HLS Therapeutics Inc

Sound bite for Twitter and StockTwits is: Health Care Stock. Results of stock price testing is that the stock price is relatively cheap. Debt Ratios are good and what you want for a small cap. The Dividend Payout Ratios (DPR) are not a problem. The current dividend yield is moderate with dividend growth non-existent and dividend about to be cancelled. See my spreadsheet on HLS Therapeutics Inc.

Is it a good company at a reasonable price? This is a small cap and so you should not invest any money in this company that you cannot afford to lose. I am going to keep my shares even though they are cancelling the dividends. I have invested in this company with my fooling around money. The price certainly seems cheap and analysts certainly expect the stock price to improve.

I own this stock of HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF). I got this stock because it did a reverse takeover of Automodular Corp (TSX-AM, OTC-AMZKF) on March 12, 2018. There was a plan of arrangement whereby Automodular shareholders got 0.165834 HLS common shares and one HLS preferred share. I bought some stock in 2018, 2020 and 2023 because this is a Health Care sector stock and there are few of them in the Canadian market.

When I was updating my spreadsheet, I noticed that this stock hit of high of $24.24 in January 2020 and has been going down ever since and is currently at $4.50. In 2012 I bought Automodular Corp and when it wound up in 2018, I owned shared in HLS Therapeutics Inc.

HLS Therapeutics Inc seemed like an interesting company so I bought some more shares. Going from Automodular Corp to the present, I have a loss of 27.17% per year with a capital loss of 29.42% and dividends of 2.25%. Going from when I first had HLS, I have a loss of 28.61% per year with a capital loss of 30.38% and dividends of 1.77%.

As you can see from the following chart, there is currently no growth when looking at the last 5 years. EPS and Net Income is 0% because the flows are negative. The dividend has not changed since it was started.

Year	Item	Tot. Growth	Per Year
5	Revenue Growth US$	-18.13%	-3.92%
5	EPS Growth	0.00%	0.00%
5	Net Income Growth	0.00%	0.00%
5	Cash Flow Growth	-37.64%	-9.01%
3	Dividend Growth	0.00%	0.00%
5	Stock Price Growth	-4.92%	-1.00%
7	Revenue Growth US$	208.01%	11.91%
7	EPS Growth	0.00%	0.00%
7	Net Income Growth	0.00%	0.00%
6	Cash Flow Growth	-22.13%	-2.47%
3	Dividend Growth	0.00%	0.00%
7	Stock Price Growth	-12.44%	-1.32%

If you had invested in this company in December 2016 when this stock was first issued, for $1,008.99 you would have bought 88 shares at $11.47 per share. In December 2022, after 7 years you would have received $74.80 in dividends. The stock would be worth $864.11. Your total return would have been $938.91.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$11.47	$1,008.99	88	7	$74.80	$864.11	$938.91

The current dividend yield is moderate with dividend growth non-existent and dividend about to be cancelled. The current dividend yield is moderate (2% to 4% ranges) at 4.72%. The 5 year median dividend yield is low (below 2%) at 1.08%. The dividend rate has not changed but the stock price has plummeted. The company is cancelling its dividend as it says it is growth company. Final Dividend will be June 2023.

The Dividend Payout Ratios (DPR) are not a problem. The DPR for 2022 for Earnings per Share (EPS) cannot be calculated because of earning losses. The DPR for 2022 for Cash Flow per Share (CFPS) for 2022 is 31% with 5 year non-calculable because of negative cash flows. The DPR for 2022 Free Cash Flow (FCF) is 67% with 5 year coverage at 50%. Dividends have not changed since they were started in 2018. However, the company has announced that they are cancelling the dividends this year.

Item	Cur	5 Years
EPS	0.00%	0.00%
CFPS	31.04%	0.00%
FCF	69.94%	50.07%

Debt Ratios are good and what you want for a small cap. The Long Term Debt/Market Cap Ratio for 2022 is low and good at 0.36. The Liquidity Ratio for 2022 is a bit low, but fine at 142. The Debt Ratio for 2022 is high and good at 2.08. Leverage Debt/Equity Ratios for 2022 are low and good at 1.93 and 0.93 respectively.

Type	Ratio
Lg Term	0.36
Intang/GW	0.83
Liquidity	1.42
Liq. + CF	1.81
Debt Ratio	2.08
Leverage	1.93
D/E Ratio	0.93

The Total Return per year is shown below for years of 5 to 7 to the end of 2022. 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.
2017	5	0.00%	2.29%	0.55%	1.74%
2015	7	0.00%	-1.03%	-2.17%	1.15%

The 5-year low, median, and high median Price/Earnings per Share Ratios are all negative, so I can not use them for testing. The corresponding 10 year ratios are also negative and useless as are the historical ratios and so they are also useless.

With negative EPS values, I cannot properly calculate a Graham Price.

I get a 7-year median Price/Book Value per Share Ratio of 1.98. The current P/B Ratio is 0.90 based on a Book Value of $118.9M, Book Value per Share of 3.67 and a stock price of $3.27. The current P/B Ratio is 55% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$, but you will get a similar result in CDN$.

I also have a Book Value per Share estimate for 2023 of $3.32. This implies a Book Value of $107.4M, a ratio of 0.98 with a stock price of $3.27. This P/B Ratio is 55% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$, but you will get a similar result in CDN$.

I get a 7-year median Price/Cash Flow per Share Ratio of 17.41. The current P/CF Ratio is 6.96 based on Cash Flow of $15.2M for the last 12 months, Cash Flow per Share of $0.47 and a stock price of $3.27. The current ratio is 60% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$, but you will get a similar result in CDN$.

I get a 4 year median dividend yield of 1.08%. The current dividend yield is 4.72% based dividends of $0.20 and a stock price of $4.24. The current dividend yield is 337% above the 4 year dividend yield. This stock price testing suggests that the stock price is relatively cheap. This testing is in CDN$, but you will get a similar result in US$.

The 10-year median Price/Sales (Revenue) Ratio is 6.10. The current ratio is 1.60 based on Revenue estimate for 2023 is $66M, Revenue per Share of $2.04 and a stock price of $3.27. The current ratio is 73% below the 7 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$, but you will get a similar result in CDN$.

Results of stock price testing is that the stock price is relatively cheap. All the testing is pointing to this, especially the S/P Ratio and dividend testing.

