Is Blackmores Limited a buy at today’s share price?

In the last 12 months the Blackmores Limited (ASX: BKL) share price has tumbled 39%, leaving it perilously close to its 52-week low.

Whilst its shares have been trending lower for much of the last 12 months, they took a sizeable dip recently following the release of a weaker-than-expected first-half result.

As was widely expected, a weak first quarter impacted the health supplements company’s half-year results. Half-year sales fell 6% to $322 million and net profit dropped 42% to $28 million.

Pleasingly though Blackmores’ second quarter was far stronger than its first, giving investors hope that business is returning to normal at last. Second quarter sales increased 16% and profit jumped 33% on its first quarter.

Is it a bargain buy?

At 30x annualised earnings it is hard to call Blackmores a bargain, but I do see a lot of value in its shares for patient buy and hold investors. Especially with its significant growth potential in international markets.

One huge bright spot from its disappointing first-half was its sales growth in the China market. Clearly it wasn’t just a2 Milk Company Ltd (Australia) (ASX: A2M) having success in the lucrative market at the end of last year.

Sales in China rose a whopping 92% to $64 million. If the China business continues on its current growth trajectory it won’t be long until it becomes the company’s biggest market.

Another bright spot was its BioCeuticals business. This segment delivered sales of $51 million in the first half, up 54% on the prior corresponding period.

What now?

Although its full-year result will inevitably be lower than in FY 2016, I remain confident that the company will once again return to growth in FY 2018.

There will no doubt be many ups and downs in the next 12 months, but I think investors willing to be patient will be rewarded handsomely in the long-term.

Blackmores isn't the only share which could be a great buy and hold investment. These three hot growth stocks could be even better options for investors in my opinion.

A Big, Fat, Fully Franked Dividend

This company's dividend is almost the stuff of legends. Since it started paying dividends in 2007, it has increased its payout to shareholders every single year, a run that includes 21 consecutive dividend increases.

Based on the last 12-months of dividends, its shares are currently offering a fully-franked 4.8% yield, which grosses up to almost 7% when those franking credits are included. And in stark contrast to the likes of Commonwealth Bank and Telstra, this company just increased its dividend by over 13%, and guided for 2017 profits to grow by 20%!

Discover the name of this "new breed" of blue chip along with 2 others in our new FREE report "The Motley Fool's Top 3 Blue Chips Stocks For 2017."

Click here to receive your copy.

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of A2 Milk. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

HOT OFF THE PRESSES: My #1 Dividend Pick for 2017!

With its shares up 155% in just the last five years, this ‘under the radar’ consumer favourite is both a hot growth stock AND our expert’s #1 dividend pick for 2017. Now we’re pulling back the curtain for you... And all you have to do to discover the name, code and a full analysis is enter your email below!

Simply enter your email now to receive your copy of our brand-new FREE report, “The Motley Fool’s Top Dividend Stock for 2017.”

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.