IA Financial Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Financial. The stock price is probably relatively cheap. There is lots of insider buying. See my spreadsheet on IA Financial Corp.

I do not own this stock of IA Financial Corp (TSX-IAG, OTC-IDLLF). This was a stock shown as a dividend growth stock on the Canadian All Star List .

When I was updating my spreadsheet, I noticed that there is dramatic difference in total return when you look at total return to the end of 2019 and to the end of May 2020. Generally, they are roughly the same. This stock took off at end of 2019 and in 2019 the stock price went up over 63%. It fell hard in the bear market (56%) and recovered (30%) but not near where it was. It is down 43%.

I noticed also that there was insider buying. There is buying is by CEO and Chairman. The Net Insider buying is at 0.21% of market cap. This is high. You would expect it to be around 0.01%.

The dividend yields are moderate with dividend growth moderate. The dividends have been mostly in the moderate (2% to 4% ranges) during the time I cover this stock which is for 19 years. The current dividend is 4.34%, and is higher than the other yields. The 5, 10 and historical median dividend yields at 2.71%, 2.80% and 2.51%. Since dividend increases were restarted in 2014, they have been in the moderate (8% to 14% ranges). See the chart below. However, the most recent dividends increase for 2020 is lower at 7.8%.

The Dividend Payout Ratios (DPR) are fine. The DPR for EPS for 2019 is 28% with 5 year coverage at 28%. The DPR for CFPS for 2019 cannot be calculated due to a net cash flow, but the 5 year coverage is at 60%. The DPR for Free Cash Flow is 70% with 5 year coverage at 56%. The bad showing for DPR for CF is because of increased liabilities for insurance contracts.

Debt Ratios are fine. Since this is a financial company, I am looking at the Liabilities/Covering Assets Ratio. For 2019 it is good at 0.77. The Liquidity Ratio, which is not very important for financials) is good at 1.78 for 2019. The Debt Ratio for 2019 is 1.09 and is good for a Financial. The Leverage and Debt/Equity Ratios are 2019 are 13.15 and 12.05 and are fine for a financial.

The Total Return per year is shown below for years of 5 to 19 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	10.74%	12.58%	9.93%	2.65%
2009	10	6.06%	10.88%	8.28%	2.60%
2004	15	10.22%	9.05%	6.62%	2.43%
2000	19	9.78%	9.03%	6.83%	2.20%

The Total Return per year is shown below for years of 5 to 19 to the end of May 2020. As you can see, the total return to date is a lot lower than for the total return to the end of last year.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2015	5	10.74%	1.96%	-1.77%	3.73%
2010	10	6.06%	4.26%	0.92%	3.34%
2005	15	10.22%	5.47%	2.21%	3.26%
2000	20	9.78%	6.51%	3.49%	3.02%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 7.45, 9.19 and 11.18. The corresponding 10 year ratios are 9.39, 11.31 and 12.43. The corresponding historical ratios are 10.30, 11.56 and 13.14. The current P/E Ratio is 10.35 based on a stock price of $44.72 and 2020 EPS estimate of $4.32. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $74.57. The 10 year low, median, and high median Price/Graham Price Ratios are 0.62, 0.75 and 0.83. The current P/GP Ratio is 0.60 based on a stock price of $44.72. 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 1.11. The current P/B Ratio is 0.78 based on a stock price of $44.72, Book Value of $6,120M and a Book Value per Share of $57.21. The current P/B Ratio is 30% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median Price/Cash Flow per Share Ratio of 5.85. The current P/CF Ratio is 2.31 based on last 12 months Cash Flow of $2073, Cash Flow per Share of $19.38 and a stock price of $44.72. The current ratio is 61% below the 10 year ratio. This stock price testing suggests that the stock price is relatively cheap. The last 12 month cash flow is unusually high due to lower contract liabilities and investments gains.

I get an historical median dividend yield of 2.51%. The current dividend yield is 4.34% based on a stock price of $44.72 and dividends of $1.94. The current dividend yield is 73% 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 2.80%. The current dividend yield is 4.34% based on a stock price of $44.72 and dividends of $1.94. The current dividend yield is 55% 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 0.53. The current P/S Ratio is 0.38 based on last 12 months Revenue of $12,676M, Revenue per Share of $118.50 and a stock price of $44.72. The current ratio is 28% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

Results of stock price testing is that the stock price is probably cheap. The dividend yield tests show the stock price is relatively cheap and this is confirmed by the P/S Ratio test. The other tests are showing the same results. The only problem I see is with the P/CF Ratio test and this cash flow is unusually high for the first quarter of 2020.

Is it a good company at a reasonable price? I think that his is a good company. It is a dividend growth stock and is on the Dividend Aristocrat list. The stock price is currently relatively cheap.

When I look at analysts’ recommendations, I find Strong Buy (3), Buy (5) and Hold (2). The consensus would be a Buy. The 12 month stock price is $53.40. This implies a total return of $23.75% with 19.41% from capital gains and 4.34% from dividends based on a stock price of $44.72.

There is not much in the way of recent comments on Stock Chase but the ones there are positive. Joey Frenette on Motley Fool says it is a great time to buy this stock. A writer on Simply Wall Street says this stock is selling at a reasonable price. A writer on Simply Wall Street says that this company has a credible dividend history. Megan Harman on Investment Executive talks about the company’s recent acquisitions.

IA Financial Corp is a life and health insurance company. It offers life and health insurance products, savings and retirement plans, mutual funds, securities, auto and home insurance, mortgages, and others. Its web site is here IA Financial Corp.

The last stock I wrote about was about was Ritchie Bros Auctioneers Inc (TSX-RBA, NYSE-RBA) ... learn more. The next stock I will write about will be Hardwoods Distribution Inc (TSX-HDI, OTC-HDIUF) ... learn more on Monday, June 1, 2020 around 5 pm.

Also, on my book blog I have put a review of the book America by Robert Goodwin 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.

Ritchie Bros Auctioneers Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. The stock price is probably reasonable. It has good Dividend Payout Ratios. See my spreadsheet on Ritchie Bros Auctioneers Inc.

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

When I was updating my spreadsheet, I noticed that although the stock price went down when all stock prices did, this stock price is back to where it was at the end of 2019. Their first quarter of 2020 is not bad. Their revenue is down a bit and their earnings are up a bit. This company reports in US$ and their dividends are paid in US$.

