Monday, June 24, 2019

CI Financial Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Financial. I do not think this is a great dividend stock because of the ups and downs in the dividend payments. The stock price is cheap to reasonable. I would think it is cheap for a reason. See my spreadsheet on CI Financial Corp.

I do not own this stock of CI Financial Corp (TSX-CIX, OTC-CIFAF). I started to follow this stock originally because it was a Mutual Fund company. People in the past talked about it being easier to make money from buying a Mutual Fund company than buying Mutual Funds.

When I was updating my spreadsheet, I noticed that more analysts are looking at this stock. This is a positive development. Insiders are also buying a lot with NIB at 0.14% (where normal might be 0.01% to 0.02%). Outstanding shares have been declining with shares down by 3% and 1.8% per year over the past 5 and 10 years. This means the growth will show up in things like Revenue and Net Income, rather than Revenue per Share and EPS.

When they became a Unit Trust in 2006, dividends were significantly increased, but these dividends proved to be unsustainable. They changed back to a corporation in 2009 and dividends were decreased in 2010. They have increased their dividends since 2011 until 2018 when they changed the payout period from monthly to quarterly and decreased the dividends again. So, they have a very mixed record for paying dividends. See the chart below.

The dividend yields have varied but mostly they were in the moderate range. The current dividend yield is 3.38%, with 5, 10 and historical yields at 4.77%, 4.14% and 3.48%.

The Dividend Payout Ratios are fine. DPR for EPS for 2018 is 47% with 64% 5 year coverage. The DPR for CFPS for 2018 is 42% with 5 year coverage at 52%. Before dividends were cut in 2018 DPR for EPS was 94%.

Debt Ratios are fine, but has a vulnerability that cash flow is needed to get good coverage of current liabilities. The Long Term Debt/Market Cap Ratio is 0.38. The Liquidity Ratio for 2018 is 1.03 with 5 year median at 0.98. If you add in cash flow after dividends, the ratio becomes 1.44 with 5 year coverage at 1.62. The Debt Ratio for 2018 is 1.50 with 5 year median at 2.02. The Leverage and Debt/Equity Ratios for 2018 are 3.00 and 2.00 with 5 year median at 1.89 and 0.89.

The Total Return per year is shown below for years of 5 to 24 to the end of 2018. 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 chart below.

From Years Div. Gth Tot Ret Cap Gain Div.
2013 5 1.40% -8.54% -13.34% 4.80%
2008 10 1.86% 10.30% 1.77% 8.53%
2003 15 9.43% 11.39% 2.52% 8.87%
1998 20 22.30% 16.92% 7.81% 9.11%
1994 24 22.77% 19.71% 10.88% 8.83%


The 5 year low, median, and high median Price/Earnings per Share Ratios are 13.72, 14.74 and 16.72. The corresponding 10 year Ratios are 14.66, 16.51 and 19.08. The corresponding historical ratios are 15.72, 17.83 and 20.05. The current P/E Ratio is 8.98 based on a stock price of $21.28 and 2019 EPS estimate of $2.37. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $18.32. The 10 year low, median, and high median Price/Graham Price Ratios are 1.48, 1.67 and 1.94. The current P/GP Ratio is 1.16 based on a stock price of $21.28. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median Price/Book Value per Share Ratio of 3.92. The current P/B Ratio is 3.38 based on Book Value of $1,340M, Book Value per Share of $5.88 and a stock price of $21.28. The current ratio is some 14% below the 10 median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get an historical median dividend yield of 3.48%. The current dividend yield is 3.38% based on dividends of $0.72 and a stock price of $21.28. The current dividend yield is 2.8% below the historical median yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.

The 10 year median Price/Sales (Revenue) Ratio is 4.13. The current/S Ratio is 2.40 based on 2019 Revenue estimate of $2085M, Revenue per Share of $8.87 and a stock price of $21.28. the current ratio is 42% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

Results of stock price testing is that the stock price is cheap to reasonable. The testing is mostly coming up with a cheap stock price, although an important of P/B Ratio is saying it is only reasonable. We can ignore the dividend yield test because of the ups and downs in the dividends for shareholders.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (1), Hold (3) and Underperform (2). The consensus would be a Hold. The 12 month stock price consensus is $22.19. This implies a total return of 7.66% with 4.28% from capital gains and 3.38% from dividends.

See what analysts are saying at Stock Chase. Mostly they like the company. Christopher Liew on Motley Fool likes this company as a dividend stock, but does not talk about the dividend risk as dividends have gone down as well as up in the past. A writer on Simply Wall Street talks about the problems with the company’s dividends.. Ploutos Investing on Seeking Alpha is not pleased with this stock. The company provided an overview of the first quarterly 2019 results on Newswire.

CI Financial Corp is a diversified provider of wealth management products and services, primarily in the Canadian market. The company operates primarily through CI Investments, which offers a broad selection of investment funds, and Assante Wealth Management, which provides financial advice through a network of advisors. Other subsidiaries include Sentry Investments, Stonegate Private Counsel, Grant Samuel Funds Management (Australia), First Asset Investment Management and BBS Securities. Its web site is here CI Financial Corp.

The last stock I wrote about was about was Algonquin Power & Utilities Corp (TSX-AQN, NTSE-AQN) ... learn more. The next stock I will write about will be Computer Modelling Group Ltd. (TSX-CMG, OTC-CMDXF) ... learn more on Wednesday, June 26, 2019 around 5 pm. Tomorrow on my other blog I will write about Selling in a Bear Market.... learn more on Tuesday, June 25, 2019 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.

Friday, June 21, 2019

Algonquin Power & Utilities Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Utility. Contrary to what I have been reading, I think the stock price is too high. I think also that it is interesting analysts are giving this a Buy, but think that the stock will be lower in 12 months. See my spreadsheet on Algonquin Power & Utilities Corp.

I do not own this stock of Algonquin Power & Utilities Corp (TSX-AQN, NTSE-AQN). This is a dividend paying utility stocks. I got it off a list of Dividend Paying utility stocks. Also, I own Emera Inc. and this company owns shares in Algonquin Power.

When I was updating my spreadsheet, I noticed Outstanding Shares have increased a lot over the years. The increase over the past 5 and 10 years is 19% and 20% per year. In this event, the growth in per share values is important. Note that Revenue has increased by 21% and 25% over the past 5 and 10 years, but revenue per Share is up at 1.8% and 4% per year over the same time periods.

