Profit margin – Kat Masters http://katmasters.com/ Tue, 22 Nov 2022 14:42:50 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://katmasters.com/wp-content/uploads/2021/06/icon-2021-06-25T173039.237-150x150.png Profit margin – Kat Masters http://katmasters.com/ 32 32 Can B Corp. Announces 51% Growth to Third Quarter 2022 Revenue of $2.9 Million, Highest Quarterly Revenue in Company History https://katmasters.com/can-b-corp-announces-51-growth-to-third-quarter-2022-revenue-of-2-9-million-highest-quarterly-revenue-in-company-history/ Tue, 22 Nov 2022 14:30:00 +0000 https://katmasters.com/can-b-corp-announces-51-growth-to-third-quarter-2022-revenue-of-2-9-million-highest-quarterly-revenue-in-company-history/ Can B Corp Led by significant increase in Duramed, Music City Botanical and Botanical Biotech brands Adjusted EBITDA loss down 25% to $1.5 million HICKSVILLE, NY, Nov. 22, 2022 (GLOBE NEWSWIRE) — via NewMediaWire – Can B Corp. (OTCQB: CANB) (“Can B” or the “Company”), a health and wellness company specializing in the development, production, […]]]>

Can B Corp

Led by significant increase in Duramed, Music City Botanical and Botanical Biotech brands

Adjusted EBITDA loss down 25% to $1.5 million

HICKSVILLE, NY, Nov. 22, 2022 (GLOBE NEWSWIRE) — via NewMediaWire – Can B Corp. (OTCQB: CANB) (“Can B” or the “Company”), a health and wellness company specializing in the development, production, and sale of hemp-derived cannabinoid products, announced today today the Company’s financial results for the third quarter and nine months ended September 30, 2022.

Key financial highlights for the third quarter of 2022

  • Revenue increased 51% to $2.9 million

  • Gross profit increased 36% to $1.9 million

  • Gross margin decreased to 64.3%

  • Adjusted EBITDA loss decreased 25% to $1.5 million

  • Accounts receivable at $7.0 million

  • Inventory at $2.3 million

  • Total assets at $16.7 million

  • Total equity at $4.5 million

Key Financial Highlights for the 9 Months Ended September 30, 2022

  • Revenue increased 130% to $6.0 million

  • Gross profit increased 59% to $2.8 million

  • Gross margin decreased to 46.0%

  • Adjusted EBITDA loss decreased 15% to $4.5 million

Key business highlights for the third quarter of 2022

  • Signed an agreement to manufacture and distribute superfood products with Forever Brands and Brooke Burke through BB Body, Inc.

  • Colorado Hemp Division Consolidated Operations

Management commentary

Marco Alfonsi, President and CEO of Can B, said: “We are delighted with our excellent quarterly results, having achieved the highest quarterly turnover in the history of our company. We generated $2.9 million in quarterly revenue while reducing our cash burn, as evidenced by the 25% decline in adjusted EBITDA. Our team has made great strides over the past several months integrating and scaling up the various operations we have strategically acquired over the past year to complement our vertical processing capabilities.

Alfonsi concluded: “We had a vision and were confident in the assets we were assembling over the past year. It’s great to see all the hard work paying off and translating into accelerated revenue growth and reduced cash flow losses. With our proven manufacturing and distribution capabilities, we are currently executing major strategic agreements, such as the recently announced agreement with Brooke Burke. Since the end of the quarter, we have started taking orders and shipping Superfood products with Brooke Burke and we are very excited about the demand and early results. Can B is now a full-service hemp-derived cannabinoid company that can facilitate service to large box retailers, vape and smoke shops, and strategic partners.

Agreement to manufacture and distribute Superfoods products with Forever Brands and Brooke Burke through BB Body, Inc.

The initial 3-year global agreement covers the sale, manufacture and distribution of superfoods and related nutritional products. Can B Imbibe Wellness Solutions Affiliates is the exclusive direct seller of the products and Pure Health Products is a manufacturer and distributor of the products. The products will be marketed under the trademarks and trademark Longevity by Brooke Burke. The partnership includes a superfood powder drink mix, an all-natural metabolic energy drink, and other products that may be mutually agreed upon from time to time.

Brooke Burke, American television personality, fitness personality, author, actress and entrepreneur, will market, endorse and promote the products as an online monthly subscription model under her company BB Body, Inc.

After the end of the third quarter, the product was launched.

Financial results for the three months ended September 30, 2021:

  • Revenue: For the three months ended September 30, 2022, revenue was $2.9 million, an increase of $1.0 million, or 51%, compared to $1.9 million for the three months ended September 30, 2021. The increase is due to the “gradual reduction of Covid-19 pandemic-related restrictions surrounding elective surgeries, allowing for an increase in the use of Duramed product lines and related Company ultrasound devices to the recovery of patients. Additionally, due to asset acquisitions in 2021, the Company’s Music City Botanical and Botanical Biotech brands saw an increase in sales over 2021 of approximately $1.5 million.

  • Gross profit: For the three months ended September 30, 2022, gross profit was $1.9 million, an increase of $0.5 million, or 36%, compared to $1.4 million for the quarter ended on September 30, 2021. The resulting gross margin was 64.3%, compared to 71.7% for the same quarter last year.

  • Total operating expenses: For the three months ended September 30, 2022, total operating expenses were $8.7 million, an increase of $4.8 million, or 223%, compared to $3.9 million for the same quarter last year. The increase in operating expenses is primarily due to non-cash stock-based compensation expense of $4.5 million and $0.8 million of other one-time and non-recurring items.