The dividend yields are low to moderate with dividend growth low. The current dividend yield is just in the Low range (below 2%) at 1.98%. The 5 and 10 year median dividend yields are in the moderate range at 2.15% and 2.14% with the historical median dividend yield low (less than 2%).

Dividend growth has been low (under 8%) in US$ and we should be looking at it in US$ because dividends are paid in US$. See charts below. However, the last increase which occurred this year was higher at 11.1% and this would put it into the moderate range (8% to 14% ranges).

The Dividend Payout Ratios (DPR) are good. The DPR for EPS for 2019 was 56% with 5 year coverage at 64%. The DPR for CFPS for 2019 was 32% with 5 year coverage at 39%. The DPR for Free Cash Flow for 2019 was 28% with 5 year coverage at 45%.

Debt Ratios are fine. The Long Term Debt Market Cap for 2019 is 0.13 and is even lower currently at just 0.07. The Liquidity Ratio for 2019 is at 1.36. If you add in cash flow after dividends, the ratio is much better at 1.85. The Debt Ratio is good at 1.69. The Leverage and Debt/Equity Ratios are fine at 2.47 and 1.47.

The Total Return per year is shown below for years of 5 to 21 to the end of 2019 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.
2014	5	9.52%	14.59%	12.28%	1.31%
2009	10	9.52%	10.84%	8.93%	1.91%
2004	15	13.46%	12.06%	10.04%	2.02%
1999	20	13.55%	12.89%	11.19%	1.70%
1998	21		12.00%	10.48%	1.52%

The Total Return per year is shown below for years of 5 to 21 to the end of 2019 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.
2014	5	7.07%	11.92%	9.82%	2.10%
2009	10	7.18%	8.59%	6.71%	1.88%
2004	15	3.71%	11.67%	9.49%	2.18%
1999	20	13.51%	13.78%	11.78%	2.00%
1998	21		13.18%	11.35%	1.82%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 25.31, 29.30 and 33.30. The corresponding 10 year ratios are 25.35, 29.77 and 34.18. The corresponding historical ratios are 25.35, 29.66 and 33.06. These are quite consistent. The current P/E Ratio is 32.57 based on a stock price of $56.60 and 2020 EPS estimate of $1.74 (1.24 US$). This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in CDN$.

I get a Graham Price of $14.87. The 10 year low, median, and high median Price/Graham Price Ratios are 2.02, 2.40 and 2.75. The current P/GP Ratio is 3.81 based on a stock price of $56.60. This stock price testing suggests that the stock price is relatively expensive. This testing is in CDN$.

I get a 10 year median Price/Book Value per Share Ratio of 4.29. The current P/B Ratio is 5.30 based on a Book Value of $860M, Book Value per Share of $7.76 and a stock price of $41.10. The current ratio is 23% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. You will get a similar result in CDN$.

I get a 10 year median Price/Cash Flow per Share Ratio of 17.96. The current P/CF Ratio is 63.23 based on 2020 CFPS estimate of $0.65, Cash Flow of $70.33 and a stock price of $41.10. The current ratio is 252% higher than the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. You will get a similar result in CDN$.

I get an historical median dividend yield of 1.97%. The current dividend yield is 1.98% based on dividends of $1.12 (0.80 US$) and a stock price of $56.60. The current dividend yield is 0.6% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and at the median. This testing is in CDN$.

I get a 10 year median dividend yield of 2.14%. The current dividend yield is 1.98% based on dividends of $1.12 (0.80 US$) and a stock price of $56.60. The current dividend yield is 7.5% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in CDN$.

The 10 year median Price/Sales (Revenue) Ratio is 5.34. The current P/S Ratio is 3.58 based on 2020 Revenue estimate of $1,243M, Revenue per Share of $11.49 and a stock price of $41.10. The current P/S Ratio is 33% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$. You will get a similar result in CDN$.

Results of stock price testing is that the stock price is probably reasonable. The historical median and 10 year median dividend yield tests show the stock price as relatively reasonable with the P/S Ratio testing show the stock price as relatively cheap. I know that the P/B Ratio and P/GP Ratio tests show that the stock price is relatively expensive and I see nothing wrong with these tests. For the P/CF Ratio test, I wonder about the very low CFPS estimates.

Is it a good company at a reasonable price? I think that this is a good company and has produced some good long term results. It would be a good stock to have when building a dividend portfolio. The stock price is probably reasonable. Although, I must admit the P/B Ratio is very high.

When I look at analysts’ recommendations, I find Strong Buy (3), Buy (2), Hold (5) and Underperform (1). The consensus would be a Buy. The 12 month stock price if $44.33 US$ or $62.13 CDN$. This implies a total return of 11.75% with 9.77% from capital gains and 1.98% from dividends in CDN$.

On Stock Chase there are no recent entries but most are complementary. Adam Othman on Motley Fool says this business is recession-resistant. A writer on Simply Wall Street says that this company’s higher than its industry’s P/E Ratio says that there is optimism towards this stock. A writer on Simply Wall Street says the dividend is well covered by earnings and cash flow. Maurice Goldstein on The Enterprise Leader says that some institutions have raised their stakes in this company.

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

The last stock I wrote about was about was Reitmans (Canada) Ltd (TSX-RET.A, OTC-RTMAF) ... learn more. The next stock I will write about will be IA Financial Corp (TSX-IAG, OTC-IDLLF) ... learn more on Friday, May 29, 2020 around 5 pm. Tomorrow on my other blog I will write about Top Canadian Stocks.... learn more on Thursday, May 28, 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.

Reitmans (Canada) Ltd

Sound bite for Twitter and StockTwits is: Cheap Consumer Stock. Stock price is relatively cheap and it is cheap for a reason. You can see from the chart on total return that the current stock price is lower than it was some 32 years ago. See my spreadsheet on Reitmans (Canada) Ltd.

I own this stock of Reitmans (Canada) Ltd (TSX-RET.A, OTC-RTMAF). I bought this company in September 2013. It was in financial difficulties and so was quite cheap. I believed it would recover, but I am beginning to wonder now if it will recover. The owners are still trying.

