I own this stock of Alaris Royalty Corp (TSX-AD, OTC-ALARF). This is a stock that Dividends in Hand Blogger has bought in July 2016. It was also recommended by Acumen Capital report in a report by Brian Pow and Oliver Shao via Investor’s Digest.
When I was updating my spreadsheet, I noticed that insiders are buying. Net Insider Buying is at 0.06% which is relatively high. There is also a big increase in outstanding shares over the past 5 and 10 years with increases of 5% and 19% per year over these periods. Therefore, it is per share growth that point to what real growth has been. For example, Revenue up by 13.68% and 18.06% per year over the past 5 years and 10 years, but Revenue per Share is up by 8.34% and 2.77% over these same time periods.
The dividends yield is good with a current dividend yield at 7.83%. The 5 and 9 year median dividend yields are 6.61% and 6.79%. The dividend growth is low with 5 and 9 year growth at 3.82% and 5.64%. There was no increase in 2017 and only a 1.95% increase in 2018
The Dividend Payout Ratios are currently relatively high. The DPR for 2018 for EPS is 98.33% with 5 year coverage at 112.04%. The 5 year coverage is too high. The DPR for CFPS for 2018 is high also at 74% with 5 year coverage also at 74%. I prefer this to be 40% or less. Dividend increases need better EPS and CFPS growth.
Debt Ratios are good. Long Term Debt/Market Cap Ratio for 2018 is good at 0.37. The Liquidity Ratio is very good at 4.74 for 2018. The Debt Ratio is very good also at 3.49 for 2018. The Leverage and Debt/Equity Ratios are also quite good at 1.40 and 0.40 respectively.
The Total Return per year is shown below for years of 5 to 11 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 stock is up this year by 24%, but that does not help the 5 year total return much as the t year total return has a loss of 4.22% per year to date. I have noticed the same thing with other stocks. I must admit I have not done that well with this stock. I have had it for almost 2 years and my total return is 4.52% with a capital loss of 3.25% and dividends of 7.77%. I do expect to do better in the future.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2013 | 5 | 3.82% | -4.06% | -10.67% | 6.61% |
| 2008 | 10 | 5.64% | 17.44% | 6.56% | 10.88% |
| 2003 | 11 | 13.57% | 4.94% | 8.63% |
The 5 year low, median, and high median Price/Earnings per Share Ratios are 13.05, 17.48 and 21.90. The corresponding 10 year ratios are 12.38, 15.66 and 19.54. The corresponding historical ratios are 11.71, 13.94 and 17.17. The current P/E Ratio is 12.70 based on a stock price of $21.08 and 2019 EPS of $1.66. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a Graham Price of $25.51. The 10 year low, median, and high median Price/Graham Price Ratios are 0.76. 1.01 and 1.27. The current P/GP Ratio is 0.83 based on a stock price of $21.08. 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 1.32. The current P/B Ratio is 1.21 based on Book Value of $636M, Book Value per Share of $17.42 and a stock price of $21.08. The current ratio is some 5.6% below the 10 year 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 6.79%. The current dividend yield is 7.83% based on Dividends of $1.65 and a stock price of $21.08. The current yield is 15% above the historical median. 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 10.81. The current P/S Ratio is 6.75 based on 2019 revenue estimate of $114M, Revenue per Share of $5.12 and a stock price of $21.08. The current ratio is 38% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
Results of stock price testing seems to be that the stock price is reasonable and below the median. This is showing up in most of the testing except for the P/S Ratio which is show the stock as cheap. It would certainly seem that the stock is at a current good price.
When I look at analysts’ recommendations, I find Buy (5) and Hold (4). The consensus would be a Buy. The 12 month stock price is $22.61. This implies a total return of 15.09% with 7.26% from capital gains and 7.83% from dividends. On this sort of stock, you would expect a large portion of the return to be in dividends.
See what analysts are saying about this stock on Stock Chase. Some like this company and some do not. Nelson Smith on Motley Fool talks about the company’s recent problems. A writer on Simply Wall Street says this stock is fairly priced. The company on Global Newswire talk about their fourth quarter results. Amanda Harley on Press Oracle talks about some recent analysts calls.
Alaris Royalty Corp is engaged in investing in operating entities in the form of preferred limited partnership interests, preferred interest in limited liability corporations in the United States, loans receivable or long-term license and royalty arrangements. Its web site is here Alaris Royalty Corp.
The last stock I wrote about was about was Sun Life Financial Inc. (TSX-SLF, NYSE-SLF) ... learn more. The next stock I will write about will be Toromont Industries Ltd. (TSX-TIH, OTC-TMTNF) ... learn more on Friday, April 5, 2019 around 5 pm. Tomorrow on my other blog I will write about Something to Buy April 2019.... learn more on Thursday, April 04, 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.
Thanks for your report on AD. I took a position in it just before the recent stock price drop. Your report, plus a company explanation for the recent drop on Morningstar, has me considering further purchases at the new,lower price
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