First Capital REIT

Sound bite for Twitter and StockTwits is: Dividend Paying REIT. Results of stock price testing is that the stock price is probably reasonable. Debt Ratios are fine, but the company has a lot of debt. The important Dividend Payout Ratios (DPR) of AFFO, FFO and CFPS seem fine currently. The current dividend yield is moderate with dividend growth low. See my spreadsheet on First Capital REIT.

Is it a good company at a reasonable price? It maybe a stock to buy for passive income. It is a REIT and it has lots of debt. It has not done well lately, but neither has a lot of Real Estate stocks. Currently it is doing better than the Real Estate index. A positive is the CEO and CFO are buying. There is a problem with dividends as they have varied over time and are unstable. This stock is testing as having a reasonable stock price.

I do not own this stock of First Capital REIT (TSX-FCR.UN, OTC-FCXXF). Myowneradvistor.com asked me to look into this stock. In 2011 a reader asked me to review this real estate stock. Also, the site Canadian Dividend Stock site mentions this company as a top Canadian REIT.

When I was updating my spreadsheet, I noticed that the CEO, CFO and Chairman all bought more shares over the past year. They had earnings losses over the past 2 years, however, for this year, they again had positive earnings. Also, the return over the past 10 years shows that with dividend stocks, you seldom lose your investment. The capital loss is made up with dividends.

If you had invested in this company in December 2013, for $1,009.47 you would have bought 57 shares at $17.71 per share. In December 2023, after 10 years you would have received $448.96 in dividends. The stock would be worth 874.38. Your total return would have been $1,323.34. This would be a total return of 3.34% per year with 1.43% from capital loss and 4.76% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$17.71	$1,009.47	57	10	$448.96	$874.38	$1,323.34

The current dividend yield is moderate with dividend growth low. The current dividend yield is moderate (2% to 4% ranges) at 4.88%. The 5, 10 and historical dividend yields are also moderate at 4.14%, 4.34% and $4.89%. The dividends have increased by 0.09% per year over the past 5 years. There was a big drop in dividends in 2021 and a big increase in 2023.

The important Dividend Payout Ratios (DPR) of AFFO, FFO and CFPS seem fine currently. The DPR for 2023 for Earnings per Share (EPS) is not calculable because of earnings losses with 5 year coverage too high at 145%. The DPR for 2023 for Adjusted Funds from Operations (AFFO) is high at 92% with 5 year coverage is good at 72%. The DPR for 2023 for Funds from Operations (FFO) is good at 76% with 5 year coverage at 62%. The DPR for 2023 for Cash Flow per Share (CFPS) is high at 45% with 5 year coverage is good at 38%. The DPR for 2023 for Free Cash Flow (FCF) is high at 79% with 5 year coverage at 62%. (But there is no agreement on FCF.)

Item	Cur	5 Years
EPS	-138.40%	145.27%
AFFO	91.55%	71.76%
FFO	75.79%	62.68%
CFPS	45.14%	38.14%
FCF	79.05%	62.48%

Debt Ratios are fine, but the company has a lot of debt. The Long Term Debt/Market Cap Ratio for 2023 is high at 1.11 and currently fine at 0.93. However, we need also to look at the Long Term Debt/Covering Assets Ratio for 2023 which is good at 0.42 and currently at 0.41 because this is a more important one for a REIT. The Liquidity Ratio for 2023 is too low at 0.81 and 0.86 currently. If you added in Cash Flow after dividends, the ratios are still too low at 0.88 and currently at 0.93. If you add back in the current portion of the long term debt, the ratios are fine at 2.70 and 3.51. The Debt Ratio for 2023 is good at 1.77 and 1.78 currently. The Leverage and Debt/Equity Ratios for 2023 are fine at 2.30 and 1.30 and currently at 2.28 and 1.28.

Type	Year End	Ratio Curr
Lg Term R	1.11	0.93
Lg Term A	0.42	0.41
Intang/GW	0.00	0.00
Liquidity	0.81	0.86
Liq. + CF	0.88	0.93
Liq. CF xDB	2.70	3.51
Debt Ratio	1.77	1.78
Leverage	2.30	2.28
D/E Ratio	1.30	1.28

The Total Return per year is shown below for years of 5 to 29 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	0.09%	0.09%	-4.04%	4.13%
2013	10	0.28%	3.34%	-1.43%	4.76%
2008	15	0.51%	8.13%	1.73%	6.40%
2003	20	0.92%	9.26%	2.20%	7.07%
1998	25	1.97%	7.78%	1.55%	6.23%
1994	29	3.36%	12.12%	3.52%	8.61%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 6.48, 7.83 and 9.17. The corresponding 10 year ratios are 11.01, 12.41 and 13.81. The corresponding historical ratios are 14.93, 16.18 and 17.91. The current ratio is 15.34 based on a stock price of $17.80 and EPS estimate for 2024 of $1.16. This ratio is above the high ratio for the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive. Generally, the AFFO and FFO data is considered better.

