Is it a good company at a reasonable price? Note that this stock is rather cyclical, so it is best to buy somewhere in the troughs. The month income is nice and fewer and fewer companies are giving monthly dividends. I think you can do with income from this stock, but I would try to buy it off a high. I think that this stock is rather pricy at this time.
I do not own this stock of Chemtrade Logistics Income Fund (TSX-CHE.UN, OTC-CGIFF). I decided to investigate this stock after reading an article in the G&M in February 2012 about investing in small cap stocks that pay dividends. This was one of the stocks mentioned that I had never heard of before.
When I was updating my spreadsheet, I noticed that the company had a good year in 2025 with Revenue, AFFO, Distributable Cash, Net Income, Cash Flow, Dividends and Stock Price all increased in 2025 compared to 2024. They are not expected to increase again in 2026, but the stock price is up in 2026 by 13%. I noticed that all the officers I following have increased the stock that they hold in the past year. None of the Directors have, but it is not unusual for Directors to change the number of shares that they hold.
If you had invested in this company in December 2015, for $1,000.16 you would have bought 56 shares at $17.86 per share. In December 2025, after 10 years you would have received $486.78 in dividends. The stock would be worth $826.00. Your total return would have been $1,312.78. This would be a total return of 3.51% per year with 1.90% from capital loss and 5.41% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $17.86 | $1,000.16 | 56 | 10 | $486.78 | $826.00 | $1,312.78 |
However, if you had invested in this company in December 2020, for $1,002.76 you would have bought 172 shares at $5.83 per share. In December 2025, after 5 years you would have received $540.51 in dividends. The stock would be worth $2,537.00. Your total return would have been $3077.51. This would be a total return of 28.14% per year with 20.40% from capital gain and 7.74% from dividends. Note that the stock price hit a low point in 2020.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $5.83 | $1,002.76 | 172 | 5 | $540.51 | $2,537.00 | $3,077.51 |
Growth is interesting. Growth is better in the last 5 years than for past 10 years. 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 second quarter in 2026 and expected growth over this year.
| Yr | Item | Tot. Gwth | Per Year | Gwth | Coverage |
|---|---|---|---|---|---|
| 5 | Revenue Growth | 44.80% | 7.69% | 91.57% | <-12 mths |
| 5 | AFFO Growth | 11.37% | 2.18% | -5.44% | <-12 mths |
| 5 | Dis. Cash Growth | 210.94% | 25.47% | -21.25% | <-12 mths |
| 5 | Net Income Growth | 183.23% | 23.15% | 6.84% | <-12 mths |
| 5 | Cash Flow Growth | 35.55% | 6.27% | 11.07% | <-12 mths |
| 5 | Dividend Growth | -8.33% | -1.73% | 4.36% | <-12 mths |
| 5 | Stock Price Growth | 153.00% | 20.40% | 6.58% | <-12 mths |
| 10 | Revenue Growth | 46.37% | 3.88% | 14.18% | <-this year |
| 10 | AFFO Growth | -41.26% | -5.18% | -5.44% | <-this year |
| 10 | Dis. Cash Growth | 1.02% | 0.10% | -21.25% | <-this year |
| 10 | Net Income Growth | 392.90% | 17.29% | 11.92% | <-this year |
| 10 | Cash Flow Growth | 119.22% | 8.17% | -6.46% | <-this year |
| 10 | Dividend Growth | -42.71% | -5.42% | 4.73% | <-this year |
| 10 | Stock Price Growth | -17.41% | -1.90% | 6.58% | <-this year |
The current dividend yield is moderate with dividend growth restarted. The current dividend yield is moderate (2% to 4% ranges) at 4.58%. The 5 year median dividend yield was good (5% to 6% ranges). The 10 year and historical median dividend yields are high (7% or higher) at 7.16% and 8.09%. The dividends have decreased by 1.7% per year over the past 5 years. This company kept the dividends flat from 2007 to 2019, then decreased they. They have been increasing the dividends since 2024 and the last dividend increase was for 4.4% and it occurred in 2026.
Note that this company used to be an income trust. Income trusts generally have high dividend yields, and it seems that almost all of the old income trusts are having a hard time getting their dividends right after they become corporations.
