Friday, June 21, 2024

CI Financial Corp

Sound bite for Twitter and StockTwits is: Dividend Paying Financial. Results of stock price testing is that the stock price is probably cheap, with the P/S Ratio test confirming the dividend yield tests. I do not like the Debt Ratios and the company has far too much debt. The Dividend Payout Ratios (DPR) are good. The current dividend yield is good with dividend growth restarting. See my spreadsheet on CI Financial Corp .

Is it a good company at a reasonable price? Personally, when a stock is cheap and/or it has a high dividend yield, it does not necessarily mean it is a good stock to buy. I would worry about the high debt. The stock price is testing as cheap.

I do not own this stock of CI Financial Corp (TSX-CIX, NYSE-CIXX). I started to follow this stock originally because it was a Mutual Fund company. People talked about it being easier to make money from buying a Mutual Fund company than buying Mutual Funds. When they became a Unit Trust in 2006, dividends were significantly increased, but these dividends proved to be unsustainable. They changed back to a corporation in 2009 and dividends were decreased in 2010. I started to follow this stock in 2009.

When I was updating my spreadsheet, I noticed while most of the insiders I follow have been buying up shares, the company has also. The company bought over 17% of outstanding shares in 2023. They have bought a median of 6.7% per year over the past 10 years.

The buying back shows up clearly in Revenue. Revenue has grown over the past 5 and 10 years at 4.2% and 5.34% per year. However, Revenue per Share is showing up over the past 5 and 10 years as 14.2% and 12.1% per year.

If you had invested in this company in December 2013, for $1,025.15 you would have bought 29 shares at $35.35 per share. In December 2023, after 10 years you would have received $288.45 in dividends. The stock would be worth $403.94. Your total return would have been $719.42. This would be a total loss of 4.27% per year with 8.30% from capital loss and 4.03% from dividends.

Cost Tot. Cost Shares Years Dividends Stock Val Tot Ret
$35.35 $1,025.15 29 10 $288.48 $430.94 $719.42

The current dividend yield is good with dividend growth restarting. The current dividend yield is good (5% to 6% ranges) at 5.61%. The 5, 10 and historical median dividend yields are moderate (2% to 4% ranges) at 3.69%, 3.94% and 3.67%. Dividends were cut by 49% in 2018 and changed from monthly to quarterly. Dividend increases were restarted in 2024 and the dividend increase was for 11%.

The Dividend Payout Ratios (DPR) are good. The DPR for 2023 for Earnings per Share (EPS) is good at 46% with 5 year coverage at 44%. The DPR for 2023 for Adjusted Earnings per Share (AEPS) is good at 23% with 5 year coverage at 21%. The DPR for 2023 for Cash Flow per Share (CFPS) is good at 20% with 5 year coverage at 24%. The DPR for 2023 for Free Cash Flow (FCF) is good at 32% with 5 year coverage at 29%.

Item Cur 5 Years
EPS 45.57% 44.28%
AEPS 23.15% 21.11%
CFPS 19.69% 23.81%
FCF 31.54% 28.87%

I do not like the Debt Ratios. The Long Term Debt/Market Cap Ratio for 2023 is too high at 1.34and currently at 1.43. You want this to be at least below 1.00. The Intangible and Goodwill Ratio is far too high at 3.31 and 3.48. You also want this to be below 1.00. The Liquidity Ratio for 2023 is far too low at 0.56 and 0.33 currently. If you added in Cash Flow after dividends and current portion of the debt, the ratios are still awful at 0.44 and currently at 0.47. The Debt Ratio for 2023 is too low at 1.12 and 1.20 currently.

Type Year End Ratio Curr
Lg Term R 1.34 1.43
Intang/GW 3.31 3.48
Liquidity 0.56 0.33
Liq. + CF 0.40 0.43
Liq CF DB 0.44 0.47
Debt Ratio 1.12 1.20

The Total Return per year is shown below for years of 5 to 29 to the end of 2023. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From Years Div. Gth Tot Ret Cap Gain Div.
2018 5 -8.46% 1.45% -2.97% 4.42%
2013 10 -3.66% -4.27% -8.30% 4.03%
2008 15 -6.80% 8.27% 0.16% 8.10%
2003 20 4.65% 10.16% 1.12% 9.05%
1998 25 15.41% 15.99% 5.56% 10.42%
1994 29 16.50% 19.02% 8.36% 10.66%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 7.48, 11.26 and 15.05. The corresponding 10 year ratios are 10.28, 13.62 and 16.24. The corresponding historical ratios are 14.84, 17.09 and 19.90. The current P/E Ratio is 11.35 based on a stock price $14.25 and EPS estimate for 2024 of $1.26. This is between the low and median ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 4.56, 7.25 and 9.08. The corresponding 10 year ratios are 7.11, 8.98 and 11.52. The current ratio is 3.98 based on a stock price of $14.25 and AEPS estimate for 2024 of $3.58. This ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $29.00. The 10-year low, median, and high median Price/Graham Price Ratios are 0.93, 1.17 and 1.41. The current P/GP Ratio is 0.49 based on a stock price of $14.25. 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 3.29. The current P/B Ratio is 1.36 based on a stock price of $14.25, Book Value of $1,606M, and Book Value per Share of $10.44. The current ratio is 59% below the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.

I get a 10-year median Price/Cash Flow per Share Ratio of 8.58. The current P/CF Ratio is 3.48 based on Cash Flow per Share estimate for 2024 of $4.10, Cash Flow of $631M, and a stock price of 14.25. The current ratio is 60% 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 3.67%. The current dividend yield is 5.61% based on dividends of $0.80 and a stock price of $14.25. The current dividend yield is 53% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year dividend yield of 3.94%. The current dividend yield is 5.61% based on dividends of $0.80 and a stock price of $14.25. The current dividend yield is 32% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

The 10-year median Price/Sales (Revenue) Ratio is 2.30. The current P/S Ratio i0.74 based on Revenue estimate for 2024 of $2,267M, Revenue per Share of $19.29 and a stock price of $14.25. The current ratio is 68% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. The problem with this test is that the company has been buying back a lot of shares, so the current ratio looks a lot better than it would have if they had not bought back shares. Although, this test would probably show the stock price as cheap, in any case.