This company used to be an Income Trust. Income Trust companies used to pay much higher dividends and therefore had higher yields than corporations. Around that time, they not only cut the dividends, but they changed the frequency from monthly to quarterly. They have been increasing the dividends most years since 2011. Then in 2014, they changed the currency of the dividend to US$. Growth is in US$ and is it at 9.88% per year.

The current yield is moderate, but when the company was an income trust, the yield was much higher. The current yield is 4.63%. The 5, 10 and historical yields are 4.77^%, 4.70% and 4.89%.

The Dividend Payout Ratios are too high. If you look at the DPR for EPS for 2018 they are 129% with 5 year coverage at 123%. However, the company is running a Dividend Reinvestment Plan, so dividends are payable in other shares as well as cash. If you look at dividends paid in cash, 2018 is the first year the payout was less than 100%. In 2018 the Dividend Payout Ratio for cash dividends is 94% with 5 year coverage at 107%. The DPR for Cash Flow is only good if you look at cash dividends and then the ratio is 31%with 5 year coverage at 38%.

Debt Ratios are fine. The Long Term Debt/Market Cap ratios is fine at a current 0.68. The Liquidity Ratio is too low and has been too low as it is under 1.00. This means that the current assets cannot cover the current liabilities. However, if you add in cash flow after dividends it is better at a current 1.60 but has been lower in the past with a 5 year median of just 1.21. This is typical for a utility company as they count on cash flow to pay current debt, but it is a vulnerability.

The Debt Ratio is good at 1.75 with 5 year median also at 1.75. The Leverage and Debt/Equity Ratios are high, but rather typical of a utility at 3.14 and 1.68 respectively. The Debt/Equity Ratios are better than the Leverage Ratio but this is because of a large part of the Book Value is allocated to NCI.

The Total Return per year is shown below for years of 5 to 21 to the end of 2018 CDN$. 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 chart below.

From Years Div. Gth Tot Ret Cap Gain Div.
2013 5 15.49% 18.88% 13.34% 5.54%
2008 10 -2.75% 26.90% 19.51% 7.39%
2003 15 -2.11% 7.07% 1.80% 5.26%
1998 20 -1.11% 6.63% 0.82% 5.81%
1997 21 7.73% 1.31% 6.42%


The Total Return per year is shown below for years of 5 to 15 to the end of 2018 US$. 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 chart below.

From Years Div. Gth Tot Ret Cap Gain Div.
2013 5 9.88% 13.06% 8.03% 5.03%
2008 10 -3.80% 23.25% 15.84% 7.41%
2003 15 -2.46% 7.49% 1.43% 6.07%


The 5 year low, median, and high median Price/Earnings per Share Ratios are 23.61, 25.93 and 28.25. The corresponding 10 year ratios are 23.61, 26.55 and 29.39. The corresponding historical ratios are 23.75. 27.16 and 27.16. The current P/E Ratio is 19.35 based on a current stock price of $16.32 and 2019 EPS estimate of $0.84 ($0.63 US$). This stock price testing suggests that the stock price is relatively cheap. This is all in CDN$.

I get a Graham Price of $12.54. The 10 year low, median, and high median Price/Graham Price Ratios are 1.24, 1.40 and 1.58. The current P/GP Ratio is 1.30 based on a stock price of $16.32. This stock price testing suggests that the stock price is relatively reasonable and below the median. This is all in CDN$.

I get a 10 year median Price/Book Value per Share Ratio of 1.55. The current P/B Ratio is 1.97 based on Book Value of $4,075M, Book Value per Share of $8.29 and a stock price of $16.32. The current P/B Ratio is some 27% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This is all in CDN$.

The 10 year median Price/Sales (Revenue) Ratio is 2.62. The current P/S Ratio is 2.47 based on 2019 Revenue estimate of $2,312M ($1,727 US$), Revenue per Share of $4.71 and a stock price of $16.32. The current ratio is some 32% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This is all in CDN$.

Results of stock price testing is, I believe, that the stock price is relatively expensive. This is because of the P/S Ratio testing (which should not be ignored) and the P/B Ratio testing. I find that the P/E Ratios are rather high for a utility stock. Note that the Dividend Yield test would not be a good one because this stock used to be an Income Trust.

When I look at analysts’ recommendations, I find Strong Buy (2), Buy (6) and Hold (6). The consensus would be a Buy. The 12 month stock price is $16.20 ($12.10 US$). This implies a total return of 3.86% with 4.63% from dividends and capital loss of 0.76%. In a way, the 12 month stock price consensus really says the stock is too high at present. That is how I interpret a 12 month stock price lower than current price.

See what analysts are saying at Stock Chase. This company is a long-term play on clean energy. Nelson Smith on Motley Fool likes this company and says it is poised to be solid long-term investments . A writer on Simply Wall Street says the company has outperformed its industry. Vishesh Raisinghani of Motley Fool via Yahoo Finance thinks you can bank on this clean energy company for a great future. This article on Renewables Now talks about a recent acquisition.

Algonquin Power & Utilities Corp is a North American generation, transmission, and distribution utility. Within its distribution group, Algonquin owns and operates regulated water, natural gas, and electricity distribution utilities in the United States. In its generation group, Algonquin sells electricity produced by its energy facilities, including hydroelectric, wind, solar, and thermal power plants. Finally, the company's transmission group focuses on building and investing in natural gas pipelines and electric transmission systems. Its web site is here Algonquin Power & Utilities Corp.

The last stock I wrote about was about was be Intertape Polymer Group Inc. (TSX-ITP, OTC-ITPOF) ... learn more. The next stock I will write about will be CI Financial Corp (TSX-CIX, OTC-CIFAF) ... learn more on Monday, June 24, 2019 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.

Wednesday, June 19, 2019

Intertape Polymer Group Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. However, it is hard to see the dividend growing in the near future. The stock price is probably reasonable. See my spreadsheet on Intertape Polymer Group Inc.

I do not own this stock of Intertape Polymer Group Inc (TSX-ITP, OTC-ITPOF). I got this stock suggestion from Peter Keyser who I met in an Investment Club. The company reports in US$ and distributes its dividend in US$.

When I was updating my spreadsheet, I noticed that long term investors have not done well, but anyone investing in the last 10 years has. See chart below. This is because the stock really took off in the 2000 bull market and then crashed. This would not be the fault of management because investors got too excited about investing in the stock and pushed in up to heights it should not have gone to. A more serious thing is that Long Term Debt has been climbing. It went up 54% in 2017 and 84% in 2018 and then another 14% in the first quarter of this year.

