I do not own this stock of Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF). This stock seems to be a favorite with investors who like solid, stable, dividend paying stock. It was on Mike Higgs' list and it used to be on the dividend lists. I have been following this stock for some time however, I will not buy it because I have Power Financial Corp. (TSX-PWF). Great West Lifeco Inc. is one of the companies under the Power Financial Corp. and Power Corp. (TSX_POW).
When I look at insider trading, I find insider selling of $4.6M and insider buying of $0.5M with net insider selling at $4.1M and this is only 0.01% of market cap and so very small. There is some insider ownership with the CEO having shares worth around $4.4M, the CFO having share worth $7.5M, an officer having shares worth around $64.3M and a director having shares worth around $11.5M.
One thing that is noticeable in this report is that there are a lot of insiders who have options. In 2013 outstanding shares were increase by just over 2M with a book value of $57M and this number of shares was worth $66.5M by the end of 2013. This number of shares was 0.20% of outstanding shares at the end of 2013 so is a reasonable number.
The 5 year low, median and high median Price/Earnings per Share Ratios are 10.49, 12.29 and 14.51. The corresponding 10 year values were at 12.53, 14.26 and 15.70. The current P/E Ratio is 12.88 based on a stock price of $32.20 and 2014 EPS estimate of $2.50. This stock price test suggests that the stock price is relatively reasonable.
I get a Graham Price of $26.51. The 10 year low, median and high median Price/Graham Price Ratios are 1.01, 1.25 and 1.37. The current P/GP Ratio is 1.21. This stock price test suggests that the stock price is relatively reasonable.
I get a 10 year median Price/Book Value per Share Ratio of 2.20 and the current P/B Ratio is 2.58 based on a stock price of $32.20 and BVPS of 12.50. The current P/B Ratio is some 17% higher than the 10 year median P/B Ratio. This stock price test suggests that the stock price is relatively reasonable, but the stock price is near the high end of the reasonableness range. The problem here is that the company is not growing the book value. The recent recession has been tough on insurance companies.
The 5 year median dividend yield is 5.38% and the current dividend yield at 3.82% is some 27% lower and this would suggest that the stock price is relatively expensive. However, the historical average dividend yield is 3.94% and the historical median dividend yield is 3.02%. Over the last 5 years the dividend yields are been quite high. Using the historical dividend yields in price testing suggests that the stock price is relatively reasonable to relatively cheap.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. The Hold recommendation is the most common one and the consensus recommendation is a Hold. The 12 month consensus stock price is $33.70. This implies a total return of $8.48% with 4.66% from capital gains and $3.82% from dividends.
A recent article in the Winnipeg Free Press talks about Great West Life acquiring PDAssure. A press release on News Wire talks about a US subsidiary making the acquisition of the J.P. Morgan Retirement Plan Services large-market recordkeeping business.
Sound bit for Twitter and StockTwits is: Insurance stock at reasonable price. The time to buy stocks are when they are cheap to reasonable. Analysts do not expect much for this stock at the present and if a stock or sector is out of favour, it is a good time to have a look at the stock or sector. Insurance stocks are out of favour because they have had a hard time with the low interest rates. However, low interest rates will not last forever. See my spreadsheet at gwo.htm.
This is the second of two parts. The first part was posted on Monday, September 29, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
Great-West Lifeco is a financial services holding company with interests in the life insurance, health insurance, retirement savings, investment management and reinsurance businesses. The Corporation has operations in Canada, the United States, Europe and Asia through The Great-West Life Assurance Company, London Life Insurance Company, The Canada Life Assurance Company, Great-West Life & Annuity Insurance Company and Putnam Investments, LLC. Lifeco and are members of the Power Financial Corporation group of companies. Its web site is here Great West Life.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
Tuesday, September 30, 2014
Monday, September 29, 2014
Great-West Lifeco Inc.
On my other blog I am today writing about RRIFs and LRIFs continue...
I do not own this stock of Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF). This stock seems to be a favorite with investors who like solid, stable, dividend paying stock. It was on Mike Higgs' list and it used to be on the dividend lists. I have been following this stock for some time however, I will not buy it because I have Power Financial Corp. (TSX-PWF). Great West Lifeco Inc. is one of the companies under the Power Financial Corp. and Power Corp. (TSX_POW).
As with a lot of insurance companies, this company's dividends have been frozen for some time. The last dividend increase was in 2009. Manulife Financial Corp (TSX-MFC) was the first company to restart dividend increases and they did that this year. However, I believe Manulife Financial was the only insurance company to cut dividends rather than just freeze them.
I believe that insurance companies will eventually begin increasing dividends on a regular basis, but it is hard to say when. One of the problems is the low interest rates and it is hard to say when this will change. People seem to be expecting interest rates will go up, but it has not happened yet.
What seems to have happened is that Insurance companies' stock prices started to rise in 2012 in anticipation of better times. Although the stock price increases seems to have now stalled. Investors still did ok on this over the past 5 and 10 years with total returns of 7.95% and 5.85% per year. The dividend portion of these returns was at 4.28% and 3.89% per year. The capital gains portion of these returns was at 3.68% and 1.96% per year.
The outstanding shares on this stock have increase by around 1% per year over the past 5 and 10 years. If you look at growth, for revenue and cash flow growth is better over the past 10 years than over the past 5 years. For earnings, growth is better over the past 5 years than past 10 years, unless you look at 5 year running averages and then growth is better over past 10 years than last 5 years.
Revenue has declined by 4% per year over the past 5 years and has grown at 6.9% per year over the past 10 years. EPS has grown at 8.2% and 4.6% per year over the past 5 and 10 years. For EPS if you use 5 year running averages, then growth is at 0.24% and 7% per year over the past 5 and 10 years. Cash Flow per Share is down by 3.2% and up by 9% per year over the past 5 and 10 years.
The Return on Equity has been over 10% each year over the past 10 years. The ROE for 2013 is at 13% and the 5 year median is at 11.1%. The ROE on comprehensive income is at 19.5% for 2013, and the 5 year median ROE is at 10.5%.
I get a Liquidity Ratio for this stock at 1.58. However, as with all financial institutions, this is not an important debt ratio. The Debt Ratio is at 1.07 which is pretty close to the historical norm for this stock. However, the Leverage and Debt/Equity Ratios at 18.53 and 17.39 are very much higher than in the past.
Sound bit for Twitter and StockTwits is: stable insurance company. I still think that insurance companies will provide long term dividend and stock price growth. However, it is hard to say when dividends will again increase. See my spreadsheet at gwo.htm.
This is the first of two parts. The second part will be posted on Tuesday, September 30, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
Great-West Lifeco is a financial services holding company with interests in the life insurance, health insurance, retirement savings, investment management and reinsurance businesses. The Corporation has operations in Canada, the United States, Europe and Asia through The Great-West Life Assurance Company, London Life Insurance Company, The Canada Life Assurance Company, Great-West Life & Annuity Insurance Company and Putnam Investments, LLC. Lifeco and are members of the Power Financial Corporation group of companies. Its web site is here Great West Life.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
I do not own this stock of Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF). This stock seems to be a favorite with investors who like solid, stable, dividend paying stock. It was on Mike Higgs' list and it used to be on the dividend lists. I have been following this stock for some time however, I will not buy it because I have Power Financial Corp. (TSX-PWF). Great West Lifeco Inc. is one of the companies under the Power Financial Corp. and Power Corp. (TSX_POW).
As with a lot of insurance companies, this company's dividends have been frozen for some time. The last dividend increase was in 2009. Manulife Financial Corp (TSX-MFC) was the first company to restart dividend increases and they did that this year. However, I believe Manulife Financial was the only insurance company to cut dividends rather than just freeze them.
I believe that insurance companies will eventually begin increasing dividends on a regular basis, but it is hard to say when. One of the problems is the low interest rates and it is hard to say when this will change. People seem to be expecting interest rates will go up, but it has not happened yet.
What seems to have happened is that Insurance companies' stock prices started to rise in 2012 in anticipation of better times. Although the stock price increases seems to have now stalled. Investors still did ok on this over the past 5 and 10 years with total returns of 7.95% and 5.85% per year. The dividend portion of these returns was at 4.28% and 3.89% per year. The capital gains portion of these returns was at 3.68% and 1.96% per year.
The outstanding shares on this stock have increase by around 1% per year over the past 5 and 10 years. If you look at growth, for revenue and cash flow growth is better over the past 10 years than over the past 5 years. For earnings, growth is better over the past 5 years than past 10 years, unless you look at 5 year running averages and then growth is better over past 10 years than last 5 years.
Revenue has declined by 4% per year over the past 5 years and has grown at 6.9% per year over the past 10 years. EPS has grown at 8.2% and 4.6% per year over the past 5 and 10 years. For EPS if you use 5 year running averages, then growth is at 0.24% and 7% per year over the past 5 and 10 years. Cash Flow per Share is down by 3.2% and up by 9% per year over the past 5 and 10 years.
The Return on Equity has been over 10% each year over the past 10 years. The ROE for 2013 is at 13% and the 5 year median is at 11.1%. The ROE on comprehensive income is at 19.5% for 2013, and the 5 year median ROE is at 10.5%.
I get a Liquidity Ratio for this stock at 1.58. However, as with all financial institutions, this is not an important debt ratio. The Debt Ratio is at 1.07 which is pretty close to the historical norm for this stock. However, the Leverage and Debt/Equity Ratios at 18.53 and 17.39 are very much higher than in the past.
Sound bit for Twitter and StockTwits is: stable insurance company. I still think that insurance companies will provide long term dividend and stock price growth. However, it is hard to say when dividends will again increase. See my spreadsheet at gwo.htm.
This is the first of two parts. The second part will be posted on Tuesday, September 30, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
Great-West Lifeco is a financial services holding company with interests in the life insurance, health insurance, retirement savings, investment management and reinsurance businesses. The Corporation has operations in Canada, the United States, Europe and Asia through The Great-West Life Assurance Company, London Life Insurance Company, The Canada Life Assurance Company, Great-West Life & Annuity Insurance Company and Putnam Investments, LLC. Lifeco and are members of the Power Financial Corporation group of companies. Its web site is here Great West Life.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
Friday, September 26, 2014
Granite REIT
I do not own this stock of Granite REIT (TSX-GRT.UN, NYSE-GRP.U). I first bought some of this stock in 2003 when it was called MI Developments (TSX-MIM.A). It was a company connected with Frank Stronach and Magna. TD bank also had an Action Buy Call (Strong Buy) on this stock. By the December 2006, it was doing well and my stock was up some 15% per year. I bought some more. The year of 2006 was the last time I did well on this stock. It kept going down and I sold in 2009 being discourage it would ever do well again.
In 2012 the company changed its name from MI Developments (TSX-MIM.A) to Granite Real Estate (TSX-GRT.UN; NYSE-GRP.U) and it got rid of all its investments that were not in real estate. Because of this revenue dropped. If you look at the company, Revenue per Share is down by 27% and 15% per year over the past 5 and 10 years.
If you look at just Real Estate Revenue per Share, it is down by 5.7% over the past 5 years, but up by 3.33% over the past 10 years. Analysts expect that revenues will continue to grow at just north of 8% per year in 2014 and 2015. If you look at the second quarter, revenue is going in the right direction.
When this stock was turning into a REIT, the dividends were hiked up at 400% in the later part of 2011. At that time dividends were paid in US$ and quarterly. Dividends were changed to CDN$ in 2012. In 2013, dividend payments were changed to a monthly mode of payment. Dividend growth over the past 5 and 10 years come in at 21% and 18% per year. However, this will not be the rate going forward because of the one big dividend hike in the later part of 2011.
The last dividend increase was in 2014 and it was for 4.6%. When the dividends were changed to monthly, only 11 payments were made in 2013 because of the timing of the dividend payments. The dividend yield is still quite good as the current yield is at 5.55%.
Not only has this company changed the reporting currency, but in 2013, the company changed their accounting rules from US GAAP to IFRS (the current Canadian standard). This makes it more difficult to really compare values over time. On the other hand, accounting rules seem to change almost every year.
Over the past 5 and 10 years, the outstanding shares have not changed. Shares have increased due to stock options and have decreased due to Buy Backs. I have already covered revenue above. For EPS, if you look at 5 year running averages over the past 5 and 8 years, it has grown at the rate of 22% and 73% per year. Note that there have been a number of years of losses, with 4 years of losses in the past 10 years.
However, if you look at Funds From Operations (FFO), which this company consistently reports on, the FFO per Share is down by 8.8% and up by 2.4% per year over the past 5 and 10 years.
The growth in cash flow is not anywhere near the same as for earnings, with growth over the past 5 and 10 years at 3% and 4% per year. If you look at 5 year running averages, the growth is at 10% and 7% per year over the past 5 and 9 years. There are no years of negative cash flow.
I cannot get a fix on the Price/Earnings per Share Ratios because of the number of negative earnings years. However, the current P/E Ratio of 12.03 is not very high. This is based on a stock price of $39.57 and 2014 EPS estimate of 3.29.
There is a problem as this company always reports the FFO but not always the EPS, so the estimates may not be really for EPS. However, the 5 year median P/FFO Ratio is 13.10 and this is below the current P/E Ratio of 12.03.
The 10 year Price/Book Value per Share is 0.95 and the current one is at 1.12 a value some 18% higher. This still puts the current P/B Ratio in the reasonableness range, but towards the top end of this range. However, a P/B Ratio of 1.12 is rather low.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. Most of the recommendations are a Hold, but the consensus would be a Buy. The 12 month stock price consensus is $43.30. This implies a total return of 14.98% with 5.55% from dividends and 9.43% from capital gain.
On BBN News Derek Warren, Portfolio Manager at Morguard Financial Corp. recommends Granite REIT as a core stock. He likes the fact that its core tenant is Magna International.
Sound bit for Twitter and StockTwits is: REIT at reasonable price. I think that the price of this REIT is currently reasonable. The company has a good main tenant and this is a plus. See my spreadsheet at grt.htm.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.
Granite is a global real estate operating company engaged principally in the acquisition, development, construction, leasing, management and ownership of a predominantly industrial rental portfolio of properties in North America and Europe leased primarily to Magna and its automotive operating units. Members of the Magna International Inc. group of companies are our primary tenants. Its web site is here Granite REIT.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
In 2012 the company changed its name from MI Developments (TSX-MIM.A) to Granite Real Estate (TSX-GRT.UN; NYSE-GRP.U) and it got rid of all its investments that were not in real estate. Because of this revenue dropped. If you look at the company, Revenue per Share is down by 27% and 15% per year over the past 5 and 10 years.
If you look at just Real Estate Revenue per Share, it is down by 5.7% over the past 5 years, but up by 3.33% over the past 10 years. Analysts expect that revenues will continue to grow at just north of 8% per year in 2014 and 2015. If you look at the second quarter, revenue is going in the right direction.
When this stock was turning into a REIT, the dividends were hiked up at 400% in the later part of 2011. At that time dividends were paid in US$ and quarterly. Dividends were changed to CDN$ in 2012. In 2013, dividend payments were changed to a monthly mode of payment. Dividend growth over the past 5 and 10 years come in at 21% and 18% per year. However, this will not be the rate going forward because of the one big dividend hike in the later part of 2011.
The last dividend increase was in 2014 and it was for 4.6%. When the dividends were changed to monthly, only 11 payments were made in 2013 because of the timing of the dividend payments. The dividend yield is still quite good as the current yield is at 5.55%.
Not only has this company changed the reporting currency, but in 2013, the company changed their accounting rules from US GAAP to IFRS (the current Canadian standard). This makes it more difficult to really compare values over time. On the other hand, accounting rules seem to change almost every year.
Over the past 5 and 10 years, the outstanding shares have not changed. Shares have increased due to stock options and have decreased due to Buy Backs. I have already covered revenue above. For EPS, if you look at 5 year running averages over the past 5 and 8 years, it has grown at the rate of 22% and 73% per year. Note that there have been a number of years of losses, with 4 years of losses in the past 10 years.
However, if you look at Funds From Operations (FFO), which this company consistently reports on, the FFO per Share is down by 8.8% and up by 2.4% per year over the past 5 and 10 years.