I also have Adjusted Funds from Operations (AFFO) data. The 5-year low, median, and high median Price/ Adjusted Funds from Operations Ratios are 13.35, 16.41, and 19.54. The corresponding 10 year ratios are 16.20, 18.07 and 19.81. The current P/AFFO Ratio is 16.48 based on a stock price of $17.80 and AFFO estimate for 2024 of $1.08. The current ratio is between median and high ratios for 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I also have Adjusted Cash Flow from Operations. (ACFO) data. The 5-year low, median, and high median Price/ Adjusted Cash Flow from Operations Ratios are 12.23, 15.27 and 17.44. The corresponding 10 year ratios are 16.20, 18.07 and 19.81. The current P/ACFO Ratio is 16.33 based on a stock price of $17.80 and AFFO estimate for 2024 of $1.09. The current ratio is between low and median ratios for 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I also have Funds from Operations (FFO) data. The 5-year low, median, and high median Price/ Funds from Operations Ratios are 11.69, 14.28, and 16.74. The corresponding 10 year ratios are 14.63, 16.66 and 18.41. The current P/FFO Ratio is 13.19 based on a stock price of $17.80 and FFO estimate for 2024 of $1.35. The current ratio is below the low ratio for 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $23.80. The 10-year low, median, and high median Price/Graham Price Ratios are 0.76, 0.85 and 0.96. The current ratio is 0.75 based on a stock price $17.80. The current ratio is below the low ratio of the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get a 10-year median Price/Book Value per Share Ratio of 1.00. The current P/B Ratio is 0.95 based on a Book Value of $3,958M, Book Value per Share of $18.65 and a stock price of $17.80. 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 get a 10-year median Price/Cash Flow per Share Ratio of 16.70. The current ratio is 15.48 based on a stock price of $17.80, Cash Flow for the last 12 months of $244M, and Cash Flow per Share of $1.15. The current ratio is 7% 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 4.89%. The current dividend yield is 4.85% based on dividends of $0.864 and a stock price of $17.80. The current dividend yield is 0.74% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a 10 year median dividend yield of 4.36%. The current dividend yield is 4.85% based on dividends of $0.864 and a stock price of $17.80. The current dividend yield is 11% above the 10 year 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 6.09. The current P/S Ratio is 5.23 based on Revenue estimate for 2024 of $722.1M, Revenue per Share of $3.40 and a stock price of $17.80. The current ratio is 14% below the 10 year median ratios. 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 10 year dividend yield test says the stock price is reasonable. This is confirmed by the P/S Ratio test. For the rest of the testing, the tests say the stock is anywhere from cheap to reasonable and above the median.

When I look at analysts’ recommendations, I find Strong Buy (4, Buy (5) and Hold (1). The consensus would be a Strong Buy. The 12 months stock price consensus is $20.30 with a high of $21.50 and low of $18.75. The 12 month consensus stock price of $20.30 implies a total return of 18.90% with 14.04% from capital gains and 4.85% from dividends.

There are three analysts’ comments on Stock Chase for 2024 and they all say this stock is their top pick. Stock Chase gives this stock 4 stars out of 5. All the entries in 2023 say the same thing. Robin Brown on Motley Fool says that this is a good stock to buy for passive income. Aditya Raghunath on Motley Fool reviews this stock and seems bullish on it. The company put out a press release via Newswire about their fourth quarter of 2023. The company put out a press release on Newswire about their third quarter of 2024.

Simply Wall Street does not seem to have written anything about this company. Simply Wall Street has 4 warnings on this stock of interest payments are not well covered by earnings; earnings have declined by 36.1% per year over past 5 years; large one-off items impacting financial results; and unstable dividend track record. Simply Wall Street gives this stock 2 and one half stars out of 5.

First Capital REIT is a developer, owner, and operator of grocery-anchored, open-air centers in neighborhoods in Canada's populated centers. The company's focus is on creating thriving neighborhoods that create value for businesses, residents, communities, and investors. Its web site is here First Capital REIT.

The last stock I wrote about was about was FirstService Corp (TSX-FSV, NASDAQ-FSV) ... learn more. The next stock I will write about will be Stella-Jones Inc (TSX-SJ, OTC-STLJF) ... learn more on Friday, November 22, 2024 around 5 pm. Tomorrow on my other blog I will write about Socializing for Seniors.... learn more on Thursday, November 21, 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.

FirstService Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Real Estate. Results of stock price testing is that the stock price is probably expensive. Debt Ratios are fine. The Dividend Payout Ratios (DPR) are good. The current dividend yield is low with dividend growth moderate. See my spreadsheet on FirstService Corp.

Is it a good company at a reasonable price? There is no doubt that this company is growing and has given shareholders a good return. However, the dividend is so low, I wonder about calling it a dividend growth stock. At the current rate of dividend growth of 10.03%, in 15 years’ time the dividend would be only at 2.50% of today’s stock price. From the testing I have done, it would seem that the stock price is on the expensive side.

I do not own this stock of FirstService Corp (TSX-FSV, NASDAQ-FSV), but I used to. I bought FirstService Corp in 2002 as it a good solid company that knows how to make money. At that time, I was still buying companies to earn capital gains. This one replaces Inco (which I had brought for Capital Gain and sold when I made them.) I bought more of this company in 2007 from my profit from RIM. FSV was a non-dividend paying stock, but it had issued preferred shares to shareholders.

Their way of paying dividends by issuing preferred shares was interesting. However, only if you held shares at the time of the special dividend of preferred shares would you get any dividends. However, they did start to pay dividends in 2013.

When I was updating my spreadsheet, I noticed this stock is still growing nicely. In the chart below, I am showing 5 and 10 year total growth and per year growth in columns 3 and 4. Column 5 shows growth expected over 12 months to the first quarter in 2024 and expected growth over this year.