Dividend yield is moderate. The current dividend yield is 4.02% with 5, and historical at 3.56 and 3.42%. They at first grow their dividends, but that has slowed and then stopped in 2018. What I have heard is that the company will spend their money on acquisitions in the near future and not on dividends.

The Dividend Payout Ratios are fine The DPR for EPS for 2018 is 71% with 5 year coverage at 60%. The DPR for CFPS for 2018 is 28% with 5 year coverage at 27%.

Debt Ratios are fine, but the Debt Ratio is getting low and the Leverage and Debt/Equity Ratios are getting a little high for what I like. The Long Term Debt/Market Cap ratio is 0.32. The Liquidity Ratio is 2.06 with 5 year median of 2.17. The Debt Ratio is 1.35 with 5 year median of 1.72. The Leverage and Debt/Equity Ratios for 2018 are 4.02 and 2.98 with 5 year medians of 2.55 and 1.55.

The Total Return per year is shown below for years of 5 to 25 to the end of 2018 in CDN$. 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 chart below.

From Years Div. Gth Tot Ret Cap Gain Div.
2013 5 17.55% 8.20% 3.82% 4.38%
2008 10 36.81% 31.55% 5.25%
2003 15 1.54% 0.17% 1.37%
1998 20 -3.20% -4.09% 0.89%
1993 25 4.06% 2.67% 1.39%


The Total Return per year is shown below for years of 5 to 25 to the end of 2018 in US$. 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 chart below.

From Years Div. Gth Tot Ret Cap Gain Div.
2013 5 11.84% 2.89% -1.07% 3.97%
2008 10 35.51% 30.02% 5.49%
2003 15 1.27% -0.16% 1.43%
1998 20 -2.47% -3.53% 1.06%
1993 25 3.62% 2.51% 1.11%


The 5 year low, median, and high median Price/Earnings per Share Ratios are 13.16, 17.82 and 22.48. The corresponding 10 year ratios are 9.73, 15.14 and 20.14. The corresponding historical ratios are 7.56, 14.43 and 18.19. The current P/E Ratio is 16.63 based on 2019 EPS estimate of $0.86 and a stock price of $14.30. This stock price testing suggests that the stock price is relatively reasonable but above the median. This is all in US$.

The 5 year low, median, and high median Price/Earnings per Share Ratios are 15.79, 17.31 and 20.88. The corresponding 10 year ratios are 9.73, 15.14 and 20.14. The corresponding historical ratios are 10.32, 15.70 and 21.07. The current P/E Ratio is 16.55 based on 2019 EPS estimate of $1.15 and a stock price of $19.05. This stock price testing suggests that the stock price is relatively reasonable but above the median. This is all in CDN$.

I get a Graham Price of $12.49. The 10 year low, median, and high median Price/Graham Price Ratios are 0.96, 1.36 and 1.77. The current P/GP Ratio is 1.53 based on a stock price of $19.05. This stock price testing suggests that the stock price is relatively reasonable but above the median. This is all in CDN$.

I get a 10 year median Price/Book Value per Share Ratio of 3.07. The current P/B Ratio is 3.16 based on a stock price of $19.05, Book Value of $353M and Book Value per Share of $6.02. The current ratio is 3% above the 10 year median. This stock price testing suggests that the stock price is relatively reasonable and below the median. This is all in CDN$.

I get an historical median dividend yield of 3.42%. The current dividend yield is 3.93% based on dividends of 0.75 and a stock price of $19.05. The current dividend yield is 15.05% above the historical yield. This stock price testing suggests that the stock price is relatively reasonable and below the median. This is all in CDN$.

The 10 year median Price/Sales (Revenue) Ratio is 0.87. The current P/S Ratio is 0.70 based on 2019 Revenue estimate of $1,193M, Revenue per Share of $20.33 and a stock price of $14.30. The current ratio is some 19% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. This is all in US$.

Results of stock price testing is that the stock price is probably reasonable. The difference in P/E Ratios in US$ and CDN$ is to do with currency exchange and the fact that this stock is trade a lot more on the TSX than OTC in the US. The testing is showing the stock price to be reasonable and either above or below the median. The good tests of P/S Ratio, P/B Ratio and dividend yield is all showing the stock price to be reasonable and below the median.

When I look at analysts’ recommendations, I find Buy (6) and Hold (2). The consensus would be a Buy. The 12 month stock price is 16.99 US$ or 22.74 CDN$. This implies a total return of 23.31% with 19.38% from capital gains and 3.93% from dividends.

See what analysts are saying at Stock Chase. Some analysts are impressed. Jason Phillips on Motley Fool likes this stock. (Do not forget for Motley Fool reports, if you do not get the full report use your browser’s arrows to go out and come back into the report and you should get the whole report.) A writer on Simply Wall Streetthinks the company has a good ROE. Devon Fonder on Rockland Register talks about this stock. Jill Kern on Sundance Herald compares this company to IT Tech Packaging Inc (NYSE-ITP).

Intertape Polymer Group Inc manufactures and sells a variety of packaging products. The firm's primary product categories include tapes, films, and woven coated fabrics. Its web site is here Intertape Polymer Group Inc.

The last stock I wrote about was about was Waste Connections Inc. (TSX-WCN, NYSE-WCN) ... learn more. The next stock I will write about will be Algonquin Power & Utilities Corp (TSX-AQN, NTSE-AQN) ... learn more on Friday, June 21, 2019 around 5 pm. Tomorrow on my other blog I will write about Why I am Not Buying Bonds.... learn more on Thursday, June 20, 2019 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.

Monday, June 17, 2019

Waste Connections Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. It would appear that the stock price is relatively expensive so now may not be the best time to buy this stock. Even with a Buy recommendation, the 12 months stock price is not much above the current one, which suggests that the stock price is relatively high. See my spreadsheet on Waste Connections Inc.

I do not own this stock of Waste Connections Inc (TSX-WCN, NYSE-WCN), but I used to. I first bought this stock in 2007 because TD Securities had a very favorable report on this stock and had it on its action buy lists. I had money because I had recently sold RIM. At that time, it was called BFI Canada Income Fund. In 2010, I needed to buy something for my Pension Account. I have this already and it is on TD Action Buy List. I sold when it because the target of a reverse takeover by an American company. The company has gone through a number of name changes.

When I was updating my spreadsheet, I noticed per share values have dropped a lot over the past 5 and 10 years because of the big increase in shares in 2016. In 2016 Progressive Waste Solutions Ltd, a Canadian company was amalgamated with Waste Connections Inc, an American company. It really was a reverse merger.

