FirstService Corp

Sound bite for Twitter is: Dividend Growth Real Estate. Results of stock price testing is that the stock price is probably relatively reasonable, but a lot of the ratios are very high. Debt Ratios are mostly fine, but the company has a lot of debt. 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? I would worry about the very high valuation for this stock. Lots of the ratios are really high. Look at the Price/Graham Price Ratios which are 2.63, 3.23 and 4.09. Expected ratios would be between 0.80 and 1.20. They are not the only very high ratios. However, on a relatively bases, the stock price testing is showing the stock price as relatively reasonable.

I do not own this stock of FirstService Corp (TSX-FSV, NASDAQ-FSV). I bought FirstService Corp in 2002 as it looked like a good solid company that knows how to make money. By 2010 the company was underperforming so I sold the stock and kept the preferred shares until the end of the year before selling them too. I was cleaning up my portfolio in 2010. Actually, the stock is done quite well after I sold.

When I was updating my spreadsheet, I noticed the stock seems to be quite volatile in the last couple of years. This year it has had a high of $288.17 and low of 212.68, a 26% difference, in 2024 it has a high of $275.24 and low of $194.34, a 29% difference. These prices are in CDN$. It is in the Real Estate business. You see a similar pattern in US$ stock price chart.

If you had invested in this company in December 2014, for $1,021.26 you would have bought 34 shares at $30.04 per share. In December 2024, after 10 years you would have received $291.30 in dividends. The stock would be worth $8,853.26. Your total return would have been $9,144.56. This would be a total return of 25.31% per year with 24.11% from capital gain and 1.20% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$30.04	$1,021.26	34	10	$291.30	$8,853.26	$9,144.56

The current dividend yield is low with dividend growth moderate. The current dividend yield is low (below 2%) at 0.73%. The 5, 10 and historical dividend yields are low at 0.58%, 0.66% and 0.68%. The dividend growth is moderate (8% to 14% per year) at 10.8% per year for the last 5 years. The last dividend increase was in 2025 and it was for 10%.

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 31%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is good at 20% with 5 year coverage at 18%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 13% with 5 year coverage at 13%. The DPR for 2024 for Free Cash Flow (FCF) is good at 21% with 5 year coverage at 18%. The FCF variance for 2024 is from $165M to $210M. I used the $210M for DPR.

Item	Cur	5 Years
EPS	32.83%	30.77%
AEPS	19.50%	18.24%
CFPS	12.80%	12.91%
FCF	20.87%	17.61%

Debt Ratios are mostly fine, but the company has a lot of debt. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.15 and currently at 0.17. The Liquidity Ratio for 2024 is good at 1.83 and 1.76 currently. The Debt Ratio for 2024 is good at 1.83 and 1.76 currently. The Leverage and Debt/Equity Ratios for 2024 are fine at 2.56 and 1.56 and currently too high at 3.27 and 2.27.

Type	Year End	Ratio Curr
Lg Term R	0.15	0.17
Intang/GW	0.26	0.32
Liquidity	1.83	1.76
Liq. + CF	2.17	2.19
Debt Ratio	1.83	1.76
Leverage	2.56	3.27
D/E Ratio	1.56	2.27

The Total Return per year is shown below for years of 5 to 29 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.
2019	5	13.05%	17.30%	16.59%	0.71%
2014	10	11.70%	25.31%	24.11%	1.20%
2009	15	10.67%	25.23%	24.04%	1.19%
2004	20		17.10%	16.56%	0.54%
1999	25		18.38%	17.91%	0.47%
1995	29		21.12%	20.64%	0.48%

The Total Return per year is shown below for years of 5 to 29 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.
2019	5	10.76%	14.89%	14.24%	0.65%
2014	10	9.32%	22.56%	21.52%	1.04%
2009	15	8.44%	22.44%	21.55%	0.89%
2004	20		16.10%	15.64%	0.46%
1999	25		18.38%	17.96%	0.42%
1995	29		20.86%	20.44%	0.42%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 44.82, 54.94 and 65.78. The corresponding 10 year ratios are 37.20, 51.45 and 64.86. The corresponding historical ratios are 14.98, 19.13 and 24.82. The current ratio is 50.06 based on a stock price of $212.68 and EPS estimate for 2025 of $4.25. The current ratio is between the median and high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median. Note that these ratios, except for the historical ones, are very high. This testing is in CDN$.

I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Earnings per Share Ratios are 26.59, 33.89 and 41.68. The corresponding 10 year ratios are 24.28, 29.72 and 36.05. The corresponding historical ratios are 17.19, 23.95 and 31.32. The current ratio is 26.47 based on a stock price of $151.41 and AEPS estimate for 2025 of $5.72. The current ratio is between the low and median ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in US$. You will get a similar result in CDN$. Note that these ratios, except for the historical ones, are very high.

I get a Graham Price of $86.36. The 10-year low, median, and high median Price/Graham Price Ratios are 2.63, 3.23 and 4.09. The current ratio is 2.46 based on a stock price of $212.68. This ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap. Note that these ratios are also very high. This testing is in CDN$.

I get a 10-year median Price/Book Value per Share Ratio of 7.95. The current ratio is 5.17 based on a Book Value of $1,339.5M, Book Value per Share of $29.30 and a stock price of $151.41. The current ratio is 35% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$. Note that these ratios are very high.

I also have Book Value per Share estimate for 2025 of $30.01. This implies a ratio of 5.05 with a Book Value of $1,371.8M and a stock price of $151.41. This ratio is 37% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$. Note that these ratios are very high.

I get a 10-year median Price/Cash Flow per Share Ratio of 24.92. The current ratio is 17.79 based on a stock price of $151.41, Cash Flow per Share estimate for 2025 of $8.51 and Cash Flow of $389M. The current ratio is 29% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$.