Results of stock price testing is that the stock price is probably cheap, with the P/S Ratio test confirming the dividend yield tests. Most of the rest of the testing is saying the same thing, that is the stock price is relatively cheap.

When I look at analysts’ recommendations, I find Strong Buy (2), Buy (2), Hold (5). The consensus would be a Buy. The 12 month stock price consensus is $19.00, with a high of $21.00 and low of $16.00. This implies a total return of 38.958% with 33.33% from Capital Gains and 5.62% from dividends based on a current price of $14.25.

There is only one entry on Stock Chase for 2024 and it is a Sell. Analyst says that the company is massively levered. Stock Chase gives this stock 3 stars out of 5. Jitendra Parashar on Motley Fool in May 2024 talks about this stock tanking after releasing its first quarter report in 2024. Ambrose O'Callaghan on Motley Fool in 2023 thought this was a good dividend stock to buy. The company put out a press release about their year-end 2023 results. The company put out a Press Release for their first quarter of 2024.

Zacks via Yahoo Finance put out a recent review of this stock and upgraded it to a Strong Buy. Simply Wall Street via Yahoo Financenotes that the first quarter results miss expectations. Simply Wall Street has two warnings of debt is not well covered by operating cash flow; and dividend of 5.71% is not well covered by earnings. I cannot find any star score from Simply Wall Street.

CI Financial is a diversified provider of wealth management products and services, primarily in the Canadian market. The company operates its fund business through CI Global Asset Management, which offers a broad selection of investment funds. On the wealth management side, the company operates through CI Assante Wealth Management, Aligned Capital Partners, CI Private Wealth, as well as a large group of acquired US-based advisors, providing financial advice primarily to high-net-worth clients. Its web site is here CI Financial Corp .

The last stock I wrote about was about was Waste Connections Inc (TSX-WCN, NYSE-WCN) ... learn more. The next stock I will write about will be Computer Modelling Group Ltd (TSX-CMG, OTC-CMDXF) ... learn more on Monday, June 24, 2024 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Wednesday, June 19, 2024

Waste Connections Inc

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

Is it a good company at a reasonable price? It is interesting that Motley Fool Canada is quite positive about this stock, but Simply Wall Street is rather negative. There is no recent article on Motley Fool US. There are quite a few analysts following this stock. A lot of them like it, but there are analysts that disagree. The company is growing and is expected to continue to grow. Shareholders have done well in the past. However, the stock maybe on the pricey side.

I do not own this stock of Waste Connections Inc (TSX-WCN, NYSE-WCN), but I used to. I first bought this stock in 2007 because TD Securities had a very favorable report on this stock and had it on their action buy list. At that time, it was BFI Canada Income Fund. In 2010, I needed to buy something for Pension Account. I have this already and it is on TD Action Buy List. I sold when it because the target of a reverse takeover by an American company. I do not regret selling it, even though it has done well since.

When I was updating my spreadsheet, I noticed this stock is growing very well. See chart below. Growth over last 5 years is slower than last 10 years.

Yr Item Tot. Gwth Per Year Gwth Coverage
5 Revenue Growth US$ 62.95% 10.26% 2.15% <-12 mths
5 AEPS Growth 66.27% 10.70% 22.70% <-12 mths
5 Net Income Growth 39.48% 6.88% 4.23% <-12 mths
5 Cash Flow Growth 50.71% 8.55% 2.25% <-12 mths
5 Dividend Growth 81.03% 12.60% 8.57% <-12 mths
5 Stock Price Growth 101.04% 14.99% 12.96% <-12 mths
10 Revenue Growth US$ 295.94% 14.75% 9.84% <-this year
10 AEPS Growth 134.08% 8.88% 13.84% <-this year
10 Net Income Growth 546.61% 20.52% 42.63% <-this year
10 Cash Flow Growth 371.86% 16.78% 11.59% <-this year
10 Dividend Growth 193.89% 11.38% 10.48% <-this year
10 Stock Price Growth 335.61% 15.85% 12.96% <-this year

In dealing with US/CDN exchange rates, I generally use exchange rates at year end. For estimates, I use the current exchange rates. However, the exchange rates vary and are mostly published daily. I use the exchange rate site of Sauder School of Business, U of BC U of BC.

If you had invested in this company in December 2013, for $1,018.41 you would have bought 28 shares at $36.37 per share. In December 2023, after 10 years you would have received $238.42 in dividends. The stock would be worth $5,540.08. Your total return would have been $5,778.50. This would be a total return of 19.48% per year with 18.46% from capital gain and 1.03% from dividends. This is in CDN$.

Cost Tot. Cost Shares Years Dividends Stock Val Tot Ret
$36.37 $1,018.41 28 10 $238.42 $5,540.08 $5,778.50

If you had invested in this company in December 2013, for $1,028.02 you would have bought 30 shares at $34.27 per share. In December 2023, after 10 years you would have received $195.56 in dividends. The stock would be worth $4,478.10. Your total return would have been $4,673.66. This would be a total return of 16.77% per year with 15.85% from capital gain and 0.92% from dividends. This is in US$.

Cost Tot. Cost Shares Years Dividends Stock Val Tot Ret
$34.27 $1,028.02 30 10 $195.56 $4,478.10 $4,673.66

The current dividend yield is low with dividend growth moderate. The current dividend yield is low (below 2%) at 0.66%. The 5, 10 and historical dividend yields are also low at 0.76%, 0.80% and 1.16%. The dividend increases are moderate (8% to 14% ranges) at 12.6% per year over the past 5 years. The last dividend increase was in 2023 and it was for 11.8%.

