Exchange Income Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. The price seems to be reasonable, but shareholders could be affected in the future by convertible debentures and deferred shares. The good total returns in the past are from dividends and dividends as a portion of the total return will decline in the future. See my spreadsheet on Exchange Income Corp.

I do not own this stock of Exchange Income Corp (TSX-EIF, OTC-EIFZF). One of my blogger reader suggested this stock as one to review. There was an interesting article about this stock in the G&M in May 2013. This article suggested that the company had a hefty yield with an acquisition tailwind. This article is available here.

When I was updating my spreadsheet, I noticed my spreadsheet has a lot of green ink and the company has done well for the shareholders. This is another stock that was an income trust in the past and changed to a corporation. They increased their outstanding shares each year except for 2018. The other thing is that outstanding shares have been increasing. They are up by 12 % per year over the past 10 years and 7.6% per year over the past 5 years.

This company did not cut dividends when it became a corporation from an income trust. They have been giving increases over the years and also working to lower their payout Ratios. Their dividend yields are still high but not as high as they were as an income trust. This is what has happened for all income trust. The current dividend yield is 5.68%, with 5, 10 and historical yields 7.02%, 7.30% and 7.43%. The growth dividends have been low. See the chart below.

The Dividend Payout Ratios are too high for EPS. The DPR for EPS for 2018 was 99% with 5 year coverage at 114%. The DPR for CFPS for 2018 was 31% with 5 year coverage at 38%. However, this used to be an income trust and these companies because of tax credits. It has been a bit of hit and miss, but they have been lowering their DPR payout ratios and should be in better shape probably in a couple of years.

Debt Ratios are basically fine. The long Term Debt/Market Cap Ratio is 0.82 in 2018 but with the second quarter of 2019 is 0.60. The Liquidity Ratio is 2.26 for 2018 with 5 year median at 1.93. The Debt Ratio is 1.46 with 5 year median at 1.52. The Leverage and Debt/Equity Ratios are a bit high at 3.17 and 2.17.

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 chart below.

A good portion of the total return in the past has been from dividends. However, corporations have lower yields that income trusts. So the portion the total return in the future from dividends will decline in the future.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	5.23%	12.39%	4.57%	7.82%
2008	10	3.72%	24.96%	12.12%	12.84%
2003	15	10.44%	35.19%	14.62%	20.57%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 12.04, 15.17 and 18.54. The corresponding 10 year ratios are 13.01, 15.80 and 19.77. The corresponding historical ratios are 12.04, 15.17 and 18.25. The current ratio is 14.66 based on a stock price of $38.56 and 2019 EPS estimate of $2.63. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $33.57. The 10 year low, median, and high median Price/Graham Price Ratios are 0.89, 1.15 and 1.39. The current P/GP Ratio is 1.15 based on a stock price of $38.56. This stock price testing suggests that the stock price is relatively reasonable and at the median.

I get a 10 year median Price/Book Value per Share Ratio of 1.69. The current P/B Ratio is 2.02 based on a stock price of $38.56, Book Value per Share of $19.05 and a Book Value of $596M. The current ratio is some 20% above the 10 year ratio. This stock price testing suggests that the stock price is relatively expensive.

I get an historical median dividend yield of 7.43%. The current dividend yield is 5.68% based on dividends of $2.19 and a stock price of $38.56. The current yield is 23% below the historical yield. This stock price testing suggests that the stock price is relatively expensive.

The 10 year median Price/Sales (Revenue) Ratio is 0.91. The current P/S Ratio is 0.92 based on 2019 Revenue estimate of $1,306M, Revenue per Share of $41.71 and a stock price of $38.56. The current ratio is 1% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and at the median.

Results of stock price testing is that the stock price is probably reasonable. A good test is the P/S Ratio test that says it is at the median. It is worrisome that the P/B Ratio test says that the stock price is expensive. The problem is the growth in Convertible Debentures and Deferred Shares (for employees). These two items are taking value away from shareholders. This means that the stock price may not be as reasonable as it appears.

Is it a good company at a reasonable price? This seems like a good company that is providing some good returns to shareholders. However, the shareholders value will probably be affected in the future by Convertible Debentures and Deferred Shares. I think caution is called for. However, generally the stock price seems reasonable.

When I look at analysts’ recommendations, I find Strong Buy (4), Buy (5) and Hold (2). The consensus would be a Buy. The 12 month stock price consensus is $45.82. This implies a total return of 24.51% with 18.83% from capital gains and 5.68% from dividends.

See what analysts are saying on Stock Chase. They think it is a buy. Christopher Liew on Motley Fool talks about the great dividends from this stock. A writer on Simply Wall Street does not like this company because of the high payout ratios, but does not seem to know it used to be an income trust. There is an interesting CBC article of 2017 which talks about what a short seller thought of the company. Jennifer Dowty on the Globe and Mail talks about stock as a TSX Breakout stock that yields 6%.

Exchange Income Corp is Canadian diversified acquisition-oriented corporation focused on opportunities in two sectors, aerospace, aviation services and equipment, and manufacturing. Its web site is here Exchange Income Corp.

The last stock I wrote about was about was Alimentation Couche-Tard Inc (TSX-ATD.B, OTC-ANCUF) ... learn more. The next stock I will write about will be ATCO Ltd (TSX-ACO.X, OTC-ACLLF) ... learn more on Tuesday, September 03, 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.

Alimentation Couche-Tard Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. See my spreadsheet on Alimentation Couche-Tard Inc.

I do not own this stock of Alimentation Couche-Tard Inc (TSX-ATD.B, OTC-ANCUF). In 2004 I bought this stock as it had a good reputation and my spreadsheet showed I should do well with it. I sold the stock in my trading account in 2007 as I was raising mortgage money and this stock had gone down so it was cheap, tax wise, to sell. In 2013, I sold the stock in my Pension account as it had the lowest dividend yield and I had to raise money in this account because of yearly withdrawals.

When I was updating my spreadsheet, I noticed that currently the stock is doing well for its shareholders. My spreadsheet has lots of green ink. This company has been reporting in US$ since 2005, but dividends are paid in CDN$. Also, it has a financial year ending April 30 each year.

Dividends are paid in CDN$ and they were started in 2006. Dividend yields are very low and they have seldom been above 1%. The current dividend 0.61%. The 5, 10 and historical dividend yields are 0.56%, 0.60% and 0.60%. Dividend growth is good, with the increases over the past 5, 10 and 12 years all 15% or over in both CDN$ and US$. See charts below. The last dividend increase was for 25% and it was done in 2019.