Yr	Item	Tot. Gwth	Per Year	Gwth	Coverage
5	Revenue Growth US$	124.42%	17.55%	13.76%	<-12 mths
5	AEPS Growth	78.54%	12.29%	2.15%	<-12 mths
5	Net Income Growth	52.42%	8.79%	7.74%	<-12 mths
5	Cash Flow Growth	181.88%	23.03%	10.36%	<-12 mths
5	Dividend Growth	66.35%	10.71%	11.11%	<-12 mths
5	Stock Price Growth	136.70%	18.81%	16.02%	<-12 mths
10	Revenue Growth US$	265.01%	13.82%	19.48%	<-this year
10	AEPS Growth	331.77%	15.75%	7.94%	<-this year
10	Net Income Growth	1035.22%	27.50%	41.15%	<-this year
10	Cash Flow Growth	375.85%	16.88%	-20.82%	<-this year
10	Dividend Growth	119.38%	8.17%	12.82%	<-this year
10	Stock Price Growth	643.07%	22.21%	16.02%	<-this year

If you had invested in this company in December 2013, for $1,019.99 you would have bought 44 shares at $23.18 per share. In December 2023, after 10 years you would have received $335.67 in dividends. The stock would be worth $9,444.60. Your total return would have been $9,780.27. This would be a total return of 26.31% per year with 24.93% from capital gain and 1.38% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$23.18	$1,019.99	44	10	$335.67	$9,444.60	$9,780.27

The current dividend yield is low with dividend growth moderate. The current dividend yield is low (below 2%) at a very low rate of 0.53%. The 5, 10 and historical dividend yields are also low at 0.61%, 0.68% and 0.69%. The dividend growth is moderate (8% to 14% per year) at 10.7% per year over the past 5 years. The last dividend increase was for 11% and it occurred in 2024. Dividends are paid in US$.

The Dividend Payout Ratios (DPR) are good. The DPR for 2023 for Earnings per Share (EPS) is good at 39% with 5 year coverage too high at 105%. The DPR for 2023 for Adjusted Earnings per Share (AEPS) is good at 19% with 5 year coverage at 18%. The DPR for 2023 for Cash Flow per Share (CFPS) is good at 14% with 5 year coverage at 14%. The DPR for 2023 for Free Cash Flow (FCF) is good at 21% with 5 year coverage at 18%.

Item	Cur	5 Years
EPS	39.17%	104.64%
AEPS	18.83%	18.24%
CFPS	13.51%	14.05%
FCF	20.64%	18.44%

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2023 is good at 0.16 and currently at 0.15. The Liquidity Ratio for 2023 is good at 1.77 and 1.81 currently. The Debt Ratio for 2023 is good at 1.77 and 1.81 currently. The Leverage and Debt/Equity Ratios for 2023 are good at 1.39 and 0.39 and currently fine at 2.61 and 1.61.

Type	Year End	Ratio Curr
Lg Term R	0.16	0.15
Intang/GW	0.25	0.25
Liquidity	1.77	1.81
Liq. + CF	2.13	2.12
Debt Ratio	1.77	1.81
Leverage	1.39	2.61
D/E Ratio	0.39	1.61

The Total Return per year is shown below for years of 5 to 28 to the end of 2023 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.
2018	5	10.03%	18.82%	18.03%	0.78%
2013	10	9.70%	26.31%	24.93%	1.38%
2008	15		25.55%	24.42%	1.13%
2003	20		18.63%	18.06%	0.57%
1998	25		16.63%	16.22%	0.41%
1995	28		21.09%	20.62%	0.47%

The Total Return per year is shown below for years of 5 to 28 to the end of 2023 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.
2018	5	10.71%	19.55%	18.81%	0.74%
2013	10	8.17%	23.32%	22.21%	1.11%
2008	15		24.58%	23.71%	0.87%
2003	20		18.49%	18.02%	0.47%
1998	25		17.22%	16.86%	0.35%
1995	28		21.15%	20.76%	0.39%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 39.57, 53.04, and 65.78. The corresponding 10 year ratios are 33.91, 49.10 and 60.61. The corresponding historical ratios are 14.38, 18.90 and 24.11. The current P/E Ratio is 58.57 based on a stock price of $258.58 and EPS estimate for 2024 of $4.42. The current ratio is between the median and high ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in CDN$.

I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 26.47, 30.95 and 41.68. The corresponding 10 year ratios are 22.98, 29.22 and 35.61. The current P/AEPS Ratio is 36.68 based on a stock price of $184.48 and AEPS estimate for 2024 of $5.03. The current ratio is above the high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$ and you will get a similar result in CDN$.

I get a Graham Price of $75.94. The 10-year low, median, and high median Price/Graham Price Ratios are 2.55, 3.23 and 4.09. The current ratio is 3.41 based on a stock price of $258.58. The current ratio is between the median and high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in CDN$.

I get a 10-year median Price/Book Value per Share Ratio of 8.03. The current P/B Ratio is 7.18 based on a Book Value of $1,1489M, Book Value per Share of 25.70 and a stock price of $184.48. The current ratio is 11% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in US$ and you will get a similar result in CDN$.

I also have a Book Value per Share estimate for 2024 of $26.21. This implies a ratio of 7.04 based on a stock price of $184.48 and a Book Value of $1,171. This ratio is 12% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in US$ and you will get a similar result in CDN$.

I get a 10-year median Price/Cash Flow per Share Ratio of 20.80. The current P/CF Ratio is 31.14 based on Cash Flow per Share estimate for 2024 of $5.92, Cash Flow of $264.7M and a stock price of $184.48. The current ratio is 50% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$ and you will get a similar result in CDN$.

I get an historical median dividend yield of 0.69%. The current dividend yield is 0.54% based on a stock price of $184.48 and dividends of $1.00. The current dividend yield is 21% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$ and you will get a similar result in CDN$.

I get a 10 year median dividend yield of 0.68%. The current dividend yield is 0.54% based on a stock price of $184.48 and dividends of $1.00. The current dividend yield is 20.8% below the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$ and you will get a similar result in CDN$.

The 10-year median Price/Sales (Revenue) Ratio is 1.45. The current P/S Ratio is 1.59 based on Revenue estimate for 2024 of $5,179M, Revenue per Share of $115.91 and a stock price of $184.48. The current ratio is 10% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in US$ and you will get a similar result in CDN$.

Results of stock price testing is that the stock price is probably expensive. The dividend yield tests say this. The P/S Ratio test says it is reasonable but above the median. Most of the testing is saying that the stock price is relatively expensive or reasonable but above the median. The only exception is the P/B Ratio test and that test says the stock price is reasonable and below the median.

