Saputo Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. The stock price is relatively cheap. They had the lowest dividend increase in dividends last year at 3% and none this year. But everyone is worried about the long term economic problems that the current pandemic will bring. See my spreadsheet on Saputo Inc .

I own this stock of Saputo Inc (TSX-SAP, OTC-SAPIF). This was a stock on Mike Higgs' Canadian Dividend Growth Stock list and on the dividend lists that I followed. I bought this stock first in 2006 for my RRSP account. Because I am now taking money from my RRSP accounts, I have been selling this stock because of the low dividend. I still like this stock so I have been buying it in my TFSA.

When I was updating my spreadsheet, I noticed that the TD report said that the company has a no layoff policy. I like this. Companies have to think long term, not just make money for the shareholders now. This food company is suffering because of the reduced foodservices demand.

The dividend yields are low with dividend growth currently low. The current dividend yield is currently into the moderate range (2% or 4%) at 2.11%. However, the dividends have mostly been in the low range (under 2%) with the 5, 10 and historical yields at 1.52%, 1.59% and 1.59%. The growth in dividends is current low and have been for the past 5 years. The last increase was for 2019 and it was for only 3%. Prior to 5 years ago, increases were higher. See chart below.

The Dividend Payout Ratios (DPR) are fine. The DPR for EPS for 2019 is 47% with 5 year coverage at 35%. The DPR for CFPS for 2019 is 19% with 5 year coverage also at 19%. The DPR for Free Cash Flow 59% with 5 year coverage at 45%. Dividend Coverage Ratio for 2019 is 1.71 with 5 year coverage at 2.23.

Debt Ratios are good. The Long Term Debt/Market Cap Ratio is 0.26. The Liquidity Ratio is 1.63. The Debt Ratio is 1.91. The Leverage and Debt/Equity Ratios are 2.10 and 1.10.

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	5.97%	4.52%	2.86%	1.66%
2009	10	19.21%	12.19%	10.09%	2.11%
2004	15	10.55%	12.55%	10.44%	2.12%
1999	20	16.84%	13.95%	11.81%	2.15%
1997	22	14.50%	20.76%	12.23%	8.53%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 19.50, 23.32 and 26.37. The current P/E Ratio is 18.70, 21.36 and 23.97. The corresponding historical ratios are 16.80, 18.81 and 21.43. The current P/E Ratio is 23.08 based on a stock price of $32.08 and 2020 EPS estimate of $1.39. This stock price testing suggests that the stock price is relatively reasonable but above the median

I get a Graham Price of $22.41. The 10 year low, median, and high median Price/Graham Price Ratios are 1.59, 1.83 and 2.03. The current P/GP Ratio is 1.43 based on a stock price of $32.08. 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 3.55. The current P/B Ratio is 2.00 based on a stock price of $32.08, Book Value of $6,559M and Book Value per Share of $16.05. The current ratio is 44% 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 16.17. The current P/CF Ratio is 11.14 based on 2020 CFPS estimate of $2.88, Cash Flow of $1,177M and a stock price of $32.08. The current Ratio is 31% 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 1.59%. The current dividend yield is 2.12% based on a stock price of $32.08 and Dividends of $0.68. The current yield is 33% 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 1.59%. The current dividend yield is 2.12% based on a stock price of $32.08 and Dividends of $0.68. The current yield is 33% 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 1.21. The current P/S Ratio is 0.87 based on a stock price of $32.08, 2020 Revenue estimate of $15,079M and Revenue per Share of $36.90. The current ratio is 28% 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. Both the historical and 10 year dividend yield tests say this and it is confirmed by the P/S Ratio test. The P/B Ratio test says the same thing and no estimate are used in the P/B Ratio test. I see nothing wrong with the P/CF Test except this it is based on estimates, but a test on the 12 month cash flow says the same thing.

Th difference with the P/E Ratio is that the EPS is expected to drop this year. However, EPS is quite volatile. The 5 year growth in EPS is a negative 1.07% per year, with the 10 year EPS growth at 4.71% per year. But I also have 5 year running values, and the one comparing 5 year running EPS between EPS now and 6 years ago and the one comparing 5 year running EPS between now and 11 years ago show EPS growing by 7.89% and 10.44% per year. The expected drop in EPS for 2020 also affects the P/GP Ratio testing.

Is it a good company at a reasonable price? I think that the stock price is reasonable if not cheap. I still think that his is a good company and a long term hold. I expect that the current pandemic will adversely affect the company because they sell to the foodservice industry.

When I look at analysts’ recommendations, I find Buy (3), Hold (5) and Sell (1). The consensus would be a Hold. The 12 month stock price is $38.50. This implies a total return of $22.13% with 20.01% from capital gains and 2.12% from dividends.

Most analysts on Stock Chase call it a defensive stock. Victoria Hetherington on Motley Fool says buy this for its passive income. A writer on Simply Wall Street says Saputo current flat earnings and new issue of share at 5% of its market value are negatives. A writer on Simply Wall Street says the high than it peers P/E Ratio shows the market is expecting this company to have better growth than its peers . The blogger Dividend Earner did a write up of this in February 2019. This stock is listed on the blogger site Million Dollar Journey in the list of the of 2020 Best Canadian Dividend Stocks.

Saputo is a dairy processor and cheese producer that operates in Canada, the U.S., Argentina, the United Kingdom, and Australia and sells products in more than 50 countries. It is one of the top three cheese producers in the U.S. (48% of revenue) and one of the largest cheese manufacturers in Canada (30% of revenue). Its web site is here Saputo Inc .

The last stock I wrote about was about was Parkland Fuel Corp (TSX-PKI, OTC-PKIUF) ... learn more. The next stock I will write about will be Empire Company Ltd (TSX-EMP.A, OTC-EMLAF) ... learn more on Thursday, July 2, 2020 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks July 2020.... learn more on Tuesday, June 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.

Parkland Fuel Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. The stock price is probably reasonable and below the median. This company has provided good shareholders returns. There was some insider buying during the bear market, but mostly insider selling over the past year. They have a lot of debt. See my spreadsheet on Parkland Fuel Corp.

I do not own this stock of Parkland Fuel Corp (TSX-PKI, OTC-PKIUF). I decided to do a spreadsheet on this stock as it was a stock recommended by Roger Conrad in Money Show 2013.