When I look at analysts’ recommendations, I find Strong Buy (2), Buy (2) and Hold (1). The consensus would be a Strong Buy. The 12 month stock price consensus is $16.85 ($12.37 US$). This implies a total return of 302.16% with 297.44% from capital gains and 4.72% from dividends. I find TD WebBroker has Buy (4), Hold ( 1) with a consensus a Buy. The 12 months consensus stock price is $15.00.

There are no entries on Stock Chase for this stock. Christopher Liew on Motley Fool thinks there is a buying opportunity in the current down market. But it is a high-risk, high reward type stock. Ambrose O'Callaghan on Motley Fool says the stock is cheap. The company put out a Press Release on their results for 2022. The company put out a Press Release on their first quarter of 2023.

Simply Wall Street via Yahoo Finance talks about the dividends on this stock. They think the dividend is unsustainable. Simply Wall Street gives out 2 warnings of dividend of 4.62% is not well covered by earnings or cash flows; currently unprofitable and not forecast to become profitable over the next 3 years. Simply Wall Street gives this stock 3 stars out of 5.

HLS Therapeutics Inc is a specialty pharmaceutical company. It is focused on the acquisition and commercialization of branded pharmaceutical products in the North American markets. The company products include Clozaril, Vascepa, Trinomia, and Perseris. The company earns revenue in the form of product sales and royalties, out of which product sales contribute to most of the revenue. The company operates in Canada, the United States, and the Rest of the world. Its web site is here HLS Therapeutics 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 Reitmans (Canada) Ltd (TSX-RET.A, OTC-RTMAF) ... learn more on Wednesday, May 31, 2023 around 5 pm. Tomorrow on my other blog I will write about Using BETA.... learn more on Tuesday, May 30, 2023 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 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.

Pizza Pizza Royalty Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. Debt Ratios for PPRC are good, but I wonder about the Debt Ratios for PPL The Dividend Payout Ratios (DPR) are fine for PPRC, but I wonder about the ability of PPL to pay the royalties to PPRC. The current dividend yield is good with dividend growth restarting. See my spreadsheet on Pizza Pizza Royalty Corp.

Is it a good company at a reasonable price? The stock price seems reasonable, but it is above the median. The Hold recommendation and a 12 months stock price of $16.00 seems off as that price points to a 16% total return. Pizza Pizza Royalty Corp (PPRC) financials looks fine, but I worry about the financials of Pizza Pizza Ltd (PPL) and especially, their Debt Ratios. If I misunderstand the financials, it is even a better reason for me to avoid this stock. The financials are complicated because you must look at both PPL and PPRC financials. I do not like complicated stocks.

I do not own this stock of Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF). Several people have recommended this stock, so I decided to look at it. It was on once on John Heinzl's Dividend Hog Portfolio, but has been taken off.

When I was updating my spreadsheet, I noticed what I do not like about this company is the complexity. I must look at both the Pizza Pizza Royalty Corp (PPRC) and Pizza Pizza Limited (PPL). The Pizza Pizza Royalty Corp (PPRC) is the one on the stock market. When you have a great deal of complexity, it is much easier to miss things. It is also easier for the company to do things that you may not like, and it is easy for you to miss.

If you had invested in this company in December 2012, for $1,002.00 you would have bought 100 shares at $10.02 per share. In December 2022, after 10 years you would have received $794.92 in dividends. The stock would be worth $1,364.20. Your total return would have been $2,158.92.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$10.02	$1,002.00	100	10	$794.92	$1,364.00	$2,158.92

For Pizza Pizza Limited (PPL) there is some growth figures below for the past 5 and 10 years. Items such a Net Income and Cash Flow has grown well recently, but they are down quite a bit over the past 10 years.

Year	Item	Tot. Growth	Per Year
5	Revenue PPL	34.81%	6.16%
5	Net Income Growth	102.70%	15.18%
5	Cash Flow Growth	186.52%	23.43%
5	Royalty Payments Growth	2.28%	0.45%
5	Asset Growth	39.97%	6.96%
10	Revenue PPL	29.90%	2.65%
10	Net Income Growth	-98.29%	-33.43%
10	Cash Flow Growth	-51.64%	-7.01%
10	Royalty Payments Growth	16.49%	1.54%
10	Asset Growth	20.60%	1.89%

Also, for Pizza Pizza Limited (PPL) the debt ratios seem awful and I am taking into consideration, their deferred gain. With the Liquidity Ratio, below 1.00 it means that the current assets cannot cover the current liabilities. This is true even if you talk into consideration the Cash Flow (CF).

Type	Ratio
Lg Term	0.78
Intang/GW	0.01
Liquidity	0.64
Liq. + CF	0.69
Debt Ratio	1.24
Leverage	2.87
D/E Ratio	2.90

The current dividend yield is good with dividend growth restarting. The current dividend yield is good (5% to 6% ranges) at 6.00%. The 5 and 10 median dividend yields are also good at 6.92% and 6.24%. The historical median dividend yield is high (7% or higher) at 7.43%. This company used to be an income trust and this explains the past high dividend yields. The dividends were cut in 2020, but they are now back to where they were before the cut.

The Dividend Payout Ratios (DPR) are fine for PPRC. The DPR for 2022 for Earnings per Share (EPS) is 92% with 5 year coverage at 95%. The DPR for 2022 for Adjusted Earnings per Share (AEPS) is 89% with 5 year coverage at 92%. The DPR for 2022 for Cash Flow per Share (CFPS) is 68% with 5 year coverage at 71%. The DPR for 2022 for Free Cash Flow (FCF) is 94% with 5 year coverage at 98%.

Item	Cur	5 Years
EPS	91.57%	95.42%
AEPS	89.18%	92.29%
CFPS	68.19%	71.02%
FCF	93.86%	97.66%

The Pizza Pizza Royalty Corp (PPRC) can payout basically all their income. However, what counts is the ability of Pizza Pizza Ltd (PPL) to pay out the Royalty Payments to PPRC. The Royalty Payments are made from income. As near as I can tell, PPL paid out 99.5% of their Net Income to PPRC in 2022 and the 5 year average is 102.2%. It is higher than Net Income excluding the Royalty payment because PPL has had earning losses.

Debt Ratios for PPRC are good, but I wonder about the Debt Ratios for PPL (see above). The Long Term Debt/Market Cap Ratio for 2022 is 0.14. The Intangible/Good Will Ratio is too high at 1.05. You do not want this above 1.00 and you probably want it much lower. The Liquidity Ratio is good at 2.85. The Debt Ratio is good at 4.88. The Leverage and Debt/Equity Ratios are good at 1.76 and 0.36.

