than seeing a price adjustment. We would consider it an OK arbitrage from here, but investors have a right to be even more skeptical now. Market conditions have significantly changed for the better since the deal was first announced, so the downside risk on no deal has likely decreased a little as well (from current levels, at least). 
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(A Top Pick Nov 07/22, Down 41%)

The small pharmacy market in Canada is fragmented. Despite record results, growth by acquisition stocks are out of favour now because of higher interest rate concerns over too much debt. However they can easily cover their interest payments. Since their IPO a couple of years ago revenues and profits have more than doubled. It has a great runway for growth with improving margins and free cash flow and he is adding to his position. It is at an all time low valuation at 9X EBITDA.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

NBLY has not been a public company for very long (IPO'd in mid-2021), but its growth rates are strong, and while it is not yet profitable, it is on the cusp of becoming profitable. Its forward P/E is now fairly high at 31.3X, but its price to book is 1.2X and its forward sales multiple is cheap at 0.8X. It has a ~5.7% free cash flow yield and its balance sheet is strong. With a net profit margin of ~(2%), if sales growth continues at a fast pace and it becomes profitable, we believe that its strong fundamental base can begin to be appreciated by investors. We do not like the negative momentum recently, but we believe it has a lot to offer and it is now nearing its book value. In a rising interest rate environment, unprofitable names are still not investors' number one preference, but we expect NBLY's high growth rates to be a tailwind over the long-term. 
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He added to it recently at about $20. It is consolidating the pharmaceutical business in rural areas. It also helps boost front store sales. The scope of work done by pharmacists is increasing and therefore providing good growth opportunities.
It is the third largest pharmacy chain in Canada. Is mostly in the rural communities and has a strategy to consolidate the fragmented industry in these areas and grow the top line. It is both a defensive and a growth stock. It has new revenue sources since pharrmacies can prescribe more medications now as well as offer more services. After its IPO 18 months ago, it soared then fell back to the low $20's, close to its IPO price. Had very good results a few weeks ago. It has doubled its revenue to $830 and EBITA to $100. Has good free cash flow and increased margins. There has been significant insider buying in the past few months. A safe way to play the health care system. Buy 6, Hold 3, Sell 0 (Analysts’ price target is $29.56)
Small cap, but it's grown. Fantastic opportunity to consolidate rural drugstores in the Prairies. Growth by acquisition. Margins are incredibly good. Poised to outperform. Defensive, and pharmacies are providing more and more services. Yield is 0.70%. (Analysts’ price target is $37.83)

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. There is no news that would change fundamentals. It is trading at 48x earnings, so it is expensive and the market is not liking high valuation names right now. Would not buy on the negative momentum. Wait for confirmation of an uptrend before considering. Unlock Premium - Try 5i Free


Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The revenues were short of estimates but the additional IPO cost is not surprising. New pharmacies are contributing to 55% revenue gains. The stock remains above IPO prices. Unlock Premium - Try 5i Free

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Neighbourly Pharmacy Inc(NBLY-T) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 2

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 3

Stockchase rating for Neighbourly Pharmacy Inc is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Neighbourly Pharmacy Inc(NBLY-T) Frequently Asked Questions

What is Neighbourly Pharmacy Inc stock symbol?

Neighbourly Pharmacy Inc is a Canadian stock, trading under the symbol NBLY-T on the Toronto Stock Exchange (NBLY-CT). It is usually referred to as TSX:NBLY or NBLY-T

Is Neighbourly Pharmacy Inc a buy or a sell?

In the last year, 3 stock analysts published opinions about NBLY-T. 2 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Neighbourly Pharmacy Inc.

Is Neighbourly Pharmacy Inc a good investment or a top pick?

Neighbourly Pharmacy Inc was recommended as a Top Pick by on . Read the latest stock experts ratings for Neighbourly Pharmacy Inc.

Why is Neighbourly Pharmacy Inc stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Neighbourly Pharmacy Inc worth watching?

3 stock analysts on Stockchase covered Neighbourly Pharmacy Inc In the last year. It is a trending stock that is worth watching.

What is Neighbourly Pharmacy Inc stock price?

On 2024-03-21, Neighbourly Pharmacy Inc (NBLY-T) stock closed at a price of $18.6.