I get an historical median dividend yield of 0.68%. The current dividend yield is $0.73 based on a stock price of $151.41 and dividends of $1.10. The current dividend yield is 7% above the historical median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in US$.

I get a 10 year median dividend yield of 0.66%. The current dividend yield is $0.73 based on a stock price of $151.41 and dividends of $1.10. The current dividend yield is 11% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in US$.

The 10-year median Price/Sales (Revenue) Ratio is 1.48. The current ratio is 1.26 based on Revenue estimate for 2025 of $5,476M, Revenue per Share of $119.79 and a stock price of $151.41. The current ratio is 15% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in US$.

Results of stock price testing is that the stock price is probably relatively reasonable, but a lot of the ratios are very high. The Dividend Yield testing is showing that the stock price is reasonable and below the median. This is confirmed by the P/S Ratio test. Rest of the testing is showing that the stock price is relatively cheap or reasonable.

When I look at analysts’ recommendations, I find Strong Buy (5), Buy (3), and Hold (1). The consensus would be a Strong Buy. The 12 month stock price is $265.90 ($189.08 US$) with a high of $265.90 ($189.08 US$) and low of $265.90 ($189.08 US$). Above would imply only one price given. The 12 month stock price of $265.90 implies a total return of 25.75% with 25.03% from capital gains and 0.73% from dividends based on a current stock price of $212.68.

There are three entries on Stock Chase for this stock. Two Buys and a Watch. With the Watch comment the analyst was worried about the company’s rich valuation. Amy Legate-Wolfe on Motley Fool says to buy this low yield stock for long-term capital appreciation. Motley Fool says to buy during a market correction for long-term wealth creation. The company put out a press release via Globe Newswire about their fourth quarter of 2024. The company put out a press release via Globe Newswire about their third quarter of 2025.

Simply Wall Street via Yahoo Finance reviews this stock. They said that the stock price has gone down because analysts believe this company’s performance will be worse than the wider industry. Simply Wall Street has two warnings out on this stock of has a high level of debt; and significant insider selling over the past 3 months.

FirstService Residential has service contracts to manage thousands of residential communities, including high-, medium-, and low-rise condominiums and co-operatives. FirstService Brands generates the majority 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 19, 2025 around 5 pm. Tomorrow on my other blog I will write about Billion-Dollar Companies learn more on Tuesday, November 18, 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.

Northland Power Inc

Sorry, but I missed the fact that Northland Power Inc cut it dividends by 40% recently. Dividends went from $1.20 to $0.72. This is the reason for the fall in stock price. See item via Yahoo Finance.

Sound bite for Twitter is: Dividend Paying Utility. Results of stock price testing is that the stock price is probably cheap. Debt Ratios mostly fine, but debt is too high. The Dividend Payout Ratios (DPR) need improvement. The current dividend yield is good with dividend growth non-existent. See my spreadsheet on Northland Power Inc.

Is it a good company at a reasonable price? This company is basically based on green energy. I do not think that green energy has proven to be money maker. The EPS on this company is certainly volatile. It would not be a stock that would be my favourite utility. A lot of people think that this stock is cheap. My testing generally points in the cheap direction.

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 they got a new Chairman, new CEO, and new CFO this year. Last year the old Chairman was acting CEO and they had an interim CFO. Also, the three officers I was following, including the interim CFO have left the company.

If you had invested in this company in December 2014, for $1,009.14 you would have bought 66 shares at $15.29 per share. In December 2024, after 10 years you would have received $768.24 in dividends. The stock would be worth $1,181.40. Your total return would have been $1,949.64. This would be a total return of 8.68% per year with 1.59% from capital gain and 7.09% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$15.29	$1,009.14	66	10	$768.24	$1,181.40	$1,949.64

The current dividend yield is good with dividend growth non-existent. The current dividend yield is good (5% to 6% ranges) at 6.12%. The 5 and 10 year median dividend yields are moderate (2% to 4% ranges) at 3.58% and 4.67%. The historical median dividend yield is good at 6.53%. This stock used to be an income trust company and therefore had high dividend yields in the past. All old income trust companies are having a hard time getting their current dividends at the right level. I have records for this company for the past 27 years and they have raised the dividend in 8 years, cut it in 2 years, and kept it the same in 17.

The Dividend Payout Ratios (DPR) need improvement. The DPR for 2024 for Earnings per Share (EPS) is too high at 117% with 5 year coverage at 94%. The DPR for 2024 for Free Cash Flow (FCF) is too high at 94% with 5 year coverage at 79%. The DPR for 2024 for Adjusted Free Cash Flow (AFCF) is too high at 78% with 5 year coverage at 30%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 23% with 5 year coverage at 21%. The DPR for 2024 for Free Cash Flow (FCF) is good at 46% with 5 year coverage at 33%. FCF varies for 20024 from $131M to $436M. Analysts think improvement will come in 2026 and 2027.

Item	Cur	5 Years
EPS	116.50%	94.64%
FCF Co.	94.49%	79.11%
AFCF	78.43%	65.22%
CFPS	23.38%	20.90%
FCF	45.98%	33.38%

Debt Ratios mostly fine, but debt is too high. The Long Term Debt/Market Cap Ratio for 2024 is too high at 1.38 and currently at 1.18. The Liquidity Ratio for 2024 is too low at 1.05 and 0.91 currently. If you added in Cash Flow after dividends, the ratios are fine at 1.58 and currently at 1.58. The Debt Ratio for 2024 is good at 1.50 and 1.53 currently. The Leverage and Debt/Equity Ratios for 2024 are fine at 2.99 and 1.99 and currently at 2.89 and 1.89.

