BUCY Stock Report

2-Year Price History

Ockham’s Rating

BUCY Revenue

For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at BUCY through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 6 years are 2.34x and 0.92x respectively.

Utilizing this range we can see that BUCY’s current Price to Sales per share ratio of 0.78x is significantly below its average levels historically. In fact, with a current price of $27.07, BUCY is a full 52% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for BUCY.

BUCY Cash Earnings

As a value investment framework, Ockham Research is similar to a private equity firm in terms of our valuation methods. We are always on the lookout for value in the form of sales and cash numbers. In the case of BUCY, Ockham views their current Cash Earnings as significantly below its historical average multiple of Cash Earnings. Looking at the last 6 years we can get a good understanding of what investors have grown to expect from BUCY. For example, BUCY’s Cash Earnings ratio per share has fluctuated between 8.60 and 21.57 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where BUCY is with respect to prior business periods.

So with BUCY’s current price (latest close of $27.07) and most recent level of Cash Earnings reported, we see significant opportunity from a value perspective. At its current price level, BUCY is 57% below its average level of Price to Cash Earnings on a historical basis. This means that investors were willing to pay for a much higher stock price than currently for the same level of Cash in the past, on a relative basis. There are a couple of important things to remember, however. First, value doesn’t exist in a vacuum. So if the market doesn’t recognize this value, even a great disparity in Price to Cash Earnings cannot force an immediate stock price reaction. Second, patience is key when looking at securities that have reached these levels of Price to Cash Earnings versus their historical norms. So be patient with BUCY.

BUCY Dividends

While it is not necessary to pay an attractive dividend or a dividend at all, to receive a positive rating from Ockham, we view dividends as an additionally helpful measure in determining the future potential of any company.

In BUCY’s case, the estimated annual dividend is $0.10 resulting in a current dividend yield of 0.37%. Similar to our review of Sales and Cash Earnings per share, we evaluate dividend yields from BUCY against the historic high and low levels over the past 6 years. The highest dividend yield from BUCY over this period was 0.94% while the lowest dividend yield was 0.13% While it is quite common for a growth stock to pay no dividend at all, but for a mature company such as BUCY that has a history of paying dividends it is disappointing to see their dividend yield drop so significantly. At this time, the current dividend yield is 30.84% below the median yield.