Hardwoods Distribution Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Materials stock. Dividends have been volatile in the past and they probably will be again in the future. However, the stock is currently quite cheap. This points to a possible opportune time to buy this stock. See my spreadsheet on Hardwoods Distribution Inc.

I do not own this stock of Hardwoods Distribution Inc (TSX-HDI, OTC-HDIUF). In April 2017, I asked for suggestions on what stocks I should now follow because of a number that I had followed had been bought out. This was one of the suggestions.

When I was updating my spreadsheet, I noticed that the shareholders who bought at the right time have done very well. Shareholders who bought 10 years ago have a total return of 30.85% per year and good increases in dividends lately.

This company used to be an income trust but changed to a corporation in 2011. Dividends started out high as was usual with income trust. Dividends were cut in 2009, but they knew at that time they had to change to a corporation. Dividends were restarted in 2012. Dividends went from a median of 14.21% to one of 1.72% when the change to a corporation was made.

Dividend yields are currently low to moderate with the current dividend yield at 2.69% and 5, 10 and historical yields at 1.36%, 1.46% and 1.90%. The dividend growth is currently good with dividend growth over the past 5 years are 17.12% per year. The last increase occurred in 2018 and it was for 10.3%.

The Dividend Payout Ratios are fine. The DPR for EPS for 2018 is 20% with 5 year coverage at 19%. The DPR for CFPS is $12% with 5 year coverage at 10%.

Debt Ratios are fine, but current ones have turned lower. The Long Term Debt/Market Cap Ratio for 2018 is 0.01, but it rises to 0.34 in 2019. The rise in Long Term Debt is due to accounting changes. The Liquidity Ratios are good with the ratio for 2018 at 2.20 and 5 year median at 2.20 also. The Debt Ratio for 2018 is 2.80 with 5 year median also at 2.80. Leverage and Debt/Equity Ratios for 2018 are good at 1.56 and 0.56 respectively with 5 year ratios at 1.56 and 0.56.

The ratios for the first quarter of 2019 are lower with Liquidity at 1.94 and Debt Ratio at 2.04. These are still good. Leverage and Debt/Equity Ratios for the first quarter of 2019 are still good but higher at 1.96 and 0.96 respectively.

The Total Return per year is shown below for years of 5 to 14 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	17.12%	4.43%	2.18%	2.25%
2008	10	-6.77%	30.85%	27.58%	3.27%
2004	14	-6.20%	2.63%	-0.63%	3.26%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 11.26, 12.94 and 15.38. The corresponding 10 year Ratios are 9.46, 12.26 and 14.68. The corresponding historical ratios are 9.18, 10.78 and 14.21. The current P/E Ratio is 8.57 based on a stock price of $11.91 and 2019 EPS Ratio of $1.39. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $19.99. The 10 year low, median, and high median Price/Graham Price Ratios are 0.63, 0.82 and 1.04. The current P/GP Ratio is 0.60 based on a stock price of $11.91. 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 1.25. The current P/B Ratio is 0.93 based on a Book Value of $275M, Book Value per Share of $12.77 and a stock price of $11.91. The current ratio is 25% 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 1.90%. The current dividend yield is 2.69% based on dividends of $0.32 and a stock price of $11.91. The current dividend is some 41% above the historical dividend yield. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 0.31. The current P/S Ratio is 0.21 based on 2019 Revenue estimate of $1,191M, Revenue per Share of $55.40 and a stock price of $91.11. The current ratio is 31% 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 relatively cheap. Generally, I excluding dividend yield testing on old income trusts, however, this has the same results as the other tests. The P/B Ratio is below 1.00 at 0.93. When a stock sells below the book value, it also denotes a cheap price.

When I look at analysts’ recommendations, I find Strong Buy (1) and Buy (4). The consensus would be a Buy. The 12 month stock price is $17.20. This implies a total return of 47.10% with 44.42% from Capital Gains and 2.69% from dividends based on a current stock price of $11.91.

See what analysts are saying on Stock Chase. The latest analyst says to watch the price. Susan Portelance on Motley Fool in an older report says it is a solid company. A writer on Simply Wall Street talks about this stock’s beta. A writer at Simply Wall Street on Yahoo Financial says it is a stock worth watching.

Hardwoods Distribution Inc is a Canadian company which operates a network of distribution centers in Canada and the US engaged in the wholesale distribution of hardwood lumber and related sheet goods and specialty products. Its web site is here Hardwoods Distribution Inc.

The last stock I wrote about was about was Industrial Alliance Ins. & Fin. Srv. Inc (TSX-IAG, OTC-IDLLF) ... learn more. The next stock I will write about will be Ensign Energy Services (TSX-ESI, OTC-ESVIF) ... learn more on Monday, June 3, 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.

Industrial Alliance Ins. & Fin. Srv. Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Financial. The stock price is cheap to reasonable. Life Insurance companies have had problems due to very low interest rates. They have restarted dividend increases. See my spreadsheet on Industrial Alliance Ins. & Fin. Srv. Inc.

I do not own this stock of Industrial Alliance Ins. & Fin. Srv. Inc (TSX-IAG, OTC-IDLLF). This was a stock shown as a dividend growth stock on the Canadian All Star List. This link to this report is here.

When I was updating my spreadsheet, I noticed that there seems to be a lot of insider selling at 0.08%. The stock really took it on the chin in 2018, but it has recovered somewhat and is up by almost 20% this year. It would seem in the plan of arrangement dated January 1, 2019; the company name has changed to iA Financial Corp except most sites are still show the name as Industrial Alliance Ins. & Fin. Srv. Inc and do not recognize iA Financial.

The dividends are in the moderate range. The current dividend yield is 3.18%, with 5, 10 and historical yields at 2.69%, 2.80% and 2.41%. Dividend increases have varied over time. Very low interest rates were bad for insurance companies. The last dividend increase was in 2018 and it was for 9.2%. The company paid 11.2% more dividends in 2018 than in 2017. See chart below for dividend growth over the past 18 years.

The Dividend Payout Ratios are fine. The DPR for EPS is good at 28.4% for 2018. The 5 year coverage is also good at 28.1%. The DPR for CFPS for 2018 is very good at 9.69% with 5 year coverage higher at 33%.