Type	Ratio
Lg Term	0.14
Intang/GW	1.05
Liquidity	2.85
Liq. + CF	5.20
Debt Ratio	4.88
Leverage	1.76
D/E Ratio	0.36

The Total Return per year is shown below for years of 5 to 16 to the end of 2022. 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.
2017	5	-1.65%	1.74%	-3.38%	5.12%
2012	10	1.01%	10.22%	3.13%	7.09%
2007	15	-0.76%	9.35%	2.03%	7.32%
2005	17	0.14%	9.22%	1.84%	7.37%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 10.53, 14.36 and 16.39. The corresponding 10 year ratios are 13.12, 15.06 and 17.18. The corresponding historical ratios are 12.59, 14.76 and 16.75. The current P/E Ratio is 17.07 based on a stock price of $14.51 and EPS estimate for 2023 of $0.85. 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.

I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 10.11, 13.76 and 15.71. The corresponding 10 year ratios are 12.58, 14.43 and 16.29. The current P/AEPS Ratio is 15.77 based on a AEPS estimate for 2023 of $0.92 and a stock price of $14.51. The current ratio is above the high ratio of the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $13.43. The 10-year low, median, and high median Price/Graham Price Ratios are 0.84, 0.97 and 1.09. The current P/GP Ratio is 1.08 based on a stock price of $14.51. 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.

I get a 10-year median Price/Book Value per Share Ratio of 1.49. The current P/B Ratio is 1.67 based on a stock price of $14.51, Book Value of $215M and Book Value per Share of $8.71. The current ratio is 12% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a 10-year median Price/Cash Flow per Share Ratio of 10.97. The current P/CF Ratio is 12.22 based on Cash Flow for the last 12 months of $29.2M, Cash Flow per Share of 1.19 and a stock price of $14.51. The current ratio is 11% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get an historical median dividend yield of 7.43%. The current dividend yield is 6.00% based on a stock price of $14.51 and dividends of 0.87. The current dividend yield is 19% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a 10 year median dividend yield of 6.24%. The current dividend yield is 6.00% based on a stock price of $14.51 and dividends of 0.87. The current dividend yield is 4% below the historical median dividend yield. 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 0.56. The current P/S Ratio is 0.59 based on Royalty System Sales estimate for 2023 of $610M. The current P/S Ratio is 5% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

Results of stock price testing is that the stock price is probably still reasonable, but above the median. The dividend yield tests say this and it is confirmed by the P/S Ratio testing.

When I look at analysts’ recommendations, I find a Hold (1). The consensus would be a Hold. The 12 month stock price consensus is $16.00. This implies a total return of 16.26% with 10.27% from capital gains and 6.00% from dividends based on a stock price of $14.51.

When I looked at analysts’ recommendations last year, I found that Alpha Spread gives this stock an intrinsic Value of $13.90 CDN and a target price of $14.28 CDN. WSJ gives this stock a target of $14.00 and had one Hold recommendation. A target price of $14.00 implies a total return of 17.77% with 11.55% from capital gains and 6.22% from dividends based on a stock price of $12.55. What happened the stock price rising to 14.51 and that implies a total return of 21.84% with 15.62% from capital gains and 6.22% from dividends based on a stock price of $12.55.

These seems to be only one comment a year on Stock Chase for this stock. The latest was a Buy recommendation. It is not on the Money Sense, Maple Money, or Aristocrat dividend lists. Stock Chase gives this stock 4 stars out of 5. Rajiv Nanjapla on Motley Fool thinks this is a good passive income stock. Aditya Raghunath on Motley Fool thinks this is a quality monthly payout stock. The company put out a Press Release on their 2022 results. The company put out a Press Release on their 2023 first quarter results. Alicja Siekierska on Yahoo Finance looks at this stock

Simply Wall Street via Yahoo Finance reviewed this stock. Simply Wall Street has two warnings of Earnings have declined by 1% per year over past 5 years; and dividend of 6% is not well covered by earnings or cash flows. Simply Wall Street gives this stock 3 stars out of 5.

Pizza Pizza Royalty Corp., through its subsidiary, Pizza Pizza Royalty Limited Partnership, owns and franchises quick-service restaurants under the Pizza Pizza and Pizza 73 brands. Its web site is here Pizza Pizza Royalty Corp.

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 HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF) ... learn more on Monday, May 29, 2023 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 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.

Canadian Utilities Ltd

Sound bite for Twitter and StockTwits is: Dividend Growth Utility. The stock price seems reasonable and below the median. Some Debt Ratios are not what I would like, but the fact remains that utilities tend to have a high level of debt. The Dividend Payout Ratios (DPR) are fine and going in the right direction. The current dividend yield is moderate with dividend growth low. See my spreadsheet on Canadian Utilities Ltd.

Is it a good company at a reasonable price? I realize that this stock seems currently out of favour, but I am not willing to give up on it just yet. For utility stocks I expect half my return from dividends and half from capital gains. I still expect that long term, this stock will deliver this. The stock price seems reasonable at the present time.

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. ATCO (TSX-ACO-X) owns most of this stock, so you would not buy both these stocks. I bought some of this stock in 2017 and in 2019.

When I was updating my spreadsheet, I noticed that my return is still very low. My total return to date after almost 7 years is 4.89% with 0.52% from capital gains and 4.37% from dividends. I am getting the dividends I expected, but not the capital gains. A reasonable capital gain for me would be around 3% to 4% per year.

If you had invested in this company in December 2012, for $1,007.16 you would have bought 28 shares at $35.97 per share. In December 2022, after 10 years you would have received $405.76.20 in dividends. The stock would be worth $1,026.20. Your total return would have been $1,431.96.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$35.97	$1,007.16	28	10	$405.76	$1,026.20	$1,431.96

The current dividend yield is moderate with dividend growth low. The current dividend yield is moderate (2% to 4% ranges) at 4.72%. The 5, 10 and historical median dividend yields are also moderate at 4.76%, 4.20% and 3.78%. The dividend increases are low (below 8%) at 4.4% per year over the past 5 years. The last dividend increase was 1% and it occurred in 2023. (The 2022 dividend increase was also 1%.)

The Dividend Payout Ratios (DPR) are fine and going in the right direction. The DPR for 2022 for Earnings per Share (EPS) was 86% with 5 year coverage at 86%. The DPR for 2022 for Adjusted Earnings per Share (AEPS) was 73% with 5 year coverage at 78%. The DPR for 2022 for Cash Flow per Share (CFPS) was 25% with 5 year coverage at 26%. The DPR for 2022 for Free Cash Flow (FCF) was 62% with 5 year coverage at 103%. The DPRs, especially for EPS has been higher than usual and that is probably why the last 2 increases were lower than usual.

