Power Corp of Canada

Sound bite for Twitter and StockTwits is: Dividend Growth Financial. The stock price is testing as relatively cheap. This company has a lot of Life Insurances and they have suffered because of very low interest rates. Things have begun to improve. However, a recovery may take some time. See my spreadsheet on Power Corp of Canada.

I do not own this stock of Power Corp of Canada (TSX-POW, OTC-PWCDF). I started following this stock because it was on the Dividend Achievers, the Dividend Aristocrats lists and also on Mike Higgs’ list. It is a stock that I notice has been recommended lately as good value (October 2008). I would not buy it because I have shares in Power Financial, which this company controls.

When I was updating my spreadsheet, I noticed that after flat dividends from 2010 to 2014 inclusive, they began to raise dividends again. Increases are not as good as they were before the 2010 bear market. The last bear market and recession with very low interest rates was hard for life insurance companies.

Dividends were flat from 2010 to 2014 inclusive. As far as I know the company has never cut dividends. Increases have not been what where were in the past. See chart below. The last increase was in 2019 and it was for 6%.

Dividend yield is currently in the moderate to good range with the current yield at 5.72%. The 5, 10 and historical yields are 4.55%, 4.56% and 2.32%. The dividend yields have varied over time.

The Dividend Payout Ratios are good. The DPR for EPS for 2018 is 55% with 5 year coverage at 46%. The DPR for CFPS for 2018 is 9.3% with 5 year coverage at 8.9%.

Debt Ratios are fine. This is a financial company so you look at assets that cover the long term liabilities. The Debt/Investment Ratio is 89. Although the Liquidity Ratio is not important, I do calculate it and it is 1.97 in 2018. The Debt Ratio is 1.09 which is fine for a financial company.

The Total Return per year is shown below for years of 5 to 31 to the end of 2018. 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 charts below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	5.34%	-0.55%	-5.15%	4.60%
2008	10	3.08%	6.17%	0.90%	5.27%
2003	15	8.08%	4.40%	0.09%	4.31%
1998	20	10.12%	5.99%	1.97%	4.02%
1993	25	12.05%	11.41%	6.31%	5.10%
1988	30	10.51%	11.77%	7.04%	4.73%
1987	31	10.16%	10.71%	6.42%	4.28%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 10.26. 11.08 and 11.91. The corresponding 10 year ratios are 10.54, 11.84 and 13.02. The corresponding historical ratios are 10.94, 12.80 and 14.62. The current P/E Ratio is 8.85 based on a stock price of $27.52 and a 2019 EPS estimate of $3.11. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $46.40. The 10 year low, median, and high median Price/Graham Price Ratios are 0.72. 0.83 and 0.91. The current P/GP Ratio is 0.59 based on a stock price of $27.52. 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 1.20. The current P/B Ratio is 0.89 based on a Book Value of $14, 334M, Book Value per Share of $30.76 and a stock price of $27.52. This stock price testing suggests that the stock price is relatively cheap.

I get an historical median dividend yield of 2.32%. The current dividend yield is 5.89% based on dividends of $1.49 and a stock price of $27.52. The current yield is 154% below the current dividend yield. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 0.35. The current P/S Ratio is 0.24 based on 2019 Revenue estimate of $53,977M, Revenue per Share of $104.32 and a stock price of $27.52. The current ratio is 32% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

Results of stock price testing suggests that the stock price is relatively cheap. All the testing is showing up as a cheap stock price. The P/B Ratio is below 1.00 and this implies that the current stock price is below the theoretical breakup value of the company.

When I look at analysts’ recommendations, I find Buy (1) and Hold (6). The consensus would be a Hold. The 12 months stock price is $32.79. This implies a total return of 25.04% with 19.15% from capital gains and 5.89% from dividends based on a current stock price of $27.52.

See what analysts are saying on Stock Chase. Some positive and some negative comments. The Canadian Press via BNN Bloomberg talks about the consolidating Lifecos they own. Daniel Da Costa on Motley Fool says the company is an option for income. A writer on Simply Wall Street. The Canadian Press on Times Colonist talks about shareholders rejecting Say on Pay proposal.

Incorporated in 1925, Power Corp. of Canada is a diversified holding company with interests in financial services, communications, and other business sectors through its controlling interests in Power Financial. Its web site is here Power Corp of Canada.

The last stock I wrote about was about was Lassonde Industries (TSX-LAS.A, OTC-LSDAF) ... learn more. The next stock I will write about will Waste Connections Inc. (TSX-WCN, NYSE-WCN) ... learn more on Monday, June 17, 2019 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. 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 website for stocks followed and investment notes. 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 or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Lassonde Industries Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. There was a recent dividend cut and this often points to management expecting lower future earnings. The stock is testing as relatively reasonable but above the median. See my spreadsheet on Lassonde Industries Inc.

I do not own this stock of Lassonde Industries (TSX-LAS.A, OTC-LSDAF). Although this stock is not on the Investment Reporter list, MPL communications does write about this stock. It has been covered several times in their Advice Hotline emails in 2010. Reports have been favorable and they suggest buying it for dividends and long term capital gains.

When I was updating my spreadsheet, I noticed Dividends have mostly gone up on this stock, but they have been flat and have declined before. Dividends went up by 32.8% in 2019 but then declined by 26.5% in 2019. If you take 2019 into account, the 5 year increase in dividends is 10.29%, but the 10 year is a decline of 0.11%.

The dividend yield is low with the current yield at 1.25%. The 5, 10 and historical dividend yields are 1.11%, 1.495 and 1.76%. The dividend growth is current good (over 15%) at 15.48% per year over the past 5 years to the end of 2018. Dividend growth has been uneven. In the past dividends have been flat or have declined in some years. The last year with a dividend decline was 2019. The dividend increase to date is lower at 10.29% per year over the past 5 years.

The Dividend Payout Ratios are quite good. The DPR for EPS in 208 was 32% with 5 year coverage at 23%. The DPR for CFPS for 2018 was 13% with 5 year coverage at 10%.

Debt Ratios are all good. The Long Term Debt/Market Cap Ratio for 2018 is 0.21. The Liquidity Ratio for 2018 is 1.73 with 5 year median also at 1.73. The Debt Ratio is 2.21 with 5 year median at 2.13. The Leverage and Debt/Equity Ratios are 1.83 and 0.83 respectively with 5 year medians at 2.00 and 1.00 respectively.