  • Operating loss : For the three months ended September 30, 2022, operating loss was $6.8 million, an increase of $4.3 million, or 271%, compared to an operating loss of 2. $5 million for the same quarter last year.

  • Adjusted EBITDA loss: For the three months ended September 30, 2022, Adjusted EBITDA loss was $1.5 million, a decrease of $0.5 million, or 25%, compared to an Adjusted EBITDA loss of $2.0 million for the same period last year, after deducting non-cash items and one-hour expenses.

  • Net loss: For the three months ended September 30, 2022, net loss was $6.9 million, or ($1.98) per share, compared to net loss of $3.2 million, or net loss of ($1.61) per share, for the quarter ended September. 30, 2021.

Financial results for the nine months ended September 30, 2022:

  • Revenue: For the nine-month period ended September 30, 2022, revenues were $6.0 million, an increase of $3.4 million, or 130%, compared to $2.6 million for the same period last year. The increase is due to the end of the Covid-19 pandemic-related restrictions surrounding elective surgeries, allowing for increased use of the Company’s Duramed product lines and ultrasound devices associated with patient recovery. Additionally, due to asset acquisitions in 2021, the Company’s Music City Botanical and Botanical Biotech brands saw an increase in sales over 2021 of approximately $2.2 million.

  • Gross profit: For the nine months ended September 30, 2022, gross margin was $2.8 million, an increase of $1.0 million, or 59%, compared to $1.7 million for the same period last year. The resulting gross margin was 46%, compared to 66% for the same period last year.

  • Total operating expenses: For the nine months ended September 30, 2022, total operating expenses were $14.3 million, an increase of $5.7 million, or 243%, compared to $8.6 million for the same period last year. The increase in operating expenses is mainly due to the non-cash stock-based compensation expense of $5.1 million.

  • Operating loss : For the nine months ended September 30, 2022, operating loss was $11.6 million, an increase of $4.7 million, compared to an operating loss of $6.9 million for the same period last year.

  • Adjusted EBITDA loss: For the nine months ended September 30, 2022, Adjusted EBITDA loss was $4.5 million, a decrease of $0.8 million, or 15%, compared to an Adjusted EBITDA loss of $5.3 million for the same period last year, net of non-cash items and one-hour expenses.

  • Net loss: For the nine months ended September 30, 2022, net loss was $12.0 million, or ($3.56) per share, compared to $8.2 million, or ($5.39 ) per share, for the same period last year.

About Can B Corp.

Can B Corp. (OTCQB: CANB) is a health and wellness company that provides the highest quality hemp-derived cannabinoid products, including under its own brands Canbiola, Seven Chakras, NuWellness, Pure Leaf Oil and Duramed. Can B uses multi-channel distribution to reach consumers, including medical institutions, doctor’s offices, retailers, online and face-to-face. Can B Corp. operates R&D and production facilities in Lacey, WA and Florida. To learn more about Can B Corp. and our full line of high quality products, please visit: Canbiola.com and www.CanBCorp.com, follow Can B Corp on Instagram and Facebook or visit any of the over 1,000 outlets that carry Can B Corp products .

For more information on Can B Corp., please visit: CanBCorp.com

Twitter @CanBCCorp

Instagram @canbcorp

Facebook @ Can B Corp

Youtube

Forward-looking statements

The forward-looking statements and risks and uncertainties discussed in this release contain forward-looking statements. The words “anticipate”, “believe”, “estimate”, “could”, “intend”, “expect” and similar expressions identify such forward-looking statements. Expected and actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. Forward-looking statements are subject to a number of risks and uncertainties, including, but not limited to, risks and uncertainties associated with, among other things, the impact of economic, competitive and other factors affecting our operations, our markets, our products and our performance. . The matters discussed herein should in no way be construed in any way, form or manner as to our future financial condition or stock price. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of latest information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unforeseen events.

Investors and media:
IR@canbiola.com
(917) 658-7878

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CHF 0.04 (compared to a loss of CHF 0.024 in Q3 2021) https://katmasters.com/chf-0-04-compared-to-a-loss-of-chf-0-024-in-q3-2021/ Sat, 19 Nov 2022 06:12:03 +0000 https://katmasters.com/chf-0-04-compared-to-a-loss-of-chf-0-024-in-q3-2021/ Orascom Development Holding (VTX:ODHN) Third Quarter 2022 Results Main financial results Turnover: 188.9 million Swiss francs (up 30% compared to the 3rd quarter of 2021). Net profit: CHF 1.74 million (compared to a loss of CHF 974,400 in the 3rd quarter of 2021). Profit margin: 0.9% (up from net loss in Q3 2021). The shift […]]]>

Orascom Development Holding (VTX:ODHN) Third Quarter 2022 Results

Main financial results

  • Turnover: 188.9 million Swiss francs (up 30% compared to the 3rd quarter of 2021).

  • Net profit: CHF 1.74 million (compared to a loss of CHF 974,400 in the 3rd quarter of 2021).

  • Profit margin: 0.9% (up from net loss in Q3 2021). The shift to profitability was driven by higher revenues.

  • EPS: CHF 0.04 (compared to a loss of CHF 0.024 in Q3 2021).

earnings-and-revenue-growth

All figures shown in the table above are for the 12 month period (TTM)

Overview of the results of Orascom Development Holding

Going forward, revenue is expected to grow by an average of 11% per year over the next 3 years, compared to a growth forecast of 10% for the hospitality industry in Europe.

Market performance in Swiss.

