Here is my conservative look at the numbers. I am basing this on four key variables. These numbers are my opinion for 2017 based on a slow Q1 with an expected ramp up each quarter). After this, other factors come into play beyond "revenue", things such as international markets, moving off pinks, expanding the portfolio, etc....
Variable 1 - They are limited right now to 30k bottles per month (great if they are able to pump out more)
Variable 2 - Cost per bottle (I have seen prices above and below the suggested $19.99 and just rounded lower to $19)
Variable 3 - Net profit ratio of .186 (Hard to get this since they have direct sales, distributors and internet sales)
Variable 4 - Price to Earning ratio (P/E). I used 22 since this is fairly conservative for a growth company. If things REALLY explode, this number goes up (as well as the stock price). Double the P/E to 44 and now the stock PPS would be at .40. This number is hard to predict with the growing company.
** 30,000 Cases Per Month x 6 Bottle Per Case = 180,000 Bottles
* 180,000 Bottles Per Month x $19 Per Bottle = $3,420,000 Revenues Per Month
** $3,420,000 Revenues Per Month x 12 Months = $41,040,000 Revenues Per Year
** $41,040,000 Revenues Per Year x .186 Net Profit Margin = $7,633,440 Net Income
Formula to use to derive the Earnings Per Share (EPS)…
Net Income ÷ Outstanding Shares (OS) = EPS
$7,633,440 Net Income ÷ 814,790,609 shares = .0093 EPS
Formula to use to derive the ICNB Share Price Valuation…
EPS x P/E Ratio = ICNB Share Price Valuation
.0093 EPS x 22 P/E Ratio = .20 ICNB Share Price Valuation
My 2 cents on a conservative ICNB evaluation for for 2017.
Variable 1 - They are limited right now to 30k bottles per month (great if they are able to pump out more)
Variable 2 - Cost per bottle (I have seen prices above and below the suggested $19.99 and just rounded lower to $19)
Variable 3 - Net profit ratio of .186 (Hard to get this since they have direct sales, distributors and internet sales)
Variable 4 - Price to Earning ratio (P/E). I used 22 since this is fairly conservative for a growth company. If things REALLY explode, this number goes up (as well as the stock price). Double the P/E to 44 and now the stock PPS would be at .40. This number is hard to predict with the growing company.
** 30,000 Cases Per Month x 6 Bottle Per Case = 180,000 Bottles
* 180,000 Bottles Per Month x $19 Per Bottle = $3,420,000 Revenues Per Month
** $3,420,000 Revenues Per Month x 12 Months = $41,040,000 Revenues Per Year
** $41,040,000 Revenues Per Year x .186 Net Profit Margin = $7,633,440 Net Income
Formula to use to derive the Earnings Per Share (EPS)…
Net Income ÷ Outstanding Shares (OS) = EPS
$7,633,440 Net Income ÷ 814,790,609 shares = .0093 EPS
Formula to use to derive the ICNB Share Price Valuation…
EPS x P/E Ratio = ICNB Share Price Valuation
.0093 EPS x 22 P/E Ratio = .20 ICNB Share Price Valuation
My 2 cents on a conservative ICNB evaluation for for 2017.
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Iconic Brands, Inc. (ICNB) Stock Research Links
Words to remember "Investing is a Marathon not a Sprint"