The Total Return per year is shown below for years of 5 to 28 to the end of 2018. 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 charts below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	15.48%	15.22%	13.71%	1.51%
2008	10	4.50%	22.09%	19.88%	2.21%
2003	15	15.28%	17.32%	15.51%	1.81%
1998	20	12.66%	14.30%	5.84%	8.46%
1993	25	11.73%	14.16%	12.60%	1.55%
1990	28	11.52%	15.98%	13.96%	2.02%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 15.83, 18.30 and 20.60. The 10 year corresponding ratios are 13.68, 15.93 and 18.19. The corresponding historical ratios are 11.43, 13.15 and 15.53. The current P/E Ratio is 18.81 based on a stock price of $190.02 and 2018 EPS estimate of $10.10. This stock price testing suggest that the stock price is relatively expensive, but just into the expensive range.

I get a Graham Price of $146.30. The 10 year low, median, and high median Price/Graham Price Ratios are 1.01, 1.18 and 1.35. The current P/GP Ratio is 1.30 based on a stock price of $190.02. 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 1.95. The current P/B Ratio is 2.02 based on Book Value of $655M, Book Value per Share of $94.19 and a stock price of $190.02. The current ratio is 3.6% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get an historical median dividend yield of 1.76%. The current dividend yield is 1.25% based on Dividends of $2.38 and a stock price of $190.02. The current yield is 29% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive.

The 10 year median Price/Sales (Revenue) Ratio is 0.68. The current P/S Ratio is 0.78 based on 2018 Revenue estimate of $1,694M, Revenue per Share of $222.83 and a stock price of $190.02. The current ratio is 15% 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 probably relatively reasonable but above the median as shown by the P/B Ratio and P/S Ratio testing. You have wonder about the dividend yield testing. The dividends have recently declined, but this was after a big increase in 2018. The P/E Ratio test is showing the stock as relatively expensive, but this is not one of my favourite tests.

When I look at analysts’ recommendations, I find one Hold recommendation. So, the consensus would be a Hold. The 12 month stock price is $195.00. This implies a total return of 3.87% with 2.62% from capital gains and 1.25% from dividends.

See what analysts are saying about this stock on Stock Chase. It is not well followed but comments are positive. Brian Pacampara,on Motley Fool talks about Desjardins Securities downgrading this stock in February 2019 because of bad fourth quarter. A writer on Simply Wall Street says the company’s debt level is fine. CNW Group has published via Yahoo Finance the first quarter results for this company. Larry Jones on Avondale Advocate.

Lassonde Industries Inc is Canadian company, engaged in development, manufacturing and marketing of ready-to-drink fruit and vegetable juices and drinks. It also acts as a producer of store brand shelf-stable fruit juices and drinks in the United States and a major producer of cranberry sauces. The company operates through the single segment being the Development, manufacturing, and marketing of ready-to-drink fruit and vegetable juices and drinks and of specialty food products. Its web site is here Lassonde Industries Inc.

The last stock I wrote about was about was Goeasy Ltd (TSX-GSY, OTC-EHMEF) ... learn more. The next stock I will write about will be Power Corp of Canada (TSX-POW, OTC-PWCDF) ... learn more on Friday, June 14, 2019 around 5 pm. Tomorrow on my other blog I will write Gordon Pape and Brookfield.... learn more on Thursday, June 13, 2019 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. 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 website for stocks followed and investment notes. 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 or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Goeasy Ltd

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. The stock price has already climbed some 40% this year. It is probably on the expensive side. They are giving out lots of stock options. I have not changed my mind as I do not think this is the sort of company that I want to make money from. See my spreadsheet on Goeasy Ltd.

I do not own this stock of Goeasy Ltd (TSX-GSY, OTC-EHMEF). In April of 2016 Investment Reporter said to seek stocks with growing dividends from The Investment Reporter Key stock buys. This is one stock that was named. However, I would still rather invest in companies that are not in the business of charging very high interest rates.

When I was updating my spreadsheet, I noticed that the dividend was increased this year by some 37.8% and that the stock price also when up strongly by 40%. They are also giving out a lot of stock options. The Stock Options increase outstanding shares by 1.33% in the last 12 months. You would expect this to be around 0.50%.

Dividend yields are moderate but they have dipped at times to low (below 2%). The current dividend is 2.47% with 5, 10 and historical yields at 2.05%, 2.48% and 2.21%. Dividends have been growing strongly recently. However, there was a period in the past with no growth from, from 2010 to 2014 inclusive. See chart below.

The Dividend Payout Ratios are good. The DPR for EPS for 2018 is 24% with 5 year coverage also at 24%. The DPR for CFPS is low at 5% with 5 year coverage at 5%.

Debt Ratios are fine. The company is classified as consumer but has financial features. The long Term Debt/Market Cap for 2018 was high at 1.26. This was due to the falling of the stock price, but the whole Canadian market fell last year. However, the current ratio is 0.89 which is fine. The Liquidity Ratio for 2018 is 2.27 with a 5 year median of 1.57.

The Debt Ratio is a bit low at 1.4 with 5 year median at 1.64. The Leverage and Debt/Equity Ratios are a bit high at 3.50 and 2.50 respectively with 5 year medians at 2.57 and 1.57 respectively.

The Total Return per year is shown below for years of 5 to 23 to the end of 2018. 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 charts below.

Shareholders have done well, especially lately.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	18.89%	17.90%	15.64%	2.26%
2008	10	9.66%	16.78%	14.18%	2.60%
2003	15	12.73%	15.40%	12.86%	2.55%
1998	20		9.17%	7.60%	1.57%
1990	23		3.41%	2.63%	0.78%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 8.85, 11.97 and 14.51. The corresponding 10 year ratios are 8.80, 11.76 and 14.78. The corresponding historical ratios are 9.54, 13.22 and 16.74. The current P/E Ratio is 9.41 based on a stock price of $50.14 and 2019 EPS estimate of $5.33. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $49.97. The 10 year low, median, and high median Price/Graham Price Ratios are 0.63, 0.85 and 1.07. The current P/GP Ratio is 1.00 based on a stock price of $50.14. 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 1.37. The current P/B Ratio is 2.41 based on a stock price of $50.14, Book Value of $302M, and Book Value per Share of $20.82. The current ratio is 76% above the 10 year ratio. This stock price testing suggests that the stock price is relatively expensive.