The company’s shares rose 1.8% from a week ago.

Risk analysis

It should be noted, however, that we found 2 warning signs for Orascom Development Holding (1 makes us a little uncomfortable!) which you must take into account.

Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Singapore Government Indian Stock Portfolio: 6 Stocks Gain Over 40% in 2022 https://katmasters.com/singapore-government-indian-stock-portfolio-6-stocks-gain-over-40-in-2022/ Sat, 12 Nov 2022 05:40:51 +0000 https://katmasters.com/singapore-government-indian-stock-portfolio-6-stocks-gain-over-40-in-2022/ Singapore Government Indian Stock Portfolio: 6 Stocks Gain Over 40% in 2022 – GoS Indian Stock Portfolio | The Economic TimesNov 12, 2022, 10:46 AM IST1/7GoS Indian Equity PortfolioThe Government of Singapore (GoS) is one of the wealthy investors in Indian equities under the umbrella of foreign institutional investors. The GoS publicly holds 46 shares […]]]>

Singapore Government Indian Stock Portfolio: 6 Stocks Gain Over 40% in 2022 – GoS Indian Stock Portfolio | The Economic TimesNov 12, 2022, 10:46 AM IST1/7GoS Indian Equity PortfolioThe Government of Singapore (GoS) is one of the wealthy investors in Indian equities under the umbrella of foreign institutional investors. The GoS publicly holds 46 shares worth around Rs 1,31,000 crore as of November 10, 2022, according to data from Trendlyne. Please note that this is not an exhaustive estimate of his portfolio, but only of the companies in which he holds more than 1% of the capital. ET Markets found that six stocks on the holding list have so far jumped more than 40% in 2022 (Data source: ACE Equity). All of these 6 stocks still look pretty strong on SWOT analysis. Take a look at the main highlights of these stocks on the SWOT analysis, according to Trendlyne.com.
Getty Images2/7The Phoenix Mills | Price return in 2022 so far: 55% | CMP: Rs 1533 The net worth of his stake in the company stood at Rs 1,181 crore as of November 10, 2022.
(Considered the month of September holding the number of shares with the stock price value as of November 10, 2022)
Company with high EPS growth TTM Strong annual EPS growth Quarterly net profit growth with increased profit margin (Annual) Debt reducing company Increase in revenue every quarter for the last 4 quarters Book value per share Improvement over the past Last 2 years Mahindra | Return of prices in 2022: 55% | CMP: Rs 1298The net worth of his stake in the company stood at Rs 2358 crore as of November 10, 2022.
Strong annual growth in EPSGrowth in quarterly net profit with increase in profit margin (Annual)Increased revenue every quarter for the last 4 quartersCompany able to generate net cashAnnual net profit improving over the last 2 yearsBook value per share Improving in the last 2 yearsFIIs/REITs or institutions increasing their shareholdingETMarkets.com4/7Kalyan Jewelers India | Return of prices in 2022: 50% | CMP: Rs 103 The net worth of his stake in the company stood at Rs 156 crore as of November 10, 2022.
Good Quarterly Growth in Recent EarningsGrowth in Quarterly Net Profit with Increase in Profit Margin (YoY)Book Value per Share Improvement over Last 2 YearsCompany with Zero Promoter PledgeFII/REITs or Institutions Increasing ShareholdingNearly 52 Weeks HighStrong Momentum: Top Price short, medium and long-term moving averagesETMarkets.com5/7Triveni Turbine | Return of prices in 2022: 48% | CMP: Rs 280 The net worth of his stake in the company stood at Rs 120 crore as of November 10, 2022.
Net profit growth with increase in profit margin (QoQ) Low leverage company Revenue increase every quarter for the last 4 quarters Profit increase every quarter for the last 2 quarters .com6/7Eicher Engines | Return of prices in 2022: 43% | CMP: Rs 3702 The net worth of his stake in the company stood at Rs 1298 crore as of November 10, 2022.
Net Profit Growth with Profit Margin Increase (QoQ) Net Profit Quarterly Growth with Profit Margin Increase (YoY) Low Leverage Company Revenue increase every quarter for last 4 quarters Profit increase every quarter for last 4 quartersCompany with Zero Promoter PledgeFII/REIT or Institutions Increase ShareholdingNear 52 Week HighETMarkets.com7/7MPS | Return of prices in 2022: 41% | CMP: Rs 885 The net worth of his stake in the company stood at Rs 30 crore as of November 10, 2022.
Net profit growth with increase in profit margin (QoQ) Quarterly net profit growth with increase in profit margin (YoY) Debt free business Revenue growth every quarter for the last 2 quarters Strong cash generation capability from main activityBook value per share Improved over the last 2 yearsCompany with Zero Promoter PledgeAlmost 52 weeks HighETMarkets.comTo see your saved stories, click on the link highlighted in bold

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Profit inflation and a basket full of holes https://katmasters.com/profit-inflation-and-a-basket-full-of-holes/ Wed, 09 Nov 2022 10:05:37 +0000 https://katmasters.com/profit-inflation-and-a-basket-full-of-holes/ A woman buys fish at the central fish market in Athens. According to the Labor Institute of the General Confederation of Greek Workers (INE/GSEE), since April this year, the minimum wage has lost 19% of its purchasing power. [AP] There is indeed an inflation problem in the United States and Europe, and its reappearance after […]]]>

A woman buys fish at the central fish market in Athens. According to the Labor Institute of the General Confederation of Greek Workers (INE/GSEE), since April this year, the minimum wage has lost 19% of its purchasing power. [AP]

There is indeed an inflation problem in the United States and Europe, and its reappearance after decades is a global phenomenon. No country, no economy, no one is immune.

