Hydro One Ltd

Sound bite for Twitter is: Dividend Growth Utility. Results of stock price testing is that the stock price is probably expensive. Debt Ratios are mostly fine, but the company has a lot of debt. The Dividend Payout Ratios (DPR) are fine. The current dividend yield is moderate with dividend growth low. See my spreadsheet on Hydro One Ltd.

Is it a good company at a reasonable price? This is a dividend growth utility. That is the good news. I think that they need to moderate their dividends and lower increases a bit. It would seem that stock price is on the expensive side. It happens sometimes. It is interesting that the analysts’ recommendations of a Hold concur with my analysis that the stock price is expensive. If I had this stock, I would not sell as I believe in keeping stocks for the long term. However, now is not the time to buy more.

I do not own this stock of Hydro One Ltd (TSX-H, OTC-HRNNF). It is a utility stock and has been recommended by various persons. It is on the Money Sense list with a C. Rating. It appeared in the Stable Dividend Portfolio when Norman Rothery originally wrote about it in December 21, 2022.

When I was updating my spreadsheet, I noticed that most of the directors have options, but not Shares in the company. Of 10 directors, 2 have shares. The Chairman of the company has no shares. The Province of Ontario still owns 47% of the outstanding shares.

If you had invested in this company in December 2015, for $1,008.00 you would have bought 45 shares at $22.29 per share. In December 2024, after 9 years you would have received $417.25 in dividends. The stock would be worth $1,992.15. Your total return would have been $2,409.40. This would be a total return of 11.36% per year with 7.92% from capital gain and 3.43% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$22.29	$1,008.00	45	9	$417.25	$1,992.15	$2,409.40

The current dividend yield is moderate with dividend growth low. The current dividend yield is moderate (2% to 4%) at 2.61%. The 5 and 10 year median dividend yields are 3.21% and 3.73%. (Since the company has only been on the TSX for 10 years the historical dividend yield would also be 3.73%.) The dividend growth is low (below 8% per year) at 5.4% per year over the past 5 years. The last dividend increase was in 2024 and it was for 6%.

The Dividend Payout Ratios (DPR) are fine. The DPR for 2024 for Earnings per Share (EPS) is fine for a utility at 65% with 5 year coverage at 55%. The DPR for 2024 for Adjusted Funds from Operations (AFFO) is too high at 114% with 5 year coverage is fine at 77%. The DPR for 2024 for Funds from Operations (FFO) is good at 33% with 5 year coverage at 32%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is fine at 65% with 5 year coverage at 65%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 26% with 5 year coverage at 28%. The DPR for 2024 for Free Cash Flow 1 (FCF 1) is non-calculable because of negative FCF. The DPR for 2024 for Free Cash Flow 1 (FCF 1) is non-calculable because of negative FCF with 5 year coverage too high at 473%. There is no agreement on what the FCF, but all sites say it is negative for 2024.

Item	Cur	5 Years
EPS	64.53%	55.46%
AFFO	113.67%	76.71%
FFO	32.71%	31.90%
AEPS	64.53%	64.80%
CFPS	26.99%	27.78%
FCF 1	-142.88%	-452.84%
FCF 2	-399.46%	473.31%

Debt Ratios are mostly fine, but the company has a lot of debt. The Long Term Debt/Market Cap Ratio for 2024 is fine at 0.62 and currently at 0.57. The Liquidity Ratio for 2024 is too low at 0.60 and 0.60 currently. If you added in Cash Flow after dividends, the ratios are still low at 1.10 and currently at 1.10. If you add back in the current portion of the long term debt, the ratios are acceptable at 1.50 and currently at 1.50. The Debt Ratio for 2024 is good at 1.50 and 1.50 currently. The Leverage and Debt/Equity Ratios for 2024 are too high at 3.03 and 2.02 and currently at 3.03 and 2.02. I prefer these to be below 3.00 and 2.00. However, utilities tend to have lots of debt.

Type	Year End	Ratio Curr
Lg Term R	0.62	0.57
Intang/GW	0.04	0.04
Liquidity	0.60	0.60
Liq. + CF	1.10	1.10
Liq. + CF+D	1.50	1.51
Debt Ratio	1.50	1.50
Leverage	3.03	3.03
D/E Ratio	2.02	2.02

The Total Return per year is shown below for years of 5 to 10 to the end of 2024. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2019	5	5.13%	15.72%	12.15%	3.57%
2015	10	2.70%	10.40%	7.43%	2.97%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 17.67, 19.70, 21.73. The corresponding 10 year and historical ratios are 17.13, 19.11 and 21.08. The current P/E Ratio is 23.56 based on a stock price of $48.21 and EPS estimate for 2025 of $2.05. The current ratio is above the high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive.

I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 17.67, 19.70, 21.73. The corresponding 10 year and historical ratios are 17.90, 19.47 and 20.83. The current P/AEPS Ratio is 23.63 based on a stock price of $48.21 and AEPS estimate for 2025 of $2.04. The current ratio is above the high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $30.45. The 10-year low, median, and high median Price/Graham Price Ratios are 1.05, 1.14 and 1.25. The current ratio is 1.58 based on a stock price of $48.21. The current ratio is above the high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive.

I get a 10-year median Price/Book Value per Share Ratio of 1.49. The current ratio is 2.39 based on a Book Value of $12,108M, Book Value per Share of $20.20 and a stock price of $48.21. The current ratio is 60% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I also have a Book Value per Share estimate for 2025 of $20.87. This implies a ratio of 2.31 with a stock price of $48.21 and a Book Value of $12,510M. This ratio is 55% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I get a 10-year median Price/Cash Flow per Share Ratio of 8.43. The current ratio is 11.19 based on Cash Flow per Share estimate for 2025 of $4.31, Cash Flow of $2,584M and a stock price of $48.21. The current ratio is 33% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year and historical median dividend yield of 3.73%. The current dividend yield is 2.61% based on dividends of $1.2568 and a stock price of $48.21. The current ratio is 30% below the 10 year and historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive.