I get an historical median dividend yield of 2.21%. The current dividend yield is 2.47% based on dividends of $1.24 and a stock price of $50.14. The current dividend yield is 11.9% above the historical 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 0.81. The current P/S Ratio is 1.20 based on 2019 Revenue of $604M, Revenue per Share of $41.71 and a stock price of $50.14. The current ratio is 49% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

Results of stock price testing is probably relatively expensive. Both the P/S Ratio test and the P/B Ratio test is showing this stock as expensive and I do not think these tests can be ignored. There has been big dividend increases recently in line with the stock price, but Revenue seems not to have kept up and neither has book value. I have always felt that Revenue growth is important.

When I look at analysts’ recommendations, I find Strong Buy (1) and Buy (5). The consensus would be a Buy. The 12 month stock price consensus is $64.00. This implies a total return of 30.12% with 27.64% from capital gains and 2.47% from dividends.

See what analysts are saying at Stock Chase. Most analysts think it has a good story. Ryan Vanzo on Motley Fool says the company has great customer service. A writer on Simply Wall Street says that the stock is undervalued. Note that the writer is using US$. Joseph Davey on Nyse News Room says the stock is giving a Buy signal. A writer on Simply Wall Street talks about insider selling. My Net Insider Selling is 0.07% of market Cap. This is high as you expect it to be no higher than 0.02%. However, the Net Insider Selling seems to be of options, not shares held. For the major insiders, shares held has gone up.

Goeasy Ltd provides financial services to own furniture, electronics, computers, and appliances. It offers merchandise leasing of household furnishings, appliances, and home electronic products to consumers under weekly or monthly leasing agreements. The company also offers unsecured installment loans to consumers. Its web site is here Goeasy Ltd.

The last stock I wrote about was about Husky Energy Inc. (TSX-HSE, OTC-HUSKF) ... learn more. The next stock I will write about will be Lassonde Industries (TSX-LAS.A, OTC-LSDAF) ... learn more on Wednesday, June 12, 2019 around 5 pm. Tomorrow on my other blog I will write about Why Retail Investors Lose.... learn more on Tuesday, June 11, 2019 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. 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 website for stocks followed and investment notes. 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 or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Husky Energy Inc

Sound bite for Twitter and StockTwits is: Dividend Paying Resource. The stock price seems relatively cheap. They are back to rising dividends and this is a good sign that the company has faith in its future earnings. See my spreadsheet on Husky Energy Inc.

I do not own this stock of Husky Energy Inc (TSX-HSE, OTC-HUSKF). I had been tracking this stock prior to buying it. I sold this stock to buy Canadian Utilities Ltd (TSX-CU, OTC-CDUAF). I gave up hoping for an oil and gas recovery. I never had much in oil and gas in any event. I had Husky from 2008 to 2017 and had a total loss of 4.53% per year.

When I was updating my spreadsheet, I noticed there is a lot of red ink. This stock has not done well for shareholders for a while.

Dividends have gone up and down and have been suspended in the past. So as a shareholder you would not know what you would get in dividends very well. However, I guess that since this is an oil and gas company an investor would assume lower or suspended dividends when the oil and gas market is suppressed.

Dividends hit a high in 2007. There were decreases from then to 2011 when dividends became flat. Dividends were suspended for 2017 and then restarted in 2018. Dividends were increased in 2019 and analysts expect further dividend increases in the future.

Dividends have been covered by CFPS in the past but not by EPS. The DPR for EPS for 2018 was low at 20%. The 5 year coverage was very high at 1352%. The DPR for EPS for this year is expected at 40%. The DPR for CFPS for 2018 was low at 6.9% with 5 year coverage at 17%.

Debt Ratios are all fine. The Long Term Debt/Market Cap Ratio for 2018 was 0.37. The Liquidity Ratio for 2018 was 1.14 with 5 year median also at 1.14. If you add in Cash Flow after dividends, the ratio would be 1.91. The debt ratio is very good at 2.26 with 5 year median at 2.20. The Leverage and Debt/Equity Ratios are also good at 1.80 and 0.80 respectively.

The Total Return per year is shown below for years of 5 to 28 to the end of 2018. 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 charts below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	-25.52%	-13.80%	-15.98%	2.18%
2008	10	-15.93%	-3.50%	-7.53%	4.03%
2003	15	-1.96%	11.41%	1.24%	10.17%
1998	20	-1.67%	10.36%	2.27%	8.08%
1993	25	10.25%	4.84%	0.18%	4.66%
1990	28	10.25%	10.66%	4.72%	5.94%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 13.78, 17.15 and 20.51. The corresponding 10 year ratios are 14.32, 16.84 and 19.36. The corresponding historical ratios are 9.65, 12.45 and 15.11. The current P/E Ratio is 10.37 based on a stock price of $12.96 and 2019 EPS estimate of $1.25. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $22.91. The 10 year low, median, and high median Price/Graham Price Ratios are 0.78, 0.99 and 1.11. The current P/GP Ratio is 0.57 based on a stock price of $12.96. 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 1.40. The current P/B Ratio is 0.90 based on Book Value of $18,752M, Book Value per Share of $18.66 and a stock price of $12.96. The current ratio is 50% 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 3.90%. The current dividend yield is 3.86% based on dividends of $0.50 and a stock price of $12.96. The current dividend yield is 1% below the historical dividend yield. This stock price testing suggests that the stock price is relatively reasonable and around the median.

The 10 year median Price/Sales (Revenue) Ratio is 1.19. The current P/S Ratio is 0.61 based on 2019 Revenue estimate of $21,240M, Revenue per Share of $21.13 and a stock price of $12.16. The current ratio is some 48% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

Results of stock price testing is coming up mostly with a stock price being relatively cheap. I never cared for the P/E Ratio test, but it is showing the same. The only one suggesting otherwise is the dividend yield test. However, since the dividends have varied so much, it would suggest that this is not especially a good test.

When I look at analysts’ recommendations, I find Buy (4), Hold (10), Underperform (1) and Sell (1). The consensus would be a Hold. The 12 month stock price is $17.13. This implies a total return of 36.03% with 32.18% and 3.86% from dividends based on a current stock price of $12.96. The recommendations are all over the place and the consensus stock price is quite high for a Hold recommendation.

See what analysts are saying about this stock on Stock Chase. Some were disappointed about the MEG deal. Ryan Vanzo on Motley Fool talks about how cheap this stock is now. A writer on Simply Wall Street talks about the company’s ownership. Dan Healing of the Canadian Press on Global News talks about the company’s future plans. Staff from the Canadian Press on Global News talks of the company restarting production at its southern drill centre in the White Rose oil field following a major oil spill off the coast of Newfoundland last fall .

