I will be on holidays next week, so I will not be posting again until July 2nd, 2013.
On my other blog I am today writing about Dividend Paying Tech stocks...continue...
I do not own this stock Pulse Seismic Inc. (TSX-PSD, OTC- PLSDF). I got this stock through a Stock Filter. I asked for companies that were worth between $1 and $5.50 a share and had a yield between 4% and 20. I narrowed the list to 5. I was looking for filler stocks for my TFSA and this was one of 5 companies that I got and looked into. This is not a stock I chose, but I found it of interest so I am following it.
Dividends have been inconsistent on this stock. They had trouble in the 2008 bear market and cancelled dividends. They restarted dividends in 2011, but they are still below what was paid in 2008. Dividends are generally good when paid. Dividend Payout Ratios for cash flow tends to be quite low and is expected to be around 10% in 2013.
The 2012 financial year was good for this company, but they are not expected to make much in 2013 and some analysts feel that the earnings in 2013 will again be negative. If you look at last 12 months earnings ending in March 2013, the 1st Quarter of 2013, they are down by 34% from last year.
Total returns are good for the last 10 years but not so much for the last 5 years. The total return for the last 5 and 10 years is at 2.39% and 13.73% per year, with the dividend portion of this return at 2.24% and 5.04% per year, respectively and the capital gain portion at 0.15% and 8.71% per year, respectively.
The current Liquidity Ratio is good at 1.85. This ratio tends to vary a lot. The Debt Ratio is more consistent and the current Ratio is also good at 2.90. The current Leverage and Debt/Equity Ratios are also good at 1.53 and 0.53, respectively.
Looking at a number of measures to see how good the stock price is, all seem to point to a current high stock price. The 10 year P/B Ratio is 1.36 and the current one at 2.32 is 70% higher. The current Graham price is at $1.47 and the Price/Graham Price Ratio is at 2.52 when the 10 year high P/GP Ratio is much lower at 1.80. The Price/Cash Flow per Share Ratios and Price/Sales Ratios also point to a current high price.
When I look at insider trading, I find $1.9M of insider selling and $1.7M of net insider selling. There is a small amount of insider buying. Insiders have option like vehicles called Rights LTIP, Rights Performance Share Unit and Rights Restricted Share Unit. Insiders lately seem to be exercising the rights and getting shares recently.
When I look at analysts' recommendations, I find Strong Buy and Hold recommendations. The consensus recommendation would be a Buy. (See my site for information on analyst ratings and how consensus recommendations are determined.) The 12 months stock price consensus is $3.33, which is some 10% below today's price.
In a video, Pulse Seismic President and CEO Neal Coleman talks about his company's ability to generate significant cash from its seismic data library.
The current price seems to be high, but a large part of that is due to the fact that estimates for earnings in 2013 are low. Earnings seem to fluctuate due to the amortization of seismic data library. However, the company still can make money off library items collected a very long time ago. On the other hand the stock price is the highest it has ever been.
A number of insiders own shares worth in the few $100,000 range. A director owns almost 15% of the company and his shares are worth around $33M. An investment company owns another 10% of the outstanding shares.
The current price seems a bit high, but there is no doubt this is an interesting company that can make money from selling their library data to over and over again. See my spreadsheet at psd.htm.
Pulse Data Inc. is a provider of 2D and 3D seismic library data and is based in Calgary, Alberta. Pulse owns the second-largest licensable seismic data library in western Canada. Pulse's 2D and 3D seismic data library extends over the Western Canada Sedimentary Basin, plus selected areas of the U.S. Rocky Mountains region and northern Canada, with a particular focus on active exploration areas. Its web site is here Pulse Seismic.
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 or StockTwits.
Friday, June 21, 2013
Thursday, June 20, 2013
Inter Pipeline Fund
I do not own this stock Inter Pipeline Fund (TSX-IPL, OTC- IPPLF). A friend had asked me about this pipeline and I had no information on it, so I investigated it. It is a utility and I follow and have lots of utility stocks. Because I follow too many stocks to do two blogs entries per stock, I have to have only one entry on some. This would include this stock this year.
Since this stock was an income trust, it pays dividends each month. The dividend rate is good, with a current dividend yield of 4.92%. There is dividend growth and it has been running at 4.6% and 4.4% per year over the past 5 and 10 years. The last dividend increase was in 2013 and it was for 2.7%.
The 5 year median Dividend Payout Ratio is at 99% for Earnings and 68% for Cash Flow. It is expected that the DPR for earnings will be around 135% for 2013 and 103% for 2014, before falling below 100% in 2015. (These are just estimates and do not forget estimates are often wrong.) My analysis basically says that the company cannot afford the dividends it is paying.
Another problem I see with this company is the Liquidity Ratio. It is very low because it includes current portion of long term debt and commercial paper. The commercial paper portion is most of the debt I have subtracted from current debt to raise the Liquidity Ratio. Without the commercial paper the ratio only rises to 0.76. This ratio only rises to only to 1.01 for the financial year ending in 2012 if we consider cash flow less dividends.
If you look at the current Liquidity Ratio (for the 1st quarter of 2013), the numbers get worse. The current Liquidity Ratio is just 0.12. After talking off the commercial paper and looking at cash flow after dividends, the Ratio is only 0.71.
When the Liquidity Ratio is less than 1.00, it means that current assets cannot cover current liability. The problem with such low Liquidity Ratios as this company has is that problems can come up quickly and they would not have any breathing room to sort out debt. With the commercial paper it is turn over annually and there is always the possibility it will not be.
I know that most utilities count on cash flow to help with current expenses. However, I feel that this company could all of a sudden find itself in a very vulnerable position, debt wise. This is not good.
I must say that shareholders have done well with this stock over the past 5 and 10 years, with the total return being at 26.79% and 22.39%. The dividend portion of this return was 6.98% and 8.11% per year over the past 5 and 10 years. The capital gain portion of this return was 19.88% and 14.25% per year over the past 5 and 10 years.
The 5 year low median and high median Price/Earnings Ratios are 11.82, 14.30 and 16.78. The current P/E is 28.28 based on a stock price of $23.19 and a 2013 earnings estimate of $0.82. (Earnings estimates were changed downward because the company missed the Q1 2013 earnings estimate) Also earnings over last 12 months to Q1 2013 are down 4.4% from last year.
I get a current Graham Price of $10.64. The 10 year low, median and high Price/Graham Price Ratios are 1.05, 1.17 and 1.32. The current P/GP Ratio is 2.18. I think for that for a utility you should be buying at a price that gives a P/GP at or close to 1.00. The current one is way over the historical ones.
The 10 year Price/Book Value per Share Ratio is 1.88. The current P/B Ratio is 3.78 a value 100% higher. A test on the current dividend yield to the 5 year one will not give us anything as the dividend yield has been coming down because of income trust companies converting to corporations.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. Since almost all the recommendations are a Buy, the consensus recommendation would be a Buy. The 12 month stock price consensus is $26.60. This implies a 19.62% return, with 4.92% from dividends and 14.9% from capital gains.
This company intends to convert to a corporation later this year. Some analysts view this in a positive light. With this change they are buying out their General Partner and will no longer need to pay fees to this general partner. Others see this buyout as being very expensive and are unimpressed. See an article on this Calgary Herald. Some analysts mention the good yield. Others think that buying a pipeline company is a good idea. I really do not like the very weak balance sheet this company has. I think that his stock is way overpriced. See my spreadsheet at ipl.htm.
Inter Pipeline is a major petroleum transportation, natural gas liquids extraction, and bulk liquid storage business based in Calgary, Alberta, Canada. Structured as a publicly traded limited partnership, Inter Pipeline owns and operates energy infrastructure assets in western Canada, the United Kingdom, Germany and Ireland. The company is a limited partnership, not an income trust. Its web site is here Inter Pipeline.
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 or StockTwits.
Since this stock was an income trust, it pays dividends each month. The dividend rate is good, with a current dividend yield of 4.92%. There is dividend growth and it has been running at 4.6% and 4.4% per year over the past 5 and 10 years. The last dividend increase was in 2013 and it was for 2.7%.
The 5 year median Dividend Payout Ratio is at 99% for Earnings and 68% for Cash Flow. It is expected that the DPR for earnings will be around 135% for 2013 and 103% for 2014, before falling below 100% in 2015. (These are just estimates and do not forget estimates are often wrong.) My analysis basically says that the company cannot afford the dividends it is paying.
Another problem I see with this company is the Liquidity Ratio. It is very low because it includes current portion of long term debt and commercial paper. The commercial paper portion is most of the debt I have subtracted from current debt to raise the Liquidity Ratio. Without the commercial paper the ratio only rises to 0.76. This ratio only rises to only to 1.01 for the financial year ending in 2012 if we consider cash flow less dividends.
If you look at the current Liquidity Ratio (for the 1st quarter of 2013), the numbers get worse. The current Liquidity Ratio is just 0.12. After talking off the commercial paper and looking at cash flow after dividends, the Ratio is only 0.71.
When the Liquidity Ratio is less than 1.00, it means that current assets cannot cover current liability. The problem with such low Liquidity Ratios as this company has is that problems can come up quickly and they would not have any breathing room to sort out debt. With the commercial paper it is turn over annually and there is always the possibility it will not be.
I know that most utilities count on cash flow to help with current expenses. However, I feel that this company could all of a sudden find itself in a very vulnerable position, debt wise. This is not good.
I must say that shareholders have done well with this stock over the past 5 and 10 years, with the total return being at 26.79% and 22.39%. The dividend portion of this return was 6.98% and 8.11% per year over the past 5 and 10 years. The capital gain portion of this return was 19.88% and 14.25% per year over the past 5 and 10 years.
The 5 year low median and high median Price/Earnings Ratios are 11.82, 14.30 and 16.78. The current P/E is 28.28 based on a stock price of $23.19 and a 2013 earnings estimate of $0.82. (Earnings estimates were changed downward because the company missed the Q1 2013 earnings estimate) Also earnings over last 12 months to Q1 2013 are down 4.4% from last year.
I get a current Graham Price of $10.64. The 10 year low, median and high Price/Graham Price Ratios are 1.05, 1.17 and 1.32. The current P/GP Ratio is 2.18. I think for that for a utility you should be buying at a price that gives a P/GP at or close to 1.00. The current one is way over the historical ones.
The 10 year Price/Book Value per Share Ratio is 1.88. The current P/B Ratio is 3.78 a value 100% higher. A test on the current dividend yield to the 5 year one will not give us anything as the dividend yield has been coming down because of income trust companies converting to corporations.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. Since almost all the recommendations are a Buy, the consensus recommendation would be a Buy. The 12 month stock price consensus is $26.60. This implies a 19.62% return, with 4.92% from dividends and 14.9% from capital gains.
This company intends to convert to a corporation later this year. Some analysts view this in a positive light. With this change they are buying out their General Partner and will no longer need to pay fees to this general partner. Others see this buyout as being very expensive and are unimpressed. See an article on this Calgary Herald. Some analysts mention the good yield. Others think that buying a pipeline company is a good idea. I really do not like the very weak balance sheet this company has. I think that his stock is way overpriced. See my spreadsheet at ipl.htm.
Inter Pipeline is a major petroleum transportation, natural gas liquids extraction, and bulk liquid storage business based in Calgary, Alberta, Canada. Structured as a publicly traded limited partnership, Inter Pipeline owns and operates energy infrastructure assets in western Canada, the United Kingdom, Germany and Ireland. The company is a limited partnership, not an income trust. Its web site is here Inter Pipeline.
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 or StockTwits.
Wednesday, June 19, 2013
Lassonde Industries 2
On my other blog I am today writing about Investment Woes...continue...
I do not own this stock of Lassonde Industries (TSX- LAS.A, OTC- LSDAF). I started to follow this stock in February 2010 because of a favorable report I read about this stock in the Advice Hotline emails from MPL Communications. Their site is here where you can subscribe to this email.
When I look at insider trading I find no insider selling and no insider buying. There are two classes of shares. Class A shares, which are sold on the stock exchange, are single voting shares. Class B shares are multiple voting shares. Pierre-Paul Lassonde owns 100% of the Class B shares. If valued at the same price as Class A shares, they would be worth around $322M.
