Sound bite for Twitter and StockTwits is: Cheap energy company. On the best types of tests this stock looks cheap. This company may be a good one to buy if you are looking at energy companies. See my spreadsheet on Husky Energy Inc.
I do not own this stock of Husky Energy Inc. (TSX-HSE, OTC-HUSKF) but I used to. I sold this stock to buy Canadian Utilities Ltd (TSX-CU, OTC-CDUAF). I gave up hoping for an oil and gas recovery. I never had much in oil and gas in any event. I had Husky from 2008 and had a total loss of 4.53% per year. I had a capital loss of 8.34% per year with dividends of 3.81% per year. My capital loss was 82.5% and my total loss was 60.9%.
After the company cut the dividends in 2008, they were flat until 2016 when they were cut again and then totally eliminated in 2017. The dividends I received cut my losses and this can be the value of dividends. A number of analysts feel that dividends will be restored in 2017. This company is into oil and gas so I do not think you could ever count on steady dividends.
Dividend will probably continue to go up and down or be suspended depending on how the company is doing. The company has also given out stock dividends in lieu of cash dividends.
The debt ratios are mostly fine. However, I should mention that the company does depend on cash flow for the Liquidity Ratio. For example in 2015 the Liquidity Ratio was just 0.76. With cash flow after dividends it became 1.43. In 2016 the Liquidity Ratio was 1.35. With cash flows after dividends it was 1.88. The 5 year median Liquidity Ratio is 1.18. With cash flow after dividends the 5 year median becomes 1.88.
The book value has also floated up and down. The book value per share is down by 1.8% and up by 3.95% over the past 5 and 10 years. The company has had Return on Equity above 10%, 4 times in the past 10 years and once over the past 5 years.
The 5 year low, median and high median Price/Earnings per Share Ratios are 13.78, 16.54 and 18.22. The 10 year values are 12.34, 14.53 and 16.18. The historical values are 9.65, 11.94 and 14.16. The current P/E Ratio is 27.37 based on a stock price of $16.15 and 2017 EPS estimate of $0.59. This stock price testing suggests that the stock price is relatively expensive. However, the P/E Ratio test is not always a good test.
I get a Graham Price of $14.85. The 10 year low, median and high median Price/Graham Price Ratios are 0.85, 10.5 and 1.30. The current P/GP Ratio is 1.09 based on a stock price of $16.15. This stock price testing suggests that the stock price is relatively reasonable but above the median.
The 10 year median Price/Book Value per Share Ratio is 1.48. The current P/B Ratio is 0.97 based on a stock price of $16.15 and BVPS of $16.62. The current P/B Ratio is some 34.5% lower than the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap. Also on an absolute basis a P/B Ratio of below 1.00 is saying the stock is selling below its theoretical breakup price and is therefore cheap.
The P/S Ratio is 1.30. The current P/S Ratio is 0.89 based on 2017 revenue estimate of $18,148M, revenue per share of $18.05 and a stock price of $16.15. The current P/S Ratio is some 31% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
When I look at analysts' recommendations, I find Strong Buy, Buy, Hold and Underperform recommendations. The consensus would be a Buy with a 12 month stock price consensus of $18.50. This implies a total return of 14.55%.
Claudia Cattaneo writes in the Financial Post about Husky doing the next big project in Newfoundland. Renee Jackson on The Cerbat Gem talks about recent ratings for this company. For example Scotiabank raised their 12 month stock from $17.00 to $19.00 recently. Muvija.M and Swetha Gopinath from Reuters report on BNN that this company beat the estimates for the first quarter. See what analysts are saying about this stock on Stock Chase. The analysts have mixed views, like the analysts' recommendations.
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 Husky Energy Inc.
The last stock I wrote about was about was MacDonald, Dettwiler & Associates (TSX-MDA, OTC-MDDWF)... learn more. The next stock I will write about will be Goeasy Ltd (TSX-GSY, OTC-EHMEF)... learn more on Friday, June 2, 2017 around 5 pm.. Tomorrow on my other blog I will write about Dividend Investing... learn more on Thursday, June 1, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Wednesday, May 31, 2017
Monday, May 29, 2017
MacDonald, Dettwiler & Associates
Sound bite for Twitter and StockTwits is: Merger with DigitalGlobe. This could means that this is possibly another stock I will have to replace. It could be a reverse merger like Waste Connections was. The deal is to close in the second half of 2017. Price seems relatively cheap at present but takeover/merger with DigitalGlobe is an unknown. Price momentum is downward. See my spreadsheet on MacDonald, Dettwiler & Associates, but it is not updated as there is really not point in that.
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.
The first thing that I noticed is that the stock price of the company is falling. It does not seem to positive about the merger or buy-out or whatever you want to call the deal with DigitalGlobe. This stock has been falling since August of last year and for this year it has basically just gone south. However a research note I read said that they thought that the acquisition of DigitalGlobe will be a positive potential catalyst. But they also called the market for commercial satellites challenging.
MDA's website is currently unavailable. The site does not say why. However, there are a number of places to pick up annual reports and other information so I do not need their site for this. But you have to sort of wonder what is going on when they say that their site is temporarily unavailable.
The year 2016 and the start of 2017 were not great for this company. Revenue and earnings are down but not by a lot. Revenue for 2016 was down by 2.5% and the 12 month period to the end of the first quarter compared to last year is down by 3.3%. Cash Flow was better in 2016, but only increased by 0.4% in 2016. Cash Flow for 12 months period to the end of the first quarter is down by 14%.
As far as dividends go, they only started to pay them in 2012 and there has been only one increase in dividends and that was in 2015. The Dividend Payout Ratio for 2016 for EPS was 40% but it is expected to be 62% in 2017. The 5 year median value is 47%. The DPR for 2016 for CFPS was 15% and is expected to be around 23% in 2017.
The Liquidity Ratio for this company is quite low being only at 0.86 in 2016. If you add in cash flow after dividends it is only 0.98. When this ratio is below 1.00, it means that the current assets cannot cover the currently liabilities. The preferred ratio is 1.50 or better. The rest of the debt ratios are fine.
The 5 year low, median and high median Price/Earnings per Share Ratios are 18.77, 22.50 and 26.10. The corresponding 10 year values are 17.56, 21.80 and 25.39. The historical ones are 14.22, 22.31 and 26.10. The current P/E Ratio is 26.52 based on a stock price of $62.85 and 2017 EPS estimate of 2.37. This stock price testing suggests that the stock price is relatively expensive.
I get a Graham price of $40.96. The 10 year low, median and high median Price/Graham Price Ratios are 1.54, 1.86 and 2.28. The current P/GP Ratio is 1.53 based on a stock price of $62.85. This stock price testing suggests that the stock price is relatively cheap.
I get a 10 year median Price/Book Value per Share Ratio of 3.51. The current P/B Ratio is 2.00 based on a stock price of $62.85 and BVPS of $31.45. The current P/B Ratio is some 43% below the 10 year median. The 10 year median is a little high at 3.51, but 2.00 is quite reasonable. This stock price testing suggests that the stock price is relatively cheap.
I get a 5 year median dividend yield of 1.85%. The current dividend yield at 2.35% is some 27% higher. The current dividend yield is based on dividends of $1.48 and a stock price of $62.85. This stock price testing suggests that the stock price is relatively cheap.
I get a 10 year median P/S Ratio of 1.47. The current P/S Ratio is 1.14 based on 2017 Revenue estimate of $2,003M, Revenue per Share of $55.02 and a stock price of $62.85. The current P/S Ratio is some 22% below the 10 year median. This stock price testing suggests that the stock price is relatively cheap.
When I look at analysts' recommendations, I find Buy and Hold Recommendations. Most of the recommendations are a Buy and the consensus recommendation would be a Buy. The 12 month stock price is $83.18. This implies a total return 34.70% with 32.35% from capital gains and 2.35% from dividends based on a current price of $62.85.
Steve Symington on Motley Fool talks about MacDonald, Dettwiler & Associates impending merger with DigitalGlobe (NYSE:DGI). A Reuters report in the Financial Post says that MDA is buying DGI and will list on the NYSE as well as the TSX. Wayne Landers on Sports Perspectives talks about TD Securities reducing this company's target price from $86.00 to $83.00.
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, Dettwiler & Associates.
The last stock I wrote about was about was Ensign Energy Services (TSX-ESI, OTC-ESVIF)... learn more. The next stock I will write about will be Husky Energy Inc. (TSX-HSE, OTC- HUSKF)... learn more on Wednesday, May 31, 2017 around 5 pm. Tomorrow on my other blog I will write about Ensign and Mullen... learn more on Tuesday, May 30, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
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.
The first thing that I noticed is that the stock price of the company is falling. It does not seem to positive about the merger or buy-out or whatever you want to call the deal with DigitalGlobe. This stock has been falling since August of last year and for this year it has basically just gone south. However a research note I read said that they thought that the acquisition of DigitalGlobe will be a positive potential catalyst. But they also called the market for commercial satellites challenging.
MDA's website is currently unavailable. The site does not say why. However, there are a number of places to pick up annual reports and other information so I do not need their site for this. But you have to sort of wonder what is going on when they say that their site is temporarily unavailable.
The year 2016 and the start of 2017 were not great for this company. Revenue and earnings are down but not by a lot. Revenue for 2016 was down by 2.5% and the 12 month period to the end of the first quarter compared to last year is down by 3.3%. Cash Flow was better in 2016, but only increased by 0.4% in 2016. Cash Flow for 12 months period to the end of the first quarter is down by 14%.
As far as dividends go, they only started to pay them in 2012 and there has been only one increase in dividends and that was in 2015. The Dividend Payout Ratio for 2016 for EPS was 40% but it is expected to be 62% in 2017. The 5 year median value is 47%. The DPR for 2016 for CFPS was 15% and is expected to be around 23% in 2017.
The Liquidity Ratio for this company is quite low being only at 0.86 in 2016. If you add in cash flow after dividends it is only 0.98. When this ratio is below 1.00, it means that the current assets cannot cover the currently liabilities. The preferred ratio is 1.50 or better. The rest of the debt ratios are fine.
The 5 year low, median and high median Price/Earnings per Share Ratios are 18.77, 22.50 and 26.10. The corresponding 10 year values are 17.56, 21.80 and 25.39. The historical ones are 14.22, 22.31 and 26.10. The current P/E Ratio is 26.52 based on a stock price of $62.85 and 2017 EPS estimate of 2.37. This stock price testing suggests that the stock price is relatively expensive.
I get a Graham price of $40.96. The 10 year low, median and high median Price/Graham Price Ratios are 1.54, 1.86 and 2.28. The current P/GP Ratio is 1.53 based on a stock price of $62.85. This stock price testing suggests that the stock price is relatively cheap.
I get a 10 year median Price/Book Value per Share Ratio of 3.51. The current P/B Ratio is 2.00 based on a stock price of $62.85 and BVPS of $31.45. The current P/B Ratio is some 43% below the 10 year median. The 10 year median is a little high at 3.51, but 2.00 is quite reasonable. This stock price testing suggests that the stock price is relatively cheap.
I get a 5 year median dividend yield of 1.85%. The current dividend yield at 2.35% is some 27% higher. The current dividend yield is based on dividends of $1.48 and a stock price of $62.85. This stock price testing suggests that the stock price is relatively cheap.
I get a 10 year median P/S Ratio of 1.47. The current P/S Ratio is 1.14 based on 2017 Revenue estimate of $2,003M, Revenue per Share of $55.02 and a stock price of $62.85. The current P/S Ratio is some 22% below the 10 year median. This stock price testing suggests that the stock price is relatively cheap.
When I look at analysts' recommendations, I find Buy and Hold Recommendations. Most of the recommendations are a Buy and the consensus recommendation would be a Buy. The 12 month stock price is $83.18. This implies a total return 34.70% with 32.35% from capital gains and 2.35% from dividends based on a current price of $62.85.
Steve Symington on Motley Fool talks about MacDonald, Dettwiler & Associates impending merger with DigitalGlobe (NYSE:DGI). A Reuters report in the Financial Post says that MDA is buying DGI and will list on the NYSE as well as the TSX. Wayne Landers on Sports Perspectives talks about TD Securities reducing this company's target price from $86.00 to $83.00.
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, Dettwiler & Associates.
The last stock I wrote about was about was Ensign Energy Services (TSX-ESI, OTC-ESVIF)... learn more. The next stock I will write about will be Husky Energy Inc. (TSX-HSE, OTC- HUSKF)... learn more on Wednesday, May 31, 2017 around 5 pm. Tomorrow on my other blog I will write about Ensign and Mullen... learn more on Tuesday, May 30, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Friday, May 26, 2017
Ensign Energy Services
Sound bite for Twitter and StockTwits is: Dividend Paying Industrial. I do not like dividend stocks paying dividends that they cannot afford. Therefore I am still happy with my switch from this stock to Mullen. The stock price is cheap, but I think that it is cheap for a reason. See my spreadsheet on Ensign Energy Services.
I do not own this stock of Ensign Energy Services (TSX-ESI, OTC-ESVIF). I bought this stock in June 2012. Stock is a good one and was rather cheap in June of 2012. I had been following this stock for some time. I sold this stock in December 2014 to buy Mullen instead. Details of why is in a December 2014 post here. I know I would be selling Ensign at a loss, but I also could buy Mullen cheaply.
The main thing I do not like about this company is their paying of dividends that they cannot afford. Both last year and this year they had an earnings loss, but they continue to pay dividends. Analyst expect two more years of losses before it can earn a profit. Analysts expect that the 2017 and 2018 will be earnings loss years. They expect positive earnings in 2019 of $0.20. This is still way below current dividends.
On the other had they can still fund their dividends through cash flow, but analyst feel that anything over 40% is too high. The Dividend Payout Ratio for Cash Flow in 2016 was 43%. The 5 year median is still low at 19%, but the one for 2016 is high. They expect that dividends will continue to be covered by CFPS in the 30% range for the next couple of years.
The other thing I do not like is the Liquidity Ratio which for 2016 was 0.96. When you add in cash flow after dividends the ratio is still low at 1.26. I like this to be at least 1.50. The 5 year median for this ratio is 1.03, but this ratio has fluctuated a lot as it was 1.77 last year. The other debt ratios are fine.
The 5 year low, median and high median Price/Earnings per Share Ratios are 9.26, 10.92 and 12.58. The 10 year values are 9.20, 11.86 and 15.01. The historical ones are 8.86, 12.41 and 16.67. They are quite similar. The current ones are probably lower due to the last two years of EPS losses. The current P/E Ratio is -9.38. The P/E Ratio for 2018 is -17.13. We have a positive one of 34.25 for 2019, but I think that two years hence in estimates is a long stretch. So let's move on.