Debt Ratios are fine. Because this is an insurance company, you want to look at how assets cover their long term liabilities. The Ratio for this company is 0.79 so this is good. The Liquidity Ratio is not important for financials. The Debt Ratio is good for an insurance company at 1.10.

The Total Return per year is shown below for years of 5 to 18 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	10.16%	1.36%	-1.48%	2.84%
2008	10	5.40%	10.11%	6.45%	3.66%
2003	15	10.62%	7.74%	4.69%	3.05%
2000	18	10.31%	7.01%	4.33%	2.68%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 10.21, 11.37 and 12.34. The corresponding 10 year ratios are 9.39, 11.31 and 12.53. The historical ratios are 10.39, 11.64 and 13.41. The current P/E Ratio is 8.68 based on a stock price of $52.15 and 2019 EPS Estimate of $6.01. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $85.20. The 10 year low, median, and high median Price/Graham Price Ratios are 0.62, 0.75 and 0.82. The current P/GP Ratio is 0.61 based on a stock price of $52.15. 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 1.09. The current P/B Ratio is 0.97 based on Book Value of $5,741M, Book Value per Share of $53.68 and a stock price of $52.15. The current ratio is 11% 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 2.41%. The current dividend yield is 3.18% based on dividends of $1.66 and a stock price of $52.15. The current dividend yield is 32% above the historical dividend yield. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 0.53. The current P/S Ratio is 0.45 based on last 12 month Revenue, Revenue per Share of $114.70 and a stock price of $52.15. The current P/S Ratio is 14% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

Results of stock price testing is cheap to reasonable. I see no problems with any of the tests.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (6) and Hold (2). The consensus would be a Buy. The 12 month stock price consensus is $60.78. This implies a total return of 19.73% with 16.55% from capital gains and 3.18% from dividends.

See what analysts think on Stock Chase. They think it is a safe uninteresting bet. Joey Frenette on Motley Fool likes this stock. A Writer on Simply Wall Street looks at this company’s ROE. Marion Hillson on The Enterprise Leader talks about some recent analyst’s reports.

IA Financial Corp, formerly Industrial Alliance Insurance and Financial Services Inc is a life and health insurance company. It offers life and health insurance products, savings and retirement plans, mutual funds, securities, auto and home insurance, mortgages, and others. Its web site is here Industrial Alliance Ins. & Fin. Srv. Inc.

The last stock I wrote about was about was Ritchie Bros Auctioneers Inc (TSX-RBA, NYSE-RBA) ... learn more. The next stock I will write about will be Hardwoods Distribution Inc (TSX-HDI, OTC-HDIUF) ... learn more on Friday, May 31, 2019 around 5 pm. Tomorrow on my other blog I will write about Women and Investing.... learn more on Thursday, May 30, 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.

Ritchie Bros Auctioneers Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. My stock price testing shows the stock price to be reasonable. Shareholders have quite well with this stock. See my spreadsheet on Ritchie Bros Auctioneers Inc.

I do not own this stock of Ritchie Bros Auctioneers Inc (TSX-RBA, NYSE-RBA). This was a stock suggestion I got and also it was a dividend growth stock found in the Canadian All Star List. See the blog here.

When I was updating my spreadsheet, I noticed that they seemed to change the way that they calculated Revenue without any comment or explanation. I like it when there is an explanation of such changed and a note on it. In 2016 and 2017 the Revenue in the annual statements are $566.40M and $610.52M. However, in 2018 they restate the Revenue for these years as $1126.977M and $971.191M.

When they do such things, I prefer a number beside the change and a reference to an explanation. They do the American report of 10-K. These reports are huge. However, large reports do not necessarily give you better information. I am not impressed with the 10-K report. More data is not necessarily good data.

Dividends are paid in US$. The dividend yields have been low to moderate. The current yield is 2.13%, with 5, 10 and historical ones at 2.20% 2.18% and 1.95%. The dividend growth has lately been low with the growth at 6.8% per year over the past 5 years. The last dividend increase occurred in 2018 and it was for 5.9%. See chart below.

The Dividend Payout Ratios are fine. The Dividend Payout Ratio for 2018 for EPS is 63% with 5 year coverage at 67% US$. The DPR for CFPS for 2018 is 36% with 5 year coverage at 43% in US$.

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio is good at 0.20. The Liquidity Ratio is low at 1.37 but if you add in cash flow after dividends it is acceptable at 1.53. The Debt Ratio at 1.69 is fine. The Leverage and Debt/Equity Ratios at 2.47 and 1.46 are also fine.

The Total Return per year is shown below for years of 5 to 20 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.

CDN$	Years	Div Gth	Tot Ret	Cap Gain	Div
2013	5	12.20%	15.55%	12.89%	2.66%
2008	10	8.66%	7.29%	5.45%	1.84%
2003	15	19.67%	11.64%	9.51%	2.14%
1998	20		11.42%	9.81%	1.61%

The Total Return per year is shown below for years of 5 to 20 to the end of 2018 in US$.

US$	Years	Div Gth	Tot Ret	Cap Gain	Div
2013	5	6.75%	9.89%	7.50%	2.39%
2008	10	7.49%	6.42%	4.39%	2.02%
2003	15	13.85%	11.61%	9.15%	2.46%
1998	20		12.46%	10.47%	1.98%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 25.31, 29.30 and 33.30. The corresponding 10 year ratios are 25.35, 29.77 and 34.18. The historical ratios are 25.39, 30.03 and 33.30. The current P/E Ratio is 28.38 in CDN$ based on a stock price of $45.42 and 2018 EPS estimate of $1.60 ($1.19 US$) and a stock price of $45.42. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $19.18 CDN$. The 10 year low, median, and high median Price/Graham Price Ratios are 1.95, 2.35, and 2.71 in CDN$. The current P/GP Ratio is 2.37 based on a stock price of $45.42 CDN$. 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 4.20 US$. The current P/B Ratio is 4.45 US$ based on Book Value of $828M, Book Value per Share of $7.60 and a stock price of $33.81 US$. The current ratio is 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 1.99% CDN$. The current yield is 2.13% based on dividends of $0.97 CDN$ ($0.72 US$). The current yield is 9% above the historical 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 5.52 US$. The current P/S Ratio is 2.88 based on 2019 Revenue estimate of $1,278M, Revenue per Share of $11.73 and a stock price of $33.81 US$. The current P/S 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 probably reasonable and around the median. Since the 2018 statements seems to have changed how they calculate revenues, I would be very leery of relying on the P/S Ratio test. I find nothing to criticize the other tests. They are showing the stock price as reasonable and either above or below the median. Even though the P/E Ratio is high, it is not out of line with the history of the P/E Ratio for this stock.

