Wednesday, May 23, 2018

Industrial Alliance Ins. & Fin. Srv. Inc.

Sound bite for Twitter and StockTwits is: Dividend growth finance. Stock price is cheap to reasonable. Life Insurance companies should do better now with rising interest rates. 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. See this list here.

Dividends yields are moderate with low to moderate dividend growth. The 5, 10 and historical median dividend yield 2.60%, 2.80% and 2.38%. The moderate dividend growth happened in the past and has not been recent. See the table below. The last dividend increase occurred in 2017 and was for 8.6%. It did have dividends flat for a time after the last recession. All insurance companies had problems following the last recession because of very low interest rates.

The Dividend Payout Ratio for 2017 for EPS was 30% with 5 year coverage at 28%. The DPR for CFPS for 2017 was 97% with 5 year coverage at 26%. It is often the 5 year coverage that is the important one because any company can have a low coverage in a year.

The Total Return is show below for years of 5 to 17. 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.

Generally shareholders have done well with this stock. The total return over the past 10 years is low because the stock price hit a high 10 years ago. This does point to the importance of ensuring you are paying at least a reasonable price for a good stock. However, most pricing problems did not show up until the following year.

Also all life insurance companies had a hard time after the last recession because of very low interest rates. They will do better now that interest rates are rising.

Years Div Gth Tot Ret Cap Gain Div
5 7.85% 16.66% 13.77% 2.88%
10 6.53% 5.61% 3.46% 2.15%
15 10.50% 10.20% 7.67% 2.53%
16-17 10.25% 8.76% 6.55% 2.21%


The 5 year low, median and high median Price/Earnings per Share Ratios are 10.21, 11.37 and 12.68. The corresponding 10 year ratios are 10.10, 11.37 and 12.62. The corresponding historical ratios are 10.55, 11.81 and 13.67. The current P/E Ratio is 9.83 based on a stock price of $52.98 and 2018 EPS estimate of $5.39. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $77.76. The 10 year low, median and high median Price/Graham Price ratios are 0.67, 0.73 and 0.83. The current P/GP Ratio is 0.68 based on a stock price of $52.98. This stock price testing suggests that the stock price is reasonable and below the median.

I get a 10 year median Price/Book Value per Share of 1.12. The current P/B Ratio is 1.06 based on Book Value of $5,463M, Book Value per Share of $49.86 and a stock price of $52.98. Note that any P/B Ratio below 1.50 is considered to be a low ratio. The current ratio is some 5% below the 10 year median ratio. This stock price testing suggests that the stock price is reasonable and below the median.

I get an historical median dividend yield of 2.38%. The current dividend yield is 2.87% based on dividends of $1.52 and a stock price of $52.98. The current yield is some 21% 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 0.52 based on 2018 Revenue estimate of $11,256M, Revenue per Share of $94.56 and a stock price of $52.98. The current ratio is 2% below the 10 year median ratio. This stock price testing suggests that the stock price is reasonable and below the median.

When I look at analysts’ recommendations I find Buy (3) and Hold (5) recommendations. The consensus recommendation would be a Hold. The 12 month stock price is $63.63. This implies a total return of 22.97% with 20.10% from capital gains and 2.87% from dividends. This is based on a current stock price of $52.98.

Felix Olson on Simply Wall Street thinks this stock is a good dividend payer. Scott Perkins on Simply Wall Street thinks that this stock is priced below its intrinsic value. Mik Veccio on Alba Journal says the Williams Percent Range is -55.77 on this stock and that means that it is neither overbought or oversold. Ryan Goldsman on Motley Fool thinks that there is a lot of upside to this stock. See what analysts are saying about this stock on Stock Chase. They like this company.

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 25, 2018 around 5 pm. Tomorrow on my other blog I will write about Defined Contribution Pensions.... learn more on Thursday, May 24, 2018 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.

Tuesday, May 22, 2018

Ritchie Bros Auctioneers Inc.

I started this blog May 21, 2008, so I have been doing this for 10 years now.

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. It seems from my testing that the stock price is relatively reasonable. It does not matter whether testing is in US$ or CDN$ the results are basically the same. However, the 12 month stock price is below current price. 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 all-star list here. The blogger Dividend Earner wrote on about this stock in August 2017.

This is a stock I decided to follow as several of the stocks I followed have been removed from the TSX for various reasons. This stock publishes its reports in US$. It also listed on the NYSE before listing on the TSX.

Dividends are paid in US$. Dividend yields have been low to moderate. The 5, 10 and historical dividend yields are 2.22%, 2.18% and 1.90%. Dividend growth was higher when this stock when public than currently. The last dividend increase was 2016 and it was for 6.3%. See dividend increases in the chart below. These are in US$ terms. The CDN$ terms have corresponding yields of 2.26%, 2.12% and 1.91%.

The Dividend Payout Ratio for 2017 was the highest ever at 99%. The 5 year coverage is much better at 66%. The DPR for CFPS for 2017 was 53% with 5 year coverage at 46%. Analysts expect these ratios to improve this year.

The Total Return is show below for years of 5 to 19. 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.

By and large, shareholders have done well. The 10 year return is low because the stock hit a high 10 years ago. This does point to the fact that it is important not to overpay for stocks, even good stocks. I have charts in US$ and CDN$. The difference is because of the exchange rates changing over time.

This Chart is in US$ terms.

Years Div Gth Tot Ret Cap Gain Div
5 7.67% 9.92% 7.46% 2.46%
10 8.53% 2.55% 0.82% 1.73%
14-15 14.67% 15.00% 12.11% 2.89%
19 12.46% 10.50% 1.96%


This Chart is in CDN$ terms.