The Dividend Payout Ratios are very low and therefore good. The DPR for EPS for 2019 was 10% with 5 year coverage also at 10%. The DPR for CFPS for 2019 was 6% with 5 year coverage also at 6%.

Debt Ratios are fine, but the Low Liquidity Ratio is a vulnerability. The Long Term Debt/Market Cap is low and therefore good at 0.17. The Liquidity Ratio is too low at 0.77. This means that current assets cannot cover current liabilities. If you add in cash flow after dividends, it becomes 1.30. I prefer this to be 1.50 or better. The Debt Ratio is fine at 1.68. The Leverage and Debt/Equity Ratios are also fine at 2.53 and 1.50.

The Total Return per year is shown below for years of 5 to 23 to the end of 2018 CDN$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	28.61%	21.35%	20.59%	0.76%
2008	10	24.72%	31.27%	30.30%	0.97%
2003	15	22.65%	21.37%	20.80%	0.57%
1998	20		25.32%	24.79%	0.54%
1995	23		28.38%	27.82%	0.56%

The Total Return per year is shown below for years of 5 to 25 to the end of April 2019 US$. I only have US$ stock price for the end of April each year.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	23.27%	16.42%	15.81%	1.14%
2008	10	23.02%	34.28%	33.14%	0.61%
2003	15	20.53%	23.03%	22.39%	0.64%
1998	20		26.80%	26.20%	0.60%
1995	23		33.28%	32.57%	0.71%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 15.93, 20.44 and 23.86. the corresponding 10 year ratios are 12.26, 15.89 and 18.94. The corresponding historical ratios are 12.79, 16.79 and 20.45. The current P/E Ratio 18.34 based on a current $81.78 and 2020 EPS estimate of $4.46 ($3.35 US$). This stock price testing suggests that the stock price is relatively reasonable but above the median. This is in CDN$.

I get a Graham Price of $46.52. The 10 year low, median, and high median Price/Graham Price Ratios are 1.14, 1.48 and 1.76. The current P/GP Ratio is 1.76 based on a stock price of $81.78. This stock price testing suggests that the stock price is relatively reasonable but above the median. This is in CDN$.

I get a 10 year median Price/Book Value per Share Ratio of 3.18. The current P/B Ratio is 3.79 based on a stock price of $81.78, Book Value of $12,173M and a Book Value per Share of $21.57. The current ratio is 19% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median. This is in CDN$.

I get an historical median dividend yield of 0.60%. The current dividend yield is 0.61% based on a stock price of $81.78 and dividends of $0.50. The current yield is 1.9% above the historical yield. This stock price testing suggests that the stock price is relatively reasonable but above the median. This is in CDN$.

The 10 year median Price/Sales (Revenue) Ratio is 0.40. The current P/S Ratio is 0.57 based on 2020 Revenue estimate of $81,022M ($60,873M), Revenue per Share of $143.55 and a stock price of $81.78. The current ratio is 41% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This is in CDN$.

Results of stock price testing is that the stock price is reasonable to expensive. You cannot ignore the P/S Ratio testing which says the stock is expensive. Also, for this stock the dividend yield test is a good one and the current yield is basically at the historical median. The other tests show the stock price as reasonable, but above the median.

Is it a good company at a reasonable price? I think this is a good dividend growth company. However, I generally do not buy companies when their dividend yield is under1%. It takes too long to get a decent return on your original purchase price. The yield has been 1% in the past but only around a recession. However, if you are not investing for dividend income, you might consider this stock when the yield is lower than 1%.

When I look at analysts’ recommendations, I find Strong Buy (3), Buy (6), and Hold (2). The consensus would be a Buy. The 12 month stock price is $90.96 CDN$ ($68.34 US$). This implies a total return of 11.84% with 11.23% from capital gains and 0.61% from dividends.

See what analysts are saying on Stock Chase. The analysts like this stock and think it is a long term buy. Kay Ng on Motley Fool thinks this is a great and stable consumer stock. A writer on Simply Wall Street thinks this stock is undervalued and its intrinsic value is $99.54 US$ or $134.05 CDN$. Greg Lindenberg on CSP Daily News talks about the company’s investment in Fire & Flower Holdings Corp which is a cannabis retailer. Breaking News on Global News Alerts says this company is giving off sell signals..

Alimentation Couche-Tard Inc. or simply Couche-Tard is one of the largest company-owned convenience store operators in the world with more than 12,000 stores across Canada, the United States, Europe, Mexico, Japan, China, and Indonesia. Its web site is here Alimentation Couche-Tard Inc.

The last stock I wrote about was about was Chemtrade Logistics Income Fund (TSX-CHE.UN, OTC-CGIFF) ... learn more. The next stock I will write about will be Exchange Income Corp (TSX-EIF, OTC-EIFZF) ... learn more on Friday, August 30, 2019 around 5 pm. Tomorrow on my other blog I will write about Purpose of a Corporation.... learn more on Thursday, August 29, 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.

Chemtrade Logistics Income Fund

Sound bite for Twitter and StockTwits is: Dividend Paying Materials. The stock is certainly cheap, but it is risky. Insiders are buying and their Net Insider Buying is at 0.09% of market cap and this is high. The CEO, CFO and Chairman all increased their holdings in the past year. The low Liquidity Ratio is a vulnerability, especially if we hit a recession. See my spreadsheet on Chemtrade Logistics Income Fund.

I do not own this stock of Chemtrade Logistics Income Fund (TSX-CHE.UN, OTC-CGIFF). I decided to investigate this stock after reading an article in the G&M in February 2012 about investing in small cap stocks that pay dividends. This was one of the stocks mentioned that I had never heard of before.

When I was updating my spreadsheet, I noticed is that this company is an old income trust and it is still having trouble covering their dividends. Also, they had an earnings loss because Cost of Sales and Services and Selling and Administrative Expenses were more than their revenue. Both these costs are higher than last year and grow faster than the Revenue. Buried in these costs is a $90,000 impairment charge.

There is also a lot of insider buying. The insider buying is at 0.09% of market cap which is high. You would expect it to be lower or negative. Insiders are buying at around $10.30. I follow the CEO, CFO, one officer, one director and the Chairman. All the people I am following on this stock bought more shares in the past year.

The current dividend yield is very high currently at 11.82%. This is an old income trust and these companies always had high dividend yields, but it would have been expected to come down a lot by now. The yields did at first, but they are high now due to problems that the company is having. The 5, 10 and historical yields are high but lower than the current yield. These median dividend yields are 6.48%, 7.36% and 8.14%.