When I look at analysts’ recommendations, I find Strong Buy (2), Hold (6), Underperform (1) and Sell (1). The consensus would be a Hold, but the recommendations are really all over the place. The 12 months stock price is $31.00US or $41.69 CDN$. This implies a total loss of 6.09% with capital loss at 8.22% and dividends at 2.13%.

See what analysts are saying about on Stock Chase Analysts think it has performed well. Will Ashworth on Motley Fool likes this company and points out it helps people finance purchase of its equipment. A writer on Simply Wall Street thinks the high P/E Ratio says it is overpriced. A writer on Simply Wall Street thinks that mid-caps, like this company, outperform small and large caps.. Martin Roberts on The Enterprise Leader talks about recent institution trades in this company.

British Columbia-based Ritchie Brothers operates the world's leading marketplace for heavy equipment. Started in 1958 as a live auctioneer of industrial equipment, it has greatly expanded its operations to include the sale of construction, agricultural, oilfield, and transportation equipment in a variety of venues. It now operates 40 live auction sites in 13 countries, along with an online marketplace, IronPlanet. Its web site is here Ritchie Bros Auctioneers Inc.

The last stock I wrote about was about was HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF) ... learn more. The next stock I will write about will be Industrial Alliance Ins. & Fin. Srv. Inc (TSX-IAG, OTC-IDLLF) ... learn more on Wednesday, May 29, 2019 around 5 pm. Tomorrow on my other blog I will write about Why I can live off my dividends.... learn more on Tuesday, May 28, 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.

HLS Therapeutics Inc

Sound bite for Twitter and StockTwits is: Dividend Paying Health Care. The stock price is testing as expensive, but I would suspect that it might be more reasonable because of the recent bought deal at $16.00. I moved the coverage of this stock up from November because it is a stock I now own. I do not own much, but it is a interesting stock. See my spreadsheet on HLS Therapeutics Inc.

I own this stock of HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF). I got this stock because it did a reverse takeover of Automodular Corp (TSX-AM, OTC-AMZKF) on March 12, 2018. There was a plan of arrangement whereby Automodular shareholders got 0.165834 HLS common shares and one HLS preferred share. The HLS preferred shares were a form of contingent value right allowing AMD shareholders to have an equity stake linked to the outcome of litigation that had been ongoing for several years between AMD and General Motors.

When I was updating my spreadsheet, I noticed that so far, they have only earnings losses, but they are expected to made a profit this year. Revenue is going up very well with Revenue up 46% per year over the past 3 years and Revenue per Share up $38% per year over the past 3 years. This company reports in US$.

Dividends have just been started at the end of 2018 and 2019 will be the first year of dividends. There has yet been no increase in dividends, but I am hopeful. The current yield is low at just 1.24%.

The Dividend Payout Ratios are too high for EPS. The DPR for EPS for 2018 is not calculable as there was an earnings loss in 2018. The DPR for 2019 is expected to be 400% and dropping to 59% in 2020. The DPR for CFPS is fine with DPR for CFPS for 2018 at 3% and then rising to 15% in 2019

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2018 is 0.33 in US$. The Liquidity Ratio is very low at 0.83 for 2018, but add in cash flow after dividends and it is 1.66 in US$. The Debt Ratio is very good at 2.07 for 2018. The Leverage and Debt/Equity Ratios for 2018 are good at 1.93 and 0.93, respectively in US$.

The Total Return per year is shown below for years of 3 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.

My actual total return is 13.03% per year with 6.93% from capital gains and 6.10% from dividends. I had Automodular Corp stock and this caused the difference between what HLS has done and how well I did. I followed Automodular in to HLS stock and then bought some more HLS shares.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2015	3		-2.54%	-2.65%	0.11%

The 5 year low, median, and high median Price/Earnings per Share Ratios are all negative because this company has not yet had a profit. You cannot do any testing with P/E Ratios. The current P/E Ratio is 321.40 in CDN$. This is very high. It is expected to moderate to 47.26 next year.

The best I can do is get a current Graham Price of $2.95. The 2 year low, median, and high median Price/Graham Price Ratios are 2.86, 3.78 and 4.70. The current P/GP Ratio is 5.44 based on a stock price of $16.07. This stock price testing suggests that the stock price is relatively expensive. This is in CDN$.

I get a 3 year median Price/Book Value per Share Ratio of 1.25. The current P/B Ratio is 2.24 based on Book Value of $157M, Book Value per Share of $5.75 and a stock price of $12.88. The current ratio is some 79% above the 3 year median. This stock price testing suggests that the stock price is relatively expensive. This is in US$. (Note that a P/B Ratio of 1.25 is low, but a ratio of 2.24 is a little high.)

I cannot do an historical median dividend yield test because they just started to pay dividends.

The 3 year median Price/Sales (Revenue) Ratio is 4.12. The current P/S Ratio is 5.82 based on 2019 Revenue estimate of $61M, Revenue per Share of $2.21 and a stock price of $12.88. The current ratio is 41% higher than the 3 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This is in US$.

Results of stock price testing is that the stock is relatively expensive. However, since there has just been a bought deal at $16.00, its current price of $16.07 is probably reasonable. It is interesting that analysts expect the company to start to make a profit in 2019, but they also expect Revenue to decline this year and next.

When I look at analysts’ recommendations, I find Buy (2) recommendations. I found it surprising to have any analysts following this stock. The 12 month stock price is $21.50. This implies a total return of 68.17% with 66.93% from capital gains and 1.24% from dividends.

A writer on Simply Wall Street reviews this stock and its dividend on Yahoo Finance. Ambrose O'Callaghan onMotley Fool likes this stock. He says it has gone up 550% in last year, but I cannot see that in any share price. A write on Simply Wall Street via Yahoo Finance says that Hedge Funds have a substantial investment in this company. A news report on Newswire talks about a bought deal with shares at $16.00. There is an announcement of an Bloom Burton Award for the CEO of this company on Business Wire.