The 10-year median Price/Sales (Revenue) Ratio is 2.26. The current ratio is 3.32 based on Revenue estimate for 2025 of $8,710M, Revenue per Share of $14.53 and a stock price of $48.21. The current ratio is 47% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

Results of stock price testing is that the stock price is probably expensive. The dividend yield tests say that the stock price is relatively expensive. This is confirmed by the P/S Ratio test. All the other tests are saying the same thing. The stock price is also at an all time high on a stock charge.

When I look at analysts’ recommendations, I find Hold (10), Underperform (2), and Sell (1). The consensus would be a Hold. The 12 month stock price consensus is $45.19 with a high of $47.00 and low of $38.00. The consensus stock price of $45.19 implies a total loss of 3.66% with a 6.26% from capital loss and 2.61% from dividends.

Analysts in 2024 on Stock Chase gave a mix of Buy and Do Not Buy. One liked EMA better and another thought the stock was too expensive. Stock Chase gives this stock 5 stars out of 5. It is not currently on the Money Sense Dividend list. Amy Legate-Wolfe on Motley Fool says to buy dividend paying stocks to protect you against the tariffs. Hydro One is a stock you should buy. Rajiv Nanjapla on Motley Fool says in these uncertain times buy defensive Canadian stocks like Hydro One. The company put out a press release about their fourth quarter results..

Simply Wall Street via Yahoo Finance writes about Hydro One and they are not enthusiastic about this stock. Simply Wall Street has two warnings on this stock of debt is not well covered by operating cash flow; and dividend of 2.58% is not well covered by free cash flows.

Hydro One operates regulated transmission and distribution assets in Ontario. The province of Ontario holds an approximate 47.5% common equity stake. Its web site is here Hydro One Ltd.

The last stock I wrote about was about was AltaGas Ltd (TSX-ALA, OTC-ATGFF) ... learn more. The next stock I will write about will be Atrium Mortgage Investment Corp (TSX-AI, OTC-AMIVF) ... learn more on Wednesday, March 26, 2025 around 5 pm. Tomorrow on my other blog I will write about What to do About Identity Theft.... learn more on Tuesday, March 25, 2025 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

AltaGas Ltd

Sound bite for Twitter is: Dividend Growth Utility. Results of stock price testing is that the stock price is probably relatively expensive. Debt Ratios are fine for a utility, but it does have lots of debt. The Dividend Payout Ratios (DPR) are fine for a utility. The current dividend yield is moderate with dividend growth low. See my spreadsheet on AltaGas Ltd.

Is it a good company at a reasonable price? I do not sell one of my long time holdings just because it is overpriced. I plan to hold on to the shares I have. I probably will not buy more as I have enough. I would be careful about buying at the present time as the stock price seems to be in the expensive range. Analysts recommendations mean nothing as most stocks are always listed as a Buy.

I own this stock of AltaGas Ltd (TSX-ALA, OTC-ATGFF). I bought this stock in 2009 and therefore started to follow it. When I bought this stock in 2009 it was on many dividend growth stock lists. In 2009, I saw that this stock also had good growth in Revenues, Earnings, Dividends, and Stock Prices over the last 5 and 10 years. The stock had a fairly strong balance sheet. I took a small position in this stock, and planned to wait and see how things go with this stock before buying more. I bought more in 2010 and 2012.

When I was updating my spreadsheet, I noticed this company had problems in 2018 with an earnings loss because of higher expenses, higher interest payments and provisions for taxes. They repositioned themselves that year but had to cut the dividends by over 50% in 2019. They started to increase the dividends again in 2021.

This is a big difference on this stock for those who have bought it 5 or 10 years ago. See the charts below. For people buying it 10 years ago in 2014 it was around an all-time high. You should avoid buying stocks at their all time highs. You cannot time the market, but you do know, relatively speaking, where a stock is currently. It is often hard to find a good stock cheap, but you can find ones at a reasonable price.

I have held this stock for over 15 years and I have made a total return of 9.73% per year with 3.42% from capital gains and 6.31% from dividends. For utilities you would expect a good portion of your total return from dividends.

If you had invested in this company in December 2014, for $1,040.16 you would have bought 24 shares at $43.34 per share. In December 2024, after 10 years you would have received $349.39 in dividends. The stock would be worth $803.52. Your total return would have been $1,152.91. This would be a total return of 1.24% per year with 2.55% from capital loss and 3.79% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$43.34	$1,040.16	24	10	$349.39	$803.52	$1,152.91

If you had invested in this company in December 2019, for $1,008.78 you would have bought 51 shares at $19.78 per share. In December 2024, after 5 years you would have received $276.06 in dividends. The stock would be worth $1,707.48. Your total return would have been $1,983.54. This would be a total return of 15.56% per year with 11.10% from capital gain and 4.46% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$19.78	$1,008.78	51	5	$276.06	$1,707.48	$1,983.54

The current dividend yield is moderate with dividend growth low. The current dividend yield is moderate (2% to 4% ranges) at 3.27%. The 5 year median dividend yield is also moderate at 4.32%. The 10 year and historical median dividend yields are good (5% to 6% ranges) at 5.25% and 5.29%. The dividends are currently increasing at a low rate (less than 8% per year) at 4.4% per year over the past 5 years. The last dividend increase was in 2025 and it was for 5.9%.

The Dividend Payout Ratios (DPR) are fine for a utility. The DPR for 2024 for Earnings per Share (EPS) is fine at 61% with 5 year coverage at 66%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is fine at 55% with 5 year coverage at 59%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 32% with 5 year coverage at 29%. The DPR for 2024 for Free Cash Flow (FCF) is non-calculable because of a negative FCF with 5 year coverage at 313%. However, there is no agreement with sites on what FCF is and MS does not even agree with itself.

Item	Cur	5 Years
EPS	61.34%	66.25%
AEPS	54.84%	59.41%
CFPS	32.00%	28.50%
FCF	0.00%	313.88%

Debt Ratios are fine for a utility, but it does have lots of debt. The Long Term Debt/Market Cap Ratio for 2024 is high at 0.90 and currently at 0.80. However, we need also to look at the Long Term Debt/Covering Assets Ratio for 2024 which is still high at 0.89 and currently fine at 0.59 because this is a more important Ratio for a Utility. The Liquidity Ratio for 2024 is too low at 0.81 and 0.81 currently. If you added in Cash Flow after dividends, the ratios are still low at 1.14 and currently at 1.05. If you add back in the current portion of the long term debt, the 2024 ratio is fine at 1.51 with the current one low at 1.39. The Debt Ratio for 2024 is good at 1.53 and 1.53 currently. The Leverage and Debt/Equity Ratios for 2024 are fine at 2.88 and 1.88 and currently at 2.88 and 1.88.