If you look at revenue, the 5 and 10 year revenue growth is 19% and 18% per year. However, the revenue per share is down over the same periods by 13% and 5% per year. EPS is fine, but the CFPS follows the revenue were the 5 and 10 year growth in Cash Flow is 26% and 21% per year, but the CFPS is lower by 8 and 3% per year.

The current dividend yields are very low, but they were high when this was the Canadian company of Progressive Waste Solutions and before 2010. The current dividend yield s just 0.69%. The 5, 10 and historical dividend yields are 0.94%, 1.13% and 1.31%.

I am following Progressive Waste Solutions into Waste Connections Inc. Under Progressive Waste Solutions, the dividends went up and down. Dividends were paid in CDN$ until 2017. I looked at a chart for WCN on the NYSE and it shows dividends going up and down and also being suspended. It does not appear that dividends are an important part of the return on this stock.

The Dividend Payout Ratios are good. The DPR for EPS in US$ is 28% for 2018 with 5 year coverage at 24%. The DPR for CFPS for 2018 in US$ is 11% with 5 year coverage at 8%.

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2018 is low and good at 0.21. The Liquidity Ratio for this stock is lower than what I would like with the 2018 ratio at 1.27 and the 5 year median at 1.20. I prefer this ratio to be 1.50 and higher. The Debt Ratio is high and good at 2.05 with 5 year median at 2.02. The Leverage and Debt/Equity Ratios are low and good at 1.95 and 0.95 respectively. The 10 year median ratios are a little higher at 2.22 and 1.22 respectively.

The Total Return per year is shown below for years of 5 to 17 to the end of 2018 in CDN$. 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.

From Years Div. Gth Tot Ret Cap Gain Div.
2013 5 15.80% 23.79% 22.74% 1.05%
2008 10 -4.17% 23.00% 21.43% 1.57%
2003 15 -0.24% 12.35% 10.37% 1.98%
2001 17 2.34% 15.20% 12.42% 2.78%


The Total Return per year is shown below for years of 5 to 16 to the end of 2018 in US$.

From Years Div. Gth Tot Ret Cap Gain Div.
2013 5 10.18% 17.67% 16.72% 0.95%
2008 10 -5.20% 21.97% 20.16% 1.82%
2003 15 -0.60% 14.52% 11.74% 2.78%
2002 16 3.28% 14.48% 11.57% 2.91%


The 5 year low, median, and high median Price/Earnings per Share Ratios are 25.19, 29.56 and 33.93. The corresponding 10 year ratios are 14.99, 18.65 and 22.15. The historical ratios are 15.87, 19.50 and 25.58. The current P/E Ratio is 39.02 based on a stock price of $126.70 and 2019 EPS Estimate of $3.25. This stock price testing suggests that the stock price is relatively expensive. This testing is in CDN$.

I get a Graham Price of $49.86. The 10 year low, median, and high median Price/Graham Price Ratios are 0.93, 1.10 and 1.27. The current P/GP Ratio is 2.54 based on a stock price of $126.70. This stock price testing suggests that the stock price is relatively expensive. This testing is in CDN$.

I get a 10 year median Price/Book Value per Share Ratio of 1.51. The current P/B Ratio is 3.79 based on a Book Value of $6,563M, Book Value per Share of $24.94 and a stock price of $94.46. The current ratio is 151% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$.

I get an historical median dividend yield of 0.69%. The historical median dividend yield is 1.31% based on dividends of $0.87 and a stock price of $126.70. The current yield is 47% below the historical one. This stock price testing suggests that the stock price is relatively expensive. This testing is in CDN$.

The 10 year median Price/Sales (Revenue) Ratio is 1.06. The current P/S Ratio is 4.62 based on 2019 Revenue estimate of $5,375M, Revenue per Share of $20.43 and a stock price of $94.16. The current ratio is 335% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$.

Results of stock price testing is that the stock price is relatively expensive. Some of the testing is in US$ and some in CDN$, but for each test you will get a similar answer using either currency.

When I look at analysts’ recommendations, I find Strong Buy (1), Hold (1). The consensus would be a Buy. The 12 month stock price of $96.14 US$ or $131.15 CDN$. This implies a total return of 4.20% with 3.52% from capital gains and 0.69% from dividends.

See what analysts are saying on Stock Chase. They like the stock and see industry consolidation in future. Victoria Hetherington on Motley Fool likes this stock, but mentions the low yield. A writer on Simply Wall Street likes this big company and says that debt is under control. There is an interesting article on this company at Construction Equipment Guide. In a imply Wall Street article on Yahoo Finance the writer suggests that the ROE for this company is lower than average.

Waste Connections is the third- largest integrated provider of traditional solid waste and recycling services in the North America. The firm serves residential, commercial, industrial, and energy end markets. Its web site is here Waste Connections Inc.

The last stock I wrote about was about was Power Corp of Canada (TSX-POW, OTC-PWCDF) ... learn more. The next stock I will write about will be Intertape Polymer Group Inc. (TSX-ITP, OTC-ITPOF) ... learn more on Wednesday, June 19, 2019 around 5 pm. Tomorrow on my other blog I will write about Toronto Money Show.... learn more on Tuesday, June 18, 2019 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.

Friday, June 14, 2019

Power Corp of Canada

Sound bite for Twitter and StockTwits is: Dividend Growth Financial. The stock price is testing as relatively cheap. This company has a lot of Life Insurances and they have suffered because of very low interest rates. Things have begun to improve. However, a recovery may take some time. See my spreadsheet on Power Corp of Canada.

I do not own this stock of Power Corp of Canada (TSX-POW, OTC-PWCDF). I started following this stock because it was on the Dividend Achievers, the Dividend Aristocrats lists and also on Mike Higgs’ list. It is a stock that I notice has been recommended lately as good value (October 2008). I would not buy it because I have shares in Power Financial, which this company controls.

When I was updating my spreadsheet, I noticed that after flat dividends from 2010 to 2014 inclusive, they began to raise dividends again. Increases are not as good as they were before the 2010 bear market. The last bear market and recession with very low interest rates was hard for life insurance companies.

Dividends were flat from 2010 to 2014 inclusive. As far as I know the company has never cut dividends. Increases have not been what where were in the past. See chart below. The last increase was in 2019 and it was for 6%.

Dividend yield is currently in the moderate to good range with the current yield at 5.72%. The 5, 10 and historical yields are 4.55%, 4.56% and 2.32%. The dividend yields have varied over time.