When I look at analysts’ recommendations, I find Strong Buy (2), Buy (3) and Hold (3). The consensus would be a Buy. The 12 month stock price of $283.11 ($201.09 US$) with a high of $283.11 ($201.09 US$) and low of $283.11 (201.09 US$). It looks like only one future stock price given. The consensus stock price of $283.11 implies a total return of 9.49% all from capital gains.

Not all analysts on Stock Chase think the stock is a buy, but they do like the company. Stock Chase gives this stock 3 stars out of 5. Adam Othman on Motley Fool thinks this is a smart growth stock to buy. Kay Ng on Motley Fool thinks that this stock will deliver nice returns over the next few years. The company put out a press release on Global Newswire about their fourth quarter of 2023. The company put out a press release via Global Newswire about their second quarter of 2024.

Simply Wall Street via Yahoo Finance talk about this company’s latest quarter. Simply Wall Street has two warnings of has a high level of debt; and significant insider selling over the past 3 months. Simply Wall Street gives this stock 2 and one half stars out of 5.

FirstService Corp operates in two business divisions: FirstService Residential and FirstService Brands. FirstService Residential has service contracts to manage thousands of residential communities. FirstService Brands generates most of the company's revenue and provides property services to residential and commercial customers. The company earns the majority of its revenue in the United States, with the remaining revenue generated in Canada. Its web site is here FirstService Corp.

The last stock I wrote about was about was Northland Power Inc (TSX-NPI, OTC-NPIFF) ... learn more. The next stock I will write about will be First Capital REIT (TSX-FCR.UN, OTC-FCXXF) ... learn more on Wednesday, November 20, 2024 around 5 pm. Tomorrow on my other blog I will write about Luxury Beliefs .... learn more on Tuesday, November 19, 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.

Northland Power Inc

Sound bite for Twitter and StockTwits is: Dividend Paying Utility. Results of stock price testing is that the stock price is probably cheap. Debt Ratios show that the debt level is too high. The Dividend Payout Ratios (DPR) are not good, but are improving. The current dividend yield is good with dividend growth non-existing. See my spreadsheet on Northland Power Inc.

Is it a good company at a reasonable price? I prefer stocks with lower yield but with dividend growth. However, this stock has given shareholders a decent return and does provide good passive income. It does have a lot of debt, but most utility stocks have lots of debt. This stock seems to be currently at a bargain price.

I do not own this stock of Northland Power Inc (TSX-NPI, OTC-NPIFF). This company is into generating electric power. I have a lot invested in pipelines and I would like to have more invested in electric power as part of my utility’s investments. I read a report on this stock that said it was a good defensive stock to buy. That is, it is a good stock to hold in a stock market correction. I can certainly see the logic of using utility stocks as defensive stocks.

When I was updating my spreadsheet, I noticed that the company lost money because they took an impairment of non-financial assets (goodwill) in 2023. Northland Power has also put out a warning of people offering a guaranteed return investment in the company. See the alert.

If you had invested in this company in December 2013, for $1,006.20 you would have bought 65 shares at $15.48 per share. In December 2023, after 10 years you would have received $748.80 in dividends. The stock would be worth $1,564.55. Your total return would have been $2,313.35. This would be a total return of 10.71% per year with 4.51% from capital gain and 6.20% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$15.48	$1,006.20	65	10	$748.80	$1,564.55	$2,313.35

The current dividend yield is good with dividend growth non-existing. The dividend yield is good (5% to 6% ranges) at 5.89%. The 5 and 10 year median dividend yields are moderate (2% to 4% ranges) at 3.585 and 4.67%. The historical median dividend yield is good at 6.54%. Dividend have been flat since 2019, so 0% increases over the past 5 years. This company used to be an income trust with a high yield. Dividend were cut by under 2% when the company became a corporation, and since then there was one increase of 11% in 2018. Analysts do not see any increases any time soon.

The Dividend Payout Ratios (DPR) are not good, but are improving. The DPR for 2023 for Earnings per Share (EPS) is non-calculable because of earnings losses with 5 year coverage too high at 86%. The DPR for 2023 for Free Cash Flow (FCF) as determined by the company is high at 71% with 5 year coverage at 73%. The DPR for 2023 for Adjusted Free Cash Flow (AFCF) is high at 86% with 5 year coverage good at 39%. The DPR for 2023 for Cash Flow per Share (CFPS) is good at 24% with 5 year coverage at 20%. The DPR for 2023 for Free Cash Flow (FCF) is fine at 42% with 5 year coverage good at 38%. However, there is no agreement on what the FCF is.

Item	Cur	5 Years
EPS	0.00%	85.84%
FCF Co.	71.43%	73.77%
AFCF	85.84%	38.96%
CFPS	24.44%	19.82%
FCF	42.41%	37.53%

Debt Ratios show that the debt level is too high. The Long Term Debt/Market Cap Ratio for 2023 is far too high at 1.05 and currently at 1.28. The Liquidity Ratio for 2023 is too low at 1.13 and too low at 1.17 currently. If you added in Cash Flow after dividends, the ratios are fine at 1.51 and currently 1.75. The Debt Ratio for 2023 is fine at 1.49 and 1.48 currently. The Leverage and Debt/Equity Ratios for 2023 are too high at 3.04 and 2.04 and currently at 3.06 and 2.06. I prefer these ratios to be below 3.00 and 2.00.