The Dividend Payout Ratios (DPR) are generally good. The DPR for 2025 for Earnings per Share (EPS) is high at 56% with 5 year coverage very high at 128%. The DPR for 2025 for Adjusted Funds from Operations (AFFO) is good at 43% with 5 year coverage at 43%. The DPR for 2025 for Distributable Cash Flow (DCF) is good at 35% with 5 year coverage at 35%. The DPR for 2025 for Cash Flow per Share (CFPS) is good at 15% with 5 year coverage at 16%. The DPR for 2025 for Free Cash Flow (FCF) is high at 42% with 5 year coverage good at 32%. FCF varies from $178M to $190M. I am using the $190M.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 56.35% | 127.74% |
| AFFO | 42.87% | 42.63% |
| DCF | 34.55% | 34.76% |
| CFPS | 15.47% | 16.44% |
| FCF | 41.50% | 32.34% |
Debt Ratios could be improved and debt is high. The Long Term Debt/Market Cap Ratio for 2025 is fine at 0.16 and currently a little high at 0.62. Some analysts think that this should be at 50 and below and others think it is ok to be higher, but, of course, not higher than 1.00. The Liquidity Ratio for 2025 is too low at 0.90 and a bit better at 1.07 currently. If you added in Cash Flow after dividends, the ratios are fine at 1.49 and currently at 1.63. The Debt Ratio for 2025 is low at 1.44 and 1.44 currently. This rate is better at 1.50 or higher. The Leverage and Debt/Equity Ratios for 2025 are too high at 3.27 and 2.27 and currently at 3.29 and 2.29. These ratios are better when below 3.00 and 2.00.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.58 | 0.62 |
| Intang/GW | 0.43 | 0.42 |
| Liquidity | 0.90 | 1.07 |
| Liq. + CF | 1.49 | 1.63 |
| Debt Ratio | 1.44 | 1.44 |
| Leverage | 3.27 | 3.29 |
| D/E Ratio | 2.27 | 2.29 |
The Total Return per Year is shown below for years of 5 to 24 to the end of 2025. 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 | -1.73% | 28.14% | 20.40% | 7.74% |
| 2014 | 10 | -5.42% | 3.51% | -1.90% | 5.41% |
| 2009 | 15 | -3.65% | 6.78% | -0.17% | 6.95% |
| 2004 | 20 | -3.26% | 11.47% | 1.64% | 9.83% |
| 2001 | 24 | 1.37% | 13.04% | 0.95% | 12.09% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 6.95, 8.42 and 9.90. The corresponding 10 year ratios are 1.49, 1.29 and 1.49. The corresponding historical ratios are 7.50, 9.80 and 12.47. The current ratio is 11.64 based on a stock price of $15.72 and EPS estimate for 2026 of $1.35. The 10 year ratios make no sense. In the last 10 years there were a lot of earning losses and that why the values are so low.
If we use the 5-year low, median, and high median Price/Earnings per Share Ratios using only positive values they are 7.04, 8.98 and 10.74. The corresponding 10 year ratios are 7.13, 9.54 and 11.58. The current ratio is 11.64 based on a stock price of $15.72 and EPS estimate for 2026 of $1.35. 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 also have Distributable Cash Flow (DCF) data. The 5-year low, median, and high median Price/ Distributable Cash Flow Ratios are 4.33, 5.51 and 6.69. The corresponding 10 year ratios are 6.25, 9.89 and 11.69. The corresponding historical ratios are 7.00, 8.60 and 10.19. The current ratio is 10.03 based on DCF for the last 12 months to the second quarter and a stock price of $15.72. 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 $14.74. The 10-year low, median, and high median Price/Graham Price Ratios are 0.63, 0.77 and 0.96. The current ratio is 1.07 based on a stock price of $15.72. This stock price testing suggests that the stock price is relatively expensive.
I get a 10-year median Price/Book Value per Share Ratio of 1.47. The current ratio is 2.20 based on a Book Value of $805.7M, Book Value per Share of $7.16 and stock price of $15.72. The current ratio is 50% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
I also have Book Value per Share estimate for 2026 of $7.56. In this case the P/B Ratio would be 2.08 with a stock price of $15.72 and Book Value of $851M. Here the ratio is 42% 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 3.62. The current ratio is 5.33 based on Cash Flow per Share estimate for 2026 of $2.95, Cash Flow of $332M and a stock price of $15.72. The current ratio is 47% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
I get an historical median dividend yield of 8.09%. The current dividend yield is 4.58% based on a stock price of $15.72 and dividends of $0.72. This dividend yield is 43% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive.
I get a 10 year median dividend yield of 7.16%. The current dividend yield is 4.58% based on a stock price of $15.72 and dividends of $0.72. This dividend yield is 36% below 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 0.63. The current ratio is 0.78 based on Revenue estimate for 2029 of $1,034.8M, Revenue per Share of $20.26 and a stock price of $15.72. 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 10 year dividend yield test says this and it is confirmed by the P/S Ratio test. A number tests are saying that the stock price is relatively expensive. But, also note that this stock used to be an income trust and income trust could have quite high yields. The yield on this corporation is rather on the high side for a corporation at 4.58%.
When I look at analysts’ recommendations, I find Strong Buy (2), Buy (4) and Hold (1). The consensus would be a Buy. The 12 month stock price consensus is $19.79 with a high of $22.50 and a low of $18.50. The 12 month consensus stock price of $19.79 implies a total return of 30.47% with 25.89% from capital gains and 4.58% from dividends based on a current stock price of $15.72.
This stock is followed by a few analysts. On Stock Chase you have a couple of Buys and a Hold. There is a comment saying if it does not continue to rise, sell. Jitendra Parashar on Motley Fool likes it for the month income it produces. Amy Legate-Wolfe on Motley Fool also likes this stock for its monthly income. The company put out a press release via Business Wire about their 2025 fourth quarter. The company put out a press release via Business Wire about their second quarter of 2026.
Simply Wall Street via Yahoo Finance reviews this stock and thinks that the fair value is $14.14. Simply Wall Street has two warnings on this stock of has a high level of debt; and unstable dividend track record.
Chemtrade Logistics Income Fund provides industrial chemicals and services to customers in North America and around the world. The company is organized into two operating segments: Sulphur and Water Chemicals (SWC) and Electrochemicals. Its geographical segments are Canada, the United States, which derives maximum revenue, and Brazil. Its web site is here Chemtrade Logistics Income Fund.
The last stock I wrote about was about was Aecon Group Inc (TSX-ARE, OTC-AEGXF) ... learn more. The next stock I will write about will be Alimentation Couche-Tard Inc (TSX-ATD, OTC-ANCUF) ... learn more on Friday, August 21, 2026 around 5 pm. Tomorrow on my other blog I will write about Beaten-Down Canadian Stocks.... learn more on Thursday, August 20, 2026 around 5 pm.
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