Husky Energy is one of Canada's largest integrated energy companies, operating in western Canada, the United States, and the Asia-Pacific and Atlantic regions. The upstream portfolio includes light and medium crude, heavy crude, bitumen, natural gas liquids, and natural gas. Its web site is here Husky Energy Inc.

The last stock I wrote about was about was Maxar Technologies Ltd (TSX-MAXR, NYSE-MAXR) ... learn more. The next stock I will write about will be Goeasy Ltd (TSX-GSY, OTC-EHMEF) ... learn more on June 10, 2019 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. 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 website for stocks followed and investment notes. 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 or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Maxar Technologies Ltd

Sound bite for Twitter and StockTwits is: Dividend Paying Tech. This stock is certainly relatively cheap. It is certainly oversold. However, it also has problems. The biggest vulnerability is the debt ratios. On the other hand, it has just received a contract from NASA. See my spreadsheet on Maxar Technologies Ltd.

I do not own this stock of Maxar Technologies Ltd (TSX-MAXR, NYSE-MAXR). I read about this stock in MPL Communication's Advice Hotline dated October 10, 2012. CanTech likes it also. It is a Tech stock with dividends. I therefore started to follow this stock in 2013.

When I was updating my spreadsheet, I noticed that there is a big earnings loss for 2018 and it is mostly because of an impairment charge. They started to report in US$ from CDN$ in 2017 The company has moved its headquarters from Richmond BC to Westminster, Colorado in 2018. They also changed their account rules from IFRS to US GAAP in 2018..

Talk about dividends yields and growth. Dividends only were started in 2012. There was only one dividend increase and that was in 2015. The dividends used to be paid in CDN$, but they switch to US$ this year 2019. Dividends were flat from 2015 to 2018. In 2019 the dividends were decreased by probably 97%.

So, because of the dividend cut, the dividend yield went very low to 0.59%. Because the drop in stock prices, the dividend yield got over 10% in 2018. However, the dividend yield has always been low with 5, 6 and historical median yields at 1.89% for all three.

The Dividend Payout Ratios are only good when you look at cash flow. Companies can manage for some time with dividends only covered by cash flow. The DPR for EPS were fine until 2018 when the company had a massive earnings loss. Since analysts expect earnings losses to continue, it is unknown when the company will be able to cover any dividend with earnings. The DPR for CFPS for 2018 was 24% with 5 year coverage at 19%. This coverage is good.

Debt Ratios are not good on any measure. The company recognizes this and is attempting to fix them. Long Term Debt increased massively in 2017 by almost 500%. The current Long Term Debt Ratio is 7.83 US$. Certainly any ratio over 1.00 is too high and some analysts think anything over 0.50 is too high.

The Liquidity Ratio is too low. The one for 2018 is 0.75 with 5 year median of 0.86. If this ratio is not 1.00, it means that current assets cannot cover current liabilities. Even adding back in current portion of the short term debt and cash flow after dividends, the ratio is only 0.86. In the first quarter this ratio improved to 0.83 and adding back in current portion of the short term debt and cash flow after dividends it gets to 1.20.

The debt ratio is low also, with a 2018 ratio of 1.15, and remaining similar at 1.13 in the first quarter. I prefer both the Liquidity Ratio and Debt Ratio to be 1.50 for safety’s sake. The Leverage and Debt/Equity Ratios are very high with the ones for 2018 at 7.78 and 6.78 respectively and the current ones slightly higher at 7.83 and 6.94.

The Total Return per year is shown below for years of 5 to 18 to the end of 2018 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 charts below.

At the moment both Canadian and US investors in this stock is losing money.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	2.63%	-24.01%	-27.65%	3.64%
2008	10	2.18%	2.06%	-2.86%	4.92%
2003	15		0.67%	-2.49%	3.16%
2001	18		0.96%	-1.71%	2.67%

The Total Return per year is shown below for years of 5 to 16 to the end of 2018 in US$.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	-2.36%	-27.73%	-31.09%	3.37%
2008	10	-3.05%	1.94%	-3.43%	5.37%
2003	15		0.59%	-2.87%	3.45%
2002	16		-6.96%	-1.09%	-5.88%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 18.90, 22.50 and 26.10 CDN$. The corresponding 10 year median ratios are 17.97, 21.71 and 25.39 CDN$. The corresponding historical ratios are 18.04, 22.31 and 26.10 CDN$. The current P/E Ratio is negative as will the next two years of P/E Ratios. Therefore, I cannot do any P/E Ratio testing for this company.

I get a Graham Price of $24.12 CDN$. The 10 year low, median, and high median Price/Graham Price Ratios are 1.44, 1.86 and 2.19 CDN$. The current P/GP Ratios is 0.38 based on a stock price of $9.12 CDN$. 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 3.34 US$. The current P/B Ratio is 0.70 US$ based on a Book Value of $579, Book Value per Share of $10.00 and a stock price of $6.78, all in US$. The current ratio is some 79% below the 10 year median. This stock price testing suggests that the stock price is relatively cheap.

I get an historical median dividend yield of 1.89% CDN$. The current dividend yield is 0.59% based on dividends of $0.05 CDN$ ($0.04 US$) and a stock price of $9.12 CDN$. The current dividend yield is 69% below the historical dividend yield. This stock price testing suggests that the stock price is relatively expensive.

The 10 year median Price/Sales (Revenue) Ratio is 1.60 US$. The current P/S Ratio is 0.21 based on 2019 Revenue of $1,960M US$, Revenue per Share of $32.89 US$ and a stock price of $6.78 US$. The current ratio is 87% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

Results of stock price testing is mostly coming up as relatively cheap. If the P/B Ratio is below 1.00, and this stock has a P/B ratio of 0.70 US$, it means that the stock is selling below the theoretical break up value of the company and is therefore very cheap. In this case, the Dividend Yield test is not really invalid even though the test results are because of a dividend cut. Dividends are approved based on how the board expects the company to behave in the new future. The dividend cut shows that they do not expect much in the near future.

When I look at analysts’ recommendations, I find Buy (1), Hold (6) and Underperform (1). The consensus would be a Hold. The 12 month stock price consensus is $11.85 US$. This implies a total return of 75.37% with 74.78% from capital gains and 0.59% from dividends, all in US$.

There is an article on Proactive Investor talking about this company given a contract by NASA. Cestrian Capital Research on Seeking Alpha talks about the company’s problems. There is an interesting article on the Financial Post about the company adopting a tax benefit preservation plan. Jason Phillips on Motley Fool files a positive report on this company saying it is massively oversold. .