Item	Cur	5 Years
EPS	86.25%	86.19%
AEPS	73.12%	77.82%
CFPS	24.81%	26.49%
FCF	61.87%	103.15%

Some Debt Ratios are not what I would like, but the fact remains that utilities tend to have a high level of debt. The Long Term Debt/Market Cap ratio for 2022 is high but still fine at 0.95. It is better if it was closer to 0.50, but utilities tend to have high debt levels. The Liquidity Ratio for 2022 is fine at 1.42, but would be better at 1.50. The Debt Ratio is fine at 1.47, but would be better at 1.50. The Leverage and Debt/Equity Ratios are too high at 3.11 and 2.11. They would be better below 3.00 and 2.00.

Type	Ratio
Lg Term	0.95
Intan/GW	0.07
Liquidity	1.42
Liq. + CF	2.68
Debt Ratio	1.47
Leverage	3.11
D/E Ratio	2.11

The Total Return per year is shown below for years of 5 to 33 to the end of 2022. 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.
2017	5	4.44%	4.18%	-0.41%	4.59%
2012	10	7.22%	4.09%	0.19%	3.91%
2007	15	7.21%	7.06%	3.10%	3.97%
2002	20	6.65%	9.91%	5.40%	4.51%
1997	25	6.25%	9.58%	5.26%	4.32%
1992	30	5.56%	12.39%	6.78%	5.61%
1988	34	5.08%	11.36%	6.09%	5.27%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 16.31, 18.21 and 201.12. The corresponding 10 year ratios are 16.21, 18.09 and 19.98. The corresponding historical ratios are 11.08, 13.09 and 15.31. The current P/E Ratios is 16.14 based on a stock price of $36.48 and EPS estimate for 2023 of $2.26. 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 also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 13.82, 15.44 and 17.06. The corresponding 10 year ratios are 13.93, 16.74 and 18.52. The current P/AEPS is 15.72 based on a stock price of $36.48 and AEPS estimate for 2023 of $2.32. This ratio is between the median and high ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a Graham Price of $31.73. The 10-year low, median, and high median Price/Graham Price Ratios are 1.03, 1.19 and 1.39. The current P/GP Ratio is 1.15 based on a stock price of $36.48. The current ratio 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 get a 10-year median Price/Book Value per Share Ratio of 2.10. The current P/B Ratio is 1.89 based on a Book Value of $5,208, Book Value per Share of $19.28 and a stock price of $36.48. The current ratio is 3.5% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I also have Book Value per Share (BVPS) estimate for 2023 of $19.80. Because the analyst calculated the book value differently than I do, the 10 year median P/B Ratio is 1.50. This BVPS implies a Book Value of $5,247M, and a P/B Ratio of 1.84 with a stock price of $36.48. This current P/B Ratio of 1.84 is 23% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I get a 10-year median Price/Cash Flow per Share Ratio of 5.99. The current P/CF Ratio is 5.42 based on a Cash Flow per Share estimate for 2023 of $6.73, Cash Flow of $1,808M and a stock price of $36.48. The current ratio is 9% 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 3.78%. The current dividend yield is 4.92% based on a stock price of $36.48 and dividends of $1.7944. The current dividend yield is 30% 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 4.20%. The current dividend yield is 4.92% based on a stock price of $36.48 and dividends of $1.7944. The current dividend yield is 17% above 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 2.72. The current P/S Ratio is 2.47 based on Revenue estimate for 2023 of $3,994M, Revenue per Share of $14.79 and a stock price of $36.48. The current ratio is 9% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

Results of stock price testing is that the stock price is probably reasonable. The 10 year dividend yield test says this and it is confirmed by the P/S Ratio test that says the same. The other testing was a mixture of expensive to cheap, but with most at reasonable.

When I look at analysts’ recommendations, I find Strong Buy (1), and Hold (8). The consensus would be a Hold. The 12 month stock price consensus is $39.78. This implies a total return of 13.96% with 9.05% from capital gains and 4.92% from dividends.

When I look at analysts’ recommendations last year, I found Strong Buy (1), Buy (1) and Hold (6). The consensus would be a Hold. The 12 month stock price is $39.71. This implies a total return of 2.97% with a 1.44% capital loss and dividends of $2.97% based on a stock price of $40.29. Since the stock markets are down year to date, this may not be an unreasonable position. What happened was a stock price movement to $36.48 for a loss of 6.49% with capital loss of 9.46% and dividends of 2.97%.

Lately on Stock Chase there fewer reviews and none in 2023. This is never a good sign. Stock Chase gives this stock 1 star out of 5. It was on the Money Sense list until 2023 when it was taken off. It is on the Maple Money list for 2023 and the Aristocrat list for 2023. Vineet Kulkarni on Motley Fool says this stock is one of 3 top yielding Canadian dividend stocks. Tony Dong on Motley Fool likes this company’s history of delivering reliable dividends. The company put out a press release on Newswire about their 2022 results. The company put out a press release on Newswire about their first quarter results for 2023.

Simply Wall Street via Yahoo Finance reviews this stock. They say that things are looking bullish after the first quarter of 2023 report. They say the company beat both earnings and revenue forecasts and price target remained the same. Simply Wall Street put out 2 warnings on this company of earnings are forecast to decline by an average of 2.4% per year for the next 3 years; and debt is not well covered by operating cash flow.

Canadian Utilities Ltd, a subsidiary of holding company Atco, offers gas and electricity services. The company's main divisions include electricity (generation, transmission, and distribution), pipelines & liquid (natural gas and water), and Retail Energy. Headquartered in Calgary, Alberta, the firm mainly operates in Canada and Australia, along with some operations in the United States and Mexico. Its web site is here Canadian Utilities Ltd .

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 Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF) ... learn more on Friday, May 26, 2023 around 5 pm. I taking a day trip and will not publish tomorrow.

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 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.

Mullen Group Ltd

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. Results of stock price testing is that the stock price is probably reasonable. Debt Ratios are fine. The Dividend Payout Ratios (DPR) are fine, if a little high at some times. The current dividend yield is moderate with dividend growth moderate, but dividends are inconsistent. See my spreadsheet on Mullen Group Ltd.