When I was updating my spreadsheet, I noticed that they have suspended their dividends after paying them for over 30 years that I know of. This stock reached its height in 2007 at around 26.59, and had another high of 2010 of $18.89, but has gone down ever since. On the way to the first high it split 3 times. Also, Fairfax Financial Holdings Limited sold off their shares in August 2019.

They have suspended their dividends. From my records I know that they have paid dividends for the past 32 years. The dividend growth has varied. Their dividends were often flat and they had decreases in the past, but they consistently had paid dividends until now. Currently shareholders have only made any money on this stock because of dividends.

The Dividend Payout Ratios (DPR) no longer matter at this point as dividends are suspended. When they were paying dividends, they had good DPRs for EPS until 2011 but because of earnings losses this DPR has not been good since. However, they always had good cash flow to pay dividends. Even in 2019, their DPR for CFPS was good at 12% with 5 year coverage at 23%.

Debt Ratios are fine but have deteriorated recently. The Liquidity Ratio for 2019 is low at 1.34. This ratio was mostly much higher, but has varied and their 5 year median is 2.64. The Debt Ratio for 2019 is also lower than it has been at 1.53 and it has a 5 year median of 3.15. The Leverage and Debt/Equity Ratios are higher than they have been in the past with the 2019 ratios at 2.89 and 1.89 and 5 year medians at 1.41 and 0.41.

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	-5.59%	-26.02%	-31.53%	5.51%
2009	10	-14.52%	-16.75%	-23.43%	6.69%
2004	15	-2.06%	-6.22%	-15.42%	9.20%
1999	20	3.19%	12.51%	-3.88%	16.39%
1994	25	3.40%	11.17%	-2.04%	13.20%
1989	30	2.83%	8.60%	-1.83%	10.43%
1987	32	2.65%	7.79%	-1.82%	9.62%

The 5 year low, median, and high median Price/Earnings per Share Ratios are all negative. The corresponding 10 year ratios are 25.2, 32.03 and 20.94. The corresponding historical ratios are 10.16, 13.05, and 15.47. The current P/E Ratio is negative so I cannot do this test. There are no estimates available and the only EPS I can use is for the last 12 months, which is negative.

I get a Graham Price of $3.13 but it is just an estimate because of the lack of recent positive EPS recently. The 10 year low, median, and high median Price/Graham Price Ratios are 0.96, 1.14 and 1.48. The current P/GP Ratio is 0.03 based on a stock price of $0.08. 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 1.02. The current P/B Ratio is 0.02 based on a stock price of $0.08, Book Value of $194M and Book Value per Share of $3.97. The current ratio is 98% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median P/CF Ratio of 7.81. The current P/CF Ratio is 0.05 based on last 12 month CFPS of $1.58, Cash Flow of $77.2M, and a stock price of $0.08. The current ratio is 99% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I cannot do any dividend yield test because the dividends have been suspended.

The 10 year median Price/Sales (Revenue) Ratio is 0.39. The current P/S Ratio is 0.004 based on last 12 months revenue of $869M, Revenue per share of $17.79 and a stock price of $0.08. The current ratio is 99% 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. For the tests I can do, the stock price is coming up as relatively cheap.

Is it a good company at a reasonable price? This stock is relatively cheap. However, it is cheap for a reason. It is now under creditor protection. The company is hopeful that it can emerge from this process. It was having problems prior to the Covid 19, but the Covid 19 has might have finally killed the company.

When I look at analysts’ recommendations, I find one analyst that gives it a ranking of Hold on Wall Street Journal. This stock has few if any analysts following it as it is doing so badly.

The company announces its plan to get protection under the Companies' Creditors Arrangement Act and restructure in a Press Release. The company gets a court order under Companies' Creditors Arrangement Act in a Press Release. There are a couple of entries on Stock Chase. Nelson Smith on Motley Fool talks about this company entering bankruptcy protection and who might be next. A writer on Simply Wall Street points out that a company that is not earning profit and cannot grow their revenue should be avoided. The Canadian Press announced in the Toronto Star the sale of Reitman’s stock by Fairfax Financial. Benj Gallander of the Contra the Heard Investment Letter gives his thoughts on Reitmans on BNN Bloomberg.

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

The last stock I wrote about was about was HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF) ... learn more. The next stock I will write about will be Ritchie Bros Auctioneers Inc (TSX-RBA, NYSE-RBA) ... learn more on Tuesday, May 27, 2020 around 5 pm. Tomorrow on my other blog I will write about Weekends .... learn more on Tuesday, May 26, 2020 around 5 pm.

Also, on my book blog I have put a review of the book Origins of a Journey by Daniel Grogan 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.

HLS Therapeutics Inc

Sound bite for Twitter and StockTwits is: Dividend Paying Health Care. The stock price seems relatively expensive currently. It has yet to make a profit. See my spreadsheet on HLS Therapeutics Inc.

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

When I was updating my spreadsheet, I noticed that their revenue had been growing fast although it has recently stopped growing. They also have yet to make a profit. They did start a dividend late in 2018, so they are probably expecting to make a profit soon. Analysts expected a small profit in 2019, and now expect one again this year.

The dividend yields are low with dividend growth not yet started. The current dividend is low (below 2%) at 1.04%. The median dividend yield is also low at 1.34%. There has been no dividend increases to date, but this will at least have to wait they get a positive EPS.

The Dividend Payout Ratios (DPR) are for CF is fine. The DPR for EPS can not be calculated because of only EPS losses to date. The DPR for CFPS is 19% with 3 years coverage at 13%. The DPR for Free Cash Flow for 18% with 5 year coverage at 5%.

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2019 is 0.16 and the current one is 0.21. These are both fine. The Liquidity Ratio for 2019 is low at 1.34, but add in cash flow after dividends and it is fine at 1.80. The Debt Ratio for 2019 is good at 2.26 with 5 year median at 2.03. The Leverage and Debt/Equity Ratio for 2019 is 1.79 and 0.79 respectively and these are good.

The Total Return per year is shown below for years of 4 years 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	4	0.00%	12.86%	12.58%	0.28%

The 5 year low, median, and high median Price/Earnings per Share Ratios are all negative, so this test cannot be done. Since there are no positive EPS, the Price/Graham Price testing cannot be done.

