Tuesday, September 22, 2015

High Liner Foods 2

Sorry I forgot to post this yesterday.

On my other blog I am today writing about an article about real investors continue...

Sound bite for Twitter and StockTwits is: Price is reasonable to cheap. The stock price testing using dividend yield says the stock price is cheap. I like this test because it uses current values and no estimates. It is interesting that using P/B Ratio testing, stock comes out expensive. See my spreadsheet on 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. Ryan Irvine of Keystone also likes this company.

Most analysts are looking at the Adjusted EPS this company puts out. The 5 year low, median and high median Price/Adjusted Earnings per Share Ratios are 7.58, 9.59 and 12.72. The 10 year corresponding P/AEPS Ratios are 8.93, 11.56 and 14.75. The current P/AEPS Ratio is 10.05 based on AEPS for 2015 of $1.77 CDN$ (or $1.33 US$) and a stock price of $17.75. This stock price testing suggests that the stock price is relatively reasonable and around the relative median.

I get a Graham Price of $15.71. The 10 year P/GP Ratios are 1.00, 1.13 and 1.24. The current P/GP Ratio is 1.13 based on a stock price of $17.75. This stock price testing suggests that the stock price is relatively reasonable and around the relative median.

I get a Price/Book Value per Share Ratio of 1.38. The current P/B Ratio is 2.04 based on a stock price of $17.75 and BVPS of $8.70. The current P/B Ratio is some 48% above the 10 years median. This stock price testing suggests that the stock price is relatively expensive. Generally speaking a P/B Ratio of 1.50 is a good ratio when buying a stock. The current P/B Ratio is some 36% above this value also.

The 5 year median dividend yield is 1.82% and the current dividend yield at 2.70% is some 48% higher. This current dividend yield is based on dividends of $0.48 and a stock price of $17.75. The historical average and historical median dividend yields are 2.03% and 2.11%. These are values at 19% and 28% above the current dividend yield of 2.70%. This stock price testing suggests that the stock price is relatively cheap.

When I look at analysts' recommendations, I find Buy and Hold Recommendations. The consensus would be a Buy. The 12 month stock price consensus is $23.70. This implies a total return of $36.23% with 33.52% from capital gains and 2.70% from dividends.

There is an interesting analysis of this company at Seeking Alpha. Unfortunately, you have to register with Seeking Alpha to get the whole report. On the other hand Seeking Alpha often has interesting information on Canadian Stocks. On the site Dakota Financial News there is information about what analysts have recently been saying about this stock. On the web site of WKRB there is talk about recent insider buying. There is an interesting at Global News about this company. However, this article says that the company does most of its business in Canada, but according to the Revenue by area the company reports, they have more than twice the revenue in US than in Canada.

This is the second of two parts. The first part was posted on Friday, September 18, 2015 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.

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