Type	Year End	Ratio Curr
Lg Term R	0.90	0.80
Lg Term R+A	0.89	0.59
Intang/GW	0.58	0.51
Liquidity	0.81	0.81
Liq. + CF	1.14	1.05
Liq. + CF + D	1.51	1.39
Debt Ratio	1.53	1.53
Leverage	2.88	2.88
D/E Ratio	1.88	1.88

The Total Return per year is shown below for years of 5 to 25 to the end of 2024. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2019	5	4.39%	15.56%	11.10%	4.46%
2014	10	-3.33%	1.24%	-2.55%	3.79%
2009	15	-3.90%	10.52%	3.92%	6.60%
2004	20	-0.03%	8.59%	1.86%	6.73%
1999	25	9.42%	17.91%	7.12%	10.79%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 13.97, 16.19 and 18.40. The corresponding 10 year ratios are 14.90, 17.54 and 20.19. The corresponding historical ratios are 13.02, 15.83 and 18.51. The current P/E Ratio is 17.23 based on a stock price of $38.55 and EPS estimate for 2025 of $2.24. This ratio is between the low and median ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 11.34, 13.11 and 15.94. The corresponding 10 year ratios are 12.21, 14.55 and 17.15. The corresponding historical ratios are 13.76, 23.58 and 27.68. The current P/AEPS Ratio is 17.29 based on a stock price of $38.55 and AEPS estimate for 2025 of $2.23. This ratio is above the high ratio of the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I also have Funds from Operations (FFO) data. The 5-year low, median, and high median Price/Funds from Operations Ratios are 5.21, 5.82 and 6.37. The corresponding 10 year ratios are 5.28, 6.61 and 8.07. The corresponding historical ratios are 6.76, 7.83 and 9.69. The current P/FFO Ratio is 9.61 based on a stock price of $38.55 and FFO for last 12 months of $4.01. This ratio is above the high ratio of the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I also have Adjusted Funds from Operations (AFFO) data. The 5-year low, median, and high median Price/Adjusted Funds from Operations Ratios are 5.83, 6.33 and 7.27. The corresponding 10 year ratios are 5.99, 7.34 and 5.99. The current P/AFFO Ratio is 9.01 based on a stock price of $38.55 and AFFO estimate for 2025 of $4.28. This ratio is above the high ratio of the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $37.52. The 10-year low, median, and high median Price/Graham Price Ratios are 0.68, 0.84 and 0.97. The current ratio is 1.03 based on a stock price of $38.55. The current ratio is above the high ratio of the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I get a 10-year median Price/Book Value per Share Ratio of 1.10. The current P/B Ratio is 1.37 based on a Book Value of $8.361M, Book Value per Share of $28.06 and a stock price of $38.55. The current ratio is 25% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I also have a Book Value per Share estimate for 2025 of $26.68. The analysts based this on a different book value calculation which has a 10 year P/B Ratio is 0.97. The current ratio is 1.44 based on a stock price of $38.55 and Book Value of $7,949M. This ratio is 49% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I get a 10-year median Price/Cash Flow per Share Ratio of 8.26. The current P/CF Ratio is 9.44 based on Cash Flow per Share estimate for 2025 of $4.09, Cash Flow of $1,217M and a stock price of $38.55. The current ratio is 14% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get an historical median dividend yield of 5.29%. The current dividend yield is 3.27% based on dividends of $1.26 and a stock price of $38.55. The current dividend yield is 38% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive. However, this test works best on dividend growth and dividends have been cut for this stock and dividends are still some 42% below the dividends before they were cut. Another problem is that dividend cuts are not good.

I get an historical median dividend yield of 5.25%. The current dividend yield is 3.27% based on dividends of $1.26 and a stock price of $38.55. The current dividend yield is 38% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive. However, this test works best on dividend growth and dividends have been cut for this stock and dividends are still some 42% below the dividends before they were cut. Another problem is that dividend cuts are not good.

The 10-year median Price/Sales (Revenue) Ratio is 0.84. The current P/S Ratio is 0.78 based on Revenue estimate for 2025 of $14,248, Revenue per Share of $47.82 and a stock price of $38.55. The current ratio is 4% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. I sort of wonder about the estimated Revenue for 2025 as it is an increase of $15% over 2024.

Results of stock price testing is that the stock price is probably relatively expensive. The dividend tests say the stock is expensive, but they are suspect. The P/S Ratio test says the stock is reasonable, but above the median, but I do wonder if revenue will go up 15% this year. The last 12 month estimate shows Revenue down 4%. Most of the rest of the testing shows the stock price as expensive. My next favourite test after dividend and P/S Test is the P/GP Ratio test and this says that the stock price is relatively expensive. If you look at the stock chart, and the stock price is at a high. That is generally not a good time to buy.

When I look at analysts’ recommendations, I find Strong Buy (3), Buy (4), Hold (2) and Underperform (1). The consensus is a Buy. The 12 month stock price consensus is $39.50 with a high of $42.00 and low of $35.00. The consensus 12 month stock price of $39.50 implies a total return of 5.73% with 2.46% from capital gains and 3.27% from dividends based on a current stock price of $38.55.

Most analysts on Stock Chase says it is a buy, but one says hold because it is at a high and will probably correct. Stock Chase gives this stock 5 stars out of 5. Christopher Liew on Motley Fool suggests that risk adverse investors might want to buy this stock. Robin Brown on Motley Fool says this is a safe stock for Canadians to buy. The company put out a Press Release about their fourth quarter of 2024.