Is it a good company at a reasonable price? The stock price is reasonable and it may even be cheap. I have this in my main Trading Account, but it is a small cap that is volatile. You should only buy such stocks if you can put up with the volatility. This stock has a dividend and it shows why it is a good idea to buy stocks with dividends. You often do not lose on them when you consider the stock value and the dividends you have received.

I own this stock of Mullen Group Ltd (TSX-MTL, OTC-MLLGF). I intend to hold on to the shares I have. This stock made a high at 2014 that it has never repeated. Currently it is 50% below the high. It has a BETA of 1.76, so it is more volatile than the general market. It provides serves to the resource industrial in Western Canada. Resource industrials in Western Canada are boom and bust type industries.

When I was updating my spreadsheet, I noticed this stock hit a high in mid-2014, and has yet to match it again. This stock today is 52% below that high. My total return to the end of April 2023 is 0.59% with a capital loss of 2.79% per year and dividends of 3.38% per year. It is better than last year when I had a total loss of 2.97% per year. I never bought at the top price and when there was a low in 2021, I bought some more shares.

If you had invested in this company in December 2012, for $1,003.20 you would have bought 48 shares at $20.60 per share. In December 2022, after 10 years you would have received $355.20 in dividends. The stock would be worth $698.40. Your total return would have been $1,053.60.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$20.90	$1,003.20	48	10	$355.20	$698.40	$1,053.60

The current dividend yield is moderate with dividend growth moderate, but dividends are inconsistent. The current dividend yield is moderate (2% to 4% ranges) at 4.67%. The 5, 10 and historical dividend yields are also moderate at 4.46%, 4.61% and 4.13%. The dividends have increased at a moderate rate (8% to 14% ranges) at 13% per year over the past 5 years. Dividends have been inconsistent. Over the past 22 years, dividends have gone up 11 times and decreased 5 times.

The Dividend Payout Ratios (DPR) are fine, if a little high at some times. The DPR for EPS for 2022 is 41% with 5 year coverage at 81%. The DPR for Adjusted Earnings per Share (AEPS) for 2022 is 38% with 5 year coverage at 77%. The DPR for Cash Flow per Share (CFPS) for 2022 is 19% with 5 year coverage at 22%. The DPR for Free Cash Flow (FCF) for 2022 is 34% with 5 year coverage at 48%.

Item	Cur	5 Years
EPS	40.74%	81.10%
AEPS	37.50%	77.42%
CFPS	18.60%	22.12%
FCF	33.91%	48.48%

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio is good and low at 0.44. The Liquidity Ratio is good and high at 1.64. The Debt Ratio is good and high at 1.95. The Leverage and Debt/Equity Ratios are fine at 2.05 and 1.05.

Type	Ratio
Lg Term	0.44
Liquidity	1.64
Liq. + CF	2.55
Debt Ratio	1.95
Leverage	2.05
D/E Ratio	1.05

The Total Return per year is shown below for years of 5 to 25 to the end of 2022. 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.
2017	5	12.89%	1.92%	-1.56%	3.48%
2012	10	-4.07%	0.61%	-3.56%	4.16%
2007	15	-6.47%	3.90%	-1.26%	5.16%
2002	20	8.33%	9.10%	1.73%	7.37%
1997	25	7.54%	9.28%	2.97%	6.31%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 6.81, 12.27 and 18.33. The corresponding 10 year ratios are 12.99, 15.97 and 18.95. The corresponding historical ratios are 11.38, 14.78 and 18.45. The current P/E Ratio 12.74 based on a stock price of $15.42 and EPS estimate for 2023 of $1.21. 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 13.60, 16.58 and 19.56. The corresponding 10 year ratios are 14.87, 1976 and 24.74. The current P/AEPS Ratio is 12.34 based on a stock price of $15.42 and AEPS estimate for 2023 of $1.25. 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 $16.85. The 10-year low, median, and high median Price/Graham Price Ratios are 1.06, 1.32 and 1.56. The current P/GP Ratio is 0.92 based on a stock price of $15.42. The current ratio is below the low ratio of the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get a 10-year median Price/Book Value per Share Ratio of 1.72. The current P/B Ratio is 1.53 based on a Book Value of $938.4M, Book Value per Share of $10.10 and a stock price of $15.42. The current ratio is 11% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I also have a Book Value per Share estimate for 2023 of $10.70. This implies a Book Value of $994.6M with a P/B Ratio of 1.44 and a stock price of $15.42. This ratio is 16% below the 10 year median ratio of 1.72. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10-year median Price/Cash Flow per Share Ratio of 6.02. The current P/CF Ratio is 5.71 based on Cash Flow per Share estimate for 2023 of $2.70, Cash Flow of $251M and a stock price of $15.42. The current ratio is 5% 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 4.13%. The current dividend yield is 4.67% based on a dividend of $0.72 and a stock price of $15.42. The current ratio is 13% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year median dividend yield of 4.61%. The current dividend yield is 4.67% based on a dividend of $0.72 and a stock price of $15.42. The current ratio is 1.4% 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 1.27. The current P/S Ratio is 0.72 based on Revenue estimate for 2023 of $1,992M, Revenue per Share of $21.43 and a stock price of $15.42. 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 probably reasonable. The dividend yield tests are saying this. The P/S Ratio test is saying the stock price is cheap and it maybe. All the rest of the testing is showing the stock price either as cheap or reasonable.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (4) and Hold (5). The consensus would be a Buy. The 12 month stock price consensus is $16.68. This implies a total return of 12.84% with 8.17% from capital gains and 4.67% from dividends.

Analysts left a couple of positive remarks on this company in 2023 on Stock Chase . Stock Chase gives this company 4 stars out of 5. It is 71 on the Money Sense list. Ambrose O'Callaghan on Motley Fool says it is a cheap dividend stock to own. Jitendra Parashar on Motley Fool likes this stock for its monthly dividends. The company put out a press release on Newswire about their 2022 results. The company put out a press release on Newswire about their results for the first quarter of 2023. Simply Wall Street gives this stock 3 stars out of 5.

Simply Wall Street via Yahoo Finance reviews this stock . Simply Wall Street gives out 3 warnings of earnings are forecast to decline by an average of 11% per year for the next 3 years; has a high level of debt; unstable dividend track record. They are right this time about unstable dividends.

Mullen Group Ltd is a logistics provider with a network of independently operated businesses providing a wide range of service offerings including less-than-truckload, truckload, Specialized & Industrial Services warehousing and logistics, U..S. and International Logistics, and Corporate. The company also provides a diverse set of specialized services related to the energy, mining, forestry, and construction industries in western Canada. Its web site is here Mullen Group Ltd.

