Valener Inc

Sound bite for Twitter and StockTwits is: Dividend Paying Utility. Dividends have started to grow. In the past dividends have gone down as well as up. The company does not have a great record of increasing dividends. Price seems reasonable but above the median, so it is a bit high currently. Since it invests in other companies you cannot tell what the financial position is. See my spreadsheet on Valener Inc.

I do not own this stock of Valener Inc (TSX-VNR, OTC-VNRCF). I was looking for another utility to invest in, in 2009 and I was looking possibly at another pipeline stock. This company has natural gas pipelines in Quebec. I also recognized the name of this company. In 2010 it reorganized and made a public utility stock out of 29% of what was Gas Metro. This makes the valuation of this stock very complex.

When I was updating my spreadsheet, I noticed that Gas Metro has changed its name to Énergir, L.P. This utility has again increase dividends in 2018 as they had from 2015. Prior to 2015 dividends were flat or decreasing. What I do not like is that the company has bought into other companies. The financial health of Valener Inc would be tied into these other companies and we may not easily find out their financial health.

Dividend yields have been in the good range (5% and 6% ranges). The current dividend yield is 5.80%, with 5, 10 and historical median dividend yields at 5.50%, 6.32% and 6.99%. As you can see in the chart below, the dividend has mostly gone down slightly except for the past 5 years. They started to do increases in 2015.

According to the Dividend Payout Ratio for EPS, the payout ratio is current quite high at 97.5% with 5 year coverage at 85.6%. The DPR for CFPS is also rather high at 42.2% with 5 year coverage at 74%. However, what really counts is the money they get from Énergir, L.P. (old Gaz Metro) and the other companies they have invested in. So I cannot really tell if they are paying out appropriately or not.

I did not think that the debt ratios of Valener count that much. It is the debt ratios of the companies they have bought into that really count. The Liquidity Ratio for Valener is low at 1.23 but add in cash flow after dividends it becomes 2.49. However, Énergir, L.P. ‘s Liquidity Ratio is lower at 1.09. The Debt Ratio for Valener is very good at 6.19 but Énergir, L.P.’s is still very good but much lower at 2.12. I do not feel that I can get a real grip on debt ratios for Valener.

The Total Return per year is shown below for years of 5 to 25 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.

The total return as sometimes been low and most of the total return is from dividends. They have paid good dividends over time, but I prefer dividends that grow.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	3.01%	11.29%	4.89%	6.40%
2008	10	-0.66%	11.12%	3.93%	7.18%
2003	15	-0.96%	4.70%	-0.92%	5.61%
1998	20	-0.53%	6.84%	0.29%	6.55%
1993	25	0.03%	10.07%	1.56%	8.51%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 13.75, 15.27, 16.63. The corresponding 10 year ratios are 14.70, 15.69 and 16.60. The corresponding historical ratios are 13.04, 14.09 and 15.89. The current P/E Ratio is 15.10 based on a stock price of $20.69 and 2019 EPS estimate of $1.37. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $23.14. The 10 year low, median, and high median Price/Graham Price Ratios are 0.82, 0.90 and 1.02. The current P/GP Ratio is 0.89 based on a stock price of $20.69. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year median Price/Book Value per Share Ratio of 1.11. The current P/B Ratio is 1.19 based on a Book Value of $680M, Book Value per Share of $17.37 and a stock price of 20.69. The current ratio is some 7.5% above the 10 year 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 6.99%. The current dividend ratio is 5.80% based on dividends of $1.20 and a stock price of $20.69. The current dividend yield is 17% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I cannot do a Price/Sales (Revenue) Ratio test because there is no revenue as such for this company.

Results of stock price testing is that the best tests, being the P/B Ratio test and the Dividend yield test shows that the stock price is relatively reasonable but above the median. I regret that no P/S Ratio test is possible because this is a great test of utilities.

When I look at analysts’ recommendations, I find Buy (1) and Hold (5) recommendations. The consensus would be a Hold. The 12 month stock price consensus is $21.67. This implies a total return of 10.54% with 4.74% from capital gains and 5.80% from dividends based on a current stock price of $20.69.

See what analysts are saying about this stock on Stock Chase. They mainly talk about the company’s dependence on Gaz Metro (which is now Énergir, L.P. Joseph Solitro on Motley Fool talks about 3 good dividend stocks including Valener. Alvin Rowe on Simply Wall Street talks about the company’s cash flow. However, its cash flow depends highly on companies it has bought into. Sonia Dale on Kentwood Post says the Value Composite One (VC1) for this stock is 44, which implies it is neither under or overvalues.

Valener Inc is an investment holding company engaged in the regulated energy business in the United States and Canada through Gaz Metro. Its core business operations involve natural gas distribution in Quebec and Vermont as well as electricity distribution in Vermont. The company through its subsidiaries holds the interest in wind farm business. It serves more than 200,000 customers in Quebec and over 310,000 customers in Vermont. Its web site is here Valener Inc.

The last stock I wrote about was about was Enghouse Systems Ltd (TSX-ENGH, OTC-EGHSF) ... learn more. The next stock I will write about will be Shaw Communications Inc (TSX-SJR.B, NYSE-SJR) ... learn more on February 1, 2019 around 5 pm. Tomorrow on my other blog I will write about Banks and Ratios.... learn more on Thursday, January 31, 2019 around 5 pm.

Also, on my book blog I have put a review of the book Darius by Pierre Briant learn more...

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.

Enghouse Systems Ltd

Sound bite for Twitter and StockTwits is: Dividend Growth Tech. Note that this stock is trading today at the 2 to 1 split level. There is insider selling. My stock price testing is showing stock as relatively expensive. See my spreadsheet on Enghouse Systems Ltd.

I do not own this stock of Enghouse Systems Ltd (TSX-ENGH, OTC-EGHSF). This stock has been recommended by Keystone Financial Publishing as a good Small Cap tech stock with dividends.

When I was updating my spreadsheet, I noticed that there is a lot of insider selling and insider selling by the CEO and CFO. Insider Selling is at 2.32% of market cap. This is very high. The financial year ends in October each year, so the last financial year ended on October 31, 2018.

The dividend yields are low and the dividend growth is good. The current dividend is just 0.97% with 5, 10 and historical dividend yields at 0.98%, 1.23% and 1.23%. Dividends have only been paid for 10 years. The dividend growth is shown in the table below and it is in the good range (of 15% or higher).

I believe that they can afford their dividends. The Dividend Payout Ratio for EPS for 2018 is 32% with 5 year coverage at 33%. The DPR for CPFS for 2018 was 16.8% with 5 year coverage at 17%.