I get a Graham Price of $7.23. The 10 year low, median and high median Price/Graham Price Ratios are 0.67, 0.99 and 1.26. The current P/GP Ratio is 0.95 based on a stock price of $6.85. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a 10 year median Price/Book Value per Share Ratio of 1.33. The current P/B Ratio is 0.59 based on BVPS of $11.63 and a stock price of $6.85. The current P/B Ratio is 56% below the 10 year median. This stock price testing suggests that the stock price is relatively cheap. Also when the P/B Ratio is below 1.00 the company is theoretically selling below its breakup value. This is also a positive point.
I get a historical median dividend yield of 1.80%. The current dividend yield is 7.01% based on dividends of $0.48 and a stock price of $6.85. The current dividend yield is some 289% higher than the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.
When I look at analysts' recommendations they are all over the place with Strong Buy, Buy, Hold and Underperform recommendations. Most of the recommendations are a Hold and the consensus is a Hold. The 12 months stock price is $9.30. This implies a total return of 42.77% with 7.01% from dividends and 35.77% from capital gains based on a stock price of $6.85.
A JCTY Staff Writer at JCTY News says that this company's Value Composite score is 33. It is closer to being undervalued than overvalued. Felix Olson on Simply Wall Street talks about debt levels at this company. I am concerned about lack of coverage of current liability by current assets. However, it does have enough cash flow. See what analysts are saying about this stock at Stock Chase. It is not a favourite.
Ensign Energy Services Inc. is an industry leader in the delivery of oilfield services in Canada, the United States and internationally. They are one of the world's leading land-based drilling and well servicing contractors serving crude oil, natural gas and geothermal operators. Its web site is here Ensign Energy Services.
The last stock I wrote about was about was Hardwoods Distribution Inc. (TSX-HWD, OTC-HDIUF)... learn more. The next stock I will write about will be MacDonald, Dettwiler & Associates (TSX-MDA, OTC-MDDWF)... learn more on Monday, May 29, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
I do not own this stock of Ensign Energy Services (TSX-ESI, OTC-ESVIF). I bought this stock in June 2012. Stock is a good one and was rather cheap in June of 2012. I had been following this stock for some time. I sold this stock in December 2014 to buy Mullen instead. Details of why is in a December 2014 post here. I know I would be selling Ensign at a loss, but I also could buy Mullen cheaply.
The main thing I do not like about this company is their paying of dividends that they cannot afford. Both last year and this year they had an earnings loss, but they continue to pay dividends. Analyst expect two more years of losses before it can earn a profit. Analysts expect that the 2017 and 2018 will be earnings loss years. They expect positive earnings in 2019 of $0.20. This is still way below current dividends.
On the other had they can still fund their dividends through cash flow, but analyst feel that anything over 40% is too high. The Dividend Payout Ratio for Cash Flow in 2016 was 43%. The 5 year median is still low at 19%, but the one for 2016 is high. They expect that dividends will continue to be covered by CFPS in the 30% range for the next couple of years.
The other thing I do not like is the Liquidity Ratio which for 2016 was 0.96. When you add in cash flow after dividends the ratio is still low at 1.26. I like this to be at least 1.50. The 5 year median for this ratio is 1.03, but this ratio has fluctuated a lot as it was 1.77 last year. The other debt ratios are fine.
The 5 year low, median and high median Price/Earnings per Share Ratios are 9.26, 10.92 and 12.58. The 10 year values are 9.20, 11.86 and 15.01. The historical ones are 8.86, 12.41 and 16.67. They are quite similar. The current ones are probably lower due to the last two years of EPS losses. The current P/E Ratio is -9.38. The P/E Ratio for 2018 is -17.13. We have a positive one of 34.25 for 2019, but I think that two years hence in estimates is a long stretch. So let's move on.
I get a Graham Price of $7.23. The 10 year low, median and high median Price/Graham Price Ratios are 0.67, 0.99 and 1.26. The current P/GP Ratio is 0.95 based on a stock price of $6.85. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a 10 year median Price/Book Value per Share Ratio of 1.33. The current P/B Ratio is 0.59 based on BVPS of $11.63 and a stock price of $6.85. The current P/B Ratio is 56% below the 10 year median. This stock price testing suggests that the stock price is relatively cheap. Also when the P/B Ratio is below 1.00 the company is theoretically selling below its breakup value. This is also a positive point.
I get a historical median dividend yield of 1.80%. The current dividend yield is 7.01% based on dividends of $0.48 and a stock price of $6.85. The current dividend yield is some 289% higher than the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.
When I look at analysts' recommendations they are all over the place with Strong Buy, Buy, Hold and Underperform recommendations. Most of the recommendations are a Hold and the consensus is a Hold. The 12 months stock price is $9.30. This implies a total return of 42.77% with 7.01% from dividends and 35.77% from capital gains based on a stock price of $6.85.
A JCTY Staff Writer at JCTY News says that this company's Value Composite score is 33. It is closer to being undervalued than overvalued. Felix Olson on Simply Wall Street talks about debt levels at this company. I am concerned about lack of coverage of current liability by current assets. However, it does have enough cash flow. See what analysts are saying about this stock at Stock Chase. It is not a favourite.
Ensign Energy Services Inc. is an industry leader in the delivery of oilfield services in Canada, the United States and internationally. They are one of the world's leading land-based drilling and well servicing contractors serving crude oil, natural gas and geothermal operators. Its web site is here Ensign Energy Services.
The last stock I wrote about was about was Hardwoods Distribution Inc. (TSX-HWD, OTC-HDIUF)... learn more. The next stock I will write about will be MacDonald, Dettwiler & Associates (TSX-MDA, OTC-MDDWF)... learn more on Monday, May 29, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Wednesday, May 24, 2017
Hardwoods Distribution Inc.
Sound bite for Twitter and StockTwits is: Dividend Growth Materials Stock. Stock price is probably reasonable to expensive. It is certainly not cheap. It has done well for shareholders over the past 5 years. See my spreadsheet on Hardwoods Distribution Inc.
I do not own this stock of Hardwoods Distribution Inc. (TSX-HWD, OTC-HDIUF). In April 2017, I asked for suggestions on what stocks I should now follow because of a number that I had followed and had are being bought out. This was one of the suggestions. This stock was certainly a lot easier to do a spreadsheet and analysis than Pizza Pizza was.
As far as dividends go, this company has increased them, decreased them and suspended them and they have only been around since 2004. They also started out as an income trust company and changed to a corporation in 2011. A lot of the old income trust companies have had a hard time switching to corporations as far as dividends are concerned. When they are corporations the dividends are limited by the earnings, but this was not true for income trust companies.
Since dividends were restarted in 2012, the Dividend Payout Ratios for EPS has been very good. The DPR for EPS for 2016 is 12.2% with 5 year running payout at 18.7%. The DPR for CFPS for 2016 is at 10.9% with the 5 year running payout at $10.5%. There is a tension between giving shareholders a return in dividends and keeping money for reinvestment in the business. At the current low DPR, investment in the business should be very possible.
The debt ratios for 2016 are good. The Liquidity Ratio for 2016 is 1.83 with a 5 year median of 2.77. The Debt Ratio is 2.56 for 2016 with a 5 year median of 3.28. The Leverage and Debt/Equity Ratios are also good with the ones for 2016 at 1.64 and 0.64 respectively.
For Return on Equity, it has only been below 10% once in the past 5 years and that is 5 years ago. The ROE for 2016 was 10.6% with the 5 yea median at 12.9%. The ROE on Comprehensive Income for 2016 was 10.4% with a 5 year median of 18.1%.
This company has done well over the past 5 years with Revenues up 30% per year, Revenue per Share up 20.9% per year, EPS up 26.23% per year and CFPS up 40.3% per year. Also the total return has been very good with total return to date at 32.6% per year with dividends of 2.2% per year and capital gain at 30.4% per year.
The 5 year low, median and high median Price/Earnings per Share Ratios are 9.73, 12.55 and 14.74. The 10 year corresponding values are 7.95, 10.55 and 13.10. The historical values are 9.18, 10.78 and 13.98. The current P/E Ratio is 11.84 based on a stock price $19.42 and 2017 EPS estimate of $1.64. This stock price testing suggest that the stock price is relatively reasonable and around the median.
I get a Graham Price of $19.97. The 10 year low, median and high median Price/Graham Price Ratios are 0.55, 0.73 and 0.91. The current P/GP Ratio is 0.97 based on a stock price of $19.42. This stock price testing suggests that the stock price is relatively expensive. However, it should be noted that any P/GP Ratio of 1.00 or lower is considered a very good price when buying stock.
I get a 10 year Price/Book Value per Share Ratio of 1.00. The current P/B Ratio is 1.80 a value some 79% higher. The current P/B Ratio is based on BVPS of $10.80 and a stock price of $19.42. This stock price testing suggests that the stock price is relatively expensive. However, it should be noted that a P/B Ratio of 1.50 (and below) is considered a good P/B Ratio when buying stock.
Since this was an old income trust stock, the dividend yield test may not be a good one. The 5 year median dividend yield is 1.56%. The current dividend yield is 1.29% a value some 17% lower. The current dividend yield is based on dividends of $0.25 and a stock price of $19.42. This testing suggests that the stock price is reasonable, but above the median.
The 10 year median P/S Ratio is 0.28. The current P/S Ratio is 0.39 a value some 40% higher. The P/S Ratio is based on a stock price of $19.42 and 2017 Revenue estimate of $1051M and Revenue per Share of $49.20. This stock price testing suggests that the stock price is relatively expensive.
One of the problems with this stock is that few analysts follow it (there are 4) and they give little in the way of estimates. The 4 analysts that follow this stock give it a rating of Buy, so the consensus recommendation is a Buy. The 12 month stock price consensus is $25.17. This implies a total return of 30.90% with 29.61% from capital gains and $1.29% from dividends.
The staff at Dasher Business Review give some technical analysis of this stock. They the company's VC score is 41 where 0 is an undervalued company and 100 is an overvalued company. David Glaser on Sports Perspectives says that the National Bank has increased the second quarterly earnings for this company from $0.42 to $0.44. On the Buckeye Business Review site this company is given top score for stability and growth. See what analysts are saying about this company on Stock Chase. They think it is a good company.
Hardwoods Distribution Inc. is a Canada-based company engaged in the wholesale distribution of hardwood lumber and related sheet good and specialty products. The Company operates through its Canada and United States segments. Its web site is here Hardwoods Distribution Inc.
The last stock I wrote about was about was Mullen Group (TSX-MTL, OTC-MLLGF)... learn more. The next stock I will write about will be Ensign Energy Services (TSX-ESI, OTC-ESVIF)... learn more on Friday, May 26, 2017 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks... learn more on Thursday, May 25, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
I do not own this stock of Hardwoods Distribution Inc. (TSX-HWD, OTC-HDIUF). In April 2017, I asked for suggestions on what stocks I should now follow because of a number that I had followed and had are being bought out. This was one of the suggestions. This stock was certainly a lot easier to do a spreadsheet and analysis than Pizza Pizza was.
As far as dividends go, this company has increased them, decreased them and suspended them and they have only been around since 2004. They also started out as an income trust company and changed to a corporation in 2011. A lot of the old income trust companies have had a hard time switching to corporations as far as dividends are concerned. When they are corporations the dividends are limited by the earnings, but this was not true for income trust companies.
Since dividends were restarted in 2012, the Dividend Payout Ratios for EPS has been very good. The DPR for EPS for 2016 is 12.2% with 5 year running payout at 18.7%. The DPR for CFPS for 2016 is at 10.9% with the 5 year running payout at $10.5%. There is a tension between giving shareholders a return in dividends and keeping money for reinvestment in the business. At the current low DPR, investment in the business should be very possible.
The debt ratios for 2016 are good. The Liquidity Ratio for 2016 is 1.83 with a 5 year median of 2.77. The Debt Ratio is 2.56 for 2016 with a 5 year median of 3.28. The Leverage and Debt/Equity Ratios are also good with the ones for 2016 at 1.64 and 0.64 respectively.
For Return on Equity, it has only been below 10% once in the past 5 years and that is 5 years ago. The ROE for 2016 was 10.6% with the 5 yea median at 12.9%. The ROE on Comprehensive Income for 2016 was 10.4% with a 5 year median of 18.1%.
This company has done well over the past 5 years with Revenues up 30% per year, Revenue per Share up 20.9% per year, EPS up 26.23% per year and CFPS up 40.3% per year. Also the total return has been very good with total return to date at 32.6% per year with dividends of 2.2% per year and capital gain at 30.4% per year.
The 5 year low, median and high median Price/Earnings per Share Ratios are 9.73, 12.55 and 14.74. The 10 year corresponding values are 7.95, 10.55 and 13.10. The historical values are 9.18, 10.78 and 13.98. The current P/E Ratio is 11.84 based on a stock price $19.42 and 2017 EPS estimate of $1.64. This stock price testing suggest that the stock price is relatively reasonable and around the median.
I get a Graham Price of $19.97. The 10 year low, median and high median Price/Graham Price Ratios are 0.55, 0.73 and 0.91. The current P/GP Ratio is 0.97 based on a stock price of $19.42. This stock price testing suggests that the stock price is relatively expensive. However, it should be noted that any P/GP Ratio of 1.00 or lower is considered a very good price when buying stock.
I get a 10 year Price/Book Value per Share Ratio of 1.00. The current P/B Ratio is 1.80 a value some 79% higher. The current P/B Ratio is based on BVPS of $10.80 and a stock price of $19.42. This stock price testing suggests that the stock price is relatively expensive. However, it should be noted that a P/B Ratio of 1.50 (and below) is considered a good P/B Ratio when buying stock.
Since this was an old income trust stock, the dividend yield test may not be a good one. The 5 year median dividend yield is 1.56%. The current dividend yield is 1.29% a value some 17% lower. The current dividend yield is based on dividends of $0.25 and a stock price of $19.42. This testing suggests that the stock price is reasonable, but above the median.
The 10 year median P/S Ratio is 0.28. The current P/S Ratio is 0.39 a value some 40% higher. The P/S Ratio is based on a stock price of $19.42 and 2017 Revenue estimate of $1051M and Revenue per Share of $49.20. This stock price testing suggests that the stock price is relatively expensive.
One of the problems with this stock is that few analysts follow it (there are 4) and they give little in the way of estimates. The 4 analysts that follow this stock give it a rating of Buy, so the consensus recommendation is a Buy. The 12 month stock price consensus is $25.17. This implies a total return of 30.90% with 29.61% from capital gains and $1.29% from dividends.
