I do not own this stock of Logistec Corp (TSX-LGT.B, OTC-LTKBF). I got this stock from Dividend Growth Investing and Retirement blogger’s all-star spreadsheet for March 2017.
When I was updating my spreadsheet, I noticed the lack of clarity on their site as to who was the Chairman of the Board. For the board of directors, they give picture and you have to run your cursor over the picture to see who people are. None showed as chairman and bio on the person I have as Chairman did not say he was still or ever the chairman. I had to google this information. I do not see why they cannot just tell you this sort of information. This is annoying to say the least.
Another thing I notice was that long term debt is increasing rapidly. Last four years increases were 88.05%, 29.23%, 105.25%, and 66.97%. The last increase is for the first two quarters of 2019. The Long Term Debt/Market Cap Ratio is not high at 0.54, but the big increases in debt might be.
The dividend yield on Class B shares are low (under 2%). The current dividend yield is 1.09% with 5, 10 and historical median dividend yields at 0.76%, 0.96% and 1.92%. The current dividend yield for Class A shares are also low, with a current dividend yield of 0.91% and 5, 10 and historical dividend yields at 0.69%, 0.82% and 1.73%. The dividend growth was low (under 8%) until recently and then the growth became moderate (8% to 14% ranges). See the charts below.
The Dividend Payout Ratios are good. The DPR for EPS for 2018 for Class B shares is 26% with 5 year coverage at 24%. The DPR for CFPS for 2018 for Class B shares is 14% with 5 year coverage at 18%. The DPR for EPS for 2018 for Class A shares is 26% with 5 year coverage at 22%. The DPR for CFPS for 2018 for Class B shares is 14% with 5 year coverage at 18%.
Debt Ratios are fine but all are moving in the wrong direction. The Long Term Debt/Market Cap Ratio for 2018 is 0.30 with the 10 year median at 0.14. The Liquidity Ratio for 2018 is 1.65 with 5 year median at 2.25. The Debt Ratio for 2018 is 1.71 with 5 year median at 2.33. The Leverage and Debt/Equity Ratios for 2018 are 2.43 and 1.42 with 5 year medians at 1.77 and 0.76.
The Total Return per year is shown below for years of 5 to 22 to the end of 2018 for Class B Subordinate Voting Shares. 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 | 12.53% | 11.05% | 9.49% | 1.56% |
| 2008 | 10 | 8.12% | 26.26% | 23.77% | 2.49% |
| 2003 | 15 | 7.78% | 18.37% | 15.71% | 2.66% |
| 1998 | 20 | 6.28% | 11.88% | 10.23% | 1.65% |
| 1996 | 22 | 5.94% | 15.75% | 12.11% | 3.64% |
The Total Return per year is shown below for years of 5 to 20 to the end of 2018 for Class A with 30 votes per share.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2013 | 5 | 12.53% | 9.68% | 8.24% | 1.44% |
| 2008 | 10 | 8.12% | 25.37% | 23.06% | 2.31% |
| 2003 | 15 | 7.78% | 17.73% | 15.27% | 2.46% |
| 1998 | 20 | 6.28% | 11.28% | 9.77% | 1.51% |
The 5 year low, median, and high median Price/Earnings per Share Ratios are 14.81, 17.77 and 20.72. The corresponding 10 year ratios are 8.52, 11.12 and 14.38. The corresponding historical median ratios are 8.81, 10.73 and 12.32. The current P/E Ratio is 21.57 based on a stock price of $37.65 and last 12 month EPS of $1.75. This stock price testing suggests that the stock price is relatively expensive.
I get a Graham Price of $27.95. The 10 year low, median, and high median Price/Graham Price Ratios are 0.80, 1.11 and 1.39. The current P/GP ratio is 1.35 based on a stock price of $37.65. 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 2.10. The current P/B Ratio is 1.89 based on a stock price of $37.65, Book Value of $252M and Book Value per Share of $19.89. The current ratio is some 10% 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 1.92%. The current dividend yield is 1.09% based on dividends of $0.41 and a stock price of $37.65. The current yield is some 43% 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 0.94. The current P/S Ratio is 0.76 based on the last 12 months of revenue of $624M, Revenue per Share of $49.28 and a stock price of $37.65. 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 expensive. The stock price testing done on the dividend yield shows this stock as expensive and this might be the only really valid test. This might be supported by the most recent dividend increase which was this year and for only 3%.
The problem with analyzing this company is that they have Class A and Class B stocks which have not only their own share price but also their own EPS and dividends. This complicates testing using EPS and makes you wonder how good that testing is.
Is it a good company at a reasonable price? I think that this is an interesting company but they really complicate things with their separate classes of shares with their own earnings. I do not like complex when it comes to companies to invest in. It is hard to say about the price. It may be expensive, then maybe not. I could be wrong. If you look at start P/E for the total returns for the past 5, 10, 15, and 20 years, they are 12.88, 5.10, 131.08 and 11.52. For the high P/E start for year 15, the EPS dropped 90% in that year and then fully the next year. EPS went from $0.41 to $0.04 to $0.59. So mostly the start P/Es were lower than the current one.
When I look at analysts’ recommendations, I find no analysts following this stock. The Morningstar Quant Report gives it 3 stars out of a possible 5 stars and says that it is currently fairly valued. The Wall Street Journal gave it an analyst’s rating of Hold with one analyst. But it also gives a target price of $7.50 which makes no sense.
See what analysts are saying on Stock Chase. They are no well followed but the company is liked. James Watkins-Strand on Motley Fool likes this company but thinks it is a bit expensive. A writer on Simply Wall Street talks about institutional ownership. A writer on Simply Wall Street thinks the ROE is low and unimpressive. Jay Miller on Crain’s Cleveland Business talks about this company the new operator for Port of Cleveland.
Logistec Corp provides specialized cargo handling and other services to a wide variety of marine, industrial, and municipal customers. It has cargo-handling facilities in eastern North America, short-line rail transportation services, and marine agency services to foreign shipowners and operators serving the Canadian market. Its web site is here Logistec Corp.
The last stock I wrote about was about was Teck Resources Ltd (TSX-TECK.B, NYSE-TECK)... learn more. The next stock I will write about will be Trigon Metals Inc (TSX-TM, OTC-PNTZF) ... learn more on Wednesday, October 09, 2019 around 5 pm. Tomorrow on my other blog I will write about Money Show 2019 – Peter Hodson.... learn more on Tuesday, October 08, 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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