Deep Value Nano Cap with +4% dividend yield

UG : United-Guardian

“United-Guardian, Inc. researches, develops, manufactures, and markets cosmetic ingredients, personal and health care products, pharmaceuticals, and specialty industrial products in the United States and internationally.”

Stable consistent high dividend yield currently trading at $14.45.The average FCF margins from 2006 to the TTM was consistent and outstanding at FCF/Sales of 26.34%.Share count was also stable during this period. The stock is near its 52 week high but still yields 4.50%.

Enterprise Value = 56.85 Million

Market Cap = 66.41 Million

FCF/EV = 6.40%


Anonymous said...

United-Guardian is no doubt a great little company. The past ten years have been solid and it maintains a very conservative balance sheet.

Great find; thanks for posting!

My estimate is that this company can reliably produce Free Cash Flows between 2M and 3M.

If the past 10 years is any indication for the next 10 years, then growth should be moderate.

The combination of a solid operating history, conservative balance sheet, and modest growth prospects make this an idea to keep tracking.

Considering all of the aforementioned facts, I would estimate this company to be worth around $35M to $45M ($7.60 to $9.78 per share).

Anonymous said...

Nice. But is it CHEAP? Sure doesn't look like it.