Is it a good company at a reasonable price? This is a volatile small cap stock, so you should not invest any money in this stock that you cannot afford to lose. It is an interesting stock. It is a positive that they restarted the dividends and have given out special dividends. Another positive is the good debt ratios. A negative is how volatile some values are. The stock price is testing as reasonable.
I do not own this stock of Pulse Seismic Inc (TSX-PSD, OTC-PLSDF). I got this stock through a Stock Filter. I asked for companies that were worth between $1 and $5.50 and had a yield between 4% and 20%. I was looking for filler stocks for my TFSA and this was one of 5 companies that I got and looked into. This is not a stock I chose, but I found it of interest so I am following it.
When I was updating my spreadsheet, I noticed that changes in values are often high. Look at percentage change each year over past 5 years from Revenue, Shareholder Free Cash Flow, Cash Flow from Operations and EBITDA. Values go up and down a lot. For example, Revenue in 2022 was $9.57M and in 2023 $39.12M for a change of 309%
| Item | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|
| Revenue | 137% | -53% | 333% | -81% | 309% |
| Shareholder FCF | 178% | -60% | 500% | -90% | 683% |
| CFFO | -367% | -56% | 686% | -60% | 100% |
| EBITDA | 251% | -57% | 472% | -95% | 1395% |
If you had invested in this company in December 2013, for $1,001.11 you would have bought 209 shares at $4.79 per share. In December 2023, after 10 years you would have received $135.07 in dividends. The stock would be worth $388.74. Your total return would have been $523.81. This would be a total loss of 6.82% per year with 9.03% from capital loss and 2.20% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $4.79 | $1,001.11 | 209 | 10 | $135.07 | $388.74 | $523.81 |
The current dividend yield is moderate with dividends and growth restarting and with some special dividends. The current dividend yield is moderate (2% to 4% ranges) at 2.56%. The 5 and 10 year median dividend yields are low (below 2%) at 0.71% and 0.35% because of a number of years of no dividends. The historical median dividend yield is moderate at 2.14%. Dividends were stopped between 2016 and 2020, but there was a special dividend in 2017.
The Dividend Payout Ratios (DPR) are fine, but there were a number of years with no dividends. The DPR for 2023 for Earnings per Share (EPS) is fine at 73% with 5 year coverage at 90%. The DPR for 2023 for Adjusted Earnings per Share (AEPS) is good at 46% with 5 year coverage at 21%. The DPR for 2023 for Cash Flow per Share (CFPS) is good at 9% with 5 year coverage at 16%. The DPR for 2023 for Free Cash Flow (FCF) is good at 12% with 5 year coverage at 54%.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 72.77% | 90.07% |
| AEPS | 46.31% | 21.27% |
| CFPS | 9.01% | 16.36% |
| FCF | 12.02% | 54.73% |
Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2023 is good at 0.00 and currently at 0.00. The Liquidity Ratio for 2023 is good at 1.50 and 3.75 currently. The Debt Ratio for 2023 is good at 20.41 and 24.15 currently. The Leverage and Debt/Equity Ratios for 2023 are good at 1.61 and 0.61 and currently at 1.17 and 017.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.00 | 0.00 |
| Intang/GW | 0.19 | 0.13 |
| Liquidity | 1.50 | 3.75 |
| Liq. + CF | 2.87 | 10.39 |
| Debt Ratio | 20.41 | 24.15 |
| Leverage | 1.61 | 1.17 |
| D/E Ratio | 0.61 | 0.17 |
The Total Return per year is shown below for years of 5 to 25 to the end of 2023. 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. |
|---|---|---|---|---|---|
| 2018 | 5 | 0.00% | 7.90% | 4.54% | 3.36% |
| 2013 | 10 | -3.90% | -6.82% | -9.03% | 2.20% |
| 2008 | 15 | -8.39% | 4.45% | 1.35% | 3.09% |
| 2003 | 20 | 0.36% | 5.83% | 1.12% | 4.71% |
| 1998 | 25 | 13.00% | 6.08% | 6.92% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are negative and useless. The corresponding 10 year ratios are also negative and useless. The corresponding historical ratios are 2.36, 4.43 and 5.71. The current P/E Ratio is 8.36 based on a stock price of $2.34 and EPS for the last 12 months of $0.28. A P/E Ratio of 8.36 is a low ratio. This stock price testing suggests that the stock price is relatively cheap.
