Goodfellow Inc

Sound bite for Twitter and StockTwits is: Dividend Paying Consumer. The stock price is relatively cheap. There is insider buying. Their new CFO bought 1,000 shares in February 2020. They have no long term debt, but they have taken off a bank loan. Bank loan in 2019 has a ratio of 0.76 compared to market cap rating to 1.04 currently. See my spreadsheet on Goodfellow Inc .

I own this stock of Goodfellow Inc (TSX-GDL, OTC-GFELF). Goodfellow looks like a good small cap stock. It was being pushed by Investor Reporter. The report I got was from 2010.

When I was updating my spreadsheet, I noticed there is a bit of insider buying under $5.35. It is a good sign that the company restarted dividends in 2019. The company admits that there are challenging conditions in North America and overseas. This long slow recovery has been hard on a lot of companies. It has very good debt ratios with no long term debt. However, you have to worry about the effect of the Covid 19 flu on their future business and their dividends.

The dividend yields are mostly moderate with both dividend growth and dividend decreases. The current dividend is good (5% and 6% ranges) at 5.71%. This is not surprising as a lot of companies have higher than usual dividend yields. The 5, 10 and historical dividend yields are 2.87%, 3.42% and 3.50% which is in the moderate range (2% to 4% ranges). As far as I know they started to pay dividends in 1991. Dividends have gone up and down over the years. See chart below.

The Dividend Payout Ratios are fine. The DPR for EPS for 2019 is 57%. I cannot calculate 5 year coverage because the total 5 year EPS is negative. The DPR for CFPS is 18% with 5 year coverage at 26%. The DPR for Free Cash Flow is 7% with 5 year coverage at 31%. Dividend Coverage Ratio is 14.41 with 5 year ratio at 3.24.

Debt Ratios are mostly good. They have gotten rid of their long term debt, but do have a current bank indebtedness at 0.76 in 2019, rising to 1.04 currently. This has to do with the bear market sell off. Their Liquidity Ratio for 2019 is very good at 2.22 with a 5 year median at 2.04. The Debt Ratio is also very good at 2.69 for 2019 with 5 year median ratio at 2.45. The Leverage and Debt/Equity Ratios for 2019 are also very good at 1.59 and 0.59 respectively. The 5 year median ratios are 1.62 and 0.62.

The Total Return per year is shown below for years of 5 to 28 to the end of 2019. 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.
2014	5	-7.79%	-10.09%	-11.99%	1.90%
2009	10	-14.97%	-4.14%	-7.40%	3.26%
2004	15	-3.48%	-0.35%	-5.28%	4.93%
1999	20	1.80%	6.80%	-0.38%	7.18%
1994	25	4.29%	11.67%	2.98%	8.70%
1991	28	7.01%	10.63%	3.10%	7.53%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 9.26, $10.02 and 10.78. The corresponding 10 year ratios are 12.20, 12.98 and 13.76. The corresponding 10 year ratios are 7.08, 7.08 and 9.50. The current P/E Ratio is 10.00 based on a stock price of $3.50 and last 12 month EPS of $0.35. This stock price testing suggests that the stock price is relatively cheap. The trouble with P/E Ratios on this stock is the EPS are volatile.

I get a Graham Price of $10.21. The 10 year low, median, and high median Price/Graham Price Ratios are 0.53, 0.59 and 0.65. The current P/GP Ratio is 0.34 based on a stock price of $3.50. 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 0.66. The current P/B Ratio is 0.26 based on a Book Value of $113.4M, Book Value per share of $13.24 and a stock price of $3.50. The current ratio is 60% 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 3.50%. The current dividend yield is 5.71% based on dividends of $0.20 and a stock price of $3.50. The current dividend yield is 63% higher than the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median dividend yield of 3.42%. The current dividend yield is 5.71% based on dividends of $0.20 and a stock price of $3.50. The current dividend yield is 67% higher than the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 0.16. The current P/S Ratio is 0.07 based on last 12 months Revenue of $449.6M, Revenue per Share of $52.51 and a stock price of $3.50. The current ratio is 58% below the 10 year 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. All the tests are showing the same thing. The P/S Ratio test confirms what the dividend yield tests are showing which is the stock is relatively cheap. A possible problem with the dividend yield test is dividends have been volatile. There are no problems with the P/B Ratio test or the P/GP Ratio test.

Is it a good company at a reasonable price? The problem is that this company was doing quite well when I first bought it in 2010. The economy has gone through a long slow recovery since 2010 and it has been hard on a lot of companies.

When I look at analysts’ recommendations, I find none. I looked at Market Beat and their community ratings for this stock and it is scored 2.7 out of 5. In community voting 53% feel it will outperform the market and 47% feel it will underperform the market.

There are no entries for this stock on Stock Chase. It is a small cap and not of much interest. Benjamin Sinclair on Motley Fool talks about this stock and does not suggest it is a buy. I had to go back to 2014 to find an entry. A writer on Simply Wall Street is not excited by this stock. A writer on Simply Wall Street does not like the debt level and declining EPS. A writer on Simply Wall Street says the CEO of this company is being paid higher than at similar companies. He also says the earnings are growing, but I do not see that.

Goodfellow Inc is engaged in remanufacturers and distributors of lumber products and hardwood flooring products. It is engaged in the wholesale distribution of wood products, and remanufacturing, distribution, and brokerage of lumber. Its web site is here Goodfellow Inc.

The last stock I wrote about was about was Melcor Developments Inc (TSX-MRD, OTC-MODVF) ... learn more. The next stock I will write about will be Sun Life Financial Inc (TSX-SLF, NYSE-SLF) ... learn more on Wednesday, April 1, 2020 around 5 pm. Tomorrow on my other blog I will write about Docebo Inc.... learn more on Tuesday, March 31, 2020 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.

Melcor Developments Inc

This morning I bought some Supremex Inc (TSX-SXP, OTC-SUMXF) for my TFSA. This is a speculative stock. I am using the money in the TFSA as my fooling around money.

Sound bite for Twitter and StockTwits is: Dividend Growth Real Estate. The stock price is relatively cheap. However, dividends were decreased this year. The stock has not done well lately. Debt ratios are good. See my spreadsheet on Melcor Developments Inc .

I own this stock of Melcor Developments Inc (TSX-MRD, OTC-MODVF). This was one of the stocks on Mike Higgs' list of good dividend growth stocks. So, I looked into it and bought it. I bought this stock first in 2008 and then some more in 2009. It is a little followed real estate company from Western Canada.

When I was updating my spreadsheet, I noticed it has not been doing well lately. This is hardly surprising because the west, particularly Alberta, has not been doing well. I am keeping my stock because I hope that the west will revive. I think that we will have to wait for another Federal government for this to happen. It seems to me that Trudeau has no intention of letting the west revive. I am in Ontario and I think this. I wonder what the Albertan are saying to each other about Trudeau.