The staff at Dasher Business Review give some technical analysis of this stock. They the company's VC score is 41 where 0 is an undervalued company and 100 is an overvalued company. David Glaser on Sports Perspectives says that the National Bank has increased the second quarterly earnings for this company from $0.42 to $0.44. On the Buckeye Business Review site this company is given top score for stability and growth. See what analysts are saying about this company on Stock Chase. They think it is a good company.
Hardwoods Distribution Inc. is a Canada-based company engaged in the wholesale distribution of hardwood lumber and related sheet good and specialty products. The Company operates through its Canada and United States segments. Its web site is here Hardwoods Distribution Inc.
The last stock I wrote about was about was Mullen Group (TSX-MTL, OTC-MLLGF)... learn more. The next stock I will write about will be Ensign Energy Services (TSX-ESI, OTC-ESVIF)... learn more on Friday, May 26, 2017 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks... learn more on Thursday, May 25, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Tuesday, May 23, 2017
Mullen Group Ltd
I did my first blog entry on May 21, 2008, so I am now being doing this for some 9 years. It has been fun. I have always reviewed my stocks once a year and also looked at stocks I was interested in. Writing reviews forces me, sometimes at least, to think more clearly about what I am investing in.
Sound bite for Twitter and StockTwits is: Dividend Paying Industrial. I would think that the best stock price testing would be using the P/B Ratio and the P/S Ratio. They say that the stock price is reasonable with one below the median and one above the median. Price is probably reasonable rather than cheap even though the stock price is relatively low compared to past history. I am comfortable holding on to this stock at this time. See my spreadsheet on Mullen Group Ltd.
I own this stock of Mullen Group Ltd (TSX-MTL, OTC-MLLGF). I like to look at recommended small cap dividend paying stock to see if they would be a possible good investment now or in the future. The other thing to mention about this stock is that it recently converted from an income trust and has decreased it dividends. The reduction in dividend brought the Dividend Payout Ratios down to a place that would allow for the company to begin growing again.
This stock has also been cutting their dividends lately. They did another cut in 2016 of some 70%. It is never a happy investment when a company cuts dividends, especially since I live of my dividends. However, they are trying to get dividends down to where they can cover them by the earnings. Dividends have gone up and down over the past and I expect that to continue.
The company in the past was a unit trust. These companies are all having a hard time getting to the right dividend level once they are a corporation. I understand the need to have dividends at the right affordable level. Analysts believe that once earnings pick up, the company will again start to increase the dividends. This company does service the oil and gas industries and as such you have to expect volatility.
They have been moving to strengthen their balance sheet. The Liquidity Ratio for 2016 is 8.28 and the Debt Ratio is 2.05. What I normally expected are ratios of 1.50 or higher. The Leverage and Debt/Equity Ratios are also good at 1.95 and 0.95 respectively. Murray Kenneth Mullen is the Chairman and CEO. He has over 3M shares worth almost $50M.
I have lost on this stock. My total return is a loss of 7.67% per year with a capital loss of 11.84% per year and dividends at 4.17% per year. I have had this stock for just over 2 years. Dividends have paid for $9.7% of the cost of my stock. I started off earning a dividend yield of 5.96% and now on my original purchase I am earning a dividend yield of 1.79%.
The 5 year low, median and high median Price/Earnings per Share Ratios are 18.93, 24.73 and 30.52. The corresponding 10 year values are 12.51, 14.81 and 17.11. The historical ones are 12.04, 15.05 and 18.29. The current P/E Ratio is 25.97 based on a stock price of $15.32 and 2017 EPS estimate of $0.59. The recent P/E Ratios have been up recently because the EPS has dropped. This stock price testing suggests that the stock price is relatively expensive. However, when a company is having earning problems the P/E Ratios are going to be high. This may not be the best test to judge the current stock price.
I get a Graham Price of $11.12. The 10 year low, median and high median Price/Graham Price Ratios are 1.03, 1.18 and 1.33. The current P/GP Ratio is 1.38 based on a stock price of $15.32. Since part of the formula for the Graham Price is EPS and the EPS is currently low, this test may not be a good one either. This stock price testing suggests that the stock price is relatively expensive.
The 10 year Price/Book Value per Share Ratio is 1.92. The current P/B Ratio is 1.65 a value some 14% lower. The current P/B Ratio is based on a stock price of $15.32 and BVPS of $9.31. This stock price testing suggests that the stock price is relatively reasonable and below the median.
The dividend yield test may not be great either. This is because this company used to an income trust and the high dividends it had as an income trust will probably never occur again. Also, the company has been lowering dividends lately. However, if I adjust the historical median dividend yield for the decline in dividends due to the change to a corporation, I get an historical median dividend yield of 1.11%. The current dividend yield is 2.35% based on dividends of $0.36 and a stock price of $15.32. The current dividend is some 41% below the adjusted historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.
The 10 year median P/S Ratio is 1.33. The current P/S Ratio is 1.39 which is some 5% higher. The current P/S Ratio is based on 2017 Revenue estimate of $1,144M and Revenue per Share estimate $13.14. This stock price testing suggests that the stock price is relatively reasonable but above the median.
When I look at analysts’ recommendations I find Buy and Hold recommendations. There are slightly more Hold and Buy recommendations and the consensus recommendation is a Hold. The 12 months stock price is $18.67. This implies a total return of 24.22% with 21.87% from capital gains and 2.35% from dividends based on a current price of $15.32.
On May 17, 2016 they did a private placement of shares at $13.30 per share. See the announcement on Market Wired. Jonathan Ratner on the Financial Post says Andrew Bradford, an analyst at Raymond James has lowered his rating on this stock to market perform (Hold) and decreased the 12 month stock price to $16.25. Renee Jackson at The Cerbat Gem says Mullen director Philip Scherman acquired 3,200 shares of the company’s stock at $15.38 recently. Stephen Takacsy thinks that Mullen is a well-run company according to an item on Stock Chase
Mullen Group Ltd. is a corporation that owns a network of independently operated businesses. Mullen is recognized as the largest provider of specialized transportation and related services to the oil and natural gas industry in Western Canada and is one of the leading suppliers of trucking and logistics services in Canada - two sectors of the economy in which Mullen has strong business relationships and industry leadership.. Its web site is here Mullen Group Ltd.
The last stock I wrote about was about was Canadian Utilities Ltd (TSX-CU, OTC-CDUAF)... learn more. The next stock I will write about will be Hardwoods Distribution Inc. (TSX-HWD, OTC-HDIUF)... learn more on Wednesday, May 24 around 5 pm. Today on my other blog I will write about The Elmer Approach... learn more on Tuesday, May 23, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Sound bite for Twitter and StockTwits is: Dividend Paying Industrial. I would think that the best stock price testing would be using the P/B Ratio and the P/S Ratio. They say that the stock price is reasonable with one below the median and one above the median. Price is probably reasonable rather than cheap even though the stock price is relatively low compared to past history. I am comfortable holding on to this stock at this time. See my spreadsheet on Mullen Group Ltd.
I own this stock of Mullen Group Ltd (TSX-MTL, OTC-MLLGF). I like to look at recommended small cap dividend paying stock to see if they would be a possible good investment now or in the future. The other thing to mention about this stock is that it recently converted from an income trust and has decreased it dividends. The reduction in dividend brought the Dividend Payout Ratios down to a place that would allow for the company to begin growing again.
This stock has also been cutting their dividends lately. They did another cut in 2016 of some 70%. It is never a happy investment when a company cuts dividends, especially since I live of my dividends. However, they are trying to get dividends down to where they can cover them by the earnings. Dividends have gone up and down over the past and I expect that to continue.
The company in the past was a unit trust. These companies are all having a hard time getting to the right dividend level once they are a corporation. I understand the need to have dividends at the right affordable level. Analysts believe that once earnings pick up, the company will again start to increase the dividends. This company does service the oil and gas industries and as such you have to expect volatility.
They have been moving to strengthen their balance sheet. The Liquidity Ratio for 2016 is 8.28 and the Debt Ratio is 2.05. What I normally expected are ratios of 1.50 or higher. The Leverage and Debt/Equity Ratios are also good at 1.95 and 0.95 respectively. Murray Kenneth Mullen is the Chairman and CEO. He has over 3M shares worth almost $50M.
I have lost on this stock. My total return is a loss of 7.67% per year with a capital loss of 11.84% per year and dividends at 4.17% per year. I have had this stock for just over 2 years. Dividends have paid for $9.7% of the cost of my stock. I started off earning a dividend yield of 5.96% and now on my original purchase I am earning a dividend yield of 1.79%.
The 5 year low, median and high median Price/Earnings per Share Ratios are 18.93, 24.73 and 30.52. The corresponding 10 year values are 12.51, 14.81 and 17.11. The historical ones are 12.04, 15.05 and 18.29. The current P/E Ratio is 25.97 based on a stock price of $15.32 and 2017 EPS estimate of $0.59. The recent P/E Ratios have been up recently because the EPS has dropped. This stock price testing suggests that the stock price is relatively expensive. However, when a company is having earning problems the P/E Ratios are going to be high. This may not be the best test to judge the current stock price.
I get a Graham Price of $11.12. The 10 year low, median and high median Price/Graham Price Ratios are 1.03, 1.18 and 1.33. The current P/GP Ratio is 1.38 based on a stock price of $15.32. Since part of the formula for the Graham Price is EPS and the EPS is currently low, this test may not be a good one either. This stock price testing suggests that the stock price is relatively expensive.
The 10 year Price/Book Value per Share Ratio is 1.92. The current P/B Ratio is 1.65 a value some 14% lower. The current P/B Ratio is based on a stock price of $15.32 and BVPS of $9.31. This stock price testing suggests that the stock price is relatively reasonable and below the median.
The dividend yield test may not be great either. This is because this company used to an income trust and the high dividends it had as an income trust will probably never occur again. Also, the company has been lowering dividends lately. However, if I adjust the historical median dividend yield for the decline in dividends due to the change to a corporation, I get an historical median dividend yield of 1.11%. The current dividend yield is 2.35% based on dividends of $0.36 and a stock price of $15.32. The current dividend is some 41% below the adjusted historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.
The 10 year median P/S Ratio is 1.33. The current P/S Ratio is 1.39 which is some 5% higher. The current P/S Ratio is based on 2017 Revenue estimate of $1,144M and Revenue per Share estimate $13.14. This stock price testing suggests that the stock price is relatively reasonable but above the median.
When I look at analysts’ recommendations I find Buy and Hold recommendations. There are slightly more Hold and Buy recommendations and the consensus recommendation is a Hold. The 12 months stock price is $18.67. This implies a total return of 24.22% with 21.87% from capital gains and 2.35% from dividends based on a current price of $15.32.
On May 17, 2016 they did a private placement of shares at $13.30 per share. See the announcement on Market Wired. Jonathan Ratner on the Financial Post says Andrew Bradford, an analyst at Raymond James has lowered his rating on this stock to market perform (Hold) and decreased the 12 month stock price to $16.25. Renee Jackson at The Cerbat Gem says Mullen director Philip Scherman acquired 3,200 shares of the company’s stock at $15.38 recently. Stephen Takacsy thinks that Mullen is a well-run company according to an item on Stock Chase
Mullen Group Ltd. is a corporation that owns a network of independently operated businesses. Mullen is recognized as the largest provider of specialized transportation and related services to the oil and natural gas industry in Western Canada and is one of the leading suppliers of trucking and logistics services in Canada - two sectors of the economy in which Mullen has strong business relationships and industry leadership.. Its web site is here Mullen Group Ltd.
The last stock I wrote about was about was Canadian Utilities Ltd (TSX-CU, OTC-CDUAF)... learn more. The next stock I will write about will be Hardwoods Distribution Inc. (TSX-HWD, OTC-HDIUF)... learn more on Wednesday, May 24 around 5 pm. Today on my other blog I will write about The Elmer Approach... learn more on Tuesday, May 23, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Friday, May 19, 2017
Canadian Utilities Ltd
Sound bite for Twitter and StockTwits is: Dividend Growth Utility. I moved up my review of this stock because I now own it. It is still relatively reasonably priced but not as reasonable has it been in the recent past. I prefer the P/P Ratio and dividend yield tests. See my spreadsheet on Canadian Utilities Ltd.
I own this stock of Canadian Utilities Ltd (TSX-CU, OTC-CDUAF). This is a dividend growth utility stock. 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. ATCO (TSX-ACO-X) owns 88% of this stock, so you would not buy both these stocks. I bought this stock in 2017.
This stock has a great reputation for increasing dividends which they have since 1973 which is over 40 years ago. Dividend yield has been moderate and the dividend increases have also been moderate. The current dividend is 3.58%, the 5 year median is 2.78% and the 10 year one is 2.98% with an historical median dividend yield of 3.67%. The 5 and 10 year dividend growth is at 10% and 8.5% per year. The last dividend increase was for 10% and it for 2017.
If the company continues to increase the dividends around 10% per year then in 5, 10 or 15 years you could be earning 5.76%, 9.28% or 14.95% on your purchase of today based on a stock price of $39.96.
The company is still off the highs it reached in 2015 because they have to close down all the coal plants they have in Alberta that is producing electricity. There was an article by Geoffrey Morgan in the Financial Post about this in 2015. However, after the company's stock hit bottom at the end of 2015, it has been on an upswing.
As with most utility companies, this company has a lot of debt. The level is not high enough for concern through. The Long Term Debt/Market Cap Ratio is 0.85. The Liquidity Ratio is low at 1.10, but if you add in cash flow after dividends, the ratio is a healthy 2.56. The Debt Ratio is good at 1.52. The Leverage and Debt/Equity Ratios are a bit high but rather typical of utilities at 2.93 and 1.93, respectively.
The Return on Equity is good. The 5 year median is 14.9% and the one for 2016 was 12.9%. It has only been below 10% once in the past 5 years and also once in the past 10 years.
The 5 year low, median and high median Price/Earnings per Share Ratios are 14.91, 17.24 and 19.56. The 10 year values are 13.98, 15.65 and 17.51. The historical values are 10.78, 13.51 and 15.79. The current P/E Ratio is 22.58 based on a stock price of $39.96 and 2017 EPS estimate of $1.77. This stock price testing suggests that the stock price is relatively expensive.
I get a Graham Price of $27.32. The 10 year low, median and high median Price/Graham Price Ratios are 1.12, 1.26 and 1.41. The current P/GP Ratio is 1.46 based on a stock price of $39.96. This stock price testing suggests that the stock price is relatively expensive.
The 10 year median Price/Book Value per Share Ratio is 2.25. The current P/B Ratio is 2.13 based on BVPS of $18.74 and a stock price of $39.96. The current P/B Ratio is some 5% lower than the 10 year median. This stock price testing suggests that the stock price is reasonable and below the median.