I get a 5 year median Price/Book Value per Share Ratio of 1.27. The current P/B Ratio is 2.49 based on a Book Value of $170M, Book Value per Share of $5.34 and a stock price of $13.82. The current P/B Ratio is some 104% above the 5 year ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. You would get a similar result in CDN$. This stock has only been around just over 5 years.

I get a 5 year median Price/Cash Flow per Share Ratio of 9.22. The current P/CF Ratio is 18.69 based on last 12 month Cash Flow of $23M, CFPS of $0.74 and a stock price of $13.82. The current P/CF Ratio is 103% above the 5 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. You would get a similar result in CDN$. This stock has only been around just over 5 years.

I get an historical median dividend yield of 1.34%. The current dividend yield is 1.04% based on dividends of $0.20 and a stock price of $19.13. The current dividend yield is 22% below the historical dividend yield. This testing is in CDN$. Since the historical dividend yield period is less than 10 years, there is no point in doing a 10 year median dividend yield test.

The 5 year median Price/Sales (Revenue) Ratio is 4.12. The current P/S Sales Ratio is 7.37 based on 2020 Revenue of $59.5M, Revenue per Share of $1.87 and a stock price of $13.82. The current dividend yield is 79% above the 5 year ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. You would get a similar result in CDN$. This stock has only been around just over 5 years.

Results of stock price testing is that the stock price is relatively expensive. The dividend yield test is showing the stock price as relatively expensive and the P/S Ratio test confirms this. The other tests I can do of P/CF Ratio and P/B Ratio says the same thing and there is nothing wrong with these tests.

Is it a good company at a reasonable price? I still like this company even though I got it through a reverse takeover. I am going to hold on to my shares although I do not have much. I like to see where it goes. This is a risky stock and that is not in any doubt. At the moment, I think it is relatively expensive although it is growing quickly.

When I look at analysts’ recommendations, I find Strong Buy (2) and Buy (2) on Reuters Refinitiv Stock Report. The consensus would be a Strong Buy. The 12 month stock price consensus is $20.70 US$ or $29.17 CDN$. This implies a total return of 53.39% with 53.35% from capital gains and 1.4% from dividends.

There are no entries on Stock Chase. Ambrose O'Callaghan on Motley Fool thinks that this stock is worthy of your attention. The executive overview on Simply Wall Street gives it 2 stars out of 5. A writer on Simply Wall Street thinks investing in the company is risky. A writer on Wall Street talks about ownership. A lot more Hedge Funds own this than institutions. The company talks about a Therapeutic trial by the company on Newswire.

HLS Therapeutics Inc is a specialty pharmaceutical company. It is focused on the acquisition and commercialization of branded pharmaceutical products in the North American markets. The company is focused on treatment products for the central nervous system (CNS), and cardiovascular specialties. The company operates in Canada and the United States. Its web site is here HLS Therapeutics Inc.

The last stock I wrote about was about was Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF) ... learn more. The next stock I will write about will be Reitmans (Canada) Ltd (TSX-RET.A, OTC-RTMAF) ... learn more on Monday, May 25, 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.

Pizza Pizza Royalty Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. They were sort of growing the dividends before the Covid problem. Now they have cut the dividend. I seem to be the only one worried about PPL ability to pay royalties. The accounting is complex and I do not like complexity. See my spreadsheet on Pizza Pizza Royalty Corp.

I do not own this stock of Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF). A number of people have recommended this stock, so I decided to take a look at it. It was on once on John Heinzl's Dividend Hog Portfolio, but has since been taken off.

When I was updating my spreadsheet, I noticed what I hate about analyzing this stock is that it is complex. You have to look not only at the PZA stock’s financials but also the financials for Pizza Pizza Limited (PPL). I never like complexity. It is too easy for me to miss something and it is too easy for a company to hide something. PPL pays a royalty to PZA based on sales, so you have to be sure that PPL is in a position to pay that royalty. Also, PPL owns current 23% of PZA.

My son likes pizza and I asked him about what he thought of this company’s pizza. He said that it was eatable. (Talk about damming with faint praise.) He said that they sometimes have good deals, but then so do other pizza places. I asked what he disliked and he said he did not like the crust and they could be stingy with the cheese. However, he also said that when they have their pizza at movie theatres and special events, it is more expensive but it is a much better product. He said he wished that they did the same thing in their regular outlets.

They have cut their dividends by 30% because of the Covid 19 lockdown and lower current sales. See their announcement here. This stock has also been falling since its high in 2017. It now only has a positive return since inception because of dividend payments.

The dividend yields are good to high with dividend growth nonexistent to low. The current yield is not that high compared to past times, but also the company has just decreased their dividends by 30%. The current dividend is high (7% and above) at 7.15%. The 5 and 10 year median dividends are good (5% and 6% ranges) at 5.71% and 6.65%. The historical median dividend is high at 7.92%.

The Dividend Payout Ratios (DPR) for PZA are fine, but I think that the only ones that count are for PPL. The DPR for 2019 for EPS is 101% with 5 year coverage at 99%. The DPR for CFPS for 2019 is 74% with 5 year coverage at 75%. The DPR for Free Cash Flow for 2019 is 102% with 5 year coverage at 100%.

The Royalty Payout Ratios (DPR) for PPL are too high. The RPR for PPL for earnings is 93.5% with 5 year coverage at 91.5%. As far as I can see, PPL’s cash flow cannot cover the royalty payments to PZA and has not been able to do so for the past 10 years. The payout ratio for 2019 is 877%. As far as I can see there is no FCF for PPL.

Debt Ratios for PZA are fine, but the important ones are for PPL. The Long Term Debt/Market Cap Ratio is 0.20. The Debt Ratio for 2019 is 4.89. The Intangible Assets/Market Cap Ratio of PZA is 1.46. Some 99% of the assets of PZA depend on PPL. The Liquidity Ratio for 2019 is 2.16. The Debt Ratio for 2019 is 4.89. The Leverage and Debt/Equity Ratios for 2019 are 1.77 and 0.36.

Debt Ratios for PZA are not satisfactory. The Long Term Debt (PPL)/Market Cap (PZA) is 0.82. The Liquidity Ratio for 2019 is 0.83 (and is too low because current assets cannot cover current liabilities). The Debt Ratio for 2019 is 0.61. If you add back in Deferred Gain (basically money they got but have not earned), the ratio is still low at 1.37, but at least over 1.00.