The dividend yields are moderate with dividend growth stopped. The dividend yields are moderate (2% to 4% Range) except for the current one which is good (5% and 6% ranges). The current dividend is 5.16% with 5, 10 and historical yields at 3.70%, 3.05% and 2.84%. The stock price has gone down so yields have gone up. However, they decreased the dividends by 20% this year. This is not the first time for dividends to decrease. Changes in dividend rate has been volatile. See chart below.

The Dividend Payout Ratios are fine. The DPR for EPS for 2019 was 44% with 5 year coverage at 35%. The DPR for CFPS was 45% with 5 year coverage at 48%. Because this is a real estate company the Funds from Operations (FFO) DPR counts too. The DPR for FFO for 2019 is 43% with 5 year coverage at 35%. I have been looking at Free Cash Flow lately also. The DPR for FCF for 2019 is 55% with 5 year coverage at 53%.

Debt Ratios are good. The Long Term Debt/Market Cap for 2019 is 1.70. This is not surprising as it is a company based in Western Canada. However, since this is a Real Estate company, you have to looks at the assets covering this debt. The Debt/Covering Asset Ratio is 0.48 and this is a good one. The Liquidity Ratio is not important for a RE company, but I calculated it anyway and it is good at 2.63. The Debt Ratio is also good at 2.06. The Leverage and Debt/Equity Ratios are 1.394 and 0.94 respectively in 2019.

The Total Return per year is shown below for years of 5 to 29 to the end of 2019. 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.
2014	5	-2.92%	-4.37%	-7.48%	3.11%
2009	10	7.18%	5.99%	1.58%	4.41%
2004	15	9.98%	12.38%	6.61%	5.77%
1999	20	11.18%	17.80%	10.37%	7.43%
1994	25	11.91%	21.05%	10.91%	10.14%
1990	29	14.44%	17.15%	9.74%	7.42%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 10.31, 11.35 and 12.39. The corresponding 10 year ratios are 6.40, 7.51 and 8.69. The corresponding historical ratios are 6.30, 7.28 and 8.42. The current ratio is 6.35 based on a stock price of $7.75 and 2020 EPS estimate of $1.22. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $29.87. The 10 year low, median, and high median Price/Graham Price Ratios are 0.40, $0.43 and 0.50. The current P/GP Ratio is 0.26 based on a stock price of $7.75. 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 0.59. The current P/B Ratio is 0.24 based on a Book Value of $1,080M, Book Value per Share of $32.51 and a stock price of $7.75. The current ratio is 60% 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 2.84%. The current dividend yield is 5.16% based on dividends of $0.40 and a stock price of $7.75. The current dividend yield is 82% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median dividend yield of 3.05%. The current dividend yield is 5.16% based on dividends of $0.40 and a stock price of $7.75. The current dividend yield is 69% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 1.98. The current P/S Ratio is 0.92 based on 2020 Revenue estimate of $281M, Revenue per Share of $8.46 and a stock price of $7.75. The current ratio is 54% below the 10 year 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. All the testing is showing that the stock price is cheap at $7.75. This is not surprising was we are in a bear market.

Is it a good company at a reasonable price? I will continue to hold on to my shares in this company. Hopefully, at some point the west will revive. It is just hard to say when at this point.

When I look at analysts’ recommendations, I find one recommendation of Hold. The consensus would be a Hold. The 12 month stock price is $13.50. This implies a total return of 79.35% with 74.19% from capital gains and $5.16% from dividends.

See what analysts have to say on Stock Chase. There are few entries but the latest one by a shorter says he is covering his shorts. Daniel Da Costa on Motley Fool says to buy as it is one of the cheapest real estate stocks. A Writer on Simply Wall Street says it is a buy because it can cover its dividend and interest payments. A writer on Simply Wall Street says that the average real estate P/E is 13.5 and this company’s is 7.5. This means that the market is unimpressed with this company. On Rentx.ca the company talks about actions they are taking because of Covid-19.

Melcor Developments Ltd is a real estate development and asset management company. It develops and manages mixed-use residential communities, business and industrial parks, office buildings, retail commercial centers and golf courses. Its web site is here Melcor Developments Inc.

The last stock I wrote about was about was BCE Inc (TSX-BCE, NYSE-BCE) ... learn more. The next stock I will write about will be Goodfellow Inc (TSX-GDL, OTC-GFELF) ... learn more on Monday, March 30, 2020 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.

BCE Inc

Today I bought 100 shares of Canadian Natural Resources (TSX-CNQ, NYSE-CNQ). I tried last week when it was $11.93, but stock just went up in price and I missed it. I do put a limit price on buying, especially in a volatile market as you do not know what will happen. Today I bought it at $14.52 because this is still a good price and the markets have been going up. Who knows what the markets are going to do? I do not.

Sound bite for Twitter and StockTwits is: Dividend Growth Telecom. The stock price is probably reasonable. Insider have been sellers of this stock this year. There has been no insider buying since the current bear market started. This is interesting. The DPR for EPS needs to be improved. See my spreadsheet on BCE Inc .

I own this stock of BCE Inc (TSX-BCE, NYSE-BCE). I bought this stock in 1982 and have held it ever since. Since I bought it both Nortel and Bell Aliant were spin off. The problem with BCE's spinning off part of the company was that I ended up with an odd number of shares. It is annoying.

When I was updating my spreadsheet, I noticed because I had this stock since 1982 and I only started with Quicken in 1988 and because of the spin offs of Nortel and Bell Aliant, I can only judge the total return with BCE because including Nortel and Bell Aliant in with BCE. I sold off both Nortel and Bell Aliant. Because I sold half my Nortel soon after getting the shares in my account (and half when the price had crashed) is part of the reason I have done well. My total return on BCE is 10.20% per year since 1988. This is quite good.

It is interesting that since this stock has tanked along with the stock market, there has been no insider buying. Insider selling has stopped. There was a lot of insider selling over the past year. The Net Insider Selling at 0.19%. You would expect this to be at 0.01% or 0.02% at the most.

I have also noticed that the Stock Price given by TD Bank and the ones I have collected over the years vary. TD has a higher total return after 15 years than what I do. Although, my values come closer to what I have experience with this stock over the years. Of course, it could come down to how they and I have handled the spin offs over the years.

The dividend yields are moderate with dividend growth low. The current yield is in the good range (5 and 6% ranges) as is to be expected as we are in a bear market. The current yield is 6.11%. The other median dividend yields of 5, 10 and historical are in the moderate range (2% to 4%). The 5, 10 and historical median dividend yields are 4.73%, 5.73% and 4.63%.

The Dividend Payout Ratios are mostly too high and need improvement. The DPR for EPS for 2019 is 93% with 5 year coverage at 89%. Analysts think that it will be higher this year and do not see any retreat in this ratio in the short term. These ratios are too high. The DPR for CFPS is good (under 40%) in 2019 at 30% and 5 year coverage at 33%. The DPR for Free Cash Flow is probably also too high at 71% in 2019 with 5 year coverage at 80%.