The company did raise dividends in the past, but lowered then when the tax rules on income trust companies were changed in 2006. The dividends have been flat ever since. Analysts do not expect the dividends to be cut anymore, but they also do not see any increase in the near future.

The Dividend Payout Ratios are too high. The DPR for EPS is currently not calculable because the EPS is negative. But any time in the past when I could calculate it, it was too high. They have been paying out more than they earn. This was fine for income trusts because they could pay out high rates, but it is not fine for corporations. Old income trust companies should be getting their DPR for EPS under control.

The DPR for CFPS is also too high. The DPR for CFPS for 2018 is 57% with 5 year coverage at 42%. I prefer this to be 40% or less. The DPR for CFPS is expected to rise this year to 61% and then fall to 55% in 2020.

For Debt Ratios, the low Liquidity Ratio is a vulnerability. The long Term Debt/Market Cap Ratio is 0.71. The Liquidity Ratio at 0.82 is low and this means that current assets can not cover current labilities. If you add in cash flow after dividends it is still low, but over 1.00 at just 1.11. The Debt Ratio is fine at 1.55. The Leverage and Debt/Equity Ratios are fine at 2.83 and 1.83 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 chart below.

In the past when the total return has been good, it was because of dividends.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	0.00%	-3.89%	-11.72%	7.83%
2008	10	0.00%	14.85%	1.90%	12.95%
2003	15	-0.63%	5.51%	-3.56%	9.07%
2001	17	5.33%	13.20%	-0.67%	13.87%

The 5 year low, median, and high median Price/Earnings per Share Ratios are all negative at 7.09, 10.32 and 13.55 because of recent earning losses. The corresponding 10 year ratios are positive at 8.05, 10.01 and 11.85. The corresponding historical ratios are also positive at 11.80, 13.54 and 14.88. The current P/E Ratio is negative at 13.01 based on 2019 EPS loss of $0.78 and a stock price of $10.15. The P/E Ratio for 2020 is positive at 78.08 based on EPS of $0.13 and a stock price of $10.15. This all suggests that that the stock price is relatively expensive.

I get a Graham Price of $5.16. The 10 year low, median, and high median Price/Graham Price Ratios are 1.35, 1.52 and 1.68. The current P/GP Ratio is 1.97 based on a stock price of $10.15. 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 1.57. The current P/B Ratio is 1.12 based on Book Value of $842M, Book Value per Share of $9.10 and a stock price of $10.15. The current ratio is low and is lower than the 10 year median by 29%. This stock price testing suggests that the stock price is relatively cheap.

I get an historical median dividend yield of 8.14%. The current dividend yield is 11.82% based on dividends of $1.20 and a stock price of $10.15. The current dividend is some 45% above the historical median yield. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 0.87. The current P/S Ratio is 0.60 based on 2019 Revenue estimate of $1,572M, Revenue per Share of $16.98 and a stock price of $10.15. 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 probably cheap. The best test is as usual the P/S Ratio which is showing as cheap. The P/B Ratio is also a good one and this is showing the stock price as cheap. Also, a P/B Ratio of 1.12 is a very low one. Generally, the dividend yield test for old income trusts tend not to be good tests.

Is it a good company at a reasonable price? This company has serious problems and therefore would be a risky investment. Some think that it will recover and be a good investment for patient investors. This maybe true, but it is a risk.

When I look at analysts’ recommendations, I find Buy (4) and Hold (5). The consensus would be a Buy. The 12 month stock price is $11.83. This implies a total return of 28.37% with 16.55% from capital gains and 11.82% from dividends.

See what analysts are saying on Stock Chase. Here some are worried about the dividend and the effects of a recession on this company. Ryan Vanzo on Motley Fool thinks that this company will provide a great permanent income stream. A Writer on Simply Wall Street likes the income stream and growth in income, but says it is of higher risk. The company reports on their second quarter of 2019 on Business Newswire. The WS News Team on WS News Publisher have a positive slant on this stock.

Chemtrade Logistics Income Fund provides industrial chemicals and services to customers in North America and around the world. The company organized into four main operating segments: Sulphur Products and Performance Chemicals (SPPC), Water Solutions and Specialty Chemicals (WSSC), Electrochemicals, and Corporate. Its web site is here Chemtrade Logistics Income Fund.

The last stock I wrote about was about was Badger Daylighting Ltd (TSX-BAD, OTC-BADFF) ... learn more. The next stock I will write about will be Alimentation Couche-Tard Inc (TSX-ATD.B, OTC-ANCUF) ... learn more on Wednesday, August 28, 2019 around 5 pm. Tomorrow on my other blog I will write about TC Energy.... learn more on Tuesday, August 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.

Badger Daylighting Ltd

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. This is a good company with good debt ratios and increasing dividends. However, it is on the expensive side at present. See my spreadsheet on Badger Daylighting Ltd.

I do not own this stock of Badger Daylighting Ltd (TSX-BAD, OTC-BADFF). I started to follow this stock after reading a couple of articles in February 2012 in the G&M that talked about the company. The first article looked at what the pros who manage small-cap funds are buying. Badger was one of 10 stocks mentioned and it looked like an interesting stock. It is a dividend paying small cap. The second article looked at why stocks might appeal to a conservative investor looking for income.

When I was updating my spreadsheet, I noticed that most values were in green expect for the growth in stock price over the past 5 years. See chart below. However, the stock price has recovered and if you look at the 5 year total return to date, it is 10.75% with 9.35% from capital gains and 1.39% from dividends.

Dividend yields are low (under 2%) to moderate (2% to 4% ranges). The current dividend is low at just 1.28%. The 5 and 10 year median dividend yields are also low at 1.45% and 1.83%. However, the historical median dividend is much higher at 4.18%. Until 2012 the dividend yield was moderate but since then it has been low. The stock used to be an income trust and that is why the dividend yield in the past was higher.

The dividend growth has varied a lot over time. Dividends were cut in 2011 because of the change in the company to a corporation. They were flat for a couple of years and then increases began again. The last increase was for 5.6% and it was in 2019. In 2018 the dividend increase was very good at 18.4%.

The Dividend Payout Ratios are good The DPR for EPS for 2018 was 28% with 5 year coverage at 30%. The DPR for CFPS for 2018 was 12% with 5 year coverage at 13%.

