Tuesday, April 3, 2018

Alaris Royalty Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Financial. I just bought some 70 shares of this stock for my TFSA. It is all the cash I had in my account and I only have this stock in my TFSA. All the stock price testing I did showed this stock as relatively cheap. Of course, stocks are often cheap for a reason and that makes them of higher risk. See my spreadsheet on Alaris Royalty Corp .

I own this stock of Alaris Royalty Corp (TSX-AD, OTC-ALARF). This is a stock that Dividends In Hand Blogger has bought in July 2016. It was also recommended by Acumen Capital report in a report by Brian Pow and Oliver Shao via Investor's Digest. See the article here .

Insiders are buying to the tune of 0.05%. This is relatively a lot as you would expect Net Insider Buying or Net Insider Selling to be around 0.01% to 0.02%. Also insider buying is by all that is CEO, CFO, Officers and Directors.

Currently the dividend yield is very high at 9.88%. The dividends have been all over the place with the high being over 21% and low being 3.66%. The historical median is 6.61% with 5 year median at 5.30% and 9 year median at 6.61%. Dividends have been level since an increase in 2015. Some analysts expect the company to raise their dividends again in 2019.

I do not have any long term dividend growth because this company was started at the end of 2007. It went public in December 2008. It started to pay dividends at the end of 2009. The growth in dividends over the past 5 and 8 years is at 6.72% and 6.35% per year.

The Dividend Payout Ratio for EPS for 2017 is 506% with 5 year coverage at 117%. EPS dropped by 82% in 2017, but is expected to recover in 2018. The company says that they are fine with current dividends and it is covered by cash flow. The DPR for CFPS in 2017 is 81% with 5 year coverage with 5 year coverage at 88%.

Again there is little to talk about in terms of long term returns. However, the Total Return over the past 5 and 10 years is at 4.03% and 15.22% per year. The capital loss over the past 5 years is at 2.71% and the capital gain over the past 10 years is 7.53%. The portion of the Total Return attributable to dividends is at 6.74% and 7.69% over the past 5 and 10 years.

The 5 year low, median and high median Price/Earnings per Share Ratios are 15.18, 19.21 and 23.23. The 9 year corresponding ratios are 12.38, 15.66 and 19.54. The current P/E Ratio is 9.11 based on 2018 EPS estimate of $1.80 and a stock price of $16.39. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $25.79. The 10 year low, median and high median Price/Graham Price Ratios are 0.76, 1.01 and 1.27. The current P/GP Ratio is 0.64 based on a stock price of $16.39. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year Price/Book Value per Share Ratio of 1.32. The current P/B Ratio is 1.00 based on Book Value of $604M, Book Value per Share of $16.42 and a stock price of $16.39. The current P/B Ratio is some 25% lower than the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

The historical median dividend yield is 6.61%. The current dividend yield is 9.88% based on dividends of $1.62 and a stock price of $16.39. The current yield is some 50% above the historical median yield. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) is 10.81. The current P/S Ratio is 5.92 based on 2018 Revenue estimate of $102, Revenue per Share of $2.77 and a stock price of $16.39. The current ratio is some 45% 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 (5) and Hold (3). The consensus would be a Buy. The 12 month stock price consensus is $22.06. This implies a total return of 44.48% with 34.59% from capital gains and 9.88% from dividends based on a current stock price of $16.39.

Joseph Solitro of Motley Fool says why this company is a buy. See what analysts are saying about this stock at Stock Chase. Some like this company and some do not. There are differing views also on Stockhouse Bullboard on this company.

Alaris Royalty Corp provides finance to private operating entities, typically in the form of preferred limited partnership interests, preferred interest in limited liability corporations in North America, or long-term license and royalty arrangements. Its web site is here Alaris Royalty Corp.

The last stock I wrote about was about was Sun Life Financial Inc. (TSX-SLF, NYSE-SLF)... learn more. The next stock I will write about will be Toromont Industries Ltd. (TSX-TIH, OTC-TMTNF)... learn more on Wednesday, April 4, 2018 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks April 2018... learn more on Tuesday, April 3, 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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