I also have Shareholders Free Cash Flow (FCF) data from the company. The 5-year low, median, and high median Price/ Shareholders Free Cash Flow Ratios are 7.10, 9.04 and 10.32. The corresponding 10 year ratios are 7.43, 9.64 and 11.49. The current P/FCF Ratio is 4.98 based on Shareholders FCF for last 12 months of $0.47. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I also have Cash Flow from Operations (CFFO) data from the company. The 5-year low, median, and high median Price/ Cash Flow from Operations Ratios are 7.59, 10.41 and 13.23. The corresponding 10 year ratios are 6.40, 8.47 and 10.54. The current P/FCF Ratio is 4.33 based on Cash Flow from Operations for last 12 months of $0.54. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I get a Graham Price of $1.78. The 10-year low, median, and high median Price/Graham Price Ratios are 0.98, 1.25 and 1.51. The current ratio 1.31 based on a stock price of $2.34. This 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. You wonder how good this test is because the all the recent years with earning losses.
I get a 10-year median Price/Book Value per Share Ratio of 3.57. The current ratio is 4.64 based on a stock price of 2.34, Book Value of $26.5M, and Book Value per Share of $0.50. The current ratio is 30% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. The stock is failing this test because Book Value and Book Value per Share is declining.
I get a 10-year median Price/Cash Flow per Share Ratio of 8.21. The current ratio is 4.31 based on a stock price of $2.34, Cash Flow for the last 12 months of $28.6M and Cash Flow per Share of $0.54. The current ratio is 47% 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 2.14%. The current dividend is 2.56% based on a stock price of $2.34 and dividends of $0.06. The current dividend yield is 19.8% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a 10 year median dividend yield of 0.35%. If you look at the 5 years over the past 10 years when there were dividends, the median yield is 2.18%. The current dividend is 2.56% based on a stock price of $2.34 and dividends of $0.06. The current dividend yield is 17% 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 6.07. The current ratio is 5.84 based on Revenue estimate for 2024 of $21.1M, Revenue per Share of $0.40 and a stock price of $2.34. 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.
Results of stock price testing is that the stock price is probably reasonable. The dividend yield testing is saying that the stock price is reasonable. This is confirmed by the P/S Ratio test. Most of the rest of the testing is saying that the stock price is relatively cheap or reasonable.
When I look at analysts’ recommendations, I find a Buy (1) recommendation. The consensus recommendation would be a Buy. The 12 months stock price consensus is $3.00. Note that these seems to be only 1 analyst following this stock. The consensus stock price of $3.00 implies a total return of 30.77% with 28.21% from capital gains and 2.56% from dividends based on a stock price of $2.34.
The last comment was in 2018 on Stock Chase. The analyst said they there was not enough volume to analyze. Stock Chase gives this stock 1 star out of 5. Karen Thomas on Motley Fool reviewed this stock in 2023. Ambrose O'Callaghan on Motley Fool also reviews this stock in 2023. He reviewed this stock and decided to buy. The company put out a press release via Newswire about their first quarter of 2024. The company put out a press release via The Canadian Press about their results for 2023.
Simply Wall Street via Yahoo Finance recently reviewed this stock. Simply Wall Street has two warnings out on this stock of unstable dividend track record; and does not have a meaningful market cap (CA$121M).
Pulse Seismic Inc is a Canadian company which acts as a provider of seismic data to the energy sector in western Canada. Its web site is here Pulse Seismic Inc.
The last stock I wrote about was about was Dorel Industries Inc (TSX-DII.B, OTC-DIIBF) ... learn more. The next stock I will write about will be TECSYS Inc (TSX-TCS, OTC-TCYSF) ... learn more on Monday, July, 22, 2024 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.
No comments:
Post a Comment