There seems to be no stock options. Other insider own some Class A shares, but not very much of these shares. The main insider owner is Pierre-Paul Lassonde.
The 5 year low, median and high median Price/Earnings per Share Ratios are 10.06, 11.13 and 12.34. The current P/E Ratio is 12.98, based on a stock price of $85.70 and a 2013 earnings estimate of $6.60. The current Graham Price is $82.00. The 10 year low, median and high median Price/Graham Price Ratios are 0.83, 0.93 and 1.05. The current P/GP Ratio is 1.05. Both these measure put the stock price just north of the reasonable range.
The 10 year median Price/Book Value per Share Ratio is 1.79. The current P/B Ratio is 1.87. The current ratio is just 6% higher than the P/B Ratio. The 5 year median dividend yield is 1.95%. The current dividend yield is at 1.82%, a value just 6.5% higher. Both these test place the stock price within the reasonable range and just a bit higher than the median.
Since the P/B Ratios and Dividend Yield test do not use estimates like the P/E Ratio and the P/GP Ratio, they often are considered more reliable. These tests suggest that the stock price is just above the median level and would be considered reasonable.
I can only find one report on this stock, dated May 8, 2013 from MPL Communications which says that "Lassonde remains a buy for long-term share price gains and increasing dividends". It also appears the stock price is reasonable. This is a dividend growth company and that is good. It is also a family owned company. Family owned companies often have solid balance sheets as this one does.
However, it is small, so it is more risky than other consumer staple stocks. See my spreadsheet at las.htm.
This is the second of two parts. The first part was posted on Tuesday, June 18th, 2013 and is available here.
Lassonde Industries Inc. is a leading manufacturer of pure fruit juices and fruit drinks in Canada, and the largest manufacturer and distributor of apple juice in Eastern Canada. Through its subsidiaries, Lassonde is active in the processing, packaging and marketing of food products such as pure fruit juices, fruit and citrus drinks, the canning of corn on the cob for foreign markets as well as dipping sauces, fondue bouillon, meat marinades, barbecue sauces and baked beans. The Company also markets its know-how in Canada and abroad. Its web site is here Lassonde.
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 or StockTwits.
I do not own this stock of Lassonde Industries (TSX- LAS.A, OTC- LSDAF). I started to follow this stock in February 2010 because of a favorable report I read about this stock in the Advice Hotline emails from MPL Communications. Their site is here where you can subscribe to this email.
When I look at insider trading I find no insider selling and no insider buying. There are two classes of shares. Class A shares, which are sold on the stock exchange, are single voting shares. Class B shares are multiple voting shares. Pierre-Paul Lassonde owns 100% of the Class B shares. If valued at the same price as Class A shares, they would be worth around $322M.
There seems to be no stock options. Other insider own some Class A shares, but not very much of these shares. The main insider owner is Pierre-Paul Lassonde.
The 5 year low, median and high median Price/Earnings per Share Ratios are 10.06, 11.13 and 12.34. The current P/E Ratio is 12.98, based on a stock price of $85.70 and a 2013 earnings estimate of $6.60. The current Graham Price is $82.00. The 10 year low, median and high median Price/Graham Price Ratios are 0.83, 0.93 and 1.05. The current P/GP Ratio is 1.05. Both these measure put the stock price just north of the reasonable range.
The 10 year median Price/Book Value per Share Ratio is 1.79. The current P/B Ratio is 1.87. The current ratio is just 6% higher than the P/B Ratio. The 5 year median dividend yield is 1.95%. The current dividend yield is at 1.82%, a value just 6.5% higher. Both these test place the stock price within the reasonable range and just a bit higher than the median.
Since the P/B Ratios and Dividend Yield test do not use estimates like the P/E Ratio and the P/GP Ratio, they often are considered more reliable. These tests suggest that the stock price is just above the median level and would be considered reasonable.
I can only find one report on this stock, dated May 8, 2013 from MPL Communications which says that "Lassonde remains a buy for long-term share price gains and increasing dividends". It also appears the stock price is reasonable. This is a dividend growth company and that is good. It is also a family owned company. Family owned companies often have solid balance sheets as this one does.
However, it is small, so it is more risky than other consumer staple stocks. See my spreadsheet at las.htm.
This is the second of two parts. The first part was posted on Tuesday, June 18th, 2013 and is available here.
Lassonde Industries Inc. is a leading manufacturer of pure fruit juices and fruit drinks in Canada, and the largest manufacturer and distributor of apple juice in Eastern Canada. Through its subsidiaries, Lassonde is active in the processing, packaging and marketing of food products such as pure fruit juices, fruit and citrus drinks, the canning of corn on the cob for foreign markets as well as dipping sauces, fondue bouillon, meat marinades, barbecue sauces and baked beans. The Company also markets its know-how in Canada and abroad. Its web site is here Lassonde.
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 or StockTwits.
Tuesday, June 18, 2013
Lassonde Industries
I do not own this stock of Lassonde Industries (TSX- LAS.A, OTC- LSDAF). I started to follow this stock in February 2010 because of a favorable report I read about this stock in the Advice Hotline emails from MPL Communications. Their site is here.
This company started to pay dividends in 1991 and began to raise them on a regular basis in 2001. Except for 2007, when dividends were decreased about 11%, the dividends have been raised each year. (The dividends in 2008 were higher than in 2006.) The 5 and 10 year growth in dividends is at 15% and 14% per year.
The Dividend Payout Ratios are good for this stock. The 5 year median DPR for earnings is 22% and the DPR for cash flow is 13%. The current dividend has a yield of 1.8%. The last dividend increase occurred in 2013 and it was for 25.8%.
The 5 and 10 years total returns on this stock are at 15.23% and 18.72% per year, respectively. The dividend portion of this return is 2.04% and 2.23% per year over the past 5 and 10 years. The capital gain portion of this return is at 13.18% and 16.49% per year over the past 5 and 10 years.
The outstanding shares have increased minimally over the past 5 and 10 years with increases of less than 1% per year. The company has issued stocks and it has also done some share buy backs. Growth has been quite good for revenue, earnings, cash flow and book value.
Revenue growth has been at 20% and 16% per year over the past 5 and 10 years. The Revenue per Share growth has been at 19% and 16% per year over the past 5 and 10 years. Earnings growth is at 12.5% and 13.5% per year over the past 5 and 10 years. Cash Flow has grown at 13% and 14% per year over the past 5 and 10 years.
The Return on Equity has been quite good with the ROE for the financial year ending in 2012 at 14.6% and the 5 year median ROE at 15.4%. The ROE for Comprehensive Income varies from the ROE on net income and the ROE for 2012 was lower at 12.2% and this has a 5 year median ROE at 14.5%.
The current Liquidity Ratio is very good at 2.38. The current Debt Ratio is also quite good at 1.67. This is typical of small companies with large insider ownership. The current Leverage and Debt/Equity Ratios are fine at 2.49 and 1.49.
This is a small company with a good dividend record. However, since it is small this makes this stock more risky than other dividend paying stocks that would be considered a consumer staple stock. On the other hand, this company has been around for a while and has shown it can make money for its shareholders. See my spreadsheet at las.htm.
This is the first of two parts. Second part will be posted on Wednesday June 19, 2013 and will be here. I will look at how good the current stock price is.
Lassonde Industries Inc. is a leading manufacturer of pure fruit juices and fruit drinks in Canada, and the largest manufacturer and distributor of apple juice in Eastern Canada. Through its subsidiaries, Lassonde is active in the processing, packaging and marketing of food products such as pure fruit juices, fruit and citrus drinks, the canning of corn on the cob for foreign markets as well as dipping sauces, fondue bouillon, meat marinades, barbecue sauces and baked beans. The Company also markets its know-how in Canada and abroad. Its web site is here Lassonde.
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 or StockTwits.
This company started to pay dividends in 1991 and began to raise them on a regular basis in 2001. Except for 2007, when dividends were decreased about 11%, the dividends have been raised each year. (The dividends in 2008 were higher than in 2006.) The 5 and 10 year growth in dividends is at 15% and 14% per year.
The Dividend Payout Ratios are good for this stock. The 5 year median DPR for earnings is 22% and the DPR for cash flow is 13%. The current dividend has a yield of 1.8%. The last dividend increase occurred in 2013 and it was for 25.8%.
The 5 and 10 years total returns on this stock are at 15.23% and 18.72% per year, respectively. The dividend portion of this return is 2.04% and 2.23% per year over the past 5 and 10 years. The capital gain portion of this return is at 13.18% and 16.49% per year over the past 5 and 10 years.
The outstanding shares have increased minimally over the past 5 and 10 years with increases of less than 1% per year. The company has issued stocks and it has also done some share buy backs. Growth has been quite good for revenue, earnings, cash flow and book value.
Revenue growth has been at 20% and 16% per year over the past 5 and 10 years. The Revenue per Share growth has been at 19% and 16% per year over the past 5 and 10 years. Earnings growth is at 12.5% and 13.5% per year over the past 5 and 10 years. Cash Flow has grown at 13% and 14% per year over the past 5 and 10 years.
The Return on Equity has been quite good with the ROE for the financial year ending in 2012 at 14.6% and the 5 year median ROE at 15.4%. The ROE for Comprehensive Income varies from the ROE on net income and the ROE for 2012 was lower at 12.2% and this has a 5 year median ROE at 14.5%.
The current Liquidity Ratio is very good at 2.38. The current Debt Ratio is also quite good at 1.67. This is typical of small companies with large insider ownership. The current Leverage and Debt/Equity Ratios are fine at 2.49 and 1.49.
This is a small company with a good dividend record. However, since it is small this makes this stock more risky than other dividend paying stocks that would be considered a consumer staple stock. On the other hand, this company has been around for a while and has shown it can make money for its shareholders. See my spreadsheet at las.htm.
This is the first of two parts. Second part will be posted on Wednesday June 19, 2013 and will be here. I will look at how good the current stock price is.
Lassonde Industries Inc. is a leading manufacturer of pure fruit juices and fruit drinks in Canada, and the largest manufacturer and distributor of apple juice in Eastern Canada. Through its subsidiaries, Lassonde is active in the processing, packaging and marketing of food products such as pure fruit juices, fruit and citrus drinks, the canning of corn on the cob for foreign markets as well as dipping sauces, fondue bouillon, meat marinades, barbecue sauces and baked beans. The Company also markets its know-how in Canada and abroad. Its web site is here Lassonde.
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 or StockTwits.
Monday, June 17, 2013
Saputo Inc 2
On my other blog I am today writing about surviving the current Secular Bear Market...continue...
I own this stock of Saputo Inc. (TSX-SAP, OTC- SAPIF). I first bought this stock in 2006 and then some more in 2007. However, it was in an RRSP account and since I am taking money out of my RRSPs each year I sold some of this stock in 2012 and 2013. The reason I sold this stock was that it had the lowest dividend yield of stocks in my RRSP Accounts. However, I do like this company and hope to buy some for the trading account at some point.
When I look at insider trading, I find $15.4M of insider selling and $14.7M of net insider selling. There is some insider buying of $0.7M. Insiders have options and other options type vehicles called Performance Share Units and Deferred Share Units.
There is lots of insider ownership, with directors of Emanuele Saputo owning shares worth approximately $3.4B and 34% of outstanding shares and Pierre Bourgie owning approximately $44.7M and owning 0.48% of the outstanding shares. This company is worth over $9B. The notable stock options holdings are for the CFO with options worth $11.5M and an officer with options worth $18.M.
The 5 year low, median and high median Price/Earnings Ratios are 14.44, 18.01 and 21.43. These are moderate to a bit on the high side because this is a growth company. The current P/E Ratio at 15 does show that the stock price is relatively reasonable. This P/E is based on a stock price of $47.10 and 2013 earnings estimates of $3.14.
I get a current Graham Price of $28.78. The 10 year low, median and high Price/Graham Price Ratios are 1.20, 1.50 and 1.70. The current P/GP Ratio is 1.64 and this makes the stock price a relatively reasonable one. This is a growth company, so you are unlikely to see a P/GP Ratio near 1.00.
