Jamieson Wellness (TSX:JWEL) stands out as one in all my all-time favorite Canadian mid-cap shares, not simply due to its spectacular long-term progress narrative, however as a result of it has a powerful model and a front-row seat to the secular well being and wellness development.
Certainly, the $1.55 billion agency has seen greater than its justifiable share of steep swings in each instructions. Nonetheless, I nonetheless assume the identify is value stashing away, despite the fact that its longer-term chart (shares have posted no returns within the final 5 years regardless of the uneven journey) isn’t essentially the most compelling within the mid-cap universe.
In a nook of the Canadian market that’s seen as riskier, extra unstable, and maybe not value exploring for funding alternatives, Jamieson stands out as one of many names that may not solely assist pad one’s passive revenue (a pleasant 2.5% dividend yield on the time of this writing) but in addition assist clean the market bumps (0.70 beta).
JWEL inventory appears low-cost and well timed after its post-earnings rally
Zooming in, shares of JWEL seem a lot timelier, with shares now up practically 8% over the previous month. Undoubtedly, the second-quarter outcomes didn’t ship blowout numbers by any stretch of the creativeness. That mentioned, there was a glimmer of hope inside China, the place the Jamieson Wellness model is actually experiencing power.
Although worldwide progress could possibly be key to the following leg greater for JWEL shares, I wouldn’t low cost the corporate’s capability to drive gross sales progress right here in Canada and america. Certainly, pivoting into new product classes (assume protein or ashwagandha) is a brilliant transfer because it appears to jolt gross sales. Whereas nutritional vitamins, minerals, and dietary supplements are, certainly, commoditized, it’s actually powerful to vouch for the standard of a sure product, particularly these with unrecognizable model names.
Are you actually getting sufficient calcium in a bottle of multivitamins? In the case of Jamieson, you may be sure that you’re not solely getting high-quality dietary supplements, but in addition the fitting dosage, which is completely a differentiator within the well being meals retailer.
Jamieson’s model energy is over 100 years within the making
Jamieson has been round for a very long time. It’s been within the enterprise for greater than 100 years! Over that point, it has constructed an incredible quantity of brand name affinity. Whereas legendary shopper packaged good manufacturers have been examined amid inflation, I consider that Jamieson is without doubt one of the manufacturers with underrated pricing energy.
Given Jamieson’s standing as a premium model of complement in Canada, it ought to come as no shock that Chinese language customers have been such followers of Jamieson’s time-tested model and its iconic inexperienced bottle caps for a while now.
Maybe customers have been conditioned to assume that something with out that inexperienced cap isn’t absolutely the highest high quality complement to ingest. In any case, I believe the model energy and distinctive progress tailwinds (in China and past) make the identify value grabbing whereas it’s hovering for $37 and alter.
As the corporate continues gaining momentum within the Chinese language market, I wouldn’t sleep on the inventory, which appears fairly inexpensive at simply 27.76 instances trailing value to earnings (P/E). Add the observe document of dividend progress and potential for China to be extra of a needle-mover over time, and it’s not arduous to see why JWEL is such a fantastic mid-cap to personal in any atmosphere.