Debt Ratios are good. The Long Term Debt/Market Cap Ratio is 0.00. It is too small to register in this ratio. The Liquidity Ratio has varied a lot over time with the one for 2018 at 2.24 and 5 year median at 1.53. The Debt Ratio is very good and it has always been with the current ratio at 3.41 and the 5 year median at 2.83. Leverage and Debt/Equity Ratios are good and have always been good. The current ones for 2018 are 1.41 and 0.41 respectively with 5 year medians at 1.52 and 0.52 respectively.

The Total Return per year is shown below for years of 5 to 22 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	18.58%	16.25%	15.08%	1.16%
2008	10	21.13%	33.56%	31.45%	2.10%
2003	15		15.76%	15.06%	0.70%
1998	20		16.18%	15.64%	0.54%
1996	22		15.06%	14.62%	0.44%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 26.42, 32.85 and 40.27. The corresponding 10 year ratios are 20.86, 26.23 and 32.00. The corresponding historical ratios are 16.76. 20.73 and 25.47. The current P/E Ratio is 29.35 based on a stock price of $36.98 and 2019 EPS estimate of $1.26. this stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of 13.46. The 10 year low, median, and high median Price/Graham Price Ratios are 1.56, 2.04 and 2.51. The current P/GP Ratio is 2.74 based on a stock price of $36.98. 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 3.56. The current P/B Ratio is 5.76 based on Book Value of $350M, Book Value per Share of $6.41 and a stock price of $36.98. The current ratio s some 62% 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 1.36%. The current dividend yield is 0.97% based on dividends of $0.36 and a stock price of $36.98. The current dividend yield is some 28% 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 3.48. The current P/S Ratio is 5.40 based on 2019 Revenue of $374M, Revenue per Share of $6.03 and a stock price of $36.98. The current ratio is some 55% above the 10 year median. This stock price testing suggests that the stock price is relatively expensive.

Results of stock price testing is that all the tests are showing this stock as relatively expensive. The testing for P/E Ratio is based on the 10 year ratios. The P/E Ratios have been rising quite fast.

When I look at analysts’ recommendations, I find Buy (4) and Hold (1). The consensus recommendations would be a Buy. The 12 month stock price consensus is $43.00. This implies a total return of 17.25% with 16.28% from capital gains and 0.97% from dividends based on a stock price of $36.98.

See what analysts are saying about this stock on Stock Chase. They like this company and feel it will continue to grow through acquisitions. Ambrose O'Callaghan on Motley Fool thinks that this stock is too good to pass up. The company announces an acquisition via News Wire. the company announced a two for one share split for January 25, 2019 on News Wire. Gavin Beck on Simply Wall Street looks at the company’s dividend and says it is low for this sort of company. However, he does not consider dividend growth.

Enghouse Systems Ltd is a Canada-based provider of software and services to a variety of end markets. The firm's operations are organized in two segments namely, the Interactive Management Group and the Asset Management Group. The firm has operations in Canada, the United States, the United Kingdom, France, Germany, Sweden, Israel, Croatia, Denmark, Norway, India, Japan, Hong Kong, Singapore, and Australia etc. Its web site is here Enghouse Systems Ltd.

The last stock I wrote about was about was Sylogist Ltd (TSX-SYZ, OTC-SYZLF) ... learn more. The next stock I will write about will be Valener Inc (TSX-VNR, OTC-VNRCF) ... learn more on Wednesday, January 30, 2019 around 5 pm. Tomorrow on my other blog I will write about Energy Stocks.... learn more on Tuesday, January 29, 2019 around 5 pm.

Also, on my book blog I have put a review of the book 100 Mistakes That Changed History by Bill Fawcett learn more...

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.

Sylogist Ltd

Sound bite for Twitter and StockTwits is: Dividend Growth Tech. Stock price is on the high side. It might be a good short term buy, but it is not a good long term buy. There is currently insider buying. See my spreadsheet on Sylogist Ltd.

I do not own this stock of Sylogist Ltd (TSX-SYZ, OTC-SYZLF). I learned about this stock from the CanTech newsletter I subscribe to.

When I was updating my spreadsheet, I noticed that there was a lot of selling last year (2.11%), but this year there is insider buying (0.40%). Usually, Net Insider Selling or Net Insider Buying is at 0.01 or 0.02%, so these values are high. The financial year ends in September each year so the last financial statement is dated September 30, 2018.

The dividend yields are moderate with moderate to high dividend growth. The dividends have only been paid since 2010 or for 8 years. The 5 year and 8 year dividend yields are 2.88% and 3.01%. The last dividend increase was at the end of 2018 (but in the 2019 financial year) for 18.8%. They have also paid out special dividends

They do appear to be paying out more than they should in a conventional sense. However, they do have lots of cash on hand so in that sense they can afford what dividends they are paying. The DPRs for The Dividend Payout Ratio for both EPS and CFPS are high with even the DPS for CFPS over 100% in the past. The DPRs for 2018 seem to be some of the best so far.

The DPR for EPS in 2018 was 55% with 5 year coverage at 93%. If you include the special dividend, the DPR for EPS for 2018 is 64% with 5 year coverage at 112%. The DPR for CFPS for 2018 is 48% with 5 year coverage at 63%.

Debt Ratios are great. The company has no Long Term Debt, so the Long Term Debt/Market Cap Ratio is 0. The Liquidity Ratio for 2018 is 2.50 with 5 year median at 3.10. The Debt Ratio is 3.44 in 2018 with 5 year median at 3.97. The Leverage and Debt/Equity Ratios for 2018 are 1.41 and 0.41 respectively with 5 year medians at 1.34 and 0.34.

The Total Return per year is shown below for years of 5 to 20 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	14.17%	16.66%	13.07%	3.59%
2008	10	22.28%	52.51%	42.99%	9.52%
2003	15		34.47%	30.91%	3.55%
1998	20		2.78%	1.92%	0.86%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 23.94, 54.38 and 42.88. The corresponding 10 year ratios are 16.12, 23.27 and 31.85. The corresponding historical ratios are 3.90, 10.11 and 16.33. The current P/E Ratio is 22.81 based on a stock price of $13.23 and 2019 EPS estimate of $0.53. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $5.05. The 10 year low, median, and high median Price/Graham Price Ratios are 1.61, 2.36 and 2.87. The current P/GP Ratio is 2.62 based on a stock price of $13.23. 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 3.68. The current P/B Ratio is 6.76 based on a Book Value of $43.5M, Book Value per Share of $1.96 and a stock price of $13.23. The current ratio is some 84% 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 3.01%. The current dividend yield is 2.87% which is 4.6% above the historical median. The current yield is based on dividends of $0.38 and a stock price of $13.23. 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 5.96. The current P/S Ratio is 7.24 based on 2019 Revenue estimate of $40.6M, Revenue per Share of $1.83 and a stock price of $13.23. The current ratio is some 21.3% above the 10 year median. This stock price testing suggests that the stock price is relatively expensive.

