Ritchie Bros Auctioneers Inc

I bought some more shares of Ensign Energy Services (TSX-ESI, OTC-ESVIF). It is still really cheap and I expect a recovery. It is always a risky move to expect a company to recover.

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. Stock price is probably on the expensive side. A positive is that the last dividends increase at 10% is higher than it has been over the past 5 years. The company has done well during the recent pandemic. 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 of blogger Dividend Growth investing and Retirement.

When I was updating my spreadsheet, I noticed that this company has been doing very well lately, especially considering we are in a pandemic.

The dividend yields are currently low with dividend growth low. The current dividend yield is low (under 2%) at 1.47%. The 5 and 10 year median dividend yields are moderate (2% to 4% ranges) at 2.13% and 2.14%. The historical median dividend yield is low at 1.95%. The dividend growth is low (under 8%) over the past 5 years at 4% per year. However, the last dividend increase was moderate (8% to 14% ranges) at 10%

The Dividend Payout Ratios (DPR) are fine. The DPR for EPS for 2020 is 55% with 5 year coverage at 66%. The DPR for CFPS for 2020 is 32% with 5 year overage at 37%. The DPR for Free Cash Flow is 43% with 5 year coverage at 46%. However, the sites I looked at for FCF disagree on what it is.

Debt Ratios are fine. The Long Term Debt/Market Cap for 2020 is 0.08 and is low and good. The Liquidity Ratio for 2020 is low at 1.08, but if you add in cash flow after dividends it is better at 1.40. However, I do prefer this to be at 1.50 or higher. The Debt Ratio at 1.76 is good. The Leverage and Debt/Equity Ratios are fine at 2.32 and 1.32.

The Total Return per year is shown below for years of 5 to 22 to the end of 2020 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.
2015	5	5.18%	23.53%	21.56%	1.97%
2010	10	10.12%	16.15%	14.40%	1.75%
2005	15	10.94%	13.51%	11.89%	1.62%
2000	20	13.24%	17.04%	15.23%	1.80%
1998	22		13.58%	12.32%	1.26%

The Total Return per year is shown below for years of 5 to 22 to the end of 2020 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.
2015	5	6.96%	25.90%	23.88%	2.02%
2010	10	7.44%	13.41%	11.80%	1.61%
2005	15	2.87%	13.01%	11.32%	1.69%
2000	20	13.34%	18.42%	16.25%	2.16%
1998	22		14.81%	13.32%	1.49%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 25.31, 35.06 and 45.77. The corresponding 10 year ratios are 24.98, 29.77 and 34.18. The corresponding historical ratios are 20.77, 28.14 and 32.12. The current P/E Ratio is 32.91 based on a stock price of $72.25 and EPS estimate for 2021 of $2.20 ($1.82US$). The current ratio is between the median and high 10 year median ratios. 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 $19.36. The 10 year low, median, and high median Price/Graham Price Ratios are 1.95, 2.52 and 3.01. The current P/GP Ratio is 3.09 based a stock price of $72.25. The current ratio is above the 10 year high median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in CDN$.

I get a 10 year median Price/Book Value per Share Ratio of 4.41. The current P/B Ratio is 6.55 based on a Book Value of $1,005M, Book Value per Share of $9.15 and a stock price of $59.91. The current ratio is 49% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. You will get a similar answer in CDN$.

I get a 10 year median Price/Cash Flow per Share Ratio of 17.96. The current P/CF Ratio is 22.78 based on Cash Flow per Share estimate for 2021 of $2.63, Cash Flow of $289M and a stock price of $59.91. The current ratio is 27% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. You will get a similar answer in CDN$.

I get an historical median dividend yield of 1.95%. The current dividend yield is 1.47% based on a stock price of $59.91 and dividends of $0.88. The current dividend yield is 25% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. You will get a similar answer in CDN$.

I get a 10 year median dividend yield of 2.18%. The current dividend yield is 1.47% based on a stock price of $59.91 and dividends of $0.88. The current dividend yield is 33% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. You will get a similar answer in CDN$.

The 10 year median Price/Sales (Revenue) Ratio is 5.19. The current P/S Ratio is 4.43 based on Revenue estimate for 2021 of $1,478M, Revenue per Share of $13.53 and a stock price of $59.91. The current ratio is 15% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in US$. You will get a similar answer in CDN$.

Results of stock price testing is that the stock price is probably expensive. I like the fact that the stock passes the P/S Ratio test and is showing as reasonable. However, the dividends paid and their increases tend to reflect how good the management feels about the future. A positive point is that the last increase at 10% is higher than it has been in the recent pass. Most of the other tests show the stock price as expensive except for the P/E Ratio test.

Is it a good company at a reasonable price? I like this company. It has done very well over the long term and expect it to continue to do so. However, I feel that the current stock price is on the expensive side.

When I look at analysts’ recommendations, I find Strong Buy (2), Hold (6) and Underperform (2). The consensus would be a Hold. The 12 month stock price consensus is $75.82 ($62.86 US$). This implies a total return of 6.40% with 1.47% from dividends and a capital gain of 4.93%.

There are few analysts following this stock but the last one on this site liked the company on Stock Chase. Ambrose O'Callaghan on Motley Fool in February 2021 talked about three cheap stocks to buy, including this stock. The executive summary on Simply Wall Street listed 2 risks and gave this stock 4 stars out of 5. A writer on Simply Walls Street is concerned about the low growth in EPS for future dividend increases. A writer on Simply Wall Street talks about the stock increase for this company recently. He notes that analyst expect this to continue.

Ritchie Bros. is a global asset management and disposition company, offering customers end-to-end solutions for buying and selling used heavy equipment, trucks, and other assets. 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 IA Financial Corp (TSX-IAG, OTC-IDLLF) ... learn more on Wednesday, June 2, 2021 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks June 2021.... learn more on Tuesday, June 01, 2021 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: Consumer Stock. Stock price is probably cheap. It has a lot of debt but 72% of the debt is subject to comprise by CCAA proceedings. Any past positive return is in dividends. It pays to buy stocks that pay dividends. See chart below. See my spreadsheet on Reitmans (Canada) Ltd.

I do not 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.

When I was updating my spreadsheet, I think the shock is that this company is still hanging in there. They were in trouble before the pandemic. They seem to believe that they will survive this and survive in the end as a company. I guess we will just have to wait and see how this all works out.