Years Div Gth Tot Ret Cap Gain Div
5 12.78% 15.44% 12.65% 2.79%
10 11.15% 4.99% 3.20% 1.79%
14-15 20.24% 12.73% 10.42% 2.32%
19 11.02% 9.36% 1.65%


The 5 year low, median and high median Price/Earnings per Share Ratios are 24.16, 28.14 and 32.12. The corresponding 10 year ratios are 24.77, 29.18 and 33.59. The historical ratios are 25.43, 30.13 and 33.54. I must admit that these ratios seem high to me. The current P/E Ratio is 30.47. This stock price testing suggests that the stock price is relatively reasonable but above the median. This is in CDN$ terms.

I get a Graham Price of $16.72. The 10 year low, median and high median Price/Graham Price Ratios are 1.87, 2.29 and 2.71. These also seem high to me. The current P/GP Ratio is 2.51 based on a stock price of $41.99. This stock price testing suggests that the stock price is relatively reasonable but above the median. This is in CDN$ terms.

I get a 10 year median Price/Book Value per Share of 4.50. The current P/B Ratio is 4.66 based on Book Value of $752M, Book Value per Share of $7.00 and a stock price of $32.61. I also find this ratio high. The current ratio is some 11% above the 10 year median. This stock price testing suggests that the stock price is relatively reasonable but above the median. This is in US$ terms.

I get an historical median dividend yield of 1.90%. The current dividend yield is 2.09% based on dividends of $0.68 US$ and a stock price of $32.61. The current dividend yield is some 9.8% above the historical median. This stock price testing suggests that the stock price is relatively reasonable and below the median. This is in US$ terms.

The 10 year median Price/Sales (Revenue) Ratio is 5.62. The current P/S Ratio is 4.87 based on 2018 Revenue estimate of $720M, Revenue per Share of $6.70 and a stock price of $32.61. The current P/S Ratio is some 13% below the 10 year ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median. This is in US$ terms.

When I look at analysts’ recommendations I find Strong Buy, Hold, Underperform and Sell recommendations. There as are no Buy recommendations. The consensus recommendation would be a Hold. The 12 month stock price consensus is $30.64 US$ or $39.64 CDN$. This implies a total loss of 3.93% with a capital loss of 6.01% and dividends of 2.09%. This is true in either currency.

Silas Weatherspoon on Park City Caller gives some technical information on this stock and says the Williams Percent Range is -58.33. A reading between 0 and -20 would indicate an overbought situation. A reading from -80 to -100 would indicate an oversold situation. This article on The Wall Street Transcript talks about a recent auction in Fort Worth, Texas. Xavier Javi on Registrar Journal talks about recent analysts recommendations. Daniel Miller on Motley Fool talks about this company’s integration problems with IronPlanet. See what analysts are saying about this stock at Stock Chase. It is not well followed.

Ritchie Bros Auctioneers Inc. is an industrial auctioneer and used equipment distributor. It sells a broad range of used and unused equipment, including trucks, construction and heavy machinery and other assets. Its web site is here Ritchie Bros Auctioneers Inc.

The last stock I wrote about was about was Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF)... 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 23, 2018 around 5 pm. Today on my other blog I will write about Ontario Election.... learn more on Tuesday, May 22, 2018 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.

Friday, May 18, 2018

Pizza Pizza Royalty Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Consumers. I hate the complexity of the accounting because it is easy to make mistakes in my analysis. Complexity comes in because Pizza Pizza Ltd. (PPL) owns royalties to Pizza Pizza Royalty Corp (PZA), but PPL also owns a part of PZA and receives income from it. Main problem I see is that PPL cannot afford the royalties it has to pay PZA.

It would also appear that PPL cannot afford the royalties it is paying PZA. Also, the stock is hardly cheap. It would not be my first choice of something to buy. See my spreadsheet on Pizza Pizza Royalty Corp.

I do not own this stock of Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF). A number of people have recommended this stock, so I decided to take a look at it. There is nothing inherently wrong with this type of royalty corp. I do not like the complexity of the accounting and having to evaluate both companies involved. The more complex a situation the more likely one can make an error in evaluating a company.

One of my concerns about this type of company is whether or not the under lying entity can afford to pay the royalty payments required to the Royalty Corp so that they can pay dividends. The accounting done by the Royalty Corp and the underlying entity is not always easy to follow. Since PPL had an earnings loss and negative cash flow (after paying the royalties to PZA) this implies that PPL cannot afford the royalties.

PPL in 2017 paid out 121% of their income in Royalties to PZA. The 5 year coverage is 84% which is positive. However, if we turn to cash flow the payout is higher. PPL has negative cash flow for 2017. For 2017 I think that the Royalties Payout Ratio is 118% with 5 year coverage at 176%. So it would seem that Royalties are covered by earnings (over 5 years) but not by cash flow. I could be wrong in my percentages.

The Liquidity Ratio and Debt Ratio on PZA look great at 2.59 and 5.01 respectively. However, the ones that really count are the ones for PPL as they are the ones who provide the money for the PZA distributions. PPL Liquidity Ratio is 0.82. This means that current assets cannot cover current liabilities. PPL Debt Ratio is 0.82. This means that assets cannot cover liabilities. They have a negative book value. This is, of course, not good.

This is a dividend growth stock except the dividend has not always grown. Dividend grew from 2006 to 2010. They were cut by 25% in 2011 and then they started to grow again.

According to the PZA statements it seems that they have a Dividend Payout Ratio of 98% with 5 year coverage of 97%. The DPR for Cash Flow for PZA is 75% and 5 year coverage of 71%. Personally, I do not think that this counts as the real questions is can PPL afford the royalties. It seems to me that PPL is payout more than their net income and more than their cash flow.

The Total Return is show below for years of 5 to 12. 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 with total return on this stock.