The growth in cash flow is not anywhere near the same as for earnings, with growth over the past 5 and 10 years at 3% and 4% per year. If you look at 5 year running averages, the growth is at 10% and 7% per year over the past 5 and 9 years. There are no years of negative cash flow.
I cannot get a fix on the Price/Earnings per Share Ratios because of the number of negative earnings years. However, the current P/E Ratio of 12.03 is not very high. This is based on a stock price of $39.57 and 2014 EPS estimate of 3.29.
There is a problem as this company always reports the FFO but not always the EPS, so the estimates may not be really for EPS. However, the 5 year median P/FFO Ratio is 13.10 and this is below the current P/E Ratio of 12.03.
The 10 year Price/Book Value per Share is 0.95 and the current one is at 1.12 a value some 18% higher. This still puts the current P/B Ratio in the reasonableness range, but towards the top end of this range. However, a P/B Ratio of 1.12 is rather low.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. Most of the recommendations are a Hold, but the consensus would be a Buy. The 12 month stock price consensus is $43.30. This implies a total return of 14.98% with 5.55% from dividends and 9.43% from capital gain.
On BBN News Derek Warren, Portfolio Manager at Morguard Financial Corp. recommends Granite REIT as a core stock. He likes the fact that its core tenant is Magna International.
Sound bit for Twitter and StockTwits is: REIT at reasonable price. I think that the price of this REIT is currently reasonable. The company has a good main tenant and this is a plus. See my spreadsheet at grt.htm.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.
Granite is a global real estate operating company engaged principally in the acquisition, development, construction, leasing, management and ownership of a predominantly industrial rental portfolio of properties in North America and Europe leased primarily to Magna and its automotive operating units. Members of the Magna International Inc. group of companies are our primary tenants. Its web site is here Granite REIT.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
Thursday, September 25, 2014
Enbridge Income Fund Holdings Inc.
I do not own this stock of Enbridge Income Fund Holdings Inc. (TSX-ENF, OTC-EBGUF). I have followed this stock for some time but I have not owned it. I do own Enbridge Inc. (TSX-ENB, NYSE-ENB). Enbridge Inc. has investments in this company and Enbridge Income Fund
What I hate about reviewing this stock is that it is complicated. The problem with complexity is that it is easy to miss something important. Just looking at the stock's financial statements does not give you the whole picture. You have to also review the financials for Enbridge Income Fund in which this fund is invested.
If you look at the total return for shareholders they have done well. Over the 5 and 10 years the total return on this fund is 24.94% and 13.82% per year with 18.02% and 8.13% from capital gains and 5.70% and 6.92/% from dividends.
Dividends are good and the growth in dividends is moderate. The 5 year median dividend yield 6.39%, but the current one is much lower at 4.52%. The current dividend yield is also lower than the historical (or 10 year low) of 5.28%. This fund has just been on the TSX since 2003. Dividends have grown at 5.8% and 5% per year over the past 5 and 10 years.
The Dividend Payout Ratios are fine as they can payout most of what they received from the Enbridge Income Fund. The 5 year median DPR for EPS is at 87% and the 5 year median DPR for CFPS is 82%.
The Enbridge Income Fund in which this stock is invested seems to be paying out to its shareholders much more than they are earning. This feeds into the fact that there is a negative book value and I do not like negative book values on a stock. However, they are not paying out more than their cash flow and it is an income fund.
The 5 year median Price/Earnings per Share Ratios are 14.52, 15.81 and 17.10. The current P/E Ratios is 21.29 based on a stock price of $30.45 and 2014 EPS estimate of $1.43. This stock price test suggests that this stock is relatively expensive.
I get a Graham Price of $29.44. The 10 year Price/Graham Price Ratios are 0.84, 1.02 and 1.20. The current P/GP Ratio is 1.03. This stock price test suggests that this stock is relatively reasonable.
I get a 10 year median Price/Book Value per Share Ratio of 1.36 and the current P/B Ratio at 1.13 is some 17% lower. The current P/B Ratio is based on a stock price of $30.45 and a BVPS of $26.94. This stock price test suggests that this stock is relatively reasonable.
However, when you look at dividend yield, the current dividend yield at 4.52% is 30% lower than the 5 year median dividend yield of 6.39% and 45% lower than the historical average dividend yield of 8.32% and 35% lower than the historical median dividend yield of 7%.
When I look at analysts' recommendations, I find Buy, Hold and Underperform recommendations. The consensus recommendation is a Hold. The majority of the recommendations are a Hold and the consensus recommendation is a Hold. The 12 month stock price is $28.30. This is some 7% before the current stock price. The total return would be a negative 2.54% with dividend of 4.52% and a capital loss of 7.06%.
There is an interest press release on Market Wire about Enbridge Income Fund entering into a $1.76 Billion transaction With Enbridge Inc. for natural gas and diluent pipeline interests. The site Energy Global also talks about Enbridge Inc. transfer of a package of natural gas and diluent pipeline interests to ENF.
Sound bit for Twitter and StockTwits is: Complex and expensive. It is complex enough to evaluate the financial statement of a stock. Here you have to evaluate two stocks and also the inter-reaction of these two stocks or funds. I am always worried that I have missed something important when a stock is complex to evaluate. (I also worry a bit about this in connection with my investment in Enbridge Inc. also.)
In any event, I have enough invested in Enbridge Inc. without putting money into this stock also. Enbridge Inc. holds interests in both Enbridge Income Fund Holdings Inc. and Enbridge Income Fund. Talk about being complex. However, my investment in Enbridge Inc. is also the main reason I follow both Enbridge Income Fund Holdings Inc. and Enbridge Income Fund. See my spreadsheet at enf.htm and my spreadsheet on Enbridge Income Fund at enbif.htm.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow. I am still trying to catch up to where I should be in reviewing my list of stocks.
Enbridge Income Fund Holdings Inc. is a publicly traded corporation. The Company, through its investment in Enbridge Income Fund, holds high quality, low risk energy infrastructure assets. The Fund's assets include a 50% interest in the Canadian segment of the Alliance Pipeline, a 100% interest in the various pipelines comprising the Saskatchewan System, and interests in more than 400 megawatts of renewable and alternative power generation capacity. Its web site is here Enbridge Income Fund Holdings.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
What I hate about reviewing this stock is that it is complicated. The problem with complexity is that it is easy to miss something important. Just looking at the stock's financial statements does not give you the whole picture. You have to also review the financials for Enbridge Income Fund in which this fund is invested.
If you look at the total return for shareholders they have done well. Over the 5 and 10 years the total return on this fund is 24.94% and 13.82% per year with 18.02% and 8.13% from capital gains and 5.70% and 6.92/% from dividends.
Dividends are good and the growth in dividends is moderate. The 5 year median dividend yield 6.39%, but the current one is much lower at 4.52%. The current dividend yield is also lower than the historical (or 10 year low) of 5.28%. This fund has just been on the TSX since 2003. Dividends have grown at 5.8% and 5% per year over the past 5 and 10 years.
The Dividend Payout Ratios are fine as they can payout most of what they received from the Enbridge Income Fund. The 5 year median DPR for EPS is at 87% and the 5 year median DPR for CFPS is 82%.
The Enbridge Income Fund in which this stock is invested seems to be paying out to its shareholders much more than they are earning. This feeds into the fact that there is a negative book value and I do not like negative book values on a stock. However, they are not paying out more than their cash flow and it is an income fund.
The 5 year median Price/Earnings per Share Ratios are 14.52, 15.81 and 17.10. The current P/E Ratios is 21.29 based on a stock price of $30.45 and 2014 EPS estimate of $1.43. This stock price test suggests that this stock is relatively expensive.
I get a Graham Price of $29.44. The 10 year Price/Graham Price Ratios are 0.84, 1.02 and 1.20. The current P/GP Ratio is 1.03. This stock price test suggests that this stock is relatively reasonable.
I get a 10 year median Price/Book Value per Share Ratio of 1.36 and the current P/B Ratio at 1.13 is some 17% lower. The current P/B Ratio is based on a stock price of $30.45 and a BVPS of $26.94. This stock price test suggests that this stock is relatively reasonable.
However, when you look at dividend yield, the current dividend yield at 4.52% is 30% lower than the 5 year median dividend yield of 6.39% and 45% lower than the historical average dividend yield of 8.32% and 35% lower than the historical median dividend yield of 7%.
When I look at analysts' recommendations, I find Buy, Hold and Underperform recommendations. The consensus recommendation is a Hold. The majority of the recommendations are a Hold and the consensus recommendation is a Hold. The 12 month stock price is $28.30. This is some 7% before the current stock price. The total return would be a negative 2.54% with dividend of 4.52% and a capital loss of 7.06%.
There is an interest press release on Market Wire about Enbridge Income Fund entering into a $1.76 Billion transaction With Enbridge Inc. for natural gas and diluent pipeline interests. The site Energy Global also talks about Enbridge Inc. transfer of a package of natural gas and diluent pipeline interests to ENF.
Sound bit for Twitter and StockTwits is: Complex and expensive. It is complex enough to evaluate the financial statement of a stock. Here you have to evaluate two stocks and also the inter-reaction of these two stocks or funds. I am always worried that I have missed something important when a stock is complex to evaluate. (I also worry a bit about this in connection with my investment in Enbridge Inc. also.)
In any event, I have enough invested in Enbridge Inc. without putting money into this stock also. Enbridge Inc. holds interests in both Enbridge Income Fund Holdings Inc. and Enbridge Income Fund. Talk about being complex. However, my investment in Enbridge Inc. is also the main reason I follow both Enbridge Income Fund Holdings Inc. and Enbridge Income Fund. See my spreadsheet at enf.htm and my spreadsheet on Enbridge Income Fund at enbif.htm.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow. I am still trying to catch up to where I should be in reviewing my list of stocks.
Enbridge Income Fund Holdings Inc. is a publicly traded corporation. The Company, through its investment in Enbridge Income Fund, holds high quality, low risk energy infrastructure assets. The Fund's assets include a 50% interest in the Canadian segment of the Alliance Pipeline, a 100% interest in the various pipelines comprising the Saskatchewan System, and interests in more than 400 megawatts of renewable and alternative power generation capacity. Its web site is here Enbridge Income Fund Holdings.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
Wednesday, September 24, 2014
Canyon Services Group
On my other blog I am today writing about Canadian Dividend Growth Stock lists continue...
I do not own this stock of Canyon Services Group (TSX-FRC, OTC-CYSVF). I get a newsletter weekly from MPL Communications called Advice Hotline. They wrote up this stock on July 19, 2012 and I was impressed with it so I did a spreadsheet. You can sign up for this newsletter at their site.
The financial year of 2013 was not a good one for this company. Revenue, earnings and cash flow were all down. The earnings turn negative in 2013. However, this is a rather young company having just been started in 2004 and on the stock exchange since 2006. It is not uncommon for companies to have negative earnings in their early years.
The stock price is up substantially from the lows of 2008 with total return since 2008 at 195% per year. However, the gains were mostly made in 2010 and not much progress has been made since then except for 2014 and so far the stock is up some 16.5%.
The 5 and 8 year total returns to date is at 48.46% per year and 15.92% per year. The dividend portion of this total return is at 5.57% and 2.04% per year over these periods. The capital gains portion of this total return is at 42.89% and 13.88% per year over these periods.
Note that dividends were only started in 2010. The dividends have risen quite fast from then as they were up by 156% in 2012 and by 17% in 2013. There has been no increase in 2014 and analysts do not expect any in the near term. This was probably because this company has an earnings loss in 2013. Even the CFPS could not cover the dividend in 2013.
Over the past 9 years, this company had 4 years of earnings losses. Over the past 5 years they had two years of earning losses, 2009 and 2013. When there was a positive Return on Equity, it was above 10%. Debt Ratios are quite good.
Because of earning losses, I can get no fix on any historical Price/Earnings Ratios. However, the current one is 22.22 based on a stock price of $14.00 and 2014 EPS estimate of $0.63. This is not a particularly high one, nor is it particularly low.
I get a Graham Price of $7.99. The 9 year Price/Graham Price Ratios are 0.63, 0.96 and 1.31. The current P/BP Ratio is 1.75. This stock price test suggests that the stock price is relatively expensive.
The 3 year median dividend yield is 4.29% and the current dividend yield is 4.29%. This stock price test suggests that the stock price is relatively reasonable.
The 10 year median Price/Book Value per Share Ratio is 1.61 and the current one of 3.11 is some 94% higher. The current P/B Ratio is based on a stock price of $14.00 and BVPS of $4.50. This stock price test suggests that the stock price is relatively expensive.
The 8 year Price/Cash Flow per Share Ratio is 6.74 and the current one is 9.93 which is some 47% higher. The 8 year Price/Sales Ratio is 1.97 and the current P/S Ratio at 1.64 is some 17% lower. The P/CF Ratio test suggests that the stock is relatively expensive and the P/S Ratio test suggests that the stock price is relatively reasonable (and getting towards cheap.)
On a relatively basis, this stock had some rather low ratios in the past, however, none of the current ratios are particularly high, so it would seem that the stock price is probably still reasonable.
When I look at analyst's recommendations, I find Strong Buy, Buy and Hold recommendations. Most of the recommendations are a Buy recommendation and the consensus recommendation would a Buy recommendation. The 12 month stock price consensus is $21.40. This implies a total return of 57.14% with 4.29% from dividends and 52.86% from capital gains.
There is a recent positive report on this company at Seeking Alpha. An article in the Cooper Mirror starts off with talking about this company missing its second quarterly estimates, but ends up talking positively about this company's future. A June 2014 article in the Calgary Herald talks about this company buying Fraction Energy Services Ltd.
Sound bit for Twitter and StockTwits is: Dividend Paying Resource Service Stock. This stock could become a dividend growth stock, but it is too early to tell. I would think that the current price could be reasonable. See my spreadsheet at frc.htm.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.
Canyon Services Group Inc. is a fast-growing company providing hydraulic fracturing and other well-stimulation services, including coiled tubing, acidizing, cementing, nitrogen and CO², to oil and natural gas producers developing a variety of play types across Western Canada. Its web site is here Canyon Services.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
I do not own this stock of Canyon Services Group (TSX-FRC, OTC-CYSVF). I get a newsletter weekly from MPL Communications called Advice Hotline. They wrote up this stock on July 19, 2012 and I was impressed with it so I did a spreadsheet. You can sign up for this newsletter at their site.
The financial year of 2013 was not a good one for this company. Revenue, earnings and cash flow were all down. The earnings turn negative in 2013. However, this is a rather young company having just been started in 2004 and on the stock exchange since 2006. It is not uncommon for companies to have negative earnings in their early years.
The stock price is up substantially from the lows of 2008 with total return since 2008 at 195% per year. However, the gains were mostly made in 2010 and not much progress has been made since then except for 2014 and so far the stock is up some 16.5%.
The 5 and 8 year total returns to date is at 48.46% per year and 15.92% per year. The dividend portion of this total return is at 5.57% and 2.04% per year over these periods. The capital gains portion of this total return is at 42.89% and 13.88% per year over these periods.
Note that dividends were only started in 2010. The dividends have risen quite fast from then as they were up by 156% in 2012 and by 17% in 2013. There has been no increase in 2014 and analysts do not expect any in the near term. This was probably because this company has an earnings loss in 2013. Even the CFPS could not cover the dividend in 2013.
Over the past 9 years, this company had 4 years of earnings losses. Over the past 5 years they had two years of earning losses, 2009 and 2013. When there was a positive Return on Equity, it was above 10%. Debt Ratios are quite good.
Because of earning losses, I can get no fix on any historical Price/Earnings Ratios. However, the current one is 22.22 based on a stock price of $14.00 and 2014 EPS estimate of $0.63. This is not a particularly high one, nor is it particularly low.
I get a Graham Price of $7.99. The 9 year Price/Graham Price Ratios are 0.63, 0.96 and 1.31. The current P/BP Ratio is 1.75. This stock price test suggests that the stock price is relatively expensive.
The 3 year median dividend yield is 4.29% and the current dividend yield is 4.29%. This stock price test suggests that the stock price is relatively reasonable.
The 10 year median Price/Book Value per Share Ratio is 1.61 and the current one of 3.11 is some 94% higher. The current P/B Ratio is based on a stock price of $14.00 and BVPS of $4.50. This stock price test suggests that the stock price is relatively expensive.