However, inflation is not a neutral phenomenon. As long as consumption holds up, businesses pass on increased costs to their customers. Even if they keep the same rate of profit, they increase their profits in absolute numbers, since the same rate of profit is calculated on increased base prices. In addition, many companies are taking advantage of the situation to increase their profit margins. Real profits are rising, while real wages are falling, UBS Global Wealth Management chief economist Paul Donovan recently wrote in the Financial Times, referring to the US economy. The problem is called earnings inflation.

According to the Labor Institute of the General Confederation of Greek Workers (INE/GSEE), since April this year, the minimum wage has lost 19% of its purchasing power. In 2022, when inflation is hovering around 10%, the losses are greater for the lowest incomes, reaching 40% for households whose monthly income does not exceed 750 euros. Also note this: in the first half of this year, Greek natural gas suppliers recorded the second highest profit margin in Europe. There are profits, and there are huge profits.

Moreover, the fact that inflation is currently a global problem does not explain why the same basic consumer goods and necessities are much more expensive in Greece than in Germany or in other European and Mediterranean countries, even though some of these countries have higher wages, higher rents and other factors that affect costs. This does not explain why the same supermarket chains sell substantially cheaper goods in their Munich stores than in their Athens stores. The answer is that competition does not work in Greece. Instead, we have the “buddy market”, where easy and big money is made.

These systems are untouched by Greek governments – certainly not the current one – even though the tsunami of price hikes, if left unchecked, will turn into a kind of plunder at the expense of people’s incomes. There is no magic solution. But if a government wanted to put an end to this tsunami, it would act with responsibility, seriousness and professionalism – and that would certainly not work against the independent watchdog, the Hellenic Competition Commission. And after obtaining from the competent bodies a real picture of the economic details of each sector (so as not to be in the dark), he would invite all the players concerned – from distribution chains to importers, producers and manufacturers – and impose an agreement and broad cooperation. to lower prices.

Nothing has been done in this direction. Instead of a real fight against inflation, there is the impression of a fight, with the launch of the so-called “household basket” – a set of products in supermarkets protected against inflation. It is a “basket” full of holes. The price of products entering it will increase modestly. But if this price should increase excessively, then it will be removed from the basket – with system and order.

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Small Cap Stocks: These 5 small cap stocks with high ROE and high profit margin in niches are rated “Strong Buy” and “Buy” by analysts https://katmasters.com/small-cap-stocks-these-5-small-cap-stocks-with-high-roe-and-high-profit-margin-in-niches-are-rated-strong-buy-and-buy-by-analysts/ Sat, 05 Nov 2022 07:44:00 +0000 https://katmasters.com/small-cap-stocks-these-5-small-cap-stocks-with-high-roe-and-high-profit-margin-in-niches-are-rated-strong-buy-and-buy-by-analysts/ Synopsis Small-cap companies may seem like risky bets, but having the right financial and other screens in place can lead to stocks with wealth-building potential. ET screener powered by Refinitiv’s Stock Report Plus lists stocks with strong upside potential over the next 12 months, with an average recommendation rating of “buy” or “strong buy.” Small-cap […]]]>

Synopsis

Small-cap companies may seem like risky bets, but having the right financial and other screens in place can lead to stocks with wealth-building potential. ET screener powered by Refinitiv’s Stock Report Plus lists stocks with strong upside potential over the next 12 months, with an average recommendation rating of “buy” or “strong buy.”

Small-cap companies that operate in niche products and services or have brands with high market share tend to attract market attention. In order to search for such companies, different combinations of financial ratios were used, with high return on equity being one of the main filters. Along with this, high net profit margins (NPMs) were used to find companies for which analyst ratings were either a “Strong Buy” or a “Buy”. A business should also have

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NetEase: A stable business even in difficult times (NASDAQ: NTES) https://katmasters.com/netease-a-stable-business-even-in-difficult-times-nasdaq-ntes/ Sat, 29 Oct 2022 10:11:00 +0000 https://katmasters.com/netease-a-stable-business-even-in-difficult-times-nasdaq-ntes/ Richard Drury/DigitalVision via Getty Images Introduction Despite operating in a challenging environment where several of the biggest companies, including Tencent (OTCPK:TCEHY), Alibaba (BABA) and Ping An Insurance (OTCPK:PNGAY) are posting steep declines in EPS numbers, NetEase’s (NASDAQ:NTES) the fundamentals remained stable. Given that the stock is down due to political concerns and not due to […]]]>

Richard Drury/DigitalVision via Getty Images

Introduction

Despite operating in a challenging environment where several of the biggest companies, including Tencent (OTCPK:TCEHY), Alibaba (BABA) and Ping An Insurance (OTCPK:PNGAY) are posting steep declines in EPS numbers, NetEase’s (NASDAQ:NTES) the fundamentals remained stable. Given that the stock is down due to political concerns and not due to weak earnings or future prospects, I think there is value to be found in NetEase.

NetEase is a Chinese company that provides online services centered on content, communication and commerce. The company is a developer and operator of several online PC and mobile games, messaging and advertising services. NetEase has licensing deals with major companies, including Mojang and Blizzard, to bring some of their respective titles to the Chinese market.

Fundamentals

NetEase has grown its revenue at a rapid pace, with only a few quarters of decline. Growth has averaged 30% per year since 2010.

As the company grew, growth eventually fell into double digits, which is still a respectable growth rate considering the size of the company.