The last stock I wrote about was about was Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF) ... learn more. The next stock I will write about will be Canadian Utilities Ltd (TSX-CU, OTC-CDUAF) ... learn more on Wednesday, May 24, 2023 around 5 pm. Tomorrow on my other blog I will write about Passive Canadian Income.... learn more on Tuesday, May 23, 2023 around 5 pm.

I started this blog on May 21, 2008, so it has been some 15 years that I have been doing this.

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 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.

Hammond Power Solutions Inc

Sound bite for Twitter and StockTwits is: Dividend Growth. Results of stock price testing is that the stock price is relatively expensive, but maybe it might be in the reasonable range. Debt Ratios are good. The Dividend Payout Ratios (DPR) are good. The current dividend yield is low with dividend growth moderate. See my spreadsheet on Hammond Power Solutions Inc.

Is it a good company at a reasonable price? This is a small cap I bought with my fooling around money. I am pleased with its recent progress. Until this year, I was not making much on this stock. For example, my total return to the April 2021 was 6.77% per year, for April 2022 was 7.86% per year, but for April 2023 is 19.14% per year. The stock price went up in 2007, and then was basically flat until 2001. My relative stock price testing is showing the stock price as expensive, but with very low ratio rates in the past, you could argue that the currently price relatively to other stocks might be reasonable.

Can I make an argument that the stock price might be reasonable? The thing is that a lot of the ratios on this stock are very low. Another is that my method of relative pricing sometimes does not always tell the whole story. No method is perfect. So, perhaps I can make an argument that the stock price is reasonable.

First with the P/E Ratio test. The P/E Ratios for this stock are very low. The current one of 10.25 is a low one and points to a reasonable stock price. For the P/GP Ratio, the current one of 1.10 is not a high one. In theory a ratio of 1.00 or less is considered good. The P/CF ratio of 18.69 is a bit high, but not that high. Anything over 20.00 would probably be considered high, making the stock price expensive. The P/S Ratio of 0.75 is low. Basically, a ratio of 1.00 or less is a good one.

I own this stock of Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF). When I was updating my spreadsheet, I noticed last year, my Total Return to the end of April 2022 was 7.86%, with 5.13% from capital gains and 2.73% from dividends. This year my Total Return to the end of April 2023 was 19.14% with 17.26% from capital gains and 1.88% from dividends.

If you had invested in this company in December 2012, for $1,007.37 you would have bought 123 shares at $8.19 per share. In December 2022, after 10 years you would have received $349.94 in dividends. The stock would be worth $2,474.76. Your total return would have been $2,824.70.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$8.19	$1,007.37	123	10	$349.94	$2,474.76	$2,824.70

Looking at the chart below of growth over the past 5 and 10 years, growth has picked up. The company has good growth in earnings and cash flow, especially over the past 5 years. EPS has especially grown over the past 2 years while cash flow growth has happened over the past 5 years.

Year	Item	Tot. Growth	Per Year
5	Revenue Growth	85.08%	13.10%
5	EPS Growth	625.00%	48.62%
5	Net Income Growth	629.62%	48.81%
5	Cash Flow Growth	3486.53%	104.61%
5	Dividend Growth	60.42%	9.91%
5	Stock Price Growth	119.65%	17.04%
10	Revenue Growth	116.98%	8.05%
10	EPS Growth	249.07%	13.32%
10	Net Income Growth	255.19%	13.51%
10	Cash Flow Growth	73.19%	5.65%
10	Dividend Growth	113.89%	7.90%
10	Stock Price Growth	145.67%	9.40%

The current dividend yield is low with dividend growth moderate. The current dividend yield is low (below 2%) at 1.18%. The 5, 10 and historical dividend yields are moderate (2% to 4% ranges) at 3.29%, 3.46% and 3.02%. The dividends are currently low because of the recent steep climb in the stock price. Dividends have grown at a moderate rate (8% to 14% ranges) at 9.9% per year over the past 5 years. I have 13 years of dividend information and of those years, dividends were increase in 8 years (or 62% of the time).

The Dividend Payout Ratios (DPR) are good. The DPR for Earnings per Share (EPS) for 2022 is 10% with 5 year coverage at 26%. The DPR for Cash Flow per Share (CFPS) for 2022 is 6% with 5 years at 10%. The DPR for Free Cash Flow (FCF) for 2022 is 14% with 5 year coverage at 24%.

Item	Cur	5 Years
EPS	10.21%	25.81%
CFPS	6.27%	10.48%
FCF	14.43%	24.20%

Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2022 is low and good at 0.03. The Liquidity Ratio is high and good at 1.96. The Debt Ratio is high and good at 2.41. The Leverage and Debt/Equity Ratios are low and good at 1.71 and 0.71.

Type	Ratio
Lg Term	0.03
Liquidity	1.96
Liq. + CF	2.23
Debt Ratio	2.41
Leverage	1.71
D/E Ratio	0.71

The Total Return per year is shown below for years of 5 to 21 to the end of 2022. 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.
2017	5	9.91%	19.55%	17.04%	2.50%
2012	10	7.90%	11.75%	9.40%	2.35%
2007	15	10.93%	2.74%	1.52%	1.22%
2002	20		25.13%	21.49%	3.64%
2001	21		18.60%	16.26%	2.34%

This stock is up 111% year to date. So, if we take this chart year to date, we find the following.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2018	5	9.91%	52.58%	49.47%	3.10%
2013	10	7.90%	21.79%	19.79%	2.00%
2008	15	10.93%	13.96%	12.47%	1.50%
2003	20		28.49%	25.40%	3.09%
2001	21		19.10%	17.61%	1.49%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 3.65, 5.35 and 7.06. The corresponding 10 year ratios are 8.13, 9.98 and 11.84. The corresponding historical ratios are 6.13, 7.83 and 9.49. The current P/E Ratio is 10.25 based on a stock price of $42.53 and EPS estimate for 2023 of $4.15. 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.

I get a Graham Price of $38.77. The 10-year low, median, and high median Price/Graham Price Ratios are 0.47, 0.62 and 0.78. The current P/GP Ratio is 1.10 based on a stock price of $42.53. 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. The P/GP Ratios are quite low and a ratio of 1.10 is generally considered at a good level.

