I do not own this stock of Logistec Corp (TSX-LGT.B, OTC-LTKBF). I got this stock from Dividend Growth Investing and Retirement blogger’s all-star spreadsheet for March 2017.
When I was updating my spreadsheet, I noticed that the accounting is somewhat complicated because they are giving some separate account for their Class A and Class B shares. Class A common shares have 30 votes each and Class B common shares have 1 vote each. The company is controlled by the Paquin family.
The dividend yields are low with dividend growth moderate but the increases seem to have stop currently. The current dividend is low (under 2%) at 1.18%. The 5, 10 and historical dividends are also low at 0.85%, 0.91% and 1.92%. The dividend increases for the last 5 years have been moderate (8% to 14% ranges) at 10.68% per year over the past 5 years. However, the last dividend increase was low at just 3.1% and it was for 2019. There has yet to be a dividend increase this year and it is usually done in October. It does not look like there will be one this year.
The Dividend Payout Ratios (DPR) are good. The DPR for EPS for 2019 is low at 19% with 5 year coverage at 17.5%. The DPR for CFPS is14% for 2019 with 5 year coverage at 12%. The DPR for 2019 for Free Cash Flow is 13% with 5 year coverage at 18%. The Dividend Coverage Ratio for 2019 is 7.44 with 5 year ratio at 5.41.
Debt Ratios are fine. The Long Term Debt/Market Cap Ratio is low and good at 0.33. The Liquidity Ratio is good at 1.85 as is the Debt Ratio at 1.62. The Leverage and Debt/Equity Ratios are fine at 2.62 and 1.62.
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 | 10.68% | 0.36% | -0.49% | 0.85% |
| 2009 | 10 | 8.96% | 22.40% | 19.93% | 2.48% |
| 2004 | 15 | 8.34% | 17.33% | 14.44% | 2.89% |
| 1999 | 20 | 6.57% | 12.09% | 10.18% | 1.91% |
| 1996 | 23 | 6.04% | 14.92% | 11.17% | 3.74% |
The 5 year low, median, and high median Price/Earnings per Share Ratios are 17.65, 19.70 and 21.75. The corresponding 10 year ratios are 12.00. 15.05 and 18.11. The corresponding historical 9.33, 10.83 and 12.57. The current P/E Ratio is 15.98 based on a stock price of $34.90 and latest 12 month EPS $2.18. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get a Graham Price of $32.85. The 10 year low, median, and high median Price/Graham Price Ratios are 1.07, 1.32 and 1.47. The current P/GP Ratio is 1.06 based on a stock price of $34.90. This stock price testing suggests that the stock price is relatively cheap.
I get a 10 year median Price/Book Value per Share Ratio of 2.10. The current P/B Ratio is 1.59 based on a Book Value of $278M, Book Value per Share of $21.95 and a stock price of $34.90. The current ratio is 24% 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 9.80. The current P/CF Ratio is 4.33 based on latest 12 months Cash Flow of $99.4M, Cash Flow per Share of $7.85 and a stock price of $34.90. The current ratio is 56% 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 1.92%. The current dividend yield is 1.18% based on dividend of $0.4116 and a stock price of $34.90. The current dividend yield is 39% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive.
I get a 10 year median dividend yield of 0.91%. The current dividend yield is 1.18% based on dividend of $0.4116 and a stock price of $34.90. The current dividend yield is 29% 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 0.94. The current P/S Ratio is 0.73 based on a stock price of $34.90, latest Revenue of $602M and Revenue per Share of $47.53. The current P/S Ratio is 22% 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 relatively cheap. The 10 year dividend yield test is showing the stock as relatively cheap and the P/S Ratio test confirms this. I know that the historical dividend yield test shows it as expensive but, it appears that the stock price is rising faster the dividend increases. Most of the test are showing the stock as relative cheap. With the P/E Ratio test, a P/E Ratio of 15.98 is not high.
Is it a good company at a reasonable price? The stock price seems relatively cheap so the price is good. It has returned value to shareholders over the long term. The negative is the complicated structure and the company is controlled by the Paquin family. I know that the dividends were not raised in 2020, but a lot of companies are being cautious because of Covid.
When I look at analysts’ recommendations, I find only one analysts’ recommendation and it is a Hold. I cannot find any estimates or any 12 month stock price consensus.
There are no recent entries on Stock Chase and the site gives this stock one star out of 5 . Nikhil Kumar on Motley Fool reviewed this stock in November 2019 saying it is a profitable company that pays dividends. There is an executive overview on Simply Wall Street. A writer on Simply Wall Street thinks the stock has positive factors but is concerned with the lack of earnings growth. Stephen Takacsy's Top Picks on BNN recently includes Logistec (starting at 2.26 minutes in).
Logistec Corp provides specialized cargo handling and other services to a wide variety of marine, industrial and municipal customers. It has cargo-handling facilities in eastern North America, short-line rail transportation services, and marine agency services to foreign shipowners and operators serving the Canadian market. Its web site is here Logistec Corp.
The last stock I wrote about was about Teck Resources Ltd (TSX-TECK.B, NYSE-TECK) ... learn more. The next stock I will write about will be Trigon Metals Inc (TSX-TM, OTC-PNTZF) ... learn more on Friday, October 09, 2020 around 5 pm. Tomorrow on my other blog I will write about Something to Buy October 2020.... learn more on Thursday, October 08, 2020 around 5 pm.
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