The growth was largely the result of new games being released while existing games continued to grow. As games matured and more revenue was needed to move the needle, a slowdown in revenue growth was to be expected.

Analysts expect revenue growth to continue next year.

NTES Quarterly Revenue

Macrotrends.com

The profit margin shows a great history of profitability, with not a single year of negative profits. However, the margin decreased after the explosive increase in revenue in 2015, which was due to new games and an ongoing licensing agreement.

It has since stabilized at ~17%.

NTES net profit margin

Macrotrends.com

Rapid revenue growth combined with a declining but profitable net profit margin led to many consecutive years of strong net profit growth.

Net income growth has averaged an annual growth rate of approximately 21% from 2010 to 2022. The growth is very impressive, especially considering that it was achieved without diluting shareholders. The number of shares outstanding has barely increased, so EPS has also increased by around 20% per year.

Net result of NTES

Macrotrends.com

Capital allocation

As shown in the image below, NetEase has reached approx. ~25% return on equity per year from 2010 to 2017. The return is very impressive, given that almost all profits were reinvested. Only a small portion of profits was paid out as dividends from 2013, along with occasional minor share buybacks to compensate for dilution.

Return on equity now appears to have stabilized at ~17%. Given that the company spends around 25% of its earnings on dividends and manages to keep reinvesting 17% in equity, equity and therefore earnings should grow by around 12.75% per year at the future.

The main finding being that the majority of earnings are reinvested, which I think is prudent given the high double-digit reinvestment rates management is able to achieve.

I find it comforting that it seems to have stabilized and even increased in recent months. The large capacity for reinvestment underlines the solidity of the company and its moat.

Return on Equity and Equity of NTES

Macrotrends.com

Evaluation

As shown in the image below, the average annual growth rate from 2010 to 2022 was 19.74%. We can also see that growth has slowed in recent years. This was to be expected given the decline in return on equity.

Annual EPS growth from 2010 to 2017 was 25.05%. In accordance with their ROE during this period. Given that ROE has been around 17% from 2017 to 2022 and the dividend payout ratio is around 25% without significant share buybacks, a reasonable estimate of future annual EPS growth would be about 12.75%.

The estimated growth is in line with analysts’ expectations for the next 2 years, which also estimate low double digits.

The company has experienced above-average growth over the past decade and has therefore been rewarded with an above-average earnings multiple. Growth averaged 19.74% per year and the average multiple was 18.75. A return to its average multiple would point to returns of around 48%. I think the company should be trading at a higher multiple of its current multiple of 12.9, but since growth of more than 15% per year doesn’t seem likely, I don’t think its average multiple offers more of a margin of security.

A return to a standard earnings multiple of 15, which would still indicate around 20% upside potential, seems more reasonable.

NTES stock chart with its 15 norm, growth and average multiples.

Fastgraphs.com

Stock chart

Quick disclaimer: Technical analysis on its own is not a good enough reason to buy a stock, but when combined with company fundamentals, it can significantly lower your target price range when buying.

NetEase shares are currently below its 50 moving average, which has been a strong support zone several times in the past. This is commonly seen with steadily growing companies, which NetEase would classify as. A return to its moving average of 50 would indicate a return of 40%. It would also bring the stock closer to its average multiple and slightly above the standard multiple of 15.

However, if the stock continues to decline, which current market weakness and political developments in China could be a catalyst, I would expect strong support at its 200 moving average. I consider it highly unlikely that such low valuations happen, but in this market, I guess anything is possible.

NTES stock chart with its 50 and 200 moving averages

Tradingview.com

Final Thoughts

There is no doubt that NetEase is a solid company. The company has shown strong fundamental growth for many years in a row and is not expected to stop anytime soon. Although reinvestment rates have declined in recent years, it still shows promising prospects for future growth. With a return on equity of 17% and a dividend payout ratio of around 25%, estimates of annual growth of around 12.7% are very reasonable.

With 12.7% annual growth in mind, the current valuation looks quite attractive. The company is trading well below its average earnings multiple. Although I think this is somewhat justified by slower earnings growth, at least a standard multiple of 15 should be granted going forward.

It is clear that while part of its low valuation is due to the political fear surrounding Chinese stocks, it is far from random that NetEase has experienced less volatility than other Chinese stocks. The company is expected to post only a slight decline in EPS this year, after experiencing a year of +30% growth.

Barring political unrest, the company should see double-digit growth while being valued at below-average earnings multiples. The stock chart is in line with earnings suggesting it might be a good idea to consider NetEase.

So I’m giving the company a “buy” rating.

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Potential Multibaggers: 3 Small Caps With “Highest” Profit Margins! https://katmasters.com/potential-multibaggers-3-small-caps-with-highest-profit-margins/ Sat, 22 Oct 2022 06:48:21 +0000 https://katmasters.com/potential-multibaggers-3-small-caps-with-highest-profit-margins/ When someone is looking for potential multi-baggers, their hunting ground is often the small cap space. These companies are relatively very small, which gives them the inherent advantage of growing exponentially compared to already large companies. However, it is difficult to screen out these high-quality small cap stocks because they have relatively little experience in […]]]>

When someone is looking for potential multi-baggers, their hunting ground is often the small cap space. These companies are relatively very small, which gives them the inherent advantage of growing exponentially compared to already large companies.

However, it is difficult to screen out these high-quality small cap stocks because they have relatively little experience in different market cycles, limited financial data, inexperienced management, etc. To make it easier for you, I’ve listed some of the highest quality small caps in their industry that are miles ahead of their peers.