Simply Wall Street on Yahoo Finance talks about this company missing 2024 earnings expectations. Simply Wall Street has 3 warnings of interest payments are not well covered by earnings; dividend of 3.28% is not well covered by free cash flows; and significant insider selling over the past 3 months. Simply Wall Street thinks this stock is undervalued as they calculate a Fair Value is $139.63. See their Valuation site. Simply Wall Street gives this stock one and one half stars out of 5.

AltaGas Ltd owns and operates a diversified basket of energy infrastructure businesses. Business is conducted through given segments: Midstream, Utilities and Corporate/other. Revenue is derived from customers in both Canada and the United States, with Canadian customers contributing the most. Its web site is here AltaGas Ltd.

The last stock I wrote about was about was TC Energy Corp (TSX-TRP, NYSE-TRP) ... learn more. The next stock I will write about will be Hydro One Ltd (TSX-H, OTC-HRNNF) ... learn more on Monday, March 24, 2025 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

TC Energy Corp

Sound bite for Twitter is: Dividend Growth Utility. Results of stock price testing is that the stock price is probably still reasonable, but be cautious as price is near the top of the current range. Debt Ratios need improving and the company has too much debt. The Dividend Payout Ratios (DPR) need improving and analyst think this will happen. The current dividend yield is good with dividend growth low. See my spreadsheet on TC Energy Corp.

Is it a good company at a reasonable price? I still like this utility stock. It has a lot of debt, but most utilities do. I plan to continue to hold what shares I have. I enough of this stock, so I will not buy anymore. The test results are showing the stock price as reasonable but above the median. I would be cautious about buying any non cheap stock in these uncertain times and this stock is at the top of its price range.

I own this stock of TC Energy Corp (TSX-TRP, NYSE-TRP). When I bought this stock, it was on Mike Higgs' Canadian Dividend Growth Stock list and the other dividend lists that I followed. I bought the stock in 2000 at an opportune time. The company had been cutting their dividend payments in order to re-organize and get the company into shape for long term profitability. This company’s stock fell hard because of this. People who depend on dividends for their income can be an unforgiving lot and can get really upset at company when a trusted company cuts its dividends.

When I was updating my spreadsheet, I noticed that I have had this stock for 25 year and I have made a total return of 10.00% per year with 4.24% from capital gains and 5.76% from dividends.

I also noticed for TD and WSJ the prior stock values were decreased by 91.09% for the spinoff South Bow Corporation even though neither site marks this event. The valuations were confusing. I noticed that dividends were decreased by some 85.68%. When the company is showing prior years value that the values are decreased in the 80% range. I have decreased values based on the decrease in dividends. I have decreased stock price by 91.09% as TD and WSJ have done.

If you had invested in this company in December 2014, for $1,040.25 you would have bought 20 shares at $52.01 per share. In December 2024, after 10 years you would have received $514.85 in dividends. The stock would be worth $1,339.80. Your total return would have been $1,854.65. This would be a total return of 6.86% per year with 2.56% from capital gain and 4.30% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$52.01	$1,040.25	20	10	$514.85	$1,339.80	$1,854.65

The current dividend yield is moderate with dividend growth low. The current dividend yield is moderate (2% to 4% ranges) at 4.94%. The 5 year median dividend yield is good (5% to 6% ranges) at 5.35%. The 10 year and historical median dividend yields are moderate (2% to 4% ranges) at 4.75% and 4.10%. The dividend growth is low (below 8% per year) at 5.3% per year over the past 5 years. The last dividend increase was in 2025 and it was for 3.34%.

The Dividend Payout Ratios (DPR) need improving and analyst think this will happen. The DPR for 2024 for Earnings per Share (EPS) is too high at 81% with 5 year coverage much too high at 127%. The DPR for 2024 for Funds from Operations (FFO) is good at 43% with 5 year coverage at 49%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is too high at 88% with 5 year coverage at 86%. The DPR for 2024 for Cash Flow per Share (CFPS) is fine at 45% with 5 year coverage at 44%. The DPR for 2024 for Free Cash Flow 1 (FCF 1) is too high at 347% with 5 year coverage at 1765%. The DPR for 2024 for Free Cash Flow 2 (FCF 2) is fine at 78% with 5 year coverage is too high at 219%. There is no agreement on what FCF is.

Item	Cur	5 Years
EPS	80.60%	126.86%
FFO	42.95%	49.75%
AEPS	87.52%	86.26%
CFPS	45.24%	44.33%
FCF 1	346.75%	1764.77%
FCF 2	77.91%	218.93%

Debt Ratios need improving and the company has too much debt. The Long Term Debt/Market Cap Ratio for 2024 is fine at 0.65 and currently at 0.64. The Liquidity Ratio for 2024 is far too low at 0.55 and 0.55 currently. If you added in Cash Flow after dividends, the ratios only get to 0.95 and currently at 0.96. If you add back in the current portion of the debt, the ratios are fine at 7.76 and 7.77. The Debt Ratio for 2024 is fine at 1.48 and 1.48 currently. The Leverage and Debt/Equity Ratios for 2024 are too high at 3.08 and 2.08 and currently at 3.08 and 2.08. I prefer these to be below 3.00 and 2.00.

Type	Year End	Ratio Curr
Lg Term R	0.65	0.64
Intang/GW	0.20	0.19
Liquidity	0.55	0.55
Liq. + CF	0.95	0.96
Liq. + CF + D	7.76	7.77
Debt Ratio	1.48	1.48
Leverage	3.08	3.08
D/E Ratio	2.08	2.08

