How time flies! It’s been over two years since my review of Grey Wolf, and you’d think it would have been a more regular occurrence given their ticker.
I first reviewed WOLF back in Jan of 2024 and gave them an encouraging 3.5 stars. The market liked it too sending the stock up 33% within a few trading sessions. A quarter later in April I downgraded them and by August they had lost 40% of their value.
As a result of that downgrade they went into my ignore pile. The Wolf ignoring WOLF has turned out to be a bad idea as the company is up 170% since those August 2024 lows and 74% over the past twelve months.
Looking at their 2025 overall numbers that appears to make sense with a 33% revenue increase and 135% growth in net income. Their $56M valuation has them trading at a 32 P/E, 10.5 EV/EBITDA, 13.5x cash flow but a rather unimpressive 3.3% return on invested capital.
Grey Wolf released their financials after close on Thursday and Friday the stock traded a little better than flat, up a penny or .61% to close at a buck sixty five.
In addition to operating two pharmacies, a 25k sq ft facility in Manitoba and another in Ontario set to expand in 2027 from 10k to 28k square feet, the company also sells, markets and distributes products to veterinary clinics across the country. I’ve linked the entire presentation to the image below to learn more about them. As you can see both of their segments deliver very healthy margins and both had Q1 growth with the pharmacy business up by 5.6% and Animal Health revenue by 13.8%.
Grey Wolf Animal Health has a proposed name change in the works to become Grey Wolf Health as it better recognizes their pharmacy services to both animals and humans.
Let’s dive into their financials and other information to see if there is anything to howl about.