Dorel Industries Inc

I am reviewing this stock (TSX-DII.B) today as I have updated my spreadsheet with the December 2008 annual report and I have not reviewed it since then. Today, I also updated the spreadsheet with the 3rd quarterly report for September 2009. I owned this stock at one time and then sold it because I did not think it was going anywhere, and they paid no dividends. In 2007, they started to pay dividends. I would like to see some consistent annual increases in dividends before I consider this stock for buying again.

In looking at growth figures, this stock shows mixed results. One problem is that it reports in US dollars, but it is a Canadian stock sold in Canadian Dollars. The increases in revenue and book value are good. The cash flow growth is not great. The cash flow was low in 2008, but it is expected to recover in 2009 and 2010. Stock price growth is not good and the stock price is still only just above that of 2001. The dividend growth is uncertain and it would appear to be paid in US$, so even if they do not change the dividends payable, these could fluctuate in Canadian dollars.

Until the most recent report, the Liquidity Ratio was good. In the most recent report, this ratio fell to 1.18, which is rather low, but at least it is still over 1.00. The Asset/Liability Ratio is still very good at 2.19. What I like to see is both these ratios being at 1.50 or higher.

One good thing when I reviewed this stock today is that the Accrual Ratio has turned negative. This is much better than the very high Accrual Ratio this stock had at the end of 2008. Tomorrow, I will see what the analysts are saying. One thing I did notice when I updated my spreadsheet today is that the expected earnings and cash flow has increased since I last looked at this stock.

Dorel Industries Inc. is a world class juvenile products and bicycle company. Dorel’s branded products include Safety 1st, Quinny, Cosco, Maxi-Cosi and Bébé Confort in Juvenile, as well as Cannondale, Schwinn, GT, Mongoose and SUGOI in Recreational/Leisure. Dorel’s Home Furnishings segment markets a wide assortment of furniture products, both domestically produced and imported. Dorel has facilities in seventeen countries, and sales worldwide. Ownership: Schwartz family 66%, Segel family 17%. Its web site is www.dorel.com. See my spreadsheet at www.spbrunner.com/stocks/dii.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. Also, look at other investing notes on my website at www.spbrunner.com/investing.html.