HLS Therapeutics Inc is a specialty pharmaceutical company. It is focused on the acquisition and commercialization of branded pharmaceutical products in the North American markets. The company earns most of its revenue from the United States. Its web site is here HLS Therapeutics Inc.

The last stock I wrote about was about was Reitmans (Canada) Ltd (TSX-RET.A, OTC-RTMAF) ... learn more. The next stock I will write about will be Ritchie Bros Auctioneers Inc (TSX-RBA, NYSE-RBA) ... learn more on Monday, May 27, 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.

Reitmans (Canada) Ltd

Sound bite for Twitter and StockTwits is: Dividend Paying Consumer. Stock price is relatively cheap, but this should come as no surprise. They have great debt ratios. I think I will retain this stock as long as Fairfax Financial Holdings Limited does. They made two purchases, the second one in 2013 but have done nothing since. See my spreadsheet on Reitmans (Canada) Ltd .

I own this stock of Reitmans (Canada) Ltd (TSX-RET.A, OTC-RTMAF). I was following this stock as it was a stock on Mike Higgs' dividend growth stocks list. I bought this company in September 2013. It was in financial difficulties and so was quite cheap. I believed it would recover, but I am beginning to wonder now, but I have not given up hope completely. I note that Fairfax Financial Holdings Limited have not yet sold out their shares.

When I was updating my spreadsheet, I noticed that the numbers are less awful than they were. They managed a positive EPS for their past financial year.

They cut the dividend by 75% in 2014 and it has been flat ever since. This is the reason for the declining dividend growth. Dividend yield is in the 6% range so is good. The current dividend is 6.39%, with 5, 10 and historical yields at 3.69%, 4.83% and 3.16%. So, the yield has been getting higher as the recovery time lengthens.

The Dividend Payout Ratios are too high for EPS. The DPR for EPS for 2018 is 182%. I cannot calculate the 5 year coverage because they paid out more than was earned in the last 5 years. The DPR for CFPS is good at 33% in 2018 with 5 year coverage at 27%.

Debt Ratios are all good. The Long Term Debt/Market Cap is 0.15 and this is good. The Liquidity Ratio is high and therefore good at 2.84. The Debt Ratio is also high and good at 3.22. The Leverage and Debt/Equity Ratios are low and good at 1.45 and 0.45 respectively.

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.

Until this company hit problems in the last recession, it was always touted as a great consumer stock to own. I bought this stock in 2013, hoping for a recovery. It is sort of recovering, but I have lost money on it. My total return is a negative 10.83% per year.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	-21.00%	-6.71%	-10.39%	3.67%
2008	10	-12.02%	-4.13%	-10.30%	6.17%
2003	15	4.07%	6.35%	-3.18%	9.53%
1998	20	5.78%	13.32%	2.48%	10.85%
1993	25	4.60%	8.55%	1.25%	7.30%
1988	30	3.82%	8.49%	1.97%	6.52%
1987	31	3.69%	8.46%	2.06%	6.40%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 22.88, 31.88 and 39.67. The corresponding 10 year ratios are 20.94, 27.06 and 32.03. The corresponding historical ratios are 10.56. 13.13 and 15.61. The current P/E Ratio is 28.45 based on a stock price of $3.13 and latest 12 month EPS of $0.11. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a Graham Price of $3.64. The 10 year low, median, and high median Price/Graham Price Ratios are 0.96, 1.14 and 0.96. The current P/GP Ratio is 0.86 based on a stock price of $3.13. This stock price testing suggests that the stock price is cheap.

I get a 10 year median Price/Book Value per Share Ratio of 1.23. The current P/B Ratio is 0.58 based on a Book Value of $340, Book Value per Share of $5.36 and a stock price of $3.13. The current ratio is 53% below the 10 year median. This stock price testing suggests that the stock price is cheap.

I get an historical median dividend yield of 3.16%. The current dividend yield is 6.39% based on a stock price of $3.13 and Dividends of $0.20. The current yield is 102% above the historical median yield. This stock price testing suggests that the stock price is cheap.

The 10 year median Price/Sales (Revenue) Ratio is 0.48. The current P/S Ratio is 0.21 based on a stock price of $3.13 and last 12 month’s sales of $923M. The current ratio is 55% below the 10 year median ratio. This stock price testing suggests that the stock price is cheap.

Results of stock price testing is that the stock price is cheap. The P/E Ratio are high, but this is because stock price only will fall so far when a company gets into difficulties. This is not a good test. The other tests are fine. The stock price is relatively cheap. However, that does not necessarily make this stock a good buy.

When I look at analysts’ recommendations, I find no analysts recommendations. It would appear that no analysts are following this stock.

See what analysts are saying on Stock Chase. There is not much to report, but one analyst likes it. David Jagielski on Motley Fool thinks it has a good yield was possible upside. A Writer on Simply Wall Street looks at the company’s ownership. An Easton Contributor on Easton Caller says that the Williams Percent Range shows that the stock is neither overbought nor oversold.. Mario Toneguzzi on Retail Insider talks about Canadian Apparel Sales. Says that Reitmans (Canada) Ltd. Is losing market share.

Reitmans (Canada) Ltd is an apparel retailer based in Canada. Its main business is the sale of ladies' specialty apparel to consumers through its retail banners such as including Reitmans, which is a women's apparel specialty chain and fashion brand, Penningtons, RW & CO., which offers fashions for both men and women, Addition Elle, Thyme Maternity, which offers a complete line of nursing fashions and accessories and Hyba. Its web site is here Reitmans (Canada) Ltd.

The last stock I wrote about was about was Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF) ... learn more. The next stock I will write about will be HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF) ... learn more on Friday, May 24, 2019 around 5 pm. Tomorrow on my other blog I will write about Enterprising Investor.... learn more on Thursday, May 23, 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.

Pizza Pizza Royalty Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. The yield is quite high at 8.60%. Stock price looks relatively cheap or close to it. What I do not like is that the accounting is complex and also you have to look at financial statements for two companies. I should also mention that I did my first blog on stocks on May 21, 2008, which is 11 years ago. See my spreadsheet on Pizza Pizza Royalty Corp.

I do not own this stock of Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF). What I do not like is that the accounting is complex. The problem with complex accounting is that it is easier to make a mistake about what the accounting is telling you. Also, it is important that the company paying royalties to Pizza Pizza can afford to pay these royalties.