The Dividend Payout Ratios are good. The DPR for EPS for 2018 is 55% with 5 year coverage at 46%. The DPR for CFPS for 2018 is 9.3% with 5 year coverage at 8.9%.

Debt Ratios are fine. This is a financial company so you look at assets that cover the long term liabilities. The Debt/Investment Ratio is 89. Although the Liquidity Ratio is not important, I do calculate it and it is 1.97 in 2018. The Debt Ratio is 1.09 which is fine for a financial company.

The Total Return per year is shown below for years of 5 to 31 to the end of 2018. 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.

From Years Div. Gth Tot Ret Cap Gain Div.
2013 5 5.34% -0.55% -5.15% 4.60%
2008 10 3.08% 6.17% 0.90% 5.27%
2003 15 8.08% 4.40% 0.09% 4.31%
1998 20 10.12% 5.99% 1.97% 4.02%
1993 25 12.05% 11.41% 6.31% 5.10%
1988 30 10.51% 11.77% 7.04% 4.73%
1987 31 10.16% 10.71% 6.42% 4.28%


The 5 year low, median, and high median Price/Earnings per Share Ratios are 10.26. 11.08 and 11.91. The corresponding 10 year ratios are 10.54, 11.84 and 13.02. The corresponding historical ratios are 10.94, 12.80 and 14.62. The current P/E Ratio is 8.85 based on a stock price of $27.52 and a 2019 EPS estimate of $3.11. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $46.40. The 10 year low, median, and high median Price/Graham Price Ratios are 0.72. 0.83 and 0.91. The current P/GP Ratio is 0.59 based on a stock price of $27.52. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median Price/Book Value per Share Ratio of 1.20. The current P/B Ratio is 0.89 based on a Book Value of $14, 334M, Book Value per Share of $30.76 and a stock price of $27.52. This stock price testing suggests that the stock price is relatively cheap.

I get an historical median dividend yield of 2.32%. The current dividend yield is 5.89% based on dividends of $1.49 and a stock price of $27.52. The current yield is 154% below the current dividend yield. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 0.35. The current P/S Ratio is 0.24 based on 2019 Revenue estimate of $53,977M, Revenue per Share of $104.32 and a stock price of $27.52. The current ratio is 32% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

Results of stock price testing suggests that the stock price is relatively cheap. All the testing is showing up as a cheap stock price. The P/B Ratio is below 1.00 and this implies that the current stock price is below the theoretical breakup value of the company.

When I look at analysts’ recommendations, I find Buy (1) and Hold (6). The consensus would be a Hold. The 12 months stock price is $32.79. This implies a total return of 25.04% with 19.15% from capital gains and 5.89% from dividends based on a current stock price of $27.52.

See what analysts are saying on Stock Chase. Some positive and some negative comments. The Canadian Press via BNN Bloomberg talks about the consolidating Lifecos they own. Daniel Da Costa on Motley Fool says the company is an option for income. A writer on Simply Wall Street. The Canadian Press on Times Colonist talks about shareholders rejecting Say on Pay proposal.

Incorporated in 1925, Power Corp. of Canada is a diversified holding company with interests in financial services, communications, and other business sectors through its controlling interests in Power Financial. Its web site is here Power Corp of Canada.

The last stock I wrote about was about was Lassonde Industries (TSX-LAS.A, OTC-LSDAF) ... learn more. The next stock I will write about will Waste Connections Inc. (TSX-WCN, NYSE-WCN) ... learn more on Monday, June 17, 2019 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.

Wednesday, June 12, 2019

Lassonde Industries Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. There was a recent dividend cut and this often points to management expecting lower future earnings. The stock is testing as relatively reasonable but above the median. See my spreadsheet on Lassonde Industries Inc.

I do not own this stock of Lassonde Industries (TSX-LAS.A, OTC-LSDAF). Although this stock is not on the Investment Reporter list, MPL communications does write about this stock. It has been covered several times in their Advice Hotline emails in 2010. Reports have been favorable and they suggest buying it for dividends and long term capital gains.

When I was updating my spreadsheet, I noticed Dividends have mostly gone up on this stock, but they have been flat and have declined before. Dividends went up by 32.8% in 2019 but then declined by 26.5% in 2019. If you take 2019 into account, the 5 year increase in dividends is 10.29%, but the 10 year is a decline of 0.11%.

The dividend yield is low with the current yield at 1.25%. The 5, 10 and historical dividend yields are 1.11%, 1.495 and 1.76%. The dividend growth is current good (over 15%) at 15.48% per year over the past 5 years to the end of 2018. Dividend growth has been uneven. In the past dividends have been flat or have declined in some years. The last year with a dividend decline was 2019. The dividend increase to date is lower at 10.29% per year over the past 5 years.

The Dividend Payout Ratios are quite good. The DPR for EPS in 208 was 32% with 5 year coverage at 23%. The DPR for CFPS for 2018 was 13% with 5 year coverage at 10%.

Debt Ratios are all good. The Long Term Debt/Market Cap Ratio for 2018 is 0.21. The Liquidity Ratio for 2018 is 1.73 with 5 year median also at 1.73. The Debt Ratio is 2.21 with 5 year median at 2.13. The Leverage and Debt/Equity Ratios are 1.83 and 0.83 respectively with 5 year medians at 2.00 and 1.00 respectively.

The Total Return per year is shown below for years of 5 to 28 to the end of 2018. 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.

From Years Div. Gth Tot Ret Cap Gain Div.
2013 5 15.48% 15.22% 13.71% 1.51%
2008 10 4.50% 22.09% 19.88% 2.21%
2003 15 15.28% 17.32% 15.51% 1.81%
1998 20 12.66% 14.30% 5.84% 8.46%
1993 25 11.73% 14.16% 12.60% 1.55%
1990 28 11.52% 15.98% 13.96% 2.02%


The 5 year low, median, and high median Price/Earnings per Share Ratios are 15.83, 18.30 and 20.60. The 10 year corresponding ratios are 13.68, 15.93 and 18.19. The corresponding historical ratios are 11.43, 13.15 and 15.53. The current P/E Ratio is 18.81 based on a stock price of $190.02 and 2018 EPS estimate of $10.10. This stock price testing suggest that the stock price is relatively expensive, but just into the expensive range.