Type	Year End	Ratio Curr
Lg Term R	1.05	1.28
Intang/GW	0.18	0.20
Liquidity	1.13	1.17
Liq. + CF	1.51	1.75
Debt Ratio	1.49	1.48
Leverage	3.04	3.08
D/E Ratio	2.04	2.08

The Total Return per year is shown below for years of 5 to 26 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%	7.41%	2.09%	5.32%
2013	10	1.06%	10.71%	4.51%	6.20%
2008	15	0.70%	12.34%	4.99%	7.35%
2003	20	1.02%	11.02%	3.61%	7.41%
1998	25	1.25%	10.21%	3.00%	7.22%
1997	26	1.25%	11.33%	3.44%	7.90%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 11.81, 14.88 and 16.67. The corresponding 10 year ratios are 12.45, 15.26 and 17.14. The corresponding historical ratios are 13.11, 15.49 and 17.86. The current P/E Ratio is 12.34 based on a stock price of $20.38 and EPS estimate for 2024 of $1.65. 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 Free Cash Flow per Share data (FCF) from the company. The 5-year low, median, and high median Price/ Free Cash Flow Ratios are 12.42, 19.36 and 26.77. The corresponding 10 year ratios are 12.72, 15.93 and 17.73. The current ratio is 15.68 based on a stock price of $20.38 and FCF estimate for 2024 of $1.30. This ratio is between the low and median ratio 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 Free Cash Flow per Share data (AFCF) from the company. The 5-year low, median, and high median Price/ Adjusted Free Cash Flow Ratios are 10.94, 16.02, and 22.16. The corresponding 10 year ratios are 12.60, 15.30 and 17.73. The current ratio is 13.32 based on a stock price of $20.38 and AFCF estimate for 2024 of $1.53. This ratio is between the low and median ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $24.71. The 10-year low, median, and high median Price/Graham Price Ratios are 1.79, 2.05 and 2.47. The current P/GP Ratio is 0.82 based on a stock price of $20.38. This ratio is below the low ratio for the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.

I get a 10-year median Price/Book Value per Share Ratio of 4.40. The current P/B Ratio is 1.24 based on a stock price of $20.38, Book Value of $4,779M, and Book Value per Share of $16.44. The current ratio is 72% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I have a Book Value per Share estimate for 2024 and it is $16.44. This is the same as the current one. So, testing results will be the same as above.

I get a 10-year median Price/Cash Flow per Share Ratio of 5.32. The current P/CF Ratio is 5.12 based on a stock price of $20.38, Cash Flow per Share estimate for 2024 of $3.98 and Cash Flow of $1,015M. 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 get an historical median dividend yield of 6.54%. The current dividend yield is 5.89% based on dividends of $1.20 and a stock price of $20.38. The current dividend yield is 10% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median. The company used to be an income trust, so this test probably is not valid.

I get a 10 year median dividend yield of 4.67%. The current dividend yield is 5.89% based on dividends of $1.20 and a stock price of $20.38. The current dividend yield is 26% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

The 10-year median Price/Sales (Revenue) Ratio is 3.30. The current P/S Ratio is 2.18 based on a stock price of $20.38, Revenue estimate for 2024 of $2,379M and Revenue per Share of $9.33. The current ratio is 34% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

Results of stock price testing is that the stock price is probably cheap. the 10 year median dividend yield test says that the stock price is relatively cheap. This is confirmed by the P/S Ratio test. The rest of the testing is saying that the stock price is relatively cheap or reasonable.

When I look at analysts’ recommendations, I find Strong Buy (5), Buy (7), and Hold (2). The consensus would be a Strong Buy. The 12 month stock price consensus is $29.77 with a high of $35.00 and low of $23.00. The 12 month stock price consensus of $29.77 implies a total return of 51.96% with 46.07% from capital gains and 5.89% from dividends.

A lot of analysts on Stock Chase like this company. Although one says there are better choices elsewhere and a couple complain that power companies have been hammered lately, especially because of changes in interest rates. Stock Chase gives this stock 4 stars out of 5. Adam Othman on Motley Fool thinks this company is undervalued and has long term prospects. Karen Thomas on Motley Fool thinks this stock is cheap and has a high yield and is well positioned for the years ahead. The company put out a Press Release about their fourth quarter of 2023. The company put out a Press Release about their second quarter of 2024.

Simply Wall Street via Yahoo Finance reviews this stock. They think its value us $42.91 CDN$ and is therefore undervalued. They have 4 warnings out on this stock of interest payments are not well covered by earnings; dividend of 5.93% is not well covered by earnings or free cash flows; large one-off items impacting financial results; and profit margins (2.7%) are lower than last year (18.6%). Simply Wall Street gives this stock 2 and one half stars out of 5.

Northland Power develops, constructs, and operates maintainable infrastructure assets across a range of clean and green technologies, such as wind (offshore and onshore), solar, and supplying energy through a regulated utility. Offshore wind is expected to remain the company's largest segment over the long term. Northland's growth opportunities are global and span North America, Europe, Latin America, and Asia. Its web site is here Northland Power Inc .

The last stock I wrote about was about was Chesswood Group Ltd (TSX-CHW, OTC-CHWWF) ... learn more. The next stock I will write about will be FirstService Corp (TSX-FSV, NASDAQ-FSV) ... learn more on Monday, November 18, 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.

Chesswood Group Ltd

Sound bite for Twitter and StockTwits is: Finance Sector Stock. Debt Ratios are unknown. Dividends were terminated this year. There will be no Dividend Payout Ratios (DPR). See my spreadsheet on Chesswood Group Ltd.

Is it a good company at a reasonable price? This stock has currently been delisted. It is hard to know its future at the moment.

I do not own this stock of Chesswood Group Ltd (TSX-CHW, OTC-CHWWF). A reader wrote me in 2012 that he was researching and found a company that he hoped I could give him a brief outlook on. He said that the company is Chesswood Group and they are basically a financial leasing company. From 2009 to 2012 they increased their dividends from 2.5 cents to 5.5 cents per month. This is a 120% increase.