Years Div Gth Tot Ret Cap Gain Div
5 3.74% 16.88% 10.09% 6.79%
10 -0.31% 11.80% 4.85% 6.95%
11-12 0.96% 11.07% 4.10% 6.96%


The 5 year low, median and high median Price/Earnings per Share Ratios are 15.83, 17.36 and 18.87. The corresponding 10 year values are 14.19, 15.97 and 17.22. The corresponding historical ratios are 14.11, 15.55, and 17.00. The current P/E Ratio is 14.84 based on a stock price of $13.21 and 2018 EPS estimate of $0.89. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $13.04. The 10 year low, median and high median Price/Graham Price Ratios are 0.93, 1.04 and 1.11. The current P/GP Ratio is 1.01 based on a stock price of $13.21. 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 of 1.42. The current P/B Ratio is 1.55 based on Book Value of $209.2M, Book Value per Share of $8.50 and a stock price of $13.21. Problem here is that the BVPS has been declining with current BVPS below what it was both 5 and 10 years ago. The current P/B Ratio is some 9.7% higher than the 10 year median. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get an historical median dividend yield of 7.92%. The current dividend yield is 6.48% based on dividends of $0.86 and a stock price of $13.21. The current yield is some 18% below the historical median yield. Problem with this test is that dividends have gone down as well as up and there has been no grow in dividends until the last 5 years. This stock price testing suggests that the stock price is relatively reasonable but above the median.

The 10 year median Price/Sales (Revenue) Ratio is 0.48 based on Royalty System Sales. The current P/S Ratio is 0.58 based on Sales estimate for 2018 of $558M, Sales per Share of $22.67 and a stock price of $13.21. The current P/S Ratio is some 21% above the 10 year median. This stock price testing suggests that the stock price is relatively expensive.

The 10 year median Price/Sales (Revenue) Ratio is 8.39 based Operating Income of PZA. The current P/S Ratio is 9.55 based on Operating Income estimate for 2018 of $35.4M, Income per Share of $1.44 and a stock price of $13.21. The current P/S Ratio is some 10% above the 10 year median. This stock price testing suggests that the stock price is relatively reasonable but above the median.

When I look at analysts’ recommendations I find one Hold recommendation so the consensus recommendation would be a Hold. The 12 month stock price is $15.00. This suggests a total return of 20.03% with 13.55% from capital gains and 6.48% from dividends. It seems there is only one analyst following this stock.

PZA talks about first quarterly results on Cision. Donald Bartholomew on Simply Wall Street says that PZA is paying out 98.74% of its earnings and that is too high. A Fisher Staff Writer pm Fisher Business News says PZA has a Value Composite score of 44, where 0 means a stock is undervalued and 100 means a stock is overvalued.. See what analysts are saying about this stock on Stock Chase. Some analysts worry about the sector this stock is in.

Pizza Pizza Royalty Corp., through its subsidiary, Pizza Pizza Royalty Limited Partnership, owns and franchises quick service restaurants under the Pizza Pizza and Pizza73 brands. Its web site is here Pizza Pizza Royalty Corp.

The last stock I wrote about was about was Mullen Group Ltd (TSX-MTL, OTC-MLLGF)... learn more. The next stock I will write about will be Ritchie Bros Auctioneers Inc. (TSX-RBA, NYSE-RBA)... learn more on Tuesday, May 22, 2018 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.

Wednesday, May 16, 2018

Mullen Group Ltd

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. The price seems reasonable at present. There was a big increase in dividends 2018. This shows that the management has confidence in the future. See my spreadsheet on Mullen Group Ltd.

I own this stock of Mullen Group Ltd (TSX-MTL, OTC-MLLGF). I like to look at recommended small cap dividend paying stock to see if they would be a possible good investment now or in the future. The other thing to mention about this stock is that it recently converted from an income trust and has decreased it dividends. The reduction in dividend brought the Dividend Payout Ratios down to a place that would allow for the company to begin growing again.

They increased their dividends by 66.7% this year. This is a sign from management that they expect their business to do well in the future. However, analysts do not expect any further dividend increases over the next two years.

First the company had to decrease dividends when they changed to a corporation from an income trust. This was in 2009. Then in 2014 and 2016 they had to decrease dividends again because they could not cover them with earnings. So over the past 5 and 10 years dividends have gone down. However, it is interesting that over the past 15 and 17 years dividends are up by 6.85% and 6.02%.

Dividends from the company have been all over the place. Part of the reason is that they changed from a corporation to an Income Trust and then change back to a corporation. Income Trust companies can afford to payout higher dividends than corporations. Dividends were increased going to an income trust and then decreased go back to a corporation.

Currently dividend yields are good, but they have been low in the past. The current dividend yield is 4.06%, but dividends have often been in the 1% range. I would not be surprised if this company’s dividend yield settled into the 2% range.

Currently they can afford their dividends. The Dividend Payout Ratio for 2017 is 57% and with the increase in 2018, it is expected to be around 90% in 2018 and declining to 82% in 2019. The 5 year coverage is 122%. This is because the DPR for 2015 was 800% because of a very low earning year.

The Total Return is show below for years of 5 to 20. 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. This company is connected with the oil and gas industries and it has not done well for shareholders over the past 5 and 10 years.

Years Div Gth Tot Ret Cap Gain Div
5 -18.48% -0.46% -5.51% 5.05%
10 -14.87% 4.58% -1.11% 5.69%
15 6.85% 10.28% 2.85% 7.43%
17-20 6.02% 10.06% 4.13% 5.93%


The 5 year low, median and high median Price/Earnings per Share Ratios are 23.17, 27.50 and 31.83. The 10 year corresponding ratios are 13.46, 15.78 and 18.10. The historical corresponding ratios are 12.27, 15.20 and 18.85. The current P/E Ratio is 23.11 based on a stock price of $14.79 and 2018 EPS estimate of $0.64. This stock price testing suggests that the stock price is relatively expensive.