The criteria for selecting these stocks is, firstly, to avoid any junk stock/penny stock or shell company, these stocks have been reduced from . The second check on the quality front is their FY22 profit margins. The three stocks discussed below recorded the highest PAT margins for fiscal year 22 of the 100 list.

Limited Central Depository Services

Central Depository Services India Ltd (NS:) is the first stock on the list. It is a registered custodian with a market capitalization of INR 12,567 crore and is one of only two such entities in India. This industry is a duopoly market which makes CDSL a no-brainer for investors who are optimistic about the growing participation of retail investors in the stock market over the next few years.

The company grew its net profit at an annual rate of 29.39% (last 5 years CAGR), which led to the highest ever net profit of INR 311.18 crore in FY22. It is one of the very few small cap stocks where FIIs have a stake as high as 15.76%. Net profit margin for FY22 was 51.36%, which is the highest of the 100 companies in the Smallcap 100 Index.

Limited Easy Trip Planners

Easy Trip Planners Ltd (NS:) is an India-based online travel agency that provides a full range of travel-related products and services for end-to-end travel solutions including air tickets, hotels and vacation packages. The company has a market capitalization of INR 8,499 crore and trades at a P/E of 80.26 which is a bit higher.

The higher valuations are also supported by strong earnings, with the company posting a net profit of INR 105.9 crore in FY22, which was just INR 4 lacs in FY18. Over the past 5 years, market share has also increased exponentially from 0.46% to 9.37% and profit margins for FY22 were recorded at 42.4%. As the Covid-19 pandemic appears to be over, increased travel would further help the company reach new heights.

UTI Asset Management Company Limited

UTI Asset Management Co Ltd (NS:) is a large INR 9,599 crore asset management company. It is also the holding company of UTI Venture Funds Management Company, which manages venture capital funds and UTIInternational Ltd, which markets offshore funds to overseas investors. The company also trades at a lucrative 2.78% dividend yield, which is rare to see in a small cap.

Speaking of financial performance, the company recorded a net revenue of INR 1,327.27 crore in FY22 out of which it managed to deliver a net profit of INR 534.29 crore, which gives him a profit margin of 40.25%. The FIIs hold a high stake of 29.28% in the company, which further boosts confidence in the company’s management and future prospects.

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Curaleaf Evaluation Approaching Legalization (CURLF) https://katmasters.com/curaleaf-evaluation-approaching-legalization-curlf/ Sat, 15 Oct 2022 06:21:00 +0000 https://katmasters.com/curaleaf-evaluation-approaching-legalization-curlf/ Darren415 Cannabis stocks briefly soared after President Biden declared his intention to pardon federal convictions related to cannabis possession and seek a factory rescheduling. Those gains have faded – giving investors another chance to buy cannabis stocks ahead of a potential a short-term catalyst takes place. Curafeuille (OTCPK: CURVE) released second-quarter results that reflected ongoing […]]]>

Darren415

Cannabis stocks briefly soared after President Biden declared his intention to pardon federal convictions related to cannabis possession and seek a factory rescheduling. Those gains have faded – giving investors another chance to buy cannabis stocks ahead of a potential a short-term catalyst takes place. Curafeuille (OTCPK: CURVE) released second-quarter results that reflected ongoing macroeconomic headwinds. The company has pulled some levers to generate higher margins and remains well positioned to benefit from future long-term growth. The stock trades at a noticeable premium to its peers due to its large footprint, although it is unclear whether this premium is warranted. Stock is cheap here nonetheless, and the company’s European footprint may help set it apart from other US carriers.

CURLF stock price

After peaking at around $17 per share in early 2021, CURLF has since fallen nearly 70% to date, giving up most of its gains following Biden’s announcements.

Curafeuille share price
Data by YCharts

I last covered CURLF in May, where I compared him to Canadian producer Tilray (TLRY). While the fundamentals face short-term headwinds, the stock continues to trade low relative to the long-term opportunity.

Is federal cannabis legalization coming in 2022?

On Thursday, October 6, President Biden announced that he was pardoning all previous federal cannabis possession offenses.

Tweet from President Joe Biden

Twitter

In addition, he also immediately called the attorney general to reschedule the plant. This sent cannabis stocks briefly higher although they have since given up most of those gains.

Legislative reform can have a huge impact on cannabis stock prices. In addition to the general increase in investment hype, decriminalization could allow institutional capital to enter the sector, leading to a long-awaited rise in stock prices. From a fundamental perspective, investors are hoping for a 280th tax resolution, forcing US cannabis companies to pay unusually high tax rates due to their inability to deduct normal operating expenses from income. taxable. Even if legislative reform stops before legalization, a lesser SAFE Banking reform plan would lower the cost of capital by allowing institutional investments to lend to the sector. Now that President Biden has officially signaled his intention to begin cannabis reform, the future is finally bright for an industry in desperate need of good news.

What is Curafeuille?

CURLF is a US-based cannabis operator with 136 retail outlets and 26 grow locations across 22 states.

footprint

August presentation

Last quarter, the company had a 75%/25% retail/wholesale split in its operations.

The US cannabis market is a high-growth sector that most investors may not be familiar with. Indeed, cannabis remains illegal at the federal level, preventing most investment institutions from investing in the sector – despite the enormous potential. Retail investors don’t face the same restrictive mandates, although they must confirm which brokerage firms allow the purchase of US cannabis stocks. The US legal market is expected to grow at a rate of 14% to reach $45 billion by 2026.

legal market projections

August presentation

Much of this growth will come from the ongoing legalization of cannabis at the state level. Multi-State Operators (“MSOs”) like CURLF continue to position themselves for such growth by licensing or acquiring operators prior to this legalization.