The historical median dividend yield is 3.67%. The current dividend yield is 3.58% based on dividends of $1.43 and a stock price of $39.96. The current dividend is some 3% below the historical dividend yield. This stock price testing suggests that the stock price is reasonable but above the median. It is close to the median though. Also the 5 year median is 2.78% and the 10 year one is 2.98%. The current dividend is a lot higher than the 5 and 10 year medians.
When I look at analysts' recommendations, I find Buy, Hold and Underperform Recommendations. Most of the recommendations are a Hold and the consensus is a Hold. The 12 month stock price is $41.57. This implies a total return of 7.61% with 4.03% from capital gains and 3.58% from dividends based on a current stock price of 39.96.
There is a press release on BOE Report about the company offering Preferred Shareholders a conversion option. Staff at the Benton Bulletin talk about some technical analysis. The company has a Piotroski F-Score of 7. Generally a stock with a high score of 8 or 9 would be seen as strong, and a stock scoring on the lower end between 0 and 2 would be viewed as weaker. See what analysts are saying about this stock on Stock Chase. They generally like this stock.
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 Ltd.
The last stock I wrote about was about was Hammond Power Solutions Inc. (TSX-HPS, OTC- HMDPF)... learn more. The next stock I will write about will Mullen Group (TSX-MTL, OTC-MLLGF)... learn more on Tuesday, May 23, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
I own this stock of Canadian Utilities Ltd (TSX-CU, OTC-CDUAF). This is a dividend growth utility stock. 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. ATCO (TSX-ACO-X) owns 88% of this stock, so you would not buy both these stocks. I bought this stock in 2017.
This stock has a great reputation for increasing dividends which they have since 1973 which is over 40 years ago. Dividend yield has been moderate and the dividend increases have also been moderate. The current dividend is 3.58%, the 5 year median is 2.78% and the 10 year one is 2.98% with an historical median dividend yield of 3.67%. The 5 and 10 year dividend growth is at 10% and 8.5% per year. The last dividend increase was for 10% and it for 2017.
If the company continues to increase the dividends around 10% per year then in 5, 10 or 15 years you could be earning 5.76%, 9.28% or 14.95% on your purchase of today based on a stock price of $39.96.
The company is still off the highs it reached in 2015 because they have to close down all the coal plants they have in Alberta that is producing electricity. There was an article by Geoffrey Morgan in the Financial Post about this in 2015. However, after the company's stock hit bottom at the end of 2015, it has been on an upswing.
As with most utility companies, this company has a lot of debt. The level is not high enough for concern through. The Long Term Debt/Market Cap Ratio is 0.85. The Liquidity Ratio is low at 1.10, but if you add in cash flow after dividends, the ratio is a healthy 2.56. The Debt Ratio is good at 1.52. The Leverage and Debt/Equity Ratios are a bit high but rather typical of utilities at 2.93 and 1.93, respectively.
The Return on Equity is good. The 5 year median is 14.9% and the one for 2016 was 12.9%. It has only been below 10% once in the past 5 years and also once in the past 10 years.
The 5 year low, median and high median Price/Earnings per Share Ratios are 14.91, 17.24 and 19.56. The 10 year values are 13.98, 15.65 and 17.51. The historical values are 10.78, 13.51 and 15.79. The current P/E Ratio is 22.58 based on a stock price of $39.96 and 2017 EPS estimate of $1.77. This stock price testing suggests that the stock price is relatively expensive.
I get a Graham Price of $27.32. The 10 year low, median and high median Price/Graham Price Ratios are 1.12, 1.26 and 1.41. The current P/GP Ratio is 1.46 based on a stock price of $39.96. This stock price testing suggests that the stock price is relatively expensive.
The 10 year median Price/Book Value per Share Ratio is 2.25. The current P/B Ratio is 2.13 based on BVPS of $18.74 and a stock price of $39.96. The current P/B Ratio is some 5% lower than the 10 year median. This stock price testing suggests that the stock price is reasonable and below the median.
The historical median dividend yield is 3.67%. The current dividend yield is 3.58% based on dividends of $1.43 and a stock price of $39.96. The current dividend is some 3% below the historical dividend yield. This stock price testing suggests that the stock price is reasonable but above the median. It is close to the median though. Also the 5 year median is 2.78% and the 10 year one is 2.98%. The current dividend is a lot higher than the 5 and 10 year medians.
When I look at analysts' recommendations, I find Buy, Hold and Underperform Recommendations. Most of the recommendations are a Hold and the consensus is a Hold. The 12 month stock price is $41.57. This implies a total return of 7.61% with 4.03% from capital gains and 3.58% from dividends based on a current stock price of 39.96.
There is a press release on BOE Report about the company offering Preferred Shareholders a conversion option. Staff at the Benton Bulletin talk about some technical analysis. The company has a Piotroski F-Score of 7. Generally a stock with a high score of 8 or 9 would be seen as strong, and a stock scoring on the lower end between 0 and 2 would be viewed as weaker. See what analysts are saying about this stock on Stock Chase. They generally like this stock.
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 Ltd.
The last stock I wrote about was about was Hammond Power Solutions Inc. (TSX-HPS, OTC- HMDPF)... learn more. The next stock I will write about will Mullen Group (TSX-MTL, OTC-MLLGF)... learn more on Tuesday, May 23, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Wednesday, May 17, 2017
Hammond Power Solutions Inc.
Sound bite for Twitter and StockTwits is: Small cap dividend stock. According to the stock price tests using P/B Ratio and Dividend yield, this stock is relatively cheap. There is also some insider buying going on. I am comfortable holding my shares for the time being. See my spreadsheet on Hammond Power Solutions Inc.
I own this stock of Hammond Power Solutions Inc. (TSX-HPS, OTC-HMDPF). I bought this stock as my main purchase for the TFSA in 2013 and 2014. I picked Hammond initially in 2013 as my main buy because it has good growth and reasonable dividend. Also, I think that it important to try out newer smaller companies for investment purposes. Companies on the TSX are always changing and it is good to get into new industries and new companies. The problem of this, of course, is you do not always know what industries and companies will be long lasting.
My problem is that this stock has not done well since I bought it. I bought it in 2013 and some more in 2014. My total return today is a loss of 3.67% per year with a capital loss of 6.77% and dividends of 3.10%. I have had this stock for a total of 4.3 years. So far, on a long term basis the company has been having lower highs since it peaked in 2007.
This is a small cap stock which started to pay a dividend in 2009. They stopped raising their dividends 2014. The problem is that their earnings hit a peak in 2008 and have been travelling south ever since. The first quarter of 2017 is the first earnings increase. The Dividend Payout Ratio for 2016 was 150% with a 5 year median of 58%. The coverage by cash flow is better. The Dividend Payout Ratio for 2016 was 14.21% with a 5 year median of 15.51%.
The good things are the debt ratios. This company no longer has any long term debt. The Liquidity Ratio for 2016 is 1.48 with a 5 year median of 1.56. The first quarterly report has a Liquidity Ratio of 1.52. The Debt Ratio is 2.43 with a 5 year median of 2.71. The Leverage and Debt/Equity Ratios are 2016 is 1.70 and 0.70 respectively, with 5 year ratios of 1.58 and 0.58 respectively.
The other thing to mention is the amount of cash they have. The cash per share is $2.15. With the current stock price of $6.50 the cash is some 35% of the stock price.
The 5 year low, median and high median Price/Earnings per Share Ratios are 12.62, 16.79 and 20.96. The 10 year values are 10.31, 12.34 and 15.04. The historical ones are 6.93, 9.10 and 10.73. Since no analyst is giving estimates for this stock, I am using for current EPS for the 12 month period ending in April 2017, which is $0.18. This gives a P/E Ratio of 36.11 on a current stock price of $6.50. This would suggest that the stock price is relatively expensive.
I get a Graham Price of $6.54. The 10 year low, median and high median Price/Graham Price Ratios are 0.68, 0.87 and 1.04. The current P/GP Ratio is 0.92 based on a stock price of $6.50. This stock price testing suggests that the stock price is reasonable but above the median.
Now we have the real tests. The 10 year median Price/Book Value per Share Ratio is 1.13. The current P/B Ratio is 0.61 based on BVPS of $10.58 and a stock price of $6.50. The current P/B Ratio is 45% lower than the 10 year median P/B Ratio. This stock price testing suggests that the stock price is relatively cheap.
The historical median dividend yield is 2.08%. The current dividend yield is 3.69% based on dividends of $0.24 and a stock price of $6.50. The current dividend yield is some 77% higher than the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.
The company on Market Wired talks about having a very good first quarter in 2017. There is some technical analysts at Davidson Register. The CCI shows it is neither overbought nor oversold. The ADX gives no clear signal of a strong or weak trend. Veer Mallick on Simply Wall Street discusses the low ROE for this company. He says that if ROE increases due to increasing debt it is cautionary signal. However, the company has just reduced its long term debt to zero. See what analysis are saying about this company on Stock Chase. They think it is a buy but they are all years back.
Hammond Power Solutions Inc. is the largest manufacturer of dry-type transformers in North America. They engineer and manufacture a wide range of custom transformers that are exported globally in electrical equipment and systems. They support solid industries such as oil and gas, mining, steel, waste and water treatment, and wind power-generation. Its web site is here Hammond Power Solutions Inc.
The last stock I wrote about was about was Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF)... learn more. The next stock I will write about will be Canadian Utilities Ltd (TSX-CU, OTC-CDUAF)... learn more on Friday, May 19, 2017 around 5 pm. Tomorrow on my other blog I will write about Beta Ratings... learn more on Thursday, May 18, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
I own this stock of Hammond Power Solutions Inc. (TSX-HPS, OTC-HMDPF). I bought this stock as my main purchase for the TFSA in 2013 and 2014. I picked Hammond initially in 2013 as my main buy because it has good growth and reasonable dividend. Also, I think that it important to try out newer smaller companies for investment purposes. Companies on the TSX are always changing and it is good to get into new industries and new companies. The problem of this, of course, is you do not always know what industries and companies will be long lasting.
My problem is that this stock has not done well since I bought it. I bought it in 2013 and some more in 2014. My total return today is a loss of 3.67% per year with a capital loss of 6.77% and dividends of 3.10%. I have had this stock for a total of 4.3 years. So far, on a long term basis the company has been having lower highs since it peaked in 2007.
This is a small cap stock which started to pay a dividend in 2009. They stopped raising their dividends 2014. The problem is that their earnings hit a peak in 2008 and have been travelling south ever since. The first quarter of 2017 is the first earnings increase. The Dividend Payout Ratio for 2016 was 150% with a 5 year median of 58%. The coverage by cash flow is better. The Dividend Payout Ratio for 2016 was 14.21% with a 5 year median of 15.51%.
The good things are the debt ratios. This company no longer has any long term debt. The Liquidity Ratio for 2016 is 1.48 with a 5 year median of 1.56. The first quarterly report has a Liquidity Ratio of 1.52. The Debt Ratio is 2.43 with a 5 year median of 2.71. The Leverage and Debt/Equity Ratios are 2016 is 1.70 and 0.70 respectively, with 5 year ratios of 1.58 and 0.58 respectively.
The other thing to mention is the amount of cash they have. The cash per share is $2.15. With the current stock price of $6.50 the cash is some 35% of the stock price.
The 5 year low, median and high median Price/Earnings per Share Ratios are 12.62, 16.79 and 20.96. The 10 year values are 10.31, 12.34 and 15.04. The historical ones are 6.93, 9.10 and 10.73. Since no analyst is giving estimates for this stock, I am using for current EPS for the 12 month period ending in April 2017, which is $0.18. This gives a P/E Ratio of 36.11 on a current stock price of $6.50. This would suggest that the stock price is relatively expensive.
I get a Graham Price of $6.54. The 10 year low, median and high median Price/Graham Price Ratios are 0.68, 0.87 and 1.04. The current P/GP Ratio is 0.92 based on a stock price of $6.50. This stock price testing suggests that the stock price is reasonable but above the median.
Now we have the real tests. The 10 year median Price/Book Value per Share Ratio is 1.13. The current P/B Ratio is 0.61 based on BVPS of $10.58 and a stock price of $6.50. The current P/B Ratio is 45% lower than the 10 year median P/B Ratio. This stock price testing suggests that the stock price is relatively cheap.
The historical median dividend yield is 2.08%. The current dividend yield is 3.69% based on dividends of $0.24 and a stock price of $6.50. The current dividend yield is some 77% higher than the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.
The company on Market Wired talks about having a very good first quarter in 2017. There is some technical analysts at Davidson Register. The CCI shows it is neither overbought nor oversold. The ADX gives no clear signal of a strong or weak trend. Veer Mallick on Simply Wall Street discusses the low ROE for this company. He says that if ROE increases due to increasing debt it is cautionary signal. However, the company has just reduced its long term debt to zero. See what analysis are saying about this company on Stock Chase. They think it is a buy but they are all years back.
Hammond Power Solutions Inc. is the largest manufacturer of dry-type transformers in North America. They engineer and manufacture a wide range of custom transformers that are exported globally in electrical equipment and systems. They support solid industries such as oil and gas, mining, steel, waste and water treatment, and wind power-generation. Its web site is here Hammond Power Solutions Inc.
The last stock I wrote about was about was Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF)... learn more. The next stock I will write about will be Canadian Utilities Ltd (TSX-CU, OTC-CDUAF)... learn more on Friday, May 19, 2017 around 5 pm. Tomorrow on my other blog I will write about Beta Ratings... learn more on Thursday, May 18, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Monday, May 15, 2017
Pizza Pizza Royalty Corp
Sound bite for Twitter and StockTwits is: Good Dividend Payer. I hate the complexity of the accounting because it is easy to make mistakes in my analysis. Complexity comes in because PPL owns royalties to PZA, but PPL also owns a part of PZA and received income from it. I will not be buying PZA for my TFSA account as I cannot ignore the fact of the relatively high price. See my spreadsheet on Pizza Pizza Royalty Corp.
I do not own this stock of Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF). A number of people have recommended this stock, so I decided to take a look at it. There is nothing inherently wrong with this type of royalty corp. I do not like the complexity of the accounting and having to evaluate both companies involved. The more complex a situation the more likely one can make an error in evaluating a company.
One of my concerns about this type of company is whether or not the under lying entity can afford to pay the royalty payments required to the Royalty Corp so that they can pay dividends. The accounting done by the Royalty Corp and the underlying entity is not always easy to follow. However, at the moment the underlying entity, in this case Pizza Pizza Limited or PPL does perhaps get sufficient income and cash flow to cover their Royalty payments.