Debt Ratios are fine. Long Term Debt/Market Cap Ratio for 2019 is 0.41. It has decreased to 0.46 currently. (With this ratio, lower is better.) The Liquidity Ratio is 0.56 and it has always been too low. You have to added in cash flow after dividends and current portion of the long term debt to get to a good ratio. That ratio for 2019 is 1.98. The Debt Ratio for 2019 is good at 1.55. The Leverage and Debt/Equity Ratios for 2019 are 2.81 and 1.81 respectively and are fine.

The Total Return per year is shown below for years of 5 to 36 to the end of 2019. 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. I am not surprised that the 20 year total return is negative, as the stock market hit a very high value at the end of 1999, especially for any stock connected in any way to tech. (Also note above the TD bank gives different values for longer terms.)

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2014	5	5.17%	7.52%	2.46%	5.06%
2009	10	7.08%	13.72%	7.57%	6.15%
2004	15	6.61%	9.81%	5.00%	4.81%
1999	20	4.91%	-0.99%	-3.22%	2.23%
1994	25	3.91%	9.38%	4.52%	4.86%
1989	30	3.57%	8.31%	3.72%	4.59%
1984	35	3.43%	9.26%	4.00%	5.26%
1983	36	3.47%	13.37%	5.34%	8.03%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 16.41, 17.95 and 19.48. The corresponding 10 year ratios are 15.95, 17.54 and 19.02. The corresponding historical ratios are 14.1, 16.76 and 17.12. The current P/E Ratio 15.71 based on a stock price of $54.50 and 2020 EPS estimate of $3.47. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $38.40. The 10 year low, median, and high median Price/Graham Price Ratios are 1.42, 1.56 and 1.71. The current P/GP Ratio is 1.42 based on a stock price of $54.50. 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 3.13. The current P/B Ratio is 2.89 based on a Book Value of $17,070M, Book Value per Share of $18.88 and a stock price of $54.50. The current ratio is 8% below the 10 year 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 4.63%. The current dividend yield is 6.11% based on a stock price of $54.50 and dividends of $3.33. The current yield is 32% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median dividend yield of 5.17%. The current dividend yield is 6.11% based on a stock price of $54.50 and dividends of $3.33. The current yield is 18% below the 10 year median dividend 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 2.06. The current P/S Ratio is 2.02 based on 2020 Revenue estimate of $24,372M, Revenue per Share of $26.96 and a stock price of $54.50. The current ratio is 2% 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 that the stock price is probably reasonable It is surprising that a lot of this testing is showing the stock price as reasonable rather than cheap. The P/S Ratio which cannot be ignored is showing the stock price as just 2% below the median. The good news seems to be that the yield is relatively high.

Is it a good company at a reasonable price? I will continue to hold my shares in BCE but I am not planning on buying any more even though this company is not very large as a percentage of my holdings. This is the first stock I bought, so I will keep it. However, I am unsure of how good a business a telecom is at present.

When I look at analysts’ recommendations, I find Strong Buy (5), Buy (4), Hold (8) and Sell (2). The consensus would be a Buy. The 12 month stock price consensus is $63.03. This implies a total return of 21.76% with 15.65% from capital gains and 6.11% from dividends.

See what analysts are saying on Stock Chase. Some like it but others say it is a slow growth company. Haris Anwar on Motley Fool thinks BCE is a low risk stock with a strong cash flow. A writer on Simply Wall Street does not like the EPS dividend coverage, but says FCF coverage is fine. A writer on Simply Wall Street in September 2019 said the intrinsic value of BCE was $113, and so the stock was undervalued.. Debasis Saha on Insider Monkey says Hedge Funds have never before been this bullish on BCE.

BCE is both a wireless and Internet service provider, offering wireless, broadband, television, and landline phone services in Canada. It is one of the big three national wireless carriers, with its nearly 10 million customers constituting about 30% of the market. Its web site is here BCE Inc.

The last stock I wrote about was about was AltaGas Ltd (TSX-ALA, OTC-ATGFF) ... learn more. The next stock I will write about will be Melcor Developments Inc (TSX-MRD, OTC-MODVF) ... learn more on Friday, March 27, 2020 around 5 pm. Tomorrow on my other blog I will write about Enbridge Inc.... learn more on Thursday, March 26, 2020 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.

AltaGas Ltd

his morning I bought some HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF) for my TFSA. I am using the money in the TFSA as my fooling around money.

Sound bite for Twitter and StockTwits is: Dividend Paying Utility. The stock price is relatively cheap and has fallen some 50% in this bear market. I am hoping with the latest dividend decrease and the DPR in a good place this stock will be a dividend growth stock. See my spreadsheet on AltaGas Ltd.

I own this stock of AltaGas Ltd (TSX-ALA, OTC-ATGFF). When I bought this stock in 2009 it was on many dividend growth stock lists. In 2009, I saw that this stock also had good growth in Revenues, Earnings, Dividends, and Stock Prices over the last 5 and 10 years. The stock had a fairly strong balance sheet. I took a small position in this stock, and planned to wait and see how things go with this stock before buying more. I bought more in 2010 and 2012.

When I was updating my spreadsheet, I noticed that although there are more insider buys and insider sells over the past year, insiders started to do a lot of insider buying under $14.00. Also, there is big increases in the number of shares outstanding. Shares have increased by 16% and 13% per year over the past 5 and 10 years. For shareholders the most important figures are the per share figures. The increases can make a lot of difference. The Revenue has increase by 18% and 16% per year over the past 5 and 10 years but the Revenue per Share increases are quite low at 1.8% and 2.2% per year over the past 5 and 10 years.

This company has decreased the dividend twice in the last 10 years. They used to be an income trust. Income Trust can pay out more in dividends than earnings. However, corporations cannot pay out in dividends more than in earnings. With this second decrease, they have brought the DPR into a more reasonable place. Hopefully, this will be a dividend growth stock going forward.

The dividend yields are good to high with dividend growth negative. The current dividend yield is high (7% and above). This used to be an income trust, so dividends yields have often been high as income trust could pay out a lot in dividends. The current yield is 9.70%. The 5, 10 and historical are good (5% and 6% ranges) They are 6.41%, 5.29% and 6.21%. Most of what I have earned on this stock has been in dividends.

The Dividend Payout Ratios are improving from a low position. The DPR for EPS for 2019 is 35% with 5 year coverage at 520%. Analysts expect that this DPR will move to 77% in 2020 and stay lower than it has been. The DPR for CFPS for 2019 is 32% with 5 year coverage at 66%. This DPR is also expected to move lower than in previous years. The Free Cash Flow has been negative for the past 3 years. Analysts expect that it will turn positive in 2020 and be high enough to sufficient cover the dividend and continue to do so in the coming years.