Debt Ratios are good to very good. The Long Term Debt/Market Cap Ratio for 2018 was 0.09. The Liquidity Ratio for 2018 is 2.76 with 5 year median at 3.08. The Debt Ratio for 2018 is 2.54 with 5 year median also at 2.54. The Leverage and Debt/Equity Ratios for 2018 are 1.65 and 0.65 with 5 year median at 1.78 to 0.78.

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 chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	7.30%	3.91%	2.56%	1.35%
2008	10	2.00%	23.16%	19.38%	3.77%
2003	15	7.68%	28.04%	20.47%	7.56%
1998	20		11.87%	9.95%	1.92%
1997	21		12.34%	10.45%	1.89%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 17.31, 23.06 and 28.78. The corresponding 10 year ratios are 10.86, 15.82 and 19.23. The corresponding historical ratios are 9.22, 11.27 and 14.12. The current P/E Ratio is 24.82, based on a stock price of $44.42 and 2019 EPS estimate of $1.79. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $19.52. The 10 year low, median, and high median Price/Graham Price Ratios are 1.04, 1.47 and 1.79. The current P/GP Ratio is 2.28 based on a stock price of $44.42. 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 3.05. The current P/B Ratio is 4.70 based on a Book Value of $338M, Book Value per Share of $9.46 and a stock price of $44.42. The current ratio is 54% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I get an historical median dividend yield of 4.18%. The current dividend yield is 1.28% based on dividends of $0.57 and a stock price of $44.42. The current yield is 69% below the historical median yield. This stock price testing suggests that the stock price is relatively expensive.

The 10 year median Price/Sales (Revenue) Ratio is 1.91. The current P/S Ratio is 2.31 based on 2019 Revenue estimate of $688M, Revenue per Share of $19.25 and a stock price of $44.42. The current ratio is 21% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

Results of stock price testing is that the stock price is? Since this stock used to be an income trust, the dividend yield test is probably not a good one. The best would be the P/S Ratio test and this is showing the stock as relatively expensive, but just in that range. The stock would be considered expensive if the current ratio were 20% above the 10 year median. However, the stock is still in the expensive range.

Is it a good company at a reasonable price? I think that the company is a good one for dividend investing. I do wonder about the price. For the 5 years to the end of 2018 with 3.91% total return, the company started at a P/E Ratio of 26.07. The total return to date of 10.75% started with a P/E Ratio of 18.05. The current P/E Ratio at 24.82 is between these tow ratios but is closer to the ratio of 26.07.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (4) and Hold (1). The consensus would be a Buy. The 12 month stock price consensus is $55.36. This implies a total return of 25.91% with 24.63% from capital gains and 1.28% from dividends.

See what analysts are saying on Stock Chase. They like this stock. Victoria Hetherington on Motley Fool thinks that buying this stock will reduce the risk of your portfolio. A writer on Simply Wall Street says the company has a flawless balance sheet with reasonable growth potential. A writer on Simply Wall Street says the company has a better ROCE than its industry’s average. The company announces its second quarterly results on Global Newswire.

Badger Daylighting is a Canada-based company that provides nondestructive hydrovac excavation services based on its core technology, the Badger Hydrovac System. The Badger Hydrovac System is an excavation unit that is used primarily for digging in areas with buried pipes and cables. Through its hydrovac vacuum truck fleet, the company provides excavation services to its customers across the United States and Canada. Its web site is here Badger Daylighting Ltd.

The last stock I wrote about was about was Andrew Peller Ltd (TSX-ADW.A, OTC-ADWPF) ... learn more. The next stock I will write about will be Chemtrade Logistics Income Fund (TSX-CHE.UN, OTC-CGIFF) ... learn more on Monday, August 26, 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.

Andrew Peller Ltd

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. It seems to be on a track to be a good dividend growth company. However, at present it is relatively expensive. Analysts are taking notice of this company and this is a good sign. See my spreadsheet on Andrew Peller Ltd.

I do not own this stock of Andrew Peller Ltd (TSX-ADW.A, OTC-ADWPF). This stock was on Mike Higgs' dividend growth stock list. I owned this stock as Andres Wines Ltd between 1996 and 2000. Yes, it is a dividend growth company, although it does not consistently raise dividends. Shareholders have done fine over time.

When I was updating my spreadsheet, I noticed this company has turned itself into a dividend growth stock and shareholders have done very well since around 2012. Last year analysts started to give estimates for this company which had not been done before. This is a good sign. The financial year for this company ends at the end of March each year so the last date was March 31, 2019.

Talk about dividends yields and growth. Dividends were flat until 2006 when they began to be increased. Since then growth has been uneven but mostly overall low. The last dividend increase was moderate at 13.9% and it occurred this year.

The dividend yield is low (below 2%) to moderate (2% to 4% range). The current dividend yield is low at 1.43%. The 5, 10 and historical yields are low to moderate at 1.50%, 2.89% and 3.72% respectively.

The Dividend Payout Ratios are good. The DPR for EPS for 2019 is 39% with 5 year coverage at 30%. The DPR for CFPS for 2019 is 17% with 5 year coverage at 14%.

Debt Ratios are good. The Long Term Debt/Market Cap for 2019 is 0.18. The Liquidity Ratio for 2019 is 1.98 with 5 year median at 1.96. The Debt Ratio for 2019 is 2.01 with 5 year median also at 2.01. The Leverage and Debt/Equity Ratios for 2019 are 1.99 and 0.99 with 5 year medians at 2.13 and 1.13.

The Total Return per year is shown below for years of 5 to 34 to the end of 2018. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	8.86%	26.49%	24.18%	2.31%
2008	10	6.09%	21.74%	18.94%	2.80%
2003	15	7.04%	14.84%	12.52%	2.32%
1998	20	5.23%	12.31%	10.10%	2.22%
1993	25	4.48%	12.45%	9.76%	2.69%
1988	30	3.72%	12.71%	8.00%	4.71%
1984	34	3.60%	10.65%	7.19%	3.45%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 13.41, 16.62 and 21.34. The corresponding 10 year ratios are 11.21, 12.89 and 14.30. The corresponding historical ratios are 11.04, 12.95 and 14.42. The current P/E Ratio is 21.34 based on a stock price of $14.30 and 2020 EPS estimate of $0.67. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $9.07. The 10 year low, median, and high median Price/Graham Price Ratios are 0.79, 0.89 and 0.99. The current P/GP Ratio is 1.58 based on a stock price of $14.30. 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 1.38. The current P/B Ratio is 2.62 based a Book Value of $243M, Book Value per Share of $5.46 and a stock price of $14.30. The current ratio is 90% higher than the 10 year ratio. This stock price testing suggests that the stock price is relatively expensive.