The Dividend Payout Ratios (DPR) are good. The DPR for 2023 for Earnings per Share (EPS) is good at 36% with 5 year coverage at 27%. The DPR for 2023 for Adjusted Earnings per Share (AEPS) is good at 25% with 5 year coverage at 26%. The DPR for 2023 for Cash Flow per Share (CFPS) is good at 13% with 5 year coverage at 13%. The DPR for 2023 for Free Cash Flow (FCF) is good at 23% with 5 year coverage at 23%.

Item Cur 5 Years
EPS 35.59% 37.18%
AEPS 25.06% 25.69%
CFPS 12.80% 12.76%
FCF 22.68% 22.74%

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2023 is good at 0.17 and currently at 0.17. The Liquidity Ratio for 2023 is too low at 0.68 and 0.75 currently. If you added in Cash Flow after dividends, the ratios are fine at 1.78 and currently at 2.02. The Debt Ratio for 2023 is good at 1.75 and 1.69 currently. The Leverage and Debt/Equity Ratios for 2023 are fine at 2.33 and 1.33 and currently at 2.45 and 1.45.

Type Year End Ratio Curr
Lg Term R 0.17 0.17
Intang/GW 0.23 0.21
Liquidity 0.68 0.75
Liq. + CF 1.78 2.02
Debt Ratio 1.75 1.69
Leverage 2.33 2.45
D/E Ratio 1.33 1.45

The Total Return per year is shown below for years of 5 to 22 to the end of 2023 in CDN$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From Years Div. Gth Tot Ret Cap Gain Div.
2018 5 11.91% 15.15% 14.32% 0.83%
2013 10 13.84% 19.48% 18.46% 1.03%
2008 15 0.91% 20.46% 19.01% 1.45%
2003 20 2.67% 12.99% 11.35% 1.64%
2001 22 4.54% 15.19% 12.85% 2.34%

The Total Return per year is shown below for years of 5 to 22 to the end of 2023 in US$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From Years Div. Gth Tot Ret Cap Gain Div.
2018 5 12.60% 15.85% 14.99% 0.86%
2013 10 11.38% 16.77% 15.85% 0.92%
2008 15 0.39% 20.01% 18.41% 1.60%
2003 20 2.55% 14.82% 12.55% 2.27%
2001 22 5.43% 19.05% 15.17% 3.88%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 41.25, 47.63 and 51.42. The corresponding 10 year ratios are 33.29, 40.08 and 45.42. The corresponding historical ratios are 25.17, 29.28 and 33.39. The current P/E Ratio is 41.04 based on a stock price of $237.44 and EPS estimate for 2024 of $5.79 ($4.22 US$). The current ratio is between the median and high ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in CDN$.

I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Earnings per Share Ratios are 30.20, 33.01 and 38.08. The corresponding 10 year ratios are 25.15, 28.51 and 34.13. The current P/AEPS Ratio is 41.30 based on a Stock Price of $173.05 and AEPS estimate for 2024 of $4.77. The current ratio is above the high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$ and you will get a similar result in CDN$.

I get a Graham Price of $78.11. The 10-year low, median, and high median Price/Graham Price Ratios are 1.90, 2.18 and 2.47. The current P/GP Ratio is 3.04 based on a stock price of $237.44. The current ratio is above the 10 year median high ratio. This stock price testing suggests that the stock price is relatively reasonable expensive. This testing is in CDN$.

I get a 10-year median Price/Book Value per Share Ratio of 2.89. The current P/B Ratio is 5.73 based on a stock price of $173.05, Book Value per Share of $30.19 and Book Value of $7,787M. The current ratio is 98% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$ and you will get a similar result in CDN$.

I also have a Book Value per Share estimate for 2024 of $32.00. This implies a Book Value of $8,255M and a ratio of 5.41 based on a stock price of $173.05. This ratio is 87% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$.

I get a 10-year median Price/Cash Flow per Share Ratio of 13.95. The current P/CF Ratio is 18.81 based on a stock price of $173.05, Cash Flow per Share estimate for 2024 of $9.20, and Cash Flow of $2,373M. The current ratio is 35% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$ and you will get a similar result in CDN$.

I get an historical median dividend yield of 1.16%. The current dividend yield is 0.66% based on a stock price of $173.05 and dividends of $1.14. The current ratio is 43% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$ and you will get a similar result in CDN$.

I get a 10 year median dividend yield of 0.80%. The current dividend yield is 0.66% based on a stock price of $173.05 and dividends of $1.14. The current ratio is 17% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in US$ and you will get a similar result in CDN$.

The 10-year median Price/Sales (Revenue) Ratio is 3.73. The current P/S Ratio is 5.07 based on a stock price of $173.05, Revenue estimate for 2024 of $8,811M and Revenue per Share of $34.16. The current ratio is 36% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$ and you will get a similar result in CDN$.

Results of stock price testing is that the stock price is probably on the expensive side. The 10 year median dividend yield test says the stock price is reasonable but above the median. The P/S Ratio testing does not confirm this and says the stock price is relatively expensive. A lot of the testing I have done says the stock price is relatively expensive.

When I look at analysts’ recommendations, I find Strong Buy (10), Buy (5), Hold (5), Underperform (1) and Sell (1). This is quite widely spread. The consensus would be a Buy. The 12 months stock price consensus is $253.60 ($184.80 US$), with a High of $297.79 ($217.00 US$) and low of $185 ($135.00 US$). The 12 month consensus implies a total return of $7.48% with 6.81% from capital gains and 0.67% from dividends.