The Total Return per year is shown below for years of 5 to 14 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	1.39%	-0.01%	-6.94%	6.93%
2009	10	-0.83%	13.21%	3.13%	10.08%
2005	14	0.81%	8.26%	-0.17%	8.42%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 14.27, 17.36 and 19.16. The corresponding 10 year ratios are 14.19, 15.97 and 18.15. The corresponding historical ratios are 12.85, 15.14 and 17.00. The current P/E Ratio is 9.87 based on a stock price of $8.39 and 2020 EPS of $0.85. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $12.63. The 10 year low, median, and high median Price/Graham Price Ratios are 0.93, 1.04 and 1.17. The current P/GP Ratio is 0.66 based on a stock price of $8.39. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median Price/Book Value per Share Ratio of 1.46. The current P/B Ratio is 1.01 based on a Book Value of $205M, Book Value per Share of $8.34, and a stock price of $8.39. The current ratio is 31% below the 10 year ratio This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median Price/Cash Flow per Share Ratio of 11.19. The current P/CF Ratio is 7.22 based on Cash Flow of $28.6M, Cash Flow per Share estimate for 2020 of $1.16 and a stock price of $8.39. The current ratio is 36% 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 7.92%. The current dividend yield is 7.15% based a dividend of $0.60 (after the recent cut) and a stock price of $8.39. The current dividend yield is 9.7% below the historical dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a 10 year median dividend yield of 6.65%. The current dividend yield is 7.15% based a dividend of $0.60 (after the recent cut) and a stock price of $8.39. The current dividend yield is 7.6% above the 10 year 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 0.54 for Royalty System Sales. The current P/S Ratio is 0.40 based on 2020 Sales estimate of $513M, Sales per Share of $20.84 and a stock price of $8.39. The current ratio is 26% 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. The P/S Ratio test showing the stock price as cheap does not line up with the dividend yield tests because dividends have recently been cut. There are no problems that I can see with the rest of the tests which are showing the stock price as cheap.

Is it a good company at a reasonable price? I must admit I worry about the ability of Pizza Pizza Limited to pay the royalties. They seem to be paying out a very high percentage of their income. The cash flow is complex. All the accounting is complex because PPL owns 23% of PZA and so really does not have to pay the full royalties. I took that into account when looking at cash flow though and the results were not good. If I missed something, then that is even a better reason for me not to invest in this company if I do not understand the accounting. This is a company I have no plans to invest in.

When I look at analysts’ recommendations, I find a Buy (1) recommendation. It seems only one analyst is following this stock. The consensus would be a Buy. The 12 month stock price consensus is $9.00. This implies a total return of 14.42% with 7.15% from dividends and 7.27% from capital gains.

See what analysts are saying on Stock Chase . The last 5 recommendations are Don’t Buy. Vineet Kulkarni on Motley Fool thinks the company is better place for recovery than regular restaurants. A writer on Simply Wall Street likes that this company’s beta is close to the market’s. A writer on Simply Wall Street does not like the payout ratios. See the company’s review of the first quarter of 2020 on Newswire.

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

The last stock I wrote about was about was Canadian Utilities Ltd (TSX-CU, OTC-CDUAF) ... learn more. The next stock I will write about will be HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF) ... learn more on Friday, May 22, 2020 around 5 pm. Tomorrow on my other blog I will write about Top 100 Dividend Stocks.... learn more on Thursday, May 21, 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 Utilities Ltd

Sound bite for Twitter and StockTwits is: Dividend Growth Utility. The stock price is probably cheap to reasonable. The management obviously expect slower growth because their dividend increase is much lower this year. See my spreadsheet on Canadian Utilities Ltd.

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

When I was updating my spreadsheet, I noticed until 2011, the dividend increases were in the low range (below8%). From 2012 to 2018, they were in the moderate range (8% to 14% ranges) with most begin in the 9 and 10% ranges. The last two dividend increases have been lower with the one for 2019 at 7.5% and the one for 2020 at just 3%. I do have records going back to 1988 which shows that this company has a long history of dividend increases.

The dividend yields have been moderate with dividend growth moderate. The current dividend is in the good range of (5% to 6% ranges) at 5.76%. The 5, 10 and historical dividend yields are moderate (2% to 4% ranges) at 3.67%, 3.16% and 3.71%. The dividend growth has been in the moderate range (8% to 14% ranges) lately as you can see from the chart below. However, the last increase which was in 2020 was lower at 3%.

The Dividend Payout Ratios (DPR) are fine. The DPR for EPS for 2019 is 52% with 5 year coverage at 72%. The DPR for CFPS is 25% with 5 year coverage at 21%. For Free Cash Flow, none of the 3 sites I looked at agree on what it is. Using Morningstar from WebBroker I get a DPR for FCF of 188% with 5 year coverage of 297%. Using FCF is a new way of looking at dividend coverage, but has not turned out to be a great way when people disagree what the FCF is. It would seem using FCF is all the rage currently.

Debt Ratios are fine. The Long Term Debt/Market Cap is ok for 2019 at 0.82, but rises currently to 1.07 because of the decline of the stock price. It is common for utilities to have a lot of debt, but this ratio can look bad in a bear market. At this point, I am not concerned. The Liquidity Ratio for 2019 is very good at 2.32, although this has varied greatly over time. The 5 year median is just 1.32. The Debt Ratio for 2019 is 1.53 with a 5 year median at 1.52. The Leverage and Debt/Equity Ratios are 2019 are 2.90 and 1.90 and are fine. The 5 year median are 2.92 and 1.92.