PPL in 2016 paid out 91.6% of their income in Royalties to PZA. The 5 year median is 76.18%. However, if we turn to cash flow the payout is higher. For 2016 the Royalties Payout Ratio is 264.12% with a 5 year median of 103.71%. Except I do not think the cash flow coverage is really that high because they take off from Cash Flow from Operations things like the income they received from PZA. I think that the real Cash Flow Coverage of Dividends is 91% with a 5 year median of 81%. (I could be wrong on this.)
On the other hand PPL has cash on hand in 2016 equal to 36.86% of the Royalties paid in 2016. The cash on hand over the past 5 years has equaled 43% of the Royalties paid. The current cash is from investment activities for the last 2 years. In 2015 they got cash from selling shares of PZA. In 2016 they got cash from short-term investments (which some was from the cash they got selling PZA shares). Also they get income from PZA each year.
Can PZA cover distributions? Traditionally you look at dividends per share to EPS and CFPS. Dividend Payout Ratio re EPS is 98.37% with a 5 year median also of 98.37%. The Dividend Payout Ratio for CFPS is 75.17% with a 5 year median of 72.56%. In this traditional method it looks like the dividends are covered.
When I suspect this is not the full story, I check the dividends paid in the Cash Flow statement with the Net Income of the Income Statement. The ratio of the net income to PZA dividends is 77.92%. However, PZA also pays dividends to PPL. So total dividends compared to net income is 102.55% in 2016 with a 5 year median of 103.39%. It would seem that they are paying more in dividends than net income.
I also looked Dividends compared to Cash Flow (net of WC). The payout ratio here is 98.95% with a 5 year median of 98.95%. PPL says that at the end of 2016 they own some 20.4% of PZA. (Note in these calculations I use the dividends paid by PZA to shareholders and paid to PPL. The Cash Flow is net of Working Capital. See my blog for further information on Cash Flow excluding Working Capital.) It looks like cash flow can cover dividends.
How much does PZA distribute re income? I have been told that PZA shareholders get the royalties paid by PPL. I wanted to see how much of these royalties are distributed to PZA shareholders. In 2016 PZA shareholders got 58.95% of the royalties with 5 year median of 52.79% and PPL got 18.64% of the royalties with a 5 year median of 22.79%. In total, PZA distributed 77.58% of the royalties in 2016 with a 5 year median of 76.71% of royalties received. PZA shareholders do not receive a high portion of the royalties in dividends.
The 5 year low, median and high median Price/Earnings per Share Ratios are 15.83, 17.36 and 18.87. The 10 year corresponding values are 14.19, 15.97 and 17.22. The values since this stock went public 12 years ago are 13.48, 15.35 and 16.96. So it would appear that part of the increase in the stock price is a rising P/E Ratio. The current P/E Ratio is 18.71 based on a stock price of $17.40 and 2017 EPS estimate of $0.93. This stock price testing suggests that stock price is relatively expensive.
I get a current Graham Price of $13.36. I get 10 year low, median and high median Price/Graham Price Ratios of 0.86, 0.98 and 1.10. The current P/GP Ratio is 1.30 based on a stock price of $17.40. This stock price testing suggests that stock price is relatively expensive.
I get a 10 year median Price/Book Value per Share Ratio of 1.25. The current P/B Ratio is 2.04 based on a stock price of $17.40 and BVPS of $8.53. The current P/B Ratio is some 64% higher than the 10 year median ratio. This stock price testing suggests that stock price is relatively expensive.
When this stock changed from an income trust to a corporation it decreased the dividends by some 25%. If you decrease the historical median dividend yield by 25% you get a yield of 6.34%. The 5 year median dividend yield is 5.87%. The current dividend yield is 4.92% based on dividends of $0.83 and a stock price of $17.40. The current dividend yield is 22.41% and 16.30% lower than the adjusted historical dividend yield and the 5 year median dividend yield. This stock price testing suggests that the stock price is relatively expensive.
I can only find one analysts following this stock and the recommendation is a Buy. The 12 month target price is $19.00. This implies a total return of 14.11% with 9.20% from capital gains and 4.92% from dividends.
Staff at Lenox Ledger says that using Value Composite score that PZA is neither overvalued or undervalued. John Heinzl on The Globe and Mail talks about PPL ownership in PZA. Frank Brewer at Simply Wall Street looks at PZA's debt levels. See what analysts have said about this company on Stock Chase.
Pizza Pizza is a large pizza operator in Canada, with more than 700 locations nationwide Pizza Pizza is the largest pizza operator in and a growing presence in Quebec. The income fund owns the Pizza Pizza (PP) and Pizza 73 (P73) trademarks and licenses these trademarks to Pizza Pizza Limited in exchange for a royalty of 6% and 9% of the gross sales of PP and P73, respectively. Its web site is here Pizza Pizza Royalty Corp.
The last stock I wrote about was about was Reitmans (Canada) Ltd. (TSX-RET.A, OTC-RTMAF)... learn more. The next stock I will write about will be Hammond Power Solutions Inc. (TSX-HPS, OTC- HMDPF)... learn more on Wednesday, May 17, 2017 around 5 pm. Tomorrow on my other blog I will write about a portfolio for the long term... learn more on Tuesday, May 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
I do not own this stock of Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF). A number of people have recommended this stock, so I decided to take a look at it. There is nothing inherently wrong with this type of royalty corp. I do not like the complexity of the accounting and having to evaluate both companies involved. The more complex a situation the more likely one can make an error in evaluating a company.
One of my concerns about this type of company is whether or not the under lying entity can afford to pay the royalty payments required to the Royalty Corp so that they can pay dividends. The accounting done by the Royalty Corp and the underlying entity is not always easy to follow. However, at the moment the underlying entity, in this case Pizza Pizza Limited or PPL does perhaps get sufficient income and cash flow to cover their Royalty payments.
PPL in 2016 paid out 91.6% of their income in Royalties to PZA. The 5 year median is 76.18%. However, if we turn to cash flow the payout is higher. For 2016 the Royalties Payout Ratio is 264.12% with a 5 year median of 103.71%. Except I do not think the cash flow coverage is really that high because they take off from Cash Flow from Operations things like the income they received from PZA. I think that the real Cash Flow Coverage of Dividends is 91% with a 5 year median of 81%. (I could be wrong on this.)
On the other hand PPL has cash on hand in 2016 equal to 36.86% of the Royalties paid in 2016. The cash on hand over the past 5 years has equaled 43% of the Royalties paid. The current cash is from investment activities for the last 2 years. In 2015 they got cash from selling shares of PZA. In 2016 they got cash from short-term investments (which some was from the cash they got selling PZA shares). Also they get income from PZA each year.
Can PZA cover distributions? Traditionally you look at dividends per share to EPS and CFPS. Dividend Payout Ratio re EPS is 98.37% with a 5 year median also of 98.37%. The Dividend Payout Ratio for CFPS is 75.17% with a 5 year median of 72.56%. In this traditional method it looks like the dividends are covered.
When I suspect this is not the full story, I check the dividends paid in the Cash Flow statement with the Net Income of the Income Statement. The ratio of the net income to PZA dividends is 77.92%. However, PZA also pays dividends to PPL. So total dividends compared to net income is 102.55% in 2016 with a 5 year median of 103.39%. It would seem that they are paying more in dividends than net income.
I also looked Dividends compared to Cash Flow (net of WC). The payout ratio here is 98.95% with a 5 year median of 98.95%. PPL says that at the end of 2016 they own some 20.4% of PZA. (Note in these calculations I use the dividends paid by PZA to shareholders and paid to PPL. The Cash Flow is net of Working Capital. See my blog for further information on Cash Flow excluding Working Capital.) It looks like cash flow can cover dividends.
How much does PZA distribute re income? I have been told that PZA shareholders get the royalties paid by PPL. I wanted to see how much of these royalties are distributed to PZA shareholders. In 2016 PZA shareholders got 58.95% of the royalties with 5 year median of 52.79% and PPL got 18.64% of the royalties with a 5 year median of 22.79%. In total, PZA distributed 77.58% of the royalties in 2016 with a 5 year median of 76.71% of royalties received. PZA shareholders do not receive a high portion of the royalties in dividends.
The 5 year low, median and high median Price/Earnings per Share Ratios are 15.83, 17.36 and 18.87. The 10 year corresponding values are 14.19, 15.97 and 17.22. The values since this stock went public 12 years ago are 13.48, 15.35 and 16.96. So it would appear that part of the increase in the stock price is a rising P/E Ratio. The current P/E Ratio is 18.71 based on a stock price of $17.40 and 2017 EPS estimate of $0.93. This stock price testing suggests that stock price is relatively expensive.
I get a current Graham Price of $13.36. I get 10 year low, median and high median Price/Graham Price Ratios of 0.86, 0.98 and 1.10. The current P/GP Ratio is 1.30 based on a stock price of $17.40. This stock price testing suggests that stock price is relatively expensive.
I get a 10 year median Price/Book Value per Share Ratio of 1.25. The current P/B Ratio is 2.04 based on a stock price of $17.40 and BVPS of $8.53. The current P/B Ratio is some 64% higher than the 10 year median ratio. This stock price testing suggests that stock price is relatively expensive.
When this stock changed from an income trust to a corporation it decreased the dividends by some 25%. If you decrease the historical median dividend yield by 25% you get a yield of 6.34%. The 5 year median dividend yield is 5.87%. The current dividend yield is 4.92% based on dividends of $0.83 and a stock price of $17.40. The current dividend yield is 22.41% and 16.30% lower than the adjusted historical dividend yield and the 5 year median dividend yield. This stock price testing suggests that the stock price is relatively expensive.
I can only find one analysts following this stock and the recommendation is a Buy. The 12 month target price is $19.00. This implies a total return of 14.11% with 9.20% from capital gains and 4.92% from dividends.
Staff at Lenox Ledger says that using Value Composite score that PZA is neither overvalued or undervalued. John Heinzl on The Globe and Mail talks about PPL ownership in PZA. Frank Brewer at Simply Wall Street looks at PZA's debt levels. See what analysts have said about this company on Stock Chase.
Pizza Pizza is a large pizza operator in Canada, with more than 700 locations nationwide Pizza Pizza is the largest pizza operator in and a growing presence in Quebec. The income fund owns the Pizza Pizza (PP) and Pizza 73 (P73) trademarks and licenses these trademarks to Pizza Pizza Limited in exchange for a royalty of 6% and 9% of the gross sales of PP and P73, respectively. Its web site is here Pizza Pizza Royalty Corp.
The last stock I wrote about was about was Reitmans (Canada) Ltd. (TSX-RET.A, OTC-RTMAF)... learn more. The next stock I will write about will be Hammond Power Solutions Inc. (TSX-HPS, OTC- HMDPF)... learn more on Wednesday, May 17, 2017 around 5 pm. Tomorrow on my other blog I will write about a portfolio for the long term... learn more on Tuesday, May 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Friday, May 12, 2017
Reitmans (Canada) Ltd
Sound bite for Twitter and StockTwits is: Recovering Retail, maybe. This is going into its 5 year of problems. The best stock price test is probably the P/B Ratio test. The P/E Ratio test makes no sense and for the dividend yield test, this is a stock which dropped the dividend 75% some years ago and has had flat dividend ever since. It is probable that this company will survive. However, will it ever thrive again? It is in the clothing business and this is a tough business. See my spreadsheet on Reitmans (Canada) Ltd.
I think the thing to ask is has this been a worthwhile investment. So far the answer is no, but then I have only been in this stock for some 3.6 years. I did not invest much into this company, just over $3,000. My loss to date has been at 6.3% per year. My capital loss is at 29%, but with dividends it is lower at 18.5%. I have not invested much in this so at the moment I will continue to hold it. It is fun to watch.
They used to be a dividend growth company. Because of problems they reduced their dividends by 75% in 2014. Since then they have been flat. Problem is that they are having a hard time paying the dividends that they are giving. For the financial year ending in January 2017, the Dividend Payout Ratio for EPS was 118%. This is the best it has been for the last few years.
The dividend coverage is better if you look at cash flow. The Dividend Payout Ratio for CFPS is 25% for the financial year ending in January 2017. The 5 year median is quite a bit higher at 45%. Also, their cash balance is at $1.90. This is almost 32% of the value of the stock.
The financial year ending January 2017 was a good one with higher Revenue, Earnings and Cash Flow. However, the only analyst following this stock feels that the next two years Reitman's will continue their downward tread. I guess only time will tell. People seem to think that the first quarterly report due soon will not be a good one.
The 5 year low, median and high median Price/Earnings per Share Ratios are 26.24, 32.95 and 39.67. The corresponding 10 year ratios are 15.16, 17.71 and 21.05. The corresponding historical ratios are 10.56, 13.13 and 15.61. For a consumer stock the 10 and historical ratios are more realistic. The current P/E Ratio is 55.56 based on 2018 EPS estimate of $0.09 and a stock price of $5.00. I think that P/E Ratio testing of the stock price makes no current sense. The P/E Ratios have been high lately because of low earnings and the company is probably worth more than what the EPS currently shows.
I get a Graham Price of $3.46. The 10 year low, median and high median Price/Earnings per Share Ratios are 0.98, 1.19 and 1.51. The current P/GP Ratio is 1.45. This stock price suggests that the stock price is relatively reasonable but above the median. Since the Graham Price is partly based on EPS it is not surprising that the stock does not show as cheap on this test.
The 10 year median Price/Book Value per Share is 1.72. The current P/B Ratio is 0.85 based on a stock price of $5.00 and BVPS of $5.90. The current ratio is some 51% below 10 year median. Also, the stock is selling at a price below it theoretical breakup value. Generally speaking when a P/B Ratio is below 1.00 a stock is cheap. This stock points to the stock being relatively cheap.
I own this stock of Reitmans (Canada) Ltd. (TSX-RET.A, OTC-RTMAF). I bought this company in September 2013. It was in financial difficulties and so was quite cheap. I believe it will recover.
I get an historical median dividend yield of 3.12%. The current dividend yield is 4.00% based on dividends of $0.20 and a stock price of $5.00. The current dividend yield is some 28% below the historical median dividend yield. This stock price testing suggests that the stock is relatively cheap.
There seems to be only one analyst still following this stock and the recommendation is a Hold. The 12 month stock price consensus is $6.00. This implies a total return of 24% with 20.00% from capital gains and 4.00% from dividends based on a current stock price of $5.00.
Reitmans is to report on the first quarter of 2018 is due soon and EPS is expected to be $0.00 says Peter Erickson on Whats on Thorold. There is some technical analysis of this stock on Providence Standard. The F-Score of 7 is not a bad one. Benj Gallander rather likes this stock on Stock Chase
Reitmans (Canada) Limited is a Canada-based company engaged in the sale of women's specialty apparel at retail. The Company operates retail banners: Reitmans, Penningtons, Addition Elle, RW & CO., Thyme Maternity and Hyba. Its web site is here Reitmans (Canada) Ltd.