They have cancelled their dividend as of 2020. The dividend could not be covered by earnings, but they were covered by cash flow.

Debt Ratios need improvement. Their Long Term Debt/Market Cap for 2020 is good at 0.35. Their Liquidity Ratio until this year had always been good. The Liquidity Ratio for 2020 is low at 0.76. Even if you add in cash flow, the ratio only gets to 0.90. When this ratio is under 1.00 it means that the current assets cannot cover the current liabilities. The Debt Ratio is low at 1.06. It also has been fine in the past. I like to see both the Liquidity Ratio and the Debt Ratio at 1.50 or higher.

However, nearly 72% of the debt of this company is subject to compromise in connection with Companies' Creditors Arrangement Act (CCAA) proceedings. So, the debt may not be as bad as current ratios show.

The Total Return per year is shown below for years of 5 to 33 to the end of 2020. 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.
2015	5	0.00%	-33.60%	-43.23%	9.63%
2010	10	0.00%	-26.43%	-35.30%	8.86%
2005	15	0.00%	-11.82%	-24.76%	12.94%
2000	20	0.00%	17.33%	-9.85%	27.18%
1995	25	0.00%	11.67%	-7.96%	19.63%
1990	30	0.00%	10.18%	-6.19%	16.37%
1987	33	0.00%	7.54%	-6.35%	13.89%

The 5 year low, median, and high median Price/Earnings per Share Ratios are all negative and therefore unusable. The corresponding 10 year ratios are 20.94, 27.06 and 32.03. The corresponding historical ratios are 9.77, 12.97 and 15.32. The current P/E Ratio is negative and so unusable.

I estimate a Graham Price of $0.32. The 10 year low, median, and high median Price/Graham Price Ratios are 0.95, 1.14 and 1.48. The current P/GP Ratio is 1.27 based on a stock price of $0.40. This current ratio is between the median and high median 10 year ratios. 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 1.01. The current P/B Ratio is 0.90 based on a Book Value of 319M, Book Value per share of $21.69 and a stock price of $0.40. The current ratio is 11% below the 10 year median 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 7.55. The current P/CF Ratio is 0.49 based on last 12 months Cash Flow of $40.2M, Cash Flow per Share of $ 0.82 and a stock price of $0.40. The current ratio is 94% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I cannot do an historical or 10 year median dividend yield test because dividends have been suspended.

The 10 year median Price/Sales (Revenue) Ratio is 0.33. The current P/S Ratio is 0.04 based on last 12 month Revenue of $533M, Revenue per Share of $10.91 and a stock price of $0.40. The current ratio is 89% 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. Some tests, especially the P/S Ratio, a favourite test, is showing this. Other are showing the stock price is reasonable.

Is it a good company at a reasonable price? The stock price is probably cheap. However, that does not matter if the company ends up bankrupt. There is a very high risk to this. Even if the company survives, it might take it years to recover to any decent profit level.

When I look at analysts’ recommendations, I find a Hold Rating (1). The consensus would be a Hold. The 12 month stock price is $5.00. This implies a total return of 1150%. I find a 12 month price of $5.00 hard to believe.

The last entry on Stock Chase is 2019. Analysts have lost interest in this stock. Nelson Smith of Motley Fool last year talked about this company going into bankruptcy and wanting to emerge strong with a focus on e-commerce. The executive summary on Simply Wall Street gives this stock 3 stars out of 5 and list 3 risks.

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 Monday, May 31, 2021 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.

HLS Therapeutics Inc

Sound bite for Twitter and StockTwits is: Dividend Paying Health Care. The stock price is probably reasonable. They cannot yet afford their dividends as they have had no positive earnings. Analysts expect positive earnings and a big jump in stock price in the future. If this happens, the current stock price would be cheap. 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 analysts have been expecting this stock to make a profit. For 2019 it was expected to have an EPS of $0.05 and then last year in 2020 analysts expected an EPS of $0.36. Instead, EPS for 2019 and 2020 were a loss of $0.67 and a loss of $0.48. For 2021 analysts are now expecting a loss of $0.50, but then EPS in 2022 of $0.47 and for 2023, EPS of $2.23.

The dividend yields are low with dividend growth non-existent. The current dividend yield is low (under 2%) at 1.18%. Dividends are paid in CDN$ funds. There has been no change to the dividend since it was first started in 2018. This is probably because the EPS cannot cover the dividends.

The Dividend Payout Ratios (DPR) need improving and analysts think this will happen. The DPR for EPS for 2020 cannot be calculated because this stock has no positive EPS. The DPR for CFPS is 54% with 3 year coverage at 18%. The DPR for Free Cash Flow for 2020 cannot be calculated because the FCF for 2020 is negative. The 5 year coverage is at 15%.

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio is good and low at 0.22. The Liquidity Ratio for 2020 is 1.29. If you add in cash flow after dividends it is still low at 1.41. I prefer this to be 1.50 or above. The Debt Ratio is high and good at 2.26. The Leverage and Debt/Equity Ratios are low and good at 1.80 and 0.80.

The Total Return per year is shown below for years of 5 to the end of 2020 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.
2015	5	0.00%	9.75%	9.44%	0.31%

The Total Return per year is shown below for years of 5 to the end of 2020 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.
2015	5	3.51%	11.14%	10.82%	0.32%

The 5 year low, median, and high median Price/Earnings per Share Ratios are all negative. The corresponding 6 year ratios are also all negative. No testing can be done with the P/E Ratio.

I estimate a current Graham Price of $1.19. The 6 year low, median, and high median Price/Graham Price Ratios are 7.08. 8.64 and 10.72. The current P/GP Ratio is 14.19 based on a stock price of $16.91. The current ratio is above the 6 year high median ratio. This stock price testing suggests that the stock price is relatively expensive. This is in CDN$ terms.

However, because of what analysts think will be the new EPS for 2022, the P/GP Ratio for 2022 is just 1.88. This is way below the 6 year median low ratio. In this case, this stock price testing suggests that the stock price is relatively cheap.

I get a 5 year median Price/Book Value per Share Ratio of 1.43. The current P/B Ratio is 2.66 based on a Book Value of $168M, Book Value per Share of $5.23 and a stock price of $13.92. The current P/B Ratio is 86% above the 5 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This is in US$ terms. You will get a similar result in CDN$ terms.