I get a 10-year median Price/Book Value per Share Ratio of 0.81. The current P/B Ratio is 2.64 based on a stock price of $42.53, Book Value of $192M and a Book Value per Share of $16.09. The current ratio is 226% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. The 10 year median ratio is quite low, but the current one is quite high.

I get a 10-year median Price/Cash Flow per Share Ratio of 5.17. The current P/CF Ratio is 18.69 based on Cash Flow for the last 12 months of $27.08, Cash Flow per Share of 2.28 and a stock price of $42.53. The current ratio is 262% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I get an historical median dividend yield of 3.02%. The current dividend yield is 1.18% based on a stock price of $42.53 and dividends of $0.50. The current dividend yield is 61% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year median dividend yield of 3.25%. The current dividend yield is 1.18% based on a stock price of $42.53 and dividends of $0.50. The current dividend yield is 64% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively expensive.

The 10-year median Price/Sales (Revenue) Ratio is 0.30. The current P/S Ratio is 0.75 based on Revenue estimate for 2023 of $676M, Revenue per Share of $56.78 and a stock price of $42.53. The current ratio is 147% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

Results of stock price testing is that the stock price is relatively expensive. The Dividend Yield tests say this as does the P/S Ratio test. Most of the testing, except for the P/E Ratio test, is showing the stock price as expensive. This could not wholly be unexpected as the stock price has gone up year to date by 111%. However, see above paragraph on why the stock price might still be reasonable.

When I look at analysts’ recommendations, I find Strong Buy (3). The consensus would be a strong buy. The 12 months stock price consensus is $62.67. This implies a total return of 48.53% with 47.35% from capital gains and 1.18% from dividends based on a current stock price of $42.53. On TD WebBroker I found 2 Buys and target 12 month stock price of $77.21. This stock price implies a total return of 82.62% with 81.45% from capital gains and 1.18% from dividends based on a current stock price of $42.53.

Analysts on Stock Chase have lost interest in this stock as the last entries are in 2019. Stock Chase gives this stock 1 star out of 5. Aditya Raghunath on Motley Fool thinks that now is a great time to buy this stock. This is not well followed on Motley Fool Karen Thomas in 2013 on Motley Fool thought his company was a hidden gem. The company put out a press release on Newswire about their fourth quarter of 2022 results. The company put out a press release on Newswire about their first quarter of 2023.

Simply Wall Street via Yahoo Finance reviewed this stock in August 2022. Simply Wall Street gives this company 4 stars out of 5. It gives one warnings of high level of non-cash earnings.

Hammond Power Solutions Inc is engaged in designing and manufacturing of custom electrical magnetics, cast resin, custom liquid filled distribution and power transformers and standard electrical transformers, serving the electrical and electronic industries. The company has manufacturing plants in Canada, the United States, Mexico, and India. The company operates in various geographical markets including Canada, the United States, Mexico, and India in which it derives majority revenue in the United States and Mexico. Its web site is here Hammond Power Solutions 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 Mullen Group Ltd (TSX-MTL, OTC-MLLGF) ... learn more on Monday, May 22, 2023 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 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.

Ag Growth International

Sound bite for Twitter and StockTwits is: Dividend Paying Industrial. Results of stock price testing is that the stock price is probably cheap. Some Debt Ratios are fine, but the company has too much debt. The Dividend Payout Ratios (DPR) are currently fine. The current dividend yield is low with dividend growth negative. See my spreadsheet on Ag Growth International.

Is it a good company at a reasonable price? I still like this company. It would be nice if it began to raise their dividends again. That would be a very good sign. I plan to hold on to the shares I have and I am satisfied with my current investment in this stock. The stock price is probably cheap.

I own this stock of Ag Growth International (TSX-AFN, OTC-AGGZF). I wanted to review all the income trust stocks touted in the Money Show of 2009. There was a lot of talk at this show about some of the Unit Trust being currently good buys with very good yields. Its median yield in 2009 was 7.9%. It was on the Canadian Dividend Aristocrats and this is why I first investigated this company. Of course, now all the income trusts have changed to corporation because of changes in Canadian law. By 2011 when I bought this stock, I have been interested in AFN for some time. This stock is a play on the agricultural sector.

When I was updating my spreadsheet, I noticed I have had this stock for 11.5 years and I have made a total return of 9.73% per year with 4.69% from capital gains and 5.04% from dividends.

If you had invested in this company in December 2012, for $1,003.52 you would have bought 32 shares at $31.36 per share. In December 2022, after 10 years you would have received $609.60 in dividends. The stock would be worth $1,387.20. Your total return would have been $1,996.80.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$31.36	$1,003.52	32	10	$609.60	$1,387.20	$1,996.80

However, if you had invested in this company in December 2017, for $1,013.46 you would have bought 19 shares at $53.34 per share. In December 2022, after 5 years you would have received $133.95 in dividends. The stock would be worth $823.65. Your total return would have been $957.60.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$53.34	$1,013.46	19	5	$133.95	$823.65	$957.60

In terms of growth, Revenue and Adjusted Earnings per Share (AEPS) and Cash Flow are growing. In 2022 they had a Net Income loss (and EPS loss). Dividends and Stock prices are not growing or not growing much.

Year	Item	Tot. Growth	Per Year
5	Revenue Growth	93.20%	14.08%
5	AEPS Growth	59.15%	9.74%
5	Net Income Growth	0.00%	0.00%
5	Cash Flow Growth	127.06%	17.82%
5	Dividend Growth	-75.00%	-24.21%
5	Stock Price Growth	-18.73%	-4.06%
10	Revenue Growth	363.85%	16.58%
10	AEPS Growth	144.44%	9.35%
10	Net Income Growth	0.00%	0.00%
10	Cash Flow Growth	223.38%	12.45%
10	Dividend Growth	-75.00%	-12.94%
10	Stock Price Growth	38.23%	3.29%

This company started to cut their dividends in 2020 and since 2021, the dividends have been flat. This company used to be an income trust. All ex-Income Trust companies are having a hard time getting their dividends at the right level.

The current dividend yield is low with dividend growth negative. The current dividend yield is low (below 2%) at 1.14%. It was flat from 2011 and then the company started to decrease it in 2020. The problem is that this company used to be an income trust. Old income trust companies are having a hard time getting the dividend levels right. Dividends were cut some 75%. The problem is that income trust companies can pay much higher dividends than corporations.