The 5 year ratios are high because earnings have been low latterly. The EPS is also low for 2018, but you could say the same for 2019 and 2020 estimates. This test is probably not a good one for this stock at present.

I get a Graham Price of $11.64. The 10 year low, median and high median Price/Graham Price Ratios are 1.05, 1.25 and 1.46. The current P/GP Ratio is 1.27 based on a stock price of $14.79. 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 of 1.93. The current P/B Ratio is 1.57 based on Book Value of $975.6M, Book Value per Share of $9.41 and a stock price of $14.79. The current ratio is some 19% below the 10 year median. This stock price testing suggests that the stock price is relatively reasonable and below the median. If it was 10% below the stock would be relatively cheap.

I get an historical median dividend yield of 3.98%. The current dividend yield is 4.06% based on dividends of $0.60 and a stock price of $14.79. The current dividend yield is some 4.3% above the historical dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median. Since this stock used to be an income trust company, the historical yield is probably higher than it would be if the company had always been a corporation.

The 10 year median Price/Sales (Revenue) Ratio is 1.33. The current P/S Ratio is 1.27 based on 2018 Revenue estimate of $1,203M, Revenue per Share of $11.61 and a stock price of $14.97. The current ratio is some 4% lower than the 10 year ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

When I look at analysts’ recommendations I find Strong Buy (1), Buy (1) and Hold (10). The consensus recommendation would be a Hold. The 12 month Stock Price is $16.16. This implies a total return of $13.32% with 9.26% from capital gains and 4.06% from dividends.

The company announces business plan and 2018 dividend increase on Globe News Wire. Amber Thompson on Register Journal talks about Zacks Investment down grading second quarterly earnings for this company. Jonathon Baker says on Simply Wall Street that the intrinsic value of this stock is $7.51 based on cash flows so it is currently overvalued. This stock is not well followed on Stock Chase with the last entry dated 2016.

Mullen Group Ltd provides long haul and local transportation services to customers in various industries predominantly within Canada. The Company's business segments are Trucking/Logistics and Oilfield Services. Its web site is here Mullen Group Ltd.

The last stock I wrote about was about was Hammond Power Solutions Inc. (TSX-HPS, OTC-HMDPF)... learn more. The next stock I will write about will be Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF)... learn more on Friday, May 18, 2018 around 5 pm. Tomorrow on my other blog I will write about The Rich and Investing.... learn more on Thursday, May 17, 2018 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.

Monday, May 14, 2018

Hammond Power Solutions Inc.

Sound bite for Twitter and StockTwits is: Dividend paying industrial. I am hoping that this company will again become a dividend growth company. They were in the past but are having a hard time coming out of the last recession. However, this applies to a lot of companies. The stock price seems to be relatively reasonable and below the median. See my spreadsheet on Hammond Power Solutions Inc.

I own this stock of Hammond Power Solutions Inc. (TSX-HPS.A, OTC-HMDPF). I bought this stock as my main purchase for the TFSA in 2013 and 2014. I picked Hammond initially in 2013 as my main buy because it has good growth and reasonable dividend. Also, I think that it important to try out newer smaller companies for investment purposes. Companies on the TSX are always changing and it is good to get into new industries and new companies. The problem of this, of course, is you do not always know what industries and companies will be long lasting.

I am finally making some money on this stock. It when down after I bought and I think this is the first time it is above my purchase price.

Hammond Power Solutions became a public company in 2001 and in 2009 they started to pay dividends. They at first were increasing their dividends but this stopped in 2014 when the Dividend Payout Ratio was 109%. They have not increased the dividends since. The dividend growth for the past 5 and 8 years is 5.92% and 11.56% as shown in the table below.

The DPR for 2017 is 46% with 5 year coverage at 60%. The DPR for CFPS for 2017 was $13% with 5 year coverage at 15%. So they can afford their dividends.

The Total Return is show below for years of 5, 10, 15 and 16. 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. The total return for the 5 and 10 year period is low to non-existent. They are having a hard time recovering from the last recession as is a lot of other companies.

Years Div Gth Tot Ret Cap Gain Div
5 5.92% 5.23% 2.26% 2.96%
8-10 11.56% -3.92% -5.45% 1.53%
15 26.45% 23.01% 3.44%
16 18.38% 16.02% 2.36%


The 5 year low, median and high median Price/Earnings per Share Ratios are 12.62, 16.79 and 20.96. The corresponding 10 year median ratios are 11.30, 14.07 and 16.85. The corresponding historical ratios are 7.35, 9.29 and 11.22. The current P/E Ratio is 19.16 based on a stock price $9.77 and last 12 month EPS of $0.51. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $10.87. The 10 year low, median and high median Price/Graham Price Ratios are 0.60, 0.79 and 1.01. The current P/GP Ratio is 0.90. 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 of 1.04. The current P/B Ratio is 0.95 based on a Book Value of $119M, Book Value per Share of $10.30 and a stock price of $9.77. The current P/B Ratio is some 9% lower than the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

The P/B Ratio is only 0.95. Any time this ratio is below 1.00 it means that the stock is selling below the theoretical breakup value of this stock. Generally a stock with such a low ratio is considered cheap. At any time this ratio is 1.50 and low, a stock is considered cheap. The 10 year ratio of 1.04 is also a very low ratio.

I get an historical median dividend yield of 2.29%. The current dividend yield is 2.46% based on dividends of $0.24 and a stock price of $9.77. The current dividend yield is some 7.3% higher than the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.

The 10 year median Price/Sales (Revenue) Ratio is 0.43. The current P/S Ratio is 0.37 based on 12 month Revenue of $302.5M, Revenue per Share of $26.11 and a stock price of $9.77. The current P/S Ratio is some 12.4% below the 10 year median. This stock price testing suggests that the stock price is relatively reasonable and below the median.