Book Value has been going down because the company is currently not earning any money. This could change if analysts are right about the future earnings of the company.

I get a 4 year median Price/Cash Flow per Share Ratio of 10.24. The current P/CF Ratio 39.84 based on a stock price of $13.92, Cash Flow for last 12 months of $11.18M, and Cash Flow per Share of $0.35. The current ratio is 289% above the 4 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This is in US$ terms. You will get a similar result in CDN$ terms.

I get an historical and 2 year median dividend yield of 1.08%. The current dividend yield is 1.18% based on dividend $0.20 and a stock price of $16.91. The current dividend yield is 9.5% above the historical and 2 year median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median. This is in CDN$ terms.

The 5 year median Price/Sales (Revenue) Ratio is 6.21. The current P/S Ratio is 6.49 based on a stock price of $13.92, Revenue estimate for 2020 of $69M, and Revenue per Share of $2.14. The current ratio is 4.6% above the 5 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median. This is in US$ terms. You will get a similar result in CDN$ terms.

Results of stock price testing is that the stock price is probably reasonable. Analysts keep expecting the company to have positive earnings and it had not happened yet. If it does, the stock price could be considered cheap. They expect earnings to be positive in 2022. It is also possible that the pandemic has affect the company’s ability to have positive earnings sooner. I know some of the results show the stock price as expensive, but this will change when positive earnings are achieved.

Is it a good company at a reasonable price? The stock price is probably reasonable. I got and intended to keep this stock because the people who ran Automodular Corporation invested in this company. It will be interesting to see how this all works out.

When I look at analysts’ recommendations, I find Strong Buy (2) and Buy (3). The consensus would be a Buy. The 12 month stock price is $31.19 ($25.86 US$). This implies a total return of 85.63% with 1.18% from dividends and $84.45% from capital gains.

Nikhil Kumar on Motley Fool recently did write up on this stock. The executive summary on Simply Wall Street gives this stock 3 stars out of 5 and list 2 risks. There is insider selling, but it seems to be all from the x-CEO. A writer on Simply Wall Street talks about the company’s dividend. Note that dividends are paid in CDN$ and have not changed. Dividend paid in US$ are affected by currency exchange rates. A writer on Simply Wall Street talks about declining estimates.

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 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 Friday, May 28, 2021 around 5 pm. Tomorrow on my other blog I will write about Paying a Reasonable Price.... learn more on Thursday, May 27, 2021 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 Paying Consumer. The stock price would seem to be reasonable. The company responsible for paying the Royalty to PZA, Pizza Pizza Limited (PPL) does have questionable debt ratios and lots of years of negative cash flow. Most of the money shareholders have earned is in dividends, not capital growth. 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 that in all time periods, the total return is positive only because of dividends. In all time periods I looked, there was a capital loss. See chart below. Also, I noted that the Debt Ratios for Pizza Pizza Royalty Corp (PZA) are good, but the ones for Pizza Pizza Limited (PPL) are awful. The Liquidity Ratio for PZA is 3.21 for 2020 while the ones for PPL are 0.60. When this is below 1.00, it means that the current assets cannot cover the current liabilities.

The dividend yields are good with dividend growth currently non-existent. The current dividend yield is good (5% to 6% ranges) at 6.26%. The 5 and 10 year median dividend yields are also good at 6.92% and 6.65%. The historical dividend yield is high (7% or greater) at 8.41%. The stock has a mixed record when it comes to dividends growth. Over the past 15 years it has raised its dividend 8 times and decreased them 4 times. It was an income trust and as most income trusts it decreased its dividends when becoming a corporation. However, it probably did not decrease it as much as it should have. They decreased the dividends again in 2020.

The Dividend Payout Ratios (DPR) seem fine. The DPR for EPS for 2020 is 91% with 5 year coverage at 98%. The DPR for CFPS for 2020 is 68% with 5 year coverage at 74%. Generally, I like the DPR for CFPS to be 40% or less, but in reality, because of the stocks structure, they can probably pay more. What really matters is if Pizza Pizza Limited can pay the royalties it has agreed to.

Debt Ratios are good for PZA. The Long Term Debt/Market Cap Ratio for 2020 for PZA is 0.21. The Liquidity Ratio for 2020 is 3.21. The Debt Ratio for 2020 is 4.94. The Leverage and Debt/Equity Ratios are 1.76 and 0.36.

Debt Ratios are good for PPL. The Long Term Debt/Market Cap Ratio for 2020 for PPL is 0.86. The Liquidity Ratio for 2020 is 60. The Debt Ratio for 2020 is 0.69. This means that the assets cannot cover the liabilities. If you exclude the Deferred Gain, the ratio is quite low at 1.26. I like this to be 1.50 or higher.

The Total Return per year is shown below for years of 5 to 15 to the end of 2020. 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.
2015	5	-3.21%	-0.59%	-7.59%	7.00%
2010	10	-2.94%	9.92%	0.91%	9.01%
2005	15	-0.78%	8.00%	-0.55%	8.56%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 10.53, 14.54 and 19.16. The corresponding 10 year ratios are 14.19, 15.97 and 18.15. The corresponding historical ratios are 11.69, 14.84 and 16.96. The current P/E Ratio is 12.70 based on a stock price of $10.54 and EPS estimate for 2021. The current P/E Ratio is below the 10 year low ratio. This stock price testing suggests that the stock price is relatively cheap

I get a Graham Price of $12.50. 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 0.84 based on a stock price of $10.54. The current ratio is below the 10 year low ratio. 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 1.26 based on a Book Value of $205.9M, Book Value per Share of $8.37, and a stock price of $10.54. 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 a 10 year median Price/Cash Flow per Share Ratio of 11.19 for PZA. The current P/CF Ratio is 10.94 based on the Cash Flow for the last 12 months of $23.7M, Cash Flow per Share of $0.96, and a stock price of $10.54. The current ratio is 25% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I cannot do a price check using the Cash Flow for PPL because there were lots of years with a negative cash flow.

I get an historical median dividend yield of 8.41%. The current dividend yield is 6.26% based on a stock price of $10.54 and dividends of $0.66. The current dividend yield is 26% 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 6.65%. The current dividend yield is 6.26% based on a stock price of $10.54 and dividends of $0.66. The current dividend yield is 6% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.