I get an historical median dividend yield of 3.72%. The current dividend yield is 1.43% based on dividends of $0.205 and a stock price of $14.30. The current yield is 61% below the historical dividend yield. This stock price testing suggests that the stock price is relatively expensive.

The 10 year median Price/Sales (Revenue) Ratio is 064. The current P/S Ratio is 1.60 based on a stock price of $14.30, 2020 Revenue estimate of $394M, and Revenue per Share of 8.92. The current ratio is 149% above the 10 year ratio. This stock price testing suggests that the stock price is relatively expensive.

Results of stock price testing is that the stock price is that the stock price is relatively expensive All my testing is showing that the current stock price is relatively expensive without exception. I have nothing to criticize any of these tests.

Is it a good company at a reasonable price? This company has certainly done quite well recently and investors seem to be excited about it. I think it will have a great future. However, at present it does seem to be expensive. The start P/E Ratios that produced good returns over the past 5 and 10 years were at 13.77 and 9.29. It would stand to reason you will not make the same returns starting at the current P/E Ratio of 21.34.

When I look at analysts’ recommendations, I find Strong Buy (2) and Buy (1). The consensus would be a Strong Buy. The 12 months stock price is $17.17. This implies a total return of 21.50% with 20.07% from capital gains and 1.43% from dividends.

See what analysts are saying on Stock Chase. The company is not well followed, but it is liked. Ryan Vanzo on Motley Fool gave this as one of three Canadian small caps to buy. A writer on Simply Wall Street says that this company can adequately cover their dividends with earnings.. A writer on Simply Wall Street looks at this company’s debt. The assessment is that debt fine now but could possible cause a problem in the future. The company reports a good first quarter on Globe Newswire.

Andrew Peller Ltd is a wine producing company. It is engaged in the production and marketing of wine and spirit products in Canada. Some of the company's brands are Peller Estates, Trius Winery, Thirty Bench, Wayne Gretzky, Sandhill, Red Rooster, Calona Vineyards, and others. Its web site is here Andrew Peller Ltd.

The last stock I wrote about was about was Superior Plus Corp (TSX-SPB, OTC-SUUIF) ... learn more. The next stock I will write about will be Badger Daylighting Ltd (TSX-BAD, OTC-BADFF) ... learn more on Friday, August 23, 2019 around 5 pm. Today on my other blog I will write about Algonquin Power …. learn more on Thursday, August 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.

Superior Plus Corp

Sound bite for Twitter and StockTwits is: Dividend Paying Industrial. It is probably not at a good enough price is buy at present. If you are interested, it might be wise to wait to see how the company does first before buying. It was an income trust and this is not the only old income trust company to have problems going to a corporation. As I have said, this company shows why it is a good idea to buy companies that pay dividends as it is harder to lose money on such company. The debt ratios give it some vulnerability. See my spreadsheet on Superior Plus Corp.

I do not own this stock of Superior Plus Corp (TSX-SPB, OTC-SUUIF). I started to follow this stock as it was an income trust company that was talked about in the Money Reporter from MPL Communications. This company changed to a corporation from Unit Trust (TSX-SPF.UN) in 2009.

When I was updating my spreadsheet, I noticed the revenue has gone up in the last two years, but they have had earnings losses over these two years. This stock also shows why you buy dividend paying stock. Shareholders have not lost money and have had some good years because of dividends.

This probably cannot be called a dividend growth company as it has decreased the dividends as well as rise them. You can see from the chart below that dividends have not been growing. Since 2016 the dividends have been flat. However, they might again become a dividend growth company in the future.

Dividends have been in the good range (over 5%). The current dividend yield is 6.04%. The 5, 10 and historical dividend yields are 6.00%, 6.51% and 9.32%. Expect that the yield will be lower in the future as this company was an income trust and it now a corporation. Income Trust companies always have higher yields than corporations.

The Dividend Payout Ratios are too high for EPS, but analysts think that they will get this under control in the near future. The DPR for EPS is not calculable for 2018 because the company had an earnings loss. The 5 year coverage is too high at 159%. The DPR for EPS is expected to be around 83% next year. The DPR for CFPS for 2018 was fine at 38% with 5 year coverage also at 38%.

Debt Ratios are not great and a vulnerability. The Long Term Debt/Market Cap Ratio for 2018 was 1.08. However, this is because this company, along with the whole stock market when down at the end of last year. The current ratio is better at 0.75. The Liquidity Ratio is low at 1.12 and not much better when you added in cash flow after dividend when it reaches 1.36. I prefer it at 1.50 or higher. The Debt Ratio is also low at 1.43 where I like it at 1.50 or higher also. The Leverage and Debt/Equity Ratios are high at 3.35 and 2.35.

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 chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	3.71%	1.45%	-4.76%	6.20%
2008	10	-7.79%	8.26%	-1.22%	9.47%
2003	15	-7.40%	1.29%	-6.29%	7.58%
1998	20	-2.72%	10.17%	-2.15%	12.32%
1996	22	-1.48%	10.77%	-1.57%	12.34%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 4.24, 5.34 and 6.43. The corresponding 10 year ratios are 5.71, 7.59 and 9.48. The historical corresponding ratios are 12.98, 15.73 and 19.53. The current P/E Ratio is 13.26 based on a stock price of $11.93 and 2019 EPS estimate of $0.90. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $11.54. The 10 year low, median, and high median Price/Graham Price Ratios are 1.21, 1.58 and 1.90. The current P/GP Ratio is 1.32 based on a stock price of $11.93. 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 2.40. The current P/B Ratio is 1.75 based on a Book Value of $1189M, Book Value per Share of $6.80 and a stock price of $11.93. The current ratio is 27% 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 9.32%. The current dividend yield is 6.04% based on dividends of $0.72 and a stock price of $11.93. The current yield is 35% below the historical yield. This stock price testing suggests that the stock price is relatively expensive.

The 10 year median Price/Sales (Revenue) Ratio is 0.47. The current P/S Ratio is 0.71 based on 2019 Revenue estimate of $3,045M, Revenue per Share of $17.41 and a stock price of $11.93. The current ratio is 51% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

Results of stock price testing is that the stock price is probably relatively expensive. In actual price, the stock price is lower than any other year except for 2011. However, a number of good tests is showing it as relatively expensive. One is the P/S Ratio test which you would be wise not to ignore. The dividend yield test show this also. That is because the dividends paid are relatively low to past history.

