Jamieson Wellness (TSX:JWEL) manufactures, distributes, and markets branded natural health products. The supplements and vitamins market posted huge growth on the domestic and international front over the past decade.
An aging population in the developed world an increasingly health-conscious citizens in the developing world are contributing to attractive forecasts as we look ahead to the next decade.
Shares of Jamieson have climbed 9.1% over the past month as of close on August 20. The stock received a bump after the company released its second quarter 2019 results on August 8. Revenue rose 8.6% year-over-year to $80.6 million.
Investors got some exciting news as Jamieson announced that it had started building distribution in the domestic retail channels in China, a massive market that Jamieson is well-positioned to penetrate.
Jamieson’s international business achieved 10.2% revenue growth over the prior year in Q2 2019. This was powered by strong demand in Europe and the Middle East. Adjusted EBITDA climbed 15.8% year-over-year to $16.4 million and adjusted income rose 14.4% to $7.9 million.
The company reaffirmed its outlook for fiscal 2019, which includes revenue growth between 5% and 9%.
The stock still offers a quarterly dividend of $0.09 per share, which represents a modest 1.6% yield. Investors are betting on long-term growth as Jamieson stock possesses a price-to-earnings ratio of 28.9.
Shares had an RSI of 62 as of close on August 20, putting Jamieson close to technically overbought territory.
I like Jamieson as a long-term bet, but it is a bit pricey in late August. I’m waiting for a better entry point before the summer comes to an end.