The 10 year median Price/Sales (Revenue) Ratio is 0.54. The current P/S Ratio is 0.49 based on Royalty System Sales estimate of $525M, Revenue per share of $21.33 and a stock price of $10.54. The current ratio is 9% 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. The 10 year median dividend yield test shows then, even though there was a recent dividend cut. The Royalty System Sales Test also shows a reasonable price. The company used to be an income trust and as such had high dividend yields and this is the reason for high an historical median dividend yield. Most test is showing the stock as cheap or reasonable.

Is it a good company at a reasonable price? The stock price is probably reasonable. However, the accounting for PZA does not tell us much about the strength of the company to continue to pay dividends. I think that PPL has problem in last of cash flow and lack of growth in net income. At least with this royalty producing company, we do get financial statements from the company paying the royalty (PPL).

When I look at analysts’ recommendations, I find one Strong Buy recommendation. The consensus would be a Strong Buy. The 12 month target stock price is $12.50. This implies a total return of 24.86% with 18.60% from capital gains and 6.26% from dividends.

The latest entry says Buy on Stock Chase but gives not good reason why. Daniel Da Costa on Motley Fool thinks you should buy this for its dividend and potential dividend increase. The executive summary on Simply Wall Street gives this stock 4 stars out of 5 and list two risks. A writer on Simply Wall Street does not like the fact that the company pays out most of its cash flow. PZA can as it can payout most of its earned royalty. I worry about PPL being able to pay the royalties. Trapping Value Marketplace on Seeking alpha gives his analysis of this stock.

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 Wednesday, May 26, 2021 around 5 pm. Today on my other blog I will write about Globe and Mail Newsletters.... learn more on Tuesday, May 25, 221 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 reasonable. The DPR needs to be improved and analysts expect this to happen. The Debt Ratios are fine, but they have a lot of debt. For quite a few years, most of the total return is from dividends. 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 I have had this stock for 4 years and my total return is low, although the yield in dividends have been good. I have a total return of 1.30% with 4.35% from dividends and 3.05% capital loss. I note that total return over the past 15 years has been low. See chart below. At the moment, I am happy to collect my increasing dividends and hold this stock. My portfolio is meant to produce dividends from a variety of companies.

Also, when updating my spreadsheet, I noticed I included what the dividend yield would be on your original investment after 5 and 10 years if you paid the high price or the low price 5 or 10 years ago. If you paid the high price 5 years ago your current yield would be 4.37%, but if you paid the low price 5 years ago, your yield would be 5.73%. This is a difference of 1.36%. If you paid the high price 10 years ago your current yield would be 7.19%, but if you paid the low price 10 years ago, your yield would be 10.01%. This is a difference of 2.82%. It would seem to pay to try to get a low or reasonable price when buying stocks for long term return.

The dividend yields are moderate with dividend growth current low. The current dividend yield is moderate (2% to 4% ranges) at 4.96%. The 5, 10 and historical median dividend yields are also moderate at 4.73%, 3.43% and 3.74%. The current dividend growth is in the moderate range (8% to 14% ranges) at 8.10% per year over the past 5 years. However, the last dividend increase was for just 1% in 2021. The dividends increase for 2020 was also much lower at 3%. So the dividend increases have gone low lately.

The Dividend Payout Ratios (DPR) could be improved and will probably improve. The DPR for EPS for 2020 was 132% with 5 year coverage at 76%. The DPR for EPS is expected to be better this year at 87% with 5 year coverage at 80% and is expected to decline in the following year to. The DPR for CFPS for 2020 is 29% with 5 year coverage at 24%. A DPR for CFPS of 40% or less is a good value. The DPR for Free Cash Flow for 2020 is 64% with 5 year coverage at 141%.

Debt Ratios are fine. The Long Term Debt/Market Cap ratio for 2020 is 1.05 and too high. The current one is 0.92. This is a function of the stock price and it was depressed last year. The Liquidity Ratio is quite good 1.82. The Debt Ratio is fine at 1.50. The Leverage and Debt/Equity Ratios for 2020 are 2.98 and 1.98 and are fine.

The Total Return per year is shown below for years of 5 to 32 to the end of 2020. 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.
2015	5	8.10%	4.33%	-0.54%	4.86%
2010	10	8.72%	5.58%	1.35%	4.23%
2005	15	7.99%	6.21%	2.34%	3.88%
2000	20	7.00%	8.83%	4.56%	4.28%
1995	25	6.45%	11.79%	6.46%	5.33%
1990	30	5.58%	11.66%	6.21%	5.45%
1988	32	5.34%	11.29%	5.94%	5.36%

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 14.74, 16.62 and 18.75. The corresponding historical ratios are 10.78, 13.00 and 15.07. The current P/E Ratio is 17.56 based on a stock price of $35.47 and EPS estimate for 2021 of $2.02. The current P/E Ratio is between the median and high 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a Graham Price of $29.49. The 10 year low, median, and high median Price/Graham Price Ratios are 1.13, 1.31 and 1.45. The current P/GP Ratio is 1.20 based on a stock price of $35.47. The current ratio is between the low and median 10 year median ratios. 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 2.19. The current P/B Ratio is 1.85 based on a stock price of $35.47, Book Value of $5,220M, and a Book Value per Share of $19.13. The current ratio is 15% below the 10 year median 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 6.10. The current P/CF Ratio is 5.81 based on CFPS estimate for 2021 of $6.10, Cash Flow of $1,664M, and a stock price of $35.47. The current ratio is 5% 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 3.74%. The current dividend yield is 4.96% based on dividends of $1.76 and a stock price of $35.47. The current dividend 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 3.43%. The current dividend yield is 4.96% based on dividends of $1.76 and a stock price of $35.47. The current dividend yield is 45% above 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 2.75. The current P/S Ratio is 2.82 based on Revenue estimate for 2021 of $3,430, Revenue per share of $12.57, and a stock price of $35.47. The current ratio is 3% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

Results of stock price testing is that the stock price is probably reasonable. The dividend tests say the stock price is cheap and they may be right as dividend payments and increases show the confidence in the future of the management. However, the last increase was for just 1%. They are probably doing the increase because they have over a 40 year history of dividend increases. The P/S Ratio for 2022 is 1% below the 10 year median ratio. Most of the other testing is showing the stock price as reasonable and below the median.

