Husky Energy Inc

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

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

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

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

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

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

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

The Total Return per year is shown below for years of 5 to 28 to the end of 2018. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See charts below.

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

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

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

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

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

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

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

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

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

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

The last stock I wrote about was about was Maxar Technologies Ltd (TSX-MAXR, NYSE-MAXR) ... learn more. The next stock I will write about will be Goeasy Ltd (TSX-GSY, OTC-EHMEF) ... learn more on June 10, 2019 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

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