The 10 year Price/Book Value per Share Ratio is 3.07. The current P/B Ratio is 4.02 a value some 30% higher and this would suggest a relatively high stock price. (However, the current P/B Ratio is almost the same and the 5 year median ratio of 3.99.)
The current dividend yield is 1.78% and the 5 year dividend yield is 2.2% higher at 1.82%. What you want is the current dividend yield to be less than the 5 year dividend yield. However, they are close and this suggests a relatively reasonable stock price.
The stock price is relatively reasonable and this is generally all you can hope for in buying stocks. This stock has been rated down with the Annual Report dated March 31, 2013 because the company did not have earnings meeting the earnings estimates for the March 31, 2013 financial year nor for the 4th quarter.
When I look at analysts' recommendations I find Buy and Hold recommendations. There are more Buy recommendations than Hold recommendations and the consensus recommendation would be a Buy. The 12 month consensus stock price would be $52.20. This would imply a 12.61% total return with 10.83% from capital gains and 1.78% from dividends.
The Proactive Investor's site talks about Saputo missing earnings estimate for the financial year ending in March 31, 2013. The site of Ticker Reporter talks about some recent stock downgrades for Saputo. The site Celebrity Networth talks about Lino Saputo, the man who started and still runs Saputo. And, iPolitics talks about Saputo missing fourth quarter estimates.
This is a growth company and the P/E of 15 is reasonable. However, this company is growing by acquisitions (or consolidation in the dairy business). At some point all growth companies stop being growth companies and become mature companies and ratios, like P/E Ratios go lower. However, the current P/E ratio is not that high and it would probably be a while before this company transitions to a mature company. See my spreadsheet at sap.htm.
This is the second of two parts. The first part was posted on Friday, June 14th and is available here.
Saputo produces, markets, and distributes a wide array of products of the utmost quality, including cheese, fluid milk, yogurt, dairy ingredients and snack-cakes. Saputo is the twelfth largest dairy processor in the world, the largest in Canada, the third largest in Argentina and among the top three cheese producers in the United States. Our products are sold in more than 50 countries under well-known brand names. Its web site is here Saputo.
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 or StockTwits.
I own this stock of Saputo Inc. (TSX-SAP, OTC- SAPIF). I first bought this stock in 2006 and then some more in 2007. However, it was in an RRSP account and since I am taking money out of my RRSPs each year I sold some of this stock in 2012 and 2013. The reason I sold this stock was that it had the lowest dividend yield of stocks in my RRSP Accounts. However, I do like this company and hope to buy some for the trading account at some point.
When I look at insider trading, I find $15.4M of insider selling and $14.7M of net insider selling. There is some insider buying of $0.7M. Insiders have options and other options type vehicles called Performance Share Units and Deferred Share Units.
There is lots of insider ownership, with directors of Emanuele Saputo owning shares worth approximately $3.4B and 34% of outstanding shares and Pierre Bourgie owning approximately $44.7M and owning 0.48% of the outstanding shares. This company is worth over $9B. The notable stock options holdings are for the CFO with options worth $11.5M and an officer with options worth $18.M.
The 5 year low, median and high median Price/Earnings Ratios are 14.44, 18.01 and 21.43. These are moderate to a bit on the high side because this is a growth company. The current P/E Ratio at 15 does show that the stock price is relatively reasonable. This P/E is based on a stock price of $47.10 and 2013 earnings estimates of $3.14.
I get a current Graham Price of $28.78. The 10 year low, median and high Price/Graham Price Ratios are 1.20, 1.50 and 1.70. The current P/GP Ratio is 1.64 and this makes the stock price a relatively reasonable one. This is a growth company, so you are unlikely to see a P/GP Ratio near 1.00.
The 10 year Price/Book Value per Share Ratio is 3.07. The current P/B Ratio is 4.02 a value some 30% higher and this would suggest a relatively high stock price. (However, the current P/B Ratio is almost the same and the 5 year median ratio of 3.99.)
The current dividend yield is 1.78% and the 5 year dividend yield is 2.2% higher at 1.82%. What you want is the current dividend yield to be less than the 5 year dividend yield. However, they are close and this suggests a relatively reasonable stock price.
The stock price is relatively reasonable and this is generally all you can hope for in buying stocks. This stock has been rated down with the Annual Report dated March 31, 2013 because the company did not have earnings meeting the earnings estimates for the March 31, 2013 financial year nor for the 4th quarter.
When I look at analysts' recommendations I find Buy and Hold recommendations. There are more Buy recommendations than Hold recommendations and the consensus recommendation would be a Buy. The 12 month consensus stock price would be $52.20. This would imply a 12.61% total return with 10.83% from capital gains and 1.78% from dividends.
The Proactive Investor's site talks about Saputo missing earnings estimate for the financial year ending in March 31, 2013. The site of Ticker Reporter talks about some recent stock downgrades for Saputo. The site Celebrity Networth talks about Lino Saputo, the man who started and still runs Saputo. And, iPolitics talks about Saputo missing fourth quarter estimates.
This is a growth company and the P/E of 15 is reasonable. However, this company is growing by acquisitions (or consolidation in the dairy business). At some point all growth companies stop being growth companies and become mature companies and ratios, like P/E Ratios go lower. However, the current P/E ratio is not that high and it would probably be a while before this company transitions to a mature company. See my spreadsheet at sap.htm.
This is the second of two parts. The first part was posted on Friday, June 14th and is available here.
Saputo produces, markets, and distributes a wide array of products of the utmost quality, including cheese, fluid milk, yogurt, dairy ingredients and snack-cakes. Saputo is the twelfth largest dairy processor in the world, the largest in Canada, the third largest in Argentina and among the top three cheese producers in the United States. Our products are sold in more than 50 countries under well-known brand names. Its web site is here Saputo.
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 or StockTwits.
Friday, June 14, 2013
Saputo Inc
On my other blog I am today writing about the concept of a Risk Free investments...continue...
I own this stock of Saputo Inc. (TSX-SAP, OTC- SAPIF). I first bought this stock in 2006 and then some more in 2007. However, it was in an RRSP account and since I am taking money out of my RRSPs each year I sold some of this stock in 2012 and 2013. The reason I sold this stock was that it had the lowest dividend yield of stocks in my RRSP Accounts. However, I do like this company and hope to buy some for the trading account at some point.
I have made a total return of 18.11% per year with 5.51% from dividends and 12.60% from capital gains. My dividends look high, but that is because I have sold off a substantial amount of my shares. The total return on this stock over the past 5 and 10 years is at 15.10% and 18.58% per year. The portion attributable to dividends is 1.84% and 2.13%. The portion attributable to capital gains is 13.23% and 16.25% per year. Dividends make of some 12% of the return.
This is a dividend growth stock, but like all stocks the growth in dividends has been slowing. The 5 and 10 year growth in dividends are at 13% and 26% per year, respectively. The last dividend increase was in 2012 and it was for 10.5%.
The Dividend Payout Ratios are good with the 5 year median DPR for earnings at 35% and for cash flow at 24%. The current dividend is just 1.8%. For the stock that I purchased, the dividend yield on my original purchases is at 3.8% and 4.2% after 5 and 6 years. The value of buying dividend growth stocks is the increasing dividends you will receive over time.
The outstanding shares have decreased marginally over the past 5 and 10 years at the rate of 0.9% and 0.5% per year, respectively. Shares have increased due to stock options and share issues and decreased due to share buy backs.
Revenues have grown at the rate of 7.6/% and 8% per year over the past 5 and 10 years. Revenues per Share have grown at the rate of 8.6% and 8.5% per year over the past 5 and 10 years. Earnings have grown at the rate of 11.8% and 11.3% per year over the past 5 and 10 years. Cash Flow per Share has grown at the rate of 11.6% and 10.5% per year over the past 5 and 10 years. This is all good growth.
The Return on Equity is generally quite good under this company with the ROE for the financial year ending in March 2013 at 20.9%. The 5 year median ROE is 18.9%. The ROE for comprehensive income is slightly better for 2013 at 21.3%. The 5 year median ROE for comprehensive income is slightly lower at 18.6%.
The current Liquidity Ratio is just 1.23. If you added back in the current portion of the long term debt you get a more normal Liquidity Ratio for this stock at 1.41. The 5 and 10 year median Liquidity Ratios for this stock is 1.35 and 1.55. The Debt Ratio is 1.80 and this is also lower than normal for this this stock.
The company has gone into debt with their most recent purchase of Morningstar. See the announcement of this purchase here. Generally, companies either use cash on hand, debt or issuance of stock to fund acquisitions. Since interest rates are currently rather low, debt is not a bad way of financing acquisitions.
The current Leverage and Debt/Equity Ratios are higher than normal, but fine at 2.25 and 1.25. The 5 year median Leverage and Debt/Equity Ratios are lower at 1.70 and 0.70. This is also due to the recent debt increase to buy Morningstar.
This is a dividend growth stock and you would buy it for rising dividends and for capital gains. See my spreadsheet at sap.htm.
This is the first of two parts. Second part will be posted on Monday, June 17th and will be here.
Saputo produces, markets, and distributes a wide array of products of the utmost quality, including cheese, fluid milk, yogurt, dairy ingredients and snack-cakes. Saputo is the twelfth largest dairy processor in the world, the largest in Canada, the third largest in Argentina and among the top three cheese producers in the United States. Our products are sold in more than 50 countries under well-known brand names. Its web site is here Saputo.
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 or StockTwits.
I own this stock of Saputo Inc. (TSX-SAP, OTC- SAPIF). I first bought this stock in 2006 and then some more in 2007. However, it was in an RRSP account and since I am taking money out of my RRSPs each year I sold some of this stock in 2012 and 2013. The reason I sold this stock was that it had the lowest dividend yield of stocks in my RRSP Accounts. However, I do like this company and hope to buy some for the trading account at some point.
I have made a total return of 18.11% per year with 5.51% from dividends and 12.60% from capital gains. My dividends look high, but that is because I have sold off a substantial amount of my shares. The total return on this stock over the past 5 and 10 years is at 15.10% and 18.58% per year. The portion attributable to dividends is 1.84% and 2.13%. The portion attributable to capital gains is 13.23% and 16.25% per year. Dividends make of some 12% of the return.
This is a dividend growth stock, but like all stocks the growth in dividends has been slowing. The 5 and 10 year growth in dividends are at 13% and 26% per year, respectively. The last dividend increase was in 2012 and it was for 10.5%.
The Dividend Payout Ratios are good with the 5 year median DPR for earnings at 35% and for cash flow at 24%. The current dividend is just 1.8%. For the stock that I purchased, the dividend yield on my original purchases is at 3.8% and 4.2% after 5 and 6 years. The value of buying dividend growth stocks is the increasing dividends you will receive over time.
The outstanding shares have decreased marginally over the past 5 and 10 years at the rate of 0.9% and 0.5% per year, respectively. Shares have increased due to stock options and share issues and decreased due to share buy backs.
Revenues have grown at the rate of 7.6/% and 8% per year over the past 5 and 10 years. Revenues per Share have grown at the rate of 8.6% and 8.5% per year over the past 5 and 10 years. Earnings have grown at the rate of 11.8% and 11.3% per year over the past 5 and 10 years. Cash Flow per Share has grown at the rate of 11.6% and 10.5% per year over the past 5 and 10 years. This is all good growth.
The Return on Equity is generally quite good under this company with the ROE for the financial year ending in March 2013 at 20.9%. The 5 year median ROE is 18.9%. The ROE for comprehensive income is slightly better for 2013 at 21.3%. The 5 year median ROE for comprehensive income is slightly lower at 18.6%.
The current Liquidity Ratio is just 1.23. If you added back in the current portion of the long term debt you get a more normal Liquidity Ratio for this stock at 1.41. The 5 and 10 year median Liquidity Ratios for this stock is 1.35 and 1.55. The Debt Ratio is 1.80 and this is also lower than normal for this this stock.