I get a Graham Price of $146.30. The 10 year low, median, and high median Price/Graham Price Ratios are 1.01, 1.18 and 1.35. The current P/GP Ratio is 1.30 based on a stock price of $190.02. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a 10 year median Price/Book Value per Share Ratio of 1.95. The current P/B Ratio is 2.02 based on Book Value of $655M, Book Value per Share of $94.19 and a stock price of $190.02. The current ratio is 3.6% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get an historical median dividend yield of 1.76%. The current dividend yield is 1.25% based on Dividends of $2.38 and a stock price of $190.02. The current yield is 29% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive.

The 10 year median Price/Sales (Revenue) Ratio is 0.68. The current P/S Ratio is 0.78 based on 2018 Revenue estimate of $1,694M, Revenue per Share of $222.83 and a stock price of $190.02. The current ratio is 15% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

Results of stock price testing is probably relatively reasonable but above the median as shown by the P/B Ratio and P/S Ratio testing. You have wonder about the dividend yield testing. The dividends have recently declined, but this was after a big increase in 2018. The P/E Ratio test is showing the stock as relatively expensive, but this is not one of my favourite tests.

When I look at analysts’ recommendations, I find one Hold recommendation. So, the consensus would be a Hold. The 12 month stock price is $195.00. This implies a total return of 3.87% with 2.62% from capital gains and 1.25% from dividends.

See what analysts are saying about this stock on Stock Chase. It is not well followed but comments are positive. Brian Pacampara,on Motley Fool talks about Desjardins Securities downgrading this stock in February 2019 because of bad fourth quarter. A writer on Simply Wall Street says the company’s debt level is fine. CNW Group has published via Yahoo Finance the first quarter results for this company. Larry Jones on Avondale Advocate.

Lassonde Industries Inc is Canadian company, engaged in development, manufacturing and marketing of ready-to-drink fruit and vegetable juices and drinks. It also acts as a producer of store brand shelf-stable fruit juices and drinks in the United States and a major producer of cranberry sauces. The company operates through the single segment being the Development, manufacturing, and marketing of ready-to-drink fruit and vegetable juices and drinks and of specialty food products. Its web site is here Lassonde Industries Inc.

The last stock I wrote about was about was Goeasy Ltd (TSX-GSY, OTC-EHMEF) ... learn more. The next stock I will write about will be Power Corp of Canada (TSX-POW, OTC-PWCDF) ... learn more on Friday, June 14, 2019 around 5 pm. Tomorrow on my other blog I will write Gordon Pape and Brookfield.... learn more on Thursday, June 13, 2019 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.

Monday, June 10, 2019

Goeasy Ltd

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. The stock price has already climbed some 40% this year. It is probably on the expensive side. They are giving out lots of stock options. I have not changed my mind as I do not think this is the sort of company that I want to make money from. See my spreadsheet on Goeasy Ltd.

I do not own this stock of Goeasy Ltd (TSX-GSY, OTC-EHMEF). In April of 2016 Investment Reporter said to seek stocks with growing dividends from The Investment Reporter Key stock buys. This is one stock that was named. However, I would still rather invest in companies that are not in the business of charging very high interest rates.

When I was updating my spreadsheet, I noticed that the dividend was increased this year by some 37.8% and that the stock price also when up strongly by 40%. They are also giving out a lot of stock options. The Stock Options increase outstanding shares by 1.33% in the last 12 months. You would expect this to be around 0.50%.

Dividend yields are moderate but they have dipped at times to low (below 2%). The current dividend is 2.47% with 5, 10 and historical yields at 2.05%, 2.48% and 2.21%. Dividends have been growing strongly recently. However, there was a period in the past with no growth from, from 2010 to 2014 inclusive. See chart below.

The Dividend Payout Ratios are good. The DPR for EPS for 2018 is 24% with 5 year coverage also at 24%. The DPR for CFPS is low at 5% with 5 year coverage at 5%.

Debt Ratios are fine. The company is classified as consumer but has financial features. The long Term Debt/Market Cap for 2018 was high at 1.26. This was due to the falling of the stock price, but the whole Canadian market fell last year. However, the current ratio is 0.89 which is fine. The Liquidity Ratio for 2018 is 2.27 with a 5 year median of 1.57.

The Debt Ratio is a bit low at 1.4 with 5 year median at 1.64. The Leverage and Debt/Equity Ratios are a bit high at 3.50 and 2.50 respectively with 5 year medians at 2.57 and 1.57 respectively.

The Total Return per year is shown below for years of 5 to 23 to the end of 2018. 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.

From Years Div. Gth Tot Ret Cap Gain Div.
2013 5 18.89% 17.90% 15.64% 2.26%
2008 10 9.66% 16.78% 14.18% 2.60%
2003 15 12.73% 15.40% 12.86% 2.55%
1998 20 9.17% 7.60% 1.57%
1990 23 3.41% 2.63% 0.78%


The 5 year low, median, and high median Price/Earnings per Share Ratios are 8.85, 11.97 and 14.51. The corresponding 10 year ratios are 8.80, 11.76 and 14.78. The corresponding historical ratios are 9.54, 13.22 and 16.74. The current P/E Ratio is 9.41 based on a stock price of $50.14 and 2019 EPS estimate of $5.33. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $49.97. The 10 year low, median, and high median Price/Graham Price Ratios are 0.63, 0.85 and 1.07. The current P/GP Ratio is 1.00 based on a stock price of $50.14. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a 10 year median Price/Book Value per Share Ratio of 1.37. The current P/B Ratio is 2.41 based on a stock price of $50.14, Book Value of $302M, and Book Value per Share of $20.82. The current ratio is 76% 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 2.21%. The current dividend yield is 2.47% based on dividends of $1.24 and a stock price of $50.14. The current dividend yield is 11.9% above the historical dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.

The 10 year median Price/Sales (Revenue) Ratio is 0.81. The current P/S Ratio is 1.20 based on 2019 Revenue of $604M, Revenue per Share of $41.71 and a stock price of $50.14. The current ratio is 49% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

Results of stock price testing is probably relatively expensive. Both the P/S Ratio test and the P/B Ratio test is showing this stock as expensive and I do not think these tests can be ignored. There has been big dividend increases recently in line with the stock price, but Revenue seems not to have kept up and neither has book value. I have always felt that Revenue growth is important.

When I look at analysts’ recommendations, I find Strong Buy (1) and Buy (5). The consensus would be a Buy. The 12 month stock price consensus is $64.00. This implies a total return of 30.12% with 27.64% from capital gains and 2.47% from dividends.