Type	Year End	Ratio Curr
Lg Term R	1.38	1.18
Intang/GW	0.22	0.20
Liquidity	1.05	0.91
Liq. + CF	1.58	1.58
Debt Ratio	1.50	1.53
Leverage	2.99	2.89
D/E Ratio	1.99	1.89

The Total Return per year is shown below for years of 5 to 27 to the end of 2024. 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.
2019	5	0.00%	-2.82%	-8.03%	5.20%
2014	10	1.06%	8.68%	1.59%	7.09%
2009	15	0.70%	10.81%	2.74%	8.07%
2004	20	0.74%	8.34%	1.19%	7.15%
1999	25	1.02%	13.73%	3.22%	10.51%
1997	27	2.60%	10.88%	2.18%	8.70%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 11.81, 19.14 and 24.45. The corresponding 10 year ratios are 13.38, 17.39 and 21.03. The corresponding historical ratios are 13.13, 15.65 and 17.89. The current ratio is 35.00 based on a stock price of $19.60 and EPS of $0.56. This ratio is above the high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive.

However, the company’s EPS for 2025 is very low. The EPS expected in 2026 is $1.65 and gives a P/E Ratio of 11.85. This 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. Another problem is that the yearly EPS varies a lot on this stock. The Adjusted Free Cash Flow is probably a better test.

I also have Adjusted Free Cash Flow (AFCF) data provided by the company. The 5-year low, median, and high median Price/ Adjusted Free Cash Flow Ratios are 11.70, 16.02 and 22.16. The corresponding 10 year ratios are 11.94, 15.30 and 17.73. The corresponding historical ratios are 13.02, 15.56 and 17.90. The current ratio is 15.43 based on a stock price of $19.60 and AFTF of $1.27. 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.

I get a Graham Price of $14.16. The 10-year low, median, and high median Price/Graham Price Ratios are 1.67, 1.93 and 2.30. The current ratio is 1.38 based on a stock price of $19.60. This 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 4.20. The current ratio is 1.23 based on a Book Value of $4,162M, Book Value per Share of $15.91 and a stock price of $19.60. The current ratio is 71% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I also have a Book Value per Share estimate for 2025 of $15.70. This implies a ratio of 1.25 based on a stock price of $19.60 and Book Value of $4,106M. This ratio is 70% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get a 10-year median Price/Cash Flow per Share Ratio of 5.28. The current ratio is 4.21 based on Cash Flow per Share estimate for 2025 of $4.66 and a stock price of $19.60. This ratio is 20.3% 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 6.53%. The current dividend yield is 6.12% based on dividends of $1.20 and a stock price of $19.60. The current dividend yield is 6% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median. A problem is that this test works best when dividends are increasing. Also, this stock used to be an income trust with high dividends.

I get a 10 year median dividend yield of 4.68%. The current dividend yield is 6.12% based on dividends of $1.20 and a stock price of $19.60. The current dividend yield is 31% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively cheap. A problem is that this test works best when dividends are increasing. Also, this stock used to be an income trust with high dividends.

The 10-year median Price/Sales (Revenue) Ratio is 3.30. The current ratio is 2.18 based on Revenue estimate for 2025 of $2,353M, Revenue per Share of $9.00 and a stock price of $19.60. 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 dividend yield test says this even though it is not a dividend growth stock. The P/S Ratio test confirms this outcome. Not all testing agrees as the result vary from cheap to expensive. The P/B Ratio test is a good one and it also says that the stock price is relatively cheap.

When I look at analysts’ recommendations, I find Strong Buy (6), Buy (5) and Hold (2). The consensus would be a Strong Buy. The 12 month stock price consensus is $25.54 with a high of $30.00 and low of $20.00. The stock price consensus of $25.54 implies a total return of 36.43% with 30.31% from capital gains and 6.12% from dividends based on a current stock price of $17.90.

There are quite a number of analysts reporting on Stock Chase for this stock for 2025. All but two thinks it is a buy. One likes other utilities better than this one and the person reporting a hold think it is a hold for income and growth. The Amy Legate-Wolfe on Motley Fool likes this stock for its predictable cash flow. Robin Brown on Motley Fool likes this stock for its dividend. The company put out a Press Release about their fourth quarter of 2024. The company put out a Press Release about their second quarter of 2025.

Simply Wall Street via Yahoo Finance says it thinks this company is worth $37.28 CDN$ and therefore is undervalued. Simply Wall Street has two warnings on this stock of Interest Payments are not well covered by earnings; and dividend of 4.79% is not well covered by earnings.

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 Guardian Capital Group (TSX-GCG.A, OTC-GCAAF) ... learn more. The next stock I will write about will be FirstService Corp (TSX-FSV, NASDAQ-FSV) ... learn more on Monday, November 17, 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.

Guardian Capital Group

Sound bite for Twitter is: Dividend Growth Financial. Results of any stock price testing is that the stock price testing does not really matter because the stock will be bought out at next year. Debt Ratios are fine, but Liquidity should be improved. The Dividend Payout Ratios (DPR) are fine. The current dividend yield is moderate with dividend growth good. See my spreadsheet on Guardian Capital Group.

Is it a good company at a reasonable price? This stock is going to bought out next year. The only people interested in buying this stock are people who can buy lots and make a good profit on a small margin. I have not sold this stock yet because I have not come up with any stock to replace it.

I own this stock of Guardian Capital Group (TSX-GCG.A, OTC-GCAAF). I read about this stock some years ago and when I was looking for a new stock to follow, it sounded interesting.

When I was updating my spreadsheet, I noticed I have a big gain percentage wise, but I was just starting to invest in this stock and so only had 100 shares so my return is 75.68%, but I only gained for my portfolio just over $2,400.00. This stock is going to be bought out by Desjardins early next year. The stock price shot up in August 2025 because of the buyout.