The company has gone into debt with their most recent purchase of Morningstar. See the announcement of this purchase here. Generally, companies either use cash on hand, debt or issuance of stock to fund acquisitions. Since interest rates are currently rather low, debt is not a bad way of financing acquisitions.
The current Leverage and Debt/Equity Ratios are higher than normal, but fine at 2.25 and 1.25. The 5 year median Leverage and Debt/Equity Ratios are lower at 1.70 and 0.70. This is also due to the recent debt increase to buy Morningstar.
This is a dividend growth stock and you would buy it for rising dividends and for capital gains. See my spreadsheet at sap.htm.
This is the first of two parts. Second part will be posted on Monday, June 17th and will be here.
Saputo produces, markets, and distributes a wide array of products of the utmost quality, including cheese, fluid milk, yogurt, dairy ingredients and snack-cakes. Saputo is the twelfth largest dairy processor in the world, the largest in Canada, the third largest in Argentina and among the top three cheese producers in the United States. Our products are sold in more than 50 countries under well-known brand names. Its web site is here Saputo.
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 or StockTwits.
Thursday, June 13, 2013
Computer Modelling Group Ltd 2
I own this stock of Computer Modelling Group Ltd. (TSX-CMG, OTC- CMDXF). I bought this tech stock in 2008 and 2009. It had almost doubled in price by 2011, so I sold half of what I owned to lock in some profit.
When I look at insider trading I find some 13.6M of insider selling and $13.5M of net insider selling. There is a small bit of insider buying. Selling is by CEO, CFO, officers and directors. Buying is by officers and directors. Some of the selling is options, but other are share on the open market.
The CEO has shares worth $26.3M and has options are worth $5.3M. The CFO has shares worth $2.8M and has options are worth $3.2M. An officer has shares worth $1M and has options are worth $1.7M. A Director have some shares and has options are worth $0.3M. This is just to give you an idea on insider share ownership and option values.
The 5 year low, median and high median Price/Earnings Ratios are 21.31, 22.26 and 26.87. The current P/E Ratio is 30.50 based on a stock price of $23.18 and 2014 earnings of $0.76. (This stock has a financial year ending in March each year.) This test shows that the stock price is relatively rather high. A P/E of 30 is rather an high P/E Ratios, but fast growing companies often have quite high P/E Ratios.
I get a Graham Price of $4.80. The 10 year low, median and high median Price/Graham Price Ratios are 1.42, 1.92 and 2.37. The current P/GP Ratio is 4.83. This also shows that the stock price is relatively rather high. A P/GP Ratio is 4.83 is also rather high on an absolute basis.
The 10 year Price/Book Value per Share Ratio is 6.64 and the current P/B Ratio is 17.19, a value some 160% higher. The P/B Ratio has been climbing in recent years and the 5 year P/B Ratio is 12.87. Still the current P/B Ratio is some 34% higher than the 5 year P/B Ratio. This test says that the stock price is relatively high. Also a P/B Ratio of 17.19 is rather high on an absolute basis.
The current Dividend yield is 3.11% and the 5 year median is 3.63%, a value some 15% higher. If you include the special dividend (and this company generally declares a special dividend every year) the dividend yield becomes 3.32% a value only 8.6% lower than the 5 year average. You want the current dividend yield to be higher than the 5 year median for a good price, but the current dividend yield is not that far off the median. This test puts the stock price more in the reasonable category than the high category. (Note that the company has declared a dividend increase of 12.5% and a special dividend.)
So it really comes down to the fact that on a number of measures, the stock price is relatively high and it only comes inter a reasonable range looking at dividend yield. This is a growth company and you can expect ratios to be on the high side.
When I look at analysts’ recommendations, I find Strong Buy, Buy and Hold. The consensus recommendation would be a Buy. Most of the recommendations are a buy. The 12 month consensus stock price is $25.70. This implies a 12 month total return of 13.63%, with 10.87% from capital gains and 2.67% from dividends.
Because this is a tech stock, CanTech has commented on it on their site. An analysts in October 2012 thought it was overpriced then at $20. He is not the only analysts to think that the stock is overpriced. However, there are analysts who believe that this company will continue to grow strongly so they consider it a buy.
By the way, there is also a recent article in CanTech about 11 other Canadian Tec stocks besides CMG that pay dividends.
Since I have already made money on this stock having sold some to lock in a profit, I feel comfortable holding on to what I have. I think that this stock has some ways to go up yet, but since this is June, it may not happen immediately. When buying any sort of fast growing stock, you really need to keep an eye on it as things can change rapidly in the stock market, especially to fast growing stocks. See my spreadsheet at cmg.htm.
This is the second of two parts. The first part was posted on Wednesday, June 12, 2013 and is available here.
Computer Modelling Group Ltd. is a computer software technology and consulting company serving the oil and gas industry. CMG is the leading supplier of advanced processes reservoir modelling software in the world with a blue chip client base of international oil companies and technology centers in approximately 50 countries. Its web site is here Computer Modelling.
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 or StockTwits.
When I look at insider trading I find some 13.6M of insider selling and $13.5M of net insider selling. There is a small bit of insider buying. Selling is by CEO, CFO, officers and directors. Buying is by officers and directors. Some of the selling is options, but other are share on the open market.
The CEO has shares worth $26.3M and has options are worth $5.3M. The CFO has shares worth $2.8M and has options are worth $3.2M. An officer has shares worth $1M and has options are worth $1.7M. A Director have some shares and has options are worth $0.3M. This is just to give you an idea on insider share ownership and option values.
The 5 year low, median and high median Price/Earnings Ratios are 21.31, 22.26 and 26.87. The current P/E Ratio is 30.50 based on a stock price of $23.18 and 2014 earnings of $0.76. (This stock has a financial year ending in March each year.) This test shows that the stock price is relatively rather high. A P/E of 30 is rather an high P/E Ratios, but fast growing companies often have quite high P/E Ratios.
I get a Graham Price of $4.80. The 10 year low, median and high median Price/Graham Price Ratios are 1.42, 1.92 and 2.37. The current P/GP Ratio is 4.83. This also shows that the stock price is relatively rather high. A P/GP Ratio is 4.83 is also rather high on an absolute basis.
The 10 year Price/Book Value per Share Ratio is 6.64 and the current P/B Ratio is 17.19, a value some 160% higher. The P/B Ratio has been climbing in recent years and the 5 year P/B Ratio is 12.87. Still the current P/B Ratio is some 34% higher than the 5 year P/B Ratio. This test says that the stock price is relatively high. Also a P/B Ratio of 17.19 is rather high on an absolute basis.
The current Dividend yield is 3.11% and the 5 year median is 3.63%, a value some 15% higher. If you include the special dividend (and this company generally declares a special dividend every year) the dividend yield becomes 3.32% a value only 8.6% lower than the 5 year average. You want the current dividend yield to be higher than the 5 year median for a good price, but the current dividend yield is not that far off the median. This test puts the stock price more in the reasonable category than the high category. (Note that the company has declared a dividend increase of 12.5% and a special dividend.)
So it really comes down to the fact that on a number of measures, the stock price is relatively high and it only comes inter a reasonable range looking at dividend yield. This is a growth company and you can expect ratios to be on the high side.
When I look at analysts’ recommendations, I find Strong Buy, Buy and Hold. The consensus recommendation would be a Buy. Most of the recommendations are a buy. The 12 month consensus stock price is $25.70. This implies a 12 month total return of 13.63%, with 10.87% from capital gains and 2.67% from dividends.
Because this is a tech stock, CanTech has commented on it on their site. An analysts in October 2012 thought it was overpriced then at $20. He is not the only analysts to think that the stock is overpriced. However, there are analysts who believe that this company will continue to grow strongly so they consider it a buy.
By the way, there is also a recent article in CanTech about 11 other Canadian Tec stocks besides CMG that pay dividends.
Since I have already made money on this stock having sold some to lock in a profit, I feel comfortable holding on to what I have. I think that this stock has some ways to go up yet, but since this is June, it may not happen immediately. When buying any sort of fast growing stock, you really need to keep an eye on it as things can change rapidly in the stock market, especially to fast growing stocks. See my spreadsheet at cmg.htm.
This is the second of two parts. The first part was posted on Wednesday, June 12, 2013 and is available here.
Computer Modelling Group Ltd. is a computer software technology and consulting company serving the oil and gas industry. CMG is the leading supplier of advanced processes reservoir modelling software in the world with a blue chip client base of international oil companies and technology centers in approximately 50 countries. Its web site is here Computer Modelling.
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 or StockTwits.
Wednesday, June 12, 2013
Computer Modelling Group Ltd
On my other blog I am today writing about Banks, Energy and Utilities...continue...
I own this stock of Computer Modelling Group Ltd. (TSX-CMG, OTC- CMDXF). I bought this tech stock in 2008 and 2009. It had almost doubled in price by 2011, so I sold half of what I owned to lock in some profit. This stock has a financial reporting date of March 31 each year.
I have had a 40.61% total return per year on this stock. I got 6.15% per year from dividends and 34.46% per year from capital gains. The reason my dividend return is higher than the dividend yield on this stock is because of the rapidly increasing dividends.
The 5 and 10 year total return on this stock is 47.69% and 54.97% per year. The dividend portion of this return is 6.8% and 7.7% per year, respectively. Capital gains are 40.88% and 45.38% per year, respectively.
Dividend growth over the past 5 and 8 years run at 31.54% and 41.42% per year. The most recent dividend increases was in 2012 and it was for 23%. The 5 year median Dividend Payout Ratios are at 101% for earnings and 78% for cash flow. They are basically paying out in dividends all that they are earning. They pay out both special dividends and regular dividends.
Outstanding shares have increased by 2.5% and 2.6% per year over the past 5 and 10 years. Shares have increased due to Stock Options and have decreased due to Buy Backs. Growth has been very good over the past 5 and 10 years with Revenue up by 20% per year over these periods and Revenue per Share up by 17% per year over these periods.
Earnings per Share growth is at 24% and 23% per year over the past 5 and 10 years. Cash Flow per share is up by 23% and 24% per year over the past 5 and 10 years.
The Return on Equity is at 48.3% for the financial year ending in March 31, 2013. The comprehensive income is the same as the net income and therefore its ROE is also 48.3%.
The current Liquidity Ratio is great at 2.64 and the current Debt Ratio is great at 2.61. The current Leverage and Debt/Equity Ratios are quite low and therefore quite good at 1.62 and 0.62.
What is not to like about this stock? However, please note that fast growth tech stocks and this is basically what this one is, are risky. This is why I locked in some profit when the stock has doubled. See my spreadsheet at cmg.htm.
This is the first of two parts. Second part will be posted on Thursday, June 13, 2013 and will be here.
Computer Modelling Group Ltd. is a computer software technology and consulting company serving the oil and gas industry. CMG is the leading supplier of advanced processes reservoir modelling software in the world with a blue chip client base of international oil companies and technology centers in approximately 50 countries. Its web site is here Computer Modelling.
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 or StockTwits.
I own this stock of Computer Modelling Group Ltd. (TSX-CMG, OTC- CMDXF). I bought this tech stock in 2008 and 2009. It had almost doubled in price by 2011, so I sold half of what I owned to lock in some profit. This stock has a financial reporting date of March 31 each year.
I have had a 40.61% total return per year on this stock. I got 6.15% per year from dividends and 34.46% per year from capital gains. The reason my dividend return is higher than the dividend yield on this stock is because of the rapidly increasing dividends.
The 5 and 10 year total return on this stock is 47.69% and 54.97% per year. The dividend portion of this return is 6.8% and 7.7% per year, respectively. Capital gains are 40.88% and 45.38% per year, respectively.
Dividend growth over the past 5 and 8 years run at 31.54% and 41.42% per year. The most recent dividend increases was in 2012 and it was for 23%. The 5 year median Dividend Payout Ratios are at 101% for earnings and 78% for cash flow. They are basically paying out in dividends all that they are earning. They pay out both special dividends and regular dividends.
Outstanding shares have increased by 2.5% and 2.6% per year over the past 5 and 10 years. Shares have increased due to Stock Options and have decreased due to Buy Backs. Growth has been very good over the past 5 and 10 years with Revenue up by 20% per year over these periods and Revenue per Share up by 17% per year over these periods.