The last stock I wrote about was about was Ensign Energy Services (TSX-ESI, OTC-ESVIF) ... learn more. The next stock I will write about will be Husky Energy Inc. (TSX-HSE, OTC-HUSKF) ... learn more on Friday, June 7, 2019 around 5 pm. Tomorrow on my other blog I will write about Something to Buy June 2019.... learn more on Thursday, June 06, 2019 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. 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 website for stocks followed and investment notes. 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 or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Ensign Energy Services

Sound bite for Twitter and StockTwits is: Dividend Paying Industrial. This stock is oversold or at a relatively cheap price. They have a debt problem that they are addressing. See my spreadsheet on Ensign Energy Services .

I do not own this stock of Ensign Energy Services (TSX-ESI, OTC-ESVIF). I bought this stock in June 2012. Stock is a good one and was rather cheap in June of 2012. I had been following this stock for some time. I sold this stock in December 2014 to buy Mullen instead. Details of why is in a December 2014 post. I know I would be selling Ensign at a loss, but I also could buy Mullen cheaply. See post here here.

When I was updating my spreadsheet, I noticed that long term debt has increased a lot (456%) and Long Term Debt/Market Cap is now 1.83. They have issued senior unsecured notes. In the first quarter they repaid the unsecured notes and got a secure Bank Facility. The Long Term Debt/Market Ratio is now 2.23. When this ratio is above 1.00 it means that they have a higher long term debt than the market value of the stock.

They started dividends in 1995 and they had dividend increases until 2015. Since 2015 dividends have been flat. I am sure they will remain so until they have positive earnings. Analysts are not suggesting any dividend cut or suspension in the near future.

The Dividend Payout Ratios are only positive for CFPS. They cannot cover the dividends with earnings. Since analysts do not expect positive earnings in the near future, it is uncertain when they will be covered by earnings. So far, the dividends are covered by cash flow, with DPR for 2018 at 33% with 5 year coverage at 29%.

Debt Ratios are improving and except for the Long Term Debt/Market Cap are fine currently. The Long Term Debt/Market Cap is far to high at 1.83 in 2018 and 2.26 currently. Part of the problem is the steep decline in stock price, but it is not the whole problem. The Liquidity Ratio has been really low lately and the one for 2018 was 0.77. Even with Cash Flow less dividend it was only 0.89 for 2018. However, they have improved their position in 2019 to a current ratio of 1.96.

The Debt Ratio for 2018 is fine at 1.78 and with a current ratio of 1.77. Leverage and Debt/Equity Ratios for 2018 are higher than they have been historically, but are still fine at 2.29 and 1.29 in 2018.

The Total Return per year is shown below for years of 5 to 27 to the end of 2018. 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 charts below.

I held this stock between 2012 and 2014 and lost money on it. The stock price at 5.10 is lower than my sale price of $10.33.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	1.76%	-17.48%	-22.39%	4.91%
2008	10	3.74%	-4.53%	-9.81%	5.27%
2003	15	9.84%	0.00%	-5.08%	5.08%
1998	20	9.73%	11.29%	3.76%	7.52%
1993	25	15.73%	14.20%	6.66%	7.54%
1991	27		25.82%	13.17%	12.65%

The 5 year low, median, and high median Price/Earnings per Share Ratios are -4.94, -7.40 and -9.87. The 10 year corresponding ratios are 10.12, 14.12 and 17.95. The corresponding historical ratios are 8.86, 12.41 and 16.67. The current P/E Ratio is -7.50 based on a stock price of $5.10 and 2018 EPS estimate of a loss of $0.68. The 2019 EPS estimate is also negative, so this testing is not possible.

I get a Graham Price of $9.43. The 10 year low, median, and high median Price/Graham Price Ratios are 0.66, 0.84 and 1.08. The current P/GP Ratio is 0.54 based on a stock price of $5.10. 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 1.15. The current P/B Ratio is 0.48 based on a Book Value of $1,677M, Book Value per Share of $10.68 and a stock price of $5.10. The current ratio is 58% below the 10 year ratio. This stock price testing suggests that the stock price is relatively cheap.

I get an historical median dividend yield of 1.87%. The current dividend yield is 9.41% based on dividends of $0.48 and a stock price of $5.10. The current yield is 403% above the historical dividend yield. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 1.22. The current P/S Ratio is 0.46 based on 2019 Revenue estimate of $1,757M, Revenue per Share of $11.19 and a stock price of $5.10. The current ratio is 62.7% 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 relatively cheap. The P/E Ratio testing is not possible with so many recent earning losses and especially since the next two EPS is expected to be negative also. The P/B Ratio is below 1.00, which means that the stock is selling below is theoretical breakup value. The best tests are the P/B Ratio, the dividend yield test and the P/S Ratio test for this stock.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (5), Hold (3) and Underperform (1) Recommendations. The consensus would be a Buy. The 12 month stock price is $7.20. This implies a total return of 50.59% with 41.18% from capital gains and 9.41% from dividends.

See what analysts are saying on Stock Chase. The last two entries say “Don’t Buy”. Daniel Da Costa on Motley Fool likes this company. He says they have made a commitment to reduce the debt load. A writer on Simply Wall Street looks at this company’s risk level. Dan Healing via CBC says purchase of Trinidad Drilling saw revenue jump 72% for this company. Ensign reports first quarterly report of 2019 via Yahoo Finance.

Ensign Energy Services Inc is a Canada-based oil services company. It offers services in drilling and well servicing, oil sands coring, directional drilling, underbalanced and managed pressure drilling, equipment rentals, transportation, wireline services, and production testing services. The majority of the company's revenue is derived from the United States and Canada. Ensign's customers include crude-oil, natural gas, and geothermal operators. Its web site is here Ensign Energy Services.

The last stock I wrote about was about was Hardwoods Distribution Inc (TSX-HDI, OTC-HDIUF) ... learn more. The next stock I will write about will be Maxar Technologies Ltd (TSX-MAXR, NYSE-MAXR) ... learn more on Wednesday, June 05, 2019 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks June 2019.... learn more on Tuesday, June 04, 2019 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. 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 website for stocks followed and investment notes. 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 or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Hardwoods Distribution Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Materials stock. Dividends have been volatile in the past and they probably will be again in the future. However, the stock is currently quite cheap. This points to a possible opportune time to buy this stock. See my spreadsheet on Hardwoods Distribution Inc.

I do not own this stock of Hardwoods Distribution Inc (TSX-HDI, OTC-HDIUF). In April 2017, I asked for suggestions on what stocks I should now follow because of a number that I had followed had been bought out. This was one of the suggestions.

