Is it a good company at a reasonable price? I bought this stock with my fooling around money. Fooling around money is money you can afford to lose. I still like this company and I plan to hold on to my shares and maybe buy more for the TFSA. I think that the stock price is testing as reasonable.
I own this stock of Propel Holdings Inc. (TSX-PRL, OTC-PRLPF). When I was reading an article by Aditya Raghunath's on EQB, he also mentions this stock. I thought the stock looked interesting. See the Article. There was also an article on CANTECH . Beaten down Propel Holdings is a buy, Ventum says
When I was updating my spreadsheet, I noticed that I have lost money on this stock. I bought close to what now appears to be the top of the market for this stock in December 2024 and January 2025. I am down by 29% per year. I bought this stock first in December 2024. I have not had it for long. However, this company is still growing its Revenue and Earnings and analysts expect that this will continue.
Of the management people I follow, the CEO and Chairman both sold shares in the last 12 months. However, the CEO, an officer, and a director that I follow bought shares. The thing is that you never know why people sell shares, but they tend to buy them because they feel good about the company’s future.
If you had invested in this company in December 2020, for $1,000.00 you would have bought 97 shares at $10.34 per share. In December 2024, after 4 years you would have received $63.83 in dividends. The stock would be worth $3,558.03. Your total return would have been $3,721.86. This would be a total return of 39.94% per year with 37.34% from capital gain and 2.90% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $10.34 | $1,000.00 | 97 | 4 | $163.83 | $3,558.03 | $3,721.86 |
The current dividend yield is moderate with dividend growth good. The current dividend yield is moderate (2% to 4% ranges) at 3.37%. The 5 year median dividend yield is also moderate at 2.77%. Dividends have only been paid for 5 years. The dividend growth is good (over 15% per year) at 75.5% per year over the past 5 years.
The Dividend Payout Ratios (DPR) are good. The DPR for 2024 for Earnings per Share (EPS) is good at 33% with 5 year coverage at 48%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is good at 24% with 5 year coverage at 40%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 6% with 5 year coverage at 7%. The DPR for 2024 for Free Cash Flow (FCF) is good at 21% with 5 year coverage at 29%. Where I look, the FCF is negative from a negative $39.9M to a negative 56M. It is the negative $40.1M that I am using. This is not good, but it is not my favourite value to look for DPR.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 33.47% | 47.54% |
| AEPS | 24.90% | 39.97% |
| CFPS | 5.78% | 6.88% |
| FCF | -34.89% | -22.60% |
Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.29 and currently at 0.43. The Liquidity Ratio for 2024 is good at 9.46 and 11.92 currently. But this is a financial company, so, these ratios are not important. The Debt Ratio for 2024 is good at 1.62 and 1.68 currently. The Leverage and Debt/Equity Ratios for 2024 are fine at 2.62 and 1.62 and currently at 2.46 and 1.46.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.29 | 0.43 |
| Intang/GW | 0.07 | 0.11 |
| Liquidity | 9.46 | 11.92 |
| Liq. + CF | 8.70 | 11.50 |
| Debt Ratio | 1.62 | 1.68 |
| Leverage | 2.62 | 2.46 |
| D/E Ratio | 1.62 | 1.46 |
The Total Return per year is shown below for 4 years to the end of 2024 in CDN$. 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. |
|---|---|---|---|---|---|
| 2020 | 4 | 75.46% | 39.94% | 37.34% | 2.60% |
The Total Return per year is shown below for 3 years of to the end of 2024 in US$. 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. |
|---|---|---|---|---|---|
| 2021 | 3 | 74.83% | 59.02% | 55.63% | 3.39% |
The 3-year low, median, and high median Price/Earnings per Share Ratios are 9.68, 17.18 and 24.68. The current P/E Ratio is 11.08 based on a stock price of $25.24 and EPS estimate for 2025 of $2.28 ($1.66 US$). The current ratio is between the low and median ratios of the 3 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in CDN$.
I also have Adjusted Earnings per Share (AEPS) data. The 3-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 7.16, 12.72 and 18.27. The current P/E Ratio is 10.17 based on a stock price of $25.24 and EPS estimate for 2025 of $2.48 ($1.81 US$). The current ratio is between the low and median ratios of the 3 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in CDN$.
I get a Graham Price of $21.65. The 4-year low, median, and high median Price/Graham Price Ratios are 0.70, 1.21 and 1.74. The current ratio is 1.17 based on a Stock price of $25.24. The current ratio is between the low and median ratios of the 3 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in CDN$.
I get a 4-year median Price/Book Value per Share Ratio of 2.68. The current P/B Ratio is 2.77 based on a Book Value of $260.17M, Book Value per Share of $6.61 and a stock price of $18.30. The current ratio is 3% above the 4 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in US$ and you will get a similar result in CDN$.
I also have Book Value per Share estimate for 2025 of $6.70. This implies a ratio of 2.73 with a Book Value of $263.5M and a stock price of $18.30. This ratio is 18% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in US$.
I cannot do any Price/Cash Flow per Share Ratio testing because of negative cash flows.
I get a 4- year and historical median dividend yield of 3.48%. The current dividend yield is 3.33% based on a stock price of $25.24 and dividends of $0.84. The current yield is 4% below the 4 year and historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in CDN$. Dividends are paid in CDN$.
The 5-year median Price/Sales (Revenue) Ratio is 1.32. The current ratio is 1.22 based on a stock price of $25.24, Revenue estimate for 2025 of $816.1M ($595.5M US$) and Revenue per Share of $20.74. The current ratio is 27% below the 10 year median ratio. This stock price testing suggests that the stock price is cheap. There is a different result using US$, but with small Canadian cap stock, they are not traded often on the US market.
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 but above the median. The P/S Ratio testing is saying that it is cheap. A lot of the rest of the testing is showing the stock price as reasonable and below the median.
When I look at analysts’ recommendations, I find Strong Buy (4), and Buy (4). The consensus would be a Strong Buy. The 12 month stock price consensus is $35.74 ($26.08 US$) with a high of $38.79 ($28.30 US$) and a low of 31.34 ($22.87 US$). The consensus stock price of $35.74 implies a total return of 27.53% with 24.18% from capital gains and 3.33% from dividends based on a current stock price of $25.24..
This stock is surprisingly followed by a number of analyst on Stock Chase. It is a small cap. Most like this stock but mention a recent sell off. Aditya Raghunath on Motley Fool likes this stock and thinks it is cheap. Amy Legate-Wolfe on Motley Fool thinks this stock is a solid investment for your TFSA. The company put out a press release via Newswire about their 2024 annual results. The company put out a press release via Newswire about their third quarter of 2025 result.
Simply Wall Street via Yahoo Finance says this is a TSX growth stock with high insider ownership. (See the third stock in this article.) Simply Wall Street has 4 warnings on this stock of debt is not well covered by operating cash flow; high level of non-cash earnings; significant insider selling over the past 3 months; and dividend of 3.14% is not well covered by free cash flows.
Propel Holdings Inc is a financial technology (fintech) company, committed to credit inclusion by facilitating fair, fast, and transparent access to credit through its proprietary, online lending platform. Its web site is here Propel Holdings Inc.
The last stock I wrote about was about was Titanium Transportation Group Inc (TSX-TTNM, OTCQX-TTNMF) ... learn more. The next stock I will write about will be Firm Capital Mortgage Investment Corp (TSX-FC, OTC-FCMGF) ... learn more on Friday, December 26, 2025 around 5 pm. Tomorrow on my other blog I will write about Enlarging the Bounds of Human Empire.... learn more on Thursday, December 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.
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