Goodfellow Inc.

On my other blog I am today writing about the effect of changes to outstanding shares for a company continue...

I own this stock of Goodfellow Inc. (TSX-GDL, OTC- GFELF). I started to look at this stock when I was searching for small cap stocks that paid dividends. It looked like an interesting stock. Goodfellow is a small cap stock that the Investor Reporter has written about a number of times.

Dividends are paid twice a year. Dividends are declared ahead of payment and they can go down and well as up. Over the past 10 years dividends are up by just 2.8% per year. Over the past 5 years, dividends have gone up and down, but ended the 5 year period at the same amount as they started. That is there was 0% increase in dividends.

Dividends are quite good, as the current dividend yield is 4.88%. The 5 year median dividend yield is lower at 3.85%. For the stock I bought in 2010, I am earning a dividend yield of 4.15%.

The stock has been struggling lately. It was badly hit in both the recent recessions. I have lost around 3% per year on this stock. The total return for the last 5 and 10 years is 0.55% and 2.79% per year. The capital loss is at 2.95% and 1.59% per year over the past 5 and 10 years. Dividends are at 3.51% and 4.39% per year.

Revenue per Share is up by 2.9% and down by 0.1% per year over the past 5 and 10 years. EPS is down by 8.2% and 7.1% per year over the past 5 and 10 years. Cash Flow per Share is up by 10% and down by 0.7% per year over the past 5 and 10 years.

The Return on Equity has only been higher than 10% once in the past 5 years and that was 5 years ago. The ROE for 2014 was 5.8% and the 5 year median is just 4.5%. For 2014 the ROE on Comprehensive Income was a little lower than that for net income and was at 5.7%. The 5 year median ROE is 4.5%.

The debt ratios are good and they have always been good. The Liquidity Ratio for 2014 is 2.21 and the Debt Ratio for 2014 is 2.56. The Leverage and Debt/Equity Ratios are also quite good at 1.64 and 0.64, respectively. However, the company is in a negative cash position due to a bank overdraft.

Sound bite for Twitter and StockTwits is: Struggling small cap. At the moment I intend to hold on to the shares I have in this company. I bought this stock to try it out and have not investment much. See my spreadsheet at gdl.htm.

This is the first of two parts. The second part will be posted on Thursday, February 26, 2015 and will be available here. The first part talks about the stock and the second part talks about the stock price.

Goodfellow Inc. is one of eastern Canada's largest independent re-manufacturers and distributors of lumber and hardwood flooring products. The company serves customers throughout Canada, the United States and abroad including the UK and China and the Middle East. H.Q is Delson, Quebec, just outside Montreal. It is about 60% owned by insiders. Its web site is here Goodfellow.

This blog is meant for educational purposes only, and is not to provide investment advice. 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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