The 8 year Price/Cash Flow per Share Ratio is 6.74 and the current one is 9.93 which is some 47% higher. The 8 year Price/Sales Ratio is 1.97 and the current P/S Ratio at 1.64 is some 17% lower. The P/CF Ratio test suggests that the stock is relatively expensive and the P/S Ratio test suggests that the stock price is relatively reasonable (and getting towards cheap.)
On a relatively basis, this stock had some rather low ratios in the past, however, none of the current ratios are particularly high, so it would seem that the stock price is probably still reasonable.
When I look at analyst's recommendations, I find Strong Buy, Buy and Hold recommendations. Most of the recommendations are a Buy recommendation and the consensus recommendation would a Buy recommendation. The 12 month stock price consensus is $21.40. This implies a total return of 57.14% with 4.29% from dividends and 52.86% from capital gains.
There is a recent positive report on this company at Seeking Alpha. An article in the Cooper Mirror starts off with talking about this company missing its second quarterly estimates, but ends up talking positively about this company's future. A June 2014 article in the Calgary Herald talks about this company buying Fraction Energy Services Ltd.
Sound bit for Twitter and StockTwits is: Dividend Paying Resource Service Stock. This stock could become a dividend growth stock, but it is too early to tell. I would think that the current price could be reasonable. See my spreadsheet at frc.htm.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.
Canyon Services Group Inc. is a fast-growing company providing hydraulic fracturing and other well-stimulation services, including coiled tubing, acidizing, cementing, nitrogen and CO², to oil and natural gas producers developing a variety of play types across Western Canada. Its web site is here Canyon Services.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
Tuesday, September 23, 2014
Canadian Utilities Ltd.
I do not own this stock of Canadian Utilities Ltd. (TSX-CU, OTC-CDUAF). I started to follow this stock in January of 2009 because it was on the Dividend Achievers list, the Dividend Aristocrats list and was also on Mike Higgs' dividend growth list at that time. The Dividend Achievers list is now called the NASDAQ Broad Canadian Dividend Achievers Index (DACA). The Dividend Aristocrats list is now an index on the TSX.
Lists of good dividend growth stock change over the years. Not only are stocks constantly added and deleted, but who owns the lists and where they are keep changing. However, this stock has been increasing their dividends yearly since at least 1990 where my spreadsheet records start.
The dividend yield is moderate as are the increases. The current dividend yield is 2.71% and the 5 year median dividend yield is 2.84%. The 5 and 10 year dividend growth is at 7.84% and 6.64% per year over the past 5 and 10 years.
The Dividend Payout Ratios are also good on this stock with the 5 year median DPR for EPS at 43.8% and for CFPS at 15.6%. The DPRs for 2013 were at 46.4% for EPS and at 15% for CFPS.
Return on Equity is fine, but the comprehensive income ROE is lower than the net income ROE. 5 year median ROE on net income is 12.9% and 5 year median ROE on comprehensive income is 10.2%. Debt Ratios are fine, but the company does depend on cash flow to get a good Liquidity Ratio.
Outstanding shares have not changed over the past 5 and 10 years. The best growth is on cash flow, then earnings and then revenue. I have a concern about the growth of revenue as it is much lower than that for earnings and cash flow. However, analysts do expect better growth over the next 2 years at just over 8% each year.
Revenue per Share growth is at 3.2% per year over the past 5 years and has declined by 1.3% per year over the past 10 years. The EPS has grown at 5% and 7.5% per year over the past 5 and 10 years. Cash Flow per Share has grown at 15.1% and 12% per year over the past 5 and 10 years.
ATCO says that they own some 88.1% of this company. The Southern family owns shares worth in the millions, but not a high percentage of outstanding shares. For example, Ronald Southern owns shares worth around $48.6M. There are lots of outstanding stock options. However, outstanding shares were just increased by 0.07% and 0.05% in 2013 and 2012 for stock options.
The 5 year low, median and high median Price/Earnings Ratios are 13.45, 15.52 and 17.42. The 10 year corresponding values are similar. The current P/E Ratio is 16.23 based on a stock price of $39.44 and 2014 EPS estimate of $2.43. This stock price test suggests that the stock price is relatively reasonable.
The 5 year median dividend yield is 2.84% and the current dividend of 2.71% is just 4.5% lower. This stock price test suggests that the current stock price is relatively reasonable. However, historically, dividend yield has been higher and the historical median dividend yield is 3.76% a value some 28% higher than the current dividend yield.
When I look at analysts' recommendations, I find Buy and Hold recommendations. The consensus recommendation is a Buy as are most of the recommendations. The 12 month stock price consensus is $43.70. This implies a total return of 13.51% with 2.71% from dividend and $10.80% from capital gains.
Sound bit for Twitter and StockTwits is: Utility Dividend Growth Stock. See my spreadsheet at cu.htm.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.
Canadian Utilities Limited operates in four business segments: regulated natural gas operations; regulated electric operations; technologies; and power generation. These operations provide service to industrial, residential and commercial customers. Other businesses consist of natural gas gathering, processing, storage and natural gas supply management and technical facilities management. Its web site is here Canadian Utilities.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
Lists of good dividend growth stock change over the years. Not only are stocks constantly added and deleted, but who owns the lists and where they are keep changing. However, this stock has been increasing their dividends yearly since at least 1990 where my spreadsheet records start.
The dividend yield is moderate as are the increases. The current dividend yield is 2.71% and the 5 year median dividend yield is 2.84%. The 5 and 10 year dividend growth is at 7.84% and 6.64% per year over the past 5 and 10 years.
The Dividend Payout Ratios are also good on this stock with the 5 year median DPR for EPS at 43.8% and for CFPS at 15.6%. The DPRs for 2013 were at 46.4% for EPS and at 15% for CFPS.
Return on Equity is fine, but the comprehensive income ROE is lower than the net income ROE. 5 year median ROE on net income is 12.9% and 5 year median ROE on comprehensive income is 10.2%. Debt Ratios are fine, but the company does depend on cash flow to get a good Liquidity Ratio.
Outstanding shares have not changed over the past 5 and 10 years. The best growth is on cash flow, then earnings and then revenue. I have a concern about the growth of revenue as it is much lower than that for earnings and cash flow. However, analysts do expect better growth over the next 2 years at just over 8% each year.
Revenue per Share growth is at 3.2% per year over the past 5 years and has declined by 1.3% per year over the past 10 years. The EPS has grown at 5% and 7.5% per year over the past 5 and 10 years. Cash Flow per Share has grown at 15.1% and 12% per year over the past 5 and 10 years.
ATCO says that they own some 88.1% of this company. The Southern family owns shares worth in the millions, but not a high percentage of outstanding shares. For example, Ronald Southern owns shares worth around $48.6M. There are lots of outstanding stock options. However, outstanding shares were just increased by 0.07% and 0.05% in 2013 and 2012 for stock options.
The 5 year low, median and high median Price/Earnings Ratios are 13.45, 15.52 and 17.42. The 10 year corresponding values are similar. The current P/E Ratio is 16.23 based on a stock price of $39.44 and 2014 EPS estimate of $2.43. This stock price test suggests that the stock price is relatively reasonable.
The 5 year median dividend yield is 2.84% and the current dividend of 2.71% is just 4.5% lower. This stock price test suggests that the current stock price is relatively reasonable. However, historically, dividend yield has been higher and the historical median dividend yield is 3.76% a value some 28% higher than the current dividend yield.
When I look at analysts' recommendations, I find Buy and Hold recommendations. The consensus recommendation is a Buy as are most of the recommendations. The 12 month stock price consensus is $43.70. This implies a total return of 13.51% with 2.71% from dividend and $10.80% from capital gains.
Sound bit for Twitter and StockTwits is: Utility Dividend Growth Stock. See my spreadsheet at cu.htm.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.
Canadian Utilities Limited operates in four business segments: regulated natural gas operations; regulated electric operations; technologies; and power generation. These operations provide service to industrial, residential and commercial customers. Other businesses consist of natural gas gathering, processing, storage and natural gas supply management and technical facilities management. Its web site is here Canadian Utilities.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
Monday, September 22, 2014
Wajax Corp.
On my other blog I am today writing about why revenue is important continue...
I do not own this stock of Wajax Corp. (TSX-WJX, OTC-WJXFF). TD Waterhouse put out a report on good dividend paying stocks to own in November 2011. This was a stock they named. I had not heard of it before, so I decided to investigate it.
2013 was not a good year for this company. Revenues, earnings and cash flow declined as did dividend payments and stock price. The dividends declined by almost 26%. The company was just paying out too much in dividends compared to earnings and cash flow. Analysts do not expect that there will be an increase in dividend over the next few years.
However, analysts do not seem to feel that the dividend is still at risk of another cut. Analysts do not seem to feel that 2014 will be a good year for this company either. However, they feel that the company will start to pick up in 2015.
On the positive side, the 5 and 10 year total return for this company is at 22.38% and 26.72% per year with 11.96% and 10.46% per year from capital gains and 10.42 and 16.26% per year from dividends. Also, the company has paid out special dividends when they could afford to.
The Return on Equity was above 10% each year over the past 9 years and the one for 2013 was at 19.4% and has a 5 year median value of $27.3%. The ROE on comprehensive income was 20% for 2013 and this company has a 5 year median ROE of 27%.
The Debt Ratios are fine on this company.
The 5 year low, median and high median Price/Earnings per Share Ratios are 7.54, 9.61 and 11.75. The 10 year values are similar. The current P/E Ratio is at 14.83 based on a stock price of $38.41 and 2014 EPS estimate of $2.59. This stock price test suggests that the stock is relatively expensive. However, a P/E Ratio of 14.83 on an absolute basis is not particularly high.
The 10 year Price/Book Value per Share Ratio is 2.54 and the current P/B Ratio is 2.62 based on a Book Value of $14.67 and a stock price of $38.41. The current P/B Ratio is only 3.1% higher than the 10 year median P/B Ratio and therefore suggests that the stock price is reasonable.
Using dividend yields, the stock is reasonable on some measures. The 5 year median dividend yield is 6.62% and the current dividend yield at 6.25% is just 5.7% lower. The historical median dividend yield is 6.92% and the current dividend yield of $6.25% is some 9.7% lower. This stock price test suggests that the stock is still within a reasonable range.
For this stock, in the stock price tests that use estimates, the stock price is mostly expensive such as with the P/E Ratio and P/CF Ratio tests. However, where no estimates are used, such as the P/B Ratio and dividend yield tests, the stock price is reasonable.
There is a couple of interesting things. At the end of 2013 for insider trading there was insider buying of shares at $426,025. There has been no insider selling over the past year. The above insider buying occurred around a price of $35.50. There is some insider ownership. For example, the CEO owns shares worth around $1.9M and the CFO owns shares worth around $0.8M.
When I look at analysts' recommendations, I find Buy and Hold recommendations. The consensus recommendation would be a Hold. The 12 month stock price is $38.60. This implies a total return of 6.74% with 6.25% from dividends and just 0.49% from capital gains.
There is a recent article in WKRB about analysts at Raymond James changing their recommendation of market perform or a Hold recommendation to an outperform recommendation or Buy recommendation. There is a recent Newswire announcement of this company amending its bank credit facility, extending the maturity a further three years to August 12, 2019 on more favorable terms than its previous agreement.
Sound bit for Twitter and StockTwits is: Good dividend stock, just not dividend growth. I think that cutting the dividend was a prudent act on the part of management. It is obvious from the history of this company that the dividend will vary. Over the past 5 and 10 years shareholders have had the dividend portion of the total return at 10.42% and 16.26%. This shows that shareholders can and have received good dividends with this company. See my spreadsheet at wjx.htm.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.
Wajax is a leading Canadian distributor and service support provider of mobile equipment, industrial components and power systems. Reflecting a diversified exposure to the Canadian economy, Wajax has three distinct business divisions. The organization's customer base covers core sectors of the Canadian economy - mining, oil and gas, forestry, construction, manufacturing, industrial processing, transportation and utilities. Its web site is here Wajax.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
I do not own this stock of Wajax Corp. (TSX-WJX, OTC-WJXFF). TD Waterhouse put out a report on good dividend paying stocks to own in November 2011. This was a stock they named. I had not heard of it before, so I decided to investigate it.
2013 was not a good year for this company. Revenues, earnings and cash flow declined as did dividend payments and stock price. The dividends declined by almost 26%. The company was just paying out too much in dividends compared to earnings and cash flow. Analysts do not expect that there will be an increase in dividend over the next few years.
However, analysts do not seem to feel that the dividend is still at risk of another cut. Analysts do not seem to feel that 2014 will be a good year for this company either. However, they feel that the company will start to pick up in 2015.
On the positive side, the 5 and 10 year total return for this company is at 22.38% and 26.72% per year with 11.96% and 10.46% per year from capital gains and 10.42 and 16.26% per year from dividends. Also, the company has paid out special dividends when they could afford to.
The Return on Equity was above 10% each year over the past 9 years and the one for 2013 was at 19.4% and has a 5 year median value of $27.3%. The ROE on comprehensive income was 20% for 2013 and this company has a 5 year median ROE of 27%.
The Debt Ratios are fine on this company.
The 5 year low, median and high median Price/Earnings per Share Ratios are 7.54, 9.61 and 11.75. The 10 year values are similar. The current P/E Ratio is at 14.83 based on a stock price of $38.41 and 2014 EPS estimate of $2.59. This stock price test suggests that the stock is relatively expensive. However, a P/E Ratio of 14.83 on an absolute basis is not particularly high.
The 10 year Price/Book Value per Share Ratio is 2.54 and the current P/B Ratio is 2.62 based on a Book Value of $14.67 and a stock price of $38.41. The current P/B Ratio is only 3.1% higher than the 10 year median P/B Ratio and therefore suggests that the stock price is reasonable.
Using dividend yields, the stock is reasonable on some measures. The 5 year median dividend yield is 6.62% and the current dividend yield at 6.25% is just 5.7% lower. The historical median dividend yield is 6.92% and the current dividend yield of $6.25% is some 9.7% lower. This stock price test suggests that the stock is still within a reasonable range.
For this stock, in the stock price tests that use estimates, the stock price is mostly expensive such as with the P/E Ratio and P/CF Ratio tests. However, where no estimates are used, such as the P/B Ratio and dividend yield tests, the stock price is reasonable.
There is a couple of interesting things. At the end of 2013 for insider trading there was insider buying of shares at $426,025. There has been no insider selling over the past year. The above insider buying occurred around a price of $35.50. There is some insider ownership. For example, the CEO owns shares worth around $1.9M and the CFO owns shares worth around $0.8M.
When I look at analysts' recommendations, I find Buy and Hold recommendations. The consensus recommendation would be a Hold. The 12 month stock price is $38.60. This implies a total return of 6.74% with 6.25% from dividends and just 0.49% from capital gains.
There is a recent article in WKRB about analysts at Raymond James changing their recommendation of market perform or a Hold recommendation to an outperform recommendation or Buy recommendation. There is a recent Newswire announcement of this company amending its bank credit facility, extending the maturity a further three years to August 12, 2019 on more favorable terms than its previous agreement.
Sound bit for Twitter and StockTwits is: Good dividend stock, just not dividend growth. I think that cutting the dividend was a prudent act on the part of management. It is obvious from the history of this company that the dividend will vary. Over the past 5 and 10 years shareholders have had the dividend portion of the total return at 10.42% and 16.26%. This shows that shareholders can and have received good dividends with this company. See my spreadsheet at wjx.htm.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.
Wajax is a leading Canadian distributor and service support provider of mobile equipment, industrial components and power systems. Reflecting a diversified exposure to the Canadian economy, Wajax has three distinct business divisions. The organization's customer base covers core sectors of the Canadian economy - mining, oil and gas, forestry, construction, manufacturing, industrial processing, transportation and utilities. Its web site is here Wajax.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
Friday, September 19, 2014
Telus Corp.
I do not own this stock of Telus Corp. (TSX-T, NYSE-TU). I started to follow this stock because of a list of stock John Sartz talked about in 2008. At the Toronto Money Shows in 2009 and 2010 Aaron Dunn from KeyStone Financial Publishing Corp talked about having recommended this stock.