When I was updating my spreadsheet, I noticed that the company is required to refile and restate its interim condensed consolidated financial statements for the three months ended March 31, 2024 and 2023. See news on Newswire. Since stock prices stop in August 15, 2024, the stock must have been delisted. See news on Newswire.

Basically, it is unknown what the value of any shares are worth and it would seem to company is winding down. It seems to be going through a bankruptcy process, so it is hard to know what the future holds for this company.

Dividends were terminated this year. There will be no Dividend Payout Ratios (DPR).

Debt Ratios are unknown.

The Total Return per year to the end of 2023 is of no value as the stock has been delisted and probably has a value of 0.

Chesswood Group Ltd is a holding company whose subsidiaries engage in the business of specialty finance (including equipment finance throughout North America, and vehicle finance in Canada), as well as the origination and management of private credit alternatives for North American investors. Its web site is here Chesswood Group Ltd.

The last stock I wrote about was about was Quarterhill Inc (TSX-QTRH, OTC-QTRHF) ... learn more. The next stock I will write about will be Northland Power Inc (TSX-NPI, OTC-NPIFF) ... learn more on Friday, November 15, 2024 around 5 pm. Tomorrow on my other blog I will write about Trump and Women’s Issues.... learn more on Thursday, November 14, 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.

Quarterhill Inc

Sound bite for Twitter and StockTwits is: Tech Sector Stock. Results of stock price testing is that the stock price is probably cheap. Debt Ratios are fine for 2023, but have deteriorated a lot for the first 2 quarters of 2024. The Dividend Payout Ratios (DPR) mostly not calculable because of earnings losses and negative cash flows. The current dividend yield is 0% with dividends being cut in 2022 and cancelled in 2023. See my spreadsheet on Quarterhill Inc.

Is it a good company at a reasonable price? The good news is that insiders are buying. The other good news is that the stock price would seem to be cheap. However, being cheap does not mean that a stock is a good buy. They are having trouble getting earning money. They have suspended the dividends. This is not good news. Analysts expect it to do well in the future. However, buying this company is a risk and you should not use money you cannot afford to lose. This company has only occasionally given a decent return for shareholders, so you have to wonder if it is worth the risks.

I do not own this stock of Quarterhill Inc (TSX-QTRH, OTC-QTRHF), but I used to. I bought this company in 2000 as WiLan Inc. (TSX-WIN, OTC-WILN. It was an up and coming company in communications. I sold it in 2006 after losing most of my investment. This stock has never recovered from the bubble that occurred in 2000. I lost all hope of ever making any money on this stock. The other thing is that they completely refocused their company to earn money on their patents. Since then, they have reinvented themselves a number of times.

When I was updating my spreadsheet, I noticed Revenue for 2022 was restated because of the sale of Wi-Lan Inc. See notice on Newswire. I also notice that although they cancelled the dividend, insiders are buying. Of the insiders buying that I follow is the CEO, CFO, Chairman and another director.

If you had invested in this company in December 2013, for $1,001.10 you would have bought 282 shares at $3.55 per share. In December 2023, after 10 years you would have received $253.10 in dividends. The stock would be worth $549.90. Your total return would have been $803.00. This would be a total loss of 2.67% per year with 5.82% from capital loss and 3.14% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$3.55	$1,001.10	282	10	$253.10	$549.90	$803.00

The current dividend yield is 0% with dividends being cut in 2022 and cancelled in 2023.

The Dividend Payout Ratios (DPR) mostly not calculable because of earnings losses and negative cash flows. The DPR for 2023 for Earnings per Share (EPS) cannot be calculated because of earning losses. The DPR for 2023 for Cash Flow per Share (CFPS) cannot be calculated because of a negative cash flow with 5 year coverage good at 29%. The DPR for 2023 for Free Cash Flow (FCF) is negative due to a negative FCF with 5 year coverage at 52%. There is no agreement on what the FCF is. However, in 2023, all sites agreed it was negative.

Item	Cur	5 Years
EPS	N/C	N/C
CFPS	N/C	29.47%
FCF	-31.49%	52.02%

Debt Ratios are fine for 2023, but have deteriorated a lot for the first 2 quarters of 2024. The Long Term Debt/Market Cap Ratio for 2023 is good at 0.33 and currently at 0.49. The Liquidity Ratio for 2023 is good at 2.93 and is low at 1.37 currently. If you added in Cash Flow after dividends, the ratios are fine at 2.86 and currently it is negative because lack of cash flow this year. The Debt Ratio for 2023 is good at 2.34 and 2.29 currently. The Leverage and Debt/Equity Ratios for 2023 are good at 1.75 and 0.75 and currently at 1.77 and 0.44.

Type	Year End	Ratio Curr
Lg Term R	0.33	0.49
Intang/GW	0.64	0.57
Liquidity	2.93	1.37
Liq. + CF	2.86	-6.98
Debt Ratio	2.34	2.29
Leverage	1.75	1.77
D/E Ratio	0.75	0.77

The Total Return per year is shown below for years of 5 to 25 to the end of 2023 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.
2018	5	-24.21%	10.82%	7.95%	2.86%
2013	10	-22.26%	-2.67%	-5.82%	3.14%
2008	15	-4.83%	9.23%	2.95%	6.28%
2003	20		-1.81%	-4.06%	2.26%
1998	25		3.73%	1.05%	2.67%

The Total Return per year is shown below for years of 5 to 22 to the end of 2023 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.
2018	5	-23.74%	11.32%	8.37%	2.95%
2013	10	-23.93%	-5.20%	-7.90%	2.70%
2008	15	-6.39%	7.97%	1.70%	6.28%
2003	20		-1.20%	-3.74%	2.54%
2001	22		0.03%	-2.49%	2.52%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 8.31, 12.97 and 16.34. The corresponding 10 year ratios are 10.96, 16.59 and 21.70. The corresponding historical ratios are negative and therefore useless. The current ratio is negative and cannot be used. The P/E Ratio for 2024 is 82.11 based on a stock price of $1.56 and 2025 EPS estimate of $0.02. This is way above the 10 year ratios. This stock price testing suggests that the stock price is relatively expensive

I get a Graham Price of $0.71. The 10-year low, median, and high median Price/Graham Price Ratios are 0.56, 0.98 and 1.45. The current P/GP Ratio is 2.19 based on a stock price of $1.56. This ratio is above the high ratio for 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 0.94. The current P/B Ratio is 1.32 based on a stock price of $1.56, Book Value of 136M, and Book Value per Share of $1.18. The current ratio is 41% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. Although the ratio is 1.32 is not a very high one, generally speaking.