When I was updating my spreadsheet, I noticed that the shareholders who bought at the right time have done very well. Shareholders who bought 10 years ago have a total return of 30.85% per year and good increases in dividends lately.

This company used to be an income trust but changed to a corporation in 2011. Dividends started out high as was usual with income trust. Dividends were cut in 2009, but they knew at that time they had to change to a corporation. Dividends were restarted in 2012. Dividends went from a median of 14.21% to one of 1.72% when the change to a corporation was made.

Dividend yields are currently low to moderate with the current dividend yield at 2.69% and 5, 10 and historical yields at 1.36%, 1.46% and 1.90%. The dividend growth is currently good with dividend growth over the past 5 years are 17.12% per year. The last increase occurred in 2018 and it was for 10.3%.

The Dividend Payout Ratios are fine. The DPR for EPS for 2018 is 20% with 5 year coverage at 19%. The DPR for CFPS is $12% with 5 year coverage at 10%.

Debt Ratios are fine, but current ones have turned lower. The Long Term Debt/Market Cap Ratio for 2018 is 0.01, but it rises to 0.34 in 2019. The rise in Long Term Debt is due to accounting changes. The Liquidity Ratios are good with the ratio for 2018 at 2.20 and 5 year median at 2.20 also. The Debt Ratio for 2018 is 2.80 with 5 year median also at 2.80. Leverage and Debt/Equity Ratios for 2018 are good at 1.56 and 0.56 respectively with 5 year ratios at 1.56 and 0.56.

The ratios for the first quarter of 2019 are lower with Liquidity at 1.94 and Debt Ratio at 2.04. These are still good. Leverage and Debt/Equity Ratios for the first quarter of 2019 are still good but higher at 1.96 and 0.96 respectively.

The Total Return per year is shown below for years of 5 to 14 to the end of 2018. 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 charts below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	17.12%	4.43%	2.18%	2.25%
2008	10	-6.77%	30.85%	27.58%	3.27%
2004	14	-6.20%	2.63%	-0.63%	3.26%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 11.26, 12.94 and 15.38. The corresponding 10 year Ratios are 9.46, 12.26 and 14.68. The corresponding historical ratios are 9.18, 10.78 and 14.21. The current P/E Ratio is 8.57 based on a stock price of $11.91 and 2019 EPS Ratio of $1.39. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $19.99. The 10 year low, median, and high median Price/Graham Price Ratios are 0.63, 0.82 and 1.04. The current P/GP Ratio is 0.60 based on a stock price of $11.91. 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 1.25. The current P/B Ratio is 0.93 based on a Book Value of $275M, Book Value per Share of $12.77 and a stock price of $11.91. The current ratio is 25% below the 10 year ratio. This stock price testing suggests that the stock price is relatively cheap.

I get an historical median dividend yield of 1.90%. The current dividend yield is 2.69% based on dividends of $0.32 and a stock price of $11.91. The current dividend is some 41% above the historical dividend yield. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 0.31. The current P/S Ratio is 0.21 based on 2019 Revenue estimate of $1,191M, Revenue per Share of $55.40 and a stock price of $91.11. The current ratio is 31% 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 relatively cheap. Generally, I excluding dividend yield testing on old income trusts, however, this has the same results as the other tests. The P/B Ratio is below 1.00 at 0.93. When a stock sells below the book value, it also denotes a cheap price.

When I look at analysts’ recommendations, I find Strong Buy (1) and Buy (4). The consensus would be a Buy. The 12 month stock price is $17.20. This implies a total return of 47.10% with 44.42% from Capital Gains and 2.69% from dividends based on a current stock price of $11.91.

See what analysts are saying on Stock Chase. The latest analyst says to watch the price. Susan Portelance on Motley Fool in an older report says it is a solid company. A writer on Simply Wall Street talks about this stock’s beta. A writer at Simply Wall Street on Yahoo Financial says it is a stock worth watching.

Hardwoods Distribution Inc is a Canadian company which operates a network of distribution centers in Canada and the US engaged in the wholesale distribution of hardwood lumber and related sheet goods and specialty products. Its web site is here Hardwoods Distribution Inc.

The last stock I wrote about was about was Industrial Alliance Ins. & Fin. Srv. Inc (TSX-IAG, OTC-IDLLF) ... learn more. The next stock I will write about will be Ensign Energy Services (TSX-ESI, OTC-ESVIF) ... learn more on Monday, June 3, 2019 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. 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 website for stocks followed and investment notes. 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 or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Industrial Alliance Ins. & Fin. Srv. Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Financial. The stock price is cheap to reasonable. Life Insurance companies have had problems due to very low interest rates. They have restarted dividend increases. See my spreadsheet on Industrial Alliance Ins. & Fin. Srv. Inc.

I do not own this stock of Industrial Alliance Ins. & Fin. Srv. Inc (TSX-IAG, OTC-IDLLF). This was a stock shown as a dividend growth stock on the Canadian All Star List. This link to this report is here.

When I was updating my spreadsheet, I noticed that there seems to be a lot of insider selling at 0.08%. The stock really took it on the chin in 2018, but it has recovered somewhat and is up by almost 20% this year. It would seem in the plan of arrangement dated January 1, 2019; the company name has changed to iA Financial Corp except most sites are still show the name as Industrial Alliance Ins. & Fin. Srv. Inc and do not recognize iA Financial.

The dividends are in the moderate range. The current dividend yield is 3.18%, with 5, 10 and historical yields at 2.69%, 2.80% and 2.41%. Dividend increases have varied over time. Very low interest rates were bad for insurance companies. The last dividend increase was in 2018 and it was for 9.2%. The company paid 11.2% more dividends in 2018 than in 2017. See chart below for dividend growth over the past 18 years.

The Dividend Payout Ratios are fine. The DPR for EPS is good at 28.4% for 2018. The 5 year coverage is also good at 28.1%. The DPR for CFPS for 2018 is very good at 9.69% with 5 year coverage higher at 33%.

Debt Ratios are fine. Because this is an insurance company, you want to look at how assets cover their long term liabilities. The Ratio for this company is 0.79 so this is good. The Liquidity Ratio is not important for financials. The Debt Ratio is good for an insurance company at 1.10.