There is a news item on Yahoo Finance from Investing.com about Guardian Capital stock soaring because it is being bought out by Desjardins. The expected close of this is early in 2026. Because of this, shares are up 57% this year.

If you had invested in this company in December 2014, for $1,014.03 you would have bought 57 shares at $17.79 per share. In December 2024, after 10 years you would have received $404.13 in dividends. The stock would be worth $2,431.05. Your total return would have been $2,835.18. This would be a total return of 11.55% per year with 9.14% from capital gain and 2.41% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$17.79	$1,014.03	57	10	$404.13	$2,431.05	$2,835.18

The current dividend yield is moderate with dividend growth good. The current dividend yield is low (2% to 4% range) at 2.33%. The 5 and 10 year median dividend yields are also moderate at 2.85% and 2.29%. The historical median dividend yield is low (below 2%) at 1.73%. The dividend growth is good (above 15% per year) at 20.1% per year over the past 5 years.

The Dividend Payout Ratios (DPR) are fine. The DPR for 2024 for Earnings per Share (EPS) is good at 35% with 5 year coverage at 15%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is good at 35% with 5 year coverage at 35%. The DPR for 2024 for Cash Flow per Share (CFPS) is high at 77% with 5 year coverage at good 31%. The DPR for 2024 for Free Cash Flow (FCF) is high at 50% with 5 year coverage good at 39%. The FCF for 2024 varies from $51.8M to $85.6M.

Item	Cur	5 Years
EPS	35.37%	15.02%
AEPS	35.37%	35.26%
CFPS	76.52%	31.24%
FCF	50.10%	39.01%

Debt Ratios are fine, but Liquidity should be improved. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.34 and currently at 0.22. The Liquidity Ratio for 2024 is too low at 0.84 and 0.78 currently. If you added in Cash Flow after dividends, the ratios are still too low at 0.94 and currently at 0.81. If you add back in current portion of the debt the ratios are fine at 2.60 and 3.42. The Debt Ratio for 2024 is good at 3.07 and 3.92 currently. The Leverage and Debt/Equity Ratios for 2024 are good at 1.48 and 0.48 and currently at 1.43 and 0.44.

Type	Year End	Ratio Curr
Lg Term R	0.34	0.22
Intang/GW	0.24	0.14
Liquidity	0.84	0.78
Liq. + CF	0.94	0.81
Liq. + CF +D	2.60	3.42
Debt Ratio	3.07	3.29
Leverage	1.48	1.43
D/E Ratio	0.48	0.44

The Total Return per year is shown below for years of 5 to 34 to the end of 2024. 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.
2019	5	20.11%	12.63%	9.70%	2.94%
2014	10	18.75%	11.55%	9.14%	2.41%
2009	15	16.33%	14.30%	11.83%	2.47%
2004	20	23.88%	9.68%	7.94%	1.74%
1999	25	22.03%	14.08%	11.80%	2.29%
1994	30	20.24%	14.23%	12.25%	1.98%
1990	34		14.87%	13.01%	1.86%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 3.72, 4.55 and 5.39. The corresponding 10 year ratios are 5.77, 6.87 and 7.65. The corresponding historical ratios are 10.60, 13.77 and 15.90. The current ratio is 22.47 based on a stock price of $66.96 and EPS of $2.98. the current ratio is above the high ratio of the 10 year median ratio. This stock price testing suggests that the stock price is expensive. Note that the 5 and 10 year ratios are low because of a recent year with an earnings loss.

Results of any stock price testing is that the stock price testing does not really matter because the stock will be bought out at next year. I only did one test on the P/E Ratio.

When I look at analysts’ recommendations, I find Strong Buy (2), Hold (1). The consensus is a Strong Buy. There is not much information on analysts’ recommendations as this stock is due to be bought out probably early next year at $68.00 a share. This is 3.88% higher than the current stock price of $66.96 with 1.55% from capital gains and 2.33% from dividends.

The last entry on Stock Chase is for 2023. Analysts thought that the stock was undervalued. Adam Othman on Motley Fool wrote on this stock back in 2022. He thought that the stock would continue to go down and suggested people buy on the dips. The company put out a Press Release via Globe Newswire about their fourth quarter of 2024 results. The company put out a press release via Globe Newswire about their second quarter of 2025 results.

Simply Wall Street via Yahoo Finance reviews this stock. Simply Wall Street has two warnings out on this stock of volatile share price over the past 3 months compared to the Canadian market; and large one-off items impacting financial results.

Guardian Capital Group Ltd is a diversified financial services company. Geographically, the company operates in Canada, United Kingdom, United States, and others, of which it derives maximum revenue from Canada. Its web site is here Guardian Capital Group.

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 14, 2025 around 5 pm. Tomorrow on my other blog I will write about Understanding AI.... learn more on Thursday, November 13, 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.

Quarterhill Inc

I am currently 3 stocks short of what I can cover in a year. Six stocks that I have been following have been bought out this year and a seventh stock is off the TSX under creditor protection and has ceased trading on the TSX. Two other stocks are set to be bought out soon. I am currently looking for some stocks to follow.

Sound bite for Twitter is: Tech Sector Stock. Results of stock price testing is that the stock price is probably cheap. Debt Ratios are fine, but Liquidity could improve. The company stopped paying dividends after paying the first on in 2023. Therefore, there is no dividend yield nor Dividend Payout Ratios (DPR). See my spreadsheet on Quarterhill Inc.

Is it a good company at a reasonable price? As far as I can see, this company has been struggling for quite a number of years to find a niche and make some money. It has not been terrible successful at this. The stock price is probably cheap, but that does not make it a good stock to buy. I like long term buys and I do not believe this is one.