When I was updating my spreadsheet, I noticed insiders started to buy when stock fell below $35 and stopped when it was at $22.00. They started selling again when stock rose above $35. However, there has been a lot of insider selling over the past year with Net Insider Selling at 0.12% (where you expect only 0.2% or less).

The dividend yields are moderate with dividend growth low. The current dividend yield is moderate (2% to 4% ranges) at 3.51%. The 5, 10 and historical median dividend yields are also moderate at 4.12/%, 4.89% and 3.67% respectively. The current increases are very low. The last one was for 2020 and it was for 1.7%. See the chart below also.

The stock started as a corporation, then changed to an income trust and then back to a corporation. Prior to becoming an income trust in 2002, there were little in the way of dividend increases. Dividends were up substantially in 2002 by some 1580%. There were some nice increases after that, but when it changed back to a corporation, dividends were decreased starting in 2011. Dividend increases have been low since.

The Dividend Payout Ratios (DPR) are fine. The DPR for EPS for 2019 was 47% with 5 year coverage at 100%. The DPR for EPS was only below 100% last year for the first time since the company became an income trust. Income trust can pay over the EPS, but corporations cannot. The DPR for CFPS for 2019 was 21% with 5 year coverage at 39%. The DPR for Free Cash Flow for 2019 was 29% with 5 year coverage at 41%. Dividend Coverage Ratio for 2019 is 3.58 with 5 year ratio at 2.42.

Debt Ratios could be improved. The Long Term Debt/Market Cap Ratio for 2019 is 0.54. The Liquidity Ratio for 2019 is 1.16. If you add in cash flow after dividends it is good at 1.54. This is good for this stock as the 5 year median for Liquidity with CF after dividends is 1.14. The Debt Ratio is a bit low at 1.33 and a 5 year median of 1.46. I prefer this to be at 1.50 or better. The Leverage and Debt/Equity Ratios are too high at 4.74 and 3.56 with 5 year medians of 3.16 and 2.16.

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	2.42%	20.95%	17.02%	3.93%
2009	10	-0.58%	18.75%	13.54%	5.21%
2004	15	4.98%	22.28%	13.37%	8.91%
1999	20	21.30%	19.69%	12.61%	7.07%
1994	25	18.61%	17.33%	12.34%	4.98%
1989	30	15.29%	13.75%	10.42%	3.33%
1988	31	14.76%	14.19%	10.83%	3.36%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 34.28, 40.45 and 46.59. The Corresponding 10 year ratios are 17.42. 21.89 and 26.54. The corresponding historical ratios are 10.57, 13.00 and 15.89. The current P/E Ratio is negative, so I can not use it to in testing for P/E Ratio. The 2021 P/E Ratio is 23.33 based on a stock price of $32.20 and 2021 EPS estimate of $1.38. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a Graham Price of $19.68. The 10 year low, median, and high median Price/Graham Price Ratios are 1.36, 1.70 and 2.04. The current P/GP Ratio is 1.64 based on a stock price of $32.20. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year median Price/Book Value per Share Ratio of 2.94. The current P/B Ratio is 2.58 based on a Book Value of $1,849M, Book Value per Share of $12.48 and a stock price of $32.20. The current ratio is 12% below the 10 year median P/B Ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year median Price/Cash Flow per Share Ratio of 10.53. The current P/CF Ratio is 9.20 based on a stock price of $32.20, Cash Flow per Share estimate for 2020 of $3.50 and Cash Flow of $519M. The current ratio is 6% 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 3.67%. The current dividend yield is 3.77% based on dividends of $1.21, and a stock price of $32.20. The current yield is 3% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year median dividend yield of 4.89%. The current dividend yield is 3.77% based on dividends of $1.21, and a stock price of $32.20. The current yield is 23% 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 0.30. The current P/S Ratio is 0.29 based on 2020 Revenue estimate $16,272M, Revenue per Share of $109.79 and a stock price of $32.20. The current ratio is 2% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

Results of stock price testing is that the stock price is probably reasonable and below the median. My favourite test for this company is the P/S Ratio test which shows that stock price just below the median. There is nothing wrong with the P/GP Ratio Test, P/B Ratio Test nor the P/CF Ratio tests. All these tests show that the stock price is reasonable and below the median.

The historical dividend yield test shows the stock price reasonable and below the median also. The 10 year dividend yield test shows that the stock price is relatively expensive. The problem with the dividend yield tests is that the dividends have varied a lot over time. This is because the company was a corporation, then an income trust and then back to a corporation.

Most the P/E Ratio are quite high. EPS has been quite volatile. When the EPS has dropped significantly, the stock price has not. The stock price will only fall so far with a drop in EPS and this can cause quite high P/E Ratios.

Is it a good company at a reasonable price? The think that the stock price is reasonable. This stock has done well for its shareholders overtime. It is a dividend growth stock, but do not expect much growth from the dividends and probably more of the total return in capital gains.

When I look at analysts’ recommendations, I find Strong Buy (5) and Buy (9). The consensus is a Strong Buy. The 12 month stock price is $40.57. This implies a total return of 29.77% with 25.99% from Capital gains and 3.77% from dividends.

Analysts on Stock Chase like this stock and one says be patient and it will recover. Mat Litalien Motley Fool says the dividend increases are low, but the company is saying money for acquisitions and has done well with this. A writer on Simply Wall Street says that the dividends are well covered but the debt is starting to be of some concern. A writer on Simply Wall Street says the stock is fairly value to slightly undervalued at $45.74 in January of this year. .

Parkland Corp distributes and markets fuels and lubricants. Refined fuels and other petroleum products are among the variety of offerings the company delivers to motorists, businesses, consumers, and wholesalers in the United States and Canada. Its web site is here Parkland Fuel Corp.

The last stock I wrote about was about was Computer Modelling Group Ltd (TSX-CMG, OTC-CMDXF) ... learn more. The next stock I will write about will be Saputo Inc (TSX-SAP, OTC-SAPIF) ... learn more on Monday, June 29, 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.

Computer Modelling Group Ltd

Sound bite for Twitter and StockTwits is: Dividend Growth Tech. Stock Price is relatively reasonable and below the median and it may even be cheap. Dividends are not growing at present, but I suspect this will again in the future. This tech stock is connected to the Oil and Gas industries, so it has some current problems. See my spreadsheet on Computer Modelling Group Ltd.

I own this stock of Computer Modelling Group Ltd (TSX-CMG, OTC-CMDXF). I first bought this stock when I was looking for something to buy after selling SNC in July 2008. This company is a dividend paying growth stock that would also be considered to be a small cap with a capitalization at that time of around $115 million. At that time Insiders were buying this stock. It has great growth and it is information technology a favourite sector of mine.

