Q: Hello,
Would you be a buyer of NBLY at these levels for a 5-10 year hold. We are down 50% on our initial investment but I feel this company is just out of favour and fundamentals are solid.
I would appreciate your view
Thank you
Would you be a buyer of NBLY at these levels for a 5-10 year hold. We are down 50% on our initial investment but I feel this company is just out of favour and fundamentals are solid.
I would appreciate your view
Thank you
5i Research Answer:
NBLY pays a small yield of 1.4%, has shown excellent growth rates, and is nearing profitability. Its balance sheet has grown since IPO, part of its free cash flow goes to dividends and mostly to acquisitions. Forward sales and earnings estimates are strong, and it trades at an OK valuation of 23.4X forward earnings. Its fundamentals are solid, but it is not yet profitable, and we feel investors need to see it attain profitability. We would be comfortable holding on to this name, and we expect some level of stabilization in price if earnings and the macro environment improve.