I do not own this stock of Quarterhill Inc (TSX-QTRH, OTC-QTRHF). 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. Then they changed their focus again to intelligent transportation systems.

When I was updating my spreadsheet, I noticed that the two directors I was following have left. The Chairman is the same. The CEO is the same, but there is a new CFO who was promoted from within the company. I set up two new officers, because I could no longer find the officers I was following.

Another thing I do not like is that they keep restating their financials. That is never a good sign. I seldom change my spreadsheets when companies restate their financial. They have had earning losses in 2023 and 2024. There was also an earnings loss in 2021. An earnings loss is expected in 2025 and perhaps some profit, but extremely low in 2026. For some of my testing’s I am using 2027 estimates, but caution is needed because the further out the estimates are, the more likely they are to be wrong.

If you had invested in this company in December 2014, for $1,002.24 you would have bought 288 shares at $3.48 per share. In December 2024, after 10 years you would have received $209.52 in dividends. The stock would be worth $472.32. Your total return would have been $681.84. This would be a total loss of 4.60% per year with 7.25% from capital loss and 2.65% from dividends. Note that dividends have been cancelled.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$3.48	$1,002.24	288	10	$209.52	$472.32	$681.84

The company stopped paying dividends after paying the first on in 2023. Therefore, there is no dividend yield nor Dividend Payout Ratios (DPR).

Debt Ratios are fine, but Liquidity could improve. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.08 and currently at 0.05. The Liquidity Ratio for 2024 is low at 1.39 and 1.05 currently. If you added in Cash Flow after dividends, the ratios are still low at 1.33 and currently at 1.08. The Debt Ratio for 2024 is good at 2.32 and 2.11 currently. The Leverage and Debt/Equity Ratios for 2024 are good at 1.75 and 0.75 and currently at 1.90 and 0.90.

Type	Year End	Ratio Curr
Lg Term R	0.08	0.05
Intang/GW	0.58	1.16
Liquidity	1.39	1.02
Liq. + CF	1.33	1.08
Debt Ratio	2.32	2.11
Leverage	1.75	1.90
D/E Ratio	0.75	0.90

The Total Return per year is shown below for years of 5 to 26 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.
2019	5	0.00%	1.62%	-0.36%	1.99%
2014	10	0.00%	-4.60%	-7.25%	2.65%
2009	15	0.00%	2.85%	-1.88%	4.73%
2004	20		4.17%	0.19%	3.98%
1999	25		-6.62%	-8.00%	1.38%
1998	26		3.22%	0.34%	2.87%

The Total Return per year is shown below for years of 5 to 23 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.
2019	5	0.00%	-0.42%	-2.48%	2.06%
2014	10	0.00%	-6.90%	-9.35%	2.45%
2009	15	0.00%	-1.00%	-5.11%	4.11%
2004	20		3.98%	-0.55%	4.53%
2001	23		-0.78%	-3.56%	2.79%

The 5-year low, median, and high median Price/Earnings per Share Ratios are negative. The corresponding 10 year ratios are 9.25, 13.11 and 16.98. The corresponding historical ratios are negative. The current ratio is negative and so cannot be used in testing. The P/E Ratios for 2026 and 2027 are 97.00 and 16.17. The P/E Ratio for 2027 is a good one to use and is based on a stock price of $0.97 and EPS estimate for 2027 $0.06. It 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.

I get a Graham Price for 2027 is $ 1.37. The 10-year low, median, and high median Price/Graham Price Ratios are 0.56, 0.98 and 1.45. The 2027 ratio is 0.71 based on a stock price of $0.97. 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 10-year median Price/Book Value per Share Ratio of 0.94. The current ratio is 0.69 based on a stock price of $0.97. Book Value of $163M and Book Value per Share of $1.40. The current ratio is 26% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I cannot do any Price/Cash Flow per Share Ratio test because of negative cash flow.

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

The 10-year median Price/Sales (Revenue) Ratio is 1.54. The current P/S Ratio is 0.70 based on Revenue estimate for 2025 of $162.6M, Revenue per Share of $1.39 and a stock price of $0.97. The current ratio is 57% 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. This is from the P/S Ratio test which is one of the few tests that is a good one. The other good test is the P/B Ratio test and it also says that the stock price is cheap. The rest of the testing has problems. Note testing has been done in CDN$. Estimates are given in CDN$ and reporting is currently in CDN$.

When I look at analysts’ recommendations, I find Strong Buy (1), and Buy (2). The 12 month stock price consensus is $1.85 ($1.32 US$) with a high of $2.03 ($1.449 US$) and low of $1.69 ($1.203 US). The 12 month stock price consensus of $1.85 implies a total return of 90.76% all from capital gains based on a current stock price of $0.97.

There are two entries on Stock Chase for 20250. One is a buy and the other is a hold. The Hold says it has a good story, but it is stuck in neutral. Christopher Liew on Motley Fool says this stock is absurdly cheap and well-positioned for a breakout. This is the only entry on Motley Fool for 2025, so it is not well followed. The company put out a Press Release about its fourth quarterly results for 2024. The company put out a Press Release for its second quarterly results for 2025.

Simply Wall Street via Yahoo Finance put out a review on this stock. Simply Wall Street has two warnings of currently unprofitable and not forecast to become profitable over the next 3 years; and does not have a meaningful market cap (CA$128M).

Quarterhill Inc is focused on the acquisition, management, and growth of companies in the intelligent transportation systems (ITS) and innovation and licensing industries. 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 Guardian Capital Group (TSX-GCG.A, OTC-GCAAF) ... learn more on Wednesday, November 12, 2025 around 5 pm. Tomorrow on my other blog I will write about Retirement Planning Advice.... learn more on Tuesday, November 11, 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.