Unlike other US operators that have generally focused on domestic operations, CURLF has looked overseas in Europe through its previous acquisition of EMMAC. CURLF is optimistic that it will have a first-mover advantage in Europe when countries inevitably legalize cannabis.

European footprint

August presentation

Immediately after reporting its results, CURLF also announced that it had acquired a majority stake in Four 20 Pharma GmbH, a medical cannabis operator in Germany. Germany is expected to legalize adult-use sales soon, making the partnership a potential way for CURLF to gain a preliminary footprint in the country.

Key indicators of CURLF actions

Historically, CURLF has been considered one of the largest cannabis operators in the United States, one with the largest footprint and respectable but not the highest profit margins. This past quarter continued that trend, with revenue growing 8% sequentially and 8% year-over-year. Gross margin was 51.9%, a notable increase from the 49% it typically operated at. Gross margins increased due to the company focusing more on vertical integration and placing more emphasis on wholesale in higher margin states.

CURLF also showed some EBITDA margin expansion, delivering adjusted EBITDA margins of 25.5% in the quarter – up from the quarter of 23.3% sequentially, but down from at the level of 27% year-on-year.

The company generated $12 million of positive operating cash flow in the first half of this year. During the quarter, CURLF operated at break-even pretax operating income, but recorded $45.1 million in income taxes. U.S. cannabis operators are unable to deduct operating expenses from taxable income when calculating income tax, so income tax is effectively calculated based on gross profits (this is again due to the fact that cannabis is federally illegal).

CURLF ended the quarter with $187 million in cash versus $587 million in debt.

Looking ahead, CURLF achieved approximately $1.45 billion in revenue and $406 million in adjusted EBITDA for this year.

outlook

August presentation

On the conference call, CURLF hinted that this could be at the bottom of the guidance – I wouldn’t be surprised if the company ends up lacking guidance, given the multitude of failings in the industry. CURLF management also said on the conference call that it intends to convert financial reporting to US GAAP no later than the first quarter of next year. Currently, Verano (OTCQX:VRNOF), Trulieve (OTCQX:TCNNF) and Green Thumb Industries (OTCQX:GTBIF) of the “Big 5” already publish US GAAP financial statements (Cresco Labs (OTCQX:CRLBF) is the latest member of the Big 5).

Is the CURLF stock a buy, sell or hold?

At recent prices, CURLF is trading at a significant premium to its peers.

valuations

Cannabis Growth Portfolio

This premium is important on the basis of the price/sales ratio, and even more on the basis of the multiples of EBITDA. Based on 2023 estimates, CURLF trades at 3x sales and 11x EBITDA. These multiples are significantly higher than Tier 1 peers, as even Green Thumb trades at around 9.5x EBITDA. Yet CURLF’s valuation is at a sharp discount to the 15 to 18 times EBITDA multiple of alcohol companies such as Constellation Brands (STZ) and Boston Beer (SAM), even though US cannabis companies have much stronger growth prospects. While growth is expected to be lumpy in the near term due to heavy reliance on state-level legalization, the long-term thesis remains intact. It is inevitable that more states will continue to legalize cannabis for adult use sales as more people begin to appreciate the plant for its recreational and medical applications. There are two main risks to consider here. First, US cannabis operators face immense financial hardship due to strict regulations. I have already mentioned difficult taxation, but these operators also have limited access to capital markets, although this element has improved considerably in recent years in line with rapid growth rates. A trader-specific risk with CURLF is the potential for the management team to focus more on revenue growth without sufficient attention to long-term earnings per share. Their presentations and commentaries often showed admiration for their large footprint and revenue base – it remains to be seen whether the company can eventually increase its profit margins or will be burdened with an expensive footprint and not enough capital to support it. invest in it. . I still consider CURLF a strong buy due to the severe undervaluation, but I emphasize my preference for higher margin peers. That said, given the bright outlook sparked by Biden’s announcement, it may make sense to hold a diversified allocation to higher-quality operators in the sectors.

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PepsiCo stock jumps after beating earnings and revenue, outlook lifted https://katmasters.com/pepsico-stock-jumps-after-beating-earnings-and-revenue-outlook-lifted/ Wed, 12 Oct 2022 10:20:00 +0000 https://katmasters.com/pepsico-stock-jumps-after-beating-earnings-and-revenue-outlook-lifted/ Shares of PepsiCo Inc. rallied on Wednesday after the beverage and snacks giant reported third-quarter earnings and revenue that beat expectations and raised its full-year outlook as higher prices helped compensate for some low volumes. Net income for the quarter to Sept. 3 increased to $2.70 billion, or $1.95 per share, from $2.22 billion, or […]]]>

Shares of PepsiCo Inc. rallied on Wednesday after the beverage and snacks giant reported third-quarter earnings and revenue that beat expectations and raised its full-year outlook as higher prices helped compensate for some low volumes.

Net income for the quarter to Sept. 3 increased to $2.70 billion, or $1.95 per share, from $2.22 billion, or $1.60 per share in the same period a year ago. year.

Excluding one-time items, basic earnings per share of $1.97 beat the FactSet EPS consensus of $1.84.

Revenue rose 8.8% to $21.97 billion, well above the FactSet consensus of $20.84 billion. Unfavorable currency translation reduced revenue growth by 3 percentage points.

This marked the 15th consecutive quarter in which PepsiCo beat earnings expectations and the 20th consecutive quarter revenue projections were exceeded, according to FactSet data.