The last stock I wrote about was about was TFI International (TSX -TFII, OTC-TFIFF)... learn more. The next stock I will write about will be Pizza Pizza Royality Corp. (TSX-PZA, OTC-PZRIF)... learn more on Monday, May 15, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
I think the thing to ask is has this been a worthwhile investment. So far the answer is no, but then I have only been in this stock for some 3.6 years. I did not invest much into this company, just over $3,000. My loss to date has been at 6.3% per year. My capital loss is at 29%, but with dividends it is lower at 18.5%. I have not invested much in this so at the moment I will continue to hold it. It is fun to watch.
They used to be a dividend growth company. Because of problems they reduced their dividends by 75% in 2014. Since then they have been flat. Problem is that they are having a hard time paying the dividends that they are giving. For the financial year ending in January 2017, the Dividend Payout Ratio for EPS was 118%. This is the best it has been for the last few years.
The dividend coverage is better if you look at cash flow. The Dividend Payout Ratio for CFPS is 25% for the financial year ending in January 2017. The 5 year median is quite a bit higher at 45%. Also, their cash balance is at $1.90. This is almost 32% of the value of the stock.
The financial year ending January 2017 was a good one with higher Revenue, Earnings and Cash Flow. However, the only analyst following this stock feels that the next two years Reitman's will continue their downward tread. I guess only time will tell. People seem to think that the first quarterly report due soon will not be a good one.
The 5 year low, median and high median Price/Earnings per Share Ratios are 26.24, 32.95 and 39.67. The corresponding 10 year ratios are 15.16, 17.71 and 21.05. The corresponding historical ratios are 10.56, 13.13 and 15.61. For a consumer stock the 10 and historical ratios are more realistic. The current P/E Ratio is 55.56 based on 2018 EPS estimate of $0.09 and a stock price of $5.00. I think that P/E Ratio testing of the stock price makes no current sense. The P/E Ratios have been high lately because of low earnings and the company is probably worth more than what the EPS currently shows.
I get a Graham Price of $3.46. The 10 year low, median and high median Price/Earnings per Share Ratios are 0.98, 1.19 and 1.51. The current P/GP Ratio is 1.45. This stock price suggests that the stock price is relatively reasonable but above the median. Since the Graham Price is partly based on EPS it is not surprising that the stock does not show as cheap on this test.
The 10 year median Price/Book Value per Share is 1.72. The current P/B Ratio is 0.85 based on a stock price of $5.00 and BVPS of $5.90. The current ratio is some 51% below 10 year median. Also, the stock is selling at a price below it theoretical breakup value. Generally speaking when a P/B Ratio is below 1.00 a stock is cheap. This stock points to the stock being relatively cheap.
I own this stock of Reitmans (Canada) Ltd. (TSX-RET.A, OTC-RTMAF). I bought this company in September 2013. It was in financial difficulties and so was quite cheap. I believe it will recover.
I get an historical median dividend yield of 3.12%. The current dividend yield is 4.00% based on dividends of $0.20 and a stock price of $5.00. The current dividend yield is some 28% below the historical median dividend yield. This stock price testing suggests that the stock is relatively cheap.
There seems to be only one analyst still following this stock and the recommendation is a Hold. The 12 month stock price consensus is $6.00. This implies a total return of 24% with 20.00% from capital gains and 4.00% from dividends based on a current stock price of $5.00.
Reitmans is to report on the first quarter of 2018 is due soon and EPS is expected to be $0.00 says Peter Erickson on Whats on Thorold. There is some technical analysis of this stock on Providence Standard. The F-Score of 7 is not a bad one. Benj Gallander rather likes this stock on Stock Chase
Reitmans (Canada) Limited is a Canada-based company engaged in the sale of women's specialty apparel at retail. The Company operates retail banners: Reitmans, Penningtons, Addition Elle, RW & CO., Thyme Maternity and Hyba. Its web site is here Reitmans (Canada) Ltd.
The last stock I wrote about was about was TFI International (TSX -TFII, OTC-TFIFF)... learn more. The next stock I will write about will be Pizza Pizza Royality Corp. (TSX-PZA, OTC-PZRIF)... learn more on Monday, May 15, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Wednesday, May 10, 2017
TFI International Inc.
Sound bite for Twitter and StockTwits is: Dividend Growth Stock. I thought the price I paid was reasonable. I recently bought this stock to replace DH Corp which is being bought out. See my spreadsheet on TFI International Inc.
I own this stock of TFI International (TSX -TFII, OTC-TFIFF). As I recently said in my blog on Friday, I bought this stock to replace DH Corp stock. It is a stock recommended by MPL Communications. I rechecked my spreadsheet and liked the idea of buying this company. I started to follow this stock after I read a report called "6 Canadian Dividend Stocks That Fly Under the Radar" by John Heinzl in April of 2013. This is one of the stocks mentioned.
This stock used to be an income trust. As such it dividends were quite high. The historical high is over 20%. When they became a corporation they reduced the dividends by 75%. As a corporation, they should be covering their dividends by earnings not the Funds from Operations (FFO) or Adjusted Funds from Operations (AFFO) which is the way to judge dividends for income trust companies.
The Dividend Payout Ratio for 2016 is 42% and the 5 year median DPR is also 42%. The DPR for cash flow is 14% with a 5 year DPR also at 14%. They can currently cover their dividends nicely. It was wise to reduce the dividends to a level where they could be covered. Since the dividends were reduced over 2008 and 2009, there is only two years that they did not raise the dividends. The 5 year dividend growth is 9.6%.
So currently this company has a moderate dividend (in the 2% range) and they have moderate dividend growth (in the 9% range). I know that some investors feel that dividend growth stocks should raise the dividends every year, but I do not have that requirement. I like to see dividends grow over time certainly.
In 2016 Revenues and Cash Flow was down, but earnings were up. The Liquidity Ratio is low at 1.10 and they need cash flow to get a good coverage for this ratio. The ratio for 2016 was 1.10. If you add in cash flow after dividends, the ratio is 1.57. The Debt Ratio is fine at 1.56. I like to see both this ratios are 1.50 or above.
The 5 year low, median and high median Price/Earnings per Share Ratios are 13.58, 16.46 and 19.41. The 10 year values are 11.53, 14.34 and 17.12. The historical values are 8.06, 10.79 and 13.43. The current P/E Ratio is 13.71 based on a stock price of $28.11. It appears that the part of the rise in stock price is due to increased P/E Ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a Graham Price of $27.11. The 10 year low, median and high median Price/Graham Price Ratios are 0.80, 1.18 and 1.40. The current P/GP Ratio is 1.04 based on a stock price of $28.11. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a 10 year Median Price/Book Value per Share of 1.96. The current P/B Ratio is 1.76 based on a stock price of $28.11 and BVPS of $15.93. The current P/B Ratio is some 10% lower than the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
Since this is an old income trust company, you cannot use the historical median dividend yield for testing the stock price. The 5 year median dividend yield is 2.47%. The current dividend yield is 2.70% based on dividends of $0.76 and stock price of $28.11. The current dividend yield is some 9% higher than the 5 year median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.
See what analysts are saying about this stock on Stock Chase. Barry Schwartz thinks the recent drop in price is a gift from the gods. This stock was recently recommended by The Money Reporter of MPL Communications. I do like investment publications of MPL Communications. I think that they dispense some of the best investment advice for Canadians.
When I look at analysts' recommendations I find Buy and Hold recommendations. Most the recommendations are a Hold and the consensus recommendations is a Hold. The 12 month stock price consensus is $34.00. This implies a total return of 23.66% with 20.95% from capital gains and 2.70% from dividends. This high return does not really match with the consensus recommendations.
TransForce Inc. is a North American leader in the transportation and logistics industry operating across Canada and the United States through its subsidiaries. TransForce companies service the following segments: Package and Courier; Less-Than-Truckload; Truckload, which includes specialized truckload and dedicated services; Specialized Services, which includes services to the energy sector, waste management, logistics and ancillary transportation services.. Its web site is here TFI International Inc.
The last stock I wrote about was about was McCoy Global Inc. (TSX-MCB, OTC-MCCRF)... learn more. The next stock I will write about will be Reitmans (Canada) Ltd. (TSX-RET.A, OTC-RTMAF)... learn more on Friday May 12, 2017 around 5 pm. Tomorrow on my other blog I will write about If I knew then 5... learn more on Thursday, May 11 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
I own this stock of TFI International (TSX -TFII, OTC-TFIFF). As I recently said in my blog on Friday, I bought this stock to replace DH Corp stock. It is a stock recommended by MPL Communications. I rechecked my spreadsheet and liked the idea of buying this company. I started to follow this stock after I read a report called "6 Canadian Dividend Stocks That Fly Under the Radar" by John Heinzl in April of 2013. This is one of the stocks mentioned.
This stock used to be an income trust. As such it dividends were quite high. The historical high is over 20%. When they became a corporation they reduced the dividends by 75%. As a corporation, they should be covering their dividends by earnings not the Funds from Operations (FFO) or Adjusted Funds from Operations (AFFO) which is the way to judge dividends for income trust companies.
The Dividend Payout Ratio for 2016 is 42% and the 5 year median DPR is also 42%. The DPR for cash flow is 14% with a 5 year DPR also at 14%. They can currently cover their dividends nicely. It was wise to reduce the dividends to a level where they could be covered. Since the dividends were reduced over 2008 and 2009, there is only two years that they did not raise the dividends. The 5 year dividend growth is 9.6%.
So currently this company has a moderate dividend (in the 2% range) and they have moderate dividend growth (in the 9% range). I know that some investors feel that dividend growth stocks should raise the dividends every year, but I do not have that requirement. I like to see dividends grow over time certainly.
In 2016 Revenues and Cash Flow was down, but earnings were up. The Liquidity Ratio is low at 1.10 and they need cash flow to get a good coverage for this ratio. The ratio for 2016 was 1.10. If you add in cash flow after dividends, the ratio is 1.57. The Debt Ratio is fine at 1.56. I like to see both this ratios are 1.50 or above.
The 5 year low, median and high median Price/Earnings per Share Ratios are 13.58, 16.46 and 19.41. The 10 year values are 11.53, 14.34 and 17.12. The historical values are 8.06, 10.79 and 13.43. The current P/E Ratio is 13.71 based on a stock price of $28.11. It appears that the part of the rise in stock price is due to increased P/E Ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a Graham Price of $27.11. The 10 year low, median and high median Price/Graham Price Ratios are 0.80, 1.18 and 1.40. The current P/GP Ratio is 1.04 based on a stock price of $28.11. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a 10 year Median Price/Book Value per Share of 1.96. The current P/B Ratio is 1.76 based on a stock price of $28.11 and BVPS of $15.93. The current P/B Ratio is some 10% lower than the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
Since this is an old income trust company, you cannot use the historical median dividend yield for testing the stock price. The 5 year median dividend yield is 2.47%. The current dividend yield is 2.70% based on dividends of $0.76 and stock price of $28.11. The current dividend yield is some 9% higher than the 5 year median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.
See what analysts are saying about this stock on Stock Chase. Barry Schwartz thinks the recent drop in price is a gift from the gods. This stock was recently recommended by The Money Reporter of MPL Communications. I do like investment publications of MPL Communications. I think that they dispense some of the best investment advice for Canadians.
When I look at analysts' recommendations I find Buy and Hold recommendations. Most the recommendations are a Hold and the consensus recommendations is a Hold. The 12 month stock price consensus is $34.00. This implies a total return of 23.66% with 20.95% from capital gains and 2.70% from dividends. This high return does not really match with the consensus recommendations.
TransForce Inc. is a North American leader in the transportation and logistics industry operating across Canada and the United States through its subsidiaries. TransForce companies service the following segments: Package and Courier; Less-Than-Truckload; Truckload, which includes specialized truckload and dedicated services; Specialized Services, which includes services to the energy sector, waste management, logistics and ancillary transportation services.. Its web site is here TFI International Inc.
The last stock I wrote about was about was McCoy Global Inc. (TSX-MCB, OTC-MCCRF)... learn more. The next stock I will write about will be Reitmans (Canada) Ltd. (TSX-RET.A, OTC-RTMAF)... learn more on Friday May 12, 2017 around 5 pm. Tomorrow on my other blog I will write about If I knew then 5... learn more on Thursday, May 11 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Monday, May 8, 2017
McCoy Global Inc.
Sound bite for Twitter and StockTwits is: Small cap industrial. I will continue to hold on to my shares and probably buy some more when I have more dividend income in my TFSA account. I expect it to do well in the long term, but I also expect volatility in dividends. See my spreadsheet on McCoy Global Inc.
I own this stock of McCoy Global Inc. (TSX-MCB, OTC-MCCRF). This is a small cap stock I bought for TFSA. When I bought it, it was a dividend paying small cap. I decided to try out McCoy. They had just restored their dividend. Because it was rather cheap, I want to use it as a fuller stock in my TFSA account. For me a fuller stock is one that uses up bits of extra money in an account.
This stock suspended its dividend again in 2016. I would suspect from its history, that when they can they will probably restore the dividends. When dividends were paid, they were moderate being in the 2% range generally. I did not invest much in the company, but my loss is at 23% per year. The dividends I have received have covered some 8.7% of the cost of my stock.
Analysts seem to think that the company has hit bottom and that it will start to recover this year. However, the company does service the energy business, so who knows what will happen. The company has been around for a while having been started in 1914 and it went public in 1996, so I do not think that it will disappear.
The debt ratios are good for this company. They do not have much debt and the Total Liabilities/Market Cap Ratio is just 0.18. The Liquidity Ratio has always been good with a 5 year median of 3.81 and a current one of 9.48. The Debt Ratio is 6.93. These ratios are quite high and quite good. Leverage and Debt/Equity Ratios are low and also very good at 1.17 and 0.17 respectively. Good debt ratios help companies survive the bad times.
The 5 year low, median and high median Price/Earnings per Share Ratios are 5.23, 8.43 and 10.18. The 10 year values are 5.63, 8.27 and 10.19. The Historical values are 2.23, 8.48 and 10.92. These are quite low values but rather consistent. Unfortunately, the 2017 EPS estimate is expected to be negative, so there is no testing via P/E Ratios currently.
I get a Graham price of $1.71. The 10 year low, median and high median Price/Graham Price Ratios are 0.44, 0.72 and 0.95. The current P/GP Ratio is 1.12 based on a stock price of $1.91. This would indicate a high current stock price. However, last year the Graham Price was $5.62. However, a P/GP Ratio of 1.12 is not a high ratio.