Aaron Dunn says he likes companies with resilient business models, which are profitable and are growing their earnings. He also like companies with strong management teams, health balance sheets and compelling valuations. They look at the P/E and the Price/Cash Flow ratios. Telus Corp (TSX-T) was one of three stocks he recommended in 2009.
What you first notice about this company is that growth in revenue, earnings and cash flow is better over the last 10 years than over the last 5 years. This is most notable with earnings and cash flows. The number of outstanding shares have move slightly lower over the past 5 and 10 years and shares have decrease by 0.38% and 1.2% over these periods.
If you look at growth in revenue per share it is at 3.8% and 6.1% per year over the past 5 and 10 years. EPS has grown at 2.8% and 16% per year over the past 5 and 10 years. It is not surprising that EPS growth has slowed and growth in revenue was much lower over the last 10 years. CFPS has grown at 2% and 5% per year over past 5 and 10 years.
Dividends are also growing faster than revenue. The dividends have grown at the rate of 8% and 18% per year over the past 5 and 10 years. Dividends were increased twice in 2014 for growth at 5.9% and 5.6% for a total growth of 11.8% for 2014.
The 5 year median Dividend Payout Ratios are 60.50% and 24.50% for EPS and CFPS. The DPRs for 2013 were not far off with DRP for EPS at 65% and for CFPS at 26.9%. This stock is generating a good dividend yield and good growth in dividends. The current dividend yield is 3.81% and the 5 year median is 4.17%. As I have mentioned above, dividends have grown at 8% and 18% over the past 5 and 10 years.
The Return on Equity has been over 10% each year of the last 5 years. The ROE for 2013 was at 16.1% and the 5 year median is 16.1%. The comprehensive income and net income varies a lot. For 2013 the ROE on Comprehensive Income was 28.5% a value some 76% higher. However, ROE on comprehensive income was 28% lower than that for net income in 2012.
The debt ratios are ok, but the company relies on cash flow to cover current liabilities. The Liquidity Ratio for 2013 was just 0.71. This means that current assets cannot cover current liabilities. If you add it cash flow after dividends, the ratio is 1.02. The Debt Ratio is 1.59. Leverage and Debt/Equity Ratios for 2013 were at 2.69 and 1.69.
The 5 year low, median and high median Price/Earnings per Share Ratios are 12.17, 13.79 and 15.41. The corresponding 10 year values are slightly higher at 13.45, 15.38 and 16.94. The current P/E ratio is 16.96 based on a stock price of $39.85 and 2014 EPS estimate of $2.35. This stock price test suggests that this stock is expensive.
I get a Graham Price of $26.48 and the 10 year low, median and high medina Price/Graham Price Ratios are 1.08, 1.24 and 1.43. The current P/GP Ratio is 1.51 based on a stock price of $39.85. This stock price test suggests that this stock is expensive.
However, if you look at dividend yield, it is suggesting that the stock price maybe reasonable. The 5 year median Dividend Yield of 4.71% is just 8.5% higher than the current Dividend Yield of 3.81%. The historical average Dividend yield is 4.12% and the historical median Dividend Yield is 3.91%. These are just 7.3% and 2.5% higher than the Current Dividend yield.
When I look at analysts' recommendations I find Buy and Hold recommendations. The consensus recommendation would be a Buy. The 12 month target stock price is $43.70. This implies a total return of 13.48% with 3.81% from dividends and 9.66% from capital gains.
There is an interesting article in the Toronto Star about this company issuing a first transparency report. There is a recent Motley Fool report about why this stock is a must have one for dividend investors.
Sound bit for Twitter and StockTwits is: Dividend growth stock in Telecom sector. See my spreadsheet at tel.htm.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.
Telus is a national telecommunications company in Canada. Telus provides a wide range of communications products and services including data, Internet protocol (IP), voice, entertainment and video. Its web site is here Telus.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
Aaron Dunn says he likes companies with resilient business models, which are profitable and are growing their earnings. He also like companies with strong management teams, health balance sheets and compelling valuations. They look at the P/E and the Price/Cash Flow ratios. Telus Corp (TSX-T) was one of three stocks he recommended in 2009.
What you first notice about this company is that growth in revenue, earnings and cash flow is better over the last 10 years than over the last 5 years. This is most notable with earnings and cash flows. The number of outstanding shares have move slightly lower over the past 5 and 10 years and shares have decrease by 0.38% and 1.2% over these periods.
If you look at growth in revenue per share it is at 3.8% and 6.1% per year over the past 5 and 10 years. EPS has grown at 2.8% and 16% per year over the past 5 and 10 years. It is not surprising that EPS growth has slowed and growth in revenue was much lower over the last 10 years. CFPS has grown at 2% and 5% per year over past 5 and 10 years.
Dividends are also growing faster than revenue. The dividends have grown at the rate of 8% and 18% per year over the past 5 and 10 years. Dividends were increased twice in 2014 for growth at 5.9% and 5.6% for a total growth of 11.8% for 2014.
The 5 year median Dividend Payout Ratios are 60.50% and 24.50% for EPS and CFPS. The DPRs for 2013 were not far off with DRP for EPS at 65% and for CFPS at 26.9%. This stock is generating a good dividend yield and good growth in dividends. The current dividend yield is 3.81% and the 5 year median is 4.17%. As I have mentioned above, dividends have grown at 8% and 18% over the past 5 and 10 years.
The Return on Equity has been over 10% each year of the last 5 years. The ROE for 2013 was at 16.1% and the 5 year median is 16.1%. The comprehensive income and net income varies a lot. For 2013 the ROE on Comprehensive Income was 28.5% a value some 76% higher. However, ROE on comprehensive income was 28% lower than that for net income in 2012.
The debt ratios are ok, but the company relies on cash flow to cover current liabilities. The Liquidity Ratio for 2013 was just 0.71. This means that current assets cannot cover current liabilities. If you add it cash flow after dividends, the ratio is 1.02. The Debt Ratio is 1.59. Leverage and Debt/Equity Ratios for 2013 were at 2.69 and 1.69.
The 5 year low, median and high median Price/Earnings per Share Ratios are 12.17, 13.79 and 15.41. The corresponding 10 year values are slightly higher at 13.45, 15.38 and 16.94. The current P/E ratio is 16.96 based on a stock price of $39.85 and 2014 EPS estimate of $2.35. This stock price test suggests that this stock is expensive.
I get a Graham Price of $26.48 and the 10 year low, median and high medina Price/Graham Price Ratios are 1.08, 1.24 and 1.43. The current P/GP Ratio is 1.51 based on a stock price of $39.85. This stock price test suggests that this stock is expensive.
However, if you look at dividend yield, it is suggesting that the stock price maybe reasonable. The 5 year median Dividend Yield of 4.71% is just 8.5% higher than the current Dividend Yield of 3.81%. The historical average Dividend yield is 4.12% and the historical median Dividend Yield is 3.91%. These are just 7.3% and 2.5% higher than the Current Dividend yield.
When I look at analysts' recommendations I find Buy and Hold recommendations. The consensus recommendation would be a Buy. The 12 month target stock price is $43.70. This implies a total return of 13.48% with 3.81% from dividends and 9.66% from capital gains.
There is an interesting article in the Toronto Star about this company issuing a first transparency report. There is a recent Motley Fool report about why this stock is a must have one for dividend investors.
Sound bit for Twitter and StockTwits is: Dividend growth stock in Telecom sector. See my spreadsheet at tel.htm.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.
Telus is a national telecommunications company in Canada. Telus provides a wide range of communications products and services including data, Internet protocol (IP), voice, entertainment and video. Its web site is here Telus.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
Thursday, September 18, 2014
MacDonald, Dettwiler & Associates 2
I do not own this stock of MacDonald, Dettwiler & Associates (TSX-MDA, OTC-MDDWF). I read about this stock in MPL Communication's Advice Hotline dated October 10, 2012. CanTech likes it also. It is a Tech stock with dividends.
When I look at insider trading, I find no insider buying and no insider selling. Shares were not increased due to stock options, as shares for stock options are bought on the open market. Shares have, however, been increased due to the Employees Stock Purchase Plan.
There is some insider ownership with the CEO owning shares worth around $3.4M and the CFO owning shares around $2.3M. However, insider ownership is a very small part of outstanding shares.
The 5 year low, median and high median Price/Earnings per Share Ratios are 14.74, 18.62 and 22.51. These are slightly lower than the corresponding 10 year P/E Ratios. The current P/E Ratio is 23.78 based on a stock price of $84.65 and 2014 EPS estimate of $3.56. This stock price test suggests that the stock price is relatively expensive.
I get a Graham Price of $43.21. The 10 year Price/Graham Price Ratios are 1.61, 1.86 and 2.25. The current P/GP Ratio is 1.96 based on a stock price of $84.65. This stock price test suggests that the stock price is relatively reasonable.
The 10 year Price/Book Value per Share Ratio is 3.77. The current P/B Ratio is 3.63 a value some 3.6% lower. The current P/B Ratio is based on a stock price of $84.65 and a BVPS of $23.31. This stock price test suggests that the stock price is relatively reasonable.
Looking a P/CF and P/S Ratios do not help much is the P/CF Ratio test says that the stock is relatively expensive and the P/S Ratio test says it is relatively reasonable. The 10 year median P/CF Ratio is 11.03 and the current P/CF Ratio at 13.59 is some 23% higher. The 10 year P/S Ratio is 1.54 and the current P/S Ratio is 1.46 a value some 5% lower.
I cannot get any historical dividend yields as you need at least 4 years data for this and I only have 3 years of data. The 3 year median dividend yield is 2.00% and the current Dividend yield of 1.54% is some 23% lower. This stock price test suggests that the stock price is relatively expensive.
If you look at these values in absolute terms, the P/E Ratio of 23.78 is not particularly high. However, a P/GP Ratio of 1.96 is rather high. The P/CF Ratio at 13.59 and the P/S Ratio at 1.46 are not particularly high. However, what is certain is that the stock is not cheap as none of the ratios are low. However, none of the ratios are particularly high. The stock price maybe reasonable but the price is towards the higher end of a reasonableness range.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. Most of the recommendations are a Buy. The consensus recommendation is a Buy. The 12 month stock price consensus is $93.70. This implies a total return of 12.23% with 10.69% from capital gains and 1.54% from dividends from current stock price of $84.65.
There is a recent CanTech report talking about this company becoming a global commercial satellite powerhouse. You can also see their archive of article on MDA from CanTech here. A recent number cruncher article in the G&M named this stock as one of twenty stocks that are good wealth creators.
Sound bit for Twitter and StockTwits is: Price may still be reasonable for this tech stock. See my spreadsheet at mda.htm.
This is the second of two parts. The first part was posted on Wednesday, September 17, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
MacDonald, Dettwiler & Associates Ltd. is a global communications and information company providing operational solutions to commercial and government organizations worldwide. Its web site is here MacDonald.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
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 buying and no insider selling. Shares were not increased due to stock options, as shares for stock options are bought on the open market. Shares have, however, been increased due to the Employees Stock Purchase Plan.
There is some insider ownership with the CEO owning shares worth around $3.4M and the CFO owning shares around $2.3M. However, insider ownership is a very small part of outstanding shares.
The 5 year low, median and high median Price/Earnings per Share Ratios are 14.74, 18.62 and 22.51. These are slightly lower than the corresponding 10 year P/E Ratios. The current P/E Ratio is 23.78 based on a stock price of $84.65 and 2014 EPS estimate of $3.56. This stock price test suggests that the stock price is relatively expensive.
I get a Graham Price of $43.21. The 10 year Price/Graham Price Ratios are 1.61, 1.86 and 2.25. The current P/GP Ratio is 1.96 based on a stock price of $84.65. This stock price test suggests that the stock price is relatively reasonable.
The 10 year Price/Book Value per Share Ratio is 3.77. The current P/B Ratio is 3.63 a value some 3.6% lower. The current P/B Ratio is based on a stock price of $84.65 and a BVPS of $23.31. This stock price test suggests that the stock price is relatively reasonable.
Looking a P/CF and P/S Ratios do not help much is the P/CF Ratio test says that the stock is relatively expensive and the P/S Ratio test says it is relatively reasonable. The 10 year median P/CF Ratio is 11.03 and the current P/CF Ratio at 13.59 is some 23% higher. The 10 year P/S Ratio is 1.54 and the current P/S Ratio is 1.46 a value some 5% lower.
I cannot get any historical dividend yields as you need at least 4 years data for this and I only have 3 years of data. The 3 year median dividend yield is 2.00% and the current Dividend yield of 1.54% is some 23% lower. This stock price test suggests that the stock price is relatively expensive.
If you look at these values in absolute terms, the P/E Ratio of 23.78 is not particularly high. However, a P/GP Ratio of 1.96 is rather high. The P/CF Ratio at 13.59 and the P/S Ratio at 1.46 are not particularly high. However, what is certain is that the stock is not cheap as none of the ratios are low. However, none of the ratios are particularly high. The stock price maybe reasonable but the price is towards the higher end of a reasonableness range.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. Most of the recommendations are a Buy. The consensus recommendation is a Buy. The 12 month stock price consensus is $93.70. This implies a total return of 12.23% with 10.69% from capital gains and 1.54% from dividends from current stock price of $84.65.
There is a recent CanTech report talking about this company becoming a global commercial satellite powerhouse. You can also see their archive of article on MDA from CanTech here. A recent number cruncher article in the G&M named this stock as one of twenty stocks that are good wealth creators.
Sound bit for Twitter and StockTwits is: Price may still be reasonable for this tech stock. See my spreadsheet at mda.htm.
This is the second of two parts. The first part was posted on Wednesday, September 17, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
MacDonald, Dettwiler & Associates Ltd. is a global communications and information company providing operational solutions to commercial and government organizations worldwide. Its web site is here MacDonald.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
Wednesday, September 17, 2014
MacDonald, Dettwiler & Associates
On my other blog I am today writing about people being enraged about stock write ups continue...
I do not own this stock of MacDonald, Dettwiler & Associates (TSX-MDA, OTC-MDDWF). I read about this stock in MPL Communication's Advice Hotline dated October 10, 2012. CanTech likes it also. It is a Tech stock with dividends.
This stock just started to pay dividends in 2011. They have had one dividend increase in 2012 and it was a large 30% increase. There were no increases in dividends in 2013 or this year. Dividends are paid semi-annually. It will be interesting to see if this stock turns out to be a dividend growth stock or not.
The Dividend Payout Ratio for 2013 is at 43% for EPS and at 15.7% for CFPS. The DPR for 2014 is expected to be around 37% for EPS and 21% for CFPS.
Shareholders have done well over the past 5 and 10 years with the total return over these periods at 16.34% and 12.91% per year. The capital gain portion of this total return is 14.72% and 12.16% per year. The dividend portion of this total return is at 1.62% and 0.75% per year. The portion of the return for dividends is low because the company just started to pay dividends.
The outstanding shares have decreased over the past 5 and 10 years by 2.2% and 0.6% per year. The shares have increased due to Share Issues and Employee Stock Purchase Plan. The outstanding shares have decreased due to Buy Backs. Shares for Stock Options are bought on the open market.
There is good growth in revenues, earnings and cash flow. The growth in Revenue per Share is at 11.5% and 11.8% per year over the past 5 and 10 years. The growth in EPS is at 20.3% and 10.3% per year over the past 5 and 10 years. The growth in CFPS is at 19% and 16.4% per year over the past 5 and 10 years.
One thing that I do not like about this stock is the debt ratios. The Liquidity Ratio for 2013 is at 0.71. Even adding in cash flow less dividends just gets to a ratio of 0.81. If you add back in the current portion of the long term debt and cash flow less dividends we are still just at 0.87. When this ratio is below 1.00, it means that the current assets cannot cover the current liabilities.
While the Debt Ratios, Leverage and Debt/Equity Ratios are not what I really like, they are acceptable. The Debt Ratio for 2013 was at 1.45. Leverage and Debt/Equity Ratios are at 3.25 and 2.25. The positive thing I can say is that they are much better than for 2012.
