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Franchise Group Inc, known by the ticker symbol FRG,  is a small-cap specialty retailer, operating in the consumer cyclical business sector. This is my first report on Franchise Group Inc (FRG)  for this Viital portfolio or any of my previous six portfolios.

Franchise Group, Inc. owns and operates franchised and franchisable businesses. It operates through six segments: Vitamin Shoppe, Pet Supplies Plus, Badcock, American Freight, Buddy's, and Sylvan. 

The Vitamin Shoppe segment operates as an omnichannel specialty retailer of vitamins, minerals, herbs, specialty supplements, sports nutrition, and other health and wellness products under the BodyTech, True Athlete, plnt, The Vitamin Shoppe, ProBioCare, Fitfactor Weight Management System, and Vthrive The Vitamin Shoppe brands. 

The Pet Supplies Plus segment operates as an omnichannel retail chain and franchisor of pet supplies and services that includes premium brands, proprietary private labels, and specialty products, as well as offers grooming, pet wash, and other services. 

The Badcock segment operates as a specialty retailer of furniture, appliances, bedding, electronics, home office equipment, accessories, and seasonal items in a showroom format; and offers multiple and flexible payment solutions and credit options through its consumer financing services. 

The American Freight segment operates a retail chain the provides in-store and online access to furniture, mattresses, new and out-of-box home appliances, and home accessories; and serves as a liquidation channel for appliance vendors. 

The Buddy's segment operates as a specialty retailer of consumer electronic, residential furniture, appliances, and household accessories through rent-to-own agreements. 

The Sylvan segment establishes and grows as a franchisor of supplemental education for Pre-K-12 students and families in the United States and Canada. 

The company was formerly known as Liberty Tax, Inc., and changed its name to Franchise Group, Inc. in September 2019. Franchise Group, Inc. was incorporated in 2010 and is headquartered in Delaware, Ohio.

Three key data points gauge any dividend equity or fund such as Franchise Group Inc (FRG):

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money. 

FRG Price

Franchise's price per share was $42.11 as of yesterday's market close. One year ago its price was $33.85. Therefore, Franchise's share price rose $8.16 or about 24% in the past year. 

If Franchise's stock trades in the range of $32.00 to $56.00 this next year, its recent $42.11 share price might rise by $7.89 to reach $50.00 by March 24, 2023. My $7.89 estimate is  $14.17 under the median of 1yr target price estimates from 6 analysts covering FRG for various brokerage firms.

FRG Dividends 

Franchise's most recently declared quarterly dividend of $0.625 per share is payable April 15th, to shareholders on record as of March 31st.  The resulting FRG annual dividend payout per share of $2.50 yields 5.94% at yesterday's $42.11 closing price. 

FRG has paid annual variable payouts since April, 2015. That stretch will mark 7 years next month.  It quarterly payout has increased annually for the past four years.

FRG Returns

Adding the $2.50 FRG annual dividend to the estimated one-year price upside of $7.89 shows a $10.39 potential gross gain, per share, to be reduced by any costs to trade FRG shares.  

At yesterday's $42.11 price per share, a little over $1000 would buy 24 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.42 per share.

Subtract that maybe $0.42 brokerage cost from my estimated $10.49 gross gain estimate per share results in a net gain of $9.97 X 24 shares = $239.28 for a 23.8% net gain on a $1,010.64 investment.

So it is that Franchise Group Inc (FRG) shows a possible 23.8% net gain including a 5.94% past year dividend yield. 

Over the next year at this time our $1000 investment in Franchise Group Inc (FRG) could generate $59.40 in cash dividends alone. Note that a single share of FRG stock bought at yesterday's single share price of $42.11 is exactly $17.29 less than the dividend income from our $1000.00 invested. So, by my dogcatcher ideal, now IS the time to buy Franchise Group Inc (FRG) shares. The estimated next-year dividend from $1K invested is $17.29 greater than yesterday's single share price. Consider yourself alerted. Its a sign!  

All of the estimates above are speculation based on the past history of Franchise Group Inc (FRG). Only time and money invested in this stock will determine its market value.