When I was updating my spreadsheet, I noticed insiders started to buy in the bear market when the stock price went below $7 and stop around $4.50. There have been no further buys since April. This company hit a peak in 2015 and it has not done much since. However, it is connected to the Oil and Gas industry and I think that this accounts for it.

The dividend yields are moderate with dividend growth currently non-existent. When this company was doing well, it gave out special dividends as it could afford them. The current dividend is moderate (2% to 4% ranges) at 3.93%. The 5, 10 and historical dividend yields are also moderate at 4.52%, 3.65% and 3.65% respectively.

The Dividend Payout Ratios (DPR) were unsustainable and dividends have been cut to a level that appears to be sustainable. The DPR for EPS for 2020 is 138% with 5 year coverage at 137%. The DPR for CFPS for 2020 is $112% with 5 year coverage at 88%. The DPR for Free Cash Flow for 2020 is 164% with 5 year coverage at 139%. The dividend was unsustainable and they have just cut it by 50%. The new dividend should be fine as the DPR for EPS for 2021 is expected to be 83%, the DPR for CFPS for 2021 is expected to 60% and the DPR for FCF for 2021 is expected to be 58%.

Debt Ratios are fine, but needs some adjustment for the future. The Long Term Debt/Market Cap Ratio is 0.15. The Liquidity Ratio for 2020 is 1.65 with a 5 year median of 1.96. The Debt Ratio for 2020 is 1.47 with a 5 year ratio of 2.22. The Leverage and Debt/Equity Ratios are 3.15 and 2.15 with 5 year medians at 1.69 and 0.69. These ratios have changed mainly because of new account rules (for lease liabilities and right-of-use Assets).

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	0.00%	-3.31%	-7.19%	3.98%
2009	10	8.31%	15.07%	8.14%	6.94%
2004	15	21.90%	32.84%	19.47%	13.37%
1999	20		49.81%	30.51%	19.30%
1991	23		19.40%	14.37%	5.03%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 19.98, 30.26 and 33.81. The corresponding 10 year ratios are 21.01, 28.93 and 33.96. The corresponding historical ratios are 10.22, 16.72 and 20.34. The current P/E Ratio is 19.96 based on a stock price of $4.79 and 2021 EPS estimate of $0.24. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $1.61. The 10 year low, median, and high median Price/Graham Price Ratios are 3.15, 4.04 and 4.86. The current P/GP Ratio is 2.98 based on a stock price of $4.79. 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 12.69. The current P/B Ratio is 10.02 based on a stock price of $4.79, Book Value of $38.4M, and Book Value per Share of $0.48. The current ratio is 21% 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 24.13. The current P/CF Ratio is 14.52 based on 2021 Cash Flow per Share estimate of $0.33, Cash Flow of $26.5M and a stock price of $4.79. The current ratio is 40% 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 3.65%. The current dividend yield is 4.18% based on a stock price of $4.79 and dividends of $0.20. The current dividend yield is 14% above the historical dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year median dividend yield of also of 3.65%. The current dividend yield is 4.18% based on a stock price of $4.79 and dividends of $0.20. The current dividend yield is 14% above the historical 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 10.39. The current P/S Ratio is 5.62 based on a stock price of $4.97, 2021 Revenue estimate of $68.4M and Revenue per Share of $0.85. The current ratio is 56% 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 reasonable and below the median. The dividend yield tests are showing that the stock price is reasonable and below the median. The P/S Ratio test confirms this and suggests it might be cheap. The dividend yield tests are just showing the price as reasonable because the company has cut the dividends by 50%. Dividend cuts signal that management do not expect things to get better in the short term.

Bye the way, there is nothing particularly wrong with the other tests which signal that the stock price is relatively cheap. Ratios are, of course, rather high, but that is because this stock was a fast growing tech stock. The problem for this tech stock is that it services the Oil and Gas industry and this industry is currently in trouble.

Is it a good company at a reasonable price? I still like this company and I am going to hold on to the shares that I have. I am not buying any stock because basically I do not have spare money. The price is reasonable at this time.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (2) and Hold (4). The consensus would be a Buy. The 12 month stock price consensus is $5.46. This implies a total return of 18.16% with 13.99% from capital gains and $4.18% from dividends.

Analysts were never very interested in this small company and they stopped being interested in 2017 as shown by the entries on Stock Chase. Stephanie Bedard-Chateauneuf likes this stock on Motley Fool back in February. A writer on Simply Wall Street talks about this company’s beta and what it means. There are risks to this stock as shown on Simply Wall Street Executive Summary. Nick Waddell on CanTech talks about this stock.

Computer Modelling Group Ltd is a Canada-based provider of reservoir simulation software for the oil and gas industry. Its capabilities include integrated analysis and optimization, black oil and unconventional simulation, reservoir and production system modelling, post-processor visualization, compositional simulation, thermal processes simulation, and fluid property characterization. The firm has operations in over 50 countries in the Americas, Europe, Middle East, Africa, and Asia-Pacific regions. Its web site is here Computer Modelling Group Ltd.

The last stock I wrote about was about was CI Financial Corp (TSX-CIX, OTC-CIFAF) ... learn more. The next stock I will write about will be Parkland Fuel Corp (TSX-PKI, OTC-PKIUF) ... learn more on Friday, June 26, 2020 around 5 pm. Tomorrow on my other blog I will write about Predictable Interest.... learn more on Thursday, June 25, 2020 around 5 pm.

Also, on my book blog I have put a review of the book Future of Capitalism by Paul Collier 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.

CI Financial Corp

Sound bite for Twitter and StockTwits is: Dividend Paying Financial. I think that the stock price is reasonable and below the median. Debt Ratios are fine, but I think it is the wrong time to run up debt. They are mostly using debt to pay for the share buybacks and I think this is a terrible idea. See my spreadsheet on CI Financial Corp.

I do not own this stock of CI Financial Corp (TSX-CIX, OTC-CIFAF). I started to follow this stock originally because it was a Mutual Fund company. People talked about it being easier to make money from buying a Mutual Fund company than buying Mutual Funds. When they became a Unit Trust in 2006, dividends were significantly increased, but these dividends proved to be unsustainable. They changed back to a corporation in 2009 and dividends were decreased in 2010. Since that time, they have been increasing their dividends since 2011. In June 2014, MPL communications called this stock a Buy and advised that they were adding it to their list of Key Stock for the Investment reporter.

