Ballard Power Systems Inc

Sound bite for Twitter and StockTwits is: Industrial Sector Stock. Stock price could be expensive. Ballard basically gets it money from issuing new shares. They have revenue, but no earnings and no cash flow to speak of. They have good debt ratios. See my spreadsheet on Ballard Power Systems Inc.

Is it a good company at a reasonable price? The stock price would seem to be currently expensive. Because the stock price is expected to fall, it would seem that analysts think it is currently too high also. The company has no earnings and cash flow, but does have revenue.

I do not own this stock of Ballard Power Systems Inc (TSX-BLDP, NASDAQ-BLDP). Back in 1997, I read about Ballard and fell in love with the idea of cars running with fuel cells. I could help save the environment and make some money. It was very attractive. I sold this stock in 2006 because it had lost its attraction. It did not seem that Ballard fuel cells would be in any car anytime soon. I was ahead in 2000, but the stock started to fall in October 2000 and never recovered.

When I was updating my spreadsheet, I noticed that last year, analysts expected Revenue at 119M and it came in at 104M. For 2021, they expected Revenue at $154M and it came in at $105M. For a while there in late 2020 and early 2021, this stock was above the $17.35 I paid for this stock in 1997. I sold at a loss in 2006 because I felt it was never going anywhere anytime soon.

If you had invested in this company in December 2011, $1001.00 you would have bought 910 shares at $1.10 per share. In December 2021, after 10 years you would have received $0 in dividends. The stock would be worth $14,459.90. Your total return would have been $14,459.90. However, the stock has fallen this year and at present, these shares would be worth $8,226.40.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$1.10	$1,001.00	910	10	$0.00	$14,459.90	$14,459.90

There are no dividends on this stock. The stock never paid dividends.

Debt Ratios are good. The Long Term Debt/Market Ratio is 0.00. There is not much of any long term debt. The Liquidity Ratio for 2022 is 14.78. The Debt Ratio is 12.78. The Leverage and Debt/Equity Ratio are 1.08 and 0.08.

The Total Return per year is shown below for years of 5 to 26 to the end of 2021 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.
2016	5	0.00%	48.24%	48.24%	0.00%
2011	10	0.00%	30.61%	30.61%	0.00%
2006	15	0.00%	5.97%	5.97%	0.00%
2001	20	0.00%	-5.34%	-5.34%	0.00%
1996	25	0.00%	2.78%	2.78%	0.00%
1995	26	0.00%	4.55%	4.55%	0.00%

The Total Return per year is shown below for years of 5 to 26 to the end of 2021 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.
2016	5	0.00%	50.07%	50.07%	0.00%
2011	10	0.00%	27.81%	27.81%	0.00%
2006	15	0.00%	5.42%	5.42%	0.00%
2001	20	0.00%	-4.16%	-4.16%	0.00%
1996	25	0.00%	3.09%	3.09%	0.00%
1995	26	0.00%	4.87%	4.87%	0.00%

The 5 year low, median, and high median Price/Earnings per Share Ratios are all negative and therefore useless. The corresponding 10 year ratios are also negative and useless. The corresponding historical ratios are also negative and useless. The company does not have any earnings and is not likely to have any earnings anytime soon. This is not a viable test.

Without any earnings, a Graham Price test is also not a viable test.

I get a 10 year median Price/Book Value per Share Ratio of 3.71. The current P/B Ratio is 1.84 based on a stock price of $7.97, Book Value of $1,286M and Book Value per Share of $4.32. The current ratio is 50% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$ and you will get similar results in CDN$.

Cash Flow is negative, so I can do not viable test here. There are no dividends, so no dividend tests can be done.

The 10 year median Price/Sales (Revenue) Ratio is 5.04. The current P/S Ratio is 21.36 based on Revenue estimate for 2022 of $111M, Revenue per Share of $0.37 and a stock price of $7.97. The current ratio is 324% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$ and you will get similar results in CDN$.