Debt Ratios are not great but are improving. The Long Term Debt/Market Cap was 1.07 in 2019. With the stock market moving lower, this will not improve much in the short term, but debt is going down. The Liquidity Ratio for 2019 is 0.70. If you add in cash flow after dividends and add back in the current portion of long term debt it is 1.15. This is a low value and it is better at 1.50 or higher. The Debt Ratio for 2019 is 1.59 and a good value. Leverage and Debt/Equity Ratios for 2019 are 2.69 and 1.69 and are fine.

The Total Return per year is shown below for years of 5 to 20 to the end of 2019. 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.
2014	5	-10.48%	-8.82%	-14.52%	5.70%
2009	10	-7.79%	9.09%	0.51%	8.58%
2004	15	-1.46%	7.52%	-1.04%	8.56%
1999	20	10.86%	18.03%	6.15%	11.89%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 28.32, 31.83 and 35.53. The corresponding 10 year ratios are 24.24, 28.48 and 32.71. The corresponding historical ratios are 12.74, 15.60 and 18.61. The current P/E Ratio is 7.92 based on a stock price of $9.90 and 2020 EPS estimate of $1.25. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $23.20. The 10 year low, median, and high median Price/Graham Price Ratios are 1.25, 1.43 and 1.63. The current P/GP Ratio is 0.43 based on a stock price of $9.90. 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 1.71. The current P/B Ratio is 0.51 based on Book Value of $5,429M, Book Value per Share of $19.46 and a stock price of $9.90. The current ratio is 70% 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 6.21%. The current dividend yield is 9.70% based on a stock price of $9.90 and dividends of $0.96. The current dividend yield is 56% above the historical dividend yield. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median dividend yield of 5.29%. The current dividend yield is 9.70% based on a stock price of $9.90 and dividends of $0.96. The current dividend yield is 83% above the 10 year dividend yield. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 2.17. The current P/S Ratio is 1.17 based on a stock price of $9.90, Revenue estimate for 2020 of $6,545M, and Revenue per Share of $23.45. The current ratio is 46% below the 10 year 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. We are in a bear market and this stock on all tests is showing as cheap. This cannot be surprising as the stock price has fallen 50% this year.

Is it a good company at a reasonable price? I will continue to hold the shares I have for this company. It has not been easy for this company to switch from an income trust to a corporation. However, I am hoping that it will become a dividend growth company. Price is currently cheap.

When I look at analysts’ recommendations, I find Strong Buy (4), Buy (4) and Hold (7). The consensus would be a Buy. The 12 month stock price is $20.53. This implies a total return of 117.07% with 107.37% from capital gains and 9.70% from dividends based on a stock price of $9.90.

See what analysts are saying about this stock on Stock Chase. There are mixed reviews on this stock. Nelson Smith on Motley Fool thinks this stock is ridiculously cheap and a buy. A writer on Simply Wall Street does not like the debt load or the unstable dividend. He does not understand the problems that old income trust companies have faced. A writer on Simply Wall Street said the stock was fairly priced at $18.61 in August 2019. Brian Anderson on Smarter Analysts said that a Raymond James analyst has maintained its Hold rating on this company in March 2020 when stock was priced at $15.53.

AltaGas Ltd owns and operates a diversified basket of energy infrastructure businesses. Business is conducted through three segments: Midstream, power, and utilities. Revenue is derived from customers in both Canada and the United States, with Canadian customers contributing the most. Its web site is here AltaGas Ltd.

The last stock I wrote about was about was TC Energy Corp (TSX-TRP, NYSE-TRP) ... learn more. The next stock I will write about will be BCE Inc (TSX-BCE, NYSE-BCE) ... learn more on Wednesday, March 25, 2020 around 5 pm. Tomorrow on my other blog I will write about Fortis Inc.... learn more on Tuesday, March 24, 2020 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.

TC Energy Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Utility. The stock price is cheap to reasonable. I would like to see better Liquidity Ratios, but these ratios have often been a problem for this company. I reviewed the last 20 years. The Dividend Payout Ratios are improving and this is nice to see. Insiders are still selling but with some recent buying under $65. See my spreadsheet on TC Energy Corp.

I own this stock of TC Energy Corp (TSX-TRP, NYSE-TRP). I bought the stock in 2000 at an opportune time. The company had been cutting their dividend payments in order to re-organize and get the company into shape for long term profitability. This company’s stock fell hard because of this. People who depend on dividends for their income can be an unforgiving lot and can get really upset at company when a trusted company cuts its dividends.

When I was updating my spreadsheet, I noticed that I have done well with this stock earning a total return of 11.28% per year with 6.49% from capital gains and 4.79% from dividends. However, over the past 5 years the total return is just 7.88% per year with $3.91% from capital gains and 3.98% from dividends. I also noticed that there is some insider selling over the past year. However, since the stock has been tanking with the market, there has been some buying between $50.00 and $65.00 a share.

The dividend yields are moderate with dividend growth low to moderate. The current dividend yield is in the good range (5% and 6% range) which would come as no surprise as we are currently in a bear market. The current dividend yield is 6.08%. The 5, 10, and historical dividend yields are 4.23%, 4.10% and 4.30%.

Over the last 5 years the dividend increases were at 9.12% per year. This is higher than in the past. See the chart below. However, the last dividends increase for 2020 was lower at 8%.

The Dividend Payout Ratios are fine, but could stand for improvement and are improving. The DPR for EPS for 2019 was 69% with 5 year coverage at 123%. The 5 year coverage is high because of an earnings loss in 2015 and low earnings in 2016. The DPR for CFPS for 2019 was 49% with 5 year coverage at 46%. I prefer the CFPS coverage to be 40% or less. The DPR for Free Cash Flow is not calculable because of negative FCF. Both Wall Street Journal and Morningstar agree that FCF has been negative, but do not agree on the exact figures. Analysts expect the FCF to be positive in 2020 after being negative for the last 3 years.

Debt Ratios have room for improvement. The Long Term Debt/Market Cap Ratio for 2019 is 0.53. Even with the recent decline, it is still good at 0.69. The Debt Ratio is fine at 1.48. The Leverage and Debt/Equity Ratios are fine at 3.06 and 2.06 respectively.

The Liquidity Ratios are not as good as I would like. The one for 2019 is 0.59. Even adding in Cash Flow after dividends and current portion of long term debt and current notes payable, it is just 1.38. When the Liquidity Ratio it is below 1.00, it means that current assets cannot cover current debt. This utility has a lot of debt. The Liquidity Ratios have varied a lot over time, but often have been low. It is best when this ratio is 1.50 or better. The final value has been less than 1.50, 6 times in last 20 years.