There are 3 recommendations on Stock Chase and all say they like to company and the management. Stock Chase gives this stock 4 stars out of 5. Kay Ng on Motley Fool says to buy because they will raise their dividends later in the year. Rajiv Nanjapla on Motley Fool says to best Canadian stock to buy now. The company put out a press release via newswire about their 2023 year-end report. The company put out a press release via Newswire about their first quarter of 2024.

Simply Wall Street put out a report on this stock via Yahoo Finance. It is a rather negative report. Simply Wall Street has one warning of has a high level of debt. Interestingly, Simply Wall Street gives this stock 1 and one half stars out of 5, compared to Stock Chase of 4 out of 5.

Waste Connections is an integrated solid waste services company that provides non-hazardous waste collection, transfer, disposal and recycling services across the U.S. and Canada. Its web site is here Waste Connections Inc.

The last stock I wrote about was about was Lassonde Industries Inc (TSX-LAS.A, OTC-LSDAF) ... learn more. The next stock I will write about will be CI Financial Corp (TSX-CIX, NYSE-CIXX) ... learn more on Friday, June 21, 2024 around 5 pm. Tomorrow on my other blog I will write about Dividends in Hand Blogger.... learn more on Thursday, June 20, 2024 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Monday, June 17, 2024

Lassonde Industries Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. Results of stock price testing is that the stock price is relatively cheap. Debt Ratios are good. The Dividend Payout Ratios (DPR) are good. The current dividend yield is moderate with dividend growth restart, but has been inconsistent. See my spreadsheet on Lassonde Industries Inc.

Is it a good company at a reasonable price? They hit a peak in 2017/18 and cut their dividends. This can be seen in the Total Return chart below. Cutting dividends is never a good sign. However, in 2024, they raised the dividend some 82% over that paid in 2023 and higher than it has ever been. Dividend increases are a good sign. With this increase the dividend to date have increased by 9.04% and 9.66% per year over the past 5 and 10 years. This is a consumer stock and it does have an unstable dividend history. On the other hand, the stock price is testing as relatively cheap.

I do not own this stock of Lassonde Industries Inc (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 that I wasted too much time trying to find out information on this company. It does not have much on its site for MD & A and other sites have little information. However, this company did much better in 2023 than in the recent past. The first quarter of 2024 is good also. There are more estimates given currently on this stock than in the past, and this is a positive.

The current dividend yield is moderate with dividend growth restart, but has been inconsistent. The current dividend yield is moderate (2% to 4%) at 2.78%. The 5, 10 and historical dividend yields are low (below 2%) at 1.82%, 1.39%, and 1.78%. The dividend growth to the end of 2023 for the last 5 years is negative at 6%. However, dividends went up 100% with the increase in 2024 and dividends increase between 2023 and 2024 is 82%. The dividend growth for the last 5 years to date is 9% (but for the last 10 years is down by 0.7% per year). Over the past 33 years, dividends have been increased 19 times and decreased 5 times.

The Dividend Payout Ratios (DPR) are good. The DPR for 2023 for Earnings per Share (EPS) is good at 17% with 5 year coverage at 24%. The DPR for 2023 for Adjusted Earnings per Share (AEPS) is good at 17% with 5 year coverage at 24%. The DPR for 2023 for Cash Flow per Share (CFPS) is good at 7% with 5 year coverage at 10%. The DPR for 2023 for Free Cash Flow (FCF) is good at 13% with 5 year coverage at 21%.

Item Cur 5 Years
EPS 17.15% 24.16%
AEPS 16.69% 24.04%
CFPS 7.43% 10.34%
FCF 12.71% 21.24%

Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2023 is good at 0.20 and currently at 0.19. The Liquidity Ratio for 2023 is good at 1.71 and 1.72 currently. The Debt Ratio for 2023 is good at 2.49 and 2.50 currently. The Leverage and Debt/Equity Ratios for 2023 are good at 1.67 and 0.67 and currently at 1.67 and 0.67.

Type Year End Ratio Curr
Lg Term R 0.20 0.19
Intang/GW 0.53 0.52
Liquidity 1.71 1.72
Liq. + CF 2.27 2.10
Debt Ratio 2.49 2.50
Leverage 1.67 1.67
D/E Ratio 0.67 0.67

The Total Return per year is shown below for years of 5 to 33 to the end of 2023. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From Years Div. Gth Tot Ret Cap Gain Div.
2018 5 -6.26% -5.21% -6.78% 1.57%
2013 10 -10.72% 4.95% 2.96% 1.99%
2008 15 7.25% 13.22% 10.24% 2.98%
2003 20 9.47% 12.08% 9.48% 2.59%
1998 25 8.60% 10.78% 8.61% 2.18%
1993 30 8.51% 11.37% 9.11% 2.26%
1990 33 8.54% 13.39% 10.54% 2.84%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 12.58, 15.19 and 17.80. The corresponding 10 year ratios are 15.26, 17.59 and 20.14. The corresponding historical ratios are 8.14, 13.18 and 15.93. The current P/E Ratio is 9.43 based on a stock price of $144.00 and EPS estimate for 2024 of $15.27. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.

I also have Adjusted Earnings per Share (AEPS) Data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 10.76, 13.84 and 16.92. The corresponding 10 year ratios are 15.26, 17.59 and 19.93. The current P/AEPS Ratio is 9.43 based on a stock price of $144.00 and AEPS estimate for 2024 of $15.27. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $219.64. The 10-year low, median, and high median Price/Graham Price Ratios are 1.07, 1.24 and 1.40. The current P/GP Ratio is 0.66 based on a stock price of $144.00. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.