Is it a good company at a reasonable price? I still like this stock for the dividends. It would be nice to also have some capital gains. The stock price is probably reasonable. They have expectations of a good future as show in their February 2021 report on 2020. See link below.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (1), Hold (6) and Sell (1). So, it is a rather mixed bag. The consensus would be a Hold. The 12 month stock price consensus is $35.86. This implies a total return of 6.06% with 1.10% from capital gains and 4.96% from dividends. Most of the total return is again expected from dividends.

Two analysts lately gave it a weak buy on Stock Chase. They talk about it being from Alberta. Sneha Nahata on Motley Fool talk about this stock as a safe dividend stock for a growing dividend. The executive summary on Simply Wall Street gives this stock 4 stars out of 5 and lists 4 risks. A writer on Simply Wall Street talks about recent insider selling. A writer on Simply Wall Street talks about dividends growing, but the EPS has not been growing. The Blogger Dividend Earner reviewed this stock in February 2021. The title of Don’t Be FOOLED by CU’s Long Streak of Dividend Increases is provocative, but there is nothing in the review that I could find to suggest their dividend increases will stop. In February 2021, Canadian Utilities Ltd reported on their 2020 results and what they expect in the future.

Canadian Utilities Ltd offers comprehensive solutions and service excellence in: Energy Infrastructure, electricity generation, transmission, and distribution; natural gas transmission, distribution, and infrastructure development; energy storage and industrial water solutions; and electricity and natural gas retail sales and Retail Energy, energy plans for homes, businesses, and industry. 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 Tuesday, May 25, 2021 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 seems to be reasonable. Dividends have decreased as well as increased so, dividend income is unstable. They have good debt ratios. 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. But they also did a dividend decrease in 2014.

When I was updating my spreadsheet, I noticed that last year I had a total loss of 15.86%. This year the total loss is 2.69% which includes a capital loss of 6.13% and dividends of 8.82%. This company services the oil and gas industry, but it is expanding to other industries.

The dividend yields are moderate with dividend growth restarted. The current dividend yield is moderate (2% to 4% ranges) at 3.72%. The 5, 10 and historical dividend yields are moderate at 4.13%, 4.60% and 4.13%. The dividends reached a high in 2013 and then went down for a couple of years. There was another increase in 2018 and then a decrease in 2020 and finally another increase in 2021.

The Dividend Payout Ratios (DPR) are currently fine. The DPR for EPS for 2020 is 55% with 5 year coverage at 122%. They had trouble for a few years to pay dividends because of low EPS. That is why there was a number of dividend cuts starting in 2014. However, they got their DPR now under control and they raised the dividend in 2021. The DPR for CFPS for 2020 was 16% with 5 year coverage at 26%. The DPR for Free Cash Flow for 2020 was 39% with 5 year coverage at 51%.

Debt Ratios are quite good. The Long Term Debt/Market Cap Ratio for 2020 is 0.44 and is low and therefore good. The Liquidity Ratio for 2020 is high and good at 3.25. The Debt Ratio is high and good at 2.09. The Leverage and Debt/Equity Ratios are low and good at 1.92 and 0.92.

The Total Return per year is shown below for years of 5 to 23 to the end of 2020. 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.
2015	5	-21.84%	-0.93%	-4.90%	2.88%
2010	10	-3.50%	1.57%	-4.30%	2.15%
2005	15	-4.28%	-2.38%	-7.06%	2.53%
2000	20	4.94%	8.52%	0.78%	2.21%
1997	23		8.95%	1.94%	2.21%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 10.75, 14.67 and 15.58. The corresponding 10 year ratios are 12.51, 15.23 and 18.72. The corresponding historical ratios are 11.38, 14.78 and 18.45. The current P/E Ratio is 18.70 based on a stock price of $12.90 and EPS estimate for 2021 of $0.69. The current ratio is just under the high median 10 year ratio 18.72. This stock price testing suggests that the stock price is relatively reasonable but above the median and close to expensive.

I get a Graham Price of $11.91. 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 1.08 based on a stock price of $12.90. The current ratio is between the low and median 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year median Price/Book Value per Share Ratio of 1.93. The current P/B Ratio is 1.41 based on a stock price of $12.90, Book Value of $885M, and a Book Value per Share of $9.14. The current ratio is 27% 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 6.28. The current P/CF Ratio is 6.65 based on Cash Flow per Share estimate for 2021 of $1.94, Cash Flow of $187.9M and a stock price of $12.90. The current ratio is 6% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get an historical median dividend yield of 4.13%. The current dividend yield is 3.72% based on dividends of $0.48 and a stock price of $12.90. The current dividend yield is 9.9% below the historical median 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 4.60%. The current dividend yield is 3.72% based on dividends of $0.48 and a stock price of $12.90. The current dividend yield is 19% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median and close to expensive.

The 10 year median Price/Sales (Revenue) Ratio is 1.33. The current P/S Ratio is 0.95 based on Revenue estimate for 2021 of $1,318M, Revenue per Share of $13.61, and a stock price of $12.90. The current ratio is 29% 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 may be cheap. The P/S Ratio testing is showing the stock price as cheap. The problem with the dividend yield test is that dividends have been raised and lowered in the past 10 years and over the life of the payment of dividends. Even through the dividends have been unstable, the testing of dividend yields show the stock price as reasonable if above the median. I like the P/B Ratio test and this shows the stock as cheap also. However, the testing is a mixed bag.

Is it a good company at a reasonable price? I own this company and I still like it. I like it even better as it is expanding is transportation business beyond just for the oil and gas industry. I bought some more shares yesterday. I think it is a good company at a reasonable price, but there is risk with it because it services the oil and gas industry and in its expansion plans.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (7) and Hold (3). The consensus would be a Buy. The 12 month stock price is $15.09. This implies a total return of $20.70%, with 16.98% from capital gains and 3.72% from dividends.

One analyst says it is successfully transforming from oil to general trucking on Stock Chase. This stock is not well followed. Aditya Raghunath on Motley Fool says the CEO is quite clear on getting future growth outside Canada. The executive summary on Simply Wall Street gives this stock 4 stars out of 5. In this case they are right about unstable dividend track record. The site lists 2 risks. A writer on Simply Wall Street likes the company’s current DPR and growing EPS. The Mullen Group is talked about on BNN Bloomberg. He thinks it will do well over the long term.