The Total Return per year is shown below for years of 5 to 29 to the end of 2019. 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.
2014	5	9.12%	7.88%	3.91%	3.98%
2009	10	6.96%	10.95%	6.69%	4.26%
2004	15	6.40%	9.83%	5.77%	4.06%
1999	20	4.94%	14.51%	8.82%	5.69%
1994	25	4.67%	10.28%	5.74%	4.53%
1990	29	5.13%	9.08%	4.96%	4.12%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 12.34, 13.95 and 16.48. The corresponding 10 year ratios are 17.80, 19.10 and 20.74. The corresponding historical ratios are 12.31, 13.99 and 16.03. The current P/E Ratio is 13.00 based on a stock price of $53.32 and 2020 EPS estimate of $4.10. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $51.29. The 10 year low, median, and high median Price/Graham Price Ratios are 1.23, 1.38 and 1.46. The current P/GP Ratio is 1.04 based on a stock price of $53.32. 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 2.05. The current P/B Ratio is 1.87 based on a stock price of $53.32, Book Value of $26,762M, and Book Value per Share of 28.52. The current P/B Ratio is 9% below the 10 year 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 4.30%. The current dividend yield is 6.08% based on dividends of $3.24 and a stock price of $53.32. The current yield is 41% above the historical dividend yield. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median dividend yield of 4.10%. The current dividend yield is 6.08% based on dividends of $3.24 and a stock price of $53.32. The current yield is 48% above the 10 year dividend yield. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 3.71. The current P/S Ratio is 3.53 based on a stock price of $53.32, Revenue estimate for 2020 of $14,191M, Revenue per Share of $15.12 and a stock price of $53.32. The current ratio is 5% 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 that the stock price is cheap to reasonable. You cannot ignore the P/S Ratio test and it is jus showing the price as reasonable. The P/B Ratio test is showing the same. Other good tests, like the dividend yield tests, are showing the stock price as cheap. The value in the dividend yield test is that you are basing this on current values, not values in the past or estimates.

Is it a good company at a reasonable price? I own this stock and feel that it is a good utility to own. The price is cheap to reasonable.

When I look at analysts’ recommendations, I find Strong Buy (7), Buy (8) and Hold (8). The consensus would be a Buy. The 12 month stock price is $72.57. This implies a total return of 42.18% with 36.10% from capital gains and 6.08% from dividends.

See what analysts are saying on Stock Chase. They like this stock and say positive things. Andrew Walker on Motley Fool says the company has a solid dividend paying history. A writer on Simply Wall Street looks at this company’s ROCE. A writer on Simply Wall Street talks about analysts’ projections after the last financials. Anna Zalik on The Conversation talks about this company’s name change.

TC Energy operates as an energy infrastructure company, consisting of pipeline and power generation assets in Canada, the United States, and Mexico. Its web site is here TC Energy Corp.

The last stock I wrote about was about was TransAlta Corp (TSX-TA, NSYE-TAC)) ... learn more. The next stock I will write about will AltaGas Ltd (TSX-ALA, OTC-ATGFF) ... learn more on Monday, March 23, 2020 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.

TransAlta Corp

I just bought 200 shares of TFI International (TSX-TFII, OTC-TFIFF) for my Canadian Trading Account. This is the account I get my money to live on. I am taking things slow and easy.

Sound bite for Twitter and StockTwits is: Dividend Paying Utility. The stock price is probably reasonable. It even maybe cheap. There is currently a lot of insider buying. Shareholders have not done well in this stock for a number of years. Personally, I am not going to buy shares in the company again. See my spreadsheet on TransAlta Corp.

I do not own this stock of TransAlta Corp (TSX-TA, NSYE-TAC), but I used to. I bought this stock in 1987. It was a utility stock and utility stocks were considered to be good investments. I sold some in 2000 as the stock price was below what I had paid for it. I bought some more in February 2009 because it was relatively cheap and it seemed to be recovering. By September 2019, I had finally had enough and saw no hope in this stock doing better. I noticed that MPL Communications had given up hope in stock in 2014 and took it off their Investment Report List.

When I was updating my spreadsheet, I noticed insiders are buying. The Net Insiders Buying (NIB) is 0.25% of outstanding stock and this is a lot. Generally, this is around 0.01%. Buying was by the CEO, CFO, and Chairman. Analysts expect that dividends will begin to rise again with the next 2 years. However, shareholders are not making much in total return with total return for past 5 years at 0.53% per year including a capital loss of 2.48% and dividends at 3.01%.

Analysts seem to feel that this stock will recover. I will do nothing. I have heard such stories before. I replaced this stock with Canadian Utilities. I doubt if I would go back. However, insider have gone from net sellers (2016 to 2018) to net buyers (2019).

The dividend yields are moderate with dividend growth negative. The current dividend yields are moderate (2% to 4% ranges), they have sometimes in the past been good (5% and 6% ranges), but recently they have been low (below 2%). The current dividend yield is moderate at 3%. The 5 year dividend yield is also moderate at 2.41%. The 10 year and historical dividend yields are good at 5.38% and 5.59%. Last year the dividend yield ranged from 1.60% to 2.86%.

Dividends peaked in 2018 and have been traveling south ever since. However, even before 2018 dividends, dividends were also flat a lot of the time. I remember at a Money Show a few years ago that one speaker talked about this company destroying shareholder value for the past 20 years.

The Dividend Payout Ratios are fine, but it would be nice if they earned money consistently to cover dividends. The DPR for EPS for 2019 is 89%. I cannot calculate the 5 year coverage because of lots of years of earnings losses in the past. The DPR for CFPS for 2019 is 6% with 5 year coverage at 12%. This is a low value and therefore a good one. The DPR for Free Cash Flow according the Morningstar values is 10% with 5 year coverage at 22%. Dividend Coverage Ratio for 2019 is 9.58 with 5 year ratio at 4.50. Different sites and the company give different values for FCF.

Debt Ratios are fine especially with recent improvements. The Long Term Debt/Market Cap for 2019 is 1.05 which is too high, but it was higher in the past and is higher now. However, this is stock is down in the current bear market, so the current ratio may not properly reflect the exact position of the company. The Liquidity Ratio is low at 1.20. The Liquidity Ratio has often been low. If you added in cash flow after the dividends the ratio is good at 1.92. The Debt Ratio is good at 1.75. Leverage and Debt/Equity Ratios are fine at 2.34 and 1.34 respectively.

The Total Return per year is shown below for years of 5 to 32 to the end of 2019. 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.
2014	5	-28.05%	0.53%	-2.48%	3.01%
2009	10	-17.97%	-4.70%	-8.87%	4.16%
2004	15	-11.50%	1.80%	-4.34%	6.14%
1999	20	-8.76%	5.56%	-2.09%	7.64%
1994	25	-6.99%	5.86%	-1.77%	7.63%
1989	30	-5.86%	6.31%	-1.42%	7.73%
1987	32	-5.32%	6.32%	-1.36%	7.67%

The 5 year low, median, and high median Price/Earnings per Share Ratios are negative. The corresponding 10 year ratios are 1.87, 3.49 and 4.78. The corresponding historical ratios are 14.90, 16.29 and 21.29. The historical ones are the only ones that make any sense. However, I cannot do a P/E Ratio test as the current P/E Ratio is negative as analysts expect an earnings loss this year.