Earnings per Share growth is at 24% and 23% per year over the past 5 and 10 years. Cash Flow per share is up by 23% and 24% per year over the past 5 and 10 years.
The Return on Equity is at 48.3% for the financial year ending in March 31, 2013. The comprehensive income is the same as the net income and therefore its ROE is also 48.3%.
The current Liquidity Ratio is great at 2.64 and the current Debt Ratio is great at 2.61. The current Leverage and Debt/Equity Ratios are quite low and therefore quite good at 1.62 and 0.62.
What is not to like about this stock? However, please note that fast growth tech stocks and this is basically what this one is, are risky. This is why I locked in some profit when the stock has doubled. See my spreadsheet at cmg.htm.
This is the first of two parts. Second part will be posted on Thursday, June 13, 2013 and will be here.
Computer Modelling Group Ltd. is a computer software technology and consulting company serving the oil and gas industry. CMG is the leading supplier of advanced processes reservoir modelling software in the world with a blue chip client base of international oil companies and technology centers in approximately 50 countries. Its web site is here Computer Modelling.
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 or StockTwits.
Tuesday, June 11, 2013
McCoy Corp 2
I own this stock of McCoy Corp (TSX-MCB, OTC- MCCRF). In 2011, I decided to try out McCoy Corp shares. They had just restored their dividend. I want to use it as a fuller stock in my TFSA account. For me a fuller stock is one that uses up bits of extra money in an account.
When I look at the insider trading report I find a small amount of insider buying and some insider selling. Insider selling is at $0.6M and net insider selling is at $0.6M. The CEO has shares worth $1.9M and has options are worth $1.9M. The CFO has some shares and some options. An officer has shares worth $0.3M and has options are worth $0.M. Directors have some shares and some options. This is just to give you an idea on insider share ownership and option values.
The 5 year low, median and high median Price/Earnings per Share Ratios are 6.02, 8.11 and 10.18. The current P/E Ratio is 10.17 based on 2013 earnings estimates for 2013 of $0.47 and stock price of $4.78. However, all the median P/E Ratios for this stock are rather low as is the current P/E of 10.17
I get a Graham Price of $5.59. The 10 year low, median and high median Price/Graham Price Ratios are 0.47, 0.86 and 1.33. The current P/GP Ratio is 0.85. This shows that the stock price is reasonable. Also, a stock price is considered generally cheap if the P/GP Ratio is 1.00 or below.
The 10 year median Price/Book Value Ratio is 1.35 and the current P/B Ratio is 1.62. The current P/B ratio is some 20% higher than the 10 year median and this shows that the stock price is getting, relatively high.
The current dividend yield is 4.18% and the 5 year median dividend yield, excluding 2010, is 3.33%. Current dividend yield is 26% higher than the 5 year median. This suggests a good stock price. However, it is hard to really judge the stock price based on the dividend yield. The median dividend yield for 2012 was higher at 4.8%. On the other hand, a dividend yield of 4.18% is a good yield.
There is, surprisingly 4 analysts following this stock. These analysts generally feel that 2013 will be a better year than 2012. However, revenue, earnings and cash flow were all level or down for the 1st quarter of 2013.
The analysts' recommendations on this stock are Strong Buy and Buy. The consensus would be a Buy as most of the recommendations are a Buy. The 12 month consensus stock price is $6.00. This implies a total return of 29.7%, with 25.52% from capital gains and 4.18% from dividends.
The site iPolitics talks about the 4th quarter of 2012 having a decline in profitability, although the, if you consider the complete year of 2012, the results were better.
This stock is servicing the oil and gas industry, and this sector is not doing especially well at the present time. This is an interesting company for investment and it has a good dividend. It is risky and it is hard to judge the current stock price, but it certainly is not cheap. See my spreadsheet at mcb.htm.
This is the second of two parts. The first part was posted on Monday, June 10th, 2013 and is available here.
McCoy provides innovative products and services to the global energy industry. McCoy's two segments, Energy Products & Services and Mobile Solutions, operate internationally through direct sales and distributors with its operations based out of the Western Canadian Sedimentary Basin and the US Gulf Coast. McCoy's corporate office is located in Edmonton, Alberta, Canada with offices in Alberta, British Columbia, Louisiana, and Texas. They are growing internationally. Its web site is here McCoy.
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 or StockTwits.
When I look at the insider trading report I find a small amount of insider buying and some insider selling. Insider selling is at $0.6M and net insider selling is at $0.6M. The CEO has shares worth $1.9M and has options are worth $1.9M. The CFO has some shares and some options. An officer has shares worth $0.3M and has options are worth $0.M. Directors have some shares and some options. This is just to give you an idea on insider share ownership and option values.
The 5 year low, median and high median Price/Earnings per Share Ratios are 6.02, 8.11 and 10.18. The current P/E Ratio is 10.17 based on 2013 earnings estimates for 2013 of $0.47 and stock price of $4.78. However, all the median P/E Ratios for this stock are rather low as is the current P/E of 10.17
I get a Graham Price of $5.59. The 10 year low, median and high median Price/Graham Price Ratios are 0.47, 0.86 and 1.33. The current P/GP Ratio is 0.85. This shows that the stock price is reasonable. Also, a stock price is considered generally cheap if the P/GP Ratio is 1.00 or below.
The 10 year median Price/Book Value Ratio is 1.35 and the current P/B Ratio is 1.62. The current P/B ratio is some 20% higher than the 10 year median and this shows that the stock price is getting, relatively high.
The current dividend yield is 4.18% and the 5 year median dividend yield, excluding 2010, is 3.33%. Current dividend yield is 26% higher than the 5 year median. This suggests a good stock price. However, it is hard to really judge the stock price based on the dividend yield. The median dividend yield for 2012 was higher at 4.8%. On the other hand, a dividend yield of 4.18% is a good yield.
There is, surprisingly 4 analysts following this stock. These analysts generally feel that 2013 will be a better year than 2012. However, revenue, earnings and cash flow were all level or down for the 1st quarter of 2013.
The analysts' recommendations on this stock are Strong Buy and Buy. The consensus would be a Buy as most of the recommendations are a Buy. The 12 month consensus stock price is $6.00. This implies a total return of 29.7%, with 25.52% from capital gains and 4.18% from dividends.
The site iPolitics talks about the 4th quarter of 2012 having a decline in profitability, although the, if you consider the complete year of 2012, the results were better.
This stock is servicing the oil and gas industry, and this sector is not doing especially well at the present time. This is an interesting company for investment and it has a good dividend. It is risky and it is hard to judge the current stock price, but it certainly is not cheap. See my spreadsheet at mcb.htm.
This is the second of two parts. The first part was posted on Monday, June 10th, 2013 and is available here.
McCoy provides innovative products and services to the global energy industry. McCoy's two segments, Energy Products & Services and Mobile Solutions, operate internationally through direct sales and distributors with its operations based out of the Western Canadian Sedimentary Basin and the US Gulf Coast. McCoy's corporate office is located in Edmonton, Alberta, Canada with offices in Alberta, British Columbia, Louisiana, and Texas. They are growing internationally. Its web site is here McCoy.
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 or StockTwits.
Monday, June 10, 2013
McCoy Corp
On my other blog I am today writing about Capitalism haters' lack of understanding...continue...
I own this stock of McCoy Corp (TSX-MCB, OTC- MCCRF). In 2011, I decided to try out McCoy Corp shares. They had just restored their dividend. I want to use it as a fuller stock in my TFSA account. For me a fuller stock is one that uses up bits of extra money in an account.
I have made a total return of 7.73% per year on this stock with 4.12% from capital gains and 3.61% from dividends. This company currently has a good dividend yield of 4.2% and they occasionally also give out special dividends. However, when they had problems after the 2008 bear market and recession, they first cut the dividend and then eliminated it.
Currently, the Dividend Payout Ratios for earnings is around 40% and for cash flow around 30%. These are fine ratios. Dividend growth over the past 5 years is at 15% per year. The most recent increase was for 2012 at 67%. The dividends currently being paid are some 67% higher than the last dividends paid in 2008 before the dividend cut.
This stock has 5 and 10 year total returns of 10.11% and 38.37% per year, respectively. The dividend portion of this return is 2.36% and 5.06% per year and the capital gains portion is 7.75% and 33.3% per year, respectively.
Outstanding shares have decreased by 0.8% per year over the past 5 years. Outstanding shares have increased by 4.3% per year over the past 10 years. Shares have increased due to stock options and share issues. They have decreased due to share buy backs. Generally speaking, 10 year growth for this company is better than the 5 year growth. This company was seriously hurt in the last recession.
Revenues are up by 2.2% and 21% per year over the past 5 and 10 years. Revenue per Share is up by 3.1% and 15.8% per year over the past 5 and 10 years. Earnings are up by 4.1% and 27% per year over the past 5 and 10 years. Cash Flow per Share is up by 4.1% and 23% per year over the past 5 and 10 years.
Over the past 10 years they have had 2 years negative earnings, in 2008 and 2009. Prior to 10 years ago, the last year of negative earnings was 2002. They started to pay dividends only in 2004.
The Return on Equity has generally been good and over 10%. However, negative earnings will give you negative ROEs, so the 5 year median ROE is just 8.5%. However, the ROE for 2012 was 15.2%. The ROE on comprehensive income varies from the ROE on net income. The ROE on comprehensive income was lower for 2012 at 14.3%.
The Liquidity Ratio has always been very good and the current Ratio is 2.92. The 5 year median Liquidity Ratio is 2.64. This ratio used to be much lower, around 1.30 prior to 2007. The Debt Ratio is also very good at 3.13. The current Leverage and Debt/Equity Ratio are also very good at 1.47 and 0.47.
This company is rather risky. It is small and it provides services to the energy business. It is also considered to be a tech stock for some analysts as it provides technologies to the energy business. I do not expect that this company will do very well again until the oil and gas industries revive, but I am happy with what it will add to the performance in my TFSA. See my spreadsheet at mcb.htm.
This is the first of two parts. Second part will be posted on Tuesday, June 11, 2013 and will be here.
McCoy provides innovative products and services to the global energy industry. McCoy's two segments, Energy Products & Services and Mobile Solutions, operate internationally through direct sales and distributors with its operations based out of the Western Canadian Sedimentary Basin and the US Gulf Coast. McCoy's corporate office is located in Edmonton, Alberta, Canada with offices in Alberta, British Columbia, Louisiana, and Texas. They are growing internationally. Its web site is here McCoy.
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 or StockTwits.
I own this stock of McCoy Corp (TSX-MCB, OTC- MCCRF). In 2011, I decided to try out McCoy Corp shares. They had just restored their dividend. I want to use it as a fuller stock in my TFSA account. For me a fuller stock is one that uses up bits of extra money in an account.
I have made a total return of 7.73% per year on this stock with 4.12% from capital gains and 3.61% from dividends. This company currently has a good dividend yield of 4.2% and they occasionally also give out special dividends. However, when they had problems after the 2008 bear market and recession, they first cut the dividend and then eliminated it.
Currently, the Dividend Payout Ratios for earnings is around 40% and for cash flow around 30%. These are fine ratios. Dividend growth over the past 5 years is at 15% per year. The most recent increase was for 2012 at 67%. The dividends currently being paid are some 67% higher than the last dividends paid in 2008 before the dividend cut.
This stock has 5 and 10 year total returns of 10.11% and 38.37% per year, respectively. The dividend portion of this return is 2.36% and 5.06% per year and the capital gains portion is 7.75% and 33.3% per year, respectively.
Outstanding shares have decreased by 0.8% per year over the past 5 years. Outstanding shares have increased by 4.3% per year over the past 10 years. Shares have increased due to stock options and share issues. They have decreased due to share buy backs. Generally speaking, 10 year growth for this company is better than the 5 year growth. This company was seriously hurt in the last recession.
Revenues are up by 2.2% and 21% per year over the past 5 and 10 years. Revenue per Share is up by 3.1% and 15.8% per year over the past 5 and 10 years. Earnings are up by 4.1% and 27% per year over the past 5 and 10 years. Cash Flow per Share is up by 4.1% and 23% per year over the past 5 and 10 years.