Shareholders in the past have made most of their money from dividends and very little from capital gains. I do not see that changing much in the future, so returns will probably be lower in the future. The reason the stock showed expensive on the P/E Ratio test is because there has been lots of years with earnings losses. A P/E Ratio of 13.26 is not a high one, but for this sort of company it is not at a good buy place either.

Is it a good company at a reasonable price? This company shows why you should buy dividend paying stock because even though there have been little capital gains, shareholders have made money in dividends. With the company’s past history, I cannot see it making good capital gains. It might go back up into the $14.00 range, but it is hard to imagine good capital gains in the future. It is not a company that I would buy at present.

When I look at analysts’ recommendations, I find Strong Buy, (5), Buy (5) and Hold (2). The consensus would be a Strong Buy. The 12 month stock price consensus is $14.77. This implies a total return of 29.84% with 23.81% from capital gain and 6.04% from dividends.

See what analysts are saying at Stock Chase. They have mixed views on this company. Ryan Vanzo on Motley Fool thinks you should buy this for the dividend. A writer on Simply Wall Street talks about who owns this company shares. A writer on Simply Wall Street thinks that the company’s coverage of its interest payments is getting low at 2.5 times. The company talks about their second quarterly results on Business Wire.

Superior Plus Corporation is a Canadian-based company that engages in the energy distribution, specialty, and chemicals business. Energy Distribution operating segment provides distribution, wholesale procurement and related services in relation to propane, heating oil and other refined fuels. Its web site is here Superior Plus Corp.

The last stock I wrote about was about was Evertz Technologies (TSX-ET, OTC-EVTZF) ... learn more. The next stock I will write about will be Andrew Peller Ltd (TSX-ADW.A, OTC-ADWPF) ... learn more on Thursday, August 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.

Evertz Technologies

Sound bite for Twitter and StockTwits is: Dividend Growth Tech. The stock price is probably reasonable, but maybe on the high side of reasonable. They have very good debt ratios. Insider own a lot of shares. Total return is rather low for a Tech company. See my spreadsheet on Evertz Technologies.

I own this stock of Evertz Technologies (TSX-ET, OTC-EVTZF). I got the idea to investigate this stock from a G&M Article. It looked like something I might want to try out. This stock came up in a stock screen filter article that was looking for reliable dividend payers. That is companies that have reliable profits big enough to comfortably cover their dividend payments. This stock has a financial year ending April 30 each year.

When I was updating my spreadsheet, I noticed that they debt ratios are very good. This allows them to survived the hard times. Their Liquidity Ratio is 3.55 with 5 year median of 4.16. Their Debt Ratio is 4.20 with 5 year median of 4.69. However, they have not raised their dividend since 2016, but did give a good special dividend in 2017.

The dividend yield is in the moderate range (2 to 4% ranges). The current dividend is 3.89%, with 5, 10 and historical median yields at 4.40%, 4.02% and 3.99%. The company did dividend increases until 2017 when the dividend went flat.

The Dividend Payout Ratios are currently too high and that is probably why dividends have been flat. I expect that they will improve and increase will be made in the future. The DPR for 2019 for EPS was 71% with 5 year coverage at 105%. The DPR is expected to be a bit lower in 2020 at 69%. The DPR for CFPS for 2019 was 51% with 5 year coverage at 71%.

Debt Ratios are very good. The Long Term Debt/Market Cap Ratio is 0.00 for 2019. The Liquidity Ratio is 3.55 for 2019 with 5 year median at 4.16. The Debt Ratio for 2019 was 4.20 with 5 year median at 4.69. The Leverage and Debt/Equity Ratios for 2019 was 1.31 and 0.31 respectively with 5 year median at 1.27 and 0.27 respectively.

The Total Return per year is shown below for years of 5 to 12 to the end of 2018. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	2.38%	6.96%	1.03%	5.93%
2008	10	9.52%	7.08%	1.65%	5.43%
2005	12	12.35%	6.12%	1.46%	4.66%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 16.10, 17.77, and 19.45. The corresponding 10 year ratios are 14.76, 17.72 and 19.96. The corresponding historical ratios are 14.51, 17.72 and 19.84. The current P/E Ratio is 17.80 based on a stock price of $18.51 and a 2020 EPS estimate of $1.04. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a Graham Price of $10.39. The 10 year low, median, and high median Price/Graham Price Ratios are 1.41, 1.67 and 1.93. The current P/GP Ratio is 1.78 based on a stock price of $18.51. 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 3.54. The current P/B Ratio is 4.01 based on a Book Value of $353M, Book Value per Share of $4.61 and a stock price of $18.51. The current ratio is 13% above the 10 year median. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get an historical median dividend yield of 3.99%. The current dividend yield is 3.89% based on dividends of $0.72 and a stock price of $18.51. The current dividend is 2.5% below the historical dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.

The 10 year median Price/Sales (Revenue) Ratio is 3.45. The current P/S Ratio is 3.03 based on 2020 Revenue estimate of $467M, Revenue per Share of $6.10 and a stock price of $18.51. The current ratio is 12% 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 that the stock price is probably reasonable. The P/S Ratio cannot be ignored and it is the only different test results of reasonable and below the median. The rest of the testing show results of reasonable but above the median.

Is it a good company at a reasonable price? I own this stock and I think that it is a good company and I will continue to hold my shares. However, it is less than 1% of my portfolio. The current price would seem to be reasonable.

When I look at analysts’ recommendations, I find Strong Buy (1) and Buy (2). The consensus would be a Strong Buy. The 12 month stock price consensus is $19.67. This would imply a total return of 10.16% with 6.27% from capital gains and 3.89% from dividends. For a tech company with a Buy recommendation, you would expect a higher 12 month price consensus.

See what analysts are saying on Stock Chase. Mostly they like this company. Brian Paradza Motley Fool reviewed this company and liked it. A writer on Simply Wall Street thinks that the company has a great balance sheet. A writer on Simply Wall Street thinks this stock is currently overbought. DFS Staff on DFS News took a look at this stock and say that technically, the Williams Percent Range says the stock is oversold..

Evertz Technologies Ltd is a Canadian provider of telecommunications equipment and technology solutions to the television broadcast and new-media industries. Evertz equipment is used in the production, post-production and transmission of television content. Its web site is here Evertz Technologies .

The last stock I wrote about was about was Onex Corp (TSX-ONEX, OTC-ONEXF) ... learn more. The next stock I will write about will be Superior Plus Corp (TSX-SPB, OTC-SUUIF) ... learn more on Monday, August 19, 2019.