The 10 year Price/Book Value per Share Ratio is 1.24. The current P/B Ratio is $0.88 based on BVPS of $2.16 and a stock price of $1.91. The current ratio is some 28% lower than the 10 year ratio. This stock price testing suggests that the stock price is relatively cheap. Also a stock is considered cheap when the stock price is below the BVPS. This is probably the best and the only valid stock price test that can be done on this stock at this time.
When I look at analysts' recommendations I find Buy, Strong Buy and Hold recommendations. The consensus recommendation is a Buy. The 12 months stock price consensus is $2.24. This implies a total return of 17.28% with the gain all coming from capital gains.
The CNW Group says on Yahoo Finance that this company will release the first quarterly report for 2017 on May 11, 2017. Don Majors on Sports Perspectives talks about the fact that Zacks Investment Research has forecast that this company will earn $0.04 per share for 2017. This is down from their previous forecast of $0.05 earnings for the 2017. In this Press Release on CNW, the company talks about their acquisition of 3PS Inc.
McCoy provides innovative products and services to the global energy industry. McCoy's two segments, Energy Products & Services and Mobile Solutions, operate internationally through direct sales and distributors with its operations based out of the Western Canadian Sedimentary Basin and the US Gulf Coast. McCoy's corporate office is located in Edmonton, Alberta, Canada with offices in Alberta, British Columbia, Louisiana, and Texas. They are growing internationally. Its web site is here McCoy Global Inc.
The last stock I wrote about was about was Automodular Corp. (TSX-AM.H, OTC-AMZKF)... learn more. The next stock I will write about will be TFI International (TSX -TFII, OTC-TFIFF)... learn more on Wednesday, May 10, 2017 around 5 pm. Tomorrow on my other blog I will write about If I knew then 4... learn more on Tuesday, May 9, 2017 around 5 pm.
Also, on my book blog I have put a review of the book Heroes of Empire by Edward Berenson learn more...
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
I own this stock of McCoy Global Inc. (TSX-MCB, OTC-MCCRF). This is a small cap stock I bought for TFSA. When I bought it, it was a dividend paying small cap. I decided to try out McCoy. They had just restored their dividend. Because it was rather cheap, I want to use it as a fuller stock in my TFSA account. For me a fuller stock is one that uses up bits of extra money in an account.
This stock suspended its dividend again in 2016. I would suspect from its history, that when they can they will probably restore the dividends. When dividends were paid, they were moderate being in the 2% range generally. I did not invest much in the company, but my loss is at 23% per year. The dividends I have received have covered some 8.7% of the cost of my stock.
Analysts seem to think that the company has hit bottom and that it will start to recover this year. However, the company does service the energy business, so who knows what will happen. The company has been around for a while having been started in 1914 and it went public in 1996, so I do not think that it will disappear.
The debt ratios are good for this company. They do not have much debt and the Total Liabilities/Market Cap Ratio is just 0.18. The Liquidity Ratio has always been good with a 5 year median of 3.81 and a current one of 9.48. The Debt Ratio is 6.93. These ratios are quite high and quite good. Leverage and Debt/Equity Ratios are low and also very good at 1.17 and 0.17 respectively. Good debt ratios help companies survive the bad times.
The 5 year low, median and high median Price/Earnings per Share Ratios are 5.23, 8.43 and 10.18. The 10 year values are 5.63, 8.27 and 10.19. The Historical values are 2.23, 8.48 and 10.92. These are quite low values but rather consistent. Unfortunately, the 2017 EPS estimate is expected to be negative, so there is no testing via P/E Ratios currently.
I get a Graham price of $1.71. The 10 year low, median and high median Price/Graham Price Ratios are 0.44, 0.72 and 0.95. The current P/GP Ratio is 1.12 based on a stock price of $1.91. This would indicate a high current stock price. However, last year the Graham Price was $5.62. However, a P/GP Ratio of 1.12 is not a high ratio.
The 10 year Price/Book Value per Share Ratio is 1.24. The current P/B Ratio is $0.88 based on BVPS of $2.16 and a stock price of $1.91. The current ratio is some 28% lower than the 10 year ratio. This stock price testing suggests that the stock price is relatively cheap. Also a stock is considered cheap when the stock price is below the BVPS. This is probably the best and the only valid stock price test that can be done on this stock at this time.
When I look at analysts' recommendations I find Buy, Strong Buy and Hold recommendations. The consensus recommendation is a Buy. The 12 months stock price consensus is $2.24. This implies a total return of 17.28% with the gain all coming from capital gains.
The CNW Group says on Yahoo Finance that this company will release the first quarterly report for 2017 on May 11, 2017. Don Majors on Sports Perspectives talks about the fact that Zacks Investment Research has forecast that this company will earn $0.04 per share for 2017. This is down from their previous forecast of $0.05 earnings for the 2017. In this Press Release on CNW, the company talks about their acquisition of 3PS Inc.
McCoy provides innovative products and services to the global energy industry. McCoy's two segments, Energy Products & Services and Mobile Solutions, operate internationally through direct sales and distributors with its operations based out of the Western Canadian Sedimentary Basin and the US Gulf Coast. McCoy's corporate office is located in Edmonton, Alberta, Canada with offices in Alberta, British Columbia, Louisiana, and Texas. They are growing internationally. Its web site is here McCoy Global Inc.
The last stock I wrote about was about was Automodular Corp. (TSX-AM.H, OTC-AMZKF)... learn more. The next stock I will write about will be TFI International (TSX -TFII, OTC-TFIFF)... learn more on Wednesday, May 10, 2017 around 5 pm. Tomorrow on my other blog I will write about If I knew then 4... learn more on Tuesday, May 9, 2017 around 5 pm.
Also, on my book blog I have put a review of the book Heroes of Empire by Edward Berenson learn more...
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Friday, May 5, 2017
Automodular Corp
First I would like to say that I just replaced my DH Corp (TSX-DH, OTC-DHIFF) stock with TFI International Inc. (TSX -TFII, OTC-TFIFF). DH Corp is being acquired by Vista Equity Partners for $25.50. I sold for $25.42. I see no point in waiting until the bitter end to get rid of a stock being taken over. I will blog about TFI next Wednesday.
I had been doing a spreadsheet on Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF) and I first thought I might replace DH Corp with PZA stock. The spreadsheet is taking longer than I expected. Also I am not thrilled about this stock. The money in DH Corp is serious money in my Trading and Pension Accounts which I need to live off of. I may replace the DH Corp stock in my TFSA account with PZA stocks because this is my fooling around money.
Sound bite for Twitter and StockTwits is: Interesting Small Cap. This company currently has no business, but it is selling below the cash it has and below the book value. See my spreadsheet on Automodular Corp.
I own this stock of Automodular Corp. (TSX-AM.H, OTC-AMZKF). This company currently has no business. They have some GM Litigation going on. They seem to be looking for something to do. In the meantime they have initiated a number of share buyback programs. In April 2017 they again gave notice they will try to buy back shares representing 10% of the current outstanding shares.
This company had no ongoing business since the end of 2014. They are looking for opportunities. The only thing they have done is buy back some outstanding shares. They do not seem to be looking at closing the company. For the litigation they have a half day trial in October 2017 and the 14 day trial starts in February 2018. I doubt if much will happen until after the trial.
I do not have much invested in this firm. I am just holding on to the shares to see how it all turns out. I tend to pay closer attention to companies where I own shares. There does not seem to be any analysts following this stock. This can hardly be surprising.
Note that the current stock price is $2.43 and the cash on hand is $2.60 per share. So it looks like it has more cash on hand than is accounted for in the share price. This is probably the only way to check the current stock price to see if it is reasonable or not.
The company does have book value. The 10 year median Price/Book Value per Share Ratio is 0.89. The current P/B Ratio is 0.94 based on a BVPS of $2.59 and a stock price is $2.43. The current ratio is 5.9% above the 10 year median. This usually suggests that the stock price is reasonable and above the median. However, if the P/B Ratio is below 1.00 this means the company is selling below the theoretical break-up price and is therefore cheap.
This link is to the Market Wired Press Release about the most recent effort to buy back shares.
Automodular Corporation was a sequencer and sub-assembler of components and modules that are installed in cars and trucks made by North American Original Equipment Manufacturers ("OEMs"), at plants in Canada. They are currently looking for something to do. Its web site is here Automodular Corp.
The last stock I wrote about was about was Ag Growth International (TSX-AFN, OTC- AGGZF)... learn more. The next stock I will write about will be McCoy Global Inc. (TSX-MCB, OTC-MCCRF)... learn more on Monday, May 8, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
I had been doing a spreadsheet on Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF) and I first thought I might replace DH Corp with PZA stock. The spreadsheet is taking longer than I expected. Also I am not thrilled about this stock. The money in DH Corp is serious money in my Trading and Pension Accounts which I need to live off of. I may replace the DH Corp stock in my TFSA account with PZA stocks because this is my fooling around money.
Sound bite for Twitter and StockTwits is: Interesting Small Cap. This company currently has no business, but it is selling below the cash it has and below the book value. See my spreadsheet on Automodular Corp.
I own this stock of Automodular Corp. (TSX-AM.H, OTC-AMZKF). This company currently has no business. They have some GM Litigation going on. They seem to be looking for something to do. In the meantime they have initiated a number of share buyback programs. In April 2017 they again gave notice they will try to buy back shares representing 10% of the current outstanding shares.
This company had no ongoing business since the end of 2014. They are looking for opportunities. The only thing they have done is buy back some outstanding shares. They do not seem to be looking at closing the company. For the litigation they have a half day trial in October 2017 and the 14 day trial starts in February 2018. I doubt if much will happen until after the trial.
I do not have much invested in this firm. I am just holding on to the shares to see how it all turns out. I tend to pay closer attention to companies where I own shares. There does not seem to be any analysts following this stock. This can hardly be surprising.
Note that the current stock price is $2.43 and the cash on hand is $2.60 per share. So it looks like it has more cash on hand than is accounted for in the share price. This is probably the only way to check the current stock price to see if it is reasonable or not.
The company does have book value. The 10 year median Price/Book Value per Share Ratio is 0.89. The current P/B Ratio is 0.94 based on a BVPS of $2.59 and a stock price is $2.43. The current ratio is 5.9% above the 10 year median. This usually suggests that the stock price is reasonable and above the median. However, if the P/B Ratio is below 1.00 this means the company is selling below the theoretical break-up price and is therefore cheap.
This link is to the Market Wired Press Release about the most recent effort to buy back shares.
Automodular Corporation was a sequencer and sub-assembler of components and modules that are installed in cars and trucks made by North American Original Equipment Manufacturers ("OEMs"), at plants in Canada. They are currently looking for something to do. Its web site is here Automodular Corp.
The last stock I wrote about was about was Ag Growth International (TSX-AFN, OTC- AGGZF)... learn more. The next stock I will write about will be McCoy Global Inc. (TSX-MCB, OTC-MCCRF)... learn more on Monday, May 8, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Wednesday, May 3, 2017
Ag Growth International
Sound bite for Twitter and StockTwits is: Buy for Diversification. They have the revenue, now what they did to do is make a profit from the revenue. In 2016 the comprehensive income was higher than the net income, so this is a good sign. Price testing is all over the place so waiting to see how they do with EPS in the first quarter of 2017 before buying would be a strategy that I would use. See my spreadsheet on Ag Growth International .
I own this stock of Ag Growth International (TSX-AFN, OTC-AGGZF). I wanted to review all the income trust stocks touted in the Money Show of 2009. There was a lot of talk at this show about some of the Unit Trust being currently good buys with very good yields. Its median yield in 2009 was 7.9%. It was on the Canadian Dividend Aristocrats and this is why I first investigated this company.
Some good things have happened since I bought this stock. I have earned a total return of 13.40% per year with 7.06% from capital gains and 6.34% from dividends. Also the dividends paid have paid for 36% of my stocks cost. In the future the dividends will be lower.
The things that I do not like are that earnings have not been very good and dividends have been flat since I bought this stock in 2011. Prior to 2011 dividends were being increased. Analysts do not see any dividends increases for this stock over the next couple of years. They do feel that there will be rising EPS which is a start. However, analysts thought that EPS for 2016 would be $2.46 and it came in at $1.29. It has been a long slow recovery since 2008. This is an industrial stock and volatility should be expected in Earnings.
The shares have been increasing by 3.6% and 2.9% per year over the past 5 and 10 years. To see if the company has growth, you need to look at the per share values. For example, the Revenue growth over the past 5 and 10 years is at 11.7% and 20.65 per year. The Revenue per Share has grown by 7.9% and 17.2% per year over the past 5 and 10 years.
The 5 year low, median and high median Price/Earnings per Share Ratios are 19.20, 25.47 and 30.62. The corresponding 10 year values are 14.42, 21.36 and 26.87. The historical ones are 11.69, 16.43 and 22.90. It would appear that the rising stock price is due to increasing P/E Ratios. The EPS has not done well recently, but it is expected to improve. The current P/E Ratio is 17.06 based on a stock price of $55.43 and 2017 EPS estimate of $3.24. This stock price testing suggests that the stock price is relatively reasonable.
I get a Graham Price of $34.29. The 10 year low, median and high median Price/Graham Price Ratios are 1.14, 1.56 and 1.98. The current P/GP Ratio is 1.62 based on a stock price of $55.43. This stock price testing suggests that the stock price is relatively reasonable and around the median.
I get a 10 year Price/Book Value per Share Ratio of $2.58. The current P/B Ratio is 3.45 based on a stock price of $55.43 and BVPS of $16.08. The current P/B Ratio is some 34% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
Because this stock used to be an income trust, you cannot use the historical median dividend yield to judge the current stock price. The 5 year median dividend yield is 5.86%. The current dividend yield is 4.33% based on dividends of $2.40 and a stock price of $55.43. The current dividend yield is some 26% above the 5 year median dividend yield. This stock price testing suggests that the stock price is relatively expensive.
I get a P/S Ratio of 1.53. The current P/S Ratio is 1.04 based on a stock price of $55.43 and Revenue estimate for 2017 of $785 or Revenue per Share of $33.11. The current P/S Ratio is some 32% below the 10 year ratio. This stock price testing suggests that the stock price is relatively cheap.
When I look at the analysts' recommendations, I find Buy and Hold recommendations. Most of the recommendations are a Buy and the consensus recommendation is a Buy. The 12 month stock price is $58.88. This implies a total return of 10.55 with 6.225 from capital gains and 4.33% from dividends.
On this Market Wired Press Release the company talks about a new issue of convertible debentures. This site of Davidson Register gives some tech analysis on this stock. The Value Composite score of 53 says that the stock is neither overpriced nor underpriced. Daniel Jordon on Sports Perspectives says that Royal Bank has raised the target price of this stock to $60.00. See what analysts are saying about this stock on Stock Chase . Stephen Takacsy thinks it is good way to play the agricultural sector. This is the reason I bought this stock.