Over the past 10 years they have had 2 years negative earnings, in 2008 and 2009. Prior to 10 years ago, the last year of negative earnings was 2002. They started to pay dividends only in 2004.
The Return on Equity has generally been good and over 10%. However, negative earnings will give you negative ROEs, so the 5 year median ROE is just 8.5%. However, the ROE for 2012 was 15.2%. The ROE on comprehensive income varies from the ROE on net income. The ROE on comprehensive income was lower for 2012 at 14.3%.
The Liquidity Ratio has always been very good and the current Ratio is 2.92. The 5 year median Liquidity Ratio is 2.64. This ratio used to be much lower, around 1.30 prior to 2007. The Debt Ratio is also very good at 3.13. The current Leverage and Debt/Equity Ratio are also very good at 1.47 and 0.47.
This company is rather risky. It is small and it provides services to the energy business. It is also considered to be a tech stock for some analysts as it provides technologies to the energy business. I do not expect that this company will do very well again until the oil and gas industries revive, but I am happy with what it will add to the performance in my TFSA. See my spreadsheet at mcb.htm.
This is the first of two parts. Second part will be posted on Tuesday, June 11, 2013 and will be here.
McCoy provides innovative products and services to the global energy industry. McCoy's two segments, Energy Products & Services and Mobile Solutions, operate internationally through direct sales and distributors with its operations based out of the Western Canadian Sedimentary Basin and the US Gulf Coast. McCoy's corporate office is located in Edmonton, Alberta, Canada with offices in Alberta, British Columbia, Louisiana, and Texas. They are growing internationally. Its web site is here McCoy.
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 or StockTwits.
Friday, June 7, 2013
Algonquin Power & Utilities Corp 2
I do not own this stock of Algonquin Power & Utilities Corp (TSX-AQN, OTC- AQUNF). However, I have shares in Emera Inc. which in turn owns currently some 27% of the outstanding shares of this company.
When I look at insiders trading, I find no insider selling and no insider buying. Insiders do have options. There are other options like vehicles called Rights Deferred Share Units. They also have Convertible Debentures.
The CEO has shares worth $3.2M and has options are worth $11.4M. The CFO has shares worth $0.3M and has options worth $5M. An officer has some shares and has options worth $1.8M. A director has some shares and has some options both worth little. This is just to give you an idea on insider share ownership and option values.
The 5 year low, median and high median Price/Earnings per Share Ratios are 17.86, 21.00 and 24.14. I think that these are rather high P/E Ratios for a utility. However, the current P/E Ratio is higher still at 29.15. My current P/E Ratio is based 2013 earnings estimate of $0.26 and a stock price of $7.58.
I get a Graham Price $5.08. The 10 year low, median and high median Price/Graham Price Ratios are 1.20, 1.38 and 1.51. The current P/GP ratio of 1.49 shows a relatively reasonable stock price, although it is a bit high. However, since this is a utility, I think that a good buying price would be when the P/GP is at 1.00 or lower. I believe you should be able to buy utility stocks at this sort of ratio. I find the P/GP Ratios also too high for a utility stock.
The 10 year median Price/Book Value per Share is 1.55. The current P/B Ratio is 1.72, a value some 10% higher. This shows a relatively reasonable stock price with a P/B Ratio that is not much above the 10 year median P/B Ratio.
If you look at the 5 year median Price/Cash Flow per Share, you get a Ratio of 9.47. The current P/CF Ratio is 10.38 based on 2013 CFPS of $0.73 and a stock price of $7.58. The current P/CF Ratio is only 9.8% higher which would suggest a reasonable stock price. However, I do see a problem with the CFPS estimates, which are a lot higher than the actual CFPS for 2012 of $0.35 and the 12 months Cash Flow, when you include the 1st quarter of 2013 is down 25% from cash flow for 2012. I would feel more comfortable with the CF estimates if the 1st Quarter did not have a negative cash flow.
The 5 year median Price/Sales Ratio is 2.30. The current P/S Ratio is 2.09 based on 2013 estimate of Revenue per Share of $3.63 and a stock price of $7.58. This would suggest a relatively reasonable stock price. A good thing is that sales for the 1st quarter are up and including the 1st quarter's sales give a 12 month sales increase of 36% over the sales for 2012. However, sales are expected by the analysts to be up some 85% in 2013 and I think that P/S Ratio of 2.00 or higher is a bit high for a utility stock.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold. The consensus would be a Buy. The 12 month consensus stock price is $8.65. This implies a total return of 18.21%, with 4.09% from dividends and 14.12% from capital gains.
Some analysts see this stock as purely a yields play with not much capital appreciation. Others think differently. BMO put this stock on its list of Top-15 Canadian Small Cap Stocks for 2013. Algonquin Power has just announced an increase in dividends of 9.7% for 2013 according to iPolitics.
So on some levels, the stock price looks reasonable. I think that the main problem that I have with this stock is that the company is not doing well in making a profit. I tend not to like companies that cannot make a decent profit. But, it is obvious that most analysts generally have a better opinion of this stock than I do. See my spreadsheet at aqn.htm.
This is the second of two parts. The first part was posted yesterday on Thursday and is available here.
APUC owns and operates a diversified portfolio of clean renewable electric generation and sustainable utility distribution businesses in North America. Liberty Water Co., APUC's water utility subsidiary, provides regulated water utility services. Through its wholly owned subsidiary Liberty Energy Utilities Co., APUC provides regulated electricity and natural gas distribution services. Algonquin Power Co., APUC's electric generation subsidiary, includes renewable energy facilities and thermal energy facilities. Its web site is here Algonquin Power.
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 or StockTwits.
When I look at insiders trading, I find no insider selling and no insider buying. Insiders do have options. There are other options like vehicles called Rights Deferred Share Units. They also have Convertible Debentures.
The CEO has shares worth $3.2M and has options are worth $11.4M. The CFO has shares worth $0.3M and has options worth $5M. An officer has some shares and has options worth $1.8M. A director has some shares and has some options both worth little. This is just to give you an idea on insider share ownership and option values.
The 5 year low, median and high median Price/Earnings per Share Ratios are 17.86, 21.00 and 24.14. I think that these are rather high P/E Ratios for a utility. However, the current P/E Ratio is higher still at 29.15. My current P/E Ratio is based 2013 earnings estimate of $0.26 and a stock price of $7.58.
I get a Graham Price $5.08. The 10 year low, median and high median Price/Graham Price Ratios are 1.20, 1.38 and 1.51. The current P/GP ratio of 1.49 shows a relatively reasonable stock price, although it is a bit high. However, since this is a utility, I think that a good buying price would be when the P/GP is at 1.00 or lower. I believe you should be able to buy utility stocks at this sort of ratio. I find the P/GP Ratios also too high for a utility stock.
The 10 year median Price/Book Value per Share is 1.55. The current P/B Ratio is 1.72, a value some 10% higher. This shows a relatively reasonable stock price with a P/B Ratio that is not much above the 10 year median P/B Ratio.
If you look at the 5 year median Price/Cash Flow per Share, you get a Ratio of 9.47. The current P/CF Ratio is 10.38 based on 2013 CFPS of $0.73 and a stock price of $7.58. The current P/CF Ratio is only 9.8% higher which would suggest a reasonable stock price. However, I do see a problem with the CFPS estimates, which are a lot higher than the actual CFPS for 2012 of $0.35 and the 12 months Cash Flow, when you include the 1st quarter of 2013 is down 25% from cash flow for 2012. I would feel more comfortable with the CF estimates if the 1st Quarter did not have a negative cash flow.
The 5 year median Price/Sales Ratio is 2.30. The current P/S Ratio is 2.09 based on 2013 estimate of Revenue per Share of $3.63 and a stock price of $7.58. This would suggest a relatively reasonable stock price. A good thing is that sales for the 1st quarter are up and including the 1st quarter's sales give a 12 month sales increase of 36% over the sales for 2012. However, sales are expected by the analysts to be up some 85% in 2013 and I think that P/S Ratio of 2.00 or higher is a bit high for a utility stock.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold. The consensus would be a Buy. The 12 month consensus stock price is $8.65. This implies a total return of 18.21%, with 4.09% from dividends and 14.12% from capital gains.
Some analysts see this stock as purely a yields play with not much capital appreciation. Others think differently. BMO put this stock on its list of Top-15 Canadian Small Cap Stocks for 2013. Algonquin Power has just announced an increase in dividends of 9.7% for 2013 according to iPolitics.
So on some levels, the stock price looks reasonable. I think that the main problem that I have with this stock is that the company is not doing well in making a profit. I tend not to like companies that cannot make a decent profit. But, it is obvious that most analysts generally have a better opinion of this stock than I do. See my spreadsheet at aqn.htm.
This is the second of two parts. The first part was posted yesterday on Thursday and is available here.
APUC owns and operates a diversified portfolio of clean renewable electric generation and sustainable utility distribution businesses in North America. Liberty Water Co., APUC's water utility subsidiary, provides regulated water utility services. Through its wholly owned subsidiary Liberty Energy Utilities Co., APUC provides regulated electricity and natural gas distribution services. Algonquin Power Co., APUC's electric generation subsidiary, includes renewable energy facilities and thermal energy facilities. Its web site is here Algonquin Power.
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 or StockTwits.
Thursday, June 6, 2013
Algonquin Power & Utilities Corp
This morning I purchased some more Ensign Energy Services stock (TSX-ESI) for $16.40 per share. By the time I got a real time quote on ESI after my write-up last week, price was over $17.00. No one can tell the future, but this being May I had a very good chance of getting this stock at I price that I like. The price is even lower now, but I do not care as I got it at a good price.
I do not own this stock of Algonquin Power & Utilities Corp (TSX-AQN, OTC- AQUNF). However, I have shares in Emera Inc. which in turn owns currently some 27% of the outstanding shares of this company.
This stock used to be an income trust, but it has changed to a corporation. The dividend yield has come down because the dividend was cut around 91% in 2009. However, they have been increasing the dividend since then and the last increase was 10.7% in 2012. The current dividend yield is just over 4%.
The problem that I see is that the Dividend Payout Ratios for earnings is over 100%. The DPR for earnings was 130% for 2011, 319% for 2012 and is expected to be around 119% for 2013 if dividends remain the same. The DPR for cash flow is better and the 5 year median DPR for cash flow is 50%.
It was felt that a combination of stock price rising and decreases in dividends would get old income trust dividend yields into the 4 to 5% range and this stock has managed this. Since 2009, the median stock price has risen by 27%. So this has been due to a combination, but most of change is because of falling dividends. Even with the recent dividend increases, the dividends are some 66% below 2009 dividend highs.
The 5 and 10 year total returns are at 0.79% and 5.35% per year, respectively. The Dividend portion of these total returns is at 4.84% and 8.36% per year, respectively. The capital losses are at 4.05% and 3% per year, respectively.
During the past 5 and 10 years, outstanding shares have increased by 21% and 11% per year, respectively. Shares have increased due to Share Issues, DRIP, Conversion of Debentures and stock options. So Revenue has grown at around 15% per year over the past 5 and 10 years, but Revenue per Shares is down by 5% per year over the past 5 years and only up by 3.5% per year over the past 10 years.
Earnings growth is not great either as growth of net income down by 1.5% per year over the past 5 years and up by 3% per year over the past 10 years. Earnings per Shares are down by 22% per year and 11% per year over the past 5 and 10 years.
Cash Flow per Share is not much better as it is down by 18% per year and 5% per year over the past 5 and 10 years. However, for CFPS, the 5 year running averages over the past 5 and 10 years show that CFPS is only down by 9% per year over the past 5 years and even over the past 10 years. (The 5 year running averages are quite different as exact 5 and 10 years ago were, relatively, good years.)
Return on Equity has always been quite low. The ROE for 2012 is just 1.6% for 2012 and the 5 year median is just 4.9%. Companies with consistently low ROEs tend to underperform the market. The ROE on comprehensive income varies a lot from the ROE on net income. For the year of 2012 the ROE on comprehensive income is 30% lower. However, if you look at the last 12 months, which includes the 1st quarterly report of 2013, the ROE on comprehensive income is 68% higher.