When I was updating my spreadsheet, I noticed they have been buying back a lot of shares over the past two years. In 2018 they bought just over 10% of the outstanding shares and in 2019 they bought just over 9% of the outstanding shares. In 2019 they used 80% of their cash flow to do the repurchase of shares. In 2018, they used mostly debt to financial the share repurchases. They went into debt again in the first quarter to fund share repurchases.

Insiders were selling until the bear market. They started to buy under $18, and stop when stock went back up to around $13. There has been no recent insider buying or selling.

The dividend yields are moderate to good with dividend growth non-existent. The current dividend is moderate (2% to 4% ranges) at 4.18% with the 5, 10 and historical median yields at 4.77%, 4.03% and 3.59%. In the last few years, this stock’s dividends have often been good (5% to 6% ranges) with dividends being in the 5% range. They decreased the dividends by over 48% in 2018. The dividend has not changed since then and analysts do not expect any change in the near future.

The Dividend Payout Ratios (DPR) are currently fine. The DPR for EPS for 2019 was 31% with 5 year coverage 57%. The DPR for CFPS for 2019 is 27% with 5 year coverage at 48%. The DPR for Free Cash Flow for 2019 is 32% with 5 year coverage at 53%. The Dividend Coverage Ratio for 2019 is 3.17 and the 5 year one is 1.90.

Debt Ratios are fine, but I think it is the wrong time to run up debt. The Long Term Debt/Market Cap Ratio for 2019 is 0.24. The current one is 0.35 because of increasing debt and decreasing market cap (stock price). The Liquidity Ratio for 2019 is 0.70. If you add in cash flow after dividends it is just 1.04. If you add back in the current portion of long term debt and cash flow after dividends it is 1.69. The Debt Ratio is 1.52. The Leverage and Debt/Equity Ratios for 2019 are 2.91 and 1.91.

The Total Return per year is shown below for years of 5 to 25 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	-9.41%	-3.40%	-7.63%	4.24%
2009	10	-3.64%	4.70%	-0.13%	4.83%
2004	15	3.91%	9.00%	1.87%	7.13%
1999	20	18.30%	16.34%	7.80%	8.55%
1994	25	19.51%	19.81%	11.43%	8.38%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 12.75, 14.74 and 15.75. The corresponding 10 year ratios are 14.66, 16.45 and 18.23. The corresponding historical ratios are 15.31, 17.55 and 19.98. The current P/E Ratio is 8.13 based on a stock price of $17.24 and EPS estimate for 2020 of $2.12. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $18.07. The 10 year low, median, and high median Price/Graham Price Ratios are 1.48, 1.67 and 1.88. The current P/GP Ratio is 0.95 based on stock price of $17.24. 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 3.92. The current P/B Ratio is 2.52 based on a Book Value of $1477M, Book Value per Share of $6.85 and a stock price of $17.24. The current ratio is 36% 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 11.89. The current P/CF Ratio is 6.34 based on CFPS estimate for 2020 of $2.81, Cash Flow of $609M and a stock price of $17.24. The current ratio is 48% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get an historical median dividend yield of 3.59%. The current dividend yield is 4.18% based on a stock price of $17.24 and dividends of $0.72. The current yield is 16% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year median dividend yield of 4.03%. The current dividend yield is 4.18% based on a stock price of $17.24 and dividends of $0.72. The current yield is 3% above the historical 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 4.13. The current P/S Ratio is 1.95 based on 2020 Revenue estimate of $1,913M, Revenue per Share of $8.83 and a stock price of $17.24. The current ratio is 53% 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 reasonable and below the median. The dividend yield testing is showing the stock price as reasonable and below the median. Dividends are set because of what management feels about the future. The dividends were cut in 2018 which shows management is, at least in the short term, expecting hard times.

The P/S Ratio tests shows that the stock price is cheap, so at least this confirms the dividend yield testing. As far as I can see, there are no problems with any of the stock price tests. All the tests but the dividend yield tests show the stock price as cheap.

Is it a good company at a reasonable price? I do not like share buybacks at the best of times. This company is going into debt to do share buybacks. I think this is a terrible idea. I think there are probably better companies to buy at this time.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (2), Hold (4), Underperform (1). The consensus would be a Hold. The 12 month stock price is $17.25. This implies a total return of 4.23% with 0.06% from capital gains and 4.18% from dividends.

A couple of analysts on Stock Chase say that Mutual Fund companies are not as good of business as they used to be. Aditya Raghunath on Motley Fool likes this company because it has been making acquisitions and partnerships. The company announces on Newswire the selling of new debt securities. There are few articles after 2018 and few analysts’ articles after 2018, the year the company cut their dividends by almost half. This shows that analysts have lost interest in this stock.

CI Financial is a diversified provider of wealth management products and services, primarily in the Canadian market. The company operates primarily through CI Investments, which offers a broad selection of investment funds, and Assante Wealth Management, which provides financial advice through a network of advisors. Other subsidiaries include Sentry Investments, Stonegate Private Counsel, Grant Samuel Funds Management (Australia), First Asset Investment Management and BBS Securities. Its web site is here CI Financial Corp.

The last stock I wrote about was about was Algonquin Power & Utilities Corp (TSX-AQN, NTSE-AQN) ... learn more. The next stock I will write about will be Computer Modelling Group Ltd (TSX-CMG, OTC-CMDXF) ... learn more on Wednesday, June 24, 2020 around 5 pm. Tomorrow on my other blog I will write about Extendicare Inc.... learn more on Tuesday, June 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.

Algonquin Power & Utilities Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Utility. The stock price would appear to be relatively expensive. They need to improve both their Dividend Payout Ratios and Debt Ratios. They are issuing a lot of shares and therefore diluting current shareholders stake in the company. See my spreadsheet on Algonquin Power & Utilities Corp.

I do not own this stock of Algonquin Power & Utilities Corp (TSX-AQN, NTSE-AQN). I have a lot of my utility money in pipelines. I think that sometime in the future I may have to move this money to other utilities. I do not think that the new types of power generation are going to go away and might at some time be a good investment. This is a dividend paying utility stocks. I got it off a list of dividends paying utility stocks. Note that Emera Inc. owns shares in Algonquin Power and I own Emera.