Results of stock price testing is that the stock price is probably currently expensive. I base this on the P/S Ratio test. I note that the P/B Ratio tests says that the stock is cheap. However, this company has no earnings and no earnings in the foreseeable future.

When I look at analysts’ recommendations, I find Strong Buy (3), Buy (5), Hold (13), Underperform (1) and Sell (1). The consensus would be a Hold. The 12 month stock price consensus is $9.59 ($7.47 US$). This implies a capital loss of 6.19% based on a current stock price of $10.22.

There are analysts’ comments on Stock Chase but not much in recommendations to buy. Stock Chase gives this stock 3 stars out of 5. Amy Legate-Wolfe on Motley Fool thinks this might be a good alternative energy option. Sneha Nahata on Motley Fool thinks this stock could outperform the TSX in the long term. The company in a Press Release talks about their fourth quarter result. The company in a Press Release talks about their first quarter of 2022 result.

Simply Wall Street report on Yahoo Finance talks about this company cash burn. Simply Wall Street has one warning for this company of currently unprofitable and not forecast to become profitable over the next 3 years

Ballard is a world leader in proton exchange membrane fuel cell, power system development, and commercialization. The company's principal business is the design, development, manufacture, sale and service of PEM fuel cell products for a variety of applications, focusing on power product markets of heavy-duty motive (consisting of bus, truck, rail, and marine applications), material handling, and stationary power generation. Sales are concentrated in the U.S., Europe, and China. Its web site is here Ballard Power Systems Inc.

The last stock I wrote about was about was Savaria Corporation (TSX-SIS, OTC-SISXF) ... learn more. The next stock I will write about will be Loblaw Companies Ltd (TSX-L, OTC-LBLCF) ... learn more on Tuesday, August 2, 2022 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.

Savaria Corporation

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. The stock price is reasonable and it may be cheap. Debt, Intangibles and Goodwell have increased a lot lately. Dividend growth is down. Analysts still believe this stock will do well this year in its stock price. See my spreadsheet on Savaria Corporation.

Is it a good company at a reasonable price? The stock price is reasonable. Shareholders have done quite well with this dividend growth stock. However, the recent Simply Wall Street report does make some good points of declining ROE and Profit Margins. So, this probably makes this stock riskier. Certainly, I think the company realizes that dividends are too high and the last two increases have been around 4%.

I do not own this stock of Savaria Corporation (TSX-SIS, OTC-SISXF). I got this stock off the Dividend Blogger site that no longer exists. I am always interested in dividend growth small cap stock. The first few years of accounting were rather confusing, but I think I figured them out in the end.

When I was updating my spreadsheet, I noticed is that Long Term Debt has increased over the past year by 661%. Long Term Debt/Market Cap is fine at 0.31. They made some Business Acquisitions. Also, Intangibles and Goodwill has increased by 250% over the past year. The Intangible Goodwill/Market Cap Ratio is ok at 0.54. The reason that Earnings went down even though Revenue was up was because of Financing Costs.

If you had invested in this company in December 2011, $1001.10 you would have bought 705 shares at $1.42 per share. In December 2021, after 20 years you would have received $2,043.58 in dividends. The stock would be worth $13,507.80. Your total return would have been $15,551.38.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$1.42	$1,001.10	705	10	$2,043.58	$13,507.80	$15,551.38

The dividend yields are moderate with dividend growth good. The current dividend yields are moderate (2% to 4% ranges) at 3.79%. The 5, 10 and historical dividend yields are also moderate at 2.62%, 3.31% and 3.54%. The dividend growth is good (15% and above) at 17.7% per year over the past 5 years. For this stock, the dividend growth has been good for the past 16 years. See chart below. However, the last two dividend increases have been low at around 4%.