The Return on Equity was been below 10% once over the past 5 years and twice over the past 10 years. The ROE for 2013 was at 13.2% and the 5 year median is 20.3%. The ROE on comprehensive income is much higher with the one for 2013 at 36.6% and the 5 year median at 26.9%.
Sound bit for Twitter and StockTwits is: An interesting dividend tech stock. If I bought this stock, I would be worried about the debt ratios. The problem with low Liquidity Ratios is that a company could easily get into trouble in a recession. Companies with good debt ratios have an easier time weathering bad times. See my spreadsheet at mda.htm.
This is the first of two parts. The second part will be posted on Thursday, September 18, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
MacDonald, Dettwiler & Associates Ltd. provides solutions that capture and process large amounts of data, produce essential information and improve the decision making and operational performance of business and government organizations worldwide. Its web site is here MacDonald.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
I do not own this stock of MacDonald, Dettwiler & Associates (TSX-MDA, OTC-MDDWF). I read about this stock in MPL Communication's Advice Hotline dated October 10, 2012. CanTech likes it also. It is a Tech stock with dividends.
This stock just started to pay dividends in 2011. They have had one dividend increase in 2012 and it was a large 30% increase. There were no increases in dividends in 2013 or this year. Dividends are paid semi-annually. It will be interesting to see if this stock turns out to be a dividend growth stock or not.
The Dividend Payout Ratio for 2013 is at 43% for EPS and at 15.7% for CFPS. The DPR for 2014 is expected to be around 37% for EPS and 21% for CFPS.
Shareholders have done well over the past 5 and 10 years with the total return over these periods at 16.34% and 12.91% per year. The capital gain portion of this total return is 14.72% and 12.16% per year. The dividend portion of this total return is at 1.62% and 0.75% per year. The portion of the return for dividends is low because the company just started to pay dividends.
The outstanding shares have decreased over the past 5 and 10 years by 2.2% and 0.6% per year. The shares have increased due to Share Issues and Employee Stock Purchase Plan. The outstanding shares have decreased due to Buy Backs. Shares for Stock Options are bought on the open market.
There is good growth in revenues, earnings and cash flow. The growth in Revenue per Share is at 11.5% and 11.8% per year over the past 5 and 10 years. The growth in EPS is at 20.3% and 10.3% per year over the past 5 and 10 years. The growth in CFPS is at 19% and 16.4% per year over the past 5 and 10 years.
One thing that I do not like about this stock is the debt ratios. The Liquidity Ratio for 2013 is at 0.71. Even adding in cash flow less dividends just gets to a ratio of 0.81. If you add back in the current portion of the long term debt and cash flow less dividends we are still just at 0.87. When this ratio is below 1.00, it means that the current assets cannot cover the current liabilities.
While the Debt Ratios, Leverage and Debt/Equity Ratios are not what I really like, they are acceptable. The Debt Ratio for 2013 was at 1.45. Leverage and Debt/Equity Ratios are at 3.25 and 2.25. The positive thing I can say is that they are much better than for 2012.
The Return on Equity was been below 10% once over the past 5 years and twice over the past 10 years. The ROE for 2013 was at 13.2% and the 5 year median is 20.3%. The ROE on comprehensive income is much higher with the one for 2013 at 36.6% and the 5 year median at 26.9%.
Sound bit for Twitter and StockTwits is: An interesting dividend tech stock. If I bought this stock, I would be worried about the debt ratios. The problem with low Liquidity Ratios is that a company could easily get into trouble in a recession. Companies with good debt ratios have an easier time weathering bad times. See my spreadsheet at mda.htm.
This is the first of two parts. The second part will be posted on Thursday, September 18, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
MacDonald, Dettwiler & Associates Ltd. provides solutions that capture and process large amounts of data, produce essential information and improve the decision making and operational performance of business and government organizations worldwide. Its web site is here MacDonald.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
Tuesday, September 16, 2014
Just Energy Group Inc.
I do not own this stock of Just Energy Group Inc. (TSX-JE, NYSE-JE). I started to follow this is July 2010. It was one of the high yield income trusts that people were talking about, so I decided to check it out. However, I never liked its business plan and I like even less that the book value is negative.
As far as dividends goes, this company has just reduced their dividends by 40.5% and changed the dividend payments to quarterly from annually. I noticed a number of analysts now feel that this new dividend is sustainable, even though no one seems to suggest that the company will be making a profit for the next financial year ending in March 2015.
If you look at dividend growth over the past 5 and 10 years, it is at a negative 7.4% and a positive 1.6% growth over these periods. Because of negative profit in 2012, the 5 year median Dividend Payout Ratios are not valid. The DPR for EPS in the 2014 financial year is 89% and for CFPS is 95%. The DPR for Distributable Income is at 112% for the 2014 financial year.
The problem with EPS is that this value over the past has been all over the place; that is it has varied greatly year to year. Another problem is that the EPS/CF Ratio has been over 1.00 four times in the last 5 years. This is not a good sign. This ratio should be under 1.00. You want the CFPS to be higher than EPS.
Outstanding shares have increased by 5.2% and 3.4% per year over the past 5 and 10 years. The shares have increased due to DRIP, Stock Options and Share Issues. They have decreased due to Buy Backs. Revenues have grown over the past 5 and 10 years, but the company cannot seem to grow the earnings and cash flows with the growing revenues.
Revenues per share are up by 8% and 13.4% per year over the past 5 and 10 years. EPS is down by 15% and up by 17% over the past 5 and 10 years. Cash flow is down by 10% and up by 2% per year over the past 5 and 10 years.
On some basis, the current stock price is cheap. I guess the Graham Price is around $6.22. With a current price of $6.03 that would give this stock a P/GP Ratio of 0.97. This low ratio points to a cheap stock price on an absolute basis. It would also point to a cheap stock price on the basis of the 10 year low, median and high median P/GP Ratios of 1.10, 1.43 and 1.83.
The 10 year Price/Cash Flow per Share Ratio is 10.50 and the current P/CF Ratio at 7.44 is some 29% lower and points to a relatively cheap stock price. However, a P/CF Ratio of 7.44 is not cheap on an absolute basis.
The 10 year Price/Sales Ratio is 0.77 and the current P/S Ratio of 0.25 is some 68% lower. This low ratio points to relatively cheap stock price. On an absolute basis, a P/S Ratio is 0.25 is quite low and also points to a cheap stock price.
When I look at analysts' recommendations, I find Hold and Underperform recommendations. The consensus recommendation would be a Hold. The 12 month consensus stock price is $6.19. This implies total returns of 10.95% with 2.65% from capital gains and 8.29% from dividends. However, can we be sure that this new dividend rate will hold up?
Sound bit for Twitter and StockTwits is: Book Value is negative. I wonder if I need to say more about why I do not like this stock besides the book value is negative. Even with a cheap stock price, is it worth the risk of buying this stock? I do not see that risk and reward is in balance. See my spreadsheet at je.htm.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.
Just Energy's business involves the sale of natural gas and/or electricity to residential and commercial customers under long-term fixed-price and price-protected contracts. Just Energy derives its margin or gross profit from the difference between the fixed price at which it is able to sell the commodities to its customers and the fixed price at which it purchases the associated volumes from its suppliers. The company also offers "green" products through its Just Green program. Through its subsidiary Terra Grain Fuels, the Fund produces and sells wheat-based ethanol. Its web site is here Just Energy.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
As far as dividends goes, this company has just reduced their dividends by 40.5% and changed the dividend payments to quarterly from annually. I noticed a number of analysts now feel that this new dividend is sustainable, even though no one seems to suggest that the company will be making a profit for the next financial year ending in March 2015.
If you look at dividend growth over the past 5 and 10 years, it is at a negative 7.4% and a positive 1.6% growth over these periods. Because of negative profit in 2012, the 5 year median Dividend Payout Ratios are not valid. The DPR for EPS in the 2014 financial year is 89% and for CFPS is 95%. The DPR for Distributable Income is at 112% for the 2014 financial year.
The problem with EPS is that this value over the past has been all over the place; that is it has varied greatly year to year. Another problem is that the EPS/CF Ratio has been over 1.00 four times in the last 5 years. This is not a good sign. This ratio should be under 1.00. You want the CFPS to be higher than EPS.
Outstanding shares have increased by 5.2% and 3.4% per year over the past 5 and 10 years. The shares have increased due to DRIP, Stock Options and Share Issues. They have decreased due to Buy Backs. Revenues have grown over the past 5 and 10 years, but the company cannot seem to grow the earnings and cash flows with the growing revenues.
Revenues per share are up by 8% and 13.4% per year over the past 5 and 10 years. EPS is down by 15% and up by 17% over the past 5 and 10 years. Cash flow is down by 10% and up by 2% per year over the past 5 and 10 years.
On some basis, the current stock price is cheap. I guess the Graham Price is around $6.22. With a current price of $6.03 that would give this stock a P/GP Ratio of 0.97. This low ratio points to a cheap stock price on an absolute basis. It would also point to a cheap stock price on the basis of the 10 year low, median and high median P/GP Ratios of 1.10, 1.43 and 1.83.
The 10 year Price/Cash Flow per Share Ratio is 10.50 and the current P/CF Ratio at 7.44 is some 29% lower and points to a relatively cheap stock price. However, a P/CF Ratio of 7.44 is not cheap on an absolute basis.
The 10 year Price/Sales Ratio is 0.77 and the current P/S Ratio of 0.25 is some 68% lower. This low ratio points to relatively cheap stock price. On an absolute basis, a P/S Ratio is 0.25 is quite low and also points to a cheap stock price.
When I look at analysts' recommendations, I find Hold and Underperform recommendations. The consensus recommendation would be a Hold. The 12 month consensus stock price is $6.19. This implies total returns of 10.95% with 2.65% from capital gains and 8.29% from dividends. However, can we be sure that this new dividend rate will hold up?
Sound bit for Twitter and StockTwits is: Book Value is negative. I wonder if I need to say more about why I do not like this stock besides the book value is negative. Even with a cheap stock price, is it worth the risk of buying this stock? I do not see that risk and reward is in balance. See my spreadsheet at je.htm.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.
Just Energy's business involves the sale of natural gas and/or electricity to residential and commercial customers under long-term fixed-price and price-protected contracts. Just Energy derives its margin or gross profit from the difference between the fixed price at which it is able to sell the commodities to its customers and the fixed price at which it purchases the associated volumes from its suppliers. The company also offers "green" products through its Just Green program. Through its subsidiary Terra Grain Fuels, the Fund produces and sells wheat-based ethanol. Its web site is here Just Energy.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
Monday, September 15, 2014
High Liner Foods 2
On my other blog I am today writing about my dividends covering the cost of my stock continue...
I do not own this stock of High Liner Foods (TSX-HLF, OTC-HLNFF). This is a stock liked by the Investment Reporter and is considered to be of average risk. The MPL Communication's site is here. Ryan Irvine of Keystone also likes this company.
When I look at insider trading, I find insider selling at $3.2M and net insider selling at $3M. There is a bit of insider buying. Insider selling is just 0.47% of the market cap of this stock and so is a relatively small amount.
There is insider ownership with the Hennigar Family's holding company owning some 38% of the outstanding stock and worth some $275M. The CEO owns shares worth around $11M and the Chairman, who is of the Hennigar Family, owns shares worth around $4.7M.
In 2013, outstanding shares were increased by 157,000 for stock options. These stock options had a book value of $1.4M. This number of shares was worth $3.7M at the end of 2013 and would be some 0.52% of the outstanding shares. Stock Options for 2013 at 0.52% of the outstanding shares are a relatively reasonable percentage.
The 5 year low, median and high median Price/Earnings per Share Ratios are 11.59, 12.73 and 13.87. These are lower than the corresponding 10 year values of 12.75, 14.42 and 15.66. The current P/E Ratio is 14.42 based on a stock price of $21.20 and 2014 EPS estimate of $1.47 CDN$ (or $1.35 US$). This test says that the stock price is relatively reasonable.
A problem I see with EPS is that analysts had expected the EPS to grow by almost 35% in 2014 over 2013. We are into the Quarter 2 of 2014 and if you look at the 12 month EPS to the end of June 2014 compared to the 12 month EPS to the end of 2013, EPS is only up almost 8%. It makes you wonder about this company meeting the 2014 earnings estimates.
I get a current Graham Price of $15.16. The 10 year low, median and high median Price/Graham Price Ratios are 0.78, 0.86 and 0.99. The current P/GP Ratio is 1.40. This test says that the stock price is relatively expensive.
The 10 year median Price/Book Value per Share Ratios is 1.34 and the current P/B Ratio at 3.05 is some 127% higher. The current P/B Ratio is based on a stock price of $21.20 and BVPS of $6.95. This test says that the stock price is relatively expensive.
The 5 year median Dividend Yield is 2.58% and the current Dividend Yield at 1.98% is some 23% lower. This test says that the stock price is relatively expensive. However the historical average Dividend Yield is 2.41% and the historical median Dividend yield is 2.15%. These are some 18% and 8% higher than the current Dividend Yield. These tests say that the stock price could be relatively reasonable.
When I look at analysts' recommendations, I find Buy and Hold recommendations, with the consensus being a Hold recommendations as there are more Hold recommendations than Buy recommendations. The 12 month consensus stock price is $24.80. This implies a total return of 18.96% with 16.98% from capital gains and 1.98% from dividends.
There is a CBC News article on a challenging second quarter for this company. It also talks about how the company might be affected by sanctions on Russia. There is a recent positive article on this company at Seeking Alpha.
Sound bit for Twitter and StockTwits is: Stock price could be expensive. I do like this stock, but I think that it is currently getting a little pricey. See my spreadsheet at hlf.htm.
This is the second of two parts. The first part was posted on Friday, September 12, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
High Liner Foods is the leading North American processor and marketer of value-added frozen seafood. Their retail branded products are sold throughout the United States, Canada and Mexico and are available in most grocery and club stores. They also sell their branded products to restaurants and institutions and they are the major supplier of private label value-added frozen seafood products to North American food retailers and food service distributors. Its web site is here High Liner Foods.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
I do not own this stock of High Liner Foods (TSX-HLF, OTC-HLNFF). This is a stock liked by the Investment Reporter and is considered to be of average risk. The MPL Communication's site is here. Ryan Irvine of Keystone also likes this company.
When I look at insider trading, I find insider selling at $3.2M and net insider selling at $3M. There is a bit of insider buying. Insider selling is just 0.47% of the market cap of this stock and so is a relatively small amount.
There is insider ownership with the Hennigar Family's holding company owning some 38% of the outstanding stock and worth some $275M. The CEO owns shares worth around $11M and the Chairman, who is of the Hennigar Family, owns shares worth around $4.7M.
In 2013, outstanding shares were increased by 157,000 for stock options. These stock options had a book value of $1.4M. This number of shares was worth $3.7M at the end of 2013 and would be some 0.52% of the outstanding shares. Stock Options for 2013 at 0.52% of the outstanding shares are a relatively reasonable percentage.
The 5 year low, median and high median Price/Earnings per Share Ratios are 11.59, 12.73 and 13.87. These are lower than the corresponding 10 year values of 12.75, 14.42 and 15.66. The current P/E Ratio is 14.42 based on a stock price of $21.20 and 2014 EPS estimate of $1.47 CDN$ (or $1.35 US$). This test says that the stock price is relatively reasonable.
A problem I see with EPS is that analysts had expected the EPS to grow by almost 35% in 2014 over 2013. We are into the Quarter 2 of 2014 and if you look at the 12 month EPS to the end of June 2014 compared to the 12 month EPS to the end of 2013, EPS is only up almost 8%. It makes you wonder about this company meeting the 2014 earnings estimates.
I get a current Graham Price of $15.16. The 10 year low, median and high median Price/Graham Price Ratios are 0.78, 0.86 and 0.99. The current P/GP Ratio is 1.40. This test says that the stock price is relatively expensive.
The 10 year median Price/Book Value per Share Ratios is 1.34 and the current P/B Ratio at 3.05 is some 127% higher. The current P/B Ratio is based on a stock price of $21.20 and BVPS of $6.95. This test says that the stock price is relatively expensive.
The 5 year median Dividend Yield is 2.58% and the current Dividend Yield at 1.98% is some 23% lower. This test says that the stock price is relatively expensive. However the historical average Dividend Yield is 2.41% and the historical median Dividend yield is 2.15%. These are some 18% and 8% higher than the current Dividend Yield. These tests say that the stock price could be relatively reasonable.