Both the standard and good tests of P/B Ratio and P/S Ratio says that the stock price is expensive. In this case on an absolute basis a P/B Ratio of 6.76 is quite a high one. The P/S Ratios are much more sector dependent. This would suggest that the current stock price is on the high side. On the other hand, this company might be considered to be a fast growing tech company. So, it might be a good short term buy but it is not a good long term buy.

When I look at analysts’ recommendations, I find Strong Buy (1) and Buy (1). The consensus would be a Strong Buy. The consensus 12 month target price is $17.00. This implies a total return of $31.37% with 2.87% from dividends and 28.50% from capital gains.

See what analysts are saying about this stock on Stock Chase. Few analysts follow this stock, but they do like it. Mat Litalien at Motley Fool thinks this stock is a little gem. Kayla Ward on Simply Wall Street talks about talks about insider buying at this company. The company announces fourth quarterly results on News Wire. William Tyler on X News Press says that two analysts have set target prices on this stock.

Sylogist Ltd is a technology and licensing company which, through strategic acquisitions, investments, and operations management, provides intellectual property solutions to public and private sector customers. Its web site is here Sylogist Ltd.

The last stock I wrote about was about was Transcontinental Inc (TSX-TCL, OTC-TCLAF) ... learn more. The next stock I will write about will be Enghouse Systems Ltd (TSX-ENGH, OTC-EGHSF) ... learn more on Monday, January 28, 2019 around 5 pm.

Also, on my book blog I have put a review of the book Energy and Civilization by Vaclav Smil learn more...

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.

Transcontinental Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. The price seems reasonable to reasonable and above the median. Insider went from Net Insider Selling to Net Insider Buying. This is interesting and shows that the insiders seem positive about the recent transitions of the company. See my spreadsheet on Transcontinental Inc.

I own this stock of Transcontinental Inc (TSX-TCL.A, OTC-TCLAF). This is a dividend growth stock. It was on a number of dividend lists. However, it fell on hard times after 2008, but currently seems to be recovering. It is was on the Canadian Dividend Aristocrats Index when I bought it in 2015. It is still there today.

When I was updating my spreadsheet, I noticed Dividend increases have been low since 2012 when they suffered an earning loss. The stock price has dropped and my total return on this stock was 21.6% last year but only 10.2% this year. This is still a good return, but it is half of what it was.

Also, long Term Debt and Goodwill have gone up dramatically this year because of acquisitions. See the press release here. There was a lot of insider buying in 2018. The Net Insider Buying was 0.10%. What is normal is 0.01 to 0.02%, so this is high.

Revenue is hardly moving with growth over the past 5 and 10 years at 2.12% and -0.01% per year in Revenue per Share. However, EPS is moving up dramatically with growth at 72.24% and 41.09% per year. In 2018 there was a bit of a reversal with Revenue per Share up 16.06% and EPS down 8.42%. In 2018 Revenue is up by 30.70%. The financial year end is in October each year, so the last financial year ended October 31, 2018.

Current dividend yield is in the moderate range with dividend yield at 4.07%. It is in the top of the moderate range now, but they used to be in the middle, with 5 and 10 median year dividend yields at 3.82%, 3.81%. The historical median yield is much lower at just 1.31%. That is because dividend yields were low until 2008.

Dividend growth used to be higher in a moderate range mostly. But it has been low lately. See the chart below. The last increase was 5% and it occurred in 2018. So, this stock when from low dividend yield and high dividend growth to moderate dividend yield with a current growth level that is low. The company only states that it wants to pay an attractive dividend, whatever that means.

Currently, they can afford their dividends. The Dividend Payout Ratio at 33.2% in 2018 with 5 year coverage at 30.8%. The DPR was higher than 100% in 2014 to 2016 inclusive. The DPR for CFPS for 2018 was 19.1% with 5 year coverage at 17.5%. Prior to 2008, the DPR was less than 20%.

The debt ratios are fine. The Long Term Debt/Market Cap Ratio for 2018 is 0.64. It was just 0.16 last year, but the 5 year median is 0.24. The Liquidity Ratio for 2018 was low at 1.31 with 5 year median at just 1.31 also. If you add in cash flow after dividends you get a ratio of 1.65 with a 5 year median at 1.78.

The Debt Ratio for 2018 is very good at 2.33 with 5 year median at 2.08. Leverage and Debt/Equity Ratios are also quite good at 1.75 and 0.75 respectively. The 5 year medians are a bit higher at 2.08 and 1.08.

The Total Return per year is shown below for years of 5 to 25 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	7.43%	10.13%	5.71%	4.42%
2008	10	10.35%	11.86%	6.85%	5.01%
2003	15	7.05%	1.01%	-1.44%	2.45%
1998	20	12.41%	7.77%	4.82%	2.95%
1993	25	11.08%	8.47%	5.77%	2.70%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 8.06, 8.74 and 10.49. The corresponding 10 year ratios are 6.01, 7.50 and 8.46. The corresponding historical ratios are 9.64, 13.51 and 13.52. The current P/E Ratio is 9.43 based on a stock price of $20.66 and 2018 EPS estimate of $2.16. This stock price testing suggests that the stock price is reasonable but above the median. This is using the most recent ratios.

The company is also using an Adjusted EPS (that excludes unusual items). The 5 year low, median, and high median Price/Earnings per Share Ratios are 6.36, 7.46 and 8.55. The corresponding 10 year ratios are 6.01, 6.99 and 8.17. The current P/AEPS is 7.54 based on a stock price of $20.66 and 2018 AEPS estimate of 2.74. This stock price testing suggests that the stock price is relatively reasonable but above the median

I get a Graham Price of $28.24. The 10 year low, median, and high median Price/Graham Price Ratios are 0.51, 0.65 and 0.77. The current P/GP Ratio is 0.73 based on a stock price of $20.66. 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 1.35. The current P/B Ratio is 1.48 based on Book Value of $1,219M, Book Value per Share of $15.95 and a stock price of $20.66. The current ratio is some 9% 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 1.31%. The current dividend yield is 4.07% based on dividends of $0.84 and a stock price of $20.66. The current dividend yield is some 210% higher historical one. This suggests that the stock price is relatively cheap.