I get a Graham Price of $5.38. The 10 year low, median, and high median Price/Graham Price Ratios are 1.01, 1.18 and 1.32. The current P/GP Ratio is 1.05 based on a current stock price of $5.67. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year median Price/Book Value per Share Ratio of 1.30. The current P/B Ratio is 0.79 based on a stock price of $5.67, Book Value of $1,985 and Book Value per Share of $7.16. The current ratio is 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 5.59%. The current dividend yield is 3.00% based on dividends of $0.17 and a stock price of $5.67. The current yield is 46% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year median dividend yield of 5.38%. The current dividend yield is 3.00% based on dividends of $0.17 and a stock price of $5.67. The current yield is 44% below the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively expensive.

The 10 year median Price/Sales (Revenue) Ratio is 1.16. The current P/S Ratio is 0.72 based on 2020 Revenue estimate of $2,194M, Revenue per Share of $7.92 and a stock price of $5.67. The current ratio is 39% below the 10 year ratio. This stock price testing suggests that the stock price is relatively cheap.

Results of stock price testing is that the stock price is? The tests are showing rather a mixed result. This is because the company has had problems in the past. We cannot ignore the P/S Ratio testing because it is revenue that drives all other values in the end. However, a company still needs to make money. The lack of growth in the dividend points to the fact that it has not be able to make money. The price is probably reasonable and below the median and is shown by the Graham Price test.

Is it a good company at a reasonable price? I gave up and this company and I will not be purchasing it again. The price is probably reasonable.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (6) and Hold (3). The consensus would be a Buy. The 12 months stock price consensus is $11.65. This implies a total return of $108.47% with 105.47% from capital gains and 3.00% from dividends. Please remember, no one knows when this bear market will be over.

See what analysts are saying on Stock Chase. A couple mention that Brookfield has been brought into this company. Aditya Raghunath on Motley Fool says it is well on track to repeat its glory days. A writer on Simply Wall Street talks about recent insider buying. A writer on Simply Wall Street says the company’s total return has gone up with revenue. The Canadian Press on CTV News talk about the company’s fourth quarter.

TransAlta is an independent power producer based in Alberta, Canada. The company owns more than 70 power plants in Canada, the Western United States, and Australia. Its web site is here TransAlta Corp.

The last stock I wrote about was about was Enbridge Inc (TSX-ENB, NYSE-ENB) ... learn more. The next stock I will write about will be TC Energy Corp (TSX-TRP, NYSE-TRP) ... learn more on Friday, March 20, 2020 around 5 pm. Tomorrow on my other blog I will write about 230 Years of Interest Rates by Taylor and Kangas.... learn more on Thursday, March 19, 2020 around 5 pm.

Also, on my book blog I have put a review of the book Elmer’s Investment Approach by Ryan Goldsman learn more...

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.

Enbridge Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Utility. The price may not be as low as people might think as the P/S Ratio test is showing the stock price above the median. I would like it better if Dividend Payout Ratios and Debt Ratios were improved. See my spreadsheet on Enbridge Inc .

I own this stock of Enbridge Inc (TSX-ENB, NYSE-ENB). I first bought this stock in 2005 and then bought more in 2008 and 2009. This stock was on the Dividend Achievers, the Dividend Aristocrats list and also on Mike Higgs’ list of Canadian Dividend Growth stocks. Enbridge is considered to be a low risk stock.

When I was updating my spreadsheet, I noticed I have done well with this stock. My total return is 12.79% per year with 8.01% per year from capital gains and 4.78% per year from dividends. The 5 year total return is just 1.37% per year with 2.88% per year from capital loss and 4.25% per year from dividends. I also noted that 5 years ago the P/E Ratio was quite high at 43.61.

The dividend yields are moderate with dividend growth mostly moderate. The current dividend yield is good (7% or higher) at 8.45%, but stock prices have been diving. The 5, 10 and historical dividend yields are 4.73%, 3.37% and 3.49%. The dividend growth for the past 5 years has been higher than before at 16.09% per year (good range (15% and higher), but the last dividend increase was for 9.8% for 2020, which is lower also than in the past.

The Dividend Payout Ratios should be improved. DPR for EPS for 2019 was 11% with 5 year coverage at 158%. They give out an Adjusted EPS which has a DPR for 2019 of 111% with 5 year coverage at 102%. They also give out a Distributable Cash Flow and the DPR for 2019 for this is 65% with 5 year coverage at 59%. The DPR for CFPS for 2019 is 76% with 5 year coverage at 52%. The DPR for Free Cash Flow for 2019 is 161% with 5 year coverage at 877%.

Debt Ratios are fine, but the Liquidity could be better. The Long Term Debt/Market Cap Ratio for 2019 is good at 0.57. The Liquidity Ratio for 2019 is 0.55. If you added in cash flow after dividends and add back in the current portion of the long term debt, it is 1.05 a very low value. The Debt Ratio is good at 1.74. The Leverage and Debt/Equity Ratios for 2019 are fine at 2.35 and 1.35.

The Total Return per year is shown below for years of 5 to 29 to the end of 2019. 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.
2014	5	16.09%	1.37%	-2.88%	4.25%
2009	10	14.84%	12.55%	7.82%	4.73%
2004	15	13.24%	12.99%	8.63%	4.36%
1999	20	12.13%	15.13%	10.38%	4.75%
1994	25	10.38%	16.79%	11.29%	5.50%
1989	30	8.89%	11.24%	7.70%	3.54%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 21.36, 25.99 and 30.62. The corresponding 10 year ratios are 23.55, 28.47 and 32.91. The corresponding historical ratios are 17.73, 18.66 and 21.01. The current P/E Ratio is 14.80 based on a stock price of $38.34 and 2020 EPS estimate of $2.56. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $41.27. The 10 year low, median, and high median Price/Graham Price Ratios are 1.51, 1.82 and 2.13. The current P/GP Ratio is 0.93 based on a stock price of $38.34. 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 2.95. The current P/B Ratio is 1.33 based on a Book Value of $58,296M, Book Value per Share of $28.79 and a stock price of $38.34. The current P/B Ratio is 55% 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 3.49%. The current dividend yield is 8.45% based on dividends of $3.24 and a stock price of $38.34. The current dividend yield is 142% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 years median dividend yield of 3.37%. The current dividend yield is 8.45% based on dividends of $3.24 and a stock price of $38.34. The current dividend yield is 151% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 1.48. The current P/S Ratio is 1.53 based on 2020 Revenue estimate of $50,124M, Revenue per Share of $24.75 and a stock price of $38.34. The current ratio is 4.5% above the 10 year ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

Results of stock price testing is that the stock price could be cheap, but may not be. Most of the testing is showing that the stock price is cheap except for the P/S Ratio. The P/S Ratio testing is showing the stock price as being reasonable, but above the median. I do not think you can disregard the P/S Ratio.

