Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. It seems from my testing that the stock price is relatively reasonable. It does not matter whether testing is in US$ or CDN$ the results are basically the same. However, the 12 month stock price is below current price. See my spreadsheet on Ritchie Bros Auctioneers Inc.
I do not own this stock of Ritchie Bros Auctioneers Inc. (TSX-RBA, NYSE-RBA). This was a stock suggestion I got and also it was a dividend growth stock found in the Canadian All Star List. See the all-star list here. The blogger Dividend Earner wrote on about this stock in August 2017.
This is a stock I decided to follow as several of the stocks I followed have been removed from the TSX for various reasons. This stock publishes its reports in US$. It also listed on the NYSE before listing on the TSX.
Dividends are paid in US$. Dividend yields have been low to moderate. The 5, 10 and historical dividend yields are 2.22%, 2.18% and 1.90%. Dividend growth was higher when this stock when public than currently. The last dividend increase was 2016 and it was for 6.3%. See dividend increases in the chart below. These are in US$ terms. The CDN$ terms have corresponding yields of 2.26%, 2.12% and 1.91%.
The Dividend Payout Ratio for 2017 was the highest ever at 99%. The 5 year coverage is much better at 66%. The DPR for CFPS for 2017 was 53% with 5 year coverage at 46%. Analysts expect these ratios to improve this year.
The Total Return is show below for years of 5 to 19. 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. See charts below.
By and large, shareholders have done well. The 10 year return is low because the stock hit a high 10 years ago. This does point to the fact that it is important not to overpay for stocks, even good stocks. I have charts in US$ and CDN$. The difference is because of the exchange rates changing over time.
This Chart is in US$ terms.
| Years | Div Gth | Tot Ret | Cap Gain | Div |
|---|---|---|---|---|
| 5 | 7.67% | 9.92% | 7.46% | 2.46% |
| 10 | 8.53% | 2.55% | 0.82% | 1.73% |
| 14-15 | 14.67% | 15.00% | 12.11% | 2.89% |
| 19 | 12.46% | 10.50% | 1.96% |
This Chart is in CDN$ terms.
| Years | Div Gth | Tot Ret | Cap Gain | Div |
|---|---|---|---|---|
| 5 | 12.78% | 15.44% | 12.65% | 2.79% |
| 10 | 11.15% | 4.99% | 3.20% | 1.79% |
| 14-15 | 20.24% | 12.73% | 10.42% | 2.32% |
| 19 | 11.02% | 9.36% | 1.65% |
The 5 year low, median and high median Price/Earnings per Share Ratios are 24.16, 28.14 and 32.12. The corresponding 10 year ratios are 24.77, 29.18 and 33.59. The historical ratios are 25.43, 30.13 and 33.54. I must admit that these ratios seem high to me. The current P/E Ratio is 30.47. This stock price testing suggests that the stock price is relatively reasonable but above the median. This is in CDN$ terms.
I get a Graham Price of $16.72. The 10 year low, median and high median Price/Graham Price Ratios are 1.87, 2.29 and 2.71. These also seem high to me. The current P/GP Ratio is 2.51 based on a stock price of $41.99. This stock price testing suggests that the stock price is relatively reasonable but above the median. This is in CDN$ terms.
I get a 10 year median Price/Book Value per Share of 4.50. The current P/B Ratio is 4.66 based on Book Value of $752M, Book Value per Share of $7.00 and a stock price of $32.61. I also find this ratio high. The current ratio is some 11% above the 10 year median. This stock price testing suggests that the stock price is relatively reasonable but above the median. This is in US$ terms.
I get an historical median dividend yield of 1.90%. The current dividend yield is 2.09% based on dividends of $0.68 US$ and a stock price of $32.61. The current dividend yield is some 9.8% above the historical median. This stock price testing suggests that the stock price is relatively reasonable and below the median. This is in US$ terms.
The 10 year median Price/Sales (Revenue) Ratio is 5.62. The current P/S Ratio is 4.87 based on 2018 Revenue estimate of $720M, Revenue per Share of $6.70 and a stock price of $32.61. The current P/S Ratio is some 13% below the 10 year ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median. This is in US$ terms.
When I look at analysts’ recommendations I find Strong Buy, Hold, Underperform and Sell recommendations. There as are no Buy recommendations. The consensus recommendation would be a Hold. The 12 month stock price consensus is $30.64 US$ or $39.64 CDN$. This implies a total loss of 3.93% with a capital loss of 6.01% and dividends of 2.09%. This is true in either currency.
Silas Weatherspoon on Park City Caller gives some technical information on this stock and says the Williams Percent Range is -58.33. A reading between 0 and -20 would indicate an overbought situation. A reading from -80 to -100 would indicate an oversold situation. This article on The Wall Street Transcript talks about a recent auction in Fort Worth, Texas. Xavier Javi on Registrar Journal talks about recent analysts recommendations. Daniel Miller on Motley Fool talks about this company’s integration problems with IronPlanet. See what analysts are saying about this stock at Stock Chase. It is not well followed.
Ritchie Bros Auctioneers Inc. is an industrial auctioneer and used equipment distributor. It sells a broad range of used and unused equipment, including trucks, construction and heavy machinery and other assets. Its web site is here Ritchie Bros Auctioneers Inc.
The last stock I wrote about was about was Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF)... learn more. The next stock I will write about will be Industrial Alliance Ins. & Fin. Srv. Inc. (TSX-IAG, OTC-IDLLF)... learn more on Wednesday, May 23, 2018 around 5 pm. Today on my other blog I will write about Ontario Election.... learn more on Tuesday, May 22, 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.
Ten years! Well done!!! I'm very grateful for all that work, and check your blog every day. Your research has often been the starting point for more in-depth analysis on my part. Thanks, Susan. Congratulations!
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