Both the 5 year and 10 year median dividend yields are much higher than the historical one. The 5 year median dividend yield is 3.82% and the 10 year one is 3.81%. The current dividend yield is higher by 6.5% and 6.8%. 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 P/S Ratio is 0.56. The current P/S Ratio is 0.58 based on 2018 Revenue estimate of $3,123 and Revenue per Share of $28.71. The current ratio is some 3.1% above the 10 year ratio. This suggests that the stock price is relatively reasonable but above the median.

What makes results of stock price testing harder to judge is that the company is in the midst of a transition. They were a printing company and now they are into packaging. The 10 year ratios are quite low for any company. The most reasonable P/E Ratios are the historical ones with the others being quite low. A low P/B Ratio is thought to be 1.50 and below.

The dividend yield test says it is cheap, but the historical median dividend yield is much lower than both the 5 and 10 year median dividend yields. You have to wonder how good a test this is. Testing by using the 5 and 10 year dividend yields show that the stock price is reasonable and below the median. All the others say it is reasonable and above the median.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (5) and Hold (2). The consensus would be a Buy. The 12 month stock price consensus is $27.88. This implies a total return of $39.01% with 34.94% from capital gains and 4.07% from dividends based on a current stock price of $20.66.

See what analysts are saying about this stock on Stock Chase. They are transitioning their company and has made a large US acquisition which analysts think will be fine in the end. Victoria Hetherington on Motley Fool thinks this company currently has great value. Sadie Atkinson on Simply Wall Street thinks this stock is selling below its intrinsic value. Sonia Dale on Kentwood Post says that the company as a Value Composite score of 4 and so is undervalued. TC Media Staff on Seaway News introduces its 100% recyclable tea pouches.

Transcontinental Inc is a Canadian media company that publishes, prints, and packages various properties across North America. The company operates over 175 regional newspaper publications throughout Canada, including Les Affaires, Metro, Finance et Investissement, and Investment Executive. The largest source of revenue for the company is its printing and packaging segment, which is one of the largest operators in Canada. Its web site is here Transcontinental Inc.

The last stock I wrote about was about was Canadian Imperial Bank of Commerce (TSX-CM, NYSE-CM) ... learn more. The next stock I will write about will be Sylogist Ltd (TSX-SYZ, OTC-SYZLF) ... learn more on Friday, January 25, 2019 around 5 pm. Tomorrow on my other blog I will write about Dividend Yield and Growth.... learn more on Thursday, January 24, 2019 around 5 pm.

Also, on my book blog I have put a review of the book 21 Lessons for the 21st Century by Yuval Noah Harari. learn more...

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.

Canadian Imperial Bank of Commerce

Sound bite for Twitter and StockTwits is: Dividend Growth Bank. I think that the stock price is reasonable. Dividend growth is currently low, with total increased in dividends for 2018 at just 4.72%. Dividend increases are important as they reflect how fast a company is growing. See my spreadsheet on Canadian Imperial Bank of Commerce.

I do not own this stock of Canadian Imperial Bank of Commerce (TSX-CM, NYSE-CM). This was the only major Canadian Bank I was not following. I think it is about time I did.

When I was updating my spreadsheet, I noticed dividend growth has been in the low range for most of the 30 years I have tracked this stock. Most growth was in the 7% range except for the past 5 and 10 years and then the growth was 6.9% and 4.3% per year. Dividend increases with the 2008 problems was flat for almost 4 years. They have a financial year end in October each year so that the last financial year ended October 31, 2018.

Dividend yields are pretty much in the 4% range. The current dividend yield is 4.96%, with 5, 10 and historical dividend yields at 4.53%, 4.79% and 4.34%. Dividend yields are shown below and they are at the top of the 7% range or into the 8% range. So, dividends are moderate and growth is low to moderate.

The Dividend Payout Ratio for 2018 is 46% with 5 year coverage at 46% also. The DPR for CFPS is 24% with 5 year coverage at 38%. The DPR for CFPS excluding WC is 41% with 5 year coverage at 45%.

The debt ratios are fine. The Long Term Debt/Covering Assets Ratio for 2018 is 0.89 with a 5 year median at 0.90. the only other Ratio that really counts for banks is the Debt Ratio and in 2018 it was 1.06 with 5 year median at 1.05.

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.

I like my stocks to be able to have a total return of at least 8% per year. This bank mostly does this and for the other years, the total return is in the 7% range.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	6.96%	7.19%	2.31%	4.88%
2008	10	4.34%	13.04%	7.12%	5.92%
2003	15	8.16%	7.62%	3.13%	4.48%
1998	20	7.73%	9.67%	5.04%	4.62%
1993	25	8.71%	13.10%	7.53%	5.57%
1988	30	7.73%	12.45%	7.27%	5.18%
1987	31	7.47%	12.07%	7.07%	5.00%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 9.48, 10.08 and 10.67. The corresponding 10 year ratios are 9.38, 10.28 and 11.24. The corresponding historical ratios are 8.72. 9.76 and 11.21. The current P/E Ratio is 8.67 based on a stock price of $109.69 and 2019 EPS Ratio of 12.65. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $144.96. The 10 year low, median, and high median Price/Graham Price Ratios are 0.85, 0.94 and 1.04. The current P/GP Ratio is 0.76 based on a stock price of $109.69. 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 1.92. The current P/B Ratio is 1.49 based on a stock price of $109.69, Book Value of $32,693M, and Book Value per Share of $73.83. The current ratio is some 22.7% below 10 year ratio. This stock price testing suggests that the stock price is relatively cheap.

I get an historical median dividend yield of 4.34%. The current dividend is 4.96% based on dividends of $3.44 and a stock price of $109.69. The current dividend is 14.27% 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 2.52. The current P/S Ratio is 2.59 based on 2019 Revenue estimate of $18,751M, Revenue per Share of $42.34 and a stock price of $109.69. The current ratio is 2.61% above the 10 year median. This stock price testing suggests that the stock price is relatively reasonable and above (just) the median.

Results of stock price testing is that the one I like the best says that the stock price is reasonable and below the median. The P/S Ratio test says it is above the median and the rest say it is cheap. I would suspect that the stock price is reasonable.

When I look at analysts’ recommendations, I find Strong Buy (2), Buy (5), Hold (5) and Underperform (3). The consensus would be a Hold. The 12 month stock price is $127.40. This implies a total return of $21.10 with 16.15% from capital gains and 4.96% from dividends based on a current Price of $109.69.

Steve Reilly on Post Analysts talks about recent analyst ratings on this stock. Gemma Cottrell on Fairfield Current talks about some institutional investing in this bank. Thomas Auclair on Simply Wall Street thinks this bank is undervalued. Amy Legate-Wolfe on Motley Fool says this bank is in a strong position expand. See what analysts are saying about this bank on Stock Chase. The analysts have mixed views. One says it was the worst preforming bank in 2018.