There are no analysts’ recommendations for this stock.

The company has reported on their first quarter of 2018 on Globe News Wire. Staff Contributor on Derby News Journal says Hammond has a weak upward trend. Seth Doty on Simply Wall Street thinks this stock is undervalued according to it P/E Ratio. See what analysts are saying about this stock on Stock Chase. It is not well followed and last entry was in 2009.

Hammond Power Solutions Inc. is a Canada-based manufacturer of dry-type magnetics. It is engaged in the design and manufacture of custom electrical engineered magnetics. Its web site is here Hammond Power Solutions Inc.

The last stock I wrote about was about was Canadian Utilities Ltd (TSX-CU, OTC-CDUAF)... learn more. The next stock I will write about will be Mullen Group Ltd (TSX-MTL, OTC-MLLGF)... learn more on Wednesday, May 16, 2018 around 5 pm. Tomorrow on my other blog I will write about Mutual Funds.... learn more on Tuesday, May 15, 2018 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.

Friday, May 11, 2018

Canadian Utilities Ltd

Sound bite for Twitter and StockTwits is: Dividend Growth Utility. The stock price is cheap to reasonable. It seems to be having some headwinds with rising interest rates and rate rebasing in Alberta. They have a good record on rising dividends. See my spreadsheet on Canadian Utilities Ltd.

I own this stock of Canadian Utilities Ltd (TSX-CU, OTC-CDUAF). I started to follow this stock in January of 2009 because it was on the Dividend Achievers list, the Dividend Aristocrats list and was also on Mike Higgs’ dividend growth list at that time. The Dividend Aristocrats list is now an index on the TSX. ATCO (TSX-ACO-X) owns 88% of this stock, so you would not buy both these stocks.

I bought this stock last year and it has only gone down since my purchase. It is already down by 15% this year.

Dividend yield is good, but have been getting higher as the stock price drops. The 5, 10 and historical median dividend yields are 3.20%, 3.12% and 3.67%. The current dividend is 4.96%.

The Dividend Payout Ratio has been higher recently (since 2015) compared to historical ratios. Historical ratios were generally 50% or lower. The DPR for 2017 was 93% with 5 year coverage at 64%. The DPR is expected to go back down starting the year. DPR for CFPS is good with the ratio in 2017 at 30% and the 5 year coverage at 19%.

The Total Return is show below for years of 5 to 27. 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. The total return has been lower over the past 5 and 10 years than it was in the past. The lowest growth is for the past 5 years. Over the long term they have delivered good returns for shareholders.

Years Div. Gth. Tot Ret Cap Gain Div.
5 10.07% 4.02% 0.79% 2.63%
10 8.63% 8.17% 4.89% 3.85%
15 7.40% 11.22% 7.41% 9.46%
20 6.71% 10.43% 6.73% 15.48%
25 5.79% 13.22% 8.28% 6.01%
27 5.45% 12.41% 7.66% 5.31%


The 5 year low, median and high median Price/Earnings per Share Ratios are 16.11, 17.98 and 19.84. The corresponding 10 year ratios are 14.35, 15.76 and 17.51. The historical ratios are 10.93, 13.77 and 15.81. The stock price has not been declining as fast as the EPS. The current P/E Ratio is 14.41 based on a stock price of $31.70 and 2018 EPS estimate of $2.20. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $29.42. The 10 year low, median and high median Price/Graham Price Ratios are 1.13, 1.26 and 1.42. The current P/GP Ratio is 1.08 based on a stock price of $31.70. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median Price/Book Value per Share of 2.19. The current P/B Ratio is 1.81 based on Book Value of $4,471M, Book Value per Share of $17.49 and a stock price of $31.70. The current P/B Ratio is some 17% 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 3.67. The current dividend yield is 4.96% based on dividends of $1.57 and a stock price of $31.70. The current yield is some 35% above the historical median yield. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 2.66. The current P/S Ratio is 2.19 based on 2018 Revenue estimate of $3,918M, Revenue per Share of $14.45 and a stock price of $31.70. The current ratio is some 17.5% below the year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

When I look at analysts' recommendations I find Buy (1) and Hold (7). The 12 month stock price consensus is $37.14. This implies a total return of 22.13% with 17.16% from capital gains and 4.96% from dividends.

Gordon Kent on Edmonton Journal talks about problems in shutting down coal-fired power plants in Alberta. The company posted news about its first quarterly results for 2018 on Globe News Wire. Dividend Channel has said that this stock is in their Top 25 dividend stock in a NASDAQ article. See what analysts are saying about this stock on Stock Chase. They note problems with rising interest rates.

Canadian Utilities Ltd is engaged transmission and distribution of electricity and natural gas. The company is also involved in power generation and sales, natural gas gathering, processing, storage and liquids extraction. Its web site is here Canadian Utilities Ltd.

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 Hammond Power Solutions Inc. (TSX-HPS, OTC-HMDPF)... learn more on Monday, May 14, 2018 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.

Thursday, May 10, 2018

Reitmans (Canada) Ltd

I am sorry I did not publish this report yesterday as I said I would. However, I did spend a lot of time getting my computer up and running properly. I do not like to rush these reports because that can lead to errors.

Sound bite for Twitter and StockTwits is: Dividend Paying Consumer. This stock is in the consumer discretionary sector. It is making an effort to recover. It is selling cheap. See my spreadsheet on Reitmans (Canada) Ltd.

I own this stock of Reitmans (Canada) Ltd. (TSX-RET.A, OTC-RTMAF). I was following this stock as it was a stock on Mike Higgs' dividend growth stocks list. I bought this company in September 2013. It was in financial difficulties and so was quite cheap. I believed it would recover, but I am beginning to wonder now.