When I look at analysts' recommendations, I find Buy and Hold recommendations, with the consensus being a Hold recommendations as there are more Hold recommendations than Buy recommendations. The 12 month consensus stock price is $24.80. This implies a total return of 18.96% with 16.98% from capital gains and 1.98% from dividends.
There is a CBC News article on a challenging second quarter for this company. It also talks about how the company might be affected by sanctions on Russia. There is a recent positive article on this company at Seeking Alpha.
Sound bit for Twitter and StockTwits is: Stock price could be expensive. I do like this stock, but I think that it is currently getting a little pricey. See my spreadsheet at hlf.htm.
This is the second of two parts. The first part was posted on Friday, September 12, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
High Liner Foods is the leading North American processor and marketer of value-added frozen seafood. Their retail branded products are sold throughout the United States, Canada and Mexico and are available in most grocery and club stores. They also sell their branded products to restaurants and institutions and they are the major supplier of private label value-added frozen seafood products to North American food retailers and food service distributors. Its web site is here High Liner Foods.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
Friday, September 12, 2014
High Liner Foods
I do not own this stock of High Liner Foods (TSX-HLF, OTC-HLNFF). This is a stock liked by the Investment Reporter and is considered to be of average risk. The MPL Communication’s site is here. I have been meaning to look at it for a while. Ryan Irvine of Keystone also likes this company.
This company has been around for quite a while, but they just started to pay dividends in 2004. The Dividend Payout Ratios, especially for EPS has varied a lot of the years. The 5 year DPRs for EPS and CFPS are at 33% and 17%. The 2013 DPRs for EPS and CFPS are at 36% and 18.5%.
The current dividend yield is decent at 1.98% and the growth in dividends has been very good. The dividends have increased by 26% and 15% per year over the past 5 and 9 years. They increased the dividend again in 2014 with a 20% increase.
The shareholders total return has also been very good. The 5 and 10 year total returns are at 38.56% and 17.10% per year with 35.60% and 15.38% per year from capital gains and 2.97% and 1.72% per year from dividends.
The Outstanding Shares have decreased by 4.5% and increased by 3.4% per year over the past 5 and 10 years. The shares have increased due to Debenture Conversions, Share Issues and Stock Options. They have decreased due to Buy Backs.
The Revenues and Cash Flows has been growing well. Earnings have done well over the past 5 year, but not over the past 10 years. The company also reports an Adjusted Net Income and some analysts think that it better reflects on how the company is really doing as far as earnings go. Also, this company just started to report in US$ in 2012.
Revenues are up by 10.5% and 12.4% per year over the past 5 and 10 years. Revenue per Share is up by 15.6% and 8.6% per year over the past 5 and 10 years.
EPS is up by 22.8% and down by 6.3% per year over the past 5 and 10 years. The Adjusted EPS is up by 23% and 12% per year over the past 5 and 10 years. Net Income is up by 18.8% and down by 3.13% per year over the past 5 and 10 years.
The Return on Equity has only been below 10% once in the past 5 years. The 5 years before, that is 6 to 10 years ago, it did not break the 10% level.
Cash Flow is up by 19% and 12% per year over the past 5 and 10 years. CFPS is up by 24.6% and 8.6% per year over the past 5 and 10 years. The ROE for 2013 was 17% and the 5 year median ROE is at 12.6%. The ROE on comprehensive income is close with a ROE for 2013 at 16.5% and a 5 year median ROE at 12%.
The debt ratios are generally good. The Liquidity Ratios for 2013 was 1.73. The Debt Ratio for 2013 is at 1.38 with a 5 year median at 1.35. This is acceptable, although a bit lower than I would like. Leverage and Debt/Equity Ratios are a bit higher than what I would like with 2013 values at 3.66 and 2.66.
Sound bit for Twitter and StockTwits is: Consumer Discretionary Dividend Growth Stock. See my spreadsheet at hlf.htm.
This is the first of two parts. The second part will be posted on Monday, September 15, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
High Liner Foods is the leading North American processor and marketer of value-added frozen seafood. Their retail branded products are sold throughout the United States, Canada and Mexico and are available in most grocery and club stores. They also sell their branded products to restaurants and institutions and they are the major supplier of private label value-added frozen seafood products to North American food retailers and food service distributors. Its web site is here High Liner Foods.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
This company has been around for quite a while, but they just started to pay dividends in 2004. The Dividend Payout Ratios, especially for EPS has varied a lot of the years. The 5 year DPRs for EPS and CFPS are at 33% and 17%. The 2013 DPRs for EPS and CFPS are at 36% and 18.5%.
The current dividend yield is decent at 1.98% and the growth in dividends has been very good. The dividends have increased by 26% and 15% per year over the past 5 and 9 years. They increased the dividend again in 2014 with a 20% increase.
The shareholders total return has also been very good. The 5 and 10 year total returns are at 38.56% and 17.10% per year with 35.60% and 15.38% per year from capital gains and 2.97% and 1.72% per year from dividends.
The Outstanding Shares have decreased by 4.5% and increased by 3.4% per year over the past 5 and 10 years. The shares have increased due to Debenture Conversions, Share Issues and Stock Options. They have decreased due to Buy Backs.
The Revenues and Cash Flows has been growing well. Earnings have done well over the past 5 year, but not over the past 10 years. The company also reports an Adjusted Net Income and some analysts think that it better reflects on how the company is really doing as far as earnings go. Also, this company just started to report in US$ in 2012.
Revenues are up by 10.5% and 12.4% per year over the past 5 and 10 years. Revenue per Share is up by 15.6% and 8.6% per year over the past 5 and 10 years.
EPS is up by 22.8% and down by 6.3% per year over the past 5 and 10 years. The Adjusted EPS is up by 23% and 12% per year over the past 5 and 10 years. Net Income is up by 18.8% and down by 3.13% per year over the past 5 and 10 years.
The Return on Equity has only been below 10% once in the past 5 years. The 5 years before, that is 6 to 10 years ago, it did not break the 10% level.
Cash Flow is up by 19% and 12% per year over the past 5 and 10 years. CFPS is up by 24.6% and 8.6% per year over the past 5 and 10 years. The ROE for 2013 was 17% and the 5 year median ROE is at 12.6%. The ROE on comprehensive income is close with a ROE for 2013 at 16.5% and a 5 year median ROE at 12%.
The debt ratios are generally good. The Liquidity Ratios for 2013 was 1.73. The Debt Ratio for 2013 is at 1.38 with a 5 year median at 1.35. This is acceptable, although a bit lower than I would like. Leverage and Debt/Equity Ratios are a bit higher than what I would like with 2013 values at 3.66 and 2.66.
Sound bit for Twitter and StockTwits is: Consumer Discretionary Dividend Growth Stock. See my spreadsheet at hlf.htm.
This is the first of two parts. The second part will be posted on Monday, September 15, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
High Liner Foods is the leading North American processor and marketer of value-added frozen seafood. Their retail branded products are sold throughout the United States, Canada and Mexico and are available in most grocery and club stores. They also sell their branded products to restaurants and institutions and they are the major supplier of private label value-added frozen seafood products to North American food retailers and food service distributors. Its web site is here High Liner Foods.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
Thursday, September 11, 2014
Exchange Income Corp.
I do not own this stock of Exchange Income Corp. (TSX-EIF, OTC-EIFZF). One of my blogger readers suggested this stock as one to review. There was an interesting article about this stock in the G&M in May 2013. This article suggested that the company had a hefty yield with an acquisition tailwind. This article is available here.
This company has been on the stock exchange since 2004. They have been inconsistent in increasing the dividends. The dividend increases were better before 2008 than after that date. The 5 and 9 year dividend growth is at 2.22% and 6.18% per year. The last time I checked inflation it was running at 1.50% over the past 10 years and slightly lower over the past 5 years.
The dividend yield is still very high on this old income trust company. The current dividend yield is running at 8.51% currently. It was expect that income trust companies would end up with dividend yields between 4 and 5% from increases in stock prices and/or dividend decreases. The company did not decrease their dividends on the change to a corporation; they have just really slowed the dividend increases.
The Dividend Payout Ratios are still very high for this company. The 5 year median DPR for EPS is at 132% and the one for 2013 was at 400%. It is expected to be around 158% in 2014. The DPR for CFPS is better with a 5 year median of 58% and the DPR for 2013 at 58%.
The total return for shareholders has been quite good. The 5 and 10 year total return is at 19.67% and 20.41% per year with 8.85% and 8.35% per year from capital gains and 10.82% and 12.07% per year from dividends.
The outstanding shares have increased by 17% and 42% per year over the past 5 and 10 years. The shares have increased due to Debenture Conversions, Stock Options, DRIP and Share Issues. Revenues and Cash Flows have increased nicely, but Earnings have not. Because of big increase in outstanding shares, the most important increases are in the per share values.
Revenues have increased by 46% and 55% per year over the past 5 and 9 years. However, Revenue per Share has only increased by 24% and 13% per year. Cash Flow has increased by 28% and 45% per year over the past 5 and 9 years. CFPS has increased by 9% and 5.8% per year over the past 5 and 9 years.
Unfortunately, although earnings are up EPS is down. The Net Income has increased by 23 and 25% per year over the past 5 and 9 years. However, EPS is down by 5.3% and 6.9% per year over the past 5 and 9 years.
Return on Equity only broke through the 10% mark once in the past 5 years and that was 5 years ago. The ROE for 2013 was just 2.9% and the 5 year median was at 9%. The ROE on comprehensive income was a bit better for 2013 at 5.4% and its 5 year median is 8.5%.
The 5 year low, median and high median Price/Earnings per Share Ratios are 14.62, 17.81 and 20.99. The 10 year values are lower at 11.77, 13.40 and 15.03. The current P/E Ratio is 18.61 based on a stock price of 19.73 and 2014 earnings estimates of $1.06. This stock price testing suggests that the stock price is relatively reasonable.
However, the P/E Ratios have been moving up quite a bit and this generally does not suggest a stock is at a good price. Although a P/E Ratio of 18.61 is not high, however, it does not point to a cheap stock. Also, the EPS estimates are an increase of some 152% over that for 2013. If you look at EPS for the last 12 months, it is lower than the 12 months earnings to end of 2013.
I get a Graham Price of $17.49. The 10 year Price/Graham Price Ratios are 0.76, 0.89 and 1.00. The current P/GP Ratio is 1.13 based on a stock price of $19.73. This stock price test suggests that the stock price is relatively high.
The 10 year Price/Book Value per Share Ratio is 1.36. The current P/B Ratio is 1.54 a value some 13% higher. This suggests that the stock price is relatively reasonable but a bit on the high side of the reasonableness range.
The 5 year median Dividend Yield is 7.43% and the current Dividend Yield is some 15% higher at 8.51%. This stock price test suggests that the stock price is reasonable.
When I look at analyst's recommendations, I find Strong Buy, Buy and Hold Recommendations. The consensus recommendation would be a Buy. The 12 month stock price consensus is $25.80. This implies a total return of 39.28% per year with 30.77% from capital gains and 8.51% per year from dividends.
In an G&M article, the CEO challenges critic over the earning power of his company. The negative reporting from G&M is here. Some people think that the dividend is in jeopardy.
Sound bit for Twitter and StockTwits is: I would like better EPS growth. It would seem that the company is not producing good growing EPS. In the long term, the production of good growing EPS is the most important. See my spreadsheet at eif.htm.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.
Exchange Income Corporation was created to invest in profitable, well-established companies with strong cash flows operating in niche markets in Canada and/or the United States and to distribute stable monthly cash dividends to its shareholders. The Company currently owns subsidiaries in two niche business segments, aviation and specialty manufacturing. Its web site is here Exchange Income Corp.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
This company has been on the stock exchange since 2004. They have been inconsistent in increasing the dividends. The dividend increases were better before 2008 than after that date. The 5 and 9 year dividend growth is at 2.22% and 6.18% per year. The last time I checked inflation it was running at 1.50% over the past 10 years and slightly lower over the past 5 years.
The dividend yield is still very high on this old income trust company. The current dividend yield is running at 8.51% currently. It was expect that income trust companies would end up with dividend yields between 4 and 5% from increases in stock prices and/or dividend decreases. The company did not decrease their dividends on the change to a corporation; they have just really slowed the dividend increases.
The Dividend Payout Ratios are still very high for this company. The 5 year median DPR for EPS is at 132% and the one for 2013 was at 400%. It is expected to be around 158% in 2014. The DPR for CFPS is better with a 5 year median of 58% and the DPR for 2013 at 58%.
The total return for shareholders has been quite good. The 5 and 10 year total return is at 19.67% and 20.41% per year with 8.85% and 8.35% per year from capital gains and 10.82% and 12.07% per year from dividends.
The outstanding shares have increased by 17% and 42% per year over the past 5 and 10 years. The shares have increased due to Debenture Conversions, Stock Options, DRIP and Share Issues. Revenues and Cash Flows have increased nicely, but Earnings have not. Because of big increase in outstanding shares, the most important increases are in the per share values.
Revenues have increased by 46% and 55% per year over the past 5 and 9 years. However, Revenue per Share has only increased by 24% and 13% per year. Cash Flow has increased by 28% and 45% per year over the past 5 and 9 years. CFPS has increased by 9% and 5.8% per year over the past 5 and 9 years.
Unfortunately, although earnings are up EPS is down. The Net Income has increased by 23 and 25% per year over the past 5 and 9 years. However, EPS is down by 5.3% and 6.9% per year over the past 5 and 9 years.
Return on Equity only broke through the 10% mark once in the past 5 years and that was 5 years ago. The ROE for 2013 was just 2.9% and the 5 year median was at 9%. The ROE on comprehensive income was a bit better for 2013 at 5.4% and its 5 year median is 8.5%.
The 5 year low, median and high median Price/Earnings per Share Ratios are 14.62, 17.81 and 20.99. The 10 year values are lower at 11.77, 13.40 and 15.03. The current P/E Ratio is 18.61 based on a stock price of 19.73 and 2014 earnings estimates of $1.06. This stock price testing suggests that the stock price is relatively reasonable.
However, the P/E Ratios have been moving up quite a bit and this generally does not suggest a stock is at a good price. Although a P/E Ratio of 18.61 is not high, however, it does not point to a cheap stock. Also, the EPS estimates are an increase of some 152% over that for 2013. If you look at EPS for the last 12 months, it is lower than the 12 months earnings to end of 2013.
I get a Graham Price of $17.49. The 10 year Price/Graham Price Ratios are 0.76, 0.89 and 1.00. The current P/GP Ratio is 1.13 based on a stock price of $19.73. This stock price test suggests that the stock price is relatively high.
The 10 year Price/Book Value per Share Ratio is 1.36. The current P/B Ratio is 1.54 a value some 13% higher. This suggests that the stock price is relatively reasonable but a bit on the high side of the reasonableness range.
The 5 year median Dividend Yield is 7.43% and the current Dividend Yield is some 15% higher at 8.51%. This stock price test suggests that the stock price is reasonable.
When I look at analyst's recommendations, I find Strong Buy, Buy and Hold Recommendations. The consensus recommendation would be a Buy. The 12 month stock price consensus is $25.80. This implies a total return of 39.28% per year with 30.77% from capital gains and 8.51% per year from dividends.
In an G&M article, the CEO challenges critic over the earning power of his company. The negative reporting from G&M is here. Some people think that the dividend is in jeopardy.
Sound bit for Twitter and StockTwits is: I would like better EPS growth. It would seem that the company is not producing good growing EPS. In the long term, the production of good growing EPS is the most important. See my spreadsheet at eif.htm.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.
Exchange Income Corporation was created to invest in profitable, well-established companies with strong cash flows operating in niche markets in Canada and/or the United States and to distribute stable monthly cash dividends to its shareholders. The Company currently owns subsidiaries in two niche business segments, aviation and specialty manufacturing. Its web site is here Exchange Income Corp.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
Wednesday, September 10, 2014
Chemtrade Logistics Income Fund
On my other blog I am today writing about my 3 blogs and my web site continue...