When I was updating my spreadsheet, I noticed that Revenue is increasing fast, but Revenue per share is not. The Revenue over the past 5 and 10 years have increased by 14.8% and 24.7% per year. Revenue per Share over the past 5 years has gone down by .6% per year and for the past 10 years has gone up 5.6% per year. The reason for this is the increase in outstanding shares over the past 5 and 10 years at the rate of 18.8% and 20.2% per year. This is not a good situation. They are issuing a lot of shares.

The dividend yields are moderate and sometimes higher with dividend growth being been moderate lately. The current dividend yield is moderate (2% to 4%) at 4.49%. The dividend growth is moderate (8% to 14% range). See the chart below. The last dividend increase was for 10% and it occurred this year. Dividends have been paid in US$ since 2014.

The Dividend Payout Ratios (DPR) need improvement. The DPR for EPS for 2019 is 52% with 5 year coverage at 92%. The DPR for CFPS is 49% with 5 year coverage at 45%. The DPR for Free Cash Flow is 417% with 5 year coverage not calculable because of negative Free Cash Flow. The Dividend Coverage Ratio for 2019 is 0.24.

Debt Ratios need improving. The Long Term Debt/Market Cap Ratio is 0.50 with a current ratio of 0.56 due to a 9% increase in debt. The Liquidity Ratio is 0.91. If you add in cash flow after dividends it is 1.28. If you add back in the current portion of the long term debt it is still low at 1.29. The Debt Ratio is good at 1.71. The Leverage and Debt/Equity Ratios for 2019 are 2.96 and 1.67 is are fine, but the current ones are 3.10 and 1.81. The 5 year median ratios are 3.37 and 1.98. The Leverage Ratio is high.

The Total Return per year is shown below for years of 5 to 22 to the end of 2019 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	14.42%	18.45%	13.63%	4.82%
2009	10	11.29%	21.27%	16.14%	5.13%
2004	15	-1.81%	8.22%	3.72%	4.51%
1999	20	-1.25%	9.90%	3.57%	6.32%
1997	22	-0.84%	8.42%	2.57%	5.85%

The Total Return per year is shown below for years of 5 to 16 to the end of 2019 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	11.87%	15.69%	11.31%	4.38%
2009	10	8.91%	18.96%	13.87%	5.09%
2004	15	-2.30%	8.08%	3.24%	4.85%
2003	16	-0.73%	8.96%	3.53%	5.43%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 23.61, 25.80 and 27.99. The corresponding 10 year ratios are 23.61, 26.55 and 29.39. The corresponding historical ratios are 23.68, 27.16 and 30.43. The current P/E Ratio is 31.36 based on 2020 EPS estimate of $0.60 ($0.44 US$) and a stock price of $18.76. This stock price testing suggests that the stock price is relatively expensive. This is in CDN$.

I get a Graham Price of $11.05. The 10 year low, median, and high median Price/Graham Price Ratios are 1.24, 1.40 and 1.58. The current P/GP Ratio is 1.70 based on a stock price of $18.76. This stock price testing suggests that the stock price is relatively expensive. This is in CDN$.

I get a 10 year median Price/Book Value per Share Ratio of 1.59. The current P/B Ratio is 2.07 based on a Book Value of $3,516M, Book Value per Share of $6.68 and a stock price of $13.81. The current ratio is 30% above the 10 year ratio. This stock price testing suggests that the stock price is relatively expensive. This is in US$. You would get a similar result in CDN$.

I get a 10 year median Price/Cash Flow per Share Ratio of 9.92. The current P/CF Ratio is 12.67 based on a Cash Flow per Share of $1.09, Cash Flow of $574M and a stock price of $13.81. This stock price testing suggests that the stock price is relatively expensive. This is in US$. You would get a similar result in CDN$.

I get an historical median dividend yield of 7.75%. The current dividend yield is 4.50% based on dividends of $0.84 ($0.62 US$) and a stock price of $18.76. The current dividend yield is 42% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive. This is in CDN$$.

I get a 10 year median dividend yield of 4.56%. The current dividend yield is 4.50% based on dividends of $0.84 ($0.62 US$) and a stock price of $18.76. The current dividend yield is 1.5% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and but above the median. This is in CDN$$.

The 10 year median Price/Sales (Revenue) Ratio is 2.74. The current P/S Ratio is 3.99 based on 2020 Revenue Estimate of $1,823M, Revenue per share of $3.46 and a stock price of $13.81. The current ratio is 43% above the 10 year ratio. This stock price testing suggests that the stock price is relatively expensive. This is in US$. You would get a similar result in CDN$.

Results of stock price testing is that the stock price is probably relatively expensive. The 10 year median dividend yield test shows that the current dividend yield is about where the 10 year dividend yield is and give a reasonable price. However, this is not confirmed by the P/S Ratio test which shows the stock price as expensive.

The problem with the historical dividend yield test is that this company used to be an income trust and as such had very high dividend yields. They still have not got their Dividend Payout Ratio for EPS under control so the dividend is probably much higher than it really should be. So, this really points to a problem also with the 10 year median dividend yield test. The rest of the tests show the stock price is relatively expensive and I see no problem with any of these tests.

Is it a good company at a reasonable price? I do see this stock as being currently expensive. It would not be my favourite utility at the moment. It needs to improve both DPR and debt ratios. They are raising cash by issuing lots of shares and therefore diluting current shareholders stake in the company.

When I look at analysts’ recommendations, I find Strong Buy (2), Buy (5), Hold (6) and Underperform (1). The consensus would be a Buy. They are issuing a lot of shares. He 12 months stock price is $19.70 ($14.49 US$). This implies a total return of 9.51% with 5.01% from capital gains and 4.50% from dividends.

Analysts on Stock Chase seem to like this stock. According to Nelson Smith on Motley Fool this is a buy and hold forever stock for your TFSA. A writer on Simply Wall Street worries about the company’s debt and the fact that FCF cannot cover the dividend. They also say that the dividend has been cut in the past 10 years and this worries them also. A writer on Simply Wall Street talks about what the P/E on this stock might be telling us. The blogger Dividend Earner did a writeup on this stock in February of this year.

Algonquin Power & Utilities Corp is a North American generation, transmission, and distribution utility. Its web site is here Algonquin Power & Utilities Corp.

The last stock I wrote about was about was Intertape Polymer Group Inc (TSX-ITP, OTC-ITPOF) ... learn more. The next stock I will write about will be CI Financial Corp (TSX-CIX, OTC-CIFAF) ... learn more on Monday, June 22, 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.