See what analysts are saying at Stock Chase. Most analysts think it has a good story. Ryan Vanzo on Motley Fool says the company has great customer service. A writer on Simply Wall Street says that the stock is undervalued. Note that the writer is using US$. Joseph Davey on Nyse News Room says the stock is giving a Buy signal. A writer on Simply Wall Street talks about insider selling. My Net Insider Selling is 0.07% of market Cap. This is high as you expect it to be no higher than 0.02%. However, the Net Insider Selling seems to be of options, not shares held. For the major insiders, shares held has gone up.

Goeasy Ltd provides financial services to own furniture, electronics, computers, and appliances. It offers merchandise leasing of household furnishings, appliances, and home electronic products to consumers under weekly or monthly leasing agreements. The company also offers unsecured installment loans to consumers. Its web site is here Goeasy Ltd.

The last stock I wrote about was about Husky Energy Inc. (TSX-HSE, OTC-HUSKF) ... learn more. The next stock I will write about will be Lassonde Industries (TSX-LAS.A, OTC-LSDAF) ... learn more on Wednesday, June 12, 2019 around 5 pm. Tomorrow on my other blog I will write about Why Retail Investors Lose.... learn more on Tuesday, June 11, 2019 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.

Friday, June 7, 2019

Husky Energy Inc

Sound bite for Twitter and StockTwits is: Dividend Paying Resource. The stock price seems relatively cheap. They are back to rising dividends and this is a good sign that the company has faith in its future earnings. See my spreadsheet on Husky Energy Inc.

I do not own this stock of Husky Energy Inc (TSX-HSE, OTC-HUSKF). I had been tracking this stock prior to buying it. I sold this stock to buy Canadian Utilities Ltd (TSX-CU, OTC-CDUAF). I gave up hoping for an oil and gas recovery. I never had much in oil and gas in any event. I had Husky from 2008 to 2017 and had a total loss of 4.53% per year.

When I was updating my spreadsheet, I noticed there is a lot of red ink. This stock has not done well for shareholders for a while.

Dividends have gone up and down and have been suspended in the past. So as a shareholder you would not know what you would get in dividends very well. However, I guess that since this is an oil and gas company an investor would assume lower or suspended dividends when the oil and gas market is suppressed.

Dividends hit a high in 2007. There were decreases from then to 2011 when dividends became flat. Dividends were suspended for 2017 and then restarted in 2018. Dividends were increased in 2019 and analysts expect further dividend increases in the future.

Dividends have been covered by CFPS in the past but not by EPS. The DPR for EPS for 2018 was low at 20%. The 5 year coverage was very high at 1352%. The DPR for EPS for this year is expected at 40%. The DPR for CFPS for 2018 was low at 6.9% with 5 year coverage at 17%.

Debt Ratios are all fine. The Long Term Debt/Market Cap Ratio for 2018 was 0.37. The Liquidity Ratio for 2018 was 1.14 with 5 year median also at 1.14. If you add in Cash Flow after dividends, the ratio would be 1.91. The debt ratio is very good at 2.26 with 5 year median at 2.20. The Leverage and Debt/Equity Ratios are also good at 1.80 and 0.80 respectively.

The Total Return per year is shown below for years of 5 to 28 to the end of 2018. 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.

From Years Div. Gth Tot Ret Cap Gain Div.
2013 5 -25.52% -13.80% -15.98% 2.18%
2008 10 -15.93% -3.50% -7.53% 4.03%
2003 15 -1.96% 11.41% 1.24% 10.17%
1998 20 -1.67% 10.36% 2.27% 8.08%
1993 25 10.25% 4.84% 0.18% 4.66%
1990 28 10.25% 10.66% 4.72% 5.94%


The 5 year low, median, and high median Price/Earnings per Share Ratios are 13.78, 17.15 and 20.51. The corresponding 10 year ratios are 14.32, 16.84 and 19.36. The corresponding historical ratios are 9.65, 12.45 and 15.11. The current P/E Ratio is 10.37 based on a stock price of $12.96 and 2019 EPS estimate of $1.25. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $22.91. The 10 year low, median, and high median Price/Graham Price Ratios are 0.78, 0.99 and 1.11. The current P/GP Ratio is 0.57 based on a stock price of $12.96. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median Price/Book Value per Share Ratio of 1.40. The current P/B Ratio is 0.90 based on Book Value of $18,752M, Book Value per Share of $18.66 and a stock price of $12.96. The current ratio is 50% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get an historical median dividend yield of 3.90%. The current dividend yield is 3.86% based on dividends of $0.50 and a stock price of $12.96. The current dividend yield is 1% below the historical dividend yield. This stock price testing suggests that the stock price is relatively reasonable and around the median.

The 10 year median Price/Sales (Revenue) Ratio is 1.19. The current P/S Ratio is 0.61 based on 2019 Revenue estimate of $21,240M, Revenue per Share of $21.13 and a stock price of $12.16. The current ratio is some 48% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

Results of stock price testing is coming up mostly with a stock price being relatively cheap. I never cared for the P/E Ratio test, but it is showing the same. The only one suggesting otherwise is the dividend yield test. However, since the dividends have varied so much, it would suggest that this is not especially a good test.

When I look at analysts’ recommendations, I find Buy (4), Hold (10), Underperform (1) and Sell (1). The consensus would be a Hold. The 12 month stock price is $17.13. This implies a total return of 36.03% with 32.18% and 3.86% from dividends based on a current stock price of $12.96. The recommendations are all over the place and the consensus stock price is quite high for a Hold recommendation.

See what analysts are saying about this stock on Stock Chase. Some were disappointed about the MEG deal. Ryan Vanzo on Motley Fool talks about how cheap this stock is now. A writer on Simply Wall Street talks about the company’s ownership. Dan Healing of the Canadian Press on Global News talks about the company’s future plans. Staff from the Canadian Press on Global News talks of the company restarting production at its southern drill centre in the White Rose oil field following a major oil spill off the coast of Newfoundland last fall .

Husky Energy is one of Canada's largest integrated energy companies, operating in western Canada, the United States, and the Asia-Pacific and Atlantic regions. The upstream portfolio includes light and medium crude, heavy crude, bitumen, natural gas liquids, and natural gas. Its web site is here Husky Energy Inc.

The last stock I wrote about was about was Maxar Technologies Ltd (TSX-MAXR, NYSE-MAXR) ... learn more. The next stock I will write about will be Goeasy Ltd (TSX-GSY, OTC-EHMEF) ... learn more on June 10, 2019 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.