I get a 10-year median Price/Cash Flow per Share Ratio of 6.43. The current ratio is 7.43 based on Cash Flow for the last 12 months of $24.2M, Cash Flow per Share of $0.21 and a stock price of $1.56. The current ratio is 17% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I cannot do any dividend yield testing because the dividends have been cancelled.

The 10-year median Price/Sales (Revenue) Ratio is 1.83. The current P/S Ratio is 0.81 based on a stock price of $1.56, Revenue estimate for 2024 of $220.9M and Revenue per Share of $1.91. The current ratio is 56% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

Results of stock price testing is that the stock price is probably cheap. The P/S Ratio test is one of the few that is a good test. It says that the stock price is relatively cheap. The other two tests that are ok is the P/B Ratio test that says the stock price is expensive and the P/CF Ratio test that says that the stock price is relatively reasonable but above the median. I am going with the P/S Ratio test.

When I look at analysts’ recommendations, I find Strong Buy (1) and Buy (2). The consensus would be a Strong Buy. The 12 month stock price consensus is $2.18 with a high of $2.30 and low of $2.00. The 12 month stock price of $2.18 implies a total return of $39.74% all from capital gains.

Most analysts on Stock Chase for 2024 like what this company is doing. Stock Chase gives this stock 4 stars out of 5. Christopher Liew on Motley Fool in July 2024 thought that this is a low cost stock that is perfect for getting started in the stock market. Christopher Liew on Motley Fool also suggested this stock to get into in January 2023. The company put out a Press Release about their 2023 annual results. The company put out a Press Release about their second quarter of 2024.

Simply Wall Street via Yahoo Finance reviews this stock. Simply Wall Street has one warning on this stock of currently unprofitable and not forecast to become profitable over the next 3 years. Simply Wall Street gives this stock 2 and one half stars out of 5.

Quarterhill Inc is focused on the acquisition, management, and growth of companies in the intelligent transportation systems (ITS) and innovation and licensing industries. It operates in two segments Licensing, and Intelligent Transportation Systems. Its geographical segments are the United States, Canada, Chile, China, Korea, Singapore, Taiwan, Thailand, Ukraine, and the Rest of the world. The majority of the revenue comes from the United States. Its web site is here Quarterhill Inc.

The last stock I wrote about was about was Finning International Inc (TSX-FTT, OTC-FINGF) ... learn more. The next stock I will write about will be Chesswood Group Ltd (TSX-CHW, OTC-CHWWF) ... learn more on Wednesday, November 13, 2024 around 5 pm. Tomorrow on my other blog I will write about Trump and Canada .... learn more on Tuesday, November 12, 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. November 12, 2024

Finning International Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. Results of stock price testing is that the stock price is probably still reasonable. Debt Ratios are probably fine, but the company has a lot of debt. The Dividend Payout Ratios (DPR) are good. The current dividend yield is moderate with dividend growth low. See my spreadsheet on Finning International Inc.

Is it a good company at a reasonable price? A lot of analysts seem to like this stock. It has done well in most years for its shareholders. It is a dividend growth stock. It does have a lot of debt. The stock price seems to be relatively reasonable at this time.

I do not own this stock of Finning International Inc (TSX-FTT, OTC-FINGF). When I was in the market to buy an industrial stock in this area in 2007, I look at this stock was well as Toromont Industries (TSX-TIH). At the time I liked Toromont better, so that is what I bought.

When I was updating my spreadsheet, I noticed that my Toromont Industries Ltd (TSX-TIH, OTC-TMTNF) has done better than Finning. They are both into moving heavy equipment. When I wanted to buy another industrial (2007) and I looked at both Toromont and Finning and decided to go with Toromont. See Toromont Long Term returns in the chart below and see Finning further down this page. It is not so much that Finning has done badly, but Toromont has done a lot better and I am glad I went with Toromont.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.	check
2018	5	13.81%	18.25%	16.43%	1.82%	18.25%
2013	10	12.66%	17.75%	15.85%	1.89%	17.75%
2008	15	11.17%	17.08%	15.10%	1.98%	17.08%
2003	20	13.71%	14.71%	12.97%	1.73%	14.71%
1998	25	12.97%	15.37%	13.57%	1.80%	15.37%
1993	30	15.65%	18.80%	16.20%	2.59%	18.80%
1990	33	14.66%	22.61%	18.55%	4.06%	22.61%

If you had invested in this company in December 2013, for $1,004.55 you would have bought 37 shares at $27.15 per share. In December 2023, after 10 years you would have received $299.29 in dividends. The stock would be worth $1,417.84. Your total return would have been $1,717.13. This would be a total return of 6.04% per year with 3.51% from capital gain and 2.54% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$27.15	$1,004.55	37	10	$299.29	$1,417.84	$1,717.13

The current dividend yield is moderate with dividend growth low. The current dividend yield is moderate (2% to 4% ranges) at 2.66%. The 5 and 10 year median dividend yields are also moderate at 2.82% and 2.79%. The historical median dividend yield is low (below 2%) at 1.98%.