Ag Growth International (AGI) is a leading manufacturer of portable and stationary grain handling, storage and conditioning equipment, including augers, belt conveyors, storage bins, handling accessories and aeration equipment. AGI has manufacturing facilities in Canada, the United States, the United Kingdom and Finland.. Its web site is here Ag Growth International .
The last stock I wrote about was about Thomson Reuters Corp. (TSX-TRI, NYSE-TRI)... learn more. The next stock I will write about will be Automodular Corp. (TSX-AM.H, OTC-AMZKF)... learn more on Friday, May 5, 2017 around 5 pm. Tomorrow on my other blog I will write about Something to Buy May 2017... learn more on Thursday, May 4, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
I own this stock of Ag Growth International (TSX-AFN, OTC-AGGZF). I wanted to review all the income trust stocks touted in the Money Show of 2009. There was a lot of talk at this show about some of the Unit Trust being currently good buys with very good yields. Its median yield in 2009 was 7.9%. It was on the Canadian Dividend Aristocrats and this is why I first investigated this company.
Some good things have happened since I bought this stock. I have earned a total return of 13.40% per year with 7.06% from capital gains and 6.34% from dividends. Also the dividends paid have paid for 36% of my stocks cost. In the future the dividends will be lower.
The things that I do not like are that earnings have not been very good and dividends have been flat since I bought this stock in 2011. Prior to 2011 dividends were being increased. Analysts do not see any dividends increases for this stock over the next couple of years. They do feel that there will be rising EPS which is a start. However, analysts thought that EPS for 2016 would be $2.46 and it came in at $1.29. It has been a long slow recovery since 2008. This is an industrial stock and volatility should be expected in Earnings.
The shares have been increasing by 3.6% and 2.9% per year over the past 5 and 10 years. To see if the company has growth, you need to look at the per share values. For example, the Revenue growth over the past 5 and 10 years is at 11.7% and 20.65 per year. The Revenue per Share has grown by 7.9% and 17.2% per year over the past 5 and 10 years.
The 5 year low, median and high median Price/Earnings per Share Ratios are 19.20, 25.47 and 30.62. The corresponding 10 year values are 14.42, 21.36 and 26.87. The historical ones are 11.69, 16.43 and 22.90. It would appear that the rising stock price is due to increasing P/E Ratios. The EPS has not done well recently, but it is expected to improve. The current P/E Ratio is 17.06 based on a stock price of $55.43 and 2017 EPS estimate of $3.24. This stock price testing suggests that the stock price is relatively reasonable.
I get a Graham Price of $34.29. The 10 year low, median and high median Price/Graham Price Ratios are 1.14, 1.56 and 1.98. The current P/GP Ratio is 1.62 based on a stock price of $55.43. This stock price testing suggests that the stock price is relatively reasonable and around the median.
I get a 10 year Price/Book Value per Share Ratio of $2.58. The current P/B Ratio is 3.45 based on a stock price of $55.43 and BVPS of $16.08. The current P/B Ratio is some 34% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
Because this stock used to be an income trust, you cannot use the historical median dividend yield to judge the current stock price. The 5 year median dividend yield is 5.86%. The current dividend yield is 4.33% based on dividends of $2.40 and a stock price of $55.43. The current dividend yield is some 26% above the 5 year median dividend yield. This stock price testing suggests that the stock price is relatively expensive.
I get a P/S Ratio of 1.53. The current P/S Ratio is 1.04 based on a stock price of $55.43 and Revenue estimate for 2017 of $785 or Revenue per Share of $33.11. The current P/S Ratio is some 32% below the 10 year ratio. This stock price testing suggests that the stock price is relatively cheap.
When I look at the analysts' recommendations, I find Buy and Hold recommendations. Most of the recommendations are a Buy and the consensus recommendation is a Buy. The 12 month stock price is $58.88. This implies a total return of 10.55 with 6.225 from capital gains and 4.33% from dividends.
On this Market Wired Press Release the company talks about a new issue of convertible debentures. This site of Davidson Register gives some tech analysis on this stock. The Value Composite score of 53 says that the stock is neither overpriced nor underpriced. Daniel Jordon on Sports Perspectives says that Royal Bank has raised the target price of this stock to $60.00. See what analysts are saying about this stock on Stock Chase . Stephen Takacsy thinks it is good way to play the agricultural sector. This is the reason I bought this stock.
Ag Growth International (AGI) is a leading manufacturer of portable and stationary grain handling, storage and conditioning equipment, including augers, belt conveyors, storage bins, handling accessories and aeration equipment. AGI has manufacturing facilities in Canada, the United States, the United Kingdom and Finland.. Its web site is here Ag Growth International .
The last stock I wrote about was about Thomson Reuters Corp. (TSX-TRI, NYSE-TRI)... learn more. The next stock I will write about will be Automodular Corp. (TSX-AM.H, OTC-AMZKF)... learn more on Friday, May 5, 2017 around 5 pm. Tomorrow on my other blog I will write about Something to Buy May 2017... learn more on Thursday, May 4, 2017 around 5 pm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Monday, May 1, 2017
Thomson Reuters Corp
Sound bite for Twitter and StockTwits is: Buy for Diversification. On my stock price testing the stock price is expensive except for the dividend yield test and there is it reasonable and around the median. I did testing in CDN$, but testing with US$ will produce similar results. I will continue to hold this stock as my need for diversification is the same. After all the reason I do my yearly review of stocks is to decide if a still want to hold a stock. See my spreadsheet on Thomson Reuters Corp.
I own this stock of Thomson Reuters Corp. (TSX-TRI, NYSE-TRI). I bought this stock in 1985 so I have had it for a very long time, almost 30 years. I bought stock to give portfolio some balance as I had too many financial stocks. Performance has always been mediocre.
I have made a total return of 7.86% with 4.64% from capital gains and 3.22% from dividends. I like as a minimum for the long term stocks, over the long term to have a total return of 8%. This stock does not quite make that, but it is not quite awful either. The dividends have paid some 216% of the cost of my stock.
The dividends are paid in US$. They have a moderate dividend yield with low dividend growth in US$. The current dividend yield is 3.12%. The historical median dividend yield is 3.28%. The 5 and 10 year median dividend yields are 3.59% and 3.57%. The dividends growth is at 1.9% and 4.5% in US$.
I have done better in CDN$ terms as far as dividend growth goes. My dividend growth is at 7.1% and 5.6% per year over the past 5 and 10 years. There is some variation in median dividend yields in CDN$ with the historical one at 3.18% and the 5 and 10 year median dividends at 3.43% and 3.47%.
The only place where this stock has good growth over the past 5 and 10 years is in EPS. However, here the company puts forward an Adjusted EPS value. If you look at the growth of the Adjusted EPS over the past 5 and 10 years, it is non-existent, mediocre or low. This is the same with growth in Revenue and Cash Flow. I am looking at this in US$ terms as the company does report in US$.
On a brighter side the Return on Equity (ROE) has been over 10% for 4 out of the past 5 years and it has a 5 year median ROE of 12.2%. However, the ROE on comprehensive income has only been above 10% in 2 of the past 5 years and the 5 year median is just 5.8%. This is in US$ terms.
The outstanding shares have gone up over the past 10 years, but they are down over the past 5 years. They are down by 2.55% over the past 5 years and up by 1.28% over the past 10 years. So if you are looking at growth over the past 5 years, you should be looking at things like Revenue rather than per share values like Revenue per Share. The Revenue over the past 5 years is down by 4.16% and Revenue per Share is down by 1.65%. The real decline in Revenue is the 4.16% value. This is in US$. The company currently reports in US$.
The 5 year low, median and high median Price/Earnings per Share Ratios are 13.61, 15.54 and 17.47. The corresponding 10 year values are 12.64, 15.18 and 17.73. The historical values are 20.02, 22.36 and 24.67. I have not seen a stock with higher historical P/E Ratios very often. The current P/E Ratio is 25.59 based on a stock price of $60.50 and 2017 EPS estimate of $2.36. This is in CDN$. This stock price testing suggests that the stock price is relatively expensive.
I get a Graham Price of $35.26 CDN$. The 10 year low, median and high median Price/Graham Price Ratios are 1.11, 1.29 and 1.49. The current P/GP Ratio is 1.72 based on a stock price of $60.50 CDN$. This stock price testing suggests that the stock price is relatively expensive.
I get a 10 year median Price/Book Value per Share Ratio of 1.69 CDN$. The current P/B Ratio is 2.59 based on BVPS of $23.37 CDN$ and a stock price of $60.50 CDN$. The current ratio is some 53% higher than the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
The current dividend yield is 3.12% based on dividend of $1.89 CDN$ and a stock price of $60.50 CDN$. The historical median dividend yield is 3.18%. This stock price testing suggests that the stock price is relatively reasonable. It is around the median.
When I look at analysts' recommendations, I find Strong Buy, Buy, Hold and Sell. However the vast majority are a Hold and the consensus recommendation is a Hold. The 12 month stock price is $44.22 US$ or $60.40 CDN$. This implies a total return of 2.95% with 3.12% from dividends and a capital loss of 0.17% based on a current stock price of $60.50 CDN$.
James Bradshaw recently published an upbeat article on this company at the Globe and Mail. Brent Sawyer was also upbeat on the first quarter for this company at Sports Perspectives. However, it seems that there are a number of Hold ratings on this stock. See what analysts are saying about this company at Stock Chase. They are positive about the company but do not feel it is a buy at present.
Thomson Reuters Corp is the leading source of intelligent information for businesses and professionals. The company delivers this must-have insight to the financial, legal, tax and accounting, healthcare and science and media markets, powered by the world's most trusted news organization. They derive the majority of their revenues from selling electronic content and services to professionals, primarily on a subscription basis. Its web site is here Thomson Reuters Corp.
The last stock I wrote about was about was WSP Global Inc. (TSX-WSP, OTC- WSPOF)... learn more. The next stock I will write about will be Ag Growth International (TSX-AFN, OTC- AGGZF)... learn more on Wednesday, May 3, 2017 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks May 2017... learn more on Tuesday, May 2, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
I own this stock of Thomson Reuters Corp. (TSX-TRI, NYSE-TRI). I bought this stock in 1985 so I have had it for a very long time, almost 30 years. I bought stock to give portfolio some balance as I had too many financial stocks. Performance has always been mediocre.
I have made a total return of 7.86% with 4.64% from capital gains and 3.22% from dividends. I like as a minimum for the long term stocks, over the long term to have a total return of 8%. This stock does not quite make that, but it is not quite awful either. The dividends have paid some 216% of the cost of my stock.
The dividends are paid in US$. They have a moderate dividend yield with low dividend growth in US$. The current dividend yield is 3.12%. The historical median dividend yield is 3.28%. The 5 and 10 year median dividend yields are 3.59% and 3.57%. The dividends growth is at 1.9% and 4.5% in US$.
I have done better in CDN$ terms as far as dividend growth goes. My dividend growth is at 7.1% and 5.6% per year over the past 5 and 10 years. There is some variation in median dividend yields in CDN$ with the historical one at 3.18% and the 5 and 10 year median dividends at 3.43% and 3.47%.
The only place where this stock has good growth over the past 5 and 10 years is in EPS. However, here the company puts forward an Adjusted EPS value. If you look at the growth of the Adjusted EPS over the past 5 and 10 years, it is non-existent, mediocre or low. This is the same with growth in Revenue and Cash Flow. I am looking at this in US$ terms as the company does report in US$.
On a brighter side the Return on Equity (ROE) has been over 10% for 4 out of the past 5 years and it has a 5 year median ROE of 12.2%. However, the ROE on comprehensive income has only been above 10% in 2 of the past 5 years and the 5 year median is just 5.8%. This is in US$ terms.
The outstanding shares have gone up over the past 10 years, but they are down over the past 5 years. They are down by 2.55% over the past 5 years and up by 1.28% over the past 10 years. So if you are looking at growth over the past 5 years, you should be looking at things like Revenue rather than per share values like Revenue per Share. The Revenue over the past 5 years is down by 4.16% and Revenue per Share is down by 1.65%. The real decline in Revenue is the 4.16% value. This is in US$. The company currently reports in US$.
The 5 year low, median and high median Price/Earnings per Share Ratios are 13.61, 15.54 and 17.47. The corresponding 10 year values are 12.64, 15.18 and 17.73. The historical values are 20.02, 22.36 and 24.67. I have not seen a stock with higher historical P/E Ratios very often. The current P/E Ratio is 25.59 based on a stock price of $60.50 and 2017 EPS estimate of $2.36. This is in CDN$. This stock price testing suggests that the stock price is relatively expensive.
I get a Graham Price of $35.26 CDN$. The 10 year low, median and high median Price/Graham Price Ratios are 1.11, 1.29 and 1.49. The current P/GP Ratio is 1.72 based on a stock price of $60.50 CDN$. This stock price testing suggests that the stock price is relatively expensive.
I get a 10 year median Price/Book Value per Share Ratio of 1.69 CDN$. The current P/B Ratio is 2.59 based on BVPS of $23.37 CDN$ and a stock price of $60.50 CDN$. The current ratio is some 53% higher than the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
The current dividend yield is 3.12% based on dividend of $1.89 CDN$ and a stock price of $60.50 CDN$. The historical median dividend yield is 3.18%. This stock price testing suggests that the stock price is relatively reasonable. It is around the median.
When I look at analysts' recommendations, I find Strong Buy, Buy, Hold and Sell. However the vast majority are a Hold and the consensus recommendation is a Hold. The 12 month stock price is $44.22 US$ or $60.40 CDN$. This implies a total return of 2.95% with 3.12% from dividends and a capital loss of 0.17% based on a current stock price of $60.50 CDN$.
James Bradshaw recently published an upbeat article on this company at the Globe and Mail. Brent Sawyer was also upbeat on the first quarter for this company at Sports Perspectives. However, it seems that there are a number of Hold ratings on this stock. See what analysts are saying about this company at Stock Chase. They are positive about the company but do not feel it is a buy at present.
Thomson Reuters Corp is the leading source of intelligent information for businesses and professionals. The company delivers this must-have insight to the financial, legal, tax and accounting, healthcare and science and media markets, powered by the world's most trusted news organization. They derive the majority of their revenues from selling electronic content and services to professionals, primarily on a subscription basis. Its web site is here Thomson Reuters Corp.
The last stock I wrote about was about was WSP Global Inc. (TSX-WSP, OTC- WSPOF)... learn more. The next stock I will write about will be Ag Growth International (TSX-AFN, OTC- AGGZF)... learn more on Wednesday, May 3, 2017 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks May 2017... learn more on Tuesday, May 2, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
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