The Total Return per year is shown below for years of 5 to 31 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	9.58%	2.68%	-0.87%	3.55%
2009	10	9.14%	9.94%	6.00%	3.94%
2004	15	8.04%	10.52%	6.57%	3.95%
1999	20	7.09%	11.43%	7.20%	4.23%
1994	25	6.38%	12.65%	7.79%	4.85%
1989	30	5.54%	11.35%	6.78%	4.57%
1988	31	5.41%	11.76%	6.93%	4.83%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 14.91, 17.24 and 19.56. The corresponding 10 year ratios are 14.35, 16.00 and 17.76. The corresponding historical ratios are 10.73, 12.93 and 14.86. The current P/E Ratio is 15.34 based on a stock price of $30.21 and 2020 EPS estimate of $1.97. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $29.61. The 10 year low, median, and high median Price/Graham Price Ratios are 1.13, 1.26 and 1.42. The current P/GP Ratio is 1.02 based on a stock price of $30.21. 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 2.19. The current P/B Ratio is 1.53 based on a stock price of $30.21, Book Value of $5,405M and a Book Value per Share of $19.78. The current P/B Ratio is 30% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median P/CF Ratio of 6.35. The current P/CF Ratio is 5.52 based on 2020 CFPS estimate of $5.47 and a stock price of $30.21. The current ratio is 13% 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 3.71%. The current dividend yield is 5.76% based on dividends of $1.74 and a stock price of $30.21. The current dividend yield is 55% 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 3.16%. The current dividend yield is 5.76% based on dividends of $1.74 and a stock price of $30.21. The current dividend yield is 83% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 2.66. The current P/S Ratio is 2.34 based on 2020 Revenue estimate of $3,532M, Revenue per Share of $12.93, and a stock price of $30.12. 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 cheap to reasonable. The dividend yield test is showing the stock price as cheap, but the P/S Ratio does not confirm that, but the P/S Ratio says that the stock price is relatively reasonable and below the median. The P/B Ratio is a good test and it says that the stock is relatively cheap. There are no problems with any of the tests that I can see.

Is it a good company at a reasonable price? Certainly, the stock price is reasonable and it might even be on the cheap side. This is a good dividend growth utility stocks with a long reputation of giving out more in dividends each year.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (1), and Hold (7). The consensus would be a Hold. The 12 month stock price is $36.31. This implies a total return of $25.96% based on a stock price of $30.21, with 20.19% from capital gains and 5.76% from dividends. The expected total return does not match an analyst recommendation of Hold.

See what analysts are saying on Stock Chase. Reviews are mixed but there are few reviews of this important Canadian Utility. The problem with Stock Chase is the current owners bought it from the originators of this site and now want you to pay for information. Nelson Smith on Motley Fool thinks would be a great stock for retiring baby boomers. Aditya Raghunath on Motley Fool also thinks this is a great stock for retirees. A writer on Simply Wall Street has some concern about this company’s debt levels. A writer on Simply Wall Street says that the P/E Ratio has been rising lately but it is still below the industry’s average. For people who like such things on Yahoo Finance is the transcript from a recent earnings conference call.

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

The last stock I wrote about was about was Mullen Group Ltd (TSX-MTL, OTC-MLLGF) ... learn more. The next stock I will write about will be Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF) ... learn more on Wednesday, May 20, 2020 around 5 pm. Tomorrow on my other blog I will write about How I Handle Booms and Busts .... learn more on Tuesday, May 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.

Mullen Group Ltd

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. The stock price is relatively cheap. They cut dividends for 3 months (so far) this year. There is insider buying. The Debt Ratios are good. See my spreadsheet on Mullen Group Ltd.

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

When I was updating my spreadsheet, I noticed that I have lost money lately on this stock. My loss is at 15.86% per year for this stock I have held for 5 years. There is lots of insider buying going on including with directors and CFO.

The dividend yields have been mostly in the moderate to good ranges with dividend growth low to non-existent. The current dividend yield is high (above 6%) at 11.11%. The 5, 10 and historical dividend yields fall into the moderate range (2% to 4% ranges) at 4.13%, 4.60% and 4.06%.

The company started as an income trust and when they became a corporation, they cut the dividend over 70%. They started dividend increases again in 2011, but probably too fast and too soon. They started dividend cutting again in 2014. For this year they said they will not be paying dividends for the 3 months of April, May, and June. It is a monthly dividend.

The Dividend Payout Ratios (DPR) are fine, but DPR for EPS needs to improve. The DPR for EPS for 2019 was 87% with 5 year coverage at 215%. The DPR is expected to rise to 562% this year because they are not expected to earn much. The DPR for CFPS for 2019 was 31% with 5 year coverage at 31% also. This is a good rate. The DPR for Free Cash Flow for 2019 is 66% with 5 year coverage at 62%. Although Morningstar and Wall Street Journal do not agree on what the FCF is.

Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2019 is 0.48. The Liquidity Ratio for 2019 is current quite high and therefore quite good at 3.29. The Debt Ratio is high and good at 2.10. Leverage and Debt/Equity Ratios are low and good at 1.91 and 0.91 respectively.

The Total Return per year is shown below for years of 5 to 22 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	-12.94%	-11.05%	-15.34%	2.88%
2009	10	1.84%	0.94%	-5.52%	2.15%
2004	15	8.91%	3.99%	-3.82%	2.53%
1999	20	8.24%	11.09%	1.79%	2.21%
1997	22		8.77%	1.28%	2.21%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 23.17 27.50 and 31.83. The corresponding 10 year ratios are 13.46, 15.78 and 18.72. The corresponding historical ratios are 11.82, 14.90 and 18.58. The current P/E Ratio is 67.50 based on a stock price of $5.40 and 2020 EPS estimate of $0.08. This stock price testing suggests that the stock price is relatively is relatively expensive.

I get a Graham Price of $3.93. The 10 year low, median, and high median Price/Graham Price Ratios are 1.06, 1.30 and 1.54. The current P/GP Ratio is 1.37 based on a stock price of $5.40. 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 1.95. The current P/B Ratio is 0.63 based on a stock price of $5.40, Book Value per Share of $8.60, and Book Value of $893M. The current P/B Ratio is 68% below the 10 year ratio. This stock price testing suggests that the stock price is relatively is relatively cheap.

I get an historical median dividend yield of 4.06%. The current dividend yield is 11.11% based on dividends of $0.60 and a stock price of $5.40. The current dividend yield is 174% above the historical dividend yield. This stock price testing suggests that the stock price is relatively is relatively cheap. Even if you use the planned dividend for 2020 of $0.45 (missing 3 months of dividends), the current dividend yield is still 105% above the current dividend yield and the stock price is still relatively cheap.

