Metro Inc.

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. On some stock price testing this stock looks expensive. However, the dividend yield testing shows the price is reasonable and below the median. See my spreadsheet on Metro Inc. .

I own this stock of Metro Inc. (TSX-MRU, OTC-MTRAF). I was following this stock before I bought it because it was on Mike Higgs' Canadian Dividend Growth stock list and on the other dividend lists that I was following.

What I noticed is that the stock price hit a high in 2016 and has not done much since. It has backed off this high a bit. Another thing is that there seems to be a lot of insider selling which is at 0.17% of market cap. You expect this to be closer to 0.01%. However, it seems that insiders are selling off stock options rather than stocks they own.

I bought this stock 14 years ago and I am making a yield of 11.04% on my purchase price. For this stock people who have held this stock for 5, 10, 15 or 20 years and paid a median price would be getting a yield on their original investment of 2.96%, 6.88%, 10.85% and 21.08%. This is why you buy dividend growth stocks for retirement purposes.

People who have held this stock for 5, 10, 15., 20 or 25 years purchased in December would have a total return (capital gain and dividends) of $15.43%, 18.21%, 15.19%, 16.60% and 18.76% per year. This is why you buy stock for the long term. There have been lots of studies to show that dividend paying stock give better returns and have higher capital gains than non-dividend paying stock.

Dividend yield on this is low and the dividend growth is good. The current dividend yield is 1.61%. The 5, 10 and historical median dividend yields are 1.46%, 1.57% and 1.44%. The dividends have grown over the past 5, 10, 15, 20 and 22 years are 18.23%, 15.39%, 15.74%, 17.49% and 20.70% per year. Dividends started in 1995 and they have paid more in each financial year.

They can afford their dividends. The Dividend Payout Ratio for 2017 is 24%. The 5 year coverage is 21%. The DPR for CFPS is 15% for 2017 and the 5 year coverage is 13%.

The 5 year low, median and high median Price/Earnings per Share Ratios are 12.29, 15.50 and 18.32. The corresponding 10 year values are 10.38, 11.64 and 13.47. The corresponding historical ratios are 10.01, 11.71 and 14.58. The current P/E Ratio is 15.48 based on a current stock price of $40.25 and 2018 EPS estimate of $2.60. This stock price testing suggests that the stock price might be reasonable, but it is above the median.

I get a Graham Price of $27.35. The 10 year low, median and high median Price/Graham Price Ratios are 0.88, 0.98 and 1.09. The current P/GP Ratio is 1.47 based on a stock price of $40.25. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year median Price/Book Value per Share Rati of 2.06. The current P/B Ratio is 3.15 based on Book Value of $2,911M, Book Value per Share of $12.78 and a stock price of $40.25. The current ratio is some 53% higher than the 10 year median. This stock price testing suggests that the stock price is relatively expensive.

The current dividend yield is 1.61%. The historical median dividend yield is 1.44%. The current dividend yield is based on Dividend of $0.65 and a stock price of $40.25. The current dividend yield is some 12% higher than the historical median. This stock price testing suggests that the stock price is relatively reasonable and below the median.

The 10 year Price/Sales (Revenue) Ratio is 0.46. The current P/S Ratio is 0.63 based on 2018 estimate of revenue of $14,531M, Revenue per Share of $63.81 and a stock price of $40.25. This stock price testing suggests that the stock price is relatively expensive.

When I look at analysts' recommendations I find Buy (4) and Hold (6) Recommendations. The consensus would be a Hold Recommendation. The 12 months stock price consensus is $46.00. This implies a total return of 15.90% with 14.29% from capital gains and 1.61% from dividends based on a current stock price of $40.25.

Stephanie Bedard-Chateauneuf on Motley Fool compares Loblaw and Metro and picks Loblaw. A Baldwin Staff Writer on Baldwin Journal says the ADX shows no clear trend and that the Williams Percent Range shows it is close to being oversold.. See what analysts are saying about this stock at Stock Chase .

Metro Inc.is a leader in food and pharmaceutical distribution in Quebec and Ontario, where it operates a network of more than 600 food stores under several banners including Metro, Metro Plus, Super C and Food Basics, as well as over 250 drugstores under the Brunet, Metro Pharmacy and Drug Basics banners. Its web site is here Metro Inc. .

The last stock I wrote about was about was Bird Construction Inc. (TSX-BDT, OTC- BIRDF)... learn more. The next stock I will write about will be Bank of Montreal (TSX-BMO, NYSE-BMO)... learn more on Wednesday, January 3, 2018 around 5 pm. Today on my other blog I will write about Dividend Stocks January 2018... learn more on January 2, 2018 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.

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