Mullen Group is one of Canada’s largest logistics providers. Our network of independently operated businesses provides a wide range of service offerings including less-than-truckload, truckload, warehousing, logistics, transload, oversized and specialized hauling transportation. In addition, we provide a diverse set of specialized services related to the energy, mining, forestry, and construction industries in western Canada, including water management, fluid hauling and environmental reclamation. The corporate office provides the capital and financial expertise, legal support, technology and systems support, shared services, and strategic planning to its independent businesses. 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 Friday, May 21, 2021 around 5 pm. Tomorrow on my other blog I will write about Buying for Capital Gains.... learn more on Thursday, May 20, 2021 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

Today I bought some Mullen Group Ltd (TSX-MTL, OTC-MLLGF) as the stock as it is at a lower price than what I paid before. I own this stock and I think the current price is reasonable. The current P/S Ratio is below the 10 year median P/S Ratio. They have started to increase their dividends again, which is a good sign. This is an industrial stock, but it is risky as it services the oil and gas industry.

Sound bite for Hammond Power Solutions Inc for Twitter and StockTwits is: Dividend Growth Industrial. The stock price might be on the expensive side currently. They have raised the dividend in 2019 and 2020 and this is a good sign of the confidence that management has. They can afford their dividends currently. 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. Also, I think that it important to try out newer smaller companies for investment purposes. Companies on the TSX are always changing and it is good to get into new industries and new companies. The problem of this, of course, is you do not always know what industries and companies will be long lasting.

When I was updating my spreadsheet, I noticed I have done better today than last year. At the end of April last year, I had a loss of 0.35% per year. This year I have a gain of 6.75% per year. I had 3.98% per year from capital gain and 2.77% per year from dividends. This stock has good debt ratios.

The dividend yields are moderate with dividend growth low. The dividend yield is currently moderate (2% to 4% ranges) at 3.13%. The 5, 10 and historical dividend yields are also moderate at 3.72%, 3.12% and 3.02%. The dividend growth is low at 7.21% per year over the past 5 years. The last dividend increase was in 2020 and it was for 21.4%. The dividends were flat between 2015 and 2018 inclusive. Over the past 11 years, dividends were raised 7 times.

The Dividend Payout Ratios (DPR) are fine. The DPR for EPS for 2020 is 28% with 5 year coverage at 75.7%. The DPR for EPS reach a height in 2018 of 363% because of an earnings loss and have been declining since. The DPR for CFPS for 2020 is 13% with 5 year coverage at 14%. The DPR for Free Cash Flow for 2020 is 27% with 5 year coverage at 36%.

Debt Ratios are good. The Long Term Debt/Market Cap Ratio is 0.07 and is low and good. The Liquidity Ratio for 2020 is 1.79. The Debt Ratio for 2020 is 2.51. The Leverage and Debt/Equity Ratios for 2020 are 1.66 and 0.66. The debt ratios are good they have mostly always been good.

The Total Return per year is shown below for years of 5 to 19 to the end of 2020. 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.
2015	5	7.21%	9.59%	5.86%	3.72%
2010	10	10.09%	0.68%	-1.91%	2.59%
2005	15	11.77%	12.12%	8.77%	3.35%
2001	19		16.09%	12.86%	3.23%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 5.76. 7.61 and 9.45. The corresponding 10 year ratios are 10.65, 13.65 and 16.64. The corresponding historical ratios are 6.13, 8.26 and 9.85. The current P/E Ratio is 12.09 based on a stock price of $10.88 and EPS estimate for 2021 of $0.90. The current ratio is between the low and median 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $14.04. The 10 year low, median, and high median Price/Graham Price Ratios are 0.57, 0.71 and 0.89. The current P/GP Ratio is 0.77 based on a stock price of $10.88. The current ratio is between the median and high 10 year median ratios. 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 0.81. The current P/B Ratio is 1.12 based on a Book Value of $114.8M, Book Value per share of $9.74 and a stock price of $10.88. The current ratio is 37% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. Also, note that both the 10 year and current P/B Ratios are quite low. Any P/B Ratio below 1.50 is low.

I get a 10 year median Price/Cash Flow per Share Ratio of 5.10. The current P/CF Ratio is 6.80 based on a stock price of $10.88 and Cash Flow for last 12 months of $18.9M, and Cash Flow per Share of $1.60. the current ratio is 33% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I get an historical median dividend yield of 3.02%. The current dividend yield is 3.13% based on dividends of $0.34 and a stock price of $10.88. The current dividend yield is 3.5% 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 3.12%. The current dividend yield is 3.13% based on dividends of $0.34 and a stock price of $10.88. The current dividend yield is 0.3% 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 0.30. The P/S Ratio is 0.39 based on Revenue estimate for 2021 of $331.6M, Revenue per Share of $28.12 and a stock price of $10.88. The current ratio is 28% 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 on the expensive side. I know the dividend yield tests are showing the stock price as reasonable, but the P/S Ratio test does not confirm this. The problem is lack of growth in Revenue. There also seems to be a lack of growth in cash flow too. The testing results is a mixed bag as some show the stock price as reasonable and other as expensive.

Is it a good company at a reasonable price? I own this stock and plan to keep it. I must admit it has not been done well lately, but they have been rising their dividends lately and this is a good sign that the company is confident in the future.

When I look at analysts’ recommendations, I find only one recommendation and it is a Buy. The consensus would be a Buy. I can find a target price of $9.50. This implies a total loss of 9.56%, with a capital loss of 12.68% and dividends of 3.13%. The recommendation and the target price do not match up.

The last entries for this stock on Stock Chase is 2019. It would seem that analysts lost interest in this stock and that is not a good sign. The last write up on Motley Fool is 2013, so they have lost interest in this stock too. The executive summary on Simply Wall Street lists two risks, but gives the company 4 stars out of 5. A writer on Simply Wall Street likes the fact that the company can afford their dividends. A write on Simply Wall Street talks about who owns this stock. An Introdo article on Yahoo Finance talks about the company’s first quarterly results of 2021.

Hammond Power Solutions Inc is engaged in designing and manufacturing of custom electrical magnetics, cast resin, custom liquid filled distribution and power transformers and standard electrical transformers, serving the electrical and electronic industries. The company has manufacturing plants in Canada, the United States, Mexico, and India. 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 was Kirkland Lake Gold (TSX-KL, NYSE-KL) ... learn more. The next stock I will write about will Mullen Group Ltd (TSX-MTL, OTC-MLLGF) ... learn more on Tuesday, May 19, 2021 day, around 5 pm. Tomorrow on my other blog I will write about Pipelines to Buy.... learn more on Tuesday, May 18, 2021 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.