The Total Return per year is shown below for years of 5 to 36 to the end of 2024. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2019	5	5.32%	5.91%	1.24%	4.67%
2014	10	7.21%	6.86%	2.56%	4.30%
2009	15	6.41%	9.39%	4.84%	4.55%
2004	20	6.13%	8.91%	4.62%	4.29%
1999	25	5.02%	13.18%	7.26%	5.92%
1994	30	4.78%	9.60%	4.98%	4.62%
1989	35	5.05%	9.30%	4.77%	4.52%
1988	36	4.90%	9.29%	4.77%	4.52%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 17.49, 19.99 and 22.49. The corresponding 10 year ratios are 15.31, 17.05 and 18.77. The corresponding historical ratios are 13.10, 14.93 and 17.28. The current P/E Ratio is 18.71 based on a stock price of $68.87 and EPS estimate for 2025 of $3.68. The current ratio is between the median and high ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 12.26, 15.30 and 18.32. The corresponding 10 year ratios are 13.14, 15.53 and 18.56. The corresponding historical ratios are 14.78, 16.90 and 19.23. The current P/AEPS ratio is 17.93 based on a stock price of $68.87 and AEPS estimate for 2025 of $3.84. The current ratio is between the median and high ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I also have Funds from Operations (FFO) data. The 5-year low, median, and high median Price/Funds from Operations Ratios are 7.25, 8.28 and 9.32. The corresponding 10 year ratios are 7.36, 8.68 and 7.36. The corresponding historical ratios are 7.91, 9.10 and 10.42. The current P/AFFO ratio is 9.05 based on a stock price of $68.87 and AEPS estimate for 2025 of $3.84. The current ratio is above the high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive

I get a Graham Price of $45.68. The 10-year low, median, and high median Price/Graham Price Ratios are 0.97, 1.16 and 1.38. The current P/GP Ratio is 1.51 based on a stock price of $68.87. The current ratio is above the high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive.

I get a 10-year median Price/Book Value per Share Ratio of 1.92. The current P/B Ratio is 2.85 based on a Book Value of $25,093M, Book Value per Share of $24.15 and a stock price of $68.87. The current ratio is 48% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I also have a Book Value per Share estimate for 2025, but the analyst calculates the Book Value different from me and this method has a 10 year median P/B Ratio of 1.70. The Book Value per Share estimate for 2025 is $24.97 with a Book Value of $25,946M and with stock price of $68.87 the ratio will be 2.76. This ratio is 62% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I get a 10-year median Price/Cash Flow per Share Ratio of 7.73. The current P/CF Ratio is 9.15 based on Cash Flow per Share estimate for 2025 of $7.05, Cash Flow of $7,824M and a stock price of $68.87. The current ratio is 18% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get an historical median dividend yield of 4.10%. The current dividend yield is 4.90% based on a stock price of 68.87 and dividends of $3.40. The current ratio is 20% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median dividend yield of 4.75%. The current dividend yield is 4.90% based on a stock price of $68.87 and dividends of $3.40. The current ratio is 4% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.

The 10-year median Price/Sales (Revenue) Ratio is 4.32. The current P/S Ratio is 4.77 based on Revenue estimate for 2025 of $14,987M, Revenue per Share of $14.42 and a stock price of $68.87. The current ratio is 11% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

Results of stock price testing is that the stock price is probably still reasonable, but be cautious as price is near the top of the current range. The 10 year dividend yield test says the stock price is reasonable and below the median. The P/S Ratio test does not confirm this, but says it is reasonable but above the median. A lot of the tests are saying that the stock price is relatively expensive. The other ones are saying reasonable, but above the median.

When I look at analysts’ recommendations, I find Strong Buy (5), Buy (7), Hold (9), and Underperform (2). The consensus would be a Buy. The 12 month stock price consensus is $70.60 with a high of $79.00 and low of $39.00. The consensus stock price of $70.60 implies a total return of 7.45% with 2.51% from capital gains and 4.94% from dividends based on a current stock price of $68.87.

Analysts on Stock Chase still like this company and think it is a buy. Stock chase gives this stock 5 stars out of 5. However, I have noticed that Money Sense has taken this company off their dividend list for 2025. Puja Tayal on Motley Fool says that in 10 years’ time, you will be glad you bought this stock. Adam Othman on Motley Fool thinks this is a top stock for dividend investors. The company put out a Press Release about their fourth quarter of 2024.

Zacks via Yahoo Finance talks about TC energy expecting a rise in Natural Gas Demand in the next 10 years. Simply Wall Street via Yahoo Finance reviews this stock. They have two warnings out on this stock of interest payments are not well covered by earnings; and dividend of 4.99% is not well covered by earnings or free cash flows.

TC Energy operates natural gas and power generation assets in Canada and the United States. Its web site is here TC Energy Corp.

The last stock I wrote about was about was TransAlta Corp (TSX-TA, NSYE-TAC) ... learn more. The next stock I will write about will be AltaGas Ltd (TSX-ALA, OTC-ATGFF) ... learn more on Friday, March 21, 2025 around 5 pm. Tomorrow on my other blog I will write about US Debt Risk by Ray Dalio.... learn more on Thursday, March 20, 2025 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

TransAlta Corp

Sound bite for Twitter is: Dividend Growth Utility. Results of stock price testing is that the stock price is seems to point to a relatively expensive price. Debt Ratios are awful. The Dividend Payout Ratios (DPR) are good. The current dividend yield is low with dividend growth low. See my spreadsheet on TransAlta Corp.

Is it a good company at a reasonable price? This company has come off its recent high of $20.89 in January 2025, but it is still testing as relatively expensive using the P/S Ratio. Ultimately, you need increasing revenue to increase both earnings and cash flow. Analysts expect Revenue to decline in 2025 and 2026. That does not inspire confidence in me that the current price is reasonable. It is good that they are increasing the dividends, but this is at the expense of DPR. This does not inspire confidence either. I know that a number of analysts rate it as a buy, but most stocks are rated as Buys, so this does not help either. I find it currently relatively expensive.

I do not own this stock of TransAlta Corp (TSX-TA, NSYE-TAC). I bought this stock in 1987. It was a utility stock and utility stocks were considered to be good investments. I sold some in 2000 as the stock price was below what I had paid for it. I bought some more in February 2009 because it was relatively cheap and it seemed to be recovering. I sold more in August 2012 as this company was doing poorly again. By September 2019, I had finally had enough and saw no hope in this stock doing better. I noticed that MPL communications had given up hope in 2014.

When I was updating my spreadsheet, I noticed the stock price was high at the end of 2024 at $20.33 with an 84.5% gain, but is down to $13.40 currently with a year to loss of 34%. I also noticed a couple of officers I follow decreased their share holdings from last year, but the CEO and Chairman both bought shares.

I noticed that if I had held on to my shares that I bought in 1987, I would be making a dividend yield on the original stock price of just 1.79%. It may be a dividend growth stock again, but dividends are really low and exceptionally for long term holders.