Finning International Inc

Sound bite for Twitter is: Dividend Growth Industrial. Results of stock price testing is that the stock price is relatively expensive. Debt Ratios are fine. The Dividend Payout Ratios (DPR) are good. The current dividend yield is low with dividend growth low. See my spreadsheet on Finning International Inc.

Is it a good company at a reasonable price? I was wonder why this stock took off and used Google AI and its said “primarily due to strong financial performance, record equipment backlogs, and an optimistic future outlook driven by high demand in the mining and construction sectors”. I noticed that Toromont has also taken off recently. Generally speaking, it is not a good idea to buy a stock at it all time high. I think this is a nice dividend growth stock, but it might be the wrong timing to buy. I would not buy because I have Toromont. The price seems to be on the expensive side at the moment.

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 changes in governance. They got a new CFO and Chairman. Some of the officers and directors I have been following are gone. I added one new officer. The CFO was promoted from within. I added two new directors. Few of the directors have any shares in this company, but they do have Units of Deferred Share Units. I like to follow the CEO, CFO and one or two officer, plus the Chairman and one or two directors.

If you had invested in this company in December 2014, for $1,009.20 you would have bought 40 shares at $25.23 per share. In December 2024, after 10 years you would have received $339.16 in dividends. The stock would be worth $1,523.60. Your total return would have been $1,862.76. This would be a total return of 6.98% per year with 4.21% from capital gain and 2.77% from dividends. The 5 year return is better at 11.65, see paragraph below.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$25.23	$1,009.20	40	10	$339.16	$1,523.60	$1,862.76

The current dividend yield is low with dividend growth low. The current dividend yield is low (below 2%) at 1.68%. The 5, 10 and historical median dividend yields are moderate (2% to 4% ranges) at 2.71%, 2.79% and 2.03%. The dividend growth is low (below 8% per year at 5.7% per year over the past 5 years. The last dividend increase was in 2025 and it was for 10%.

The Dividend Payout Ratios (DPR) are good. The DPR for 2024 for Earnings per Share (EPS) is good at 30% with 5 year coverage at 33%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is good at 28% with 5 year coverage at 39%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 12% with 5 year coverage at 12%. The DPR for 2024 for Free Cash Flow (FCF) is good at 18% with 5 year coverage at 39%. FCF varies from $865M, to $740M, so not particularly high variance.

Item	Cur	5 Years
EPS	30.37%	33.36%
AEPS	28.29%	38.72%
CFPS	11.77%	12.24%
FCF	17.64%	38.92%

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.27 and currently at 0.14. The Liquidity Ratio for 2024 is good at 1.65 and 1.55 currently. The Debt Ratio for 2024 is good at 1.52 and fine at 1.48 currently. The Leverage and Debt/Equity Ratios for 2024 are good at 2.94 and 1.94 and currently at 2.93 and 1.92.

Type	Year End	Ratio Curr
Lg Term R	0.27	0.14
Intang/GW	0.11	0.04
Liquidity	1.65	1.69
Liq. + CF	1.93	1.87
Debt Ratio	1.52	1.52
Leverage	2.94	2.93
D/E Ratio	1.94	1.92

The Total Return per year is shown below for years of 5 to 37 to the end of 2024. 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.
2019	5	5.69%	11.65%	8.53%	3.13%
2014	10	4.61%	6.98%	4.21%	2.77%
2009	15	6.14%	8.66%	5.66%	3.00%
2004	20	12.61%	6.34%	3.97%	2.38%
1999	25	9.97%	10.08%	7.17%	2.92%
1994	30	9.80%	9.66%	7.02%	2.63%
1989	35	7.02%	9.62%	7.14%	2.48%
1987	37	8.11%	10.85%	7.95%	2.91%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 9.11, 10.43 and 12.20. The corresponding 10 year ratios are 12.97, 17.09 and 18.67. The corresponding historical ratios are 12.59, 16.96 and 19.90. The current P/AEPS Ratio is 19.23 based on a stock price of $72.10 and EPS estimate for 2025 of $3.75. 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.

I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Earnings per Share Ratios are 9.16, 11.20 and 12.96. The corresponding 10 year ratios are 10.82, 14.06 and 17.36. The corresponding historical ratios are 11.93, 15.54 and 18.42. The current P/E Ratio is 17.63 based on a stock price of $72.10 and EPS estimate for 2025 of $4.09. The current ratio is between the median and the high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a Graham Price of $42.57. The 10-year low, median, and high median Price/Graham Price Ratios are 0.98, 1.18 and 1.39. The current ratio is 1.69 based on a stock price of $72.10. 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.

I get a 10-year median Price/Book Value per Share Ratio of 2.12. The current ratio is 3.66 based on a Book Value of $2,677M, Book Value per Share of $19.69 and a stock price of $72.10. The current ratio is 72% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I get a 10-year median Price/Cash Flow per Share Ratio of 14.36. The current ratio is 13.72 based on Cash Flow per Share estimate for 2025 of $5.50, Cash Flow of $747M and a stock price of 72.10. The current ratio is 8.6% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. I noticed that the Cash Flow does vary a lot from year to year.

I get a 10 year median dividend yield of 2.79%. The current dividend yield is 1.68% based on dividends of $1.21 and a stock price of $72.10. The current dividend yield is 40% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively expensive.

The 10-year median Price/Sales (Revenue) Ratio is 0.62. The current P/S Ratio is 0.95 based on Revenue estimate for 2025 of $10.278M, Revenue per Share of $75.59 and a stock price $72.10. The current ratio is 54% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

Results of stock price testing is that the stock price is relatively expensive. The dividend yield tests are saying that the stock price is relatively expensive. This is confirmed by the P/S Ratio test. Most of the testing is also saying that the stock price is relatively expensive. This stock took off in March of 2025 and it is just off its all-time high.