They cannot cover their dividends with EPS. With the earnings loss of 2018 there is no coverage of dividends by EPS. Their coverage via CFPS is fine with the one of 2018 at 36% and 5 year coverage at 25%. There used to be analysts following this stock, but that has dropped to none.

The company used to raise dividends on a regular basis. However, they were cut 75% in 2013 and they have been level since. This is because the company has been in financial difficulties since that time.

The Total Return is show below for years of 5 to 30. 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. So long term holders still have not done badly. However, anyone that has bought this stock in the last 10 years have a loss.

Years Div Gth Tot Ret Cap Gain Div
5 -24.21% -15.38% -18.78% 3.39%
10 -11.25% -9.10% -13.97% 4.87%
15 4.73% 8.47% -1.36% 9.82%
20 5.78% 13.84% 3.55% 10.29%
25 4.60% 9.40% 2.25% 7.15%
30 3.82% 8.56% 2.40% 6.16%


The 5 year low, median and high median Price/Earnings per Share Ratios are 22.88, 32.71 and 39.67. The corresponding 10 year ratios are 15.16, 17.60 and 21.02. The historical ratios are 10.16, 13.05 and 15.47. The reason the 5 year ratios are so out of whack is that there were recent years of earning losses and the drop in earnings was deeper than the drop in stock price. The current P/E Ratio is 133.33 based on a stock price of $4.00 and 2018 (February 2019) earnings estimate of $0.03. This information is unusable to check up on the current stock price.

I get a Graham Price of $1.91. The 10 year low, median and high median Price/Graham Price Ratios are 0.94, 1.14 and 1.48. The current P/GP Ratio is 2.10 based on a stock price $4.00. The Graham Price has fallen from $4.75 in 2017 to just $1.91. This is why the current P/GP Ratio is so high. This information is no much help to establish a stock price either.

I get a 10 year median Price/Book Value per Share of 1.50. The current P/B Ratio is just 0.74 based on Book Value of $341M, Book Value per Share of $5.38 and a stock price of $4.00. The current P/B Ratio is some 50% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

The P/B Ratio test is a good one for this stock. This is because unlike with the P/E Ratio all P/B Ratios make sense. The Book Value is declining, but not as fast as the stock price. Also, with this stock the P/B Ratio is less than 1.00. This means that the stock is selling below the theoretical breakup price of the company.

I get an historical median dividend yield of 3.13%. The current dividend yield is 5.00% a values some 60% below the historical median dividend yield. The current dividend yield is based on dividends of $0.20 and a stock price of $4.00. This stock price testing suggests that the stock price is relatively cheap. However, this is not a particularly good test because dividends have been cut and then flat for some time. The dividend yield is high, but not sky high. This suggests that investors are not very worried about a dividend cut.

The 10 year median Price/Sales (Revenue) Ratio is 0.64. The current P/S Ratio is 0.28 based on 2018 (February 2019) Revenue estimate of $889, Revenue per Share of $14.04 and a stock price of $4.00. The current ratio is some 55% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This is also a good test.

When I look at analysts’ recommendations I find that there are no analysts following this stock. This shows that this stock is really out of favor as there are used to be some analysts following it and now there are none.

The company announced on Cision the retirement of current Chief Financial Officer and his replacement. Silas Weatherspoon on Park City Caller says that the Williams Percent Range of -26.92 shows that the company is neither overbought or oversold. The company announced the closing of HYBA Stores on Cision. The company reported on their fourth quarter on Cision

Reitmans (Canada) Ltd is a retailer of varied types of apparels. It manages apparel stores under the Reitman, Penningtons, RW & CO, Addition Elle, Thyme Maternity and Hyba brands. Its web site is here Reitmans (Canada) Ltd.

The last stock I wrote about was about was Power Financial Corp. (TSX-PWF, OTC-POFNF)... learn more. The next stock I will write about will be Canadian Utilities Ltd (TSX-CU, OTC-CDUAF)... learn more on Friday, May 11, 2018 around 5 pm. Tomorrow on my other blog I will write about Defined Contribution Pensions.... learn more on Thursday, May 10, 2018 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.

Monday, May 7, 2018

Power Financial Corp

I am posting early today as I hope to take my computer into a shop this afternoon. Hopefully, I will have my computer back tomorrow afternoon.

Sound bite for Twitter and StockTwits is: Dividend Growth Financial. This stock is cheap. It is not only dealing with very low interest rates, but FinTech. Current rising rates will be good for this industry and they are investing in FinTech. See my spreadsheet on Power Financial Corp.

I own this stock of Power Financial Corp. (TSX-PWF, OTC-POFNF). When I sold some bonds in 2001, I had money to spend. This was a stock on my hit list and was selling at a reasonable price. This stock was on Mike Higgs' dividend growth stocks and that is why I started a spreadsheet to investigate this stock in the first place.

This insurance company did not have a good fourth quarter in 2017. Since 2009 it has made some progress but 2015 was the good year. The years of 2016 and 2017 are not so good.

Until 2009, the company had a very good record of dividend growth. Then dividends were flat for 6 years before dividend growth was restarted. You can see this in the table below where the 5 and 10 year growth in dividends is a lot lower than the previous years.

The company has had no trouble in covering their dividends with earnings. However, keeping the dividends flat for 6 years certainly helped out. The Dividend Payout Ratio for 2017 was 68% with 5 year coverage at 53%. The very low interest rates were hard on life insurance companies.

The Total Return is show below for years of 5 to 26. 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. Except for the 10 year period, shareholders have done well. However growth is a lot lower today than in the past.