Canadian Imperial Bank of Commerce is Canada's fifth- largest bank, operating three business segments: retail and business banking, wealth management, and capital markets. It serves approximately 11 million personal banking and business customers, primarily in Canada. Its web site is here Canadian Imperial Bank of Commerce.

The last stock I wrote about was about was National Bank of Canada (TSX-NA, OTC-NTIOF) ... learn more. The next stock I will write about will be Transcontinental Inc (TSX-TCL, OTC-TCLAF) ... learn more on Wednesday, January 23, 2019 around 5 pm. Tomorrow on my other blog I will write about Why Low Yield Stocks .... learn more on Tuesday, January 22, 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.

National Bank of Canada

Sound bite for Twitter and StockTwits is: Dividend Growth Bank. Stock price seems reasonable and below the median. So, it is probably a good entry point. There are worries about our housing market so the analysts are rating this a Hold. See my spreadsheet on National Bank of Canada.

I do not own this stock of National Bank of Canada (TSX-NA, OTC-NTIOF). I thought I should follow one of the smaller Canadian Banks. This seems like a good choice. If I was looking for another bank, I would certainly consider this one. The only reason I do not own it is that I have enough bank stock with the 3 banks I own.

When I was updating my spreadsheet, I noticed the dividend growth has been slowing down. I expected the 10 year growth to be slow because banks coming out of the 2008 all stop increasing their dividends for a while. However, this bank has been slowing lately also lately. However, so has the other banks.

As you can see from the chart below, the dividend growth is slow and it is in the low range at present. The dividend yield is moderate still with the 5, 10 and historical rates at 4.17%, 4.12%, and 3.94%. The current yield is 4.34%. So, the dividend yield is higher than usual.

The Dividend Payout Ratio is 40% with 5 year coverage at 45%. The DPR for CFPS for 2018 is 13.71% with 5 year coverage of 15.26%. The DPR for CFPS excluding WC for 2018 is 45.25% and with 5 year coverage at 39%. These last ratios are a bit high.

The Long Term Debt/Covering Assets Ratio for 2018 is 0.75 with 5 year median also at 0.75. The Debt Ratio for this bank is 1.06. A ratio of 1.04 or higher is good for a bank.

The Total Return per year is shown below for years of 5 to 32 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.

The return from 10 years ago is so good because the stock price took a real dive in 2008.

From	Years	Div. Gth.	Tot Ret	Cap Gain	Div.
2013	5	7.65%	10.44%	4.87%	5.58%
2008	10	6.91%	20.52%	13.61%	6.91%
2003	15	10.59%	11.02%	6.57%	4.45%
1998	20	10.60%	12.07%	7.83%	4.23%
1993	25	10.45%	14.54%	9.83%	4.71%
1988	30	7.06%	12.05%	7.89%	4.17%
1986	32	7.39%	10.11%	6.63%	3.48%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 9.63, 10.62 and 12.21. The corresponding 10 year ratios are 9.15, 10.39 and 11.76. The corresponding historical ratios are 8.71, 10.05 and 11.76. The current ratio is 9.52 based on a stock price of $59.88 and 2019 EPS estimate of $6.29. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $69.17. The 10 year low, median, and high median Price/Graham Price Ratios are 0.77, 0.88 and 1.02. The current P/GP Ratio is 0.86 based on a stock price of $59.88. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year median Price/Book Value per Share Ratio of 1.74. The current P/B Ratio is also 1.74 based on Book Value of $11,526, Book Value per Share of $34.40 and a stock price of $59.88. This stock price testing suggests that the stock price is relatively reasonable and at the median.

I get an historical median dividend yield of 3.94%. The durrent dividend yield is 4.34% based on dividends of $2.60 and a stock price of $59.88. The current dividend yield is 10.20% above the historical median 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 2.66. The current P/S Ratio is 2.62 based on 2019 Revenue estimate of $7,667M, Revenue per Share of $22.88 and a stock price of $59.88. The current ratio is 1.73% below the 10 year ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

All the tests are basically saying the same thing, that the stock price testing suggests that the stock price is relatively reasonable and below the median. This shows a good entry point.

When I look at analysts’ recommendations, I find Buy (1), Hold (10), and Underperform (1). The consensus would be a Hold. The 12 month stock price consensus is 66.58. This implies a total return of 15.53% with 11.19% from capital gains and 4.34% from dividends.

Darrell McKinsey on Fairfield Current talks about recent analysts ratings. Paula Sambo on Financial Post says a US Hedge Fund is shorting Canadian banks mainly due to cooling Housing Market . Heidi Stubbs on Simply Wall Street says that this bank is good at forecasting it risks. Joey Frenette on Motley Fool says that the stock is damaged but the bank is pristine. So, it is a good time to buy. See what analysts are saying about this bank on Stock Chase. Ones that do not like it say it is too Canadian-centric.

National Bank of Canada is the sixth- largest Canadian bank. The bank offers integrated financial services, primarily in the province of Quebec as well as the city of Toronto. Operational segments include personal and commercial banking, wealth management, and a financial markets group. Its web site is here National Bank of Canada.

The last stock I wrote about was about was Bank of Nova Scotia (TSX-BNS, NYSE-BNS) ... learn more. The next stock I will write about will be Canadian Imperial Bank of Commerce (TSX-CM, NYSE-CM) ... learn more on Monday, January 21, 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.

Bank of Nova Scotia

Sound bite for Twitter and StockTwits is: Dividend Growth Bank. A number are showing it relatively cheap and the P/S Ratio test and dividend yield test are showing it as reasonable and below the median (by around 15%). So price is cheap or leading towards cheap. See my spreadsheet on Bank of Nova Scotia.

I do not own this stock of Bank of Nova Scotia (TSX-BNS, NYSE-BNS). This is one of the big banks of Canada. All our big banks are dividend growth companies. Besides, my son owns shares in this bank.

When I was updating my spreadsheet, I noticed that last year was not a good year for this stock. The 5 year total return for the year end values was 4.78% with 0.48% from capital gains and 4.30% from dividends. Their financial year is in October each year, so the last financial year end was October 30, 2018.

There was better dividend growth in the past than recently as you can see from the chart below. Currently the dividends are moderate at 4.77%. The 5, 10 and historical dividend yields are also moderate at 4.26%, 4.15% and 4.12%. Dividend growth recently has been low. Dividend growth over the past 5 years was just 6.54% per year. Dividends went up 7.6% this year with the last increase of 4.9% in 2018. They often do two increases a year.

