On my other blog I am today writing the Globe and Mail investors Site continue...
I do not own this stock of Finning International Inc. (TSX-FTT, OTC-FINGF). When I was in the market to buy an industrial stock in this area in 2007, I look at this stock was well as Toromont Industries (TSX-TIH). At the time I liked Toromont better, so that is what I bought.
This company has raised their dividend every year since 2002. The 5 and 10 year dividend growth is at 6.8% and 12.75% per year. The last dividend increase occurred in 2014 and was for 16.4%. The current dividend is 2.96% based on a dividend of $0.71 and a stock price of $24.01. The 5 year median dividend yield is 2.13%.
Shareholders have only done well over the past 5 years and not so well over the past 10 years. The total return on this stock is at 10.45% and 5.38% per year over the past 5 and 10 years. The dividend portion of this total return is at 2.89% and 2.17% per year over these periods. The capital gains portion of this total return is at 7.56% and 3.21% per year over these periods.
The stock has been dropping lately ever since August when it reached a high of $33.90. So it has fallen some 29% in the last few months and this is why the total return is current down. The total return to the end of 2013 was at 16.54% and 8.08% per year.
Over the past 5 and 10 years outstanding shares have increased 0% and 1% per year. Shares have increased due to Stock Options and Share Issues and have decreased due to Buy Backs. There has been moderate growth in Revenue, good growth in Earnings and moderate to good growth in cash flow over the past 5 and 10 years.
Revenue is up by 2.4% and 6.5% per year over the past 5 and 10 years. Revenue per Share is up by 2.2% and 5.5% per year over the past 5 and 10 years.
The EPS is up by 28.7% and 8.7% per year over the past 5 and 10 years. EPS hit a peak in 2007. They then dropped but have been rising ever since. The growth in EPS using the 5 year running averages come out a lot lower at 3.4% and 6.1% per year mainly because they had a loss year in 2010. The 2010 loss was because of a loss due to discontinued operations.
The cash flow is up by 7.8% and 8.2% per year over the past 5 and 10 years. The cash flow per share has grown at 7.6% and 7.2% per year over the past 5 and 10 years.
The Return on Equity has been below 10% 4 times in the last 10 years and 2 times in the last 5 years. The 2013 ROE is at 18% and the 5 year median ROE is also 18%. The 2013 ROE on comprehensive income is 20.9%. When the ROE on comprehensive income is at or above the ROE on net income, it suggests that the income is of good quality.
The debt ratios tend to be good, especially in the last 5 years. The Liquidity Ratio for 2013 is 2.10 and its 5 year median value is 1.82. The 2013 Debt Ratio is 1.58 and it has a t year median of 1.58. The Leverage Debt/Equity Ratios are a little high but ok at 2.72 and 1.72 for 2013. Their 10 year median values are 2.68 and 1.68.
Sound bit for Twitter and StockTwits is: Dividend Growth Industrial stock. See my spreadsheet at ftt.htm.
This is the first of two parts. The second part will be posted on Wednesday, December 10, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
This company sells, rents and provides customer support services for Caterpillar equipment and engines. They cover Canada, UK, Argentina, Bolivia, Chile and Uruguay. Its web site is here Finning.
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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