Years Div Gth Tot Ret Cap Gain Div
5 3.09% 9.83% 4.86% 4.97%
10 3.46% 2.19% -1.59% 3.78%
15 7.91% 9.30% 4.38% 4.91%
20 10.53% 9.61% 5.21% 4.39%
25 12.41% 17.72% 10.88% 6.84%
26 12.29% 17.42% 10.84% 6.59%


The 5 year low, median and high median Price/Earnings per Share Ratios are 10.38m 11.89 and 12.95. The corresponding 10 year ratios are 10.48, 12.00 and 13.55. The historical ratios are 10.30, 12.05 and 14.97. The current P/E Ratio is 10.23 based on 2018 EPS estimate of $3.21 and a stock price of $32.85. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $42.30. The 10 year low, median and high median Price/Graham Price Ratios are 0.82, 0.93 and 1.05. The current P/GP Ratio is 0.78 based on a stock price of $32.85. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median Price/Book Value per Share of 1.64. The current P/B Ratio is 1.33 based on Book Value of $17,383, Book Value per Share of $24.77 and a stock price of $32.85. The current P/B Ratio is some 19.4% below the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median. If the current ratio was 20% below the 10 year median the stock price would be relatively cheap.

I get an historical median dividend yield of 3.38%. The current dividend yield is 5.27% based on dividends of $1.73 and a stock price of $32.85. The current dividend yield is some 56% higher than the historical median yield. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 0.59. The current P/S Ratio is 0.45 based on 2018 Revenue estimate of $51,561, Revenue per Share of $72.23 and a stock price of $32.85. The current ratio is some 23% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

When I look at analysts' recommendations I find Buy (1) and Hold (6). The consensus recommendations would be a Hold. The 12 month stock price consensus is $37.14. This implies a total return of $18.33% with 13.06% from capital gains and 5.27% from dividends.

The company release fourth quarterly results via Cision. In this article on Robo Advisors, Money Sense talks about Wealthsimple teaming up with Power Financial Corp. GCR Staff Writer on Grove City Review says a Williams Percentage Range of -37 show stock is neither overbought nor oversold. See what analysts are saying about this company on Stock Chase. Analysts expect a good yield going forward to not much excitement or capital gain.

Power Financial Corp is a diversified international management and holding company. It holds interests, directly or indirectly, with companies in the financial services sector in Canada, the United States and Europe. Its web site is here Power Financial Corp.

The last stock I wrote about was about was TFI International (TSX -TFII, OTC-TFIFF)... learn more. The next stock I will write about will be Reitmans (Canada) Ltd. (TSX-RET.A, OTC-RTMAF)... learn more on Wednesday, May 9, 2018 around 5 pm. Tomorrow on my other blog I will write about Rogers and Best Buy.... learn more on Tuesday, May 8, 2018 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.

Friday, May 4, 2018

TFI International Inc.

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. Stock price is above the median to expensive. It may not be a good time to buy at present, but it is current a dividend growth stock with a history of nice total returns for shareholders. See my spreadsheet on TFI International Inc.

I own this stock of TFI International (TSX-TFII, OTC-TFIFF). I read a report called "6 Canadian Dividend Stocks That Fly Under the Radar" by John Heinzl in April of 2013. This is one of the stocks mentioned. There was also a good review of this stock by Advice Hotline by MPL Communications. I bought this stock to replace DH Corp stock

This used to be an income trust. When it changed to a corporation, it cut its dividends by almost 75% in 2008. In 2011, it started to increase the dividends again. The average dividend increase over the past 5 years is over 10%.

Income Trust companies can payout a dividend higher than a corporation can. By cutting the dividend, they were able to get their dividend in a good payout ratio with EPS. The Dividend Payout Ratio for 2017 is 45% with 5 year coverage of 27%.

The Total Return is show below for years of 5 to 27. 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 enjoyed some good returns over the years.

Years Div Gth Tot Ret Cap Gain Div
5 9.18% 13.23% 10.60% 2.63%
10 -7.03% 17.38% 13.53% 3.85%
15 -2.67% 19.72% 10.25% 9.46%
20 33.23% 17.76% 15.48%
25 18.67% 12.66% 6.01%
27 17.89% 12.58% 5.31%


The 5 year low, median and high median Price/Earnings per Share Ratios are 15.72, 18.39 and 21.05. The corresponding 10 year ratios are 11.55, 14.34 and 17.12. The historical ones are 8.45, 11.23 and 13.45. The current P/E Ratio is 16.26 based on a stock price of $37.24. This stock price testing suggests that the stock price is relatively reasonable, but above the median.

I get a Graham Price of $28.60. The 10 year low, median and high median Price/Graham Price Ratios are 0.80, 1.14 and 1.33. The current P/GP Ratio is 1.30 based on a stock price of $37.24. 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 of 1.89. The current P/B Ratio is 2.35 based on Book Value of $1,415M, Book Value of $15.88 and a stock price of $37.24. The current ratio is some 24% above the 10 year ratio. If the current ratio is more than 10% above the 10 year ratio, then the stock is considered expensive. This stock price testing suggests that the stock price is relatively expensive.

I get an historical median dividend yield of 3.79%. The 5 and 10 median dividend yields are 2.43% and 2.75%. This used to be income trust company and income trust companies can afford much higher yields than corporations. If you use the 5 and 10 year median dividend yields, the current dividend yield of 2.26% is some 7% and 18% lower. The current dividend yield is based on dividends of $0.84 and a stock price of $37.24. This stock price testing suggests that the stock price is relatively reasonable, but above the median to expensive.

The 10 year median Price/Sales (Revenue) Ratio is 0.55. The current P/S Ratio is 0.67 based on 2018 Revenue estimate of $4,918M, Revenue per Share of $55.18 and a stock price of $37.24. The current ratio is some 24% higher than the 10 year median ratio. If the current ratio is more than 10% above the 10 year ratio, then the stock is considered expensive. This stock price testing suggests that the stock price is relatively expensive.