The Total Return per year is shown below for years of 5 to 18 to the end of 2018. 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 charts below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	10.16%	1.36%	-1.48%	2.84%
2008	10	5.40%	10.11%	6.45%	3.66%
2003	15	10.62%	7.74%	4.69%	3.05%
2000	18	10.31%	7.01%	4.33%	2.68%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 10.21, 11.37 and 12.34. The corresponding 10 year ratios are 9.39, 11.31 and 12.53. The historical ratios are 10.39, 11.64 and 13.41. The current P/E Ratio is 8.68 based on a stock price of $52.15 and 2019 EPS Estimate of $6.01. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $85.20. The 10 year low, median, and high median Price/Graham Price Ratios are 0.62, 0.75 and 0.82. The current P/GP Ratio is 0.61 based on a stock price of $52.15. 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 1.09. The current P/B Ratio is 0.97 based on Book Value of $5,741M, Book Value per Share of $53.68 and a stock price of $52.15. 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.

I get an historical median dividend yield of 2.41%. The current dividend yield is 3.18% based on dividends of $1.66 and a stock price of $52.15. The current dividend yield is 32% above the historical dividend yield. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 0.53. The current P/S Ratio is 0.45 based on last 12 month Revenue, Revenue per Share of $114.70 and a stock price of $52.15. The current P/S Ratio is 14% 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 cheap to reasonable. I see no problems with any of the tests.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (6) and Hold (2). The consensus would be a Buy. The 12 month stock price consensus is $60.78. This implies a total return of 19.73% with 16.55% from capital gains and 3.18% from dividends.

See what analysts think on Stock Chase. They think it is a safe uninteresting bet. Joey Frenette on Motley Fool likes this stock. A Writer on Simply Wall Street looks at this company’s ROE. Marion Hillson on The Enterprise Leader talks about some recent analyst’s reports.

IA Financial Corp, formerly Industrial Alliance Insurance and Financial Services Inc is a life and health insurance company. It offers life and health insurance products, savings and retirement plans, mutual funds, securities, auto and home insurance, mortgages, and others. Its web site is here Industrial Alliance Ins. & Fin. Srv. Inc.

The last stock I wrote about was about was Ritchie Bros Auctioneers Inc (TSX-RBA, NYSE-RBA) ... learn more. The next stock I will write about will be Hardwoods Distribution Inc (TSX-HDI, OTC-HDIUF) ... learn more on Friday, May 31, 2019 around 5 pm. Tomorrow on my other blog I will write about Women and Investing.... learn more on Thursday, May 30, 2019 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. 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 website for stocks followed and investment notes. 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 or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Ritchie Bros Auctioneers Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. My stock price testing shows the stock price to be reasonable. Shareholders have quite well with this stock. See my spreadsheet on Ritchie Bros Auctioneers Inc.

I do not own this stock of Ritchie Bros Auctioneers Inc (TSX-RBA, NYSE-RBA). This was a stock suggestion I got and also it was a dividend growth stock found in the Canadian All Star List. See the blog here.

When I was updating my spreadsheet, I noticed that they seemed to change the way that they calculated Revenue without any comment or explanation. I like it when there is an explanation of such changed and a note on it. In 2016 and 2017 the Revenue in the annual statements are $566.40M and $610.52M. However, in 2018 they restate the Revenue for these years as $1126.977M and $971.191M.

When they do such things, I prefer a number beside the change and a reference to an explanation. They do the American report of 10-K. These reports are huge. However, large reports do not necessarily give you better information. I am not impressed with the 10-K report. More data is not necessarily good data.

Dividends are paid in US$. The dividend yields have been low to moderate. The current yield is 2.13%, with 5, 10 and historical ones at 2.20% 2.18% and 1.95%. The dividend growth has lately been low with the growth at 6.8% per year over the past 5 years. The last dividend increase occurred in 2018 and it was for 5.9%. See chart below.

The Dividend Payout Ratios are fine. The Dividend Payout Ratio for 2018 for EPS is 63% with 5 year coverage at 67% US$. The DPR for CFPS for 2018 is 36% with 5 year coverage at 43% in US$.

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio is good at 0.20. The Liquidity Ratio is low at 1.37 but if you add in cash flow after dividends it is acceptable at 1.53. The Debt Ratio at 1.69 is fine. The Leverage and Debt/Equity Ratios at 2.47 and 1.46 are also fine.

The Total Return per year is shown below for years of 5 to 20 to the end of 2018 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 charts below.

CDN$	Years	Div Gth	Tot Ret	Cap Gain	Div
2013	5	12.20%	15.55%	12.89%	2.66%
2008	10	8.66%	7.29%	5.45%	1.84%
2003	15	19.67%	11.64%	9.51%	2.14%
1998	20		11.42%	9.81%	1.61%

The Total Return per year is shown below for years of 5 to 20 to the end of 2018 in US$.

US$	Years	Div Gth	Tot Ret	Cap Gain	Div
2013	5	6.75%	9.89%	7.50%	2.39%
2008	10	7.49%	6.42%	4.39%	2.02%
2003	15	13.85%	11.61%	9.15%	2.46%
1998	20		12.46%	10.47%	1.98%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 25.31, 29.30 and 33.30. The corresponding 10 year ratios are 25.35, 29.77 and 34.18. The historical ratios are 25.39, 30.03 and 33.30. The current P/E Ratio is 28.38 in CDN$ based on a stock price of $45.42 and 2018 EPS estimate of $1.60 ($1.19 US$) and a stock price of $45.42. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $19.18 CDN$. The 10 year low, median, and high median Price/Graham Price Ratios are 1.95, 2.35, and 2.71 in CDN$. The current P/GP Ratio is 2.37 based on a stock price of $45.42 CDN$. 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 4.20 US$. The current P/B Ratio is 4.45 US$ based on Book Value of $828M, Book Value per Share of $7.60 and a stock price of $33.81 US$. The current ratio is 6% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get an historical median dividend yield of 1.99% CDN$. The current yield is 2.13% based on dividends of $0.97 CDN$ ($0.72 US$). The current yield is 9% above the historical 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 5.52 US$. The current P/S Ratio is 2.88 based on 2019 Revenue estimate of $1,278M, Revenue per Share of $11.73 and a stock price of $33.81 US$. The current P/S Ratio is some 48% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

Results of stock price testing is probably reasonable and around the median. Since the 2018 statements seems to have changed how they calculate revenues, I would be very leery of relying on the P/S Ratio test. I find nothing to criticize the other tests. They are showing the stock price as reasonable and either above or below the median. Even though the P/E Ratio is high, it is not out of line with the history of the P/E Ratio for this stock.

