Unique Logistics International Inc (UNQL)

[lostatsea]

Great! I'm not opining of the company quality or prospects, never have. Just an analysis of the price today, which I concluded is too sharp for me.

Look at this from a analyst company " current and historical P/E ratios & CAPE ratios of Growth and Value stocks, calculated using Russell 1000 Growth and Russell 1000 Value indices. The trailing price-earnings ratio of growth equities is currently 35.38 and the corresponding ratio for value stocks is 17.95 (12/31/2021)."

So, if we even use a 35 PE, earnings will have to $12.3MM, a 700% increase. Maybe the hang-up here is what the time period is for the company to achieve such an increase. For me, having been in the business, that's a mountain and then some to climb, but could be done I suppose.

If you use the historical last full year net income margin, which is .0046 of total revenue, without improving margin, which is extremely difficult in this business, their sales would have to be $2,670,807,391. Otherwise, with same sales, the have to increase their margin to .03+, which would be spectacular. FedX net income margin is recently .055%. However, there is a difference in that FedX owns substantial capital producing assets to support their business;i.e. planes, trucks, warehouses, etc - which are likely operated at higher margins. UNQL business appears to be largely a broker business (paper pushers) with virtually no producing capital assets. The point being is the brokerage business is like commissions, and aren't usually very high. So a near 700% margin improvement will be challenging to say the least.

At $.043 price, fully diluted 10B shares, and earnings as reported ye 5/31/21 of $1.725MM is eps of .000175. I simply looked at the PE, which equals around 250. I don't see them improving anywhere close to a reasonable PE like 35.

Don't know why some are upset with me for just doing an analysis.