Their Dividend Payout Ratio for EPS for the 2018 financial year 48.09% with 5 year coverage at 47.65%. Their DPR for CFPS for 2018 was 22.60% with 5 year coverage at 30.63%. The important ratio here is the one for EPS.

Their Long Term Debt/Covering Assets Ratio for 2018 was really low at just 0.41. The median ratio for the last 5 years was 0.93. The Debt Ratio was good for 2018 at 1.07. The 5 year median ratio was also 1.07.

The Total Return per year is shown below for years of 5 to 33 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.

As you can see, shareholders have done very well for most years. Problem with the 5 year total return is that the stock price is not much higher than it was 5 years ago. This happens sometimes. Most analysts see the stock heading higher.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	6.54%	4.78%	0.48%	4.30%
2008	10	5.50%	12.79%	7.40%	5.39%
2003	15	9.51%	9.43%	4.96%	4.47%
1998	20	11.09%	11.84%	7.22%	4.62%
1993	25	10.34%	14.17%	9.13%	5.04%
1988	30	9.96%	16.00%	10.24%	5.76%
1985	33	9.38%	14.30%	9.35%	4.95%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 10.14, 11.29 and 12.52. The 10 year corresponding ratios are 10.22, 11.30 and 12.68. The historical corresponding ratios are 7.04, 11.29 and 14.57. The current P/E Ratio is 9.80 based on a current stock price of $71.28 and 2019 EPS estimate of $7.27. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $90.21. The 10 year low, median, and high median Price/Graham Price Ratios are 0.83, 0.93 and 1.02. The current P/GP Ratio is 0.79 based on a stock price of $71.28. 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 1.85. The current P/B Ratio is 1.43 based on Book Value of $64,044, Book Value per Share of $49.75 and a stock price of $71.28. The current P/B Ratio is some 22.34% below the 10 year ratio. This stock price testing suggests that the stock price is relatively cheap.

I get an historical median dividend yield of 4.12. The current dividend yield is 4.77% based on dividends of $3.40 and a stock price of 71.28. The current yield is some 15.77% 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 3.29. The current P/S Ratio is 2.81 based on 2019 Revenue estimate of $31,151M, Revenue per Share of $22.66 and a stock price of $71.28. The current ratio is 14.70% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

The testing is showing that the stock price is on the cheap side. A number are showing it relatively cheap and the P/S Ratio test and dividend yield test are showing it as cheap and below the median (by around 15%). So price is cheap or leading towards cheap.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (7), Hold (4), Underperform (1). The consensus would be a Buy. The 12 month stock price is $84.01. This implies a total return of 22.73% with 17.96% from Capital Gain and 4.77% from dividends.

Paul Bagnell on BNN Bloomberg talks about recent BNS deals. Mary Kom on Fairfield Current talks about recent target prices for this bank. Doug Alexander in a Toronto Star article talks about this bank selling their bank holding in Thailand. Nelson Smith on Motley Fool says that this is his favourite bank. See what analysts are saying about this bank on Stock Chase. Analysts seem to like Canadian Banks. Some think this one is a good buy at present.

The Bank of Nova Scotia is known as Canada's "international bank" and is a global financial services provider. The bank has three business segments: Canadian banking, international banking, and global banking and markets. It is the third- largest bank in Canada. The bank's international operations span numerous countries, and are more concentrated in Central and South America. Its web site is here Bank of Nova Scotia.

The last stock I wrote about was about was Toronto Dominion Bank (TSX-TD, NYSE-TD) ... learn more. The next stock I will write about will be National Bank of Canada (TSX-NA, OTC-NTIOF) ... learn more on Friday, January 18, 2019 around 5 pm. Tomorrow on my other blog I will write about Long Term Returns.... learn more on Thursday, January 15, 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.

Toronto Dominion Bank

Sound bite for Twitter and StockTwits is: Dividend Growth Financial. Stock price testing suggest price is relatively reasonable. This has been a great investment over the years. If you had paid $1,000.40 for shares in 1976, you would current own 1,220 shares worth $84,221.40 and have collected $3,184.20 in dividends so far. See my spreadsheet on Toronto Dominion Bank.

I own this stock of Toronto Dominion Bank (TSX-TD, NYSE-TD). This is one of the big 5 banks of Canada. I think all Canadians should have at least one bank in their portfolio. I have three banks of BMO, RY and TD.

When I was updating my spreadsheet, I noticed that they seemed to have had a good year with revenue up by 7.3% and EPS up by 9.3%. They raised their dividends higher in 2018 than in previous few years. Last dividends increase in 2018 was 11.67%. Increase in dividends in years 2015 was 8.7%, for 2016 was 8% for 2017 was 8.8% and now for 2018 an increase of 11.1%. Financial year end is October 31 for this stock, so last financial year date is October 31, 2018.

Dividend growth is moderate as is the dividend yields. Mostly the increases have been in the 10 to 11% range. The last increase was for 11.67% and it occurred in 2018. The current dividend yield is 3.89%. The 5, 10 and historical median yields are 3.50%, 3.62% and 3.50%. They have a moderate dividend rate and moderate dividend increases.

I believe that they can afford their dividends. The Dividend Payout Ratio for 2018 for EPS is 43% with 5 year coverage at 45%. The DPR for CFPS for 2018 is 31% with 5 year coverage at 29%.

For banks you need to look at Long Term Debt/Coverage Assets Ratio. For TD bank for 2018, this ratio is 0.85. The other debt ratio that is applicable to banks is the Debt Ratio. The current one for this bank is 1.06. This is a good ratio for a bank.

The Total Return per year is shown below for years of 5 to 43 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.

As you can see from the chart below, the total return for most years is quite good. The lowest seems to be the last 5 years at 10.12% per year growth.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	10.01%	10.12%	6.28%	3.84%
2008	10	8.26%	16.85%	12.06%	4.78%
2003	15	10.55%	11.87%	8.08%	3.78%
1998	20	10.89%	12.08%	8.43%	3.65%
1993	25	11.05%	18.72%	10.73%	7.99%
1988	30	10.59%	13.23%	9.51%	3.72%
1983	35	10.21%	14.83%	10.50%	4.33%
1978	40	11.33%	16.61%	11.32%	5.29%
1975	43	11.01%	15.47%	10.88%	4.59%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 11.40, 12.41 and 13.33. The corresponding 10 year ratios are 11.41, 12.52 and 13.58. The corresponding historical ratios are 11.42, 11.55 and 13.92. The current P/E Ratio is 10.16 based on a stock price of $68.87 and 2019 EPS estimate of $6.78. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $78.56. The 10 year low, median, and high median Price/Graham Price Ratios are 0.87, 0.97 and 1.07. The current P/GP Ratio is 0.88 based on a stock price of $68.87. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year median Price/Book Value per Share Ratio of 1.61. The current P/B Ratio is 1.70 based on a stock price of $68.87, Book Value of $79,047M and Book Value per Share of $40.45. The current P/B Ratio is 5.63% above the 10 year median ratio. This stock price testing suggests that the stock price is reasonable but above the median.

