Alliance Grain Traders Inc

I do not own this stock (TSX-AGT). I started following this stock a few years ago as it seemed like a promising stock. It was touted in the Money Show I attended in 2009.

Their dividend yield is currently good at 2.9%, however, stocks are currently depressed and the most likely dividend yield in the future for this company would be between 2 to 2.5%. So it will probably pay a decent dividend. They kept the dividend level in the change to a corporation in 2009. However, this year, they raised the dividend 11% and this is a healthy increase.

The Dividend Payout Ratios are generally good. The 5 year median for earnings is 56% and for cash flow is 26%. The DPR for earnings is expected to be lower at 34% for 2011. The earnings dipped for in 2010. This company had a loss for the first quarter of this year, but again earned money in the 2nd quarter. Earnings estimates have not changed.

Growth rates are good on this stock and most are in the 30% per year range. However, this growth will probably moderate in the future. For example, the growth in revenues per share is up 32% per year over the past 5 years. Earnings are up 38% per year over the past 5 years.

The total return over the past 5 years is like 50% per year with some 6% per year accountable from dividend payments. This will also moderate over the next few years. The dividend rate is much lower currently at 2.9% and when we pull out of the current bear market will go lower. It has been expected that companies that go from income trust to corporations will have lower dividend yields.

Cash Flow is up by some 37% per year over the past 5 years and the book value is up by 33% per year over the past 5 years. For the 6 months ending 60 June 2011 the book value has dropped 4%. They changed the accounting rules to the new IFRS rules. They also have not made much in earnings for the first 6 months of this year.

Shares outstanding have increased tremendously since this company went public in 2005 (112% median per year). However, for the first 6 months of this year, shares have increases at .1% only. Most of the increases have been because of the issuance of more shares.

In regards to debt ratios, the current Liquidity Ratio is fine at 1.52. However, this ratio has often been lower and has a 5 year median ratio of just 1.39. The Asset/Liability Ratio has always been good and is currently at 2.02. The 5 year median ratio is 1.98. The Leverage Ratio and the Debt/Equity Ratio are both fine. The Leverage Ratio is currently at 1.98, with a 5 year median of 2.09. The Debt/Equity Ratio is fine at 0.98, with a 5 year median of 1.09. The company does not have much debt.

I will look to see what analysts say about his stock on Monday. I will also see what my spreadsheet says about the current stock price.

Alliance Grain Traders Inc. through its subsidiaries, Alliance Pulse Processors Inc. ("Alliance") and Arbel Group ("Arbel"), is engaged in the business of sourcing and processing (cleaning, splitting, sorting and bagging) specialty crops, primarily for export markets. Alliance and its subsidiaries in Canada, U.S., Australia and Turkey handle the full range of pulses and specialty crops including lentils, peas, chickpeas, beans and canary seed through six processing plants. The company recent bought the Arbel Group of Mersin, Turkey. Its web site is here Alliance Grain Traders. See my spreadsheet at agt.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.