I do not own this stock of Logistec Corp (TSX-LGT.B, OTC-LTKBF). I got this stock from Dividend Growth Investing and Retirement blogger’s all-star spreadsheet for March 2017. Unfortunately currently you have to sign up for a newsletter to get these spreadsheets.
When I was updating my spreadsheet, I noticed the company, as of the second quarter has an earning loss. This is because expenses, especially Employee Benefits, increased faster than Revenue even though revenue went up almost 43%. Expense went up 49%.
Dividend yield is currently very low. The current dividend yield is 0.70% and the 5 year median dividend yield is 0.85%. The dividend yield used to be higher. The 10 year median dividend yield is 1.42% and the historical one is 2.01%.
Generally, the dividend increases were low, but they were getting bigger until 2015 with an increase of 19.9%. However, there was no increase in 2016 and the one for 2017 is 9.9%. Prior to the last 5 years, the increases were low (below8%), but over the last 5 years they have averaged 11.8% per year. See the chart below.
They can certainly afford their dividends. The DPR for 2017 for Class B shares is 15% with 5 year coverage of 21%. The Class A and Class B shares each have their own EPS and Dividends. The coverage for Class A is similar to Class B with the DPR for 2017 at 14% and 5 year coverage at 19%. The DPR for Classes A & B for CFPS for 2017 is 11% with 5 year coverage at 17%. These payout ratios are low.
All the debt ratios are good with some excellent. The Long Term Debt/Market Cap Ratio for 2017 is 0.22. The Liquidity Ratio for 2017 is 1.79 with 5 year median at 2.25. The Debt Ratio for 2017 is 1.82 with 5 year median of 2.67. The Leverage and Debt/Equity Ratios for 2017 are 2.24 and 1.23 with 5 year medians at 1.76 and 0.66.
The Total Return per year is shown below for years of 5 to 21. 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.
Shareholders have done well, especially lately on Total Return. The stock hit a peak in 2015 and has basically stalled.
| Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|
| 5 | 11.77% | 32.01% | 29.58% | 2.43% |
| 10 | 7.90% | 16.48% | 15.06% | 1.42% |
| 15 | 7.09% | 18.52% | 16.13% | 2.39% |
| 20 | 5.78% | 12.77% | 11.13% | 1.63% |
| 21 | 5.75% | 16.49% | 12.90% | 3.59% |
The 5 year low, median, and high median Price/Earnings per Share Ratios are 14.13, 16.87 and 19.62. The corresponding 10 year ratios are 7.08, 8.85 and 11.62. The corresponding historical ratios are 8.15, 10.44 and 12.24. The current P/E Ratio is 39.50 based on a current stock price of $51.75 and last 12 months EPS of $1.31. This stock price testing suggests that the stock price is relatively expensive.
I get a Graham Price of $17.71. The 10 year low, median, and high median Price/Graham Price Ratios are 0.58, 0.80 and 1.07. The current P/GP Ratio is 2.92 based on a stock price of $51.75. 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 1.48. The current P/B Ratio is 2.94 based on Book Value of $225M, Book Value per Share of $17.69 and a stock price of $51.75. The current P/B Ratio is some 98% above the 10 year ratio. This stock price testing suggests that the stock price is relatively expensive.
I get an historical median dividend yield of 2.01%. The current dividend yield is 0.70% based on dividends of $0.36 and a stock price of $51.75. The current yield is a value some 65% below the historical median. This stock price testing suggests that the stock price is relatively expensive.
The 10 year median Price/Sales (Revenue) Ratio is 0.75. The current P/S Ratio is 1.21 based on last 12 months Revenue of $545M, Revenue per Share of $42.98 and a stock price of $51.75. The current ratio is some 61% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
When looking at ratios for determining what a good stock price is I concentrated on Class B shares as that is what the public buys. The EPS is low in the P/E Ratio test because of earning losses in the first quarter of this year. The earnings losses in 2018 also affects the Graham Price negatively. However, all the tests show that the stock is expensive.
When I look for analysts’ recommendations I find none.
The company talks about a recent acquisition on News Wire. Ambrose O'Callaghan of Motley Fool thinks this is a good dividend stock for 2018. Katie Hansen on the Stock Voice gives some ratios for this stock. She says the Piotroski F-Score is 5 showing the balance sheet is neither strengthening or weakening. Jason Fuller on Simply Wall Street talks about ownership, but seems to have missed the fact that the Paquin family owns Class A shares which are multiple voting shares and control the company.
Logistec Corp provides cargo handling and other services to marine, industrial, and municipal customers. It has facilities in 30 ports in eastern North America. Its web site is here Logistec Corp.
The last stock I wrote about was about was Teck Resources Ltd. (TSX-TCK.B, NYSE-TCK) ... learn more. The next stock I will write about will Trigon Metals Inc. (TSX-TM, OTC-PNTZF) ... learn more on Monday, October 15, 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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