When I was updating my spreadsheet, I noticed Royalty Income is growing more than twice as fast as the Royalty System Sales over the past 10 years but is closer over the past 5 years. The Revenue has grown at 1.50% over 10 years with Royalty Income growing at 4.76% over the past 10 years. The Revenue has grown at 2.16% over 5 years with Royalty Income growing at 2.19% over the past 5 years.

If you look at Royalty Shares and Operating Income on a per share basis you get something similar, but find that Royalty Shares and Operating Income has not grown over the past 5 years. The Revenue per Share has grown at 0.28% over 10 years with Royalty Income per Share growing at 3.51% past 10 years. The Revenue per Share has gone down by 0.28% over the past 5 years and Royalty Income has gone down by at 0.25% over the past 5 years.

This company used to be an income trust. This is the reason for the dividend cut in 2011 and why the dividend growth is showing as low or non-existent over the past few years. Another problem is that the dividends have not changed since 2017. It is not surprising considering the lack of growth in Royalty Systems Sales.

The yield on this stock has always been high. The current yield is 8.60%, with 5, 10 and historical yields at 5.71%, 6.655 and 7.43%. As with all ex-income trust companies, the yield is currently lower than in the past. The yield on this company topped out at around 17% in the past.

The Dividend Payout Ratios are too high. They can afford to payout all that they received from Pizza Pizza limited. They however, cannot go above 100%. The Dividend Payout Ratio for 2018 for EPS was 101%. The 5 hear coverage is 99%. They should have some safety margins. However, they are totally dependent on PPL for income. It would seem that PPL is paying Pizza Pizza Royalty Corp 96.2% of their income in 2018 with 5 year coverage at 88.2%. This seems high as PPL would need money for reinvestment purposes.

Debt Ratios are awful. The only ones that count are for PPL. I am excluding the Deferred Gain on the sale of the Pizza Pizza Rights and Marks as a liability, but still the Debt Ratio is low at 1.35 and with 5 year median of 1.37.

The Total Return per year is shown below for years of 5 to 13 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	2.33%	-0.31%	-7.62%	7.30%
2008	10	-0.73%	15.79%	3.91%	11.88%
2005	13	0.88%	7.85%	-0.85%	8.70%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 15.83, 17.36 and 19.16. The corresponding 10 year ratios are 14.19, 15.97 and 18.15. The corresponding 10 year ratios are 13.48, 15.35 and 17.22. The current P/E Ratio is 11.31 based on a stock price of $9.95 and 2019 EPS estimate of $0.88. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $12.91. The 10 year low, median, and high median Price/Graham Price Ratios are 0.93, 1.04 and 1.17. The current P/GP Ratio is 0.77 based on a stock price of $9.95. 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 1.46. The current P/ B Ratio is 1.18 based on Book Value of $207M, Book Value per Share of $8.41 and a stock price of $9.95. The current ratio is 19% below the 10 year ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. If the ratio was 20% below the 10 year ratio, the stock would be relatively cheap.

I get an historical median dividend yield of 7.43% and taking into consideration the 25% drop in 2011 because of the change to a corporation, 5.60%. The current yield is 8.60%. This is 16% above the first yield and 54% above the second yield. This stock price testing suggests that the stock price is relatively cheap to relatively reasonable and below the median.

The 10 year median Price/Sales (Revenue) Ratio is 0.54 using Royalty System Sales. The current P/S Ratio is 0.45 based on 2019 Sales estimate of $548M, Sales per Share of $22.26 and a stock price of $9.95. The current ratio is 18% below the 10 year ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

Results of stock price testing is cheap or very close to cheap. Both the P/B Ratio testing and the P/S Ratio testing says that the stock price is relatively reasonable and below the median. However, the testing shows that the stock price is getting very close to cheap.

When I look at analysts’ recommendations, I find one Hold recommendation. The consensus would be a hold. I find it surprising that there are almost no analysts following this stock. The stock price consensus is $11.00. This implies a total return of 19.15% with 10.55% from capital gains and 8.60% from dividends.

See what analysts are saying on Stock Chase. Recent comments have been negative. Demetris Afxentiou on Motley Fool thinks it is a predominate brand and has a juicy yield. A writer on Simply Wall Street thinks the company’s ROCE is low, but normal that its industry. . Ryan Modesto on BNN Business discusses this stock. The company announces first quarterly results for 2019 via Yahoo Finance.

Pizza Pizza Royalty Corp., through its subsidiary, Pizza Pizza Royalty Limited Partnership, owns and franchises quick-service restaurants under the Pizza Pizza and Pizza73 brands. Its web site is here Pizza Pizza Royalty Corp.

The last stock I wrote about was about was Mullen Group Ltd (TSX-MTL, OTC-MLLGF) ... learn more. The next stock I will write about will be Reitmans (Canada) Ltd (TSX-RET.A, OTC-RTMAF) ... learn more on Wednesday, May 22, 2019 around 5 pm. Today, on my other blog I will write about Stocks to Buy.... learn more on Tuesday, May 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.

Mullen Group Ltd

Sound bite for Twitter and StockTwits is: Dividend Paying Industrial. Dividend has certainly been variable. They will probably end as a dividend growth company. They are cheap currently. They have good debt ratios which can see them through rough times. See my spreadsheet on Mullen Group Ltd.

I own this stock of Mullen Group Ltd (TSX-MTL, OTC-MLLGF). I like to look at recommended small cap dividend paying stock to see if they would be a possible good investment now or in the future. The other thing to mention about this stock is that it has converted from an income trust and has decreased it dividends.

When I was updating my spreadsheet, I noticed that the EPS loss in 2018 was caused by a goodwill impairment of $100M. This means that the EPS is not as depressed as it might seem to be.

The company cut dividends in 2009 when it converted from an income trust. The company started to raise dividends again in 2011, but probably raised them too much too soon. They had to cut dividends again in 2016. They raised them again in 2018. As you can see from the chart below, the dividend growth is a mixed record.

The Dividend Payout Ratios are fine. The DPR for 2018 cannot be calculated as the EPS for 2018 was negative. The 5 year coverage comes in very high at 209%. Analysts expect the DPR for EPS for 2019 to be around 107%. The DPR for CFPS for 2018 is better at 31% with 5 year coverage at 32%.

