Niagen Bioscience: A Great Company Suffering From Stock Dilution
Excerpt
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https://seekingalpha.com/article/4820666?gt=f5cdb280b6c9863b
Summary
I give Niagen Bioscience, Inc. a hold rating.
The company has a cash-rich balance sheet with no debt and high-quality earnings.
Shareholders have already faced 47.5% dilution since 2016, and there remains another 14.2% potential dilution from outstanding equity awards.
Niagen Bioscience Q2 earnings reported a diluted EPS of $0.04, beating estimates by $0.03, with strong cash flow, thereby softening the blow of the company's consistent stock dilution.
My discounted cash flow valuation model indicates an intrinsic value of $4.04 per share, meaning the stock is currently trading at approximately 133% above its intrinsic value.
A Personal Anecdote
I'm kicking myself at the moment; the reason why is because I've been taking Tru Niagen, Niagen Bioscience's (NASDAQ:NAGE) flagship product since 2022. When I received my most recent shipment, I realized that, much to my horror, the stock ticker was found underneath the packaging, along with the words "ChromaDex is a publicly traded company." I have no idea why I never bothered to check if one of my daily supplements was publicly traded, but my realization became worse when I looked at the stock price since I began taking the product: In the last three years, Niagen Bioscience has gone up 503%.
Company Revenue Segments
Putting my personal gloom aside, what exactly is Niagen Bioscience, Inc.? Let's break down the company into its three main segments of revenue using the company's latest 10-K…
