Intertape Polymer Group Inc.

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. This stock is probably a dividend growth stock or is trying to be one. Stock price testing gets a current stock price that is relatively reasonable and around the median to one that is relatively expensive. Note that Ratios are the same in US$ terms and CDN$ terms. See my spreadsheet on Intertape Polymer Group Inc.

I do not own this stock of Intertape Polymer Group Inc. (TSX-ITP, OTC-ITPOF). I got this stock from Peter Keyser who I met in an Investment Club.

Dividends are paid in US$, so for a Canadian investor, you will never know exactly what your dividends will be. They only started to pay dividends in 2013 and they have grown at 19% per year over the past 3 years. However, analysts' do not seem to feel that dividends will grow any more over the next few years.

The Dividend Payout Ratio for 2016 for EPS was 63.5%. The 5 year median DPR for EPS is 58.6%. The DPR for CFPS was 25% in 2016 and the 5 year median is 25% also. So they can currently afford their dividends. Analysts expect the EPS to go up over the next couple of years, so affording the dividend should not be a problem.

Currently the dividend is moderate with good dividend growth. The current dividend yield is 3.24% based on a stock price of $23.31 CDN$ and dividends of $0.76 CDN$ ($0.56 US$). Yield would be the same in US$ and CDN$. As mentioned above the current dividend growth is 19% per year. However, if they do not raise the dividends this year this can change.

The debt ratios are good. The Liquidity Ratio is good at 2.17 for 2016. The 5 year median ratio is 2.32. The Debt Ratio is 1.72 for 2016 with a 5 year median of 1.80. The Leverage and Debt/Equity Ratios are 1.39 and 1.39 respectively with 5 year median of 2.32 and 1.32. These last ratios are what would be expected for an Industrial stock.

Return on Equity was been above 10% for 5 of the last 5 years. The ROE for 2016 is 21% and the 5 year median is 21%. The ROE for comprehensive income is similar with the ratio for 2016 at 21.5% and the 5 year median at 21.1%.

The 5 year low, median and high median Price/Earnings per Share Ratios are 10.68, 16.53 and 22.11. The 10 year corresponding ratios are 6.88, 11.66 and 14.51. The historical ones are 8.61, 15.26 and 21.70. The current P/E Ratio is 15.28 based on a stock price of $23.31 and 2017 EPS estimate of $1.53 CDN$ and $1.13 US$. This stock price testing suggests at the stock price is relatively reasonable and around the median.

I get a Graham Price of 13.76 CDN$. The 10 year low, median and high median Price/Graham Price Ratios are 0.63, 1.04 and 1.40. The current P/GP Ratio is 1.69 based on a stock price of $23.31 CDN$. 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 1.64. The current P/B Ratio is 4.42 based on BVPS of $5.27 (BV $311.77 CDN$, $230.89 US$) and a stock price of $23.31 CDN$. The current P/B Ratio is some 168% higher than the 10 year median P/B Ratio. This stock price testing suggests that the stock price is relatively expensive.

The current dividend yield is 3.25% based on dividends of $0.76 CDN$ or $0.56 US$ and a stock price of $23.31 CDN$. The 4 year median dividend yield is 3.22% a value some 1% lower. This stock price testing suggests that the stock price is relatively reasonable and around the median.

The 10 year P/S Ratio is 0.38 US$. The current P/S Ratio is 1.17 based on Revenue of $873M US$, Revenue per Share of $14.77 US$ and a stock price of $17.23 US$. The current P/S Ratio is some 209% above the 10 year median ratio. This stock price test suggests that the stock price is relatively expensive. (Note it does not matter if you test in US$ or CDN$, the test turn out the same.)

When I look at analysts' recommendations, I find Strong Buy and Buy recommendations. Most of the recommendations are a Buy, so the consensus recommendation is a Buy. The 12 month stock price is $20.82 US$ or $28.11 CDN$. This implies a total return of 24.09% with 3.25% from dividends and $20.84% from capital gains.

Vivian Currie on San Times talks about analysts' ratings on this stock. The stock recently had 3 Buy Ratings. Thomas Auclair on Simply Wall Street talks about this company's dividends. He said that they can afford them. Interestingly, he expect the dividends to decline from the current $0.56 US$ to $0.502 US$ in three years' time. Sarah Corning on Ozark Times gives a more technical analysis of this stock. She has an interesting way of looking at dividend growth. See what analysts are saying about this stock on Stock Chase. There are some interesting comments, but generally the stock is liked.

Intertape Polymer Group Inc. operates in the specialty packaging industry in North America. The Company develops, manufactures and sells a range of paper and film-based pressure sensitive and water activated tapes, polyethylene and specialized polyolefin packaging films, woven coated fabrics and complementary packaging systems for industrial and retail use. Its web site is here Intertape Polymer Group Inc.

The last stock I wrote about was about was IGM Financial Inc. (TSX-IGM, OTC-IGIFF)... learn more. The next stock I will write about will be Liquor Stores N. A. Ltd. (TSX-LIQ, OTC-LQSIF)... learn more on Monday, June 12, 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.