Debt Ratios are good. The Long Term Debt/Market Cap Ratios for 2018 is low and good at 0.38. The Liquidity Ratio for 2018 is good at 1.94. This ratio has always been good with a 5 year median at 2.13. The Debt Ratio is very good at 2.20 with 5 year median at 2.05. The Leverage and Debt/Equity Ratios are also very good at 1.83 and 0.83 respectively with 5 year medians at 1.86 and 0.86.

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.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	-15.55%	-11.81%	-15.53%	3.72%
2008	10	-10.71%	6.09%	-0.44%	6.53%
2003	15	10.30%	7.18%	-0.50%	7.69%
1998	20	8.51%	12.40%	4.15%	8.26%
1997	21		9.34%	2.68%	6.66%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 23.17, 27.50 and 31.83. The corresponding 10 year ratios are 13.46, 15.78 and 18.10. The corresponding historical ratios are 12.04, 15.05 and 18.29. The current P/E Ratio is 17.84 based on a current stock price of $9.99 and 2019 EPS estimate of $0.56. This stock price testing suggests that the stock price is relatively reasonable, but above the median.

I get a Graham Price of $10.37. The 10 year low, median, and high median Price/Graham Price Ratios are 1.06, 1.30 and 1.54. The current P/GP Ratio is 0.96 based on a stock price of $9.99. 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 1.93. The current P/B Ratio is 1.17 based on Book Value of $894.M, Book Value per Share of $8.53 and a stock price of $9.99. The current ratio is some 39% 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 3.99%. The current dividend yield is 6.01% based on dividends of $0.60 and a stock price of $9.99. The current yield is 51% above the historical one. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 1.35. The current P/S Ratio is 0.80 based on 2019 Revenue estimate of $1,307M, Revenue per Share of $12.47 and a stock price of $9.99. The current Ratio is some 40% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

Results of stock price testing is showing up mostly as cheap. The only one that shows differently is the P/E Ratio test, but this is seldom a good test. The stock price has been hammered because it services the oil and gas industries. The stock price will move around but it will not substantially affect the results of the stock price testing over the short term.

When I look at analysts’ recommendations, I find Strong Buy (2), Buy (2), Hold (7) and Underperform (1). The consensus would be a Hold. The 12 month stock price consensus is $13.88. This implies a total return of 44.94%, with 38.94% from capital gains and 6.01% from dividends based on a current stock price of $9.99.

See what analysts are saying on Stock Chase. They like the company, but it has been pulled down with the oil down wave. Amy Legate-Wolfe on Motley Fool likes this stock. A writer on Simply Wall Street talks about ownership. A writer on Simply Wall Street talks about recent insider selling. Kevin Carmichael writes an interesting article on Calgary Herald about this company and its CEO, Murray Mullen.

Mullen Group Ltd supplies trucking and logistics services to the oil and natural gas industry in Canada and the United States. The company comprises two business segments: trucking/logistics and oilfield services. Product and service offerings include a range of truckload and less-than-truckload (relatively small freight) freight services. Its web site is here Mullen Group Ltd.

The last stock I wrote about was about was Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF) ... learn more. The next stock I will write about will be Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF) ... learn more on Tuesday, May 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.

Hammond Power Solutions Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. The stock price is probably cheap. A recently dividend increase is a very good sign. See my spreadsheet on Hammond Power Solutions Inc.

I own this stock of Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF). I bought this stock as my main purchase for the TFSA in 2013 and 2014. I picked Hammond initially in 2013 as my main buy because it has good growth and reasonable dividend. Also, I think that it important to try out newer smaller companies for investment purposes. Companies on the TSX are always changing and it is good to get into new industries and new companies. The problem of this, of course, is you do not always know what industries and companies will be long lasting.

When I was updating my spreadsheet, I noticed that they had an earnings loss because they took a hit or loss from a discontinued business. They also give a EPS based on continuing business and this one is also important.

The dividend yield started off in the low range, but has moved to a moderate range. This is mainly because of stock price dropping. The current dividend yield is 3.57%, the 5 and 9 year median dividend yields are 3.20% and 2.65%. The dividends grew after they were started in 2009, but they had been flat since 2014 to 2018. However, the company raised the dividend in 2019 by 16.7%. They obviously feel that they are going to be doing better in the near future.

The Dividend Payout Ratios are improving. The 2018 DPR is not calculable because of negative earnings. However, the 5 year coverage is 364%. The DPR for CFPS for 2018 is good at 20% with 5 year coverage at 16%.

Debt Ratios are good. The company has no long term debt. The Liquidity Ratio is fine, but I prefer it to be always over 1.50. For 2018, the Liquidity Ratio was 1.47, with 5 year median at 1.51. The Debt Ratios has always been good and the one for 2018 is 2.12 with 5 year median at 2.46. The Leverage and Debt/Equity Ratios have also always been good with the ratios for 2018 at 1.89 and 0.89 respectively and with 5 year medians at 1.64 and 0.64 respectively.

The Total Return per year is shown below for years of 5 to 17 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 have had this stock for just over 6 years and my total return is 1.17% with a capital loss of 1.87% and dividends of 3.04%.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	3.71%	-0.28%	-4.00%	3.72%
2008	10	10.22%	0.68%	-2.44%	3.13%
2003	15		23.71%	18.27%	5.44%
2001	17		15.28%	11.84%	3.43%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 11.63, 15.38 and 19.13. The corresponding 10 year ratios are 11.30, 14.07 and 16.85. The historical ratios are 6.93, 9.10 and 10.73. The current P/E Ratio, using EPS from continuing operations, is 9.69. This is based on last 12 month EPS of $0.81 and a stock price of $7.85. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $12.95. The 10 year low, median, and high median Price/Graham Price Ratios are 0.60, 0.79 and 0.97. The current P/GP Ratio is 0.61 based on a stock price of $7.85. This stock price testing suggests that the stock price is relatively reasonable and below the median. It is almost cheap.

I get a 10 year median Price/Book Value per Share Ratio of 0.90. The current P/B Ratio is 0.85 based on a Book Value if /4107M, Book Value per Share of $9.20 and a stock price of $7.85. The current ratio is 5.4% 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 2.65%. The current dividend yield is 3.57% based on dividends based on dividends of $0.28 and a stock price of $7.85. The current yield is 35% above the historical median. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 0.39. The current P/S Ratio is 0.28 based on last 12 months Revenue of $325.7M, Revenue per Share of $28.12 and a stock price of $7.85. The current ratio is 28% 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 probably cheap. This is showing up the P/S Ratio, the dividend yield, and P/E Ratio testing. Under the P/GP Ratio testing the stock price is close to cheap. It is only showing up as relatively reasonable and below the median under the P/B Ratio test.