The Dividend Payout Ratios (DPR) are good. The DPR for 2023 for Earnings per Share (EPS) is good at 28% with 5 year coverage at 37%. The DPR for 2023 for Adjusted Earnings per Share (AEPS) is good at 25% with 5 year coverage at 43%. The DPR for 2023 for Cash Flow per Share (CFPS) is good at 11% with 5 year coverage at 15%. The DPR for 2023 for Free Cash Flow (FCF) is too high at 1825% with 5 year coverage at 65%. However, no site agrees what the FCF is and there are big disparities in what sites say. I am not considering FCF.

Item	Cur	5 Years
EPS	27.85%	36.94%
AEPS	25.22%	42.94%
CFPS	11.17%	14.80%
FCF	1825.00%	65.24%

Debt Ratios are probably fine, but the company has a lot of debt. The Long Term Debt/Market Cap Ratio for 2023 is good at 0.17 and currently at 0.23. The Liquidity Ratio for 2023 is fine at 1.41 and 1.55 currently. If you added in Cash Flow after dividends, the ratios are fine at 1.53 and currently at 1.76. The Debt Ratio for 2023 is fine at 1.44 and 1.74 currently. The Leverage and Debt/Equity Ratios for 2023 are too high at 3.01 and 2.00 and currently at 3.12 and 2.11. I prefer these ratios to be under 3.00 and under 2.00

Type	Year End	Ratio Curr
Lg Term R	0.17	0.23
Intang/GW	0.12	0.10
Liquidity	1.41	1.55
Liq. + CF	1.44	1.74
Debt Ratio	1.50	1.48
Leverage	3.01	3.12
D/E Ratio	2.00	2.11

The Total Return per year is shown below for years of 5 to 36 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	4.53%	13.07%	9.99%	3.07%
2013	10	5.14%	6.04%	3.51%	2.54%
2008	15	5.69%	9.90%	6.82%	3.08%
2003	20	12.12%	7.17%	4.80%	2.37%
1998	25	9.59%	11.04%	8.09%	2.95%
1993	30	10.84%	9.66%	7.21%	2.45%
1988	35	7.44%	10.55%	7.91%	2.64%
1987	36	8.09%	11.00%	8.19%	2.81%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 9.16, 13.73 and 16.90. The corresponding 10 year ratios are 12.26, 14.96 and 18.12. The corresponding historical ratios are 12.11, 15.70, and 19.00. The current P/E Ratio is 10.50 based on a stock price of $41.38 and EPS estimate for 2024 of $3.94. 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 Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 9.89, 14.84 and 15.99. The corresponding 10 year ratios are 13.14, 17.09 and 19.11. The current ratio is 10.56 based on AEPS estimate for 2024 of $3.92. 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 get a Graham Price of $39.71. The 10-year low, median, and high median Price/Graham Price Ratios are 1.01, 1.23 and 1.45. The current P/GP Ratio is 1.04 based on a stock price of $41.38. 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 get a 10-year median Price/Book Value per Share Ratio of 2.21. The current P/B Ratio is 2.31 based on a stock price of $41.38, Book Value of $2,575M and Book Value per Share of $17.88. The current ratio is 5% above 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/Cash Flow per Share Ratio of 14.36. The current ratio is 7.31 based on Cash Flow per Share estimate for 2024 of $5.66, Cash Flow of $816M and a stock price of $41.38. The current ratio is 49% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get an historical median dividend yield of 1.98%. The current dividend yield is 2.66% based on dividends of $1.075 and a stock price of $41.38. The current ratio is 31% 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 2.79%. The current dividend yield is 2.66% based on dividends of $1.075 and a stock price of $41.38. The current ratio is 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 0.65. The current P/S Ratio is 0.59 based on Revenue estimate for 2024 of $10,075M, Revenue per Share of $69.96 and a stock price of $41.38. The current ratio is 10% 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 still reasonable. The 10 year dividend yield test says the stock price is relatively reasonable but above median. This historical dividend yield test says the stock price is cheap. The P/S Ratio test says that the stock price is relatively reasonable. Most of the rest of the testing is saying that the stock price is cheap or reasonable except for the P/B Ratio test.

When I look at analysts’ recommendations, I find Strong Buy (4), and Buy (5). The consensus would be a Strong Buy. The 12 months stock price consensus is $49.44 with a high of $53.00 and low of $45.00. The consensus stock price of $49.44 implies a total return of 22.14% with 19.48% from capital gains and 2.66% from dividends based on a current stock price of $41.38.

Most analyst on Stock Chase like this stock and says it is their top pick. There is one Do Not Buy and that analysts said she would rather buy Cat who makes the machinery and the Distributor. Stock Chase gives this stock 4 stars out of 5. Amy Legate-Wolfe on Motley Fool say this stock jumped on strong first quarter and 10% dividend increase. Kay Ng onMotley Fool say Finning is a cyclical dividend stock that offers decent long term returns. The company put out a Press Release about their fourth quarter of 2023. The company put out a Press Release for their second quarter of 2024.

Simply Wall Street via Yahoo Finance reviews this stock. Simply Wall Street thinks this stock is undervalued and its fair value of $62.43. Simply Wall Street gives this stock 4 stars out of 5. It has one warning of debt is not well covered by operating cash flow.

Finning International Inc is a dealer and distributor of heavy-duty machinery and parts of the Caterpillar brand. The company operates in Canada, South America, UK and Ireland, and others. Its web site is here Finning International Inc.

The last stock I wrote about was about was Veren Inc (TSX-VRN, NYSE-VRN) ... learn more. The next stock I will write about will be Quarterhill Inc (TSX-QTRH, OTC-QTRHF) ... learn more on Monday, November 11, 2024 around 5 pm.

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