When I look at analysts' recommendations I find Strong Buy (1), Buy (9) and Hold (3). The consensus recommendations would be a Buy. The 12 month stock price consensus is $39.62. This implies a total return of 8.65% with 6.39% from Capital Gains and 2.26% from dividends based on a current price of $37.24.

Will Ashworth on Motley Fool gives 3 reasons to own this stock. The company announces 2018 first quarterly results on Globe News Wire. Terence Moore on STMV News gives this stock a Piotroski F-Score of 5 for financial strength where 1 is low and 9 is high. Ingrid Hart on Simply Wall Street says that the company can afford and cover its debt load. See what analysts are saying about this company on Stock Chase. They mostly like it.

TFI International Inc. provides transportation and logistics services. Its activities include package and courier, less-than-truckload, truckload and logistics. Its web site is here TFI International Inc.

The last stock I wrote about was about was McCoy Global Inc. (TSX-MCB, OTC-MCCRF)... learn more. The next stock I will write about will be Power Financial Corp. (TSX-PWF, OTC-POFNF)... learn more on Monday, May 7, 2018 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.

Wednesday, May 2, 2018

McCoy Global Inc.

Sound bite for Twitter and StockTwits is: Small Cap Industrial. The best stock price testing for this company is via P/B Ratios or P/S Ratios. By these measures the stock price is cheap to reasonable. See my spreadsheet on McCoy Global Inc.

I own this stock of McCoy Global Inc. (TSX-MCB, OTC-MCCRF). I decided to try out McCoy. They had just restored their dividend. I want to use it as a fuller stock in my TFSA account. For me a fuller stock is one that uses up bits of extra money in an account. I am still positive on this stock. It services the energy business so it is no surprise that there is volatility in its earnings etc.

This company works for the oil and gas industry and has not been doing well lately. When I look at its spreadsheet, I see a lot of red. They also have a fair bit of cash on hand. At the end of 2017 cash was equal to $0.54 a share or 39% of the share price.

They started dividends in 2001 and then cancelled them in 2010. Dividends were restarted in 2012 and then cancelled again in 2016. Analysts do not expect them to restart in the near future. For the last 3 years they have EPS losses. So it was wise of them to cut the dividends. They are expected to make a profit this year of 2018.

One thing to worry about on small caps is debt ratios. For this stock they are quite good. The Liquidity Ratio is 2.99 and the Debt Ratio is 3.54. Anything above 1.50 for these ratios is good. The Leverage and Debt/Equity Ratios are 1.39 and 0.39. For these ratios anything below 2.00 and 1.00 are good ratios.

The Total Return is show below for years of 5 to 20. 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. As you can see, it is only those that have held this stock for 15 years that have made any money. Over the past 20 years they have almost broken even.

Years Div Gth Tot Ret Cap Gain Div
5 0.00% -17.83% -20.69% 2.86%
10 0.00% -3.28% -7.56% 4.28%
15 0.00% 23.45% 12.12% 11.33%
20 -1.67% -4.30% 2.63%


The 5 year low, median and high median Price/Earnings per Share Ratios are all negative and therefore useless. The 10 year ratios are very low and not much good either. The historical P/E Ratios are 4.15, 8.43 and 10.20. The current P/E Ratio is 18.86 based on a stock price of $1.32 and 2018 EPS of $0.07. This stock price testing suggests that the stock price is relatively high. However, The P/E Ratio for 2019 is 6.60. This is a rather low P/E Ratio.

I get a Graham Price of $1.53. The 10 year low, median and high median Price/Graham Price Ratios are 0.49, 0.80 and 1.15. The current P/GP Ratio is 0.86 based on a stock price of $1.32. This stock price testing suggests that the stock price is relatively reasonable but above the median. On an absolute basis a P/GP Ratio below 1.00 signals that a stock price is cheap.

I get a 10 year median Price/Book Value per Share of 1.22. The current P/B Ratio is 0.89 based on Book Value of $41M, Book Value per Share of $1.49 and a stock price of $1.32. The current ratio is some 27.5% below the 10 years median. This stock price testing suggests that the stock price is relatively cheap. Also the P/B Ratio is less than 1.00. This signals, on an absolute basis, that the stock price is cheap as it is below the theoretical break up price of the company.

It is not possible to do a stock price testing based on dividend yields. The dividends are inconsistent in both the amount and whether or not they will be paid.

The 10 year median Price/Sales (Revenue) Ratio is 0.81. The current P/S Ratio is 0.75 based on 2018 Revenue estimate of $49M, Revenue per Share of $1.77 and a stock price of $1.32. The current ratio is some 7% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. On an absolute basis, a P/S Ratio of below 1.00 for a small cap generally signals that the stock price is cheap.

When I look at analysts' recommendations I find Buy (1) and Hold (2). The consensus would be a Hold rating. The 12 month stock price consensus is $2.00. This implies a total return of 51.52% all from capital gains. This is based on a current stock price of $1.32.

The company announced its fourth quarter and annual results for 2017 onCision. Peter Hammer on MTA says that analysts have given a Hold rating on this stock. There are only a few old comments on this stock at Stock Chase. There are few analysts following this stock.

McCoy Global Inc. provides equipment and technologies used for making up threaded connections in the global oil and gas industry. Its products are used during well construction phase for both land and offshore wells during both oil and gas exploration. Its web site is here McCoy Global Inc.

The last stock I wrote about was about was Ag Growth International (TSX-AFN, OTC- AGGZF)... learn more. The next stock I will write about will be TFI International (TSX -TFII, OTC-TFIFF)... learn more on Friday, May 4, 2018 around 5 pm. Tomorrow on my other blog I will write about Something to Buy May 2018.... learn more on Thursday, May 3, 2018 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.