Monday, March 12, 2018

Goodfellow Inc.

Sound bite for Twitter and StockTwits is: Recovering Consumer stock. Price is probably relatively cheap to relative reasonable. The returned to profitability in the third quarter of last year. Debt Ratios are good. See my spreadsheet on Goodfellow Inc.

I own this stock of Goodfellow Inc. (TSX-GDL, OTC-GFELF). I started to look at this stock when I was searching for small cap stocks that paid dividends. It looked like an interesting stock. Goodfellow is a small cap stock that the Investor Reporter has written about a number of times.

Earnings over the last 4 quarters are loss of $0.63, loss of 0.07, earnings of $0.19 and earnings of $0.26. So they turned the earnings around in the quarter 3. I have lost 3.12% per year on my investment that I started in 2010. This is 19% decline in the price of the stock. However, I have lost just 5.1% on this investment. My total loss is lower because of dividends I received.

This stock has been paying dividends since 1996 and dividends were paid twice yearly. The first decrease in dividends occurred in 2015 of 22% and then another decrease of 14.3% in 2016 and then the dividends were suspended in 2017.

This company does have current good debt ratios. The Liquidity Ratio is 1.85 and the Debt Ratio is 2.25. Debt Ratios over 1.50 are good. The Leverage and Debt/Equity Ratios are also good at 1.80 and 0.80. For these ratios ones under 2.00 and 1.00 are good ratios.

Last year they had bank indebtedness so that the Bank Debt/Market Cap Ratio was high at 1.22. This ratio is now in a good range of 0.74. They have reduced their Bank Debt in 2017 by 44.4%. Their Long Term Debt/Market Cap Ratio is very good at 0.05 and the Goodwill Intangible/Market Cap Ratio is very good at 0.07.

The only long term period of loss for this stock is the 10 year period where the loss is 0.43% per year or loss of 6.26%. This is the total return. The capital loss was 3.89% per year. This is the beauty of dividend stocks. You never tend to lose money or not much money. The other periods are all positive.

The Total Return for the other periods of 5, 15, 20 and 21 are 3.25%, 9.86%, 7.67 and 11.61% per year. There was a capital loss of 0.02% for the 5 year period. For the years of 15, 20 and 21 the capital gain is 2.48%, 2.13% and 4.55%. The portion of the Total Return for periods of 5, 10, 15, 20 and 21 are 3.27%, 3.46%, 7.38%, 5.54% and 7.06%.

The 5 year low, median and high median Price/Earnings per Share Ratios are 9.26, 10.02 and 10.78. The 10 year corresponding ratios are 7.35, 10.61 and 11.49. The historical ratios are 7.01, 8.11 and 9.11. The current P/E Ratio is 18.11 based on a current price of $8.15 and last two quarterly earnings of $0.45. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $11.41. The 10 year low, median and high median Price/Graham Price Ratios are 0.52, 0.59 and 0.65. The current P/GP Ratio is 0.71 based on a stock price of $8.15. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year Price/Book Value per Share Ratio of 0.67. The current P/B Ratio is 0.63 based on Book Value of $109M, Book Value per Share of $12.86 and a stock price of $8.15. The current P/B Ratio is some 5% lower than the 10 year ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.

Also when a stock is selling with a P/B Ratio below 1.00 it means that the stock is selling below its theoretical breakup price. This suggests that the stock price is cheap.

I get a 10 year median Price/Sales (Revenue) Ratio of 0.16. The current P/S Ratio is 0.13 based on the last 12 months of Revenue of $523.7M, Revenue per Share of $61.56 and a stock price of $8.15. The current P/S Ratio is some 16.5% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

There are no analysts' recommendations.

This company announces its 4 quarter results on Global News Wire. Courier Staff Writer on Collins Courier says that this stock has a Williams Percent Range of -29.07 which means it is nether overbought or oversold, but it is closer to overbought. A MENAFN Editorial via Global News Wire talks about the rise of commercial end-use of wood and laminate floorings.

Goodfellow Inc is engaged in the re-manufacturing, distribution and brokerage of lumber and wood products. Its products include decking, flooring, lumber, insulation, roofing, and among others. Its web site is here Goodfellow Inc.

The last stock I wrote about was about was Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF)... learn more. The next stock I will write about will be Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF)... learn more on Wednesday, March 14, 2018 around 5 pm. Tomorrow on my other blog I will write about My Dividend Goals... learn more on Tuesday, March 13, 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.

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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