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.

Onex Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Financial. Stock price is probably reasonable. For a company worth over $7B CDN$, I can find little in the way of estimates and not that many analysts following it. I think it is risky as the company’s direction is unknown and the risk is unknowable. There is insider ownership, but not much change in ownership over the years. See my spreadsheet on Onex Corp .

I do not own this stock of Onex Corp (TSX-ONEX, OTC-ONEXF), but I used to. I bought this stock in 2001 because it was on a stock hit list article I read. By April 2008, I knew that this was not the sort of stock I wanted to be invested in as it was really not a dividend paying stock as the dividends never changed, so I sold. Dividends were flat until 2012.

When I was updating my spreadsheet, I noticed in the second quarterly report that on January 1, 2019 Onex states that determined it met the definition of an investment entity, as defined by IFRS 10, Consolidated financial statements. This change in status has fundamentally changed how Onex prepares, presents, and discusses its financial results relative to periods ending on or before December 31, 2018. In the new year they just presented the new financial statements and I am not sure how this will affect the information I have on prior years.

With the new accounting statements, EPS and Book Value has jumped up significantly. It is how to know how this will affect how to value this company. I wonder if I want to continue to follow this stock. I will take another look next year and then decide. It is interesting that few analysts are following this company.

This was not a dividend growth stock until 2013. Before that there was a dividend, but the dividend had been flat for many years. Dividends are paid in CDN$ and have been increasing well lately. See chart below. The last increase was in 2019 and it was for 14.3%. The dividend yield has been low (below 2%). The current yield is 0.54% with 5, 10 and historical yields at 0.30%, 0.31% and 0.51% respectively.

I generally do not invest in companies with yields under 1% because it takes so long to get a decent yield on your original purchase amount. For this stock, after 20 years the yield is just 3%, although after 25 years it would be 10%.

The Dividend Payout Ratios are very low. The DPR for EPS for 2018 cannot be calculated as the company had an earnings loss in 2018. Also, for this company, the EPS fluctuates a lot, so you would probably want to go with the 5 year coverage. The DPR for EPS for 5 year coverage is 12.5%. The DPR for CFPS for 2018 is 1.3% with 5 year coverage at 1%.

Debt Ratios are probably fine, but with changes in 2019 it may be hard to tell how good the ratios actually are. With this company now reporting as an Investment Entity, the outstanding long term debt dropped some 99% from $21B to $134M from the end of 2018 to the end of the second quarter. The new reporting also affected the Liquidity Ratio, Debt Ratio, Leverage Ratio and Debt/Equity Ratio in a similar fashion. For example, the Liquidity Ratio went from 1.31 in 2018 to 13.67 in the second quarter of 2019.

The Total Return per year is shown below for years of 5 to 26 to the end of 2018 in CDN$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	20.11%	6.80%	6.41%	0.39%
2008	10	11.44%	16.19%	15.71%	0.48%
2003	15	7.49%	12.27%	11.80%	0.47%
1998	20	5.57%	10.90%	10.37%	0.53%
1993	25	4.83%	13.15%	12.20%	0.95%
1992	26	4.64%	17.00%	15.24%	1.76%

The Total Return per year is shown below for years of 5 to 17 to the end of 2018 in US$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	14.28%	0.55%	0.19%	0.36%
2008	10	10.25%	15.26%	14.68%	0.58%
2003	15	7.10%	11.57%	11.02%	0.55%
2001	17	6.18%	8.70%	8.25%	0.45%

The 5 year low, median, and high median Price/Earnings per Share Ratios are all negative. The corresponding 10 year ratios are also negative and therefore of no use. The historical ratios are 2.63, 3.26 and 3.87 which are very low, because of all the negative ratios. The current P/E Ratio is 133.90 based on a stock price of $74.35 and 2019 EPS estimate of $0.42.

Because of all the negative ratios of the past and because of the really high current one, I can really do no testing using the P/E Ratios. Also, the estimates make no sense because of the new accounting rules that Onex is using give the current 12 month EPS at $37.44 compared to the 2019 EPS estimate of $0.42. There is no continuity between the prior accounting and the current accounting.

I get a Graham Price of $33.26. The 10 year low, median, and high median Price/Graham Price Ratios are 0.53, 0.60 and 0.68. The current P/GP Ratio is 2.24 based on a current stock price of $74.35. 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 2.34. The current P/B Ratio is 0.88 based on Book Value of $6,706M, Book Value per Share of $66.98 and a stock price of $59.26. The current ratio is 62% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This is in US$.

I get an historical median dividend yield of 0.51%. The current dividend yield is 0.54% based on dividends of $0.40 and a stock price of $74.35. The current yield is 5.5% 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 0.23. The current P/S Ratio is 0.26 based on last 12 months Revenue of $22,905M, Revenue per Share of $228.76 and a stock price of $29.26. The current ratio is 11.5% above the 10 year median. This stock price testing suggests that the stock price is relatively reasonable and above the median.

Results of stock price testing is that the stock price is from below to above the median, so the price is probably reasonable. There is continuity in the dividends paid, so the dividend yield test is probably valid also. There is also continuity in the Revenue. So, the P/S Ratio tests should be fine. In the P/B Ratio, the values are quite different than in the past, so this might not be a good test.

Is it a good company at a reasonable price? It is never a good sign when a company changes their accounting rules with no or little continuity. For a large company, there is few analysts following this stock an even fewer giving any estimates. Canadians have made a decent return but US investors returns are very low at present. It might be a good dividend growth company is dividend increases continue, but it is uncertain this would be the case. I think the company is risky, because the amount of risk you would take buying this stock is unknown. Price is probably reasonable.

When I look at analysts’ recommendations, I find Strong Buy (2), Buy (2) and Hold (2). The consensus would be a Buy. The 12 month stock price is $96.36. This implies a total return of 30.14% with 29.60% from capital gains and 0.54% from dividends based on a stock price of $74.35.

See what analysts are saying on Stock Chase. One analyst complains that it hard to analysts. Some looking at it are just doing technical analysis. Will Ashworth on Motley Fool talks about it buying WestJet. A writer on Simply Wall Street talks about who owns this company. The company announces on Global Newswire the sale of Jack’s Family Restaurants. The company on Global Newswire talks about their second quarterly results of 2019.

Onex Corp is a private equity investor and asset management firm. The company invests in businesses in partnership with management teams. It also invests in non-investment-grade debt through credit funds and collateralized loan obligations. It invests its capital together with funds from public and private pension funds, sovereign wealth funds, banks, insurance companies, and family offices. Its web site is here Onex Corp .