When I look at analysts’ recommendations, I find that no analysts are following this stock.

See what analysts are saying on Stock Chase. They have mixed views, but few follow this stock. A writer on Simply Wall Street talks about some recent insider selling. However the CEO and Chairman has recently bought shares. A writer on Simply Wall Street talks about the company’s debt. On SB Wire there is an article about growth in Industrial Transformers. The article mentions this company. Lisa Richards on Driscoll Register says the company is oversold.

Hammond Power Solutions Inc is a Canada-based manufacturer of dry-type magnetics. It is engaged in the design and manufacture of custom electrical engineered magnetics. The firm is also a manufacturer of standard electrical dry-type, cast resin, and liquid-filled transformers. It supports solid industries, such as oil and gas, mining, steel, waste and water treatment, and wind power generation. The company operates in following geographical markets Canada, the United States, Mexico, and India in which it derives majority revenue in the United States and Mexico. Its web site is here Hammond Power Solutions Inc.

The last stock I wrote about was about was Canadian Utilities Ltd (TSX-CU, OTC-CDUAF) ... learn more. The next stock I will write about will be Mullen Group Ltd (TSX-MTL, OTC-MLLGF) ... learn more on Friday, May 17, 2019 around 5 pm. Tomorrow on my other blog I will write about Teaching my Son to Read.... learn more on Thursday, May 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.

Canadian Utilities Ltd

Sound bite for Twitter and StockTwits is: Dividend Growth Utility. My testing shows that the stock price is reasonable and below the median. The stock has not done well lately, but things seem to be picking up in 2018. See my spreadsheet on Canadian Utilities Ltd.

I own this stock of Canadian Utilities Ltd (TSX-CU, OTC-CDUAF). I started to follow this stock in January of 2009 because it was on the Dividend Achievers list, the Dividend Aristocrats list and was also on Mike Higgs’ dividend growth list at that time. The Dividend Aristocrats list is now an index on the TSX. ATCO (TSX-ACO-X) owns 88% of this stock, so you would not buy both these stocks.

When I was updating my spreadsheet, I noticed that the stock has not done well over the past 5 years. It hit highs in 2013 and 2014 which has not be able to get back to. It did well in 2018 and they have been increasing the dividend at a higher rate than in the past until this year.

The dividend yield has varied over the years, but it is in the moderate range. The current dividend yield is 4.62%, with 5, 10 and historical yields at 3.69%, 3.16% and 3.67%. They are rising the dividend in the 10% range from 2014 to 2018, but the most recent dividend rise was for 7.5% and it was in 2019. They tend to raise the dividends at the beginning of each year.

The Dividend Payout Ratios are currently fine. The DPR for EPS for 2018 was 76% with 5 year coverage at 70%. The DPR for CFPS for 2018 was 19% with 5 year coverage also at 19%.

Debt Ratios are fine, but like a lot of utility, they have a lot of debt. The Long Term Debt/Market Cap Ratio for 2018 is too high at 1.15. The main reason for the high ratio is the drop in stock price. The current ratio is lower at 0.97. The Liquidity Ratio is low at 1.15 for 2018. If you add in cash flow after dividends, the ratio becomes 1.66. The Debt Ratio is also lower than what I like at 1.43 with 5 year median better at 1.51. Leverage and Debt/Equity Ratios are high at 3.33 and 2.33 respectively with the 5 year coverage better at 2.92 and 1.92.

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	10.15%	1.29%	-2.57%	3.86%
2008	10	8.99%	8.62%	4.46%	4.16%
2003	15	7.80%	9.42%	5.29%	4.13%
1998	20	6.95%	8.78%	4.91%	3.87%
1993	25	6.14%	11.35%	6.55%	4.79%
1990	28	5.61%	11.88%	6.70%	5.18%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 14.91, 17.34 and 15.56. The corresponding 10 year ratios are 14.35, 16.00 and 17.76. The corresponding historical ratios are 11.08, 14.02 and 15.82. The current P/E Ratio is 16.79 based on a stock price $36.60 and 2019 EPS estimate of $2.18. This stock price testing suggests that the stock price is reasonable but above the median.

I get a Graham Price of $29.64. The 10 year low, median, and high median Price/Graham Price Ratios are 1.13, 1.26 and 1.42. The current P/GP Ratio is 1.23 base on a stock price of $36.60. This stock price testing suggests that the stock price is reasonable and below the median.

I get a 10 year median Price/Book Value per Share Ratio of 2.19. The current P/B Ratio is 2.04 based on a Book Value of $4,892M, Book Value per Share of $17.91 and a stock price of $36.60. The current ratios is 6.8% below the 10 year ratio. This stock price testing suggests that the stock price is reasonable and below the median.

I get an historical median dividend yield of 3.67%. The current dividend yield is 4.62% based on dividends of $1.69 and a stock price of $36.60. The current yield is 26% below the historical yield. This stock price testing suggests that the stock price is reasonable and below the median.

The 10 year median Price/Sales (Revenue) Ratio is 2.66. The current P/S Ratio is 2.43 based on 2019 Revenue estimate of $4,113M, Revenue per Share of $15.06 and a stock price of $36.60. The current ratio is 8.6% below the 10 year ratio. This stock price testing suggests that the stock price is reasonable and below the median.

Results of stock price testing suggests that the stock price is reasonable and below the median. Some of what I have been reading is that the stock price is high, but my testing suggests otherwise. All my test except for the P/E Ratio suggests that the stock price is reasonable and below the median. However, I must admit that the stock price has gone no where lately and my total return over the past 2 years that I have owned this stock is only 2.02%.

When I look at analysts’ recommendations, I find Buy (2) Hold (7). The consensus would be a Hold. The 12 month stock price is $37.88. This implies a total return of 8.12% with 3.50% from capital gains and 4.62% from dividends.