If you had invested in this company in December 2014, for $1,009.92 you would have bought 96 shares at $10.52 per share. In December 2024, after 10 years you would have received $240 in dividends. The stock would be worth $1,951.68. Your total return would have been $2,191.68. This would be a total return of 8.79% per year with 6.81% from capital gain and 1.98% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$10.52	$1,009.92	96	10	$240.00	$1,951.68	$2,191.68

The current dividend yield is low with dividend growth low. The current dividend yield is low (below 2%) at 1.89%. The 5 year median dividend yield is low at 1.63%. The 10 year median dividend yield is moderate (2% to 4% ranges) at 2.03%. The historical median dividend yield is good (5% to 6% ranges) at 5.35%.

The dividend increases are low (below 8% per year) at 7.99% per year over the past 5 years. The last dividend increase was in 2025 and it was for 9.09%. There were a number of decreases to the dividends between 2014 and 2017. Dividends have been increasing since 2020.

The Dividend Payout Ratios (DPR) are good. The DPR for 2024 for Earnings per Share (EPS) is at 40% with 5 year coverage non-calculable because of earnings loss. The DPR for 2024 for Adjusted Funds from Operations (AFFO) is good at 13% with 5 year coverage at 8%. The DPR for 2024 for Funds from Operations (FFO) is good at 4% with 5 year coverage at 5%.

The DPR for 2024 for Cash Flow per Share (CFPS) is good at 9% with 5 year coverage at 6%. The DPR for 2024 for Free Cash Flow 1 (FCF 1) is good non-calculable due to negative FCF with 5 year coverage good at 16%. The DPR for 2024 for Free Cash Flow 2 (FCF 2) is good at 12% with 5 year coverage good at 8%. This last FCF is value provided by the company and estimates are based on this FCF.

Item	Cur	5 Years
EPS	39.83%	N/C
AFFO	12.57%	8.27%
FFO	4.42%	5.34%
CFPS	9.22%	6.00%
FCF 1	N/C	15.71%
FCF 2	12.48%	8.32%

Debt Ratios are awful. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.54 and currently rather high at 0.81. The Liquidity Ratio for 2024 is much too low at 0.69 and 0.69 currently. If you added in Cash Flow after dividends, the ratios are still much too low at 0.97 and currently at 0.92. If you take off the current portion of the debt the ratio is still low at just 1.25. I prefer this ratio to be 1.50 or higher. The Debt Ratio for 2024 is too low at 1.24 and 1.24 currently. I prefer this ratio to be 1.50 or higher. The Leverage and Debt/Equity Ratios for 2024 are far too high at 5.15 and 4.15 and currently at 5.15 and 4.15.

Type	Year End	Ratio Curr
Lg Term R	0.54	0.81
Intang/GW	0.13	0.20
Liquidity	0.69	0.69
Liq. + CF	0.97	0.92
Debt Ratio	1.24	1.24
Leverage	5.15	5.15
D/E Ratio	4.15	4.15

The Total Return per year is shown below for years of 5 to 37 to the end of 2024. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2019	5	7.99%	18.55%	16.98%	1.57%
2014	10	-11.85%	8.79%	6.81%	1.98%
2009	15	-10.10%	1.58%	-0.96%	2.54%
2004	20	-6.98%	4.59%	0.60%	3.99%
1999	25	-5.63%	6.84%	1.46%	5.38%
1994	30	-4.65%	6.68%	1.13%	5.55%
1989	35	-4.00%	6.84%	1.02%	5.82%
1987	37	-3.62%	6.77%	0.94%	5.83%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 4.36, 5.18 and 6.00. They are low because of negative P/E Ratios. The corresponding 10 year ratios are negative and useless. The historical ratios are 14.85, 15.26 and 21.19. The current ratio is 37.55 based on a stock price of $13.78 and EPS estimate for 2025 of $0.37. The current ratio is higher than the high ratio of the historical median ratios. This stock price testing suggests that the stock price is relatively expensive.

I also have Adjusted Funds from Operations (AFFO) data. The 5-year low, median, and high median Price/Adjusted Funds from Operations Ratios are 4.25, 5.83 and 6.95. The corresponding 10 year ratios are 3.94, 5.63 and 7.10. The current P/AFFO Ratio is 8.51 based on a stock price of $13.78 and AFFO estimate for 2025 of $1.62. The current ratio is higher than the high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive.

I also have Funds from Operations (FFO) data. The 5-year low, median, and high median Price/Funds from Operations Ratios are 2.22,3.36 and 4.04. The corresponding 10 year ratios are 2.13, 2.83 and 3.39. The current P/AFFO Ratio is 5.67 based on a stock price of $13.78 and AFFO estimate for 2025 of $2.43. The current ratio is higher than the high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $12.16. The 10-year low, median, and high median Price/Graham Price Ratios are 0.31, 0.43 and 0.60. The current ratio is 1.13 based on a stock price of $13.87. This stock price testing suggests that the stock price is relatively expensive. I am using the FFO values in this calculation because too many of the Graham Prices over the last 10 years have been estimated because of earnings losses.

I get a 10-year median Price/Book Value per Share Ratio of 1.37. The current P/B Ratio is 5.10 based on a Book Value of $804M, Book Value per Share of $2.70 and a stock price of $13.87. The current ratio is 271% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I also have a Book Value per Share estimate for 2025 of $2.96. The analysts calculated the book value different that I do and under this method the 10 year ratio is 0.84. The stock price of $13.87 implies a Book Value of $881M and a ratio of 4.66. This ratio is 251% above the 10 year ratio. This stock price testing suggests that the stock price is relatively expensive.

I get a 10-year median Price/Cash Flow per Share Ratio of 3.25. The current ratio is 6.17 based on Cash Flow per Share estimate for 2025 of $2.24, Cash Flow of $665M and a stock price of $13.87. The current ratio is 90% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I get an historical median dividend yield of 5.35%. The current dividend yield is 1.89% based on a dividend of $0.25 and a stock price of $13.87. The current ratio is 65% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive. This test is probably not valid because dividend had been decreasing between 2014 and 2017 by about 86%.