I get a 10-year median Price/Book Value per Share Ratio of 1.94. The current P/B Ratio is 1.03 based on a stock price of $144.00, Book Value of $958M and Book Value per Share of $140.41. The current ratio is 47% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get a 10-year median Price/Cash Flow per Share Ratio of 9.70. The current P/CF Ratio is 5.65 based on Cash Flow per Share estimate for 2024 of $25.50, Cash Flow of $174.00 and a stock price of $144.00. The current ratio is 42% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get an historical median dividend yield of 1.78%. The current dividend yield is 2.78% based on dividends of $4.00 and a stock price of $144.00. The current dividend yield is 56% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median dividend yield of 1.39%. The current dividend yield is 2.78% based on dividends of $4.00 and a stock price of $144.00. The current dividend yield is 99% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

The 10-year median Price/Sales (Revenue) Ratio is 0.71. The current P/S Ratio is 0.41 based on Revenue estimate for 2024 of $2,423M, Revenue per Share of $355.19 and a stock price of $144.00. The current ratio is 43% 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 dividend yield tests say that the stock price is cheap and it is confirmed by the P/S Ratio test. All the tests on this stock are pointing to a cheap price.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (1), and Hold (1). The consensus would be a Buy. The 12 month stock price consensus is $177.30 with a high of $182.00 and low of $175.00. The consensus price of $177.30 implies a total return of 25.90% with 23.13% from capital gains and 2.78% from dividends based on a current stock price of $144.00.

The last entries on Stock Chase for this stock is 2021. The were positive on this company, but one said buy and one said hold. Stock Chase gives this stock 1 star out to 5. Christopher Liew on Motley Fool said that this company would outperform in 2023 and he was right . Adam Othman on Motley Fool reviews this stock and thought it was good pick in 2023. The company put out a Press Release about their fourth quarter of 2023. The company put out a press release about their first quarter of 2024.

Simply Wall Street via Yahoo Finance put out a report on this stock, and it is rather negative. They have two warnings out on this company of earnings have declined by 0.07% per year over past 5 years; and unstable dividend track record. In this case, Simply Wall Street is right about unstable dividend track record. Simply Wall Street gives this stock 3 and one half stars out of 5. This is quite different than Stock Chase, but I think their rating is most realistic.

Lassonde Industries Inc is food and beverages industry in North America. Its single operating segment generates revenues from the sale of products including ready-to-drink beverages, fruit-based snacks, frozen juice concentrates and specialty food products as well as from rendering services related to the sale of these products. It earns the majority of the revenue in the United States. 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 Waste Connections Inc (TSX-WCN, NYSE-WCN) ... learn more on Wednesday, June 19, 2024 around 5 pm. Tomorrow on my other blog I will write about Financially Resilient.... learn more on Tuesday, June 18, 2024 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Friday, June 14, 2024

Goeasy Ltd

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. Results of stock price testing is that the stock price is that the stock price maybe reasonable. Debt Ratios show that the debt is far too high. The Dividend Payout Ratios (DPR) are good, but cash flow is lacking. The current dividend yield is moderate with dividend growth good. See my spreadsheet on Goeasy Ltd.

Is it a good company at a reasonable price? It has done well for its shareholders in the past. I do not like their level of debt. I would not invest in this company because it is not the sort of company I like because it charges very high interest rates, but I can see the logic of allowing such companies because the alternative can be worse.

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 they have a lot of debt and this debt is often higher than the Market Value of this stock. Also, they never seem to have a positive cash flow, but they have a very positive Net Income and EPS. I also noticed there is a difference between the stock price in the US and Canada. In the US the stock price is $131.73 which is 3% lower than the Canadian price of $185.89 with current exchange of 1.3700. Of course, there is not much trading in the US.

The main reason why this stock shows as expensive in the P/S Ratio test is that the Revenue is growing slower than the stock price over the past 5 and 10 years. See chart below.

Yr Item Tot. Gwth Per Year Gwth Coverage
5 Revenue Growth 146.96% 19.82% 5.59% <-12 mths
5 AEPS Growth 299.16% 31.90% 5.14% <-12 mths
5 Net Income Growth 366.64% 36.08% 3.03% <-12 mths
5 Cash Flow Growth 0.00% 0.00% -3.35% <-12 mths
5 CF Growth Excl. WC 193.16% 24.00% 6.13% <-12 mths
5 Dividend Growth 343.27% 34.69% 17.94% <-12 mths
5 Stock Price Growth 341.88% 34.60% 17.61% <-12 mths
10 Revenue Growth 471.29% 19.04% 21.27% <-this year
10 AEPS Growth 1135.65% 28.58% 19.85% <-this year
10 Net Income Growth 1647.98% 33.12% 13.27% <-this year
10 Cash Flow Growth 0.00% 0.00% -3.35% <-this year
10 CF Growth Excl. WC 715.53% 23.35%
10 Dividend Growth 952.78% 26.54% 22.69% <-this year
10 Stock Price Growth 813.64% 24.76% 17.61% <-this year

If you had invested in this company in December 2013, for $1,003.40 you would have bought 58 shares at $17.30 per share. In December 2023, after 10 years you would have received $879.86 in dividends. The stock would be worth $9,167.48. Your total return would have been $10,047.34. This would be a total return of 27.11% per year with 24.76% from capital gain and 2.35% from dividends.

Cost Tot. Cost Shares Years Dividends Stock Val Tot Ret
$17.30 $1,003.40 58 10 $879.86 $9,167.48 $10,047.34

The current dividend yield is moderate with dividend growth good. The dividend is moderate (2% to 4% range) at 2.52%. The 5, 10 and historical median dividend yields are also moderate at 2.46%, 2.12%, and 2.25%. The dividends were increased by 34.69% per year over the past 5 years. The last dividend increase was in 2024 and it was for 21.9%.

The Dividend Payout Ratios (DPR) are good, but cash flow is lacking. The DPR for 2023 for Earnings per Share (EPS) is good at 26% with 5 year coverage at 24%. The DPR for 2023 for Adjusted Earnings per Share (AEPS) is good at 27% with 5 year coverage at 25%. The DPR for 2023 for Cash Flow per Share excluding (CFPS) is negative. The DPR for 2023 for Cash Flow per Share excluding WC (CFPS) is good at 9% with 5 year coverage at 7%. The DPR for 2023 for Free Cash Flow (FCF) is negative.