Kirkland Lake Gold

Sound bite for Twitter and StockTwits is: Dividend Growth Materials. It is hard to say if the stock price is reasonable or expensive. If Revenue and EPS will slow down like analyst think, perhaps it is currently expensive. However, analysts also think the stock price will continue to rise strongly. Dividends have gone up massively, and they are currently very affordable. However, the yield is low. The Debt Ratios are very good and this is a positive. 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 to me 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 Revenue, EPS, Stock Price and Cash Flow over the past 5 years is still moving forward sharply. For example, Revenue is up 75% per year over the past 5 years while Revenue per Share is ups by 38% per year over the past 5 year. EPS is up by 91% per year over the past 5 years.

The dividend yields are low with dividend growth high. The current dividend yield is low (less than 2%) at 1.84%. The 3 year median dividend yield is also low at 0.35%. Over the past 3 years, dividends have grown by 203% per year.

The Dividend Payout Ratios (DPR) are good. The DPR for EPS for 2020 is 4.7% with 3 year coverage at 8%. The DPR for CFPS for 2020 is 11% with 3 year coverage at 5%. The DPR for Free Cash Flow for 2020 is 16% with 3 year coverage at 9.5%.

Debt Ratios are good. The company has no long term debt. The Liquidity Ratio for 2020 is good at 1.95. The Debt Ratio is very good at 3.55. The Leverage and Debt/Equity Ratios are good at 1.39 and 0.39

The Total Return per year is shown below for years of 5 to 19 to the end of 2020 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.
2015	5	202.54%	80.15%	79.28%	0.87%
2010	10		13.13%	12.94%	0.19%
2005	15		11.39%	11.26%	0.12%
2001	19		10.38%	10.28%	0.10%

The Total Return per year is shown below for years of 5 to 11 to the end of 2020 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.
2015	5	201.05%	82.64%	81.77%	0.87%
2010	10		12.63%	12.44%	0.19%
2009	11		9.09%	8.93%	0.16%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 9.20, 14.63 and 20.23. The corresponding 10 year ratios are 9.27, 14.75 and 21.65. The corresponding historical ratios are all negative and so cannot be used. The EPS were all negative until 2010 and then occasionally negative after that. The current P/E ratio is 13.23 based on a stock price of $49.60 and EPS estimate for 2021 of $3.75. The current ratio is between the low and median 10 year ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $44.37. The 10 year low, median, and high median Price/Graham Price Ratios are 0.68, 1.19 and 1.72. The current P/GP Ratio is 1.12 based on a stock price of $49.60. The current ratio is between the low and median 10 year ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year median Price/Book Value per Share Ratio of 1.67. The current P/B Ratio is 2.13 based on a stock price of $49.60, Book Value of $6,231M and a Book Value per Share of $23.33. The current ratio is 27% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year median Price/Cash Flow per Share Ratio of 6.81. The current P/CF Ratio is 8.00 based on Cash Flow per Share estimate for 2021 of $6.20, Cash Flow of $1,656M and a stock price of $49.60. The current ratio is 14% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get 3 year median dividend yield of 0.35%. The current dividend yield is 1.84% based on dividends of $0.91 and a stock price of $49.60. The current dividend yield is 425% above the 3 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 2.73. The current P/S Ratio is 4.31 based on Revenue estimate for 2021 of $3,073M, Revenue per Share of $11.51 and a stock price of $49.60. The current ratio is 58% 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 reasonable to expensive. The testing shows the stock price as cheap and expensive and positions in between. Analysts seem to expect Revenue and EPS to slow down a lot in the near future. It is because of revenue showdown that the P/S Ratio test shows the stock as expensive. The P/S Ratio is one of my favourite tests.

Is it a good company at a reasonable price? It is hard to say if the stock price is reasonable or not. If the Revenue and EPS are going to slow as analysts think, perhaps the price is expensive. This is a gold company, so it is high risk. Having good debt ratios is certainly a positive.

When I look at analysts’ recommendations, I find Strong Buy (6), Buy (4), Hold (2) and Underperform (1). The consensus would be a Buy. The 12 month stock price of $67.80. This implies a total return of 38.53% with 36.69% from capital gains and 1.84% from dividends.

Analysts on Stock Chase certainly like this stock. Chris MacDonald on Motley Fool likes this stock as a long term hedge and especially Kirkland Lake because of its balance sheet. The executive summary on Simply Wall Street gives this stock 4 stars out of 5 and lists one risk. The risk is unstable dividends, but they are wrong. Dividends switched from paying in CDN$ to US$, but they are stable. A writer on Simply Wall Street thinks the dividends can grow because of increasing EPS.

Kirkland Lake Gold Ltd is a Canada-based gold mining, development, and exploration company with a diversified portfolio of exploration projects. The production profile of the company includes the Macassa mine complex located in northeastern Ontario and the Fosterville gold mine located in the State of Victoria, Australia. Also, the company owns the Holt mine and the Detour mine. 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 Monday, May17, 2021 around 5 pm.

Also, on my book blog I have put a review of the book The Written World by Martin Puchner 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.

Ag Growth International

Sound bite for Twitter and StockTwits is: Dividend Paying Industrial. The stock price is probably reasonable. In the future, the dividend portion of the company will be a lot lower than in the past. It is uncertain when they might rise dividends in the future. The Dividend Payout Ratios are expected to improve. Debt Ratios need to improve. See my spreadsheet on Ag Growth International.

I own this stock of Ag Growth International (TSX-AFN, OTC-AGGZF). I wanted to review all the income trust stocks touted in the Money Show of 2009. There was a lot of talk at this show about some of the Income Trust being currently good buys with very good yields. It was on the Canadian Dividend Aristocrats and this is why I first investigated this company. By 2011 when I bought this stock, I have been interested in AFN for some time. This stock is a play on the agricultural sector.

When I was updating my spreadsheet, I noticed it is recovering from the lows of 2020. I have had this for almost 10 years and have made a total return of 8.35% per year with 2.20% from capital gains and 6.15% from dividends. They have a loss in 2020 because costs have increased. Like other old income trust companies, this one is also having a hard time in the switch to a corporation. It kept the old high dividend as long as it could, but at some point, the dividend has to be covered by the EPS. With the pandemic problems it could no longer do this. Most of what I have earned was in dividends.