I get a 10 median dividend yield of 2.03%. The current dividend yield is 1.89% based on a dividend of $0.25 and a stock price of $13.87. The current ratio is 7% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median. This test is probably not valid because dividend had been decreasing between 2014 and 2017 by about 86%. 10 year goes back to 2015. In any case, decreasing dividends is a negative thing.

The 10-year median Price/Sales (Revenue) Ratio is 1.05. The current ratio is 1.66 based on Revenue estimate for 2025 of $2,473, Revenue per Share of $8.31 and a stock price of $13.87. The current ratio is 57% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

Results of stock price testing is that the stock price is seems to point to a relatively expensive price. The 10 year dividend yield testing is pointing to a reasonable stock price but above the median. However dividends have been cut a lot in the past 10 years and dividend cuts are never good. The P/S Ratio test is pointing to a relatively expensive stock price. All the other testing is pointing to a relatively expensive stock price.

When I look at analysts’ recommendations, I find Strong Buy (3), Buy (3), Hold (3) and Underperform (1). The consensus would be a Buy. The 12 month consensus stock price if $19.45 with a high of $23.00 and low of $14.00. The consensus 12 month stock price implies a total return of 43.03% with 41.15% from capital gains and 1.89% from dividends.

The only analysts on Stock Chase for 2025 says that the company is back on track. Stock Chase gives this stock 5 stars out of 5. Unbelievable! Andrew Button on Motley Fool does an interesting comparison between this company and Brookfield Renewables. Jitendra Parashar on Motley Fool says he is keeping an eye on this company to buy cheap because it offers solid growth potential. The company put out a Press Release about their fourth quarter of 2024 results.

Simply Wall Street via Yahoo Finance talks about the company missing expectations. Simply Wall Street via Yahoo Finance reviews this stock. There is also a review by Guru Focus via Yahoo Finance. Simply Wall Street has 3 warnings of earnings are forecast to decline by an average of 14.1% per year for the next 3 years; interest payments are not well covered by earnings; and profit margins (6.2%) are lower than last year (19.2%). Simply Wall Street gives this stock one and one half stars out of 5.

TransAlta Corp is an independent power producer based in Alberta, Canada. The company operates a diverse and growing fleet of electrical power generation assets in Canada, the United States, and Australia. The company has six reportable segments namely, Hydro, Wind & Solar, Energy Marketing, Gas, Energy Transition segment and Corporate Segment. The company generates the majority of its revenue from the gas segment. Its web site is here TransAlta Corp.

The last stock I wrote about was about was Enbridge Inc (TSX-ENB, NYSE-ENB) ... learn more. The next stock I will write about will be TC Energy Corp (TSX-TRP, NYSE-TRP) ... learn more on Wednesday, March 19, 2025 around 5 pm. Tomorrow on my other blog I will write about Wealthsimple.... learn more on Tuesday, March 18, 2025 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Enbridge Inc

Sound bite for Twitter is: Dividend Growth Utility. Results of stock price testing is that the stock price is probably expensive. The Dividend Payout Ratios (DPR) are too high. Debt Ratios need to improve. The current dividend yield is good with dividend growth low. See my spreadsheet on Enbridge Inc.

Is it a good company at a reasonable price? I am holding on to the share that I have and have no intentions of selling. I still think over the long term I will do well, but I think at present that they have a problem of not affording the dividend they are paying. I think that this will resolve itself in the future. I know that Simply Wall Street thinks it is undervalued. Analysts’ recommendations are all over the place. One analyst thinks the stock price will be rangebound for a while. However, the dividends yield is currently good. My testing is showing that the stock price is probably expensive. None of my tests are showing the stock as cheap.

I own this stock of Enbridge Inc (TSX-ENB, NYSE-ENB). I first bought this stock in 2005 and then bought more in 2008 and 2009. This stock was on the Dividend Achievers, the Dividend Aristocrats list and also on Mike Higgs’ list of Canadian Dividend Growth stocks. Enbridge is considered to be a low risk stock.

When I was updating my spreadsheet, I noticed that my total return to the end of February 2025 was 12.65% with 7.15% from capital gains and 5.50% from dividends. Currently the stock price is holding up well being down just 1% since the end of last year. There is a big difference in return for shares purchased 5 or 10 years ago. See paragraphs below.

If you had invested in this company in December 2014, for $1,015.58 you would have bought 17 shares at $59.74 per share. In December 2024, after 10 years you would have received $497.40 in dividends. The stock would be worth $1,037.17. Your total return would have been $1,534.57. This would be a total return of 4.93% per year with 12.56% from capital gain and 4.72% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$59.74	$1,015.58	17	10	$497.40	$1,037.17	$1,534.57

If you had invested in this company in December 2018, for $1,032.60 you would have bought 20 shares at $51.63 per share. In December 2024, after 5 years you would have received $351.49 in dividends. The stock would be worth $1,220.20. Your total return would have been $1,571.9*. This would be a total return of 9.63% per year with 3.40% from capital gain and 6.24% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$51.63	$1,032.60	20	5	$351.49	$1,220.20	$1,571.69

The current dividend yield is good with dividend growth low. The current dividend yield is good (5% and 6% ranges) at 6.13%. The 5 and 10 year median dividend yields are also good at 6.98% and 6.29%. The historical median dividend yield is moderate (2% to 4% ranges) at 3.73%. The dividend growth is low (below 8% per year) at 4.4% per year over the past 5 years. The last dividend increase was in 2025 and it was for 3%.

The Dividend Payout Ratios (DPR) are too high. The DPR for 2024 for Earnings per Share (EPS) is too high at 156% with 5 year coverage at 159%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is too high at 131% with 5 year coverage at 127%. The DPR for 2024 for Cash Flow per Share (CFPS) is too high at 75% with 5 year coverage at 75%. The DPR for 2024 for Free Cash Flow 1 (FCF 1) is too high at 125% with 5 year coverage at 133%. The DPR for 2024 for Free Cash Flow 2 (FCF 2) is too high at 118% with 5 year coverage at 114%. Analysts see the DPRs improving over the next few years, but they will still be in the too high range.