The stock exchange PEP,
+0.48%
climbed 2.6% in premarket trading.

Among the largest segments, PepsiCo Beverages North American revenue rose 3.6% to $6.64 billion, Frito-Lay North America jumped 19.6% to $5.56 billion, l Europe increased 0.9% to $3.65 billion and Latin America increased 19.9% ​​to $2.52 billion. Quaker Oats North America revenue increased 15.4% to $713 million.

Volume decreased by 1.5% in convenience foods and increased slightly by 3.0% in beverages. On an organic basis, which excludes the impact of acquisitions, divestitures and other structural changes, overall volume fell 1% while effective net prices increased 17%.

Cost of sales rose more than revenue growth, up 9.7% to $210.31 billion, while gross margin contracted to 53.1% from 53.5%.

Inventories rose 15.5% to $5.02 billion, after rising 21.6% in the second quarter and 9.5% in the first quarter.

Looking ahead, the company raised its full-year core EPS forecast to $6.73 from around $6.63. The FactSet 2022 EPS consensus was $6.69.

The company confirmed its intention to return $7.7 billion to shareholders this year, including $6.2 billion through the payment of dividends and $1.5 billion through share buybacks.

PepsiCo stock fell 6.4% year-to-date through Tuesday, while exchange-traded fund SPDR Consumer Staples Select Sector XLP,
+0.82%
fell 12.7% and the S&P 500 SPX index,
-0.65%
fell 24.7%.

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Aehr stock climbs 24% as earnings rise on growth in electric vehicle market https://katmasters.com/aehr-stock-climbs-24-as-earnings-rise-on-growth-in-electric-vehicle-market/ Sun, 09 Oct 2022 00:55:00 +0000 https://katmasters.com/aehr-stock-climbs-24-as-earnings-rise-on-growth-in-electric-vehicle-market/ Aehr test systems (NASDAQ:AEHR) The stock soared 23.9% on Friday, following the supplier of semiconductor test and reliability qualification equipment the previous afternoon issuing a strong report for its first quarter. of fiscal year 2023, which ended August 31, 2022. The market’s joy can be attributed to the quarter’s earnings easily beating Wall Street expectations […]]]>

Aehr test systems (NASDAQ:AEHR) The stock soared 23.9% on Friday, following the supplier of semiconductor test and reliability qualification equipment the previous afternoon issuing a strong report for its first quarter. of fiscal year 2023, which ended August 31, 2022.

The market’s joy can be attributed to the quarter’s earnings easily beating Wall Street expectations and earnings crushing analysts’ consensus estimate. Investors were also pleased that management reiterated its guidance for the full year and had positive things to say about the company’s long-term outlook.

Aehr’s robust growth is primarily driven by increased demand for silicon carbide semiconductors for electric vehicles (EVs), although the company is also seeing increased demand for its supply chain equipment data communications.

Image source: Getty Images.

Aehr Test Systems key figures

Metric T1 tax 2023 T1 fiscal 2022 To change
Revenue $10.7 million $5.6 million 89%
GAAP net income $589,000 $696,000 (15%)
Adjusted net income $1.3 million ($414,000) Reversed from positive to negative
Earnings per share (EPS) GAAP $0.02 $0.03 (33%)
Adjusted EPS $0.05 ($0.02) Reversed from positive to negative

Data source: Aehr Test Systems. GAAP = generally accepted accounting principles. T1 fiscal 2023 ended August 31.

Investors should focus on adjusted numbers, which exclude one-time items.

Wall Street was looking for adjusted EPS of $0.01 on revenue of $8.5 million. So Aehr accelerated both expectations.

The company’s billings were $19.1 million for the quarter. It ended the period with an order book of $19.5 million.

Aehr ended the quarter with cash and cash equivalents of $36.1 million, compared to $6.5 million at the end of the prior year period. Its indebtedness is relatively light.

What the CEO had to say

CEO Gayn Erickson’s statement in the earnings release was very lengthy. Here’s part of his statement that should give investors an idea of ​​how the company’s products fit into the electric vehicle supply chain.

“We are currently engaged or in discussion with nearly all existing and future silicon carbide suppliers regarding our unique, low-cost, multi-wafer level test and burn-in solution. … [It] allows our customers to break in every device more cost effectively than they could in any other form. … The major silicon carbide companies expect most EV traction inverters to move to multi-chip modules, and they told us they need to move to stress and break-in at the wafer level to eliminate inherent failures before putting devices into multi-chip modules to achieve their cost, performance and reliability goals for those modules. »

Annual orientations reiterated

For fiscal year 2023 (ending May 31), management reiterated its previously provided guidance for total revenue of $60-70 million, which would represent annual growth of 18%-38%. Management also said it expects a strong profit margin similar to last year. In the past fiscal year, the company’s adjusted profit margin (adjusted net income divided by revenue) was 23%.

Additionally, the company continues to expect bookings to grow faster than revenue in fiscal 2023 “as surging demand for silicon carbide [semiconductors] in electric vehicles is growing exponentially throughout the decade,” according to the press release.

Worth at least watching

Aehr Test Systems stock deserves a spot on growth investor watch lists. Unlike many companies involved in the electric vehicle supply chain, Aehr is profitable.

It’s a small-cap stock ($471 million market cap) and it still flies under the radar of many investors. But the company is increasingly getting discovered, thanks to its recent strong trading performance and stock price performance since mid-2021.

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Beth McKenna has no position in the stocks mentioned. The Motley Fool has no position in the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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