Andrew Peller Ltd.

Sound bite for Twitter and StockTwits is: Dividend growth stock, but currently expensive. I would go with the Dividend Yield test on this stock which shows that the stock is expensive. The other stock price test are showing that the stock price is relatively high also. See my spreadsheet at adw.htm.

I do not own this stock of Andrew Peller Ltd. (TSX-ADW.A, OTC- ADWPF), but I used to. This stock was on Mike Higgs' dividend growth stock list. I owned this stock as Andres Wines Ltd between 1996 and 2000. This stock has a financial year ending at the end of March each year.

There are two types of shares of Class A Shares which are non-voting shares and Class B Shares which are voting shares. Both are traded on the TSX as ADW.A and ADW.B. Only some 21% of the shares are Class B with the rest Class B shares. Most investors buy Class A which is the shares I am following.

This stock has a moderate dividend and low dividend increases. The current dividend is 2.41% and it has a 5 year median of 3.48%. The 10 year median dividend yield is 3.26%. The dividend increases over the past 5 and 10 years is at 4.7% and 6.8% per year.

If you had had this stock for 5, 10, 15 or 20 years to date, the dividend yield if you had paid a relative median price would be 4.88%, 4.55%, 10.62% and 10.84% currently. If you had had this stock for 5, 10, 15 or 20years to date, the dividend payments would have covered 22.5%, 27.7%, 115.2% and 144.9% of your purchase price if you had paid a relative median price for this stock.

The Dividend Payout Ratios have been fairly consistent over time. For the financial year of March 2015 the DPR for EPS was 36.7% and for CFPS was 17%. The corresponding 5 year median DPRs for EPS was 37.9% and for CFPS was 16%.

The total return over the past 5 and 10 years is at 14.47% and 9.91% per year. The portion of this total return attributable to dividends is 2.86% and 2.89% per year. The portion of this total return attributable to capital gain is 14.61% and 7.02% per year.

Shares have declined slightly over the past 5 and 10 years at 0.8% and 0.4% per year. Shares have increased due to an Employee Share Purchase Plan and Stock Options. Shares have decreased due to Buy Backs. Revenue has grown moderately over the past 5 and 10 years. EPS has been volatile but overall has moderate growth. Cash Flow growth is good.

Revenue is up by 3.7% and 6.5% per year over the past 5 and 10 years. Revenue per Share is up by 4.6% and 7% over the past 5 and 10 years. If you look at EPS over the past 5 and 10 years, they are down by 5.4% and up by 6.8% per year. However, since EPS fluctuate, it is better to look at growth of 5 year running average over the past 5 and 10 years and this shows growth of 8% and 7.6% per year. CFPS is up by 18% and 9.7% per year over the past 5 and 10 years.

I have no estimates on this stock as there seems to be no analysts following this stock. There are also no recommendations on this stock.

The 5 year low, median and high median Price/Earnings per Share Ratios are 10.46, 11.32 and 12.17. The corresponding 10 year values are a bit higher at 10.52, 12.01 and 13.21. The current P/E Ratio based on latest 12 month EPS and a stock price of $17.40 is 13.28. This stock price testing suggests that the stock is expensive. The stock price has increased each year since 2010 and is up by some 25% so far this year.

I get a Graham Price of $17.79. The 10 year low, median and high median Price/Graham Price Ratios are 0.71, 0.87 and 0.99. The current P/GP Ratio is 0.98 based on a stock price of $17.40. This stock price testing suggests that the stock price is still reasonable but way above the relative median and getting very close to expensive.

I get a 10 year Price/Book Value per Share Ratio of 1.38. The current P/B Ratio is 1.62 a value some 17.9% higher. This stock price testing suggests that the stock price is still reasonable but above the relative median. The P/B Ratio is based on a stock price of $17.40 and BVPS of $10.73.

The current dividend yield is 2.41% based on dividends of $0.42 and a stock price of $17.40. The 5 year median, historical average and historical median dividend yields are 3.48%, 4.12% and 3.59%. These values are some 31%, 41% and 33% above the current dividend yield. This stock price testing suggests that the stock price is expensive.

There is a report on Stockhouse of this company having increased profitability in the first fiscal quarter of 2016. A recent report on WKRB talks about an insider selling shares. A report on Digital Journal talks about Andrew Peller wining at the Wine Align's 2015 Competition.

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.

Andrew Peller Limited is a leading producer and marketer of quality wines in Canada. With wineries in British Columbia, Ontario and Nova Scotia, the Company markets wines produced from grapes grown in Ontario's Niagara Peninsula, British Columbia's Okanagan and Similkameen Valleys and vineyards around the world. They also market craft beer under the Granville Island brand. The Company produces and markets consumer-made wine kit products through Winexpert and Vineco International Products. The Company's products are sold predominantly in Canada. Class A shares are non-voting. Its web site is here Andrew Peller.

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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