Intertape Polymer Group Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. The stock price is current relatively cheap. They give out a lot of stock options. They need to improve both their Dividend Payout Ratios and Debt Ratios. See my spreadsheet on Intertape Polymer Group Inc.

I do not own this stock of Intertape Polymer Group Inc (TSX-ITP, OTC-ITPOF). I got this stock suggestion from a member of an Investment Club I belong to. The company reports in US$ and distributes it dividend in US$.

When I was updating my spreadsheet, I noticed that the company gives away lots of stock options. In the past year the outstanding shares were increased by 0.61% (5 year average 0.60%). This is rather high as you would expect this to be no higher than 0.50% of outstanding shares. It appears that there is lots of insider selling (0.11% of market Cap), but really people are not taking up stock options given.

There is also a number of people with the last name of Yull. The CEO is Gregory Yull. There is an officer called Duncan Yull. A director called Melbourne Yull who has over a 1.7M shares. Apparently, Melbourne Yull started the company.

The dividend yields are moderate with dividend growth currently low. The current dividend is good (5% and 6% ranges) at 6.66% however, the yield has been mostly in the moderate range (2% to 4% ranges). The 5, 10 and historical median dividend yields are 3.71%, 3.56% and 3.56%. The recent dividend increases have been in the low range (under 8%). The most recent dividend increase was for 5.4% and this increase was for this year.

The Dividend Payout Ratios (DPR) are fine, but are getting too high. The DPR for 2019 is 82% with 5 year coverage at 63%. The DPR for CFPS is 21% with 5 year coverage at 25%. The DPR for Free Cash Flow for 2119 is 40% with 5 year coverage at 69%. Dividend Coverage Ratio for 2019 is 2.49 with 5 year ratio at 1.45.

Debt Ratios should be improved. The Long Term Debt/Market Cap Ratio is 0.64 for 2019 but is higher at 1.11 currently. Debt has increased by 18% and the stock price has fallen by 29%. It is too high, but we are also in a bear market. The Liquidity Ratio is high and good at 1.95. The Debt Ratio is lower than what I like at 1.39. I prefer this to be at 1.50. The Leverage and Debt/Equity Ratios are 3.93 and 2.89 and a little too high.

The Total Return per year is shown below for years of 5 to 26 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	9.98%	1.84%	-2.24%	4.07%
2009	10	13.99%	23.67%	18.75%	4.92%
2004	15		4.67%	2.85%	1.82%
1999	20		-3.34%	-4.39%	1.05%
1994	25		2.78%	1.62%	1.17%
1993	26		3.71%	2.50%	1.21%

The Total Return per year is shown below for years of 5 to 26 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	7.53%	-0.81%	-4.51%	3.70%
2009	10	10.26%	20.93%	16.31%	4.62%
2004	15		4.40%	2.57%	1.82%
1999	20		-2.77%	-3.84%	1.08%
1994	25		3.00%	1.95%	1.05%
1993	26		3.57%	2.55%	1.03%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 13.69, 17.31 and 20.88. The corresponding 10 year ratios are 11.80, 16.16 and 21.27. The corresponding historical ratios are 10.68, 15.79 and 21.26. The current P/E Ratio is 12.84 based on a stock price of $12.01, EPS of $0.94 ($0.69 US$). This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in CDN$.

I get a Graham Price of $11.20. The 10 year low, median, and high median Price/Graham Price Ratios are 1.19, 1.48 and 1.86. The current P/GP Ratio is 1.07 based on a stock price of $12.01. This stock price testing suggests that the stock price is relatively cheap. This testing is in CDN$.

I get a 10 year median Price/Book Value per Share Ratio of 3.28. The current P/B Ratio is 2.09 based on a stock price of $8.80, Book Value of $248M and a Book Value per Share of $4.20. The current ratio is 36% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$. You will get similar results in CDN$.

I get a 10 year median Price/Cash Flow per Share Ratio of 8.24. The current P/B Ratio is 4.66 based on a stock price of $8.80, Cash Flow per Share of $1.89 and a Cash Flow of $112M. The current ratio is 44% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$. You will get similar results in CDN$.

I get an historical median dividend yield of 3.55%. The current dividend yield is 6.66% based on dividends of $0.80 ($0.59 US$), and a stock price $12.01. The current dividend 88% above the historical median dividend. This stock price testing suggests that the stock price is relatively cheap. This testing is in CDN$.

I get a 10 year median dividend yield of 3.13%. The current dividend yield is 6.66% based on dividends of $0.80 ($0.59 US$), and a stock price $12.01. The current dividend 113% above the 10 year median dividend. This stock price testing suggests that the stock price is relatively cheap. This testing is in CDN$.

The 10 year median Price/Sales (Revenue) Ratio is 0.87. The current P/S Ratio is 0.49 based on 2020 Revenue estimate of $1064M, Revenue per Share of $18.03 and a stock price of $8.80. The current ratio is 44% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$. You will get similar results in CDN$.

Results of stock price testing is that the stock price is relatively cheap. The dividend yield tests are showing the stock as relatively cheap and this is confirmed by the P/S Ratio test. There is nothing wrong that I can see about any of the tests. However, I noted that all the estimate value (like Revenue, EPS, Cash Flow etc.) are lower than for 2019. However, the first quarterly values are the same as for 2019 or higher. For example, the Revenue estimate for 2020 is $1064M, a decrease of 8%, but the last 12 month Revenue is $1,160 an increase of $0.9% over Revenue for 2019.

Is it a good company at a reasonable price? The stock price is relatively cheap. They will probably do fine, but they do need to improve their Dividend Payout Ratios and their Debt Ratios. There are also reasons, like both DPR and Debt Ratios needing improvement is why it is cheap.

When I look at analysts’ recommendations, I find Buy (6) and Hold (2). The consensus would be a Buy. The 12 month stock price consensus is $13.87 ($10.23 US$). This implies a total return of 21.15% with 15.49% from capital gains and 6.66% from dividends. The total returns have been low for most periods. Maybe a look at a better stock in this area is wise.

Analyst on Stock Chase do not seem to be impressed with the company. Brian Pacampara on Motley Fool likes the high dividend on this stock. A writer on Simply Wall Street thinks the future looks bright for this company. A writer on Simply Wall Street looks at ownership. The Blogger Dividend Earner recently reviewed this stock.

Intertape Polymer Group Inc manufactures and sells a variety of packaging products. The firm's primary product categories include tapes, films, and woven coated fabrics. The majority of revenue comes from the United States. Its web site is here Intertape Polymer Group Inc.