The Dividend Payout Ratios (DPR) are fine or going to be fine. The DPR for EPS for 2021 is 255% and with 5 year coverage at 97%. This is the highest these numbers have been. Analysts expect these numbers to moderate this year, with DPR for EPS to be around 77% in 2022 and 59% in 2023. There is Adjusted Earnings per Share (AEPS) data. The DPR for AEPS for 2021 is 131% with 5 year coverage at 88%. These are also expected to moderate this year to 70% and moderate to 56% in 2023. The DPR for Cash Flow per Share for 2021 is 36% with 5 year coverage at 41%. The DPR for Free Cash Flow (FCF) 71% with 5 year coverage at 77%. (However, this is quite a bit of disagreement on what the FCF is.)

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2021 is low and good at 0.31. The Liquidity Ratio is good at 1.93. The Debt Ratio is good at 1.65. The Leverage and Debt/Equity Ratios are fine at 2.55 and 1.55.

The Total Return per year is shown below for years of 5 to 20 to the end of 2021. 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.
2016	5	17.67%	14.95%	12.00%	2.94%
2011	10	14.99%	35.74%	29.72%	6.02%
2006	15	22.90%	19.23%	16.26%	2.97%
2001	20	20.36%	18.85%	16.52%	2.33%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 21.85, 30.31 and 38.77. The corresponding 10 year ratios are 14.96, 23.56 and 29.88. The corresponding historical ratios are 14.31, 18.41 and 22.18. The current P/E Ratio is 20.29 based on a stock price of $13.19 and EPS estimate for 2022 of $0.65. This ratio is between the 10 year low and median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $9.80. The 10 year low, median, and high median Price/Graham Price Ratios are 1.26, 1.65 and 2.01. The current P/GP Ratio is 1.35 based on a stock price of $13.19. The current ratio is between the low and median ratios of the 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 2.86. The current P/B Ratio is 2.01 based on a stock price of $13.19, Book Value of $421.8M and Book Value per Share of $5.67. The current P/B Ratio is 30% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median Price/Cash Flow per Share Ratio of 15.36. The current P/CF Ratio is 10.07 based on Cash Flow per Share estimate for 2022 of $1.31, Cash Flow of $84M and a stock price of $13.19. The current ratio is 34% below the 10 year median ratio. This stock price testing suggests that the stock price is cheap.

I get an historical median dividend yield of 3.54%. The current dividend yield is $3.79% based on dividends of $0.5004 and a stock price of $13.19. The current dividend yield is 7% 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 3.31%. The current dividend yield is $3.79% based on dividends of $0.5004 and a stock price of $13.19. The current dividend yield is 14.7% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.

The 10 year median Price/Sales (Revenue) Ratio is 1.76. The current P/S Ratio is 1.09 based on Revenue estimate for 2022 of $779M, Revenue per Share of $12.13 and a stock price of $13.19. The current ratio is 38% 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 reasonable and maybe cheap. The Dividend yield tests are saying that the stock price is reasonable, but the P/S Ratio test is saying the stock price is cheap.

When I look at analysts’ recommendations, I find Strong Buy (1) and Buy (7). The consensus would be a Buy. The 12 months stock price consensus is $22.31. This implies a total return of 72.94% with 69.14% from capital gains and 3.79% from dividends based on a stock price of $13.19.

Analysts on Stock Chase have various views on the company, but mostly like it. Stock Chase gives this company 4 stars out of 5. It is not on Money Sense’s list. Jitendra Parashar on Motley Fool thinks this is a good stock for passive income. Motley Fool believes this stock will return solid returns over the long term. He says it is selling 40% below its 52 weeks high. The company has a Press Release on its fourth quarter 2021 results. The has put out a Press Release on First Quarter of 2022 results.

Simply Wall Street report on Yahoo Finance talks about the company’s week ROE. Simply Wall Street gives four warnings on this company of debt is not well covered by operating cash flow; dividend of 3.83% is not well covered by earnings or forecast to be in the next 3 years; large one-off items impacting financial results and profit margins (1.8%) are lower than last year (6.5%).