I get a 10 year median dividend yield of 4.60%. The current dividend yield is 11.11% based on dividends of $0.60 and a stock price of $5.40. The current dividend yield is 142% above the historical dividend yield. This stock price testing suggests that the stock price is relatively is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 1.33. The current P/S Ratio is 0.51 based on a stock price of $5.40, 2020 Revenue estimate of $1107M, and Revenue per share of $10.66. The current ratio is 62% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively is relatively cheap.

Results of stock price testing is that the stock price is relatively cheap. The dividend yield testing is showing the stock price is relatively cheap and this is confirmed by the P/S Ratio test. The P/B Ratio test is also showing the stock price as cheap. Both the P/E Ratio test and the P/GP Ratio tests have problems.

There problems with the P/E Ratio test. First the stock price will only fall so far because of low earnings. This can cause the P/E Ratios to be unrealistically high as in this stock for the 5 year ratios. The 2020 EPS is expected to be very low, so we have a very high EPS. The P/E Ratio falls to a lower level in 2021 of 18.62 and even lower in 2020 at 14.21 because of better expected EPS. The P/GP Ratio test has similar problems.

Is it a good company at a reasonable price? The stock price is certainly cheap. I think that they raised the dividends too fast after becoming a corporation. Hopefully they have learned from this. They seem to be back on track and I will hold on to my shares at present.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (5) and Hold (6). The consensus would be a Buy. The 12 month stock price is $6.83. This implies a total return of 37.59% with 11.11% from dividends and 26.48% from capital gains.

Analysts on Stock Chase have a few entries from 2019. Christopher Liew comments on Motley Fool about this company. Adam Othman on Motley Fool thinks this company is a long term buy. A writer on Simply Wall Street talks about ownership for this company. The company talks about the effect of Covid 19 on their company on Newswire.

Mullen Group Ltd supplies trucking and logistics services to the oil and natural gas industry in Canada and the United States. The company comprises two business segments: trucking/logistics and oilfield services. Its web site is here Mullen Group Ltd.

The last stock I wrote about was about was Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF) ... learn more. The next stock I will write about will be Canadian Utilities Ltd (TSX-CU, OTC-CDUAF) ... learn more on Monday, May 18, 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.

Hammond Power Solutions Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. The stock price is currently cheap. They have just recently started to increase dividends again. They have good debt ratios. See my spreadsheet on Hammond Power Solutions Inc.

I own this stock of Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF). I bought this stock as my main purchase for the TFSA in 2013 and 2014. I picked Hammond initially in 2013 as my main buy because it has good growth and reasonable dividend.

When I was updating my spreadsheet, I noticed that I have not done well on this stock at all. It hit a high in 2007 and has never recovered to that high. However, it has been better in 2019 and in 2019 and 2020 it raised its dividends after the dividends were flat for 5 years. Usually dividends are increased when management feels good about the future.

The dividend yields are usually moderate with dividend growth either good or flat. The current dividend yield is in the good category (5% to 6% ranges) at 5.65%. However, the dividend yield for this stock has mostly been in the moderate range (2% to 4% ranges). The 5, 10 and historical dividend yields are 3.72%, 3.02% and 3.00%. The dividend growth between 2009 and 2014 was good (15% and over). Dividends were then flat between 2014 and 2018. In 2019 and 2020 there was dividend growth again in the good range. The last dividends increase for 2020 was for 21.4%.

The Dividend Payout Ratios (DPR) are good. The DPR for 2019 is 28% with 5 year coverage at 113%. Next year, the DPR is expected to be 35% with 5 year coverage at 87%. The DPR for CFPS for 2019 was 11% with 5 year coverage at 14%. The DPR for Free Cash Flow for 34% with 5 year coverage at 34%.

Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2019 is 0.10. They took out debt in 2019 and have not had any long term debt for some time. With the recent fall in the stock price, the ratio is still low at 0.12. The Liquidity Ratio is 1.52 for 2019. The Debt Ratio is 2.04 for 2019. The Leverage and Debt/Equity Ratios for 2019 are 1.96 and 0.96.

The Total Return per year is shown below for years of 5 to 18 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	3.13%	4.22%	0.91%	3.31%
2009	10	10.84%	0.83%	-1.79%	2.62%
2004	15		17.90%	13.83%	4.07%
2001	18		16.15%	13.01%	3.14%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 9.66, 11.91 and 14.15. The corresponding 10 year ratios are 11.63, 14.07 and 19.13. The corresponding historical ratios are 6.51, 8.91 and 10.24. The current P/E Ratio is 6.21 based on last 12 month EPS of $0.97 and a stock price $6.02. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $14.28. The 10 year low, median, and high median Price/Graham Price Ratios are 0.60, 0.79 and 0.97. The current P/GP Ratio is 0.42 based on a stock price of $6.02. 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 0.83. The current P/B Ratio is 0.64 based on a Book Value of $110M, Book Value per Share of $9.35 and a stock price of $6.02. The current ratio is 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 3.00%. The current dividend yield is $5.65% based on dividends of $0.34. The current dividend yield is 88% 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 3.02%. The current dividend yield is $5.65% based on dividends of $0.34. The current dividend yield is 87% 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 0.33. The current P/S Ratio is 0.20 based on a stock price of $6.02, last 12 month Revenue of $363M and Revenue per Share of $30.87. The current ratio is 41% 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. The dividend yield tests are showing the stock price as relatively cheap and this is confirmed by the P/S Ratio test. In fact, all the stock price tests are showing the same thing and there are no problems with any of the tests.

Is it a good company at a reasonable price? I still like this company and when I have more money in my TFSA account, I will buy more of this stock. The stock price is reasonable and in fact it is cheap.

When I look at analysts’ recommendations, I find no analysts recommendations. There is one analyst target price at $7.30. This implies a total return of 26.91% with 21.26% from capital gains and 5.65% from dividends.

See what analysts are saying on Stock Chase. There are few entries, but the last in May 2019 give it a buy. A writer on Simply Wall Street talks about a 30% return in 2019. See the executive summary on Simply Wall Street. A writer on Simply Wall Street says FCF does not cover dividend, but it depends on how you calculate FCF. The company talks about its first quarterly results on Global Newswire.

Hammond Power Solutions Inc is a Canada-based manufacturer of dry-type magnetics. It is engaged in the design and manufacture of custom electrical engineered magnetics. The firm is also a manufacturer of standard electrical dry-type, cast resin, and liquid-filled transformers. The company operates in various geographical markets including Canada, the United States, Mexico, and India in which it derives majority revenue in the United States and Mexico. Its web site is here Hammond Power Solutions Inc.