Item	Cur	5 Years
EPS	156.41%	159.39%
AEPS	130.71%	127.06%
CFPS	75.12%	75.46%
FCF 1	125.45%	133.61%
FCF 2	118.00%	114.10%

Debt Ratios need to improve. The Long Term Debt/Market Cap Ratio for 2024 is fine at 0.70 and currently at 0.70. The Liquidity Ratio for 2024 is good at 1.55 and 1.50 currently. If you added in Cash Flow after dividends, the ratios are still too low at 0.75 and currently at 0.81. If you added back the current portion of the debt, the ratios are still too low at 1.11 and currently at 1.19. This ratio should be at 1.50 or higher. The Debt Ratio for 2024 is fine at 1.46 and 1.46 currently. The Leverage and Debt/Equity Ratios for 2024 are too high at 3.18 and 2.18 and currently at 3.18 and 2.18. I prefer these ratios to be below 3.00 and 2.00.

Type	Year End	Ratio Curr
Lg Term R	0.70	0.70
Intang/GW	0.31	0.31
Liquidity	0.55	0.55
Liq. + CF	0.75	0.81
Liq. + CF+D	1.11	1.19
Debt Ratio	1.46	1.46
Leverage	3.18	3.18
D/E Ratio	2.18	2.18

The Total Return per year is shown below for years of 5 to 34 to the end of 2024. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2019	5	4.39%	9.63%	3.40%	6.24%
2014	10	10.09%	4.93%	0.21%	4.72%
2009	15	11.25%	11.81%	6.32%	5.48%
2004	20	10.96%	12.41%	7.29%	5.12%
1999	25	10.54%	14.49%	8.95%	5.54%
1994	30	9.36%	16.21%	9.93%	6.28%
1990	34	8.21%	11.11%	7.06%	4.05%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 19.29, 22.81 and 26.34. The corresponding 10 year ratios are 20.33, 24.40 and 28.48. The corresponding historical ratios are 18.05, 19.35 and 23.62. The current ratio is 20.39 based on a stock price of $61.53, and EPS estimate for 2025 of $3.02. The current ratio is between the low and median ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 15.46, 18.85 and 21.19. The corresponding 10 year ratios are 16.06, 18.96 and 21.97. The current P/AEPS Ratio is 20.17 based on a stock price of $61.53 and AEPS estimate for 2025 of $3.05. The current ratio is between the median and high ratios of the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I also have Adjusted Funds from Operations (AFFO) data. The 5-year low, median, and high median Price/Adjusted Funds from Operations Ratios are 8.12, 9.64 and 10.99. The corresponding 10 year ratios are 8.80, 10.19 and 11.35. The current P/AFFO Ratio is 10.70 based on a stock price of $61.53 and AFFO estimate for 2025 of $5.75. The current ratio is between the median and high ratios of the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a Graham Price of $42.81. The 10-year low, median, and high median Price/Graham Price Ratios are 1.08, 1.26 and 1.48. The current P/GP Ratio is 1.44 based on a stock price of $61.53. The current ratio is between the median and high ratios of the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a 10-year median Price/Book Value per Share Ratio of 1.88. The current ratio is 2.30 based on a Book Value of $58,153M, Book Value per Share of $26.70 and a stock price $61.53. The current ratio is 23% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I also have a Book Value per Share estimate for 2025 of $26.75. This analyst calculates the Book Value differently than I do, so here the 10 year median ratio is 1.65. With a stock price of $61.53, the ratio is 2.30 with a Book Value of $58,262M. The current ratio is 39% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I get a 10-year median Price/Cash Flow per Share Ratio of 9.63. The current ratio is 9.42 based on a Cash Flow per Share estimate for 2025 of $6.53, Cash Flow of $14,229M and a stock price of $61.53. The current ratio is 2% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get an historical median dividend yield of 3.73%. The current dividend yield is 6.13% based on dividends of $3.77 and a stock price of $61.53. The current ratio is 64% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median dividend yield of 6.29%. The current dividend yield is 6.13% based on dividends of $3.77 and a stock price of $61.53. The current ratio is 2.5% below the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.

The 10-year median Price/Sales (Revenue) Ratio is 2.05. The current ratio is 3.17 based on a stock price of $61.53, Revenue estimate for 2025 of $42,308M and Revenue per Share of $19.43. The current ratio is 55% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

Results of stock price testing is that the stock price is probably expensive. I know that the dividend yield testing for the 10 year median yield is showing as reasonable and above the median and the historical one says that the stock price is cheap. However, you have to wonder if the company can currently afford the dividends that it is paying. The P/S Ratio test is saying that the stock price is relatively expensive and I am going with this. Most of the rest of the testing is saying that the stock price is reasonable but above the median.

When I look at analysts’ recommendations, I find Strong Buy (7), Buy (3), Hold (11) and Sell (1). The consensus would be a Buy. The 12 month stock price consensus is $64.42 with a high of $75.00 and low of $52.00. The consensus stock price of $64.42 implies a total return of $10.82% with 4.70% from capital gains and $6.13% from dividends based on a stock price of $61.53.

Analysts on Stock Chase mostly give it a buy, but there are a few descenders, and they think the stock will be rangebound for a while. Stock Chase gives it 5 stars out of 5. Rajiv Nanjapla on Motley Fool thinks this stock is an excellent buy for income-seeking investors. Puja Tayal on Motley Fool talks about possible effects of US tariffs. The company put out a Press Release about their fourth quarter of 2025 results.

Simply Wall Street via Yahoo Finance thinks that this stock is undervalued and its fair value is $92.23 CDN$. Simply Wall Street has two warnings out interest payments are not well covered by earnings; and dividend of 6.14% is not well covered by earnings or free cash flows.

Enbridge owns extensive midstream assets that transport hydrocarbons across the us and Canada. The firm has a small renewables portfolio primarily focused on onshore and offshore wind projects. Its web site is here Enbridge Inc.

The last stock I wrote about was about was H & R Real Estate Trust (TSX-HR.UN, OTC-HRUFF) ... learn more. The next stock I will write about will be TransAlta Corp (TSX-TA, NSYE-TAC) ... learn more on Monday, March 17, 2025 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

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