I do not own this stock of Chemtrade Logistics Income Fund (TSX-CHE.UN, OTC-CGIFF). I decided to investigate this stock after reading an article in the G&M in February 2012 about investing in small cap stocks that pay dividends. This was one of the stocks mentioned that I had never heard of before.
This company has purchased General Chemical Holding Company. An article in the Financial Post says that Chemtrade doubles in size with the purchase of General Chemical.
This company gave out dividend increases from their start in 2001 until 2007. They decreased the dividends in 2007 by just over 16%. The dividends have been flat since 2007. The 5 and 10 years change in is dividends are flat for the past 5 years and dividends were decrease by 1% per year over the past 10 years. Some analysts do expect dividends to start to rise again in 2014, but so far I see no sign of that.
The company was an income trust back when it started. The distributions or dividends were, of course, much higher than the EPS. They are still paying out higher dividends than EPS with the 5 year median Dividend Payout Ratio at 105% and the DPR for 2013 at 923%. They earned little last year. The DPR for EPS for 2014 is expected to be187% and for 2015 it is expected to be 103%.
The 5 year DPR for CFPS is at 53% and the DPR for CFPS for 2014 was at 46%. If dividends do not change it is expected to be around 36% this year. The DPR for 2013 for AFFO is 46% and for FFO is 66%. I know people are still looking at AFFO and FFO for this stock, but it is now a corporation, no matter what the name says.
The dividends are still quite high on this stock with the current dividend yield at 5.64% and the 5 year median at 8.98%. It was expected after the income trust tax changes were announced in late 2006 that income trust dividend yields would go down to around 4 to 5% because of stock price increases and/or dividend cuts. This stock hit a high of dividend yields in 2006 of 14.3% and since then they have been gradually declining.
Shareholders have not done badly with this stock over the past 5 and 10 years. The 5 and 10 years total returns are at 22.76% and 6.80% per year with 14.08% and 0.47% per year from capital gains and 8.68% and 6.33% per year from dividends.
The Return on Equity was lower than 10% only once in the last 5 years and that year was 2013 when it was just 1.8%. The 5 year median is 17.8%. The ROE on comprehensive income was 11.9% in 2013. Some of the financing costs of acquiring General Chemical Holding Company were written off in 2013 and this is the main reason for the low EPS in 2013.
The 5 year low, median and high median Price/Earnings per Share Ratios are 8.71, 11.00 and 13.28. The comparable 10 year ratios are 13.91, 15.68 and 17.45. The current P/E Ratio is 33.23 based on a stock price of $21.27 and 2014 earnings of $0.64. The P/E Ratio for 2015 is 18.34 based on a stock price of $21.27 and 2015 EPS of $1.16. No matter how you look at P/E Ratio testing, it shows that the stock price is relatively expensive.
I get a Graham price of $12.16 and the 10 year Price/Graham Price Ratios ae 0.96, 1.11 and 1.27. The current P/GP Ratio is 1.75. This stock price test says that the stock price is relatively high.
The 10 year Price/Book Value per Share Ratio is 1.75 and the current P/BV Ratio at 2.07 is some 20% higher. This is based on a stock price of $21.27 and BVPS of $10.26. This stock price test says that the stock price is relatively high.
I cannot use the dividend yield to look at the stock price because this stock used to be an income trust. However, it is interesting to see that looking at Price/Cash Flow per Share Ratios shows that the current stock price is reasonable. The 10 year P/CF Ratio is 6.39 and the current P/CF Ratio is 6.39.
When I look at analysts' recommendations, I find Buy and Hold recommendations. Most of the recommendations are a Hold, so the consensus recommendations would be a Hold. The 12 month stock price consensus is $21.60. This implies a total return of 7.19% with 5.64% from dividends and 1.55% from capital gains.
Sound bit for Twitter and StockTwits is: Stock is probably expensive. The current stock price does look relatively high on a lot of measures. However, a lot of analysts seem to be excited by this company's purchase of General Chemical Holding Company and feel that it will be very good for the long term for this company.
The purchase of General Chemical Holding Company seems to be depressing the EPS. However, it is not depressing the CFPS. See my spreadsheet at che.htm.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.
This company is one of Canada's largest energy and energy-related companies. The Company's operations include the exploration, development and production of crude oil and natural gas. Husky has operations in Western Canada, Eastern Canada, US, China, Indonesia and Greenland. This company is mostly foreign owned. Industry: Oil and Gas (Integrated Oils). It is listed under TSX Energy Index. Its web site is here Chemtrade Logistics.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
I do not own this stock of Chemtrade Logistics Income Fund (TSX-CHE.UN, OTC-CGIFF). I decided to investigate this stock after reading an article in the G&M in February 2012 about investing in small cap stocks that pay dividends. This was one of the stocks mentioned that I had never heard of before.
This company has purchased General Chemical Holding Company. An article in the Financial Post says that Chemtrade doubles in size with the purchase of General Chemical.
This company gave out dividend increases from their start in 2001 until 2007. They decreased the dividends in 2007 by just over 16%. The dividends have been flat since 2007. The 5 and 10 years change in is dividends are flat for the past 5 years and dividends were decrease by 1% per year over the past 10 years. Some analysts do expect dividends to start to rise again in 2014, but so far I see no sign of that.
The company was an income trust back when it started. The distributions or dividends were, of course, much higher than the EPS. They are still paying out higher dividends than EPS with the 5 year median Dividend Payout Ratio at 105% and the DPR for 2013 at 923%. They earned little last year. The DPR for EPS for 2014 is expected to be187% and for 2015 it is expected to be 103%.
The 5 year DPR for CFPS is at 53% and the DPR for CFPS for 2014 was at 46%. If dividends do not change it is expected to be around 36% this year. The DPR for 2013 for AFFO is 46% and for FFO is 66%. I know people are still looking at AFFO and FFO for this stock, but it is now a corporation, no matter what the name says.
The dividends are still quite high on this stock with the current dividend yield at 5.64% and the 5 year median at 8.98%. It was expected after the income trust tax changes were announced in late 2006 that income trust dividend yields would go down to around 4 to 5% because of stock price increases and/or dividend cuts. This stock hit a high of dividend yields in 2006 of 14.3% and since then they have been gradually declining.
Shareholders have not done badly with this stock over the past 5 and 10 years. The 5 and 10 years total returns are at 22.76% and 6.80% per year with 14.08% and 0.47% per year from capital gains and 8.68% and 6.33% per year from dividends.
The Return on Equity was lower than 10% only once in the last 5 years and that year was 2013 when it was just 1.8%. The 5 year median is 17.8%. The ROE on comprehensive income was 11.9% in 2013. Some of the financing costs of acquiring General Chemical Holding Company were written off in 2013 and this is the main reason for the low EPS in 2013.
The 5 year low, median and high median Price/Earnings per Share Ratios are 8.71, 11.00 and 13.28. The comparable 10 year ratios are 13.91, 15.68 and 17.45. The current P/E Ratio is 33.23 based on a stock price of $21.27 and 2014 earnings of $0.64. The P/E Ratio for 2015 is 18.34 based on a stock price of $21.27 and 2015 EPS of $1.16. No matter how you look at P/E Ratio testing, it shows that the stock price is relatively expensive.
I get a Graham price of $12.16 and the 10 year Price/Graham Price Ratios ae 0.96, 1.11 and 1.27. The current P/GP Ratio is 1.75. This stock price test says that the stock price is relatively high.
The 10 year Price/Book Value per Share Ratio is 1.75 and the current P/BV Ratio at 2.07 is some 20% higher. This is based on a stock price of $21.27 and BVPS of $10.26. This stock price test says that the stock price is relatively high.
I cannot use the dividend yield to look at the stock price because this stock used to be an income trust. However, it is interesting to see that looking at Price/Cash Flow per Share Ratios shows that the current stock price is reasonable. The 10 year P/CF Ratio is 6.39 and the current P/CF Ratio is 6.39.
When I look at analysts' recommendations, I find Buy and Hold recommendations. Most of the recommendations are a Hold, so the consensus recommendations would be a Hold. The 12 month stock price consensus is $21.60. This implies a total return of 7.19% with 5.64% from dividends and 1.55% from capital gains.
Sound bit for Twitter and StockTwits is: Stock is probably expensive. The current stock price does look relatively high on a lot of measures. However, a lot of analysts seem to be excited by this company's purchase of General Chemical Holding Company and feel that it will be very good for the long term for this company.
The purchase of General Chemical Holding Company seems to be depressing the EPS. However, it is not depressing the CFPS. See my spreadsheet at che.htm.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.
This company is one of Canada's largest energy and energy-related companies. The Company's operations include the exploration, development and production of crude oil and natural gas. Husky has operations in Western Canada, Eastern Canada, US, China, Indonesia and Greenland. This company is mostly foreign owned. Industry: Oil and Gas (Integrated Oils). It is listed under TSX Energy Index. Its web site is here Chemtrade Logistics.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
Tuesday, September 9, 2014
Calloway Real Estate Investment Trust 2
I do not own this stock of Calloway Real Estate Investment Trust (TSX-CWT.UN, OTC-CWYUF). Once you have 5 or 6 stocks, you might want to consider a REIT for diversification. REITs are an easy way to investment in real estate. I am therefore following a few REIT stocks and in 2009 I decided to look at a few on the Dividend Achiever's List. Unfortunately, this stock is no longer on the Dividend Achiever's List.
When I look at insider trading, I find no action for the past year. There does not seem to be much in the way of outstanding stock options or insider ownership. However, there are convertible debentures and special voting units outstanding. Special voting units are almost 20% of the outstanding units. The SVUs are not part of the outstanding units, but have voting rights. The difference between basic and diluted outstanding units was mostly influenced by convertible debentures.
As far as stock options go, the outstanding shares were increased by around 240,000 units for these on 2013. They have a Book Value $8M and this number of shares were worth some $6M at the end of 2013. This number of shares is only 0.18% of the outstanding shares. The outstanding shares were increased a relatively small percentage for stock options in 2013.
The 5 year low, median and high median Price/Earnings per Share Ratios are 15.44, 16.94 and 18.45. The current P/E Ratio is 13.72 based on a stock price of $26.62 and 2014 earnings estimate of 1.94. This stock price test would suggest that the stock price is relatively cheap.
Since this is an income trust, we should also look at the Price/AFFO Ratios. The 5 year median P/AFFO Ratio is 15.30. The current P/AFFO Ratio is 15.30 based on AFFO estimate for 2014 of $1.74 and current stock price of $26.62. This stock price test would suggest that the stock price is relatively reasonable.
I get a 10 year Price/Book Value per Share Ratio of 1.54. The current P/B Ratio is 1.10 based on a stock price of $26.62 and current BVPS of $24.10. The current P/B Ratio is some 28% lower than the 10 year median ratio. This stock price test would suggest that the stock price is relatively cheap.
The 5 year median yield is 6.96% and the current dividend yield at 6.01% is some 16% lower. This stock price test would suggest that the stock price is relatively reasonable, but towards the higher end of the reasonableness range. The historical average dividend yield is 9.64% and this is some 37% above the current dividend yield and says the stock price is expensive.
However, if you use the historical median dividend yield, which is 6.29%, the current dividend yield is just 4.5% lower. This stock price test would suggest that the stock price is relatively reasonable.
When I look at analysts' recommendations, I find Buy and Hold Recommendations. The consensus recommendation would be a Hold. The 12 month consensus stock price is $28.60. This implies a total return of 13.45% with 6.01% from dividends and 7.44% from capital gains.
According to a Motley Fool article this REIT as well as Boardwalk REIT (TSX-BEI.UN) and RioCan Real Estate Investment (TSX-REI.UN) are current good buys. The blogger Passive Income Earner has a recent good article about buying Canadian REITs.
Sound bit for Twitter and StockTwits is: Stock price is probably reasonable. A number of stock price tests shows that the stock price is reasonable. I still do not like the complex ownership under this stock. However, it is a good sign that dividends were raised in 2014. See my spreadsheet at cwt.htm.
This is the second of two parts. The first part was posted on Monday, September 08, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
Calloway REIT is the largest owner of large-format unenclosed retail properties in Canada. Its web site is here Calloway REIT.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
When I look at insider trading, I find no action for the past year. There does not seem to be much in the way of outstanding stock options or insider ownership. However, there are convertible debentures and special voting units outstanding. Special voting units are almost 20% of the outstanding units. The SVUs are not part of the outstanding units, but have voting rights. The difference between basic and diluted outstanding units was mostly influenced by convertible debentures.
As far as stock options go, the outstanding shares were increased by around 240,000 units for these on 2013. They have a Book Value $8M and this number of shares were worth some $6M at the end of 2013. This number of shares is only 0.18% of the outstanding shares. The outstanding shares were increased a relatively small percentage for stock options in 2013.
The 5 year low, median and high median Price/Earnings per Share Ratios are 15.44, 16.94 and 18.45. The current P/E Ratio is 13.72 based on a stock price of $26.62 and 2014 earnings estimate of 1.94. This stock price test would suggest that the stock price is relatively cheap.
Since this is an income trust, we should also look at the Price/AFFO Ratios. The 5 year median P/AFFO Ratio is 15.30. The current P/AFFO Ratio is 15.30 based on AFFO estimate for 2014 of $1.74 and current stock price of $26.62. This stock price test would suggest that the stock price is relatively reasonable.
I get a 10 year Price/Book Value per Share Ratio of 1.54. The current P/B Ratio is 1.10 based on a stock price of $26.62 and current BVPS of $24.10. The current P/B Ratio is some 28% lower than the 10 year median ratio. This stock price test would suggest that the stock price is relatively cheap.
The 5 year median yield is 6.96% and the current dividend yield at 6.01% is some 16% lower. This stock price test would suggest that the stock price is relatively reasonable, but towards the higher end of the reasonableness range. The historical average dividend yield is 9.64% and this is some 37% above the current dividend yield and says the stock price is expensive.
However, if you use the historical median dividend yield, which is 6.29%, the current dividend yield is just 4.5% lower. This stock price test would suggest that the stock price is relatively reasonable.
When I look at analysts' recommendations, I find Buy and Hold Recommendations. The consensus recommendation would be a Hold. The 12 month consensus stock price is $28.60. This implies a total return of 13.45% with 6.01% from dividends and 7.44% from capital gains.
According to a Motley Fool article this REIT as well as Boardwalk REIT (TSX-BEI.UN) and RioCan Real Estate Investment (TSX-REI.UN) are current good buys. The blogger Passive Income Earner has a recent good article about buying Canadian REITs.
Sound bit for Twitter and StockTwits is: Stock price is probably reasonable. A number of stock price tests shows that the stock price is reasonable. I still do not like the complex ownership under this stock. However, it is a good sign that dividends were raised in 2014. See my spreadsheet at cwt.htm.
This is the second of two parts. The first part was posted on Monday, September 08, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
Calloway REIT is the largest owner of large-format unenclosed retail properties in Canada. Its web site is here Calloway REIT.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
Monday, September 8, 2014
Calloway Real Estate Investment Trust
On my other blog I am today writing about a possible different way of viewing dividends continue...
I do not own this stock of Calloway Real Estate Investment Trust (TSX-CWT.UN, OTC-CWYUF). Once you have 5 or 6 stocks, you might want to consider a REIT for diversification. REITs are an easy way to investment in real estate. I am therefore following a few REIT stocks and in 2009 I decided to look at a few on the Dividend Achiever's List. Unfortunately, this stock is no longer on the Dividend Achiever's List.
This company started to pay dividends in 2002, but only for two months. The company increased their dividends until 2008 and then increases stopped. So dividends were flat for 5 years. At the end of this year, this company has again started to raise dividends and dividends or distributions were increased by 3.1%.
Between 2008 and 2012, this company was paying out too high a percentage of their earnings and especially more critical for a REIT, too high a percentage of their cash flow. For 2013, the Dividend Payout Ratios are a lot better with the DPR for EPS at 66.5% and the DPR for CFPS at 91.4%. Lots of analysts also look at DPR for FFO and AFFO. The DPR for FFO for 2013 was at 83.4% and for AFFO was at 88%.