Item Cur 5 Years
EPS 26.17% 24.01%
AEPS 26.67% 24.72%
CFPS -13.31% -17.77%
CFPS WC 9.33% 8.64%
FCF -3.39% -6.62%

Debt Ratios show that the debt is far too high. The Long Term Debt/Market Cap Ratio for 2023 is far too high at 1.07 and currently marginally better at 0.99. The Liquidity Ratio for 2023 is good at 1.63 and 3.35 currently. If you added in Cash Flow after dividends, the ratios are rather lower at 1.05 and currently at 1.64. The Debt Ratio for 2023 is lower than what I like at 1.34 and 1.33 currently. I prefer these ratios to be 1.50 or better. The Leverage and Debt/Equity Ratios for 2023 are far too high at 3.95 and 2.95 and currently at 4.00 and 3.00. I prefer these to be below 3.00 and below 2.00.

Type Ratio '22 Ratio Curr
Lg Term R 1.07 0.99
Intang/GW 0.12 0.10
Liquidity 1.63 3.35
Liq. + CF 1.05 1.64
Debt Ratio 1.34 1.33
Leverage 3.95 4.00
D/E Ratio 2.95 3.00


The Total Return per year is shown below for years of 5 to 28 to the end of 2023. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
From Years Div. Gth Tot Ret Cap Gain Div.
2018 5 34.69% 38.11% 34.60% 3.51%
2013 10 26.54% 27.11% 24.76% 2.35%
2008 15 17.44% 22.87% 20.62% 2.25%
2003 20 19.93% 20.46% 17.94% 2.52%
1998 25 13.39% 12.53% 0.86%
1995 28 8.27% 7.73% 0.55%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 6.39, 10.64 and 14.89. The corresponding 10 year ratios are 8.80, 11.63 and 14.70. The corresponding historical ratios are 9.38, 11.97 and 15.21. The current P/E Ratio is 11.43 based on a stock price of $185.89 and EPS estimate for 2024 of $16.26. The current ratio is between the low and median ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 7.57, 10.79 and 14.00. The corresponding 10 year ratios are 8.23, 11.03 and 13.85. The current P/AEPS Ratio is 10.92 based on a stock price of $185.89 and AEPS estimate for 2027 of $17.03. The current ratio is between the low and median ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $159.46. The 10-year low, median, and high median Price/Graham Price Ratios are 0.74, 0.98 and 1.36. The current P/GP Ratio is 1.17 based on a stock price of $185.89. The current ratio is between the median and high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a 10-year median Price/Book Value per Share Ratio of 2.02. The current P/B Ratio is 2.80 based on a stock price of $185.89, Book Value of $1,103M, and Book Value per Share of $66.36. The current ratio is 39% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I also have a Book Value per Share estimate for 2024 of $75.90. This analyst calculates the Book Value differently than I do and the 10 year median ratio in this case is 1.84. With the BVPS of $75.90, this implies a ratio of 2.45 with a Book Value of $1,262M and a stock price of $185.89. This ratio is 21% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I cannot do a 10-year median Price/Cash Flow per Share Ratio test because this company has had negative cash flows.

I get an historical median dividend yield of 2.25%. The current dividend yield is 2.52% based on a stock price of $185.89 and Dividends of $4.68. The current ratio is 12% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year median dividend yield of 2.12%. The current dividend yield is 2.52% based on a stock price of $185.89 and Dividends of $4.68. The current ratio is 19% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.

The 10-year median Price/Sales (Revenue) Ratio is 1.26. The current P/S Ratio is 2.04 based on Revenue estimate for 2024 of $1,516M, Revenue per Share of $91.19 and a stock price of $185.89. The current ratio is 61% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. The problem here is that the stock price is rising faster than Revenue.

Results of stock price testing is that the stock price is that the stock price maybe reasonable. The dividend yield tests are showing the stock price as reasonable. However, it is not confirmed by the P/S Ratio test which is showing the stock price as expensive. Most of the rest of the testing is showing the stock price as reasonable, except for the P/B Ratio test. Also, it is a problem that the cash flow is negative.

When I look at analysts’ recommendations, I find Strong Buy (2), Buy (5) and Hold (1). The consensus would be a Buy. The 12 months stock price consensus is $225.40, with a high of $300.00 and a low of $200.00. The consensus stock price of $225.40 implies a total return of 23.77% with 21.25% from capital gains and 2.52% from dividends based on a current stock price of $185.89.

Analysts on Stock Chase have positive views on this company. Some think it is a buy and some do not. Stock Chase gives this company 5 stars out of 5. Aditya Raghunath on Motley Fool thinks this stock is trading at a compelling valuation. Rajiv Nanjapla on Motley Fool thinks this company is an attractive buy. The company put out a press release via Newswire about their fourth quarter of 2023. The company put out a press release via Newswire about their first quarter of 2024 results.

Simply Wall Street via Yahoo Finance says this is top growth company with high insider ownership. Simply Wall Street fives this stock 3 and one half stars out of 5. They have 3 warnings of high level of non-cash earnings; debt is not well covered by operating cash flow; dividend of 2.52% is not well covered by cash flows.

Goeasy Ltd is a financial services company. The Company operates in two reportable segments: Easyfinancial and Easyhome. The Easyfinancial reportable segment lends out capital in the form of unsecured and secured consumer loans to nonprime borrowers. Easyfinancial's product offering consists of unsecured and real estate-secured installment loans. The key revenue of the company is generated from Easyfinancial. Its web site is here Goeasy Ltd.