When I look at analysts’ recommendations, I find Strong Buy (5), Buy (3) and Hold (1). The consensus is a Buy. The 12 month stock price consensus is $70.89 with a high of $81.00 and low of $58.00. The consensus stock price of $70.89 implies a total return of 0% with a capital loss of 1.68% and dividends of 1.68% based on a current stock price of $72.10. To me, the stock price consensus and stock recommendations do not match. You got no gain over the next 12 month and the biggest recommendation is a Strong Buy?

There are only two entries on Stock Chase for 2025. One is a Top Pick and one is a Do Not Buy. The Do Not Buy likes TIH better. Amy Legate-Wolfe onMotley Fool likes this stock as a dividend growth stock for your TFSA. Christopher Liew on Motley Fool says this stock should be on your watch list. The company put out a Press Release about their fourth quarter of 2024. The company put out a Press Release about their second quarter of 2025.

Simply Wall Street via Yahoo Finance reviews this stock and looks at it fair value. Simply Wall Street thinks that is $84.41 and therefore this stock is undervalued. They have one warning of has a high level of debt.

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

The last stock I wrote about was about was Johnson and Johnson (NYSE-JNJ) ... learn more. The next stock I will write about will be Quarterhill Inc (TSX-QTRH, OTC-QTRHF) ... learn more on Monday, November 10, 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.

Johnson and Johnson

Sound bite for Twitter is: Dividend Growth Consumer. Results of stock price testing is that the stock price is probably still reasonable. Debt Ratios are fine, but I would like to see the Liquidity Ratio improved. The Dividend Payout Ratios (DPR) need some improvement. The current dividend yield is moderate with dividend growth low. See my spreadsheet on Johnson and Johnson.

Is it a good company at a reasonable price? This is a dividend growth stock with total return on the low side. I like companies that deliver around 8% per year in total return which includes dividends and capital gains. This company sort of does this.

I do not own this stock of Johnson and Johnson (NYSE-JNJ). As Canadians, we are told we should be buying US stocks for our portfolio. It is often recommended that we have at least 25% of our portfolio in US stocks. I have never followed this, although I have tried dipping into the US market, but I have never much money there. I bought some of this stock in June 2005 and realized a year later, in June of 2006 that it was going nowhere for me and sold. I lost almost 17% of my investment. When I bought in 2005, all the analysts were saying that it was a good buy at that time.

When I was updating my spreadsheet, I noticed a big drop in EPS from last year of 58%. This difference is Net earnings from discontinued operations, net of tax. The EPS from 2024 is down 14% from 2022 at 5.79. EPS next year is expected to be $11.06, an increase of 91%, but both the EPS for 2026 and 2027 are lower at $9 48 and $10.83.

Note that this stock is being sold in Canada as Johnson & Johnson CDR (CAD HEDG (JNJ.NE). It is a Canadian-dollar-denominated and Canadian-dollar-hedged structure that represents shares of Johnson & Johnson (JNJ), a global healthcare company, and trades on the NEO Exchange in Canada. The "CDR" stands for Canadian Depositary Receipt, and the "CAD HEDG" indicates the investment is denominated in Canadian dollars and its currency exchange rate fluctuations relative to the U.S. dollar are hedged to reduce risk for Canadian investors.

If you had invested in this company in December 2014, for $1,045.70 you would have bought 10 shares at $104.57 per share. In December 2024, after 10 years you would have received $389.40 in dividends. The stock would be worth $1,446.20. Your total return would have been $1,835.60. This would be a total return of 6.46% per year with 3.30% from capital gain and 3.16% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$104.57	$1,045.70	10	10	$389.40	$1,446.20	$1,835.60

The current dividend yield is moderate with dividend growth low. The current dividend yield is moderate (2% to 4% ranges) at 2.79%. The 5, 10 and historical median dividend yields are also moderate at 2.88%, 2.80% and 2.47%. The dividend growth is low (below 8% per year) at 5.5% per year over the past 5 years. The last dividend increase was in 2025 and it was for 4.8%.

The Dividend Payout Ratios (DPR) need some improvement. The DPR for 2024 for Earnings per Share (EPS) is too high at 85% with 5 year coverage at 124%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is good at 49% with 5 year coverage at 47%. The DPR for 2024 for Cash Flow per Share (CFPS) is high at 53% with 5 year coverage at 107%. I like to see this DPR at 40% or lower. The DPR for 2024 for Free Cash Flow (FCF) is high at 60% with 5 year coverage at 60%. There is agreement on what the FCF is at $19,842M for 2024. Analysts expect that the DPRs for EPS will be better in 2025.

Item	Cur	5 Years
EPS	84.80%	124.19%
AEPS	49.20%	46.55%
CFPS	52.69%	107.21%
FCF	59.59%	59.64%

Debt Ratios are fine, but I would like to see the Liquidity Ratio improved. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.09 and currently at 0.09. The Liquidity Ratio for 2024 is low at 1.11 and 1.07 currently. If you added in Cash Flow after dividends, the ratios are still low at 1.36 and currently at 1.47. You want this ratio at 1.50 or higher. The Debt Ratio for 2024 is good at 1.66 and 1.70 currently. The Leverage and Debt/Equity Ratios for 2024 are fine at 2.52 and 1.52 and currently at 2.43 and 1.43.