Of course, this REIT was not the only one with problems with distributions between 2008 and 2013. RioCan Real Estate (TSX-REI.UN, OTC-RIOCF) had a few years of no increases, Canadian Real Estate Trust (TSX-REF.UN, OTC-CRXIF) had some very low increases and H&R Real Estate (TSX-HR.UN, OTC-HRUFF) decreased their dividends in 2009.
When looking at dividends over the longer term, dividends are up by 3% per year over the past 10 years. However, they are up by 0% over the past 5 years. But with the 10 year increase, the dividends are up by the rate of background inflation and this is not bad for a REIT. REITs tend to have good dividend yields and this REIT has a current yield of 6% and the 5 year median dividend yield is 6.96%.
Shareholders have not done badly over the past 5 and 10 years. The total return over these periods is at 13.51% and 10.60% per year with 6.41% and 3.57% per year from capital gains and 7.10% and7.03% per year from dividends.
The number of outstanding trust units or shares has increased a lot over the past 5 and 10 years. The shares have increased by 7.1% and 28.1% per year over the past 5 and 10 years. Increasing shares are not a problem in themselves, but it does mean that investors should be very interested in per share values. That is the growth in Revenue per Share is important for the shareholder rather than growth in Revenue per se.
Revenue, earnings and cash flow have grown nicely. It is interesting that there is for this company comparatively little growth in Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO). These are measures that a lot of analysts are interested in for REITs.
Revenues have grown by 5.6% and 46% per year over the past 5 and 10 years. The Revenue per Share has grown at a negative 1.4% and positive 14.1% per year over the past 5 and 10 years. (However, if you look at the 5 and 10 year running averages, Revenue per Share has grown at 4.3% and 9.5% per year over the past 5 and 10 years.)
EPS has grown at 19.62% and 6.08% per year over the past 5 and 10 years. However, a lot of this growth is due to the change in Accounting Rules from Canadian GAAP to IFRS rules. FFO has only grown by 0.5% and 4.2% per year over the past 5 and 10 years. AFFO has only grown at 0.7% and 3.51% per year over the past 5 and 10 years.
Cash Flow has grown at 6.8% and 39.8% per year over the past 5 and 10 years. CFPS has declined by 0.3% per year over the past 5 years and has increased by 9.2% per year over the past 10 years. If you look at 5 year running averages over these periods, the CFPS is better at 3.3% and 14.7% per year over the past 5 and 10 years.
The Return on Equity is not great, with the ROE for 2013 at 8.5%. However, the ROE on comprehensive income is the same. The ROE has been lower than 8%, 3 of the past 5 years.
The Liquidity Ratio is rather low at just 0.27. If it is not at 1.00, it means that current assets cannot cover current liabilities. However, if you take off the current portion of the long term debt and add in cash flow after dividends this ratio comes in at 1.03. The Debt Ratio is very good at 2.16. The Leverage and Debt/Equity Ratios are good also at 1.86 and 0.86.
Sound bit for Twitter and StockTwits is: Dividend Growth REIT with recent modest div increase. After a number of years of no dividend increases, it is nice that this REIT can now afford one. I still have reservations about the ownership structure of this REIT with the Limited Partnership and Special Voting units. My complaint is that it is complicated. See my spreadsheet at cwt.htm.
This is the first of two parts. The second part will be posted on Tuesday, September 9, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
Calloway REIT is the largest owner of large-format unenclosed retail properties in Canada. Its web site is here Calloway REIT.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
I do not own this stock of Calloway Real Estate Investment Trust (TSX-CWT.UN, OTC-CWYUF). Once you have 5 or 6 stocks, you might want to consider a REIT for diversification. REITs are an easy way to investment in real estate. I am therefore following a few REIT stocks and in 2009 I decided to look at a few on the Dividend Achiever's List. Unfortunately, this stock is no longer on the Dividend Achiever's List.
This company started to pay dividends in 2002, but only for two months. The company increased their dividends until 2008 and then increases stopped. So dividends were flat for 5 years. At the end of this year, this company has again started to raise dividends and dividends or distributions were increased by 3.1%.
Between 2008 and 2012, this company was paying out too high a percentage of their earnings and especially more critical for a REIT, too high a percentage of their cash flow. For 2013, the Dividend Payout Ratios are a lot better with the DPR for EPS at 66.5% and the DPR for CFPS at 91.4%. Lots of analysts also look at DPR for FFO and AFFO. The DPR for FFO for 2013 was at 83.4% and for AFFO was at 88%.
Of course, this REIT was not the only one with problems with distributions between 2008 and 2013. RioCan Real Estate (TSX-REI.UN, OTC-RIOCF) had a few years of no increases, Canadian Real Estate Trust (TSX-REF.UN, OTC-CRXIF) had some very low increases and H&R Real Estate (TSX-HR.UN, OTC-HRUFF) decreased their dividends in 2009.
When looking at dividends over the longer term, dividends are up by 3% per year over the past 10 years. However, they are up by 0% over the past 5 years. But with the 10 year increase, the dividends are up by the rate of background inflation and this is not bad for a REIT. REITs tend to have good dividend yields and this REIT has a current yield of 6% and the 5 year median dividend yield is 6.96%.
Shareholders have not done badly over the past 5 and 10 years. The total return over these periods is at 13.51% and 10.60% per year with 6.41% and 3.57% per year from capital gains and 7.10% and7.03% per year from dividends.
The number of outstanding trust units or shares has increased a lot over the past 5 and 10 years. The shares have increased by 7.1% and 28.1% per year over the past 5 and 10 years. Increasing shares are not a problem in themselves, but it does mean that investors should be very interested in per share values. That is the growth in Revenue per Share is important for the shareholder rather than growth in Revenue per se.
Revenue, earnings and cash flow have grown nicely. It is interesting that there is for this company comparatively little growth in Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO). These are measures that a lot of analysts are interested in for REITs.
Revenues have grown by 5.6% and 46% per year over the past 5 and 10 years. The Revenue per Share has grown at a negative 1.4% and positive 14.1% per year over the past 5 and 10 years. (However, if you look at the 5 and 10 year running averages, Revenue per Share has grown at 4.3% and 9.5% per year over the past 5 and 10 years.)
EPS has grown at 19.62% and 6.08% per year over the past 5 and 10 years. However, a lot of this growth is due to the change in Accounting Rules from Canadian GAAP to IFRS rules. FFO has only grown by 0.5% and 4.2% per year over the past 5 and 10 years. AFFO has only grown at 0.7% and 3.51% per year over the past 5 and 10 years.
Cash Flow has grown at 6.8% and 39.8% per year over the past 5 and 10 years. CFPS has declined by 0.3% per year over the past 5 years and has increased by 9.2% per year over the past 10 years. If you look at 5 year running averages over these periods, the CFPS is better at 3.3% and 14.7% per year over the past 5 and 10 years.
The Return on Equity is not great, with the ROE for 2013 at 8.5%. However, the ROE on comprehensive income is the same. The ROE has been lower than 8%, 3 of the past 5 years.
The Liquidity Ratio is rather low at just 0.27. If it is not at 1.00, it means that current assets cannot cover current liabilities. However, if you take off the current portion of the long term debt and add in cash flow after dividends this ratio comes in at 1.03. The Debt Ratio is very good at 2.16. The Leverage and Debt/Equity Ratios are good also at 1.86 and 0.86.
Sound bit for Twitter and StockTwits is: Dividend Growth REIT with recent modest div increase. After a number of years of no dividend increases, it is nice that this REIT can now afford one. I still have reservations about the ownership structure of this REIT with the Limited Partnership and Special Voting units. My complaint is that it is complicated. See my spreadsheet at cwt.htm.
This is the first of two parts. The second part will be posted on Tuesday, September 9, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
Calloway REIT is the largest owner of large-format unenclosed retail properties in Canada. Its web site is here Calloway REIT.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
Friday, September 5, 2014
Badger Daylighting Ltd.
I do not own this stock of Badger Daylighting Ltd. (TSX-BAD, OTC-BADFF). I started to follow this stock after reading a couple of articles in February 2012 in the G&M that talked about the company. The first article looked at what the pros who manage small-cap funds are buying. Badger was one of 10 stocks mentioned and it looked like an interesting stock. It is a dividend paying small cap. The second article looked at what stocks might appeal to a conservative investor looking for income.
This stock used to be an income trust. They cut their dividends in 2011 as a number of income trust companies did when changing over to a corporation. The dividends were cut some 19%. However, they have started to raise their dividends again and in 2012 they increased the dividends by 5.9%. In 2013 and so far in 2014 they have done no dividend increase.
Even before switching from an income trust, they were inconsistent in raising dividends. There was no dividend raise between 2007 and 2010. However, tax law changes for income trusts were announced in October 2006. This could explain the lack of increases then. I cannot find any intent of what the company will do with dividends and analysts do not mention what they expect from dividends.
However, the Dividend Payout Ratios are good on this stock. The 5 year DPR for EPS is at 43.7% and for CFPS is at 25.7%. The DPR for 2013 for EPS is at 33% and for CFPS is at 19.1%. The DPR is expected to be even lower for 2014.
Shareholders have done very well with this stock. The stock price was up over 40% in 2012 and up by over 175% in 2013. This has slowed as stock is up just over 2% for 2014. The 5 and 10 year total return on this stock is at 48.12% and 21.23% per year with 43.67% and 17.52% per year from capital gains and 4.45% and 3.71% per year from dividends. Analysts do expect further gains as the 12 months consensus stock price is at $37.00 which is around a 27% rise from today's price.
The Return on Equity was been above 10% each year over the past 10 years. However, prior to 10 years ago, it had a hard time breaking into this range. The ROE for 2013 is at 23.6% and the 5 year median is also 23.6%. The ROE on comprehensive income is slightly higher at 26.8% and this is, of course, a very good sign.
Debt ratios are also good, with the current Liquidity Ratio at 2.42, the Debt Ratio at 2.05 and the Leverage and Debt/Equity Ratios at 1.95 and 0.95.
The 5 year low, median and high median Price/Earnings per Share Ratios are 7.60, 9.38 and 11.17. The corresponding 10 year median P/E Ratios are just slightly higher. The current P/E Ratio is 22.91 based on a stock price of $29.10 and 2014 earnings estimate of $1.27. On a relative basis, the current stock price is expensive. However, a P/E Ratio of 22.91 is not particularly high.
I get a Graham Price of $11.92. The 10 year low, median and high median Price/Graham Price Ratios are 0.90, 1.18 and 1.45. These are rather high ratios for this sort of company. The current P/GP Ratio is 2.44 and however you look at it this ratio shows that this stock is relatively and absolutely expensive using this ratio.
The 10 year Price/Book Value per Share is 3.03. The current P/B Ratio is 7.23 based on a stock price of $29.10 and BVPS of $4.97. The current P/B Ratio is some 93% higher than the 10 year median P/B Ratio. This stock price test says that the stock price is relatively expensive. A P/B Ratio of 7.23 is also on the high side.
Since this was an old income trust stock, using the dividend yield for testing would not be a fair test. However, I can use the Price/CP Ratio test. The 10 year P/CF Ratio is 6.09. The current P/CF Ratio at 12.76 is some 110% higher. This stock price test says that the stock price is relatively expensive. Also a P/CF Ratio of 12.76 is a rather high one.
When I look at the analysts' recommendations, I find only two analysts following this stock and they have recommendations of Strong Buy and Buy. The consensus is a Strong Buy. The 12 month consensus stock price is $37.00 and this implies a total return of 28.38% with 27.15% from capital gains and1.24% from dividends.
The site WKRB recently talked about analysts' ratings on this stock.
Sound bit for Twitter and StockTwits is: Not a great dividend stock and expensive. I like dividend growth stock and this stock is not at the moment such a stock. I also think that the stock price is high, but who knows, money could be made while this stock has momentum. Even this might have past as the TSX has been slowly rising over the past 3 months while this stock has been falling. See my spreadsheet at bad.htm.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow. If this stock turns into a dividend growth stock, I will do more entries on it in the future.
Badger is North America's largest provider of non-destructive excavating services. Badger traditionally works for contractors and facility owners in the utility and petroleum industries. Badger's business model involves the provision of excavating services through two distinct entities: the Operating Partners (franchisees in the United States and agents in Canada), and Badger Corporate. Its web site is here Badger Daylighting Ltd..
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
This stock used to be an income trust. They cut their dividends in 2011 as a number of income trust companies did when changing over to a corporation. The dividends were cut some 19%. However, they have started to raise their dividends again and in 2012 they increased the dividends by 5.9%. In 2013 and so far in 2014 they have done no dividend increase.
Even before switching from an income trust, they were inconsistent in raising dividends. There was no dividend raise between 2007 and 2010. However, tax law changes for income trusts were announced in October 2006. This could explain the lack of increases then. I cannot find any intent of what the company will do with dividends and analysts do not mention what they expect from dividends.
However, the Dividend Payout Ratios are good on this stock. The 5 year DPR for EPS is at 43.7% and for CFPS is at 25.7%. The DPR for 2013 for EPS is at 33% and for CFPS is at 19.1%. The DPR is expected to be even lower for 2014.
Shareholders have done very well with this stock. The stock price was up over 40% in 2012 and up by over 175% in 2013. This has slowed as stock is up just over 2% for 2014. The 5 and 10 year total return on this stock is at 48.12% and 21.23% per year with 43.67% and 17.52% per year from capital gains and 4.45% and 3.71% per year from dividends. Analysts do expect further gains as the 12 months consensus stock price is at $37.00 which is around a 27% rise from today's price.
The Return on Equity was been above 10% each year over the past 10 years. However, prior to 10 years ago, it had a hard time breaking into this range. The ROE for 2013 is at 23.6% and the 5 year median is also 23.6%. The ROE on comprehensive income is slightly higher at 26.8% and this is, of course, a very good sign.
Debt ratios are also good, with the current Liquidity Ratio at 2.42, the Debt Ratio at 2.05 and the Leverage and Debt/Equity Ratios at 1.95 and 0.95.
The 5 year low, median and high median Price/Earnings per Share Ratios are 7.60, 9.38 and 11.17. The corresponding 10 year median P/E Ratios are just slightly higher. The current P/E Ratio is 22.91 based on a stock price of $29.10 and 2014 earnings estimate of $1.27. On a relative basis, the current stock price is expensive. However, a P/E Ratio of 22.91 is not particularly high.
I get a Graham Price of $11.92. The 10 year low, median and high median Price/Graham Price Ratios are 0.90, 1.18 and 1.45. These are rather high ratios for this sort of company. The current P/GP Ratio is 2.44 and however you look at it this ratio shows that this stock is relatively and absolutely expensive using this ratio.
The 10 year Price/Book Value per Share is 3.03. The current P/B Ratio is 7.23 based on a stock price of $29.10 and BVPS of $4.97. The current P/B Ratio is some 93% higher than the 10 year median P/B Ratio. This stock price test says that the stock price is relatively expensive. A P/B Ratio of 7.23 is also on the high side.
Since this was an old income trust stock, using the dividend yield for testing would not be a fair test. However, I can use the Price/CP Ratio test. The 10 year P/CF Ratio is 6.09. The current P/CF Ratio at 12.76 is some 110% higher. This stock price test says that the stock price is relatively expensive. Also a P/CF Ratio of 12.76 is a rather high one.
When I look at the analysts' recommendations, I find only two analysts following this stock and they have recommendations of Strong Buy and Buy. The consensus is a Strong Buy. The 12 month consensus stock price is $37.00 and this implies a total return of 28.38% with 27.15% from capital gains and1.24% from dividends.
The site WKRB recently talked about analysts' ratings on this stock.
Sound bit for Twitter and StockTwits is: Not a great dividend stock and expensive. I like dividend growth stock and this stock is not at the moment such a stock. I also think that the stock price is high, but who knows, money could be made while this stock has momentum. Even this might have past as the TSX has been slowly rising over the past 3 months while this stock has been falling. See my spreadsheet at bad.htm.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow. If this stock turns into a dividend growth stock, I will do more entries on it in the future.
Badger is North America's largest provider of non-destructive excavating services. Badger traditionally works for contractors and facility owners in the utility and petroleum industries. Badger's business model involves the provision of excavating services through two distinct entities: the Operating Partners (franchisees in the United States and agents in Canada), and Badger Corporate. Its web site is here Badger Daylighting Ltd..
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
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