The last stock I wrote about was about was Algonquin Power & Utilities Corp (TSX-AQN, NTSE-AQN) ... learn more. The next stock I will write about will be Lassonde Industries Inc (TSX-LAS.A, OTC-LSDAF) ... learn more on Monday, June 17, 2024 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Wednesday, June 12, 2024

Algonquin Power & Utilities Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Utility. Results of stock price testing is that the stock price is that the stock price is relatively cheap. Debt Ratios need improving, especially the Liquidity Ratio and the level of debt. The Dividend Payout Ratios (DPR) are too high currently, but are expected to improve over the next 3 years. The current dividend yield is high with dividend growth currently being cut. See my spreadsheet on Algonquin Power & Utilities Corp.

Is it a good company at a reasonable price? I worry about the amount of debt. They have sold a lot of stock over time and so have diluted shareholder value. You can see this with the difference in Revenue and Revenue per share mentioned below. Earnings have been volatile and this is mentioned below also. They just cut the dividends, and this is never a good sign. Some analysts like the stock better than others, but lots of debt has been pointed out as a problem. The stock price is testing as cheap, but cheap does not necessarily mean a good deal.

I do not own this stock of Algonquin Power & Utilities Corp (TSX-AQN, NTSE-AQN). This is a dividend paying utility stocks. I got it off a list of dividends paying utility stocks. Also, I own Emera Inc. and this company owns shares in Algonquin Power.

When I was updating my spreadsheet, I noticed is that there is a big difference in growth in Revenue and Revenue per share. The 5 and 10 year growth in Revenue is 10.4% and 15.6%. The 5 and 10 year growth in Revenue per Share is 3% and 2.4%. This is a big difference. It points to the company issuing lots of new shares and to a big dilution of shareholder value.

Earnings per Share have been volatile. You can see this in the 5 and 10 year Earnings which went down by 5.5% over the past 5 years and down by 40% over the past 10 years, but the 5 year running average is up by 8% for the past 5 years and up by 13% over the past 10 years. AEPS figures show this too, but not so strongly. You notice this also in the P/E Ratios which are high.

If you had invested in this company in December 2013, for $1,005.58 you would have bought 137 shares at $7.34 per share in CND$. In December 2023, after 10 years you would have received $898.91 in dividends. The stock would be worth $1,145.32. Your total return would have been $2,044.23. This would be a total return of 9.35% per year with 1.31% from capital gain and 8.04% from dividends. These values are in CDN$.

Cost Tot. Cost Shares Years Dividends Stock Val Tot Ret
$7.34 $1,005.58 137 10 $898.91 $1,145.32 $2,044.23

If you had invested in this company in December 2013, for $1,004.01 you would have bought 147 shares at $6.83 per share in US$. In December 2023, after 10 years you would have received $738.79 in dividends. The stock would be worth $929.04. Your total return would have been $1,667.83.23. This would be a total return of 6.35% per year with 0.77% from capital loss and 7.30% from dividends. (I checked my US$ stock prices against the CDN$ prices and the exchange rate at the time of the stock prices and they are accurate.) These values are in US$.

Cost Tot. Cost Shares Years Dividends Stock Val Tot Ret
$6.83 $1,004.01 147 10 $738.79 $929.04 $1,667.83

The current dividend yield is high with dividend growth currently being cut. The current dividend yield is high (7% or higher) at 7.33%. The 5 and 10 year median dividend yield is moderate (2% to 4% ranges) at 4.31% and 4.67%. The historical median dividend yield is good (5% to 6% ranges) at 6.79%. It is high because this stock started out as an income trust and these company tend to have quite high dividend yields. The dividends have recently been cut by 40%. Currently dividends are being paid in US$.

The Dividend Payout Ratios (DPR) are too high currently, but are expected to improve over the next 3 years. The DPR for 2023 for Earnings per Share (EPS) is far too high at 1687% with 5 year coverage at 123%. The DPR for 2023 for Adjusted Earnings per Share (AEPS) is still too high, but better than for EPS at 96% with 5 year coverage at 93%. The DPR for 2023 for Cash Flow per Share (CFPS) is good at 34% with 5 year coverage too high at 51%. The DPR for 2023 for Adjusted Funds from Operations (AFFO) is good at 48% with 5 year coverage at 52%. The DPR for 2023 for Free Cash Flow (FCF) is negative.

Item Cur 5 Years
EPS 1687.67% 123.33%
AEPS 95.53% 93.42%
CFPS 34.38% 50.92%
AFFO 48.27% 52.23%
FCF -81.02% -63.22%

Debt Ratios need improving, especially the Liquidity Ratio and the level of debt. The Long Term Debt/Market Cap Ratio for 2023 is far too high at 1.81 and currently at 2.16. The Liquidity Ratio for 2023 is far too low at 0.63 and 0.98 currently. If you added in Cash Flow after dividends, the ratio is too low for 2023 at 0.98 and is fine currently at 1.33. I prefer the Liquidity ratio to be 1.50 or higher. The Debt Ratio for 2023 is good at 1.56 and 1.54 currently. The Leverage and Debt/Equity Ratios for 2023 are too high at 3.78 and 2.42 and currently at 3.91 and 2.53. I prefer these ratios to be under 3.00 and under 2.00

Type Year End Ratio Curr
Lg Term 1.81 2.16
Intang/GW 0.33 0.34
Liquidity 0.63 0.98
Liq. + CF 0.98 1.33
Liq, CF DB 1.30 2.76
Debt Ratio 1.56 1.54
Leverage 3.78 3.91
D/E Ratio 2.42 2.53

The Total Return per year is shown below for years of 5 to 26 to the end of 2023 in CDN$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From Years Div. Gth Tot Ret Cap Gain Div.
2018 5 0.06% -2.54% -9.45% 6.90%
2013 10 7.50% 9.35% 1.31% 8.04%
2008 15 -1.82% 19.84% 8.95% 10.89%
2003 20 -1.57% 5.42% -1.13% 6.56%
1998 25 -0.88% 5.61% -1.32% 6.93%
1997 26 -0.88% 6.73% -0.85% 7.58%