When I look at analysts’ recommendations, I find Strong Buy (2), Hold (6), Underperform (1) and Sell (1). The consensus would be a Hold, but the recommendations are really all over the place. The 12 months stock price is $31.00US or $41.69 CDN$. This implies a total loss of 6.09% with capital loss at 8.22% and dividends at 2.13%.

See what analysts are saying about on Stock Chase Analysts think it has performed well. Will Ashworth on Motley Fool likes this company and points out it helps people finance purchase of its equipment. A writer on Simply Wall Street thinks the high P/E Ratio says it is overpriced. A writer on Simply Wall Street thinks that mid-caps, like this company, outperform small and large caps.. Martin Roberts on The Enterprise Leader talks about recent institution trades in this company.

British Columbia-based Ritchie Brothers operates the world's leading marketplace for heavy equipment. Started in 1958 as a live auctioneer of industrial equipment, it has greatly expanded its operations to include the sale of construction, agricultural, oilfield, and transportation equipment in a variety of venues. It now operates 40 live auction sites in 13 countries, along with an online marketplace, IronPlanet. Its web site is here Ritchie Bros Auctioneers Inc.

The last stock I wrote about was about was HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF) ... learn more. The next stock I will write about will be Industrial Alliance Ins. & Fin. Srv. Inc (TSX-IAG, OTC-IDLLF) ... learn more on Wednesday, May 29, 2019 around 5 pm. Tomorrow on my other blog I will write about Why I can live off my dividends.... learn more on Tuesday, May 28, 2019 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. 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 website for stocks followed and investment notes. 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 or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

HLS Therapeutics Inc

Sound bite for Twitter and StockTwits is: Dividend Paying Health Care. The stock price is testing as expensive, but I would suspect that it might be more reasonable because of the recent bought deal at $16.00. I moved the coverage of this stock up from November because it is a stock I now own. I do not own much, but it is a interesting stock. See my spreadsheet on HLS Therapeutics Inc.

I own this stock of HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF). I got this stock because it did a reverse takeover of Automodular Corp (TSX-AM, OTC-AMZKF) on March 12, 2018. There was a plan of arrangement whereby Automodular shareholders got 0.165834 HLS common shares and one HLS preferred share. The HLS preferred shares were a form of contingent value right allowing AMD shareholders to have an equity stake linked to the outcome of litigation that had been ongoing for several years between AMD and General Motors.

When I was updating my spreadsheet, I noticed that so far, they have only earnings losses, but they are expected to made a profit this year. Revenue is going up very well with Revenue up 46% per year over the past 3 years and Revenue per Share up $38% per year over the past 3 years. This company reports in US$.

Dividends have just been started at the end of 2018 and 2019 will be the first year of dividends. There has yet been no increase in dividends, but I am hopeful. The current yield is low at just 1.24%.

The Dividend Payout Ratios are too high for EPS. The DPR for EPS for 2018 is not calculable as there was an earnings loss in 2018. The DPR for 2019 is expected to be 400% and dropping to 59% in 2020. The DPR for CFPS is fine with DPR for CFPS for 2018 at 3% and then rising to 15% in 2019

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2018 is 0.33 in US$. The Liquidity Ratio is very low at 0.83 for 2018, but add in cash flow after dividends and it is 1.66 in US$. The Debt Ratio is very good at 2.07 for 2018. The Leverage and Debt/Equity Ratios for 2018 are good at 1.93 and 0.93, respectively in US$.

The Total Return per year is shown below for years of 3 to the end of 2018. 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 charts below.

My actual total return is 13.03% per year with 6.93% from capital gains and 6.10% from dividends. I had Automodular Corp stock and this caused the difference between what HLS has done and how well I did. I followed Automodular in to HLS stock and then bought some more HLS shares.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2015	3		-2.54%	-2.65%	0.11%

The 5 year low, median, and high median Price/Earnings per Share Ratios are all negative because this company has not yet had a profit. You cannot do any testing with P/E Ratios. The current P/E Ratio is 321.40 in CDN$. This is very high. It is expected to moderate to 47.26 next year.

The best I can do is get a current Graham Price of $2.95. The 2 year low, median, and high median Price/Graham Price Ratios are 2.86, 3.78 and 4.70. The current P/GP Ratio is 5.44 based on a stock price of $16.07. This stock price testing suggests that the stock price is relatively expensive. This is in CDN$.

I get a 3 year median Price/Book Value per Share Ratio of 1.25. The current P/B Ratio is 2.24 based on Book Value of $157M, Book Value per Share of $5.75 and a stock price of $12.88. The current ratio is some 79% above the 3 year median. This stock price testing suggests that the stock price is relatively expensive. This is in US$. (Note that a P/B Ratio of 1.25 is low, but a ratio of 2.24 is a little high.)

I cannot do an historical median dividend yield test because they just started to pay dividends.

The 3 year median Price/Sales (Revenue) Ratio is 4.12. The current P/S Ratio is 5.82 based on 2019 Revenue estimate of $61M, Revenue per Share of $2.21 and a stock price of $12.88. The current ratio is 41% higher than the 3 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This is in US$.

Results of stock price testing is that the stock is relatively expensive. However, since there has just been a bought deal at $16.00, its current price of $16.07 is probably reasonable. It is interesting that analysts expect the company to start to make a profit in 2019, but they also expect Revenue to decline this year and next.

When I look at analysts’ recommendations, I find Buy (2) recommendations. I found it surprising to have any analysts following this stock. The 12 month stock price is $21.50. This implies a total return of 68.17% with 66.93% from capital gains and 1.24% from dividends.

A writer on Simply Wall Street reviews this stock and its dividend on Yahoo Finance. Ambrose O'Callaghan onMotley Fool likes this stock. He says it has gone up 550% in last year, but I cannot see that in any share price. A write on Simply Wall Street via Yahoo Finance says that Hedge Funds have a substantial investment in this company. A news report on Newswire talks about a bought deal with shares at $16.00. There is an announcement of an Bloom Burton Award for the CEO of this company on Business Wire.

HLS Therapeutics Inc is a specialty pharmaceutical company. It is focused on the acquisition and commercialization of branded pharmaceutical products in the North American markets. The company earns most of its revenue from the United States. Its web site is here HLS Therapeutics Inc.

The last stock I wrote about was about was Reitmans (Canada) Ltd (TSX-RET.A, OTC-RTMAF) ... learn more. The next stock I will write about will be Ritchie Bros Auctioneers Inc (TSX-RBA, NYSE-RBA) ... learn more on Monday, May 27, 2019 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. 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 website for stocks followed and investment notes. 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 or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.