Bird Construction Inc. 2

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Sound bite for Twitter and StockTwits is: Reasonable Price and cash. They have a lot of cash on hand. Their cash is currently at $4.17 per share or some 32% of the stock price. This is significant. If you subtract cash from the stock price the P/E becomes just 10.70. See my spreadsheet on Bird Construction Inc.

I do not own this stock of Bird Construction Inc. (TSX-BDT, OTC- BIRDF). This was listed as a top stock in ETF of iShares S&P TSX Canadian Dividend Aristocrats Index. I had not heard of it before, so I decided to do a spreadsheet on this stock.

There is some inside ownership. There is a director, John Bird who owns shares worth around $9.8M and around 2% of the outstanding shares. The chairman owns shares worth around $1.8M but less than 1% of the outstanding shares.

The 5 year low, median and high median Price/Earnings per Share Ratios are 12.66, 15.57 and 18.14. The corresponding 10 year values are a lot lower at 8.67, 10.40 and 13.54. This historical median P/E Ratio is 9.93 and that is lower still than the 5 and 10 year median ratios. The current P/E Ratio is 15.50 based on a stock price of $12.09 and 2016 EPS estimate of $0.78. This stock price testing suggests that the stock price is relatively reasonable and below the median in terms of 5 year P/E Ratios.

I get a Graham Price of $8.31. The 10 year low, median and high median Price/Graham Price Ratios are 1.00, 1.28 and 1.65. The current P/GP Ratio is 1.45. This stock price testing suggests that the stock price is relatively reasonable but above the median.

The 10 year Price/Book Value per Share Ratio is 3.12. The current P/B Ratio is 3.07 based on a stock price of $12.09 and BVPS of $3.94. The current P/B Ratio is some 2% lower than the 10 year ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

The current dividend yield is 6.28%. The historical median dividend yield is 5.86% a value some 7% lower. The current dividend yield is based on dividends of $0.76 and a stock price of $12.09. This stock price testing suggests that the stock price is relatively reasonable and below the median.

When I look at analysts' recommendations, I find Buy, Hold, Underperform and Sell recommendations. The consensus recommendation would be a Hold. The 12 month stock price consensus is $12.38. This implies a total return of 8.68% with 2.40% from capital gains and 6.28% from dividends.

Jason Mann's top pics on BNN includes this stock. Here is some analysts' comments on Stock Chase from late 2015 on Bird Construction.

This is the second of two parts. The first part was posted on Wednesday, January 06, 2016 and is available here. The first part talks about the stock and the second part talks about the stock price.

The company operates from 12 offices across Canada serving the heavy industrial market in all provinces as well as serving the industrial, commercial and institutional (ICI) markets in all provinces with the exception of Quebec. The work of the company is split almost evenly between the heavy industrial market and the ICI sector. Its web site is here Bird Construction Inc.

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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