Is it a good company at a reasonable price? I still like this company and I will hold on to the shares I now own. However, even though the price maybe reasonable, it would appear not to be cheap and now may not be the time to buy.

When I look at analysts’ recommendations, I find Strong Buy, (9), Buy (6), Hold (11) and Underperform (1). The consensus would be a Buy. The 12 month stock price is $56.74. This implies a total return of 56.44% with 47.99% from capital gains and 8.45% from dividends.

See what analysts are saying about this stock on Stock Chase. Analyst think it is a buy because a pull back on this stock because of energy prices makes no sense. Daniel Da Costa on Motley Fool thinks this stock is currently a buy. A writer on Simply Wall Street looks at insider selling on this stock. A Writer on Simply Wall Street points out that the company is payout too much of its earnings as dividends. John Flesher on ABC News talks about Enbridge, its Great Lakes tunnel and the court challenge.

Enbridge is an energy generation, distribution, and transportation company in the U.S. and Canada. Its pipeline network consists of the Canadian Mainline system, regional oil sands pipelines, and natural gas pipelines. The company also owns and operates a regulated natural gas utility and Canada's largest natural gas distribution company. Additionally, Enbridge generates renewable and alternative energy with 2,000 megawatts of capacity. Its web site is here Enbridge Inc.

The last stock I wrote about was about was Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF) ... learn more. The next stock I will write about will be TransAlta Corp (TSX-TA, NSYE-TAC)) ... learn more on Wednesday, March 18, 2020 around 5 pm. Tomorrow on my other blog I will write about Canadian Tire and Short Sellers.... learn more on Tuesday, March 17, 2020 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 Tire Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. Stock is current relatively cheap. It has not done as well recently as it has longer term. Last dividend increase was lower than it has been in the past 5 years. See my spreadsheet on Canadian Tire Corp.

I own this stock of Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF). In 2000 when I first bought this stock, it was on the Investment Reporter's list of conservative Canadian stocks. I bought stock for my trading account in 2009 because I have done well with it in my Pension Account and it was a consumer stock.

When I was updating my spreadsheet, I noticed I have done well investing in this stock. I have held it for 20 years and my total return is 12.09% per year with 10.09% per year from capital gains and 2.00% from dividends. However, this stock has not done well recently and stock price has gone down the last two years. The 5 year total return is just 4.90% with 2.66% from capital gains and 2.24% from dividends.

The dividend yields are low to moderate with dividend growth good. The current dividend is moderate (2% to 4% ranges). The current dividend is 4.72%. The 5, 10 and historical dividend yields are 1.91%, 1.74% and 1.70%. The dividends in the past were lower. The current dividend growth is good because it is over 15% per year with the last 5 years are 17.22% per year. However, the last increase was lower for 2020 at 9.6%. That puts it into the moderate range.

The Dividend Payout Ratios are fine. The DPR for EPS for 2019 was 33% with 5 year coverage at 29%. The DPR for CFPS for 2019 was 12% with 5 year coverage at 13%. The DPR for Free Cash Flow (using market Watch and WSJ) the ratio is 37% with 5 year coverage at 53%. The Dividend Coverage Ratio for 2019 is 2.68. Both Market Watch and WSJ has much higher FCF than Morningstar. Differing FCF from different sites is a continuing problem with FCF

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio is fine at 0.66. The Liquidity Ratio is good at 1.66. The Debt Ratio is low at 1.39 and I prefer it to be 1.50. The Leverage and Debt/Equity Ratios are a little high at 3.55 and 2.55.

The Total Return per year is shown below for years of 5 to 29 to the end of 2019. 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.
2014	5	17.22%	4.90%	2.66%	2.24%
2009	10	17.32%	11.53%	9.30%	2.22%
2004	15	15.15%	7.93%	6.27%	1.66%
1999	20	12.41%	8.84%	7.27%	1.57%
1994	25	9.81%	11.89%	9.81%	2.08%
1990	29	8.59%	7.68%	6.27%	1.41%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 12.65, 14.27 and 15.67. The corresponding 10 year ratios are 10.85, 12.59 and 14.70. The corresponding historical ratios are 10.45, 13.63 and 15.66. The current P/E Ratio is 6.65 based on a stock price of $96.44 and 2020 EPS estimate of $13.60. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $148.87. The 10 year low, median, and high median Price/Graham Price Ratios are 0.88, 1.00 and 1.11. The current P/GP Ratio is 0.65 based on a stock price of $96.44. 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 1.75. The current P/B Ratio is 1.33 based on a Book Value of $4,456M, Book Value per Share $72.45 and a stock price of $96.44. The current ratio is 24% 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 1.70%. The current dividend yield is 4.72% based on dividends of $4.55 and a stock price of $96.44. The current yield is 178% above the historical one. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median dividend yield of 1.74%. The current dividend yield is 4.72% based on dividends of $4.55 and a stock price of $96.44. The current yield is 171% above the 10 year one. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 0.64. The current P/S Ratio is 0.39 based on 2020 Revenue estimate of $15,322M, Revenue per Share of $249.06 and a stock price of $96.44. The current ratio is 40% below the 10 year 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. All the testing points to this. The current stock price has lost 31% since the end of last year. This stock has fall in the bear market.

Is it a good company at a reasonable price? I have done very well with this stock and I plan to hold on to my shares, although I probably will not buy more because of its weighting in my portfolio. Some people have been preaching its demise because of Amazon and online buying, but Amazon and online buying will probably no take over everything. The company is also getting into online buying. The stock is cheap at present.

When I look at analysts’ recommendations, I find Strong Buy (2), Buy (5), Hold (3) and Sell (1). The consensus would be a Buy. The 12 month stock price consensus is $168.36. This implies a total return of 79.29% with 74.57% from capital gains and 4.72% from dividends. (But who knows when this bear market will be over with.)

See what analysts are saying on Stock Chase. Very different opinions on this company, some are positive and some are not. Daniel Da Costa on Motley Fool thinks this stock is extremely attractive after the recent sell off. A writer on Simply Wall Street says earnings are growing faster than stock price. A writer on Simply Wall Street says dividends are not well covered by cash flow, but I did not see that, but there are different ways of calculating Cash Flow. CTC appoints a new CEO says Business News. Reuters via Financial Post says the company beat recent quarterly profits estimates.

Canadian Tire sells home goods, sporting equipment, apparel, footwear, automotive parts and accessories, and vehicle fuel through a 1,700-store network of company, dealer, and franchisee-operated locations across Canada. Aside from the namesake banner, stores operate primarily under the Mark's, SportChek, Atmosphere, and PartSource monikers. The company acquired Helly Hansen, a Norwegian sportswear and workwear brand, in 2018. The firm also operates and holds majority ownership of a financing arm (Canadian Tire Financial Services; 20% owned by Scotiabank) and a REIT (CT REIT; Canadian Tire owns about 70% of the unit). Its web site is here Canadian Tire Corp.

