Stock Analysis: BioGaia
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BioGaia AB (BIOGY) is a healthcare company engaged in developing, marketing, and selling probiotic products.
The company has three operating segments:
(1) Paediatrics segment includes drops, gut health tablets, oral rehydration solution (ORS) and cultures to be used as ingredients in licensee products such as infant formula, as well as royalty revenue for pediatric products.
(2) Adult Health segment includes gut health tablets, oral health lozenges and cultures as an ingredient in a licensee’s dairy products.
(3) Other segment include royalties in respect of development projects, revenue from packaging solutions in the subsidiary CapAble, etc.
Geographically, it operates in three regions; Asia Pacific, Europe, the Middle East, Africa, and the Americas.
BioGaia AB (publ) was incorporated in 1990 and is based in Stockholm, Sweden.
Three key data points gauge BioGaia AB,or any dividend paying firm.
The key three are:
(1) Price
(2) Dividends
(3) Returns
Those three keys also best tell whether any company has made, is making, and will make money.
BIOGY Price
BioGaia’s price fell about 14% in the past year from $12.09 to $10.40 as of Friday’s market close.
In the past 5 years the company’s share price has ranged from $7.50 to $17.14 (the all-time high), reached May 26th, 2022.
Should the company conform to the $2.00 average of one year price gains made over the past two years, BIOGY share price could grow to $12.40 in the coming year.
BIOGY Dividend
BioGaia has paid variable Annual dividends since June 2016. The company’s most recent A dividend of $0.64 was declared April 25th for shareholders of record prior to May 9th, and the payout was made May 30th. A forward looking annual dividend of $0.64 yields 6.15% per Friday’s $10.40 closing price.
BIOGY Returns
Putting it all together, a $2.64 estimated gross gain per share shows up by adding BioGaia’s annual $0.64 dividend to the estimated $2.00 estimated annual gross price gain, totaling that $2.64 amount.
A little under $1000 buys 96 shares at Friday’s $10.40 share price.
A $10 broker fee (if charged), collected half at purchase and half at sale, might take about $0.105 per share out of the $2.64 gross-gain to give us a $2.535 net amount per share to multiply by 96 shares. That result comes to $243.36 for about a 24.4% estimated net gain in the coming year.
Furthermore, $61.50 in annual dividend income from your $1,000 investment in BioGaia AB is near 6 times greater than the $10.40 single-share price. By these numbers, BIOGY could be considered to be an ideal dividend dog by my dogcatcher standards.
Therefore, you may choose to pounce on BioGaia AB as a 35 year-old annual dividend-paying Swedish pro-biotic health company with a 9-year dividend payment record.
The exact track of BIOGY future price and dividend will entirely be determined by market action and company finances.
Remember the best way to track stock performance and dividend payments is through direct ownership of company shares.
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Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...
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