The last stock I wrote about was about was Waste Connections Inc (TSX-WCN, NYSE-WCN) ... learn more. The next stock I will write about will be Algonquin Power & Utilities Corp (TSX-AQN, NTSE-AQN) ... learn more on Friday, June 19, 2020 around 5 pm. Tomorrow on my other blog I will write about Canadian Bank Dividends.... learn more on Thursday, June 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.

Waste Connections Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. The stock price is relatively expensive. The dividend yield is below 1%, so extremely low. This will not change in the short term, at least. There are probably better stocks to buy at this time. See my spreadsheet on Waste Connections Inc.

I do not own this stock of Waste Connections Inc (TSX-WCN, NYSE-WCN), but I used too. I first bought this stock in 2007 because TD Securities had a very favorable report on this stock and had it on its action buy lists. At that time, it was BFI Canada Income Fund. In 2010, I needed to buy something for Pension Account. I have this already and it is on TD Action Buy List. I sold when it became the target of a reverse takeover by an American company.

When I was updating my spreadsheet, I noticed Revenue has grown well, but Revenue per Share has not. For example, Revenue for the past 5 and 10 years has grown at 21.8% and 18.3% per year. Revenue per Share is down over the past 5 and 10 years by 11.2% and 2.1% per year. These are in US$. As a shareholder, the Revenue per Share is the important growth. Growth in outstanding shares over past 5 and 10 years is 37% and 20.9% per year. Revenue per Share declined and Outstanding Shares increased because of the merger of BFI and WCN.

The dividend yields are low with dividend growth good lately. It started to pay dividends in US$ in 2017. The current dividends yield low (below 2%) at 0.82%. The 5, 10 and historical dividend yields are also low at 0.85%, 1.05% and 1.25%. It used to be an income trust and when they changed to a corporation, they lowered their dividends. Also, on the transition to US$ dividends and the takeover, dividends were lowered slightly. They seem to back to a dividend growth company. The last increase was for 15.6% and it occurred this year.

The Dividend Payout Ratios (DPR) are good. The DPR for EPS for 2019 is 31% with 5 year coverage at 27%. The DPR for CFPS for 2019 is 12% with 5 year coverage at 11%. The DPR for Free Cash Flow for 2019 20% with 5 year coverage at 19%. Dividend Coverage Ratio for 2019 is 5.00 and for the past 5 year is 5.32.

Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2019 is 0.18 with a current one at 0.22. This is good and low. The Liquidity Ratio is low at 1.12 and better at 2.48 when you added cash flow after dividends. The Debt Ratio is good at 2.02. Leverage and Debt/Equity Ratios are good at 1.98 and 0.98 for 2019.

The Total Return per year is shown below for years of 5 to 18 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	16.26%	20.49%	19.52%	0.97%
2009	10	3.52%	18.62%	17.57%	1.04%
2004	15	-0.17%	10.05%	8.66%	1.39%
2001	18	2.73%	15.30%	12.64%	2.66%

The Total Return per year is shown below for years of 5 to 17 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	13.66%	17.75%	16.87%	0.88%
2009	10	1.34%	16.17%	15.13%	1.04%
2004	15	-0.68%	9.82%	8.29%	1.54%
2002	17	3.92%	14.91%	12.18%	2.73%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 29.32, 33.50 and 37.68. The corresponding 10 year ratios are 16.04, 19.10 and 22.15. The corresponding historical ratios are 16.04, 19.65 and 25.67. The current P/E Ratio is 46.87 based on a stock price $122.34 and 2020 EPS estimate of $2.61 ($1.92 US$). This stock price testing suggests that the stock price is relatively expensive. This is in CDN$.

I get a Graham Price of $44.99. The 10 year low, median, and high median Price/Graham Price Ratios are 1.03, 1.19 and 1.37. The current P/GP Ratio is 2.72 based on a stock price of $122.34. This stock price testing suggests that the stock price is relatively expensive. This is in CDN$.

I get a 10 year median Price/Book Value per Share Ratio of 1.80. The current P/B Ratio is 3.56 based on a stock price of $90.21, Book Value of $6,682M and Book Value per Share of $25.35. The current ratio is 98% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This is in US$. You will get a similar result in CDN$.

I get a 10 year median Price/Cash Flow per Share Ratio of 6.16. The current P/CF Ratio is 17.05 based on a stock price of $90.21, Cash Flow per Share estimate of $5.29 and Cash Flow of $1,395M. The current ratio is 177% above the 10 year median. This stock price testing suggests that the stock price is relatively expensive. This is in US$. You will get a similar result in CDN$.

I get an historical median dividend yield of 1.25%. The current dividend yield is 0.82% based on dividends of $1.01 ($0.74 US$). The current ratio is 34% below the historical median ratio. This stock price testing suggests that the stock price is relatively expensive. This is in CDN$.

I get a 10 year median dividend yield of 1.02%. The current dividend yield is 0.82% based on dividends of $0.74 and a stock price of $90.21. The current ratio is 20% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This is in US$. You will get a similar result in CDN$.

The 10 year median Price/Sales (Revenue) Ratio is 1.30. The current P/S Ratio is 4.48 based on 2020 Revenue estimate of $5,312M, Revenue per Share of $20.15 and a stock price of $90.21. The current ratio is 244% above the 10 year ratio. This stock price testing suggests that the stock price is relatively expensive. This is in US$. You will get a similar result in CDN$.

Results of stock price testing is that the stock price is probably expensive. Both the historical and 10 year median dividend yield tests say this and it is confirmed by the P/S Ratio test. The other tests are showing the same results. I do not see any problems with any of the tests.

Is it a good company at a reasonable price? It would appear that the stock price is relatively expensive. Revenue per Share and Cash Flow per Share decreased a lot and number of shares increase a lot at the merger. Revenue per Share and CFPS have been increasing over the past 3 years. EPS has been increasing. One problem I see is the very low dividend yield. I do not buy companies with a yield below 1%. Since the stock is relatively expensive and the dividend yield very low, there are probably better companies to buy at this time.

When I look at analysts’ recommendations, I find Strong Buy (11), Buy (3), Hold (4) and Sell (1). The consensus would be a Buy. The 12 month stock price is $138.12 ($101.59 US$). This implies a total return of 13.72% with 12.90% from capital gains and 0.82% from dividends.