I get an historical median dividend yield of 3.50%. The current dividend yield is 3.89% based on dividends of $2.68 and a stock price of $68.87. The current yield is 11.18% above the historical median 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 3.13. The current P/S Ratio is 3.19 based on 2019 Revenue Estimate. The current ratio is 1.89% above the 10 year ratio. This stock price testing suggests that the stock price is relatively reasonable and around the median.

Putting all the testing together it would suggest that the stock price is relatively reasonable. My favourite test using the dividend yield shows that the stock price is below the median.

When I look at analysts’ recommendations, I find Strong Buy (4), Buy (8), Hold (2) and Underperform (1). The consensus would be a Buy. The 12 month stock price consensus is $85.27. This implies a total return of 27.70% with 23.81% from capital gains and 3.89% from dividends.

Doug Alexander on Financial Post says the bank is on a deal-making winning streak. Thomas Auclair of Simply Wall Street talks about the banks P/E Ratio. Joey Frenette on Motley Fool thinks that this bank is selling at a good bargain price. See what analysts are saying about this bank on Stock Chase. Analysts seem to like to this bank.

Toronto-Dominion is one of Canada's two largest banks and operates three business segments: Canadian retail banking, U.S. retail banking, and wholesale banking. The bank's U.S. operations span from Maine to Florida, with a strong presence in the Northeast. It also has a 42% ownership stake in TD Ameritrade, a discount brokerage. Its web site is here Toronto Dominion Bank.

The last stock I wrote about was about was Calian Group Ltd (TSX-CGY, OTC- CLNFF) ... learn more. The next stock I will write about will be Bank of Nova Scotia (TSX-BNS, NYSE-BNS) ... learn more on Wednesday, January 16, 2019 around 5 pm. Tomorrow on my other blog I will write about Choice Properties REIT.... learn more on Tuesday, January 15, 2018 around 5 pm. http://www.spbrunner.blogspot.com/2018/01/bank-of-nova-scotia.html

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.

Calian Group Ltd

Sound bite for Twitter and StockTwits is: Dividend Growth Tech. The stock is a bit pricey, but not overly so. It had a hard time coming out of the last recession, but had some good increase in sales for the 2018 financial year. See my spreadsheet on Calian Group Ltd .

I do not own this stock of Calian Group Ltd (TSX-CGY, OTC-CLNFF). This is an interesting company with a very nice dividend. This stock came up on a Globe Investor site. The Globe Investor Number Cruncher is an investment column about screening for stocks and funds. They did one on companies with little to no debt. I also noted that the Financial Blogger has this stock on his Top Ten Canadian Dividend Stocks list.

When I was updating my spreadsheet, I noticed that there is a lot of general insider selling but not by important insiders like CEO and CFO. Selling is basically insiders not taking up options. They give a lot of options, relatively speaking. The financial year ends in September each year, so the last financial year ended September 30, 2018.

The dividend yields have varied widely from low to good. Currently the yield is moderate at 3.61%. The 5, 10 and historical median dividend yields are good at 4.69%, 5.31% and 4.36%. The dividends have been flat since 2013 and analysts do not see that changing over the next couple of years.

I think there is no problems with dividend coverage. The Dividend Payout Ratio for 2018 financial year is 54% with 5 year coverage at 65%. The DPR for CFPS for 2018 is 34% with 5 year coverage at 40%. The DPR for CFPS has been a little too high in the past but is currently fine.

The debt ratios I follow are shown below. As you can see all the ratios are great. The company has no long term debt. This is a small company and it is in the Tech sector, so their very good debt ratios will see them through any tough times.

Ratio	Curr.	5 Yr. Med
Long Term Debt/Market Cap Ratio	0.00	0.00
Liquidity Ratio	2.32	2.51
Debt Ratio	2.92	3.01
Leverage (Assets/Book Value) Ratio	1.52	1.50
Debt/Equity Ratio	0.52	1.52

The Total Return per year is show below for years of 5 to 25 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.

It has not done that well lately and the dividend growth has declined. The 2008 recovery has been hard on a lot of companies. This company has had a flat dividend since 2013.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	0.00%	12.60%	7.77%	4.83%
2008	10	7.57%	17.96%	10.23%	7.73%
2003	15	13.39%	10.85%	6.10%	4.76%
1998	20		16.75%	11.46%	5.30%
1993	25		8.63%	4.59%	4.03%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 11.54, 13.90 and 16.75. The 10 year corresponding ratios are 2.17. 11.37 and 15.63. The historical ratios are 9.64, 11.38 and 13.41. The current P/E Ratio is 13.20 based on a stock price of $31.01 and 2019 EPS estimate of $2.35. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a Graham Price of $26.06. The 10 year low, median, and high median Price/Graham Price Ratios are 0.97, 1.06 and 1.16. The current P/GP Ratio is 1.19. 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 2.20. The current P/B Ratio is 2.41 based on a Book Value of $99.7M, Book Value per Share of $12.84 and a stock price of $31.01. The current ratio is 10% higher than 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 4.36%. The current dividend yield is 3.61% based on dividends of $1.12 and a stock price of $31.01. The current dividend yield is 17% below the historical 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 is0.64. The current P/S Ratio is 0.70 based on 2019 Revenue estimate of $343M, Revenue per Share of $44.17 and a stock price of $31.01. The current ratio is some 10% higher than 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 showing that the stock price is This stock price testing suggests that the stock price is relatively reasonable but above the median. So, it is a bit pricey, but not overly so.

When I look at analysts’ recommendations, I find only Buy (4) recommendations. The 12 month stock price consensus is $35.50. This implies a total return of 27.77% with 3.61% from dividends and 24.15% from capital gains.

Kevin Ford, CEO of Calian Group Ltd on Ottawa Business Journal talks about the company’s ability to respond to its customers’ needs. Wade Goff on Simply Wall Street says this company has a beta of 1.02 which is surprising for such a small company. Margaret Staats on Enbulletin says that first quarterly EPS is expected to be $0.55. Kris Knutson on Motley Foolthinks this company will provide excellent returns over time. See what analysts are saying about this company on Stock Chase. There are few analysts following this company, but they seem to like this company.

