Pareto Corp

I was requested to do a report and put up the spreadsheet for Sun Life, a stock I own. I will do this shortly. Before I do that, I would like to review a dividend paying small cap stock (TSX-PTO) I have just found out about and for which I have done a spreadsheet.

Except for growth in stock price, this stock’s growth in all the other growth figures I track has been very good indeed. However, with some of these figures, I do not have growth figures for the 10 year period. Also, for the dividend growth, I only have figures for one year’s growth. They only started to pay dividends in 2008. When they first started the dividend, its yield was 10%. It has moved steadily down since then and is now at 8%.

The Liquidity Ratio is a little low at 1.05 and it has moved up to 1.07 for the March 2009 quarterly financials. The ratio shows that there are enough current assets to cover current liabilities. However, it is usually desirable that this ratio be at least at 1.50. The Asset/Debt ratio is much better 2.48 for the end of 2008 and at 2.68 for the financials of March 2009.

The next thing I looked at was the Return on Equity (ROE). This has had some ups and downs, but at the end of 2008 at 13%, it is not bad. The last thing to mention, and the only thing I find of concern, is the Accrual Ratio and this is very high. This ratio has been quite high for most of the life of this company.

Tomorrow, I will look at what analysts say about this company. I know there is one or two who follow this company.

Pareto is a Canadian marketing services and execution company committed to helping clients sell more. We service Canada’s most successful businesses through our network of services; Retail Merchandising, In-Retail Messaging, Direct Marketing, and Incentives. Its web site is www.pareto.ca. See my spreadsheet at www.spbrunner.com/stocks/pto.htm.

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 www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.