The last stock I wrote about was about was H & R Real Estate Trust (TSX-HR.UN, OTC-HRUFF) ... learn more. The next stock I will write about will be Enbridge Inc (TSX-ENB, NYSE-ENB) ... learn more on Monday, March 16, 2020 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.

H & R Real Estate Trust

Yesterday, I bought some HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF) for my TFSA. I am using the money in the TFSA as my fooling around money.

Sound bite for Twitter and StockTwits is: Dividend Growth REIT. The stock price is relatively cheap. There has been recent buying by directors at under $21.00. DPRs could be improved. Debt Ratio could be improved. See my spreadsheet on H & R Real Estate Trust.

I do not own this stock of H & R Real Estate Trust (TSX-HR.UN, OTC-HRUFF). Before I started blogging, I was following a number of REITs and this is one I had followed. It also used to be on a dividend list I followed.

When I was updating my spreadsheet, I noticed insiders have started to buy the stock recently when it went under $21.00. All the recent buys are by directors. Also, this REIT has not done well in capital gains over the past 5 years. Over the past 5 years the total return was 3.78% with a capital loss of 0.59% and dividends of 6.36%.

The dividend yields are usually good but are getting high currently with the market falling and the dividend growth low. The current dividend yields are in the good range (5% and 6% ranges) to high range (7% and above) with the current at 7.79%. The 5, 10 and historical yields are 6.46%, 6.25% and 6.01%. The growth is low (below 8%). See the chart below.

The Dividend Payout Ratios are currently too high and needs to be improved. The DPR for EPS for 2019 are too high at 122% with coverage at 108%. Because this is a REIT, we need to look at The DPR for Funds from Operations (FFO) for 2019 which are fine at 79% with 5 year coverage also at 74%. The DPR for Adjusted Funds from Operations (AFFO) for 2019 is too high at 106% with 5 year coverage better at 94%. The DPR for CFPS for 2019 is 56% with 5 year coverage at 53%. The DPR for Free Cash Flow for 2019 is 94% with 5 year coverage at 71%. The Dividend Coverage Ratio for 2019 is 1.06 with a 5 year ratio at 1.40.

Debt Ratios are fine, but there is room for improvement. The Long Term Debt/Market Cap ratio is too high at 1.05. This will only get worse in the current bear market. The Liquidity Ratio is good currently at 2.84 but it can vary a lot and is not really important for REITs. The Debt Ratio is good at 1.95. The Leverage and Debt/Equity Ratios are fine at 2.06 and 1.06.

The Total Return per year is shown below for years of 5 to 23 to the end of 2019. 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.
2014	5	0.44%	5.78%	-0.59%	6.36%
2009	10	6.72%	10.06%	3.17%	6.89%
2004	15	0.69%	6.92%	0.70%	6.21%
1999	20	1.12%	12.85%	3.60%	9.25%
1996	23	3.27%	12.18%	3.30%	8.88%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 17.00, 18.09 and 19.18. The corresponding 10 year ratios are 14.33, 15.96 and 18.21. The corresponding historical ratios are 12.16, 13.19 and 17.50. The current P/E Ratio is 9.96 based on a stock price of $17.72 and 2020 EPS estimate of $1.78. This stock price testing suggests that the stock price is relatively cheap.

Because this is a REIT, we need to look at Funds from Operations (FFO). The 5 year low, median, and high median Price/Funds from Operations are 10.91, 11.61 and 12.83. The corresponding 10 year ratios are 11.31, 12.30 and 13.19. The current P/FFO Ratio is 9.96 based on a stock price of $17.72 and 2020 FFO estimate of $1.78. This stock price testing suggests that the stock price is relatively cheap.

The 5 year low, median, and high median Price/Adjusted Funds from Operations are 13.53, 14.63 and 15.53. The corresponding 10 year ratios are 13.51, 14.87 and 16.40. The current P/AFFO Ratio is 10.80 based on a stock price of $17.72 and 2020 FFO estimate of $1.64. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $31.37. The 10 year low, median, and high median Price/Graham Price Ratios are 0.66, 0.71 and 0.76. The current P/GP Ratio is 0.56 based on a stock price of $17.72. 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 0.93. The current P/B Ratio is 0.72 based on a Book Value of $7,044M, Book Value per Share of $24.57, and a stock price of $17.72. The current ratio is some 23% 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 6.46%. The current dividend yield is 7.79% based on dividends of $1.38 and a stock price of $17.72. The current yield is 21% above the historical median yield. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median dividend yield of 6.01%. The current dividend yield is 7.79% based on dividends of $1.38 and a stock price of $17.72. The current yield is 30% above the 10 year median yield. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 5.37. The current P/S Ratio is 4.00 based on 2020 Revenue estimate of $1,270M, Revenue per Share of $4.43 and a stock price of $17.72. The current ratio is 25% below the 10 year median ratio. I get an historical median dividend yield of 6.46%. The current dividend yield is 7.79% based on dividends of $1.38 and a stock price of $17.72. The current yield is 21% above the historical median yield. 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. All the stock price tests are showing this and there is no problem with any of the tests.

Is it a good company at a reasonable price? This stock will probably do well in the longer term, but at the moment I am worried about the debt level and the coverage of the dividends. It would not be my first choice of a REIT at this time. The stock price is cheap.

When I look at analysts’ recommendations, I find Strong Buy (2), Buy (4) and Hold (2). The consensus would be a Buy. The 12 month stock price is $24.63. This implies a total return of 46.78% with 39.00% from capital gains and 7.79% from dividends.

See what analysts are saying Stock Chase. There are mixed reviews with some analysts liking it and some not. Nelson Smith on Motley Fool thinks that REITs have been unfairly hard hit recently and now is the time to buy this one. A writer on Simply Wall Street says the earnings are shrinking and dividends are flat and you should give this stock a pass for now. A writer on Simply Wall Street feels negatively about debt levels and coverage. Liza Goodheart on The Enterprise Leader talks about recent purchase by a director.

H&R Real Estate Investment Trust is a real estate investment trust principally involved in the ownership of properties in Canada and the U.S. H&R owns and manages a real estate portfolio rather equally divided between property in the Canadian provinces of Ontario and Alberta and in the U.S. Office buildings located primarily in Ontario comprise the majority of H&R's assets, while shopping centers managed by Primaris Management and other retail facilities also make up a considerable share. Its web site is here H & R Real Estate Trust.

The last stock I wrote about was about was Allied Properties Real Estate Investment Trust (TSX-AP.UN, OTC-APYRF) ... learn more. The next stock I will write about will be Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF) ... learn more on Friday, March 13, 2020 around 5 pm. Tomorrow on my other blog I will write about International Investing.... learn more on Thursday, March 12, 2020 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.