The Dividend Payout Ratios (DPR) are currently fine. The DPR for Earnings per Share (EPS) for 2022 are negative. The DPR for Adjusted Earnings per Share (AEPS) is 16% with 5 year coverage at 19%. This is an important ratio. The DPR for Cash Flow per Share (CFPS) for 2022 is 7% with 5 year coverage at 29%. The DPR for Free Cash Flow (CFC) for 2022 is 23% with 5 year coverage at 240%.

Item	Cur	Years
EPS	-22.39%	-223.81%
AEPS	16.04%	19.49%
CFPS	6.53%	29.46%
FCF	22.72%	240.19%

Some Debt Ratios are fine, but the company has too much debt. The Long Term Debt/Market Cap Ratio for 2022 is good at 0.54. The Liquidity Ratio is high and good at 1.56. The Debt Ratio is fine at 1.19, but I prefer it to be at 1.50 or higher. The Leverage Debt/Equity Ratios are far too high at 6.20 and 5.20. I prefer them to be less than 3.00 and 2.00.

Type	Ratio
Lg Term	0.54
Liquidity	1.56
Liq. + CF	1.78
Debt Ratio	1.19
Leverage	6.20
D/E Ratio	5.20

The Total Return per year is shown below for years of 5 to 19 to the end of 2022. 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.
2017	5	-24.21%	-1.22%	-4.06%	2.84%
2012	10	-12.94%	9.04%	3.29%	5.75%
2007	15	-6.63%	7.57%	1.85%	5.72%
2003	19	-1.45%	19.62%	7.91%	11.71%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 28.62, 34.82 and 41.02. The corresponding 10 year ratios are 21.00, 28.45 and 34.25. The corresponding historical ratios are 14.34, 21.29 and 25.65. The current P/E Ratio is 12.79 based on a stock price of $52.58 and EPS estimate for 2023 of $4.11. This ratio is below the low ratio of the 10 year median ratio and the low ratio of the historical median ratios. This stock price testing suggests that the stock price is relatively cheap.

I also have Adjusted Earnings per Share Ratios. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 9.13, 12.46 and 15.79. The corresponding 10 year ratios are 12.60, 17.59 and 22.54. The current P/AEPS ratio is 11.87 based on a stock price of $52.58 and AEPS estimate for 2023 of $4.43. 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 Funds from Operations (FFO) data. The 5-year low, median, and high median Price/Funds from Operations Ratios are 4.18, 7.32 and 10.98. The corresponding 10 year ratios are 7.25, 9.58 and 11.59. The current P/FFO Ratio is 6.50 based on FFO for the last 12 months of $8.09 and a stock price of $52.58. 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 $37.25. The 10-year low, median, and high median Price/Graham Price Ratios are 1.02, 1.43 and 1.86. The current P/GP Ratio is 1.41 based on a stock price of $52.58. The current ratio 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 get a 10-year median Price/Book Value per Share Ratio of 2.60. The current P/B Ratio is 3.78 based on a stock price of $52.58, Book Value of $264M and Book Value per Share of $22.85. The current ratio is 45% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I also have an estimated Book Value per Share of $13.80. Because the analyst calculates the Book Value differently from me, using their method the 10 year median P/B Ratio is 2.52. The current BVPS of $13.80 implies a Book Value of $262M with a ratio of 3.81 and a stock price of $52.58. The current ratio of 3.81 is 51% above the 10 year median ratio of 2.52. This stock price testing suggests that the stock price is relatively expensive.

I get a 10-year median Price/Cash Flow per Share Ratio of 15.41. The current P/CF Ratio is 7.59 based on a Cash Flow per Share estimate of $6.93, Cash Flow of $131M and a stock price of $52.58. The current ratio is 51% 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 5.58%. The current dividend yield is 1.14% based on a stock price of $52.58 and dividends of $0.60. The current dividend yield is 80% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive. However, this testing works best when dividends are increasing and dividends on this stock have been cut by 75%.

I get a 10 year median dividend yield of 4.60%. The current dividend yield is 1.14% based on a stock price of $52.58 and dividends of $0.60. The current dividend yield is 75% below the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively expensive. However, this testing works best when dividends are increasing and dividends on this stock have been cut by 75%.

The 10-year median Price/Sales (Revenue) Ratio is 1.10. The current P/S Ratio is 0.62 based on Revenue estimate for 2023 of $1,613M, Revenue per Share of $85.11 and a stock price of $52.58. The current ratio is 44% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

Results of stock price testing is that the stock price is probably cheap. The dividend yields tests do not work when dividends are cut. The P/S Ratio says that the stock price is cheap. Most of the other testing, except for the P/B Ratio tests, shows the stock price to be cheap.

It is generally not a good thing for dividends to be cut. This generally points to management being negative about the future. However, this company started out as an income trust with high dividend yields, as all income trust had. A lot of the old income trust companies that are now corporations are having a hard time adjusting the dividends level to an appropriate one for them.

When I look at analysts’ recommendations, I find Strong Buy (2) and Buy (8). The consensus would be a Strong Buy. The 12 month stock price consensus is $72.40. This implies a total return of 38.84% with 37.69% from capital gains and 1.14% from dividends based on a current stock price of $52.58.

Some analysts on Stock Chase like this stock and others think it has reached a peak and so will decline. Stock Chase gives this stock 4 stars out of 5. It is not on the Money Sense List of top 100 dividend stocks. Christopher Liew on Motley Fool thinks this small cap has massive potential. Aditya Raghunath on Motley Fool thinks that this stock cheap with potential. The company put out a press release on Business Newswire about their 2022 results. The company put out a Press Release on their first quarter of 2023 results.

Simply Wall Street on Yahoo Finance talks about who owns shares in this company. Simply Wall Street put out 2 warnings on this stock of interest payments are not well covered by earnings; and significant insider selling over the past 3 months. The chairman has increased his shares by 21% over the past year. The other officers or directors I follow have made no changes. Simply Wall Street gives this stock 3 stars out of 5.

Ag Growth International Inc manufactures portable and stationary grain handling, storage, and conditioning equipment, including augers, belt conveyors, grain storage bins, grain handling accessories, grain aeration equipment, and grain drying systems. It has manufacturing facilities in Canada, the United States, Italy, Brazil, France, United Kingdom, and India. Its geographical segments are Canada, United States, and the International. Its web site is here Ag Growth International.

The last stock I wrote about was about was Power Corp of Canada (TSX-POW, OTC-PWCDF) ... learn more. The next stock I will write about will be Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF) ... learn more on Friday, May 19, 2023 around 5 pm. I am on a 2 day holiday tomorrow.

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