I have had this stock (TSX-IBG) on my list to investigate for sometime. What finally prompted me set up a spreadsheet on this stock was an investment report I read in March. I know it does take me a while sometimes to get to things.
When I looked at the Insider Trading Report, I find that there has been some minor buying by some directors since the beginning of the year. The report only covers this year as this stock has converted from an Partnership arrangement (TSX-IBG.UN) to a corporation (TSX-IBG). It would appear that in the last 2 months institutional holders, who currently hold some 20% of the share of this company, sold almost 5% of the shares of this company over the last 3 months.
The problem I have with figuring out this company is that between the insiders’ holdings and institutional holders, there is far more than 100% of the shares accounted for. This means that I do not understand how this company is set. However, I do have the correct number of shares showing in my spreadsheet. There appears to be, since the beginning of the year, anywhere between 111K and 8K shares being trading on a daily basis. So, there is no trouble in trading volumes for people who want to buy or sell this stock.
When I look at the 5 year median Price/Earnings Ratios, I get a low P/E of 7 and a high P/E of 14, with a median P/E of 10. So the current P/E of 12.6 is a bit towards the high side. I get a 10 year median Price/Book Value Ratio of 1.32 and a current P/B Ratio of 1.34. This would also put the current stock price towards the high side.
I get a Graham Price of $16.61. This Graham Price is some 13% above the current stock price. The Median difference between the Graham Price and stock price is a negative 15%. The median high difference between the Graham Price and the stock Price is 9.5%. This puts the current stock price above the median price, but below the median high price.
The last thing to look at is the dividend yield. The current yield is 7.7% and the 5 year median yield is 10.3%. This shows a high current stock price. However, they did reduce the dividends by 30% in 2011. The Payout Ratio for earnings is expected to be around 97% this year and around 75% for next year. The Payout Ratio for cash flow, if they earn the same as last year, would be around 50% this year. So, Payout ratios are getting better.
When I look for analysts recommendations, I find Strong Buy, Buy and Hold. The consensus would be a Hold as there are a lot of them. (See my site for information on analyst ratings.) A number of analysts said this was an infrastructure play. One said he preferred Aecon Group (TSX-ARE) and SNC Lavalin (TSX-SNC) to this company. Some analysts remarked that the first quarter was a bit disappointing, but they feel that the company will do well in the long term.
This looks like an interesting company. I will continue to track it. The stock’s earnings for the 1st quarter were lower than expected. (Full financial statements are not yet available.) However, even analysts giving a hold recommendation on this stock give the 12 month stock price in the $15 to $16.50 price range, which would be a good return for this stock from the current price.
The Company through IBI Group provides professional services, including planning, design, implementation, analysis of operations and other consulting services in relation to four main areas of development, being urban land, building facilities, transportation networks and systems technology. Its web site is here IBI Group. See my spreadsheet at ibg.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 for stocks followed and investment notes. Follow me on twitter.
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