The last stock I wrote about was about Kirkland Lake Gold (TSX-KL, NYSE-KL) ... learn more. The next stock I will write about will be Mullen Group Ltd (TSX-MTL, OTC-MLLGF) ... learn more on Friday, May 15, 2020 around 5 pm. Tomorrow on my other blog I will write about Canadian REITs.... learn more on Thursday, May 15, 2020 around 5 pm.

Also, on my book blog I have put a review of the book Crashed by Adam Tooze 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.

Kirkland Lake Gold

Sound bite for Twitter and StockTwits is: Dividend Growth Materials. The stock price seems relatively expensive. This is a gold company and therefore highly speculative. It has no debt and is currently growing strongly. See my spreadsheet on Kirkland Lake Gold .

I do not own this stock of Kirkland Lake Gold (TSX-KL, NYSE-KL). This stock was recommended to me by Sue O'Reilly in 2019 and I wish I had bought it when she talked about it. Sue O'Reilly runs the Meetup Group of StockTwits.

When I was updating my spreadsheet, I noticed this stock has really taken off recently, starting in 2017. Not only has the share price increased, at 107% per year over the past 5 years, but revenues and earnings are also increasing rapidly. They switched from reporting in CDN$ to US$ in 2016. They started dividend payments in CDN$ in 2017, but switched them to US$ in 2020.

The dividend yields are low with dividend growth high. They just started to pay dividends in 2017. The dividend yield has been low (under 2%) from the start. Today, the dividend yield is 1.22%. The three year median dividend yield is just 0.32%. The dividend growth is high. It has grown by 178% per year over the past 3 years. The last dividend increase was in 2020 and it was for 108%. However, most companies starting dividends start them low and increase them rapidly over the next few years. So the current increases really tells us nothing about future increases.

The Dividend Payout Ratios (DPR) are great. The DPR for EPS for 2019 was 4.65%. The DPR coverage for the last 3 years is 2.8%. It is expected to be 14% this year. The DPR for CFPS for 2019 is 3.05%. This is expected to be 9% this year. The DPR for Free Cash Flow for 2019 is 6.37%. It is expected to be 14% this year.

Debt Ratios are all good. They have no long term debt. They used to have a long term debt until 2016 when they paid it all off. The Liquidity Ratio is good at 1.91. The Debt Ratio is quite high and very good at 3.45. The Leverage and Debt/Equity Ratios are both good at 1.41 and 0.41.

The Total Return per year is shown below for years of 5 to 18 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	177.98%	106.67%	106.35%	0.32%
2009	10		10.85%	10.80%	0.06%
2004	15		8.37%	8.33%	0.04%
2001	18		11.44%	11.41%	0.03%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 9.33, 14.87 and 23.07. The corresponding 10 year ratios are 9.27, 14.75 and 21.65. The corresponding historical ratios are negative. Note that there was only earning losses prior to 2010 and some also after 2010.. The current P/E Ratio is 12.75 based on a stock price of $57.61 and 2020 EPS estimate of $4.82. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $35.23. The 10 year low, median, and high median Price/Graham Price Ratios are 0.66, 1.20 and 1.74. The current P/GP Ratio is 1.64 based on a stock price of $57.61. 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 1.67. The current P/B Ratio is 4.72 based on a stock price of 57.61, Book Value of $2,559M and a Book Value per Share of $12.21. The current P/B Ratio is 183% above the 10 year median. This stock price testing suggests that the stock price is relatively expensive.

I get an historical median dividend yield of 0.32%. The current dividend yield is 1.22% based on dividend of $0.70 and a stock price of $57.61. The current dividend yield is 282% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap. Since we have only 3 years of data, it makes no sense to do any other dividend yield testing.

The 10 year median Price/Sales (Revenue) Ratio is 2.70. The current P/S Ratio is 2.73 based on 2020 Revenues estimate of $3,303M, Revenue per Share of $15.76 and a stock price of $57.61. The current ratio is 34% 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 expensive. The tests are showing various results. The dividend yield testing which shows that the stock price as relatively cheap is not confirmed by the P/S Ratio test which shows the stock price as relatively expensive. The P/B Ratio test also shows that the stock price is relatively expensive. There are no problems with the P/S Ratio test, nor with the P/B Ratio test.

The problem with the P/E Ratio test is that there were so many years with earnings losses. This would be a problem for the P/GP Test also. The problem with the dividend yield test is that they just started to pay dividends. Dividends often increase sharply after a company initiates dividends.

Is it a good company at a reasonable price? There is a lot to admire in this company with the current big growth in revenue, earnings and book value and no debt. I think that it is overpriced at the moment, but I intend to keep an eye on it. You should know that this is a highly speculative stock.

When I look at analysts’ recommendations, I find Strong Buy (5), Buy (5) and Hold (4). The consensus would be a Buy. The 12 month stock price consensus is $66.80. This implies a total return of 17.17% with 15.95% from capital gains and 1.22% from dividends.

See what analysts are saying on Stock Chase. There are mixed reviews but a lot are positive. Andrew Button on Motley Fool talks about the complexity of investing in gold companies. He also says that KL has been flat for a year and May 2019 to May 2020 has been mostly flat with a big dip in March 2020. See the executive summary on Simply Wall Street. A writer on Simply Wall Street looks at the company’s dividend and says the big increases are probably not sustainable. Staff at Northern Ontario Business on May 6 says that the company is beginning to recall its workforce. The company released first quarterly results on Global Newswire.

Kirkland Lake Gold Ltd is a Canada-based gold mining, development, and exploration company with a diversified portfolio of exploration projects. The company's mines and material mineral projects are located in Canada and Australia. Its web site is here Kirkland Lake Gold .

The last stock I wrote about was about was Ag Growth International (TSX-AFN, OTC-AGGZF) .... learn more. The next stock I will write about will be Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF) ... learn more on Wednesday, May 13, 2020 around 5 pm. Tomorrow on my other blog I will write about Stocks, Best Asset Class.... learn more on Tuesday, May 12, 2020 around 5 pm.

Also, on my book blog I have put a review of the book 1177 BC by Eric Cline 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.