Wednesday, June 5, 2019

Maxar Technologies Ltd

Sound bite for Twitter and StockTwits is: Dividend Paying Tech. This stock is certainly relatively cheap. It is certainly oversold. However, it also has problems. The biggest vulnerability is the debt ratios. On the other hand, it has just received a contract from NASA. See my spreadsheet on Maxar Technologies Ltd.

I do not own this stock of Maxar Technologies Ltd (TSX-MAXR, NYSE-MAXR). I read about this stock in MPL Communication's Advice Hotline dated October 10, 2012. CanTech likes it also. It is a Tech stock with dividends. I therefore started to follow this stock in 2013.

When I was updating my spreadsheet, I noticed that there is a big earnings loss for 2018 and it is mostly because of an impairment charge. They started to report in US$ from CDN$ in 2017 The company has moved its headquarters from Richmond BC to Westminster, Colorado in 2018. They also changed their account rules from IFRS to US GAAP in 2018..

Talk about dividends yields and growth. Dividends only were started in 2012. There was only one dividend increase and that was in 2015. The dividends used to be paid in CDN$, but they switch to US$ this year 2019. Dividends were flat from 2015 to 2018. In 2019 the dividends were decreased by probably 97%.

So, because of the dividend cut, the dividend yield went very low to 0.59%. Because the drop in stock prices, the dividend yield got over 10% in 2018. However, the dividend yield has always been low with 5, 6 and historical median yields at 1.89% for all three.

The Dividend Payout Ratios are only good when you look at cash flow. Companies can manage for some time with dividends only covered by cash flow. The DPR for EPS were fine until 2018 when the company had a massive earnings loss. Since analysts expect earnings losses to continue, it is unknown when the company will be able to cover any dividend with earnings. The DPR for CFPS for 2018 was 24% with 5 year coverage at 19%. This coverage is good.

Debt Ratios are not good on any measure. The company recognizes this and is attempting to fix them. Long Term Debt increased massively in 2017 by almost 500%. The current Long Term Debt Ratio is 7.83 US$. Certainly any ratio over 1.00 is too high and some analysts think anything over 0.50 is too high.

The Liquidity Ratio is too low. The one for 2018 is 0.75 with 5 year median of 0.86. If this ratio is not 1.00, it means that current assets cannot cover current liabilities. Even adding back in current portion of the short term debt and cash flow after dividends, the ratio is only 0.86. In the first quarter this ratio improved to 0.83 and adding back in current portion of the short term debt and cash flow after dividends it gets to 1.20.

The debt ratio is low also, with a 2018 ratio of 1.15, and remaining similar at 1.13 in the first quarter. I prefer both the Liquidity Ratio and Debt Ratio to be 1.50 for safety’s sake. The Leverage and Debt/Equity Ratios are very high with the ones for 2018 at 7.78 and 6.78 respectively and the current ones slightly higher at 7.83 and 6.94.

The Total Return per year is shown below for years of 5 to 18 to the end of 2018 in CDN$. 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.

At the moment both Canadian and US investors in this stock is losing money.

From Years Div. Gth Tot Ret Cap Gain Div.
2013 5 2.63% -24.01% -27.65% 3.64%
2008 10 2.18% 2.06% -2.86% 4.92%
2003 15 0.67% -2.49% 3.16%
2001 18 0.96% -1.71% 2.67%


The Total Return per year is shown below for years of 5 to 16 to the end of 2018 in US$.

From Years Div. Gth Tot Ret Cap Gain Div.
2013 5 -2.36% -27.73% -31.09% 3.37%
2008 10 -3.05% 1.94% -3.43% 5.37%
2003 15 0.59% -2.87% 3.45%
2002 16 -6.96% -1.09% -5.88%


The 5 year low, median, and high median Price/Earnings per Share Ratios are 18.90, 22.50 and 26.10 CDN$. The corresponding 10 year median ratios are 17.97, 21.71 and 25.39 CDN$. The corresponding historical ratios are 18.04, 22.31 and 26.10 CDN$. The current P/E Ratio is negative as will the next two years of P/E Ratios. Therefore, I cannot do any P/E Ratio testing for this company.

I get a Graham Price of $24.12 CDN$. The 10 year low, median, and high median Price/Graham Price Ratios are 1.44, 1.86 and 2.19 CDN$. The current P/GP Ratios is 0.38 based on a stock price of $9.12 CDN$. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median Price/Book Value per Share Ratio of 3.34 US$. The current P/B Ratio is 0.70 US$ based on a Book Value of $579, Book Value per Share of $10.00 and a stock price of $6.78, all in US$. The current ratio is some 79% below the 10 year median. This stock price testing suggests that the stock price is relatively cheap.

I get an historical median dividend yield of 1.89% CDN$. The current dividend yield is 0.59% based on dividends of $0.05 CDN$ ($0.04 US$) and a stock price of $9.12 CDN$. The current dividend yield is 69% below the historical dividend yield. This stock price testing suggests that the stock price is relatively expensive.

The 10 year median Price/Sales (Revenue) Ratio is 1.60 US$. The current P/S Ratio is 0.21 based on 2019 Revenue of $1,960M US$, Revenue per Share of $32.89 US$ and a stock price of $6.78 US$. The current ratio is 87% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

Results of stock price testing is mostly coming up as relatively cheap. If the P/B Ratio is below 1.00, and this stock has a P/B ratio of 0.70 US$, it means that the stock is selling below the theoretical break up value of the company and is therefore very cheap. In this case, the Dividend Yield test is not really invalid even though the test results are because of a dividend cut. Dividends are approved based on how the board expects the company to behave in the new future. The dividend cut shows that they do not expect much in the near future.

When I look at analysts’ recommendations, I find Buy (1), Hold (6) and Underperform (1). The consensus would be a Hold. The 12 month stock price consensus is $11.85 US$. This implies a total return of 75.37% with 74.78% from capital gains and 0.59% from dividends, all in US$.

There is an article on Proactive Investor talking about this company given a contract by NASA. Cestrian Capital Research on Seeking Alpha talks about the company’s problems. There is an interesting article on the Financial Post about the company adopting a tax benefit preservation plan. Jason Phillips on Motley Fool files a positive report on this company saying it is massively oversold. .

The last stock I wrote about was about was Ensign Energy Services (TSX-ESI, OTC-ESVIF) ... learn more. The next stock I will write about will be Husky Energy Inc. (TSX-HSE, OTC-HUSKF) ... learn more on Friday, June 7, 2019 around 5 pm. Tomorrow on my other blog I will write about Something to Buy June 2019.... learn more on Thursday, June 06, 2019 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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