The Total Return per year is shown below for years of 5 to 20 to the end of 2023 in US$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From Years Div. Gth Tot Ret Cap Gain Div.
2018 5 0.68% -1.73% -8.86% 7.13%
2013 10 5.18% 6.53% -0.77% 7.30%
2008 15 -2.33% 17.31% 6.94% 10.37%
2003 20 -1.69% 6.00% -1.25% 7.25%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 10.02, 12.02 and 14.03. The corresponding 10 year ratios are 23.16, 25.87 and 28.12. The corresponding historical ratios are 23.68, 27.16 and 30.43. The current P/E Ratio is 18.21 based on a stock price of $8.10 and EPS estimate for 2024 of $0.44 ($0.33 US$). The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap. This testing is in CDN$. The ratios are rather high. Probably because EPS has been going down and up quite a bit over the past 5 and 10 years.

I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 16.54, 19.85 and 23.16. The corresponding 10 year ratios are 16.82, 19.93 and 22.65. The current ratio is 12.33 based on a stock price of $8.10 and AEPS estimate for 2024 of $0.66 ($0.48 US$). The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap. This testing is in CDN$.

I also have Adjusted Funds from Operations (AFFO) data. The 5-year low, median, and high median Price/ Adjusted Funds from Operations Ratios are 9.29, 11.15 and 13.01. The corresponding 10 year ratios are 7.60, 8.70 and 10.40. The current ratio is 5.71 based on AFFO for the past 12 months of $961.99M, AFFO per Share of $1.42 and a stock price of $8.10. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap. This testing is in CDN$.

I get a Graham Price of $11.73. The 10-year low, median, and high median Price/Graham Price Ratios are 1.01, 1.22 and 1.41. The current ratio is 0.69 based on a stock price of $8.10. This ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap. This testing is in CDN$.

I get a 10-year median Price/Book Value per Share Ratio of 1.62. The current ratio is 0.87 based on Book Value of $4,686M, Book Value per Share of $6.80 and a stock price of $5.90. The current ratio is 46% below the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$ and you will get a similar result in CDN$.

I also have a Book Value per Share (BVPS) estimate for 2024 of $7.88. This analyst calculates the Book Value differently than I do and the 10 year median ratios here is 1.54. The current BVPS implies a ratio of 0.75, with a Book Value of $5,431M and a stock price of $5.90. The current ratio is 51% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$ and you will get a similar result in CDN$.

I get a 10-year median Price/Cash Flow per Share Ratio of 10.11. The current P/CF Ratio is 5.67 based on Cash Flow per Share estimate for 2024 of $1.04, Cash Flow of $716M and a stock price of $5.90. The current ratio is 44% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$ and you will get a similar result in CDN$.

I get an historical median dividend yield of 6.79%. The current dividend yield is 7.33% based on dividends of $0.594 and a stock price of $8.10. The current dividend yield is 8% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in CDN$ as I have move data on dividends in CDN$ than US$. The historical dividend yield is rather high because this stock used to be an income trust and these companies can afford high dividend yields.

I get a 10 year median dividend yield of 4.76%. The current dividend yield is 7.36% based on dividends of $0.434 and a stock price of $5.90. The current dividend yield is 54% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$ and you will get a similar result in CDN$. Dividends are now paid in US$.

The 10-year median Price/Sales (Revenue) Ratio is 2.80. The current P/S Ratio is 1.40 based on Revenue estimate for 2024 of $2,908M, Revenue per Share of $4.22 and a stock price of $5.90. The current ratio is 50% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$ and you will get a similar result in CDN$. Dividends are now paid in US$.

Results of stock price testing is that the stock price is that the stock price is relatively cheap. The 10 year dividend yield test says this. It is confirmed by the P/S Ratio test. The rest of the testing says the same thing. The only exception is the historical median dividend test, but original dividends were quite high because the stock started off as an income trust and those type of companies generally paid quite high dividends.

When I look at analysts’ recommendations, I find Strong Buy (2), Buy (2) and Hold (7). The consensus would be a Buy. The 12 month stock price is $9.22 ($6.74 US$), with a high of $9.99 ($7.30 US$) and low of $8.46 ($6.18 US$). The stock price of $9.22 implies a total return of 21.21% with 13.88% from capital gains and 7.33% from dividends.

Stock Chase. Stock Chase gave this company 4 stars out of 5. There are quite a few entries on Stock Chase for this stock and half is positive and half negative. High Debt seems to be mentioned a lot. Andrew Button on Motley Fool reviews this stock and does not like it, but says that does not say it will do poorly for investors. Adam Othman on Motley Fool thinks this is a good buy because of the very low price. The company put out a press release via Newswire about its 2023 results. The company put out a press release on Newswire about their 2024 results.

Simply Wall Street via Yahoo Finance reviews this stock. Simply Wall Street has two warnings on this stock of interest payments are not well covered by earnings; and dividend of 7.33% is not well covered by earnings or cash flows. Simply Wall Street gives this stock 2 and one half stars out of 5.

Algonquin Power & Utilities Corp, a parent company of Liberty, is a diversified international generation, transmission, and distribution utility. It has two business groups, the Regulated Services Group, and the Renewable Energy Group. AQN has over one million customers, largely in the United States and Canada. Its web site is here Algonquin Power & Utilities Corp.

The last stock I wrote about was about was Sylogist Ltd (TSX-SYZ, OTC-SYZLF) ... learn more. The next stock I will write about will be Goeasy Ltd (TSX-GSY, OTC-EHMEF) ... learn more on Friday, June 14, 2024 around 5 pm. Tomorrow on my other blog I will write about Canadians Investing.... learn more on Thursday, June 13, 2024 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.