The dividend yields are currently low with dividend growth non-existent. The current dividend yield is low (below 2%) at 1.49%. This company used to be an income trust, so dividend yields in the past were higher. The 5 year median dividend yield is moderate (2% to 4%) at 4.42%. The 10 year and historical median dividend yields are good (5% to 6% ranges) at 5.22% and 5.86%. This stock has a high dividend yield in the past at 12.04% because it was an income trust and income trust can pay larger dividends than corporations.

When this stock changed to a corporation, it kept its dividend flat from 2011 to 2019. However, as a corporation it must be able to coverage the Dividends by the EPS. It reduced the dividends by 75% in 2020. It has raised it dividends in the past before becoming a corporation. The current dividend is affordable. Hopefully, in the future it will again raise dividends, but this is not expected in the short term.

The Dividend Payout Ratios (DPR) are expected to improve over the next little while. The DPR for EPS for 2020 is not calculable because of an earnings loss. The 5 year coverage is at 426%. The DPR for EPS for 2021 is expected to be around 27%. The DPR for CFPS for 2020 is 26% with 5 year coverage at 75%. The DPR for CFPS is not expected to be a good one until 2022 and then it is expected to be around 10%. The DPR for Free Cash Flow for 2020 is 57% with 5 year coverage at 3561%. The DPR for FCF is expected to around 16% in 2021.

Debt Ratios need to be improved. The Long Term Debt/Market Cap for 2020 is 0.74. The Liquidity Ratio is good at 1.53. The Debt Ratio is too low at 1.22. I prefer this to be at 1.50 or higher. It generally was in the past. The Leverage and Debt/Equity Ratios for 2020 are at 5.62 and 4.62. These are too high and I prefer them to be under 3.00 and 2.00, respectively.

The Total Return per year is shown below for years of 5 to 17 to the end of 2020. 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.
2015	5	-15.24%	4.59%	-2.16%	6.75%
2010	10	-6.56%	0.59%	-5.05%	5.64%
2005	15	-1.94%	14.74%	4.21%	10.52%
2003	17	1.87%	19.52%	6.51%	13.01%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 22.79, 31.76 and 41.02. The corresponding 10 year ratios are 19.76, 25.30 and 29.35. The corresponding historical ratios are 14.34, 21.29 and 25.65. The current P/E Ratio is 17.96 based on a stock price of $40.22 and EPS estimate for 2021 of $2.24. The current ratio is below the 10 year low median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $26.44. The 10 year low, median, and high median Price/Graham Price Ratios are 1.43, 1.88 and 2.16. The current P/GP Ratio is 1.52 based on a stock price of $40.22. The current ratio is between the low and median 10 year ratios. 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 2.55. The current ratio is 2.90 based on a Book Value of $259M, Book Value per Share of $13.87 and a stock price of $40.22. The current ratio is 14% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a 10 year median Price/Cash Flow per Share Ratio of 16.13. The current P/CF Ratio is 64.87 based on a stock price of $40.22, Cash Flow per Share estimate for 2021 of $0.62 and Cash Flow of $11.6M. The current ratio is 302% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I do not know why the expected Cash Flow per Share for this company is so low for 2021 which is a drop of 84%. The Cash Flow per Share estimate for 2022 is $5.84, with a Cash Flow of $1,089M and a stock price of $40.22. The P/CF Ratio for 2022 is 6.89 and this is 57% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. The CFPS estimate for 2022 seems to be rather high.

The Cash Flow for the last 12 months is $74.17, Cash Flow per Share is $3.98 and a stock price of 40.22, gives a P/CF Ratio of 7.50. This ratio is 54% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. It is probably better to exclude P/CF Ratio testing for this stock.

I get an historical median dividend yield of 5.86%. The current dividend yield is 1.49% based on dividends of $0.60 and a stock price of $40.22. The current yield is 75% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year median dividend yield of 5.22%. The current dividend yield is 1.49% based on dividends of $0.60 and a stock price of $40.22. The current yield is 71% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive.

The 10 year median Price/Sales (Revenue) Ratio is 1.25. The current P/S Ratio is 0.67 based on a stock price of $40.22, Revenue estimate for 2021 of $1,126M and Revenue per Share of $60.35. The current ratio is 47% 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. The best tests are probably the P/S Ratio, the P/GP Ratio, and the P/B Ratio tests. The dividend test would not work because of the recent dividend cut and the dividends has been flat for a while. It used to have high dividend yields because it used to be an income trust. I wonder about the P/E Ratio test as the ratio are on the high side, but a ratio of 17.96 is not that high. I find nothing wrong with the P/GP nor the P/B Ratio tests.

Is it a good company at a reasonable price? The stock price is probably reasonable. I bought this stock for diversification purposes and that has not changed. I still think I will make a reasonable long term return on this stock and I have no intentions of selling this stock.

When I look at analysts’ recommendations, I find Strong Buy (2), Buy (4) and Hold (1). The consensus would be a Buy. The 12 month stock price consensus is $54.00. This implies a total return of 35.75% with 1.49% from dividends and 34.26% from capital gains.

Analysts do not cover this stock well on Stock Chase. Nikhil Kumar on Motley Fool thinks the recent investment and initiatives on the other five continents (outside North America) are expected to provide growth and geographic diversification over the long-term. The executive summary on Simply Wall Street gives this stock 3 stars out of 5 and one risk factor. A writer on Simply Wall Street thought the fair price for this stock in January 2021 was $33.37 CDN$. The Blogger Dividend Earner reviewed this company last year.

Ag Growth International Inc manufactures portable and stationary grain handling, storage, and conditioning equipment, including augers, belt conveyors, grain storage bins, grain handling accessories, grain aeration equipment, and grain drying systems. It has manufacturing facilities in Canada, the United States, Italy, Brazil, France, United Kingdom, and India. Its geographical segments are Canada, United States, and the International. Its web site is here Ag Growth International.

The last stock I wrote about was about was Power Corp of Canada (TSX-POW, OTC-PWCDF) ... learn more. The next stock I will write about will be Kirkland Lake Gold (TSX-KL, NYSE-KL) ... learn more on Friday, May 14, 2021 around 5 pm. Tomorrow on my other blog I will write about Going to Cash.... learn more on Thursday, May 13, 2021 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.