I own this stock of Toromont Industries Ltd. (TSX-TIH, OTC-TMTNF). This is one of the stocks I bought after selling Loblaws in 2008. This was a stock on Mike Higgs' Canadian Dividend Growth Stock list. I bought more in 2008 after selling Onex and AGF Management.
There is a fair bit of insider selling at 0.14%. However, it is because insiders are not picking up all the stock options that they can. I have done very well with this stock. I first bought it in 2008 and then some more in 2011. I have made a Total Return of 12.60% with 10.76% from Capital Gains and 1.84% from Dividends.
Dividends have tended to be low to moderate with increases that are moderate. The current dividend yield is low 1.66% with an historical median dividend yield also low at 1.91%. The 5 and 10 year median dividend yield are moderate, but just in the moderate range at 2.06% and 2.10%.
I considerate dividend increases in the 8% to 14% range to be moderate. The 5, 10, 15, 20, 25 and 27 year dividend increases for this company are 9.80%, 9.82%, 13.64%, 13.34%, 12.82% and 14.73%.
They can afford their dividends. The 2017 Dividend Payout Ratio is 34% with 5 year coverage also at 34%. The DPR for CFPS is also good 23% for 2017 with 5 year coverage at 28%.
The Total Return is show below for years of 5 to 27. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends.
| Years | Div Gth | Tot Ret | Cap Gain | Div |
|---|---|---|---|---|
| 5 | 9.80% | 23.24% | 21.16% | 2.08% |
| 10 | 9.82% | 13.99% | 12.28% | 1.71% |
| 15 | 13.64% | 17.66% | 15.52% | 2.14% |
| 20 | 13.34% | 14.35% | 12.69% | 1.66% |
| 25 | 12.82% | 23.37% | 19.72% | 3.65% |
| 27 | 14.73% | 23.68% | 19.77% | 3.91% |
The 5 year low, median and high median Price/Earnings per Share Ratios are 14.45, 17.19 and 19.92. The corresponding 10 year values are 13.80, 15.46, and 16.88. The Historical ratios are 13.04, 14.70 and 18.55. The current P/E Ratio is 19.53 based on a stock price of $55.28 and 2018 EPS estimate $2.83. This stock price testing suggests that the stock price is relatively expensive.
I get a Graham Price of $29.74. The 10 year low, median and high median Price/Graham Price Ratios are 1.28, 1.48 and 1.66. The current P/GP Ratio is 1.86 based on a stock price of $55.28. 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 3.19. The current P/B Ratio is 3.98 based on Book Value of $1,124M, Book Value per Share of $13.89 and a stock price of $55.28. The current P/B Ratio is some 25% above the 10 year median. This stock price testing suggests that the stock price is relatively expensive.
I get an historical median dividend yield of 1.91%. The current dividend yield is 1.66% based on dividends of $0.92 and a stock price of $55.28. The current dividend yield is some 13% below the historical median yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get a 10 year Price/Sales (Revenue) Ratio of 1.14. The current P/S Ratio is 1.28 based on 2018 Revenue estimate of $3,501M, Revenue per Share of $43.25 and a stock price of $55.28. The current ratio is some 12% above the 10 year median. This stock price testing suggests that the stock price is relatively reasonable but above the median.
When I look at analysts' recommendations I find Strong Buy (1), Buy (2) and Hold (5). The consensus recommendations would be a Buy. The 12 month stock price consensus is $63.13. This implies a total return of 15.86% with 14.20% from capital gain and 1.66% from dividends based on a current price of $55.28.
This is an Market Wired notice about Toromont acquisition of Hewitt Group. Joseph Solitro on Motley Fool talks about this acquisition. See what analysts are saying about this stock on Stock Chase. They like the company.
Toromont Industries Ltd is engaged in the caterpillar dealerships, design, engineering, fabrication and installation of industrial and recreational refrigeration systems. Its web site is here Toromont Industries Ltd.
The last stock I wrote about was about was Alaris Royalty Corp (TSX-AD, OTC-ALARF)... learn more. The next stock I will write about will be Russel Metals Inc. (TSX-RUS, OTC- RUSMF)... learn more on Friday, April 6, 2018 before 11 am. Tomorrow on my other blog I will write about Something to Buy April 2018... learn more on Thursday, April 5, 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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