See what analysts are saying on Stock Chase. Mainly they say that the company is interest sensitive. Amy Legate-Wolfe on Motley Fool says that the stock is overpriced, so buy on a dip. A writer on Simply Wall Street says that the company has served its shareholders reasonably well. A writer on Simply Wall Street does not like the fact that dividends are growing but EPS is not. The blogger Passive Canadian Income talks about why he bought some of this stock last year.

Canadian Utilities Ltd, a subsidiary of holding company Atco, offers gas and electricity services. The company's main divisions include electricity (generation, transmission, and distribution), pipelines and liquid (natural gas and water), and Corporate and others. Headquartered in Calgary, Alberta, the firm mainly operates in Canada and Australia, along with some operations in the United States, United Kingdom, and Mexico. Its web site is here Canadian Utilities Ltd.

The last stock I wrote about was about was Ag Growth International (TSX-AFN, OTC-AGGZF) ... learn more. The next stock I will write about will be Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF) ... learn more on Wednesday, May 15, 2019 around 8 am. Tomorrow on my other blog I will write about Buy Backs.... learn more on Tuesday, May 14, 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.

Ag Growth International

Sound bite for Twitter and StockTwits is: Dividend Paying Industrial. The stock price is relatively cheap to reasonable. I doubt there will be any dividend increase until the Dividend Payout Ratios get better, but in the meantime, you can earn an yield of over 4%. I am holding on to this stock. See my spreadsheet on Ag Growth International.

I own this stock of Ag Growth International (TSX-AFN, OTC-AGGZF). This is an income trust that did not cut the dividends. They are paying too high of a dividend compared to earnings, even if you just take into consideration dividends paid in cash. They cannot increase their dividends until the Dividend Payout Ratio gets better. Dividend yield is still quite high at over 4%.

When I was updating my spreadsheet, I noticed that they sales are growing well, but they had a bad earnings year in 2018. The analysts expected $2.90 in EPS but EPS was just $1.56. Analysts expect EPS to be better this year at $3.30. For this company EPS tend to go up and down a lot.

Dividend yields are in the high end of the moderate range and into the good range. The current dividend is 4.41% with 5, 10 and historical yields at 4.83%, $5.69% and 6.40%. This company changed to a corporation in 2009 and since then the median yield has been 5.60%.

This company did not decrease the dividends when it became a corporation. It has not increased the dividends since 2011 because it is still paying out too much in the way of dividends compared to its earnings and cash flow.

The Dividend Payout Ratios are too high. The DPR for EPS for 2018 is 154% and 5 year coverage at 340%. The DPR for CFPS for 2018 is 37% with 5 year coverage at 52%. Some analysts are still looking at FFO for funding and in fact the company says that the dividends are funded from cash form operations. The DPR for FFO for 2018 is 42% with 5 year coverage at 57%.

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio is fine at 0.32. The Liquidity Ratio is good at 1.71 for 2018 with 5 year median at 1.58. The Debt Ratio is fine at 1.54 with 5 year coverage at 1.47. The Leverage and Debt/Equity Ratios are normal at 2.84 and 1.84 respectively and with 5 year median values at 2.45 and 1.45.

The Total Return per year is shown below for years of 5 to 15 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 have done well with this stock. I have had it for 7.5 years and have a total return of 13.04% per year with 7.12% from capital gains and 5.92% from dividends.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	0.00%	6.23%	0.95%	5.28%
2008	10	2.75%	19.34%	10.18%	9.15%
2003	15	8.35%	21.68%	10.69%	10.99%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 22.79, 31.76 and 41.02. The corresponding 10 year ratios are 18.21, 23.29 and 27.78. The corresponding historical ratios are 14.34, 21.29 and 25.65. When a company is going through a difficult time, the P/E Ratios will only adjust so far. This is the reason for the relatively high P/E Ratio over the past 5 years. The current P/E Ratio is 16.50 based on a stock price of $45.46 and 2019 EPS estimate of $3.30. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $40.92. The 10 year low, median, and high median Price/Graham Price Ratios are 1.27, 1.75 and 2.06. The current P/GP Ratio is 1.33 based on a stock price of $54.46. 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 2.58. The current P/B Ratio is 2.41 based on Book Value of $414M, Book Value per Share of $22.55 and a stock price of $54.46. The current ratio is 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 6.40% and a median dividend yield of $5.60% from 2009. The current dividend yield is 4.41% based on a stock price of $54.46 and dividends of $2.40. The current yield is 31% and 21% below the above median yields. This stock price testing suggests that the stock price is relatively expensive.

The 10 year median Price/Sales (Revenue) Ratio is 1.39. The current P/S Ratio is 0.93 based on 2019 Revenue estimate of $1,075M, Revenue per Share of $58.34 and a stock price of $54.46. The current ratio is some 33% 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 relatively cheap to reasonable. The best test is as usual the P/S Ratio test. Revenue counts a lot in the future earnings and cash flow of a stock. The P/B Ratio is a good one and it shows the stock price is reasonable. The Graham Price test does the same. The dividend yield testing is not good as this stock used to be an income trust. Income trust had much higher yields that corporations. The P/E Ratios are all over the place and too high and so that is not a good test.

When I look at analysts’ recommendations, I find Strong Buy (1) and Buy (7). The consensus would be a Buy. The 12 month stock price consensus is $72.63. This implies a total return of 37.77% with 3.36% from capital gains and 4.41% from dividends.

See what analysts are saying on Stock Chase. They are mostly cautious because it is a small cap. Ryan Vanzo on Motley Fool says some good things about this company. A writer in Simply Wall Streetsays the company is highly leverage because total debt exceeds equity. This is not a ratio I look at. Erica Schwartz on Dispatch Tribunal talks about recent analysts rating. Note the $0.27 EPS for the first quarter is the adjusted EPS, that is EPS without special income or charges. Stephen Takacsy on BNN Business discusses the company.

Ag Growth International Inc manufactures portable and stationary grain handling, storage and conditioning equipment, including augers, belt conveyors, grain storage bins, grain handling accessories, grain aeration equipment and grain drying systems. The company operates mainly in Portable handling, permanent handling, storage and conditioning, livestock, and manufacturing sectors. Its web site is here Ag Growth International.

The last stock I wrote about was about was Power Financial Corp (TSX-PWF, OTC-POFNF) ... learn more. The next stock I will write about will be Canadian Utilities Ltd (TSX-CU, OTC-CDUAF) ... learn more on Monday, May 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.

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