Becker Milk Cl B NV (BEK.B) AI Stock Analysis

• Market Cap: C$24.18M
• Dividend Yield: 6.12%
• Average Volume (3M): 227.00
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.12
• Revenue Growth: 1.17%
• EPS Growth: 3.44%
• Country: CA
• Employees: 4
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.14
• Shares Outstanding: 1,267,610
• 10 Day Avg. Volume: 355
• 30 Day Avg. Volume: 227
• PEG Ratio: -1.60
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 8.28
• P/FCF Ratio: 14.09
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: C$14.50 ▲(11.97% Upside)

The score is driven primarily by low financial risk from a debt-free balance sheet and supportive valuation (moderate P/E and high dividend yield). Offsetting these positives are inconsistent historical profitability/cash-flow patterns and largely neutral technical signals, which limit upside confidence.

Positive Factors

Financial Stability

Becker Milk's lack of debt and strong equity position enhance financial stability, reducing risk and providing a solid foundation for long-term operations.

Stable Cash Flow

Consistent cash flow generation supports operational needs and potential reinvestment, ensuring Becker Milk can sustain its business model.

Strong Profit Margins

High profit margins reflect effective cost management and operational efficiency, contributing to long-term profitability and competitive advantage.

Negative Factors

Minimal Revenue Growth

Limited revenue growth may hinder Becker Milk's ability to expand and adapt to market changes, potentially impacting future profitability.

Asset Base Decline

A declining asset base may restrict Becker Milk's capacity to leverage new opportunities or enhance its property portfolio, affecting long-term growth.

Free Cash Flow Growth Constraints

Limited growth in free cash flow could constrain Becker Milk's ability to invest in expansion or new projects, impacting future strategic initiatives.

Becker Milk Cl B NV Business Overview & Revenue Model

Company Description

The Becker Milk Company Limited owns and manages retail commercial properties primarily in Ontario, Canada. As of April 30, 2022, it owned and managed 43 commercial properties located in southern Ontario, which includes single store sites with a multi store plazas comprising one residential units above a retail commercial store; and leased 54 retail stores. The company was founded in 1957 and is headquartered in Toronto, Canada.

How the Company Makes Money

Becker Milk Company Limited generates revenue primarily through leasing its retail properties to various tenants, including convenience stores and supermarkets. The company's revenue model relies heavily on rental income from these long-term leases, which often include annual rent escalations and renewal options. Additionally, the company may engage in property sales or acquisitions to optimize its portfolio and enhance income streams. Becker Milk's focus on prime retail locations and established tenants contributes to stable and predictable earnings.

Becker Milk Cl B NV Financial Statement Overview

Summary

Strong balance sheet strength (debt-free, sizable equity vs. assets) supports low financial risk. Recent TTM performance shows solid revenue growth and high margins, but earnings and cash-flow history have been uneven, reducing confidence in sustainability.

Income Statement

TTM (Trailing-Twelve-Months) revenue grew a solid ~25.5% versus the prior period, with very high gross margin (~82%) and healthy operating profitability (EBIT margin ~35%). However, profitability has been volatile across years (including a net loss in 2023 and unusually high net margins in 2021–2022), which reduces confidence in earnings quality and sustainability despite the strong recent TTM result.

Balance Sheet

The balance sheet is very conservatively positioned with zero debt across periods and sizable equity relative to total assets (equity ~33.2M vs. assets ~39.2M in TTM), limiting financial risk and giving flexibility. The main weakness is returns on equity are modest in the most recent periods (TTM ROE ~6.4% and very low in some annual periods), suggesting the company is not consistently generating strong returns on its capital base.

Cash Flow

Cash generation is positive with TTM operating cash flow and free cash flow both ~1.23M, and free cash flow growth is very strong in the most recent data. That said, cash flow has been choppy historically (e.g., weaker cash generation in 2021–2022), and the relationship between cash flow and reported earnings is not consistently strong (TTM operating cash flow is below net income), which introduces some variability risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.84M	2.83M	2.79M	2.71M	2.63M	3.02M
Gross Profit	2.33M	2.39M	2.38M	2.29M	2.12M	2.37M
EBITDA	1.00M	1.08M	1.08M	995.86K	749.26K	951.45K
Net Income	2.15M	2.85M	124.48K	-778.35K	5.67M	3.54M
Balance Sheet
Total Assets	39.25M	38.92M	37.39M	40.33M	43.02M	37.50M
Cash, Cash Equivalents and Short-Term Investments	3.17M	2.87M	3.61M	4.85M	4.45M	5.56M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	6.01M	5.66M	5.41M	5.46M	6.22M	5.36M
Stockholders Equity	33.23M	33.26M	31.98M	34.87M	36.80M	32.14M
Cash Flow
Free Cash Flow	1.23M	704.59K	1.64M	904.99K	166.77K	343.23K
Operating Cash Flow	1.23M	704.59K	1.64M	904.99K	166.77K	343.23K
Investing Cash Flow	312.26K	670.07K	1.72M	295.99K	833.67K	1.04M
Financing Cash Flow	-723.34K	-1.45M	-3.26M	-1.45M	-1.45M	-1.45M

Becker Milk Cl B NV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BEK.B, the sentiment is Positive. The current price of 12.95 is below the 20-day moving average (MA) of 13.01, below the 50-day MA of 13.04, and above the 200-day MA of 12.86, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 58.79 is Neutral, neither overbought nor oversold. The STOCH value of 56.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BEK.B.

Becker Milk Cl B NV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BEK.B	72 Outperform	C$24.18M	11.24	6.55%	6.12%	1.17%	3.44%
IEI	66 Neutral	C$34.73M	7.14	4.45%	2.31%	2.03%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
MPC	58 Neutral	C$307.79M	19.10	3.93%	8.35%	5.67%	―
IVQ	51 Neutral	C$114.26M	-0.77	-31.26%	―	-33.25%	90.14%
BRE	46 Neutral	C$131.35M	-12.19	―	10.31%	58.15%	-235.04%