Wednesday, October 15, 2008

Toromont Industries Ltd

This stock (TSX-TIH) is on the Dividend Achievers at and the Dividend Aristocrats lists and also on Mike Higgs’ list at It is a stock that I notice has been recommending lately. It is hard to know what to buy in such volatile markets, so I am featuring ones who have recently been recommended in this tough market.

I first bought this stock for my RRSP account in December 2007. According to Quicken, I have made an annual return of -8% so far on this stock. This is a bear market we are in at present so this is not surprising. This stock has raised their dividends for this year in January 2008. They have a good dividend record and this is continuing in this tough market. Their Graham Price has gone up to $21.59, and their price is now $23.94. So these prices are getting closer.

The P/E ratio on this stock has come down to 12.4, which is quite low. What people expect for the EPS for 2008 has not changed, which is a good sign. The Asset/Book Value ratio has been coming down and is now at 2.007, which is good. Unfortunately, the Return on Equity (ROE) has also come down for this quarterly report to 15.5% from 18.7%. The Accrual Ratio is negative, which is great, and the Asset/Liability Ratio is still high at almost 2. All in all, this stock is holding up quite well.

This company has two sections. The Equipment Group is for their Caterpillar dealerships. The Compression Group, designs, engineers, fabricates, installs and services natural gas compression units; and hydrocarbon and petrochemical process compression systems; and industrial and recreational refrigeration compression systems. They do business in Canada only. Its web site is See my spreadsheet at I have reloaded my spreadsheet to include the June 2008 quarterly report, which is the half way mark for this stock that reports in December each year.

I have updated it with the figures from the June 08 quarterly report.
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. See my website at for a list of the stocks for which I have put up spreadsheets on my web site.

No comments:

Post a Comment