Calian Group Ltd is a Canada-based company. It operates in various business segments that are Systems Engineering, which involves planning, designing, and implementing solutions that meet a customer's specific business and technical needs, in the satellite communications sector; and Business and Technology Services, which involves short and long-term placements of personnel to augment customers' workforces as well as the long-term management of projects, facilities and customer business processes. Its web site is here Calian Group Ltd.

The last stock I wrote about was about was Rogers Sugar Inc (TSX-RSI, OTC-RSGUF) ... learn more. The next stock I will write about will be Toronto Dominion Bank (TSX-TD, NYSE-TD) ... learn more on Monday, January 14, 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.

Rogers Sugar Inc

Sound bite for Twitter and StockTwits is: Dividend Paying Consumers. I am assuming that the dividends will start to increase again sometime in the future. For now, it sees that the stock is selling at a reasonable price. For the last 5 years there has been Net Insider Buying at rates of 0.07% to 0.06% of outstanding shares. This is high as generally it is in the range of 0.01%. See my spreadsheet on Rogers Sugar Inc.

I do not own this stock of Rogers Sugar Inc (TSX-RSI, OTC-RSGUF). This stock was brought to my attention by Dividend Ninja. This company used to be an Income Trust (TSX-RSI.UN) but it has been converted to a corporation. On its change to a corporation, it lowered its dividend.

When I was updating my spreadsheet, I noticed that they have finally gotten their Dividend Payout Ratio for EPS under 100%. For 2018 it was 84% with 5 year coverage at 97%. There is still insider buying. The financial year ends at September 30 each year.

This stock used to be an income trust. Income Trust stocks had much higher dividends that other stocks and they also paid out all they could in dividends. The current dividend yield is very good at 6.57%. When they became a corporation, they decreased their dividends by 30% in 2011 and then kept their dividends flat. Analysts do not see any increase in dividends over the next two years.

Because of past high dividends, the historical median dividend yield is 9.32%. Dividends in the past went as high as 16%. Even if you look at dividends since 2011 it is high at 6.14%. The 5 and 10 year dividend yields are 6.70 and 6.44%.

Problem has been that their earnings were not covering their dividends. EPS has been volatile and they have not made much progress in growing their EPS. When they were an income trust, the rules were different on what the company could afford in divdends. Then dividends (or distributions) were measured against Adjusted Funds from Operations (AFFO). Now the company’s dividends are compared to the EPS to see if they can afford their dividends.

There is no good coverage of dividends by earnings and cash flow. There has been a couple of years plus the financial year of 2018 when the company could cover the dividends with earnings. Analysts expect dividends to be covered by EPS going forward. The dividends are not well covered by CFPS. The DPR for CFPS for 2018 is 41% with 5 year coverage at 46%. Top acceptable coverage is 40%.

Debt Ratios are fine. Long Term Debt/Market Cap Ratio for 2018 is 0.27. The Liquidity Ratio is 1.97 with 5 year median at 1.61. The Debt Ratio is 1.67 with 5 year median at 1.77. Leverage and Debt/Equity Ratios are 2.49 and 1.51 with 5 year medians at 2.19 and 1.19.

The Total Return per year is shown below for years of 5 to 21 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.

As you can see from the table, most of the return is in dividends (distributions). Capital gain is non-existent to very low. The problem with the long term of 20 and 21 years is that the stock price went down after the stock was initially issued. Going forward, I do think that there will continue to be low growth in capital gains, but dividends are going to be lower as company is no longer an income trust.

Years	Div. Gth	Tot Ret	Cap Gain	Div.
5	0.00%	6.84%	0.18%	6.66%
10	-2.32%	13.37%	3.65%	9.72%
15	-1.90%	13.16%	2.79%	10.37%
20	-3.26%	5.11%	-2.03%	7.14%
21		4.42%	-2.42%	6.85%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 13.90, 16.21 and 18.52. The corresponding 10 year ratios are 13.08, 13.84 and 14.67. The corresponding historical ratios are 9.82, 10.73 and 11.89. The current P/E Ratio is 12.18 based on current stock price of $5.48 and 2019 EPS estimate of $0.45. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $5.74. The 10 year low, median, and high median Price/Graham Price Ratios are 0.97, 1.10 and 1.21. The current P/GP Ratio is 0.95 based on a stock price of $5.48. 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 1.85. The current P/B Ratio is 1.68 based on Book Value of $3,445M, Book Value per Share of $3.26 and a stock price of $5.48. The current ratio is 9% below the 10 year 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 9.32%. The 5 and 10 median yields are 6.42% and 6.44%. The median yield since 2011 is 6.14%. The current yield is 6.57% based on dividends of $0.36 and a stock price of $5.48. The current yield is above all the yields except for the historical one. 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 0.83. The current P/S Ratio is 0.72 based on 2019 Revenue estimate of $802M, Revenue per Share of $7.58 and a stock price of $5.48. The current P/S Ratio is some 13% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

For testing this stock, the best one might be the P/S Ratio. In that case, the stock price would be reasonable and below the median. Another good one is the P/B Ratio test and that comes up with the same results. The dividend yield test is not good for old income trust companies nor for companies that do not rise their dividends. The P/E Ratios have gone up over time. A P/E Ratio of 12.18 is a good one, but it does not point to a cheap price for this sort of stock.

When I look at analysts’ recommendations, I find Buy (1) and Hold (4). The consensus would be a Hold. The 12 month consensus stock price is $6.05. This implies a 16.97% total return with 10.40% from capital gains and 6.57% from dividends.

Rogers Sugar Inc is on Small Cap Power’s list of 4 Canadian Dividend Stocks with a Good Mix of Income and Growth. Lisa Matthews on Fairfield Current talks about recent insider buying. says that the Williams Percent Range is -29.61 and stock with this Indicator below -20 says the stock is overbought (too high). Nelson Smith on Motley Fool thinks this is a good boring stock. See what analysts are saying about this stock on Stock Chase. It is not a favourite with analysts. One analyst mentioned that the expansion into Maple Syrup did not go all that well.

Rogers Sugar Inc is a Canada based sugar producing company. The company through its subsidiary is principally engaged in refining, packaging, and marketing of sugar products. Its web site is here Rogers Sugar Inc.

The last stock I wrote about was about was Royal Bank of Canada (TSX-RY, NYSE-RY) ... learn more. The next stock I will write about will be Calian Group Ltd (TSX-CGY, OTC- CLNFF) ... learn more on Friday, January 11, 2018 around 5 pm. Tomorrow on my other blog I will write about Why Buy Food Stocks.... learn more on Thursday, January 10, 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.