Analysts expect Revenue, Earnings and Cash Flow to be up in 2013. If you look at values for the last 12 months, which includes the 1st quarter of 2013, I find Revenue and Earnings to be higher. However cash flow is lower.
The current Liquidity Ratio is just 1.15. The Liquidity Ratio has always been low on this stock and the 5 year median Liquidity Ratio is 1.21. If you add in cash flow after dividends, the Ratio goes to 1.57. A lot of utilities depend on cash for liquidity. The Debt Ratio has always been good with a current value of 1.93. The current Leverage and Debt/Equity Ratios are rather typical for utilities with current Ratios at 3.59 and 1.86, respectively.
I will not be buying this stock. First I own Emera which owns some 27% of the outstanding shares of this company. Secondly, I do not like utilities that have very high DPRs re earnings. A couple of things in favour of this stock are that the earnings have mostly been positive and cash flow has always been positive. See my spreadsheet at aqn.htm.
This is the first of two parts. Second part will be posted tomorrow on Friday and will be here.
APUC owns and operates a diversified portfolio of clean renewable electric generation and sustainable utility distribution businesses in North America. Liberty Water Co., APUC's water utility subsidiary, provides regulated water utility services. Through its wholly owned subsidiary Liberty Energy Utilities Co., APUC provides regulated electricity and natural gas distribution services. Algonquin Power Co., APUC's electric generation subsidiary, includes renewable energy facilities and thermal energy facilities. Its web site is here Algonquin Power.
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 or StockTwits.
I do not own this stock of Algonquin Power & Utilities Corp (TSX-AQN, OTC- AQUNF). However, I have shares in Emera Inc. which in turn owns currently some 27% of the outstanding shares of this company.
This stock used to be an income trust, but it has changed to a corporation. The dividend yield has come down because the dividend was cut around 91% in 2009. However, they have been increasing the dividend since then and the last increase was 10.7% in 2012. The current dividend yield is just over 4%.
The problem that I see is that the Dividend Payout Ratios for earnings is over 100%. The DPR for earnings was 130% for 2011, 319% for 2012 and is expected to be around 119% for 2013 if dividends remain the same. The DPR for cash flow is better and the 5 year median DPR for cash flow is 50%.
It was felt that a combination of stock price rising and decreases in dividends would get old income trust dividend yields into the 4 to 5% range and this stock has managed this. Since 2009, the median stock price has risen by 27%. So this has been due to a combination, but most of change is because of falling dividends. Even with the recent dividend increases, the dividends are some 66% below 2009 dividend highs.
The 5 and 10 year total returns are at 0.79% and 5.35% per year, respectively. The Dividend portion of these total returns is at 4.84% and 8.36% per year, respectively. The capital losses are at 4.05% and 3% per year, respectively.
During the past 5 and 10 years, outstanding shares have increased by 21% and 11% per year, respectively. Shares have increased due to Share Issues, DRIP, Conversion of Debentures and stock options. So Revenue has grown at around 15% per year over the past 5 and 10 years, but Revenue per Shares is down by 5% per year over the past 5 years and only up by 3.5% per year over the past 10 years.
Earnings growth is not great either as growth of net income down by 1.5% per year over the past 5 years and up by 3% per year over the past 10 years. Earnings per Shares are down by 22% per year and 11% per year over the past 5 and 10 years.
Cash Flow per Share is not much better as it is down by 18% per year and 5% per year over the past 5 and 10 years. However, for CFPS, the 5 year running averages over the past 5 and 10 years show that CFPS is only down by 9% per year over the past 5 years and even over the past 10 years. (The 5 year running averages are quite different as exact 5 and 10 years ago were, relatively, good years.)
Return on Equity has always been quite low. The ROE for 2012 is just 1.6% for 2012 and the 5 year median is just 4.9%. Companies with consistently low ROEs tend to underperform the market. The ROE on comprehensive income varies a lot from the ROE on net income. For the year of 2012 the ROE on comprehensive income is 30% lower. However, if you look at the last 12 months, which includes the 1st quarterly report of 2013, the ROE on comprehensive income is 68% higher.
Analysts expect Revenue, Earnings and Cash Flow to be up in 2013. If you look at values for the last 12 months, which includes the 1st quarter of 2013, I find Revenue and Earnings to be higher. However cash flow is lower.
The current Liquidity Ratio is just 1.15. The Liquidity Ratio has always been low on this stock and the 5 year median Liquidity Ratio is 1.21. If you add in cash flow after dividends, the Ratio goes to 1.57. A lot of utilities depend on cash for liquidity. The Debt Ratio has always been good with a current value of 1.93. The current Leverage and Debt/Equity Ratios are rather typical for utilities with current Ratios at 3.59 and 1.86, respectively.
I will not be buying this stock. First I own Emera which owns some 27% of the outstanding shares of this company. Secondly, I do not like utilities that have very high DPRs re earnings. A couple of things in favour of this stock are that the earnings have mostly been positive and cash flow has always been positive. See my spreadsheet at aqn.htm.
This is the first of two parts. Second part will be posted tomorrow on Friday and will be here.
APUC owns and operates a diversified portfolio of clean renewable electric generation and sustainable utility distribution businesses in North America. Liberty Water Co., APUC's water utility subsidiary, provides regulated water utility services. Through its wholly owned subsidiary Liberty Energy Utilities Co., APUC provides regulated electricity and natural gas distribution services. Algonquin Power Co., APUC's electric generation subsidiary, includes renewable energy facilities and thermal energy facilities. Its web site is here Algonquin Power.
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 or StockTwits.
Wednesday, June 5, 2013
Hammond Power Solutions Inc
On my other blog I am today writing about how the stock market is not a zero sum game...continue...
I own this stock of Hammond Power Solutions Inc. (TSX-HPS.A, OTC- HMDPF). I am reviewing this again, because I own it and the 2012 annual report is in. When I looked at in January 2013, the 2012 report had not yet been published. I bought this stock for my TFSA account in January 2013. At the end of last month, this stock was up some 17% per year and now it is up only 0.74% per year. The shares took a dive at the end of April. I suspect this was because this company missed EPS estimate for first quarter of 2013. The first quarter was not a good one for revenue and earnings.
The dividend is decent at 2.38% and the growth over the past 3 years is at 21% per year. However, the 3 year median dividend yield is just 1.4%. The last increase in dividends was for 11%. The Dividend Payout Ratios are good with 3 year median DPRs for earnings at 16% and for CFPS at 10%.
The outstanding shares have not changed over the past 5 and 10 years. They have increased due to stock options and decreased due to Buy Backs. Growth on most measures is very good. Revenue per Share is up by 9.6% and 12.8% per year over the past 5 and 10 years. Cash Flow is up by 7.5% and 29.3% per year over the past 5 and 10 years. However, if you look at Cash Flow growth using the 5 year running averages over the past 5 years, the growth is much better at 18.5% per year.
Return on Equity is generally good and over 10%, with the 5 year median at 12.4%. The ROE on Comprehensive Income can vary from the ROE on net income. The variance for 2012 was rather large at 24%, but after the 1st quarterly, ROE figures were different over the past 12 months by just 3%.
The debt ratios are current with current Liquidity Ratio at 1.52 and current Debt Ratio at 2.59. The current Leverage and Debt/Equity Ratios are also good at 1.66 and 0.64.
The 5 year low, median and high median Price/Earnings Ratios are 7.58, 9.29 and 11.22. The current P/E Ratio at 7.28 says the stock is cheap. This P/E is based on stock price of $8.30 and 2013 earnings of $1.14. I get a Graham Price of 15.08. The 10 year median Price/Graham Price Ratios are 0.46, 0.68 and 0.92. The current P/GP Ratio of 0.55 says the stock is reasonable. However, on an absolute basis, any P/GP of 1.00 or lower says the stock is at a very good price.
The 10 year Price/Book Value Ratio is 1.20 and the current P/BV Ratio is just 0.94, a value some 78% of the 10 year median and says the stock price is cheap. A P/BV Ratio of below 1.00 also says the stock is cheap. The 5 year median dividend yield is 1.40 and the current dividend yield of 2.41%, a value some 72% higher also says the stock is cheap.
There is only one analyst that I can find that is following this stock and he rates it as a Buy. His 12 months consensus stock price is $13.00. This implies a total return of 59.04% with 56.63% from capital gains and 2.41% from dividends.
I think that the stock is cheap. Unfortunately, I do not have enough cash in the TFSA to buy more shares at the moment. However, it is still not yet as cheap as I bought it in January. See my spreadsheet at hps.htm.
Hammond Power Solutions Inc. is the largest manufacturer of dry-type transformers in North America. They engineer and manufacture a wide range of custom transformers that are exported globally in electrical equipment and systems. They support solid industries such as oil and gas, mining, steel, waste and water treatment, and wind power-generation. Its web site is here Hammond.
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 or StockTwits.
I own this stock of Hammond Power Solutions Inc. (TSX-HPS.A, OTC- HMDPF). I am reviewing this again, because I own it and the 2012 annual report is in. When I looked at in January 2013, the 2012 report had not yet been published. I bought this stock for my TFSA account in January 2013. At the end of last month, this stock was up some 17% per year and now it is up only 0.74% per year. The shares took a dive at the end of April. I suspect this was because this company missed EPS estimate for first quarter of 2013. The first quarter was not a good one for revenue and earnings.
The dividend is decent at 2.38% and the growth over the past 3 years is at 21% per year. However, the 3 year median dividend yield is just 1.4%. The last increase in dividends was for 11%. The Dividend Payout Ratios are good with 3 year median DPRs for earnings at 16% and for CFPS at 10%.
The outstanding shares have not changed over the past 5 and 10 years. They have increased due to stock options and decreased due to Buy Backs. Growth on most measures is very good. Revenue per Share is up by 9.6% and 12.8% per year over the past 5 and 10 years. Cash Flow is up by 7.5% and 29.3% per year over the past 5 and 10 years. However, if you look at Cash Flow growth using the 5 year running averages over the past 5 years, the growth is much better at 18.5% per year.
Return on Equity is generally good and over 10%, with the 5 year median at 12.4%. The ROE on Comprehensive Income can vary from the ROE on net income. The variance for 2012 was rather large at 24%, but after the 1st quarterly, ROE figures were different over the past 12 months by just 3%.
The debt ratios are current with current Liquidity Ratio at 1.52 and current Debt Ratio at 2.59. The current Leverage and Debt/Equity Ratios are also good at 1.66 and 0.64.
The 5 year low, median and high median Price/Earnings Ratios are 7.58, 9.29 and 11.22. The current P/E Ratio at 7.28 says the stock is cheap. This P/E is based on stock price of $8.30 and 2013 earnings of $1.14. I get a Graham Price of 15.08. The 10 year median Price/Graham Price Ratios are 0.46, 0.68 and 0.92. The current P/GP Ratio of 0.55 says the stock is reasonable. However, on an absolute basis, any P/GP of 1.00 or lower says the stock is at a very good price.
The 10 year Price/Book Value Ratio is 1.20 and the current P/BV Ratio is just 0.94, a value some 78% of the 10 year median and says the stock price is cheap. A P/BV Ratio of below 1.00 also says the stock is cheap. The 5 year median dividend yield is 1.40 and the current dividend yield of 2.41%, a value some 72% higher also says the stock is cheap.
There is only one analyst that I can find that is following this stock and he rates it as a Buy. His 12 months consensus stock price is $13.00. This implies a total return of 59.04% with 56.63% from capital gains and 2.41% from dividends.
I think that the stock is cheap. Unfortunately, I do not have enough cash in the TFSA to buy more shares at the moment. However, it is still not yet as cheap as I bought it in January. See my spreadsheet at hps.htm.
Hammond Power Solutions Inc. is the largest manufacturer of dry-type transformers in North America. They engineer and manufacture a wide range of custom transformers that are exported globally in electrical equipment and systems. They support solid industries such as oil and gas, mining, steel, waste and water treatment, and wind power-generation. Its web site is here Hammond.