The last stock I wrote about was about was BlackBerry Ltd (TSX-BB, NASDAQ-BBRY) ... learn more. The next stock I will write about will be Evertz Technologies (TSX-ET, OTC-EVTZF) ... learn more on Friday, August 16, 2019 around 5 pm. Tomorrow on my other blog I will write about SNC Lavalin Group Inc.... learn more on Thursday, August 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.

BlackBerry Ltd

Sound bite for Twitter and StockTwits is: Tech Stock. This would be a high risk and it is hard to say at present if the company will reinvest itself and take off again. Testing of the current price shows the price is either cheap or expensive. It is not exactly clear. I do wonder if the risk buying this stock is worth the possible future gains. See my spreadsheet on BlackBerry Ltd.

I do not own this stock of BlackBerry Ltd (TSX-BB, NASDAQ-BBRY), but I used to. I always liked tech stocks and this was a fast rising tech stock when I bought it. I bought this stock for capital gain. I first bought it in 1999 and then some more in 2000. I sold some in 2006 and 2007 to lock in some profit. I sold the rest of my stock in 2010. I made a return of 20% per year.

When I was updating my spreadsheet, I noticed that there is a lot of insider selling. It is at 0.95% of market cap over the past year. You would expect this to be around .02%. However, the selling is of stock options, but they are taking up some with the Chairman and CEO shares up 85%, the CFO shares up 139%. However, while V. Prem Watsa’s shares are flat and those for his company of Fairfax Financial Holdings Limited are down 10%.

This stock never had dividends and I had it while I was still working so I was not so concerned about dividends then.

Debt Ratios are all very good. The Long Term Debt/Market Cap Ratio for 2018 is 0.14. The Liquidity Ratio is 2.54 for 2018 with 5 year median at 2.79. The Debt Ratio is 3.04 in 2018 with 5 year median at 2.85. The Leverage and Debt/Equity Ratios are 1.49 and 0.49 respectively for 2018 with 5 year median at 1.50 and 0.50.

The Total Return per year is shown below for years of 5 to 21 to the end of 2018 in CDN$. I am only showing total return as all gain is from capital gains for this stock. In the last company, I am showing Total Return to the present date. Total Return has not improved. See chart below.

From	Years	Tot Ret	CDN$	To Date
2013	5	4.21%		-6.06%
2008	10	-15.03%		-18.38%
2003	15	-2.62%		-8.07%
1998	20	9.07%		-0.88%
1997	21	10.60%		9.89%

The Total Return per year is shown below for years of 5 to 22 to the end of 2018 in US$. I am only showing total return as all gain is from capital gains for this stock. Here again, in the last column, I am showing total return to the present date. See chart below.

From	Years	Tot Ret	US$	To date
2013	5	-0.90%		-8.58%
2008	10	-15.99%		-20.27%
2003	15	-2.95%		-8.70%
1998	20	6.07%		-0.47%
1996	22	9.94%		9.42%

The 5 year low, median, and high median Price/Earnings per Share Ratios are all negative and so of no help. The corresponding 10 year ratios 2.69, 4.62 and 5.79 are very low. The historical median ratios are 10.13, 18.09 and 30.32. The current P/E Ratio is negative as is the one for 2021. I have no conclusion for this testing.

I get a Graham Price of $5.41. The 10 year low, median, and high median Price/Graham Price Ratios are 0.70, 1.03 and 1.34. The current P/GP Ratio is 1.72 based on a stock price of $9.32. This stock price testing suggests that the stock price is relatively expensive. This is in CDN$.

I get a 10 year median Price/Book Value per Share Ratio of 1.91. The current P/B Ratio is 1.48 based on a stock price of $7.01, Book Value of $2,597M, and Book Value per Share of $4.74. The current ratio is 23% below 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This is in US$.

I cannot do an historical median dividend yield test because this stock has no dividends.

The 10 year median Price/Sales (Revenue) Ratio is 1.71. The current P/S Ratio is 3.38 based on 2020 Revenue of $1,135M, Revenue per Share of $2.07 and a stock price of $7.01. The current ratio is some 98% higher than the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This is in US$.

Results of stock price testing is that the stock price is mixed. The P/S Ratio cannot be ignored and it says that the stock price is relatively expensive. The reporting currency for this stock is in US$, but the testing results will be the same in either currency. The P/S Ratio has been very volatile on this stock over the years. Tech companies tend to have high ratios. The P/B Ratio says it is cheap, but this is taking a view from the past, where the P/S Ratio testing is viewing the future.

Is it a good company at a reasonable price? To buy this company at the present time would be risky and you may not be rewarded for taking the risk. I have moved on and I probably would not be buying this company in the future. However, there is a chance it would reinvent itself.

When I look at analysts’ recommendations, I find Strong Buy (2), Buy (3), Hold (6), Underperform (1) and sell (1). The consensus would be a Hold, but the recommendations are really all over the place. The 12 month stock price is $11.06 US$ or $14.73 CDN$. This implies a total return of 58.09% in CDN$ using current price of $9.32 CDN$ and 57.77% in US$ using current price of $7.01 US$.

See what analysts are saying on Stock Chase. There are all Don’t Buy recommendations recently. David Jagielski on Motley Fool thinks you should buy this stock because it is now into cyber security. A writer on Simply Wall Street says the current price is a fair price, but there is a lot of uncertainty with this company. A writer on Simply Wall Street says people who bought BlackBerry 5 years ago are up 54%. However, this would only be true if you happened to buy it at its lowest point. To buy a stock at its lowest point is not easy. BNK Invest on Nasdaq says that BlackBerry is oversold. That means it is cheap.

BlackBerry, formerly Research in Motion, designs and markets wireless handsets, software, and services. Its primary revenue drivers are the sale of handsets to customers for personal and corporate use, a variety of software products used in embedded systems and for mobile device management, and service access fees from wireless carriers associated with securing and processing wireless data traffic. BlackBerry also owns QNX, a leader in software used in automotive infotainment systems. Its web site is here BlackBerry Ltd.

The last stock I wrote about was about was Stingray Digital Group Inc (TSX-RAY, OTC-NONE) ... learn more. The next stock I will write about will be Onex Corp (TSX-ONEX, OTC-ONEXF) ... learn more on Wednesday, August 14 around 5 pm. Tomorrow on my other blog I will write about Speziale on Dividend Growth.... learn more on Tuesday, August 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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