Analyst on Stock Chase mostly like this stock. Adam Othman Motley Fool thinks this is a recession resistant stock. A write on Simply Wall Street is unimpressed with the company’s ROCE. A writer on Simply Wall Street talks about insider selling. RBC analysts via Investing.com maintains a buy rating on this stock.

Waste Connections is the third- largest integrated provider of traditional solid waste and recycling services in the North America, operating 86 active landfills, 124 transfer stations, and 66 recycling operations. The firm serves residential, commercial, industrial, and energy end markets. Its web site is here Waste Connections Inc.

The last stock I wrote about was about was Lassonde Industries (TSX-LAS.A, OTC-LSDAF) ... learn more. The next stock I will write about will be Intertape Polymer Group Inc (TSX-ITP, OTC-ITPOF) ... learn more on Wednesday, June 17, 2020 around 5 pm. Tomorrow on my other blog I will write about Women Investors.... learn more on June 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.

Lassonde Industries Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. Stock price is reasonable and below the median. Debt Ratios are good. Dividend Payout Ratios, but dividend yields are low. See my spreadsheet on Lassonde Industries.

I do not own this stock of Lassonde Industries Inc (TSX-LAS.A, OTC-LSDAF). Although this stock is not on the Investment Reporter list, MPL communications does write about this stock. It has been covered several times in their Advice Hotline emails in 2010. Reports have been favorable and they suggest buying it for dividends and long term capital gains.

When I was updating my spreadsheet, I noticed this stock has quite good debt ratios. The Debt Ratio is 2.28. The Leverage and Debt/Equity Ratios are 1.78 and 0.78. Because both the dividend yield and dividend growth are low, it takes a long time to increase significantly the yield on the original stock price. After 5, 10, 15 and 20 years the yield on the original price is 1.73%, 4.75% 7.80% and 19.58% using past data to date.

The dividend yields are low with dividend growth moderate. The current dividend is low (under 2%) at 1.58%. The 5, 10 and historical dividend yields are also low at 1.11%, 1.39% and 1.72%. The dividends growth has varied over time. Last year the dividend was decreased by 26.5%, but it was increased this year by 9.2%. See chart below showing Dividend Growth.

The Dividend Payout Ratios (DPR) are good. The DPR for EPS for 2019 is 25% with 5 year coverage at 23%. The DPR for CFPS is 10% with 5 year coverage also at 10%. The DPR for Free Cash Flow is 18% with 5 year coverage at 11%. The Dividend Coverage Ratio for 2019 is 5.59 and 9.46 for last 5 years.

Debt Ratios are good. The Long Term Debt/Market Cap Ratio is 0.23 for 2019 but higher and still good at 0.34 currently due to an increase in debt. Market Cap has increased. The Liquidity Ratio for 2019 is 1.64 with 5 year median at 1.70. The Debt Ratio for 2019 is 2.28 with 5 year median at 2.21. The Leverage and Debt/Equity Ratios for 2019 are 1.78 and 0.78 with 5 year medians at 2.00 and 1.00.

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	10.29%	5.28%	3.64%	1.63%
2009	10	-0.11%	13.37%	11.36%	2.01%
2004	15	11.60%	14.02%	12.02%	2.00%
1999	20	11.78%	14.66%	12.48%	2.05%
1994	25	11.02%	13.03%	11.18%	1.85%
1990	29	10.46%	14.81%	12.48%	2.33%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 15.79, 18.10 and 20.37. The corresponding 10 year ratios are 15.26, 17.59 and 19.93. The corresponding historical ratios are 11.64, 13.18 and 15.93. The current P/E Raito is 15.55 based on a stock price of $164.83 and 2020 EPS estimate of $10.60. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $160.09. The 10 year low, median, and high median Price/Graham Price Ratios are 1.07, 1.24 ad 1.40. The current P/GP Ratio is 1.03 based on a stock price of $164.83. 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 1.95. The current P/B Ratio is 1.53 based on a stock price of $164.83, Book Value of $742M, and Book Value per Share of $107.46. The current ratio is 21% 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 8.89. The current ratio is 7.80 based on the last 12 month Cash Flow $146M, Cash Flow per share of $21.14, and a stock price of $164.83. The current ratio is 12% 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 1.72%. The current dividend yield is 1.58% based on dividends of $2.60 and a stock price of $164.83. The current yield is 8% 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 1.39%. The current dividend yield is 1.58% based on dividends of $2.60 and a stock price of $164.83. The current yield is 13% above the historical 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 0.71. The current P/S Ratio is 0.59 based on a stock price of $164.83, Revenue estimate for 2020 of $1,921M, and Revenue per Share of 278.05. The current ratio is 16% 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 and below the median. Both dividend yield tests show that the stock is reasonable with one above the median and the other below the median. The P/S Ratio test shows that the stock price is reasonable and below the median. The P/B Ratio is showing the stock price is cheap, because there is good growth in the Book Value and this is definitely a positive. There are no problems with any of the tests.

Is it a good company at a reasonable price? I think that the price is reasonable. This is a good company and it has mostly done a good job for its shareholders. You would buy to diversify into a consumer staple. It would be a good stock to build a portfolio with because of the low dividends.

When I look at analysts’ recommendations, I find Buy (1) and Hold (1). The consensus would be a Buy. The 12 month stock price consensus is $175.00. This implies a total return of 7.755 with 6.17% from capital gains and 1.58% from dividends.

There are no recent comments on this company on Stock Chase but what is there is positive. Brian Pacampara, of Motley Fool likes this small cap. A writer on Simply Wall Street likes the low payout ratio, but not the fact that dividends were cut during the past 10 years. A writer on Simply Wall Street says the latest growth in earnings shows the company is growing faster than in the past. The blogger Dividend Earner wrote about this stock last year and was upset about the dividend cut.

Lassonde Industries Inc is engaged in the development, manufacturing, and marketing of ready-to-drink fruit and vegetable juices and drinks. It also acts as a producer of store brand shelf-stable fruit juices and drinks in the United States and a major producer of cranberry sauces. It earns the majority of the revenue in the United States. Its web site is here Lassonde Industries.

The last stock I wrote about was about was Goeasy Ltd (TSX-GSY, OTC-EHMEF) ... learn more. The next stock I will write about will be Waste Connections Inc (TSX-WCN, NYSE-WCN) ... learn more on Monday, June 15, 2020 around 5 pm.

Also, on my book blog I have put a review of the book A Brief History of Doom by Richard Vague 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.