Savaria Corp designs, engineers, and manufactures products for personal mobility. Its products include home elevators, wheelchair lifts, commercial elevators, ceiling lifts, stairlifts, and van conversions. Its web site is here Savaria Corporation.

The last stock I wrote about was about was TECSYS Inc (TSX-TCS, OTC-TCYSF) ... learn more. The next stock I will write about will be Ballard Power Systems Inc (TSX-BLDP, NASDAQ-BLDP0 ... learn more on Friday, July 29, 2022 around 5 pm. Tomorrow on my other blog I will write about Building Your Pension Plan.... learn more on Tuesday, July 28, 2022 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.

TECSYS Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Tech. The stock price is expensive. Dividend yield is very low, but people are not going to buy this company for the dividend. Debt Ratios are good. Ratios are high, but this is a Tech company. See my spreadsheet on TECSYS Inc.

Is it a good company at a reasonable price? I still like this company. I do not sell stock just because they are expensive. However, I will not buy any more of the shares of this company at this time. It is a small cap and therefore risky. It is a Tech company and it is probably going to always be expensive to buy.

I own this stock of TECSYS Inc (TSX-TCS, OTC-TCYSF). I came across this stock when I was looking for a dividend paying small cap stock as a filler stock. This is a small cap dividend paying stock that I like. You never know how small caps will turn out. I took a chance on another small cap in 2000 and ended up owning some 6 shares in an African copper main worth just over $1.00. However, on this stock I have done well earning 30% per year over the past 11 years.

When I was updating my spreadsheet, I noticed earnings were expected to go down 8% to $0.45, but they went down 38% to $.30. Revenue went down because the ratio of the Cost of Revenue to Revenue went up. Note that this company has an April 30 ending for the financial year. So, I am looking at financials ending April 30, 2022.

If you had invested in this company in December 2011, $1001.27 you would have bought 449 shares at $2.23 per share. In December 2021, after 10 years you would have received $718.40 in dividends. The stock would be worth $23,621.89. Your total return would have been $24,340.29. Unfortunately, the stock price has decline and recently, this stock would be worth only $13,829.20. But that is still a good increase and we are probably in a bear market.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$2.23	$1,001.27	449	10	$718.40	$23,621.89	$24,340.29

The dividend yields are low with dividend growth good. The current dividend yield is quite low (below 2%) at 0.91%. The 5, 10 and Historical median dividend yields are also low at 1.24%, 1.26% and 1.42%. The dividends have increased at a good rate (15% or higher) at 15.7% per year over the past 5 years. However, the last dividend increase, which was in 2022 was lower at 7.7%.

The Dividend Payout Ratios (DPR) are high, but are expected to improve. The DPR for EPS for 2022 is 90% with 5 year coverage at 79%. The DPR for EPS is expected to raise over 100% in 2023 before fall to around 50% in 2024. The DPR for Cash Flow per Share for 2022 is 17% with 5 year coverage at 33%. The DPR for Free Cash Flow (FCF) for 2022 is 104% with 5 year coverage at 44%. The DPR for FCF is expected to fall to 46% in 2023.

Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2022 is low and good at just 0.02. The Liquidity Ratio for 2022 is good at 1.71. The Debt Ratio for 2022 is good at 2.20. The Leverage and Debt/Equity Ratios are also good at 1.83 and 0.83.

The Total Return per year is shown below for years of 5 to 23 to the end of 2021. 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.
2016	5	15.74%	42.22%	40.94%	1.45%
2011	10	16.23%	38.89%	37.18%	2.08%
2006	15	14.61%	29.51%	27.98%	1.77%
2001	20		17.96%	17.45%	0.90%
1998	23		13.27%	12.94%	0.46%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 45.94, 80.45 and 85.87. The corresponding 10 year ratios are 32.25, 42.86 and 53.46. The corresponding historical ratios are 13.17, 16.41 and 19.65. You can see from this that the stock prices have move higher a lot quicker than EPS. The current P/E Ratio is 147.75 based on a stock price of $34.46 and EPS for 2023 of $0.24. The current P/E Ratio is very high and higher than the high ratio of 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive.