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 or StockTwits.
Tuesday, June 4, 2013
Genivar Inc 2
I own this stock of Genivar Inc. (TSX-GNV, OTC- GNVUF). I bought some of this stock a couple of times in 2011. I do not have many shares, but I have made a return of 9.94% per on this stock. Of that total return, 3.51% per year is capital gains and 6.43% per year is dividends.
When I look at insider trading, I find no insider selling and some insider buying ($0.5M). It occurred recently at around $24.00. Insiders own quite a bit of stock in this company. There seems to be no options given out at all.
The CEO has shares worth $20M. The CFO has shares worth $.03M. An officer has shares worth $14M and another officer owns shares worth $13M. Directors seem to have little in the way of shares. This is just to give you an idea on insider share ownership. Both Caisse de dépôt et placement du Québec and Canada Pension Plan Investment Board seem to own around 15% of the outstanding shares each.
The 5 year low, median and high median Price/Earnings per Share Ratios are 10.61, 14.35 and 17.90. The current P/E Ratio 16.16 based on a stock price of $24.88 and 2013 EPS estimates of $1.54. I get a Graham Price of $25.07. The 10 year low, median and high median Price/Graham Price Ratios are 0.79, 1.07 and 1.27. The current P/GP is 0.99. Both these tests show that the stock price is reasonable, with one test showing the stock price above the median and one below.
I get a 10 year Price/Book Value per Share Ratio of 1.77 and the current P/BV Ratio is 1.37, a value only 78% of the 10 year median Ratio. The current dividend yield is 6.03% and the 5 year median dividend yield is 5.41% a value some 11% lower. The P/BV test shows that the current stock price is relatively cheap. The second dividend yield test shows that the stock price is reasonable to cheap.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. Most of the recommendations are a Buy and the consensus recommendation would be a Buy. The 12 month consensus stock price is $25.70. This implies a total return of 9.32%, with 6.03% from dividends and 3.3% from capital gains.
Genivar plans to reorganize the company and change the name to WSP Global. Some analysts see this reorganization in a positive light and think that Genivar will deliver on its growth targets. This stock is being talked about at Canadian Money Forum. Some analysts also like it on Stock Chase.
Watch List News talks about analysts recently raising the 12 months stock price for this stock. This engineering company has also confirmed allegations that it "engaged in "inappropriate conduct" several years ago in the financing of political parties in Quebec and the awarding of municipal contracts as outlined in recent allegations to the province's corruption inquiry". See news item on Tonight Newspaper.
So my stock price testing shows that this stock is reasonable to cheap. See my spreadsheet at gnv.htm.
This is the second of two parts. The first part was posted on Monday and is available here.
Genivar Inc. is an engineering services firm providing private and public-sector clients with a complete range of professional consulting services throughout all project phases, including planning, design, construction and maintenance. Mainly in Ontario and Quebec, but has some international exposure. Its web site is here Genivar.
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 or StockTwits.
When I look at insider trading, I find no insider selling and some insider buying ($0.5M). It occurred recently at around $24.00. Insiders own quite a bit of stock in this company. There seems to be no options given out at all.
The CEO has shares worth $20M. The CFO has shares worth $.03M. An officer has shares worth $14M and another officer owns shares worth $13M. Directors seem to have little in the way of shares. This is just to give you an idea on insider share ownership. Both Caisse de dépôt et placement du Québec and Canada Pension Plan Investment Board seem to own around 15% of the outstanding shares each.
The 5 year low, median and high median Price/Earnings per Share Ratios are 10.61, 14.35 and 17.90. The current P/E Ratio 16.16 based on a stock price of $24.88 and 2013 EPS estimates of $1.54. I get a Graham Price of $25.07. The 10 year low, median and high median Price/Graham Price Ratios are 0.79, 1.07 and 1.27. The current P/GP is 0.99. Both these tests show that the stock price is reasonable, with one test showing the stock price above the median and one below.
I get a 10 year Price/Book Value per Share Ratio of 1.77 and the current P/BV Ratio is 1.37, a value only 78% of the 10 year median Ratio. The current dividend yield is 6.03% and the 5 year median dividend yield is 5.41% a value some 11% lower. The P/BV test shows that the current stock price is relatively cheap. The second dividend yield test shows that the stock price is reasonable to cheap.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. Most of the recommendations are a Buy and the consensus recommendation would be a Buy. The 12 month consensus stock price is $25.70. This implies a total return of 9.32%, with 6.03% from dividends and 3.3% from capital gains.
Genivar plans to reorganize the company and change the name to WSP Global. Some analysts see this reorganization in a positive light and think that Genivar will deliver on its growth targets. This stock is being talked about at Canadian Money Forum. Some analysts also like it on Stock Chase.
Watch List News talks about analysts recently raising the 12 months stock price for this stock. This engineering company has also confirmed allegations that it "engaged in "inappropriate conduct" several years ago in the financing of political parties in Quebec and the awarding of municipal contracts as outlined in recent allegations to the province's corruption inquiry". See news item on Tonight Newspaper.
So my stock price testing shows that this stock is reasonable to cheap. See my spreadsheet at gnv.htm.
This is the second of two parts. The first part was posted on Monday and is available here.
Genivar Inc. is an engineering services firm providing private and public-sector clients with a complete range of professional consulting services throughout all project phases, including planning, design, construction and maintenance. Mainly in Ontario and Quebec, but has some international exposure. Its web site is here Genivar.
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 or StockTwits.
Monday, June 3, 2013
Genivar Inc
On my other blog I am today writing about Country Bankruptcies ...continue...
I own this stock of Genivar Inc. (TSX-GNV, OTC-GNVUF). I bought some of this stock a couple of times in 2011. I do not have many shares, but I have made a return of 9.94% per on this stock. Of that total return, 3.51% per year is capital gains and 6.43% per year is dividends.
This company used to be an income trust. Since the legislation cancelling income trusts, this company has kept their dividend level. However, they did make special dividend payments in 2009 and 2011. The dividend yield is still quite high and currently running at just over 6%.
As far as Dividend Payout Ratios goes, they are probably too high. The 5 year median DPR is 88% for earnings and 48% for cash flow. The DPR for earnings in 2012 was 130%. It is expected to come in around 97% for this year and at 82% for 2014. These high DPRs are probably why analysts do not expect any dividend increases for this year or next.
Also, the expected EPS for 2013 is $1.54 a value some 35% above the 2012 EPS of $1.15. However, EPS were lower in the first quarter of 2013 than they were in the first quarter of 2012. If you look at last 12 months of earnings (after the first quarter of 2013) the earnings are $1.11 a value lower than for 2012.
Note that I have just 6 years of data because this company went public in 2006. Total return over the past 5 years is just 0.71% per year. Dividends were at 6.83% per year, but there was a capital loss of 6.12% per year. However, if you got this stock from the beginning, you would have earned 19.43% per year with 9.68% per year from dividends and 9.75% per year from capital gains.
Over the past 5 and 6 years, outstanding shares have increased 32% and 29% per year. The increase in stock has been due to share issues and DRIP. The thing you notice is that growth is good if you look to when the stock was first issued 6 years ago, but not very good over the past 5 years, especially if you are looking at per share growth.
So the 5 and 6 year growth in Revenue is at 37% and 50%, but Revenue per share growth over the past 5 and 6 years is at 4.3% and 16.3% per year. Earnings per Share declined by 2.7% per year over the past 5 years, however it is up by 12% over the past 6 years. Cash Flow declined by 10.4% per year over the past 5 years. It is up by just 2.5% per year over the past 6 years.
The Return on Equity has been consistently low. Only in one year did it reach 10% and that was in 2011. The ROE for 2012 was just 5% and the 5 year median ROE is just 7.7%. The ROE on comprehensive income has varied from the ROE on net income. For 2012, the ROE on Comprehensive income was 6.5%. However, the 5 year median ROE on comprehensive income was also just 7.7%. Stocks that consistently have low ROEs tend to underperform the stock market.
The debt ratios are quite good. This is consistent with a stock with large insider ownership. The Liquidity Ratio is currently at 1.58. The Debt Ratio is currently at 2.09. The current Leverage and Debt/Equity Ratios are also good currently at 1.91 and 0.91.
For me to invest more in this company I would like to see better ROEs and better growth in per share values. I would also need to see some growth in the dividends. This company has proven that they can make money and cash flow as EPS and CFPS has always been positive. At the moment, I will be holding on to the shares I have bought. But I will not yet be buying any more. See my spreadsheet at gnv.htm.
This is the first of two parts. Second part will be posted on Tuesday and will be here.
Genivar Inc. is an engineering services firm providing private and public-sector clients with a complete range of professional consulting services throughout all project phases, including planning, design, construction and maintenance. Mainly in Ontario and Quebec, but has some international exposure. Its web site is here Genivar.
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 or StockTwits.
I own this stock of Genivar Inc. (TSX-GNV, OTC-GNVUF). I bought some of this stock a couple of times in 2011. I do not have many shares, but I have made a return of 9.94% per on this stock. Of that total return, 3.51% per year is capital gains and 6.43% per year is dividends.
This company used to be an income trust. Since the legislation cancelling income trusts, this company has kept their dividend level. However, they did make special dividend payments in 2009 and 2011. The dividend yield is still quite high and currently running at just over 6%.
As far as Dividend Payout Ratios goes, they are probably too high. The 5 year median DPR is 88% for earnings and 48% for cash flow. The DPR for earnings in 2012 was 130%. It is expected to come in around 97% for this year and at 82% for 2014. These high DPRs are probably why analysts do not expect any dividend increases for this year or next.
Also, the expected EPS for 2013 is $1.54 a value some 35% above the 2012 EPS of $1.15. However, EPS were lower in the first quarter of 2013 than they were in the first quarter of 2012. If you look at last 12 months of earnings (after the first quarter of 2013) the earnings are $1.11 a value lower than for 2012.
Note that I have just 6 years of data because this company went public in 2006. Total return over the past 5 years is just 0.71% per year. Dividends were at 6.83% per year, but there was a capital loss of 6.12% per year. However, if you got this stock from the beginning, you would have earned 19.43% per year with 9.68% per year from dividends and 9.75% per year from capital gains.
Over the past 5 and 6 years, outstanding shares have increased 32% and 29% per year. The increase in stock has been due to share issues and DRIP. The thing you notice is that growth is good if you look to when the stock was first issued 6 years ago, but not very good over the past 5 years, especially if you are looking at per share growth.
So the 5 and 6 year growth in Revenue is at 37% and 50%, but Revenue per share growth over the past 5 and 6 years is at 4.3% and 16.3% per year. Earnings per Share declined by 2.7% per year over the past 5 years, however it is up by 12% over the past 6 years. Cash Flow declined by 10.4% per year over the past 5 years. It is up by just 2.5% per year over the past 6 years.
The Return on Equity has been consistently low. Only in one year did it reach 10% and that was in 2011. The ROE for 2012 was just 5% and the 5 year median ROE is just 7.7%. The ROE on comprehensive income has varied from the ROE on net income. For 2012, the ROE on Comprehensive income was 6.5%. However, the 5 year median ROE on comprehensive income was also just 7.7%. Stocks that consistently have low ROEs tend to underperform the stock market.
The debt ratios are quite good. This is consistent with a stock with large insider ownership. The Liquidity Ratio is currently at 1.58. The Debt Ratio is currently at 2.09. The current Leverage and Debt/Equity Ratios are also good currently at 1.91 and 0.91.
For me to invest more in this company I would like to see better ROEs and better growth in per share values. I would also need to see some growth in the dividends. This company has proven that they can make money and cash flow as EPS and CFPS has always been positive. At the moment, I will be holding on to the shares I have bought. But I will not yet be buying any more. See my spreadsheet at gnv.htm.
This is the first of two parts. Second part will be posted on Tuesday and will be here.
Genivar Inc. is an engineering services firm providing private and public-sector clients with a complete range of professional consulting services throughout all project phases, including planning, design, construction and maintenance. Mainly in Ontario and Quebec, but has some international exposure. Its web site is here Genivar.
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 or StockTwits.
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