Andrew Peller Ltd

Sound bite for Twitter and StockTwits is: Dividend growth consumer. They have done very well lately, but I think that the price is too high. It would be a good one to keep an eye on and buy when the stock market gets into some difficulties. See my spreadsheet on Andrew Peller Ltd.

I do not own this stock of Andrew Peller Ltd. (TSX-ADW.A, OTC-ADWPF). This stock was on Mike Higgs' dividend growth stock list. I owned this stock as Andres Wines Ltd between 1996 and 2000.

What I noticed doing the spreadsheet is that this company has been doing quite well lately, especially from 2010. Revenue per Share growth is 4.50% and 4.65% per year over the past 5 and 10 years. The EPS growth is even better at 15.60% and 11.44% per year over the past 5 and 10 years. CFPS has grown at 6.61% and 10.28% per year over the past 5 and 10 years.

The total return for shareholders over the past 5 and 10 years is at28.65% and 15.62% per year. The portion of this total return attributable to dividends is 2.46% and 2.46% per year. The portion of this total return attributable to capital gain is 26.18% and 13.15% per year.

The company only started to increase their dividends in 2007. Before that dividends were flat for at least 18 years. My spreadsheet starts in 1988. The 5 and 10 year dividend growth rates are 3.63% and 6.61% per year. However, dividends have been higher for the past 3 years and the last dividend increase was for 10.3% in 2017.

The current dividend yield is low at just 1.67%. The dividends used to much higher. The historical median dividend yield is 3.84%. Even the 5 and 10 year median dividend yields are higher at 2.74% and 3.26%.

They can afford their dividends. The Dividend Payout Ratio for EPS was 25% in 2017. (Note that the financial year ends in March each year. So, the last annual statement is dated March 31, 2017.). It is interesting that the 5 year median DPR for EPS is higher at 34%.

The other thing was the current very good debt ratios. The Liquidity Ratio for 2017 is 1.96 with a 5 year median of 1.89. The Liquidity Ratio has been lower in the past as the 10 year median is just 1.38. The Debt Ratio for 2017 is 2.18 with a 5 year median ratio of 1.96. The Leverage and Debt/Equity Ratios for 2018 are 1.85 and 0.85. These also have been higher in the past with a 5 year median of 2.31 and 1.31.

The 5 year low, median and high median Price/Earnings per Share Ratios are 11.25, 13.08 and 14.35. The corresponding 10 year values are 10.52, 12.01 and 13.21. The historical values are 10.75, 12.78 and 14.30. The current P/E Ratio is 17.95 based on a stock price of $10.77 and 2018 EPS estimate of $0.60. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $7.61. The 10 year low, median and high median Price/Graham Price Ratios are 0.71, 0.87 and 0.99. The current P/GP Ratio is 1.42 based on a stock price of $10.77. 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 1.38. The current P/B Ratio is 2.51 based on a Book Value of $182.6M, BVPS of $4.29 and a stock price of $10.77. The current P/B Ratio is some 83% higher than the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

The current dividend yield is 1.67% based on dividends of $0.18 and a stock price of $10.77. The historical dividend yield median is 3.84% a value some 56% higher. Even the 5 year median is quite a bit higher at 2.74% and 39% higher. This stock price testing suggests that the stock price is relatively expensive.

When I look at analysts' recommendations, I find one Buy recommendation. There seems to be only one analyst following this stock. The 12 month stock price consensus is $13.50. This implies a total return of 27.02% with 25.35% from capital gains and 1.67% from dividends.

SDR staff on Stock Daily Review says that tracking this stock's price shows a Hold signal. Will Ashworth of Motley Fool gives this stock a good review and talks about their win with Gretzky. See what analysts are saying about this stock on Stock Chase. They like this stock.

Andrew Peller Limited is a leading producer and marketer of quality wines in Canada. With wineries in British Columbia, Ontario and Nova Scotia, the Company markets wines produced from grapes grown in Ontario's Niagara Peninsula, British Columbia's Okanagan and Similkameen Valleys and vineyards around the world. They also market craft beer under the Granville Island brand. The Company produces and markets consumer-made wine kit products through Winexpert and Vineco International Products. The Company's products are sold predominantly in Canada. Class A shares are non-voting.. Its web site is here Andrew Peller Ltd.

The last stock I wrote about was about was Superior Plus Corp. (TSX-SPB, OTC-SUUIF)... learn more. The next stock I will write about will be Badger Daylighting Ltd. (TSX-BAD, OTC- BADFF)... learn more on August 30, 2017 around 5 pm. Tomorrow on my other blog I will write about Dividend Growth Stocks... learn more on August 29, 2017 around 5 pm.

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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