Type	Year End	Ratio Curr
Lg Term R	0.09	0.09
Intang/GW	0.24	0.22
Liquidity	1.11	1.07
Liq. + CF	1.36	1.47
Debt Ratio	1.66	1.70
Leverage	2.52	2.43
D/E Ratio	1.52	1.43

The Total Return per year is shown below for years of 5 to 36 to the end of 2024 in CDN$ if bought in an CDN$ account. 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.
2019	5	7.72%	8.22%	1.89%	6.33%
2014	10	8.24%	10.46%	5.54%	4.91%
2009	15	8.68%	12.32%	7.78%	4.54%
2004	20	8.75%	8.49%	5.14%	3.35%
1999	25	11.18%	7.34%	4.53%	2.81%
1994	30	10.11%	12.09%	8.30%	3.79%
1989	35	11.29%	13.52%	9.44%	4.08%
1988	36	11.53%	14.86%	10.27%	4.59%

The Total Return per year is shown below for years of 5 to 36 to the end of 2024 in US$ if bought in an US$ account. 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.
2019	5	5.54%	6.33%	-0.17%	6.50%
2014	10	5.93%	8.13%	3.30%	4.83%
2009	15	6.42%	10.08%	5.54%	4.54%
2004	20	7.79%	7.83%	4.21%	3.62%
1999	25	9.19%	7.84%	4.63%	3.21%
1994	30	9.99%	12.33%	8.18%	4.16%
1989	35	10.70%	12.96%	8.85%	4.10%
1988	36	10.86%	14.13%	9.61%	4.52%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 20.17, 24.37 and 27.64. The corresponding 10 year ratios are 20.73, 23.99 and 26.18. The corresponding historical ratios are 16.56, 19.62 and 22.62. The current P/E Ratio is 16.85 based on a stock price of $186.40 and EPS estimate for 2025 of $11.06. This P/E 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 also have Adjusted Earning per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 14.68, 16.72, and 18.31. The corresponding 10 year ratios are 14.62, 16.39 and 18.24. The corresponding historical ratios are 14.48, 16.33 and 18.07. The current P/E Ratio is 17.15 based on a stock price of $186.40 and EPS estimate for 2025 of $10.87. This P/E 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.

I get a Graham Price of $89.77. The 10-year low, median, and high median Price/Graham Price Ratios are 1.83, 2.04 and 2.26. The current ratio is 2.08 based on a stock price of $186.40. This P/E 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.

I get a 10-year median Price/Book Value per Share Ratio of 5.70. The current P/B Ratio is 5.66 based on a Book Value of $79,277M, Book Value per Share of $32.95 and a stock price of $186.40. The current ratio is 0.7% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. Note that the P/B Ratio is very high which means that compared to the stock price, the Book Value is very low. A good ratio is 1.50 compared to this company’s ratio of 5.66.

I also have a Book Value per Share estimate for 2025 of $32.63. This implies a ratio of 5.71 with a stock price of $186.40 and Book Value of $78,514M. This ratio is 0.2% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but at the median.

I get a 10-year median Price/Cash Flow per Share Ratio of 15.77. The current ratio is 13.69 based on Cash Flow per Share estimate for 2025 of $13.62 and a stock price of $186.40. The current ratio is 13% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. Note that this estimate is some 35% above the Cash Flow per Share of 2024.

I get an historical median dividend yield of 2.47%. The current dividend yield is 2.79% based on dividends of $5.20 and a stock price of $186.40. The current dividend yield is 13% 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 2.80%. The current dividend yield is 2.79% based on dividends of $5.20 and a stock price of $186.40. The current dividend yield is 0.5% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and at the median.

The 10-year median Price/Sales (Revenue) Ratio is 4.36. The current P/S Ratio is 4.78 based on a Revenue estimate for 2025 of $93,751M, Revenue per Share of $38.96 and a stock price of $186.40. 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.

Results of stock price testing is that the stock price is probably still reasonable. The 10 year median dividend yield test show the stock price basically at the median. The P/S Ratio test is saying that the stock price is reasonable but above the median. The rest of the testing mostly shows that the stock price is reasonable and below, at or above the median.

When I look at analysts’ recommendations, I find Strong Buy (9), Buy (3), Hold (11) and Underperform (1). The consensus would be a Buy. The 12 month stock price consensus is $199.50 with a high of $225.00 and low of $155.00. The consensus stock price of $199.50 implies a total return of 9.82% with 7.03% from capital gains and 2.79% from dividend

There are lots of entries on Stock Chase for this stock. There is a big range from Top Pick to Do Not Buy. One analyst said it had an underwhelming performance, but popped on earnings. A couple of analysts mention the legal overhand of its talcum powered allegedly causing ovarian cancer. Kay Ng on Motley Fool says that Johnson & Johnson has shown remarkable resilience through challenging market conditions. Tony Dong on Motley Fool thinks you should buy this stock for your RRSP account. He says that it is one of only two companies in the U.S. with a AAA credit rating, a testament to its financial stability and a rare accolade that underscores its safety as an investment. The company put out a Press Release about their fourth quarter of 2024. The company put out a Press Release about their third quarter of 2025.

Simply Wall Street on Yahoo Finance gives this stock a valuation of $198.03. Simply Wall Street has one warning of large one-off items impacting financial results.

Johnson & Johnson operates through pharmaceuticals, medical devices, and consumer products divisions. Its web site is here Johnson and Johnson.

The last stock I wrote about was about was Quebecor Inc (TSX-QBR.B, OTC-QBCRF) ... learn more. The next stock I will write about will be Finning International Inc (TSX-FTT, OTC-FINGF) ... learn more on Friday, November 7, 2025 around 5 pm. Tomorrow on my other blog I will write about Something to Buy November 2025.... .... learn more on Thursday, November 6, 2025 around 5 pm.

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Also, on my book blog I have put a review of the book The Age of the Strongman by Gideon Rachman learn more...