The P/E Ratio is dropping to 64.47 next year based on a stock price of $35.46 and EPS estimate for 2024 of $0.55. This is still a high ratio, but not uncommon for Tech stocks. Although you must be careful buying stock at this high a ratio. It should not be a long term buy.

I get a Graham Price of $5.05. The 10 year low, median, and high median Price/Graham Price Ratios are 2.48, 3.30 and 4.12. These are also very high ratios. The current P/GP Ratio is 7.03 based on a stock price of $34.56. The current P/GP Ratio is higher than the high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year median Price/Book Value per Share Ratio of 4.25. The current P/B Ratio is 7.52 based on a Book Value of $68.68M, Book Value per Share of $4.72 and a stock price of $34.56. The current ratio is above the 10 year median ratio by 77%. 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 26.63. The current P/CF Ratio is 27.02 based on Cash Flow for last 12 months of $19M, Cash Flow per Share of $1.31 and a stock price of $34.56. The current P/CF Ratio is 1.5% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median. However, these ratios are rather high ones.

I get an historical median dividend yield of 1.42%. The current dividend yield is 0.79% based on dividends of $2.80 and a stock price of $34.56. The current dividend yield is 44% 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 1.26%. The current dividend yield is 0.79% based on dividends of $2.80 and a stock price of $34.56. The current dividend yield is 37% 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 2.07. The current P/S Ratio is 3.49 based on Revenue estimate for 2023 of $148M, Revenue per Share of $10.16 and a stock price of $34.56. The current P/S Ratio is 68% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

Results of stock price testing is that the stock price is probably expensive. The dividend yield tests show this and this is confirmed by the P/S Ratio test. All the tests, except for the P/CF Ratio test, shows the stock price as expensive. This is interesting.

Last year I said that the results of stock price testing were that the stock price was probably expensive. The dividend yield tests show this and it is confirmed by the P/S Ratio test. However, all the testing points to that fact that the stock price is relatively expensive.

Is it a good company at a reasonable price? Last year’s answer was that I still like this company and would not sell just because it is expensive. I also do not think now is the time to start to lock in my profit on this stock. However, now is probably not the time to buy this company. Also, I generally do not buy dividend stock when the yield is below 1%. (I have not changed my mind on this.)

When I look at analysts’ recommendations, I find Strong Buy (1) and Buy (6). The consensus would be a Buy. The 12 month stock price consensus is $47.50. This implies a total return of $34.74% with 33.95% from capital gains and 0.79% from dividends based on a stock price of $34.56.

When I look at analysts’ recommendations last year, I found Strong Buy (1), Buy (4). The consensus would be a Buy. The 12 month stock price consensus is $61.00. This implies a total return of $24.69% with 0.53% from dividends and 24.16% from capital gains based on a stock price of $49.13. What happened was a stock price decline to $34.46 and a Total Loss of $27.29% with a capital loss of 27.82 and dividends of $0.53%. However, the stock did reach a high of $63.21 in February 2021. It has a YTD decline of 33%. It is a Tech stock and lots of Tech stocks are down this year.

An entry for March 2022 on Stock Chase says it is cheap. Stock Chase gives this stock 4 stars out of 5. It is not on Money Sense’s list because it is a small cap. Christopher Liew on Motley Fool says it is a quality stock with pricing powers. Adam Othman on Motley Fool says if this tech company can continue its growth, it will turn $1,000 into $10,000 in 10 years’ time. The company put out a Press Release on their fourth quarter results for April 2022. Simply Wall Street reporting via Yahoo Finance says they like the way this company handles debt. They show one risk of profit margins (3.3%) are lower than last year (5.8%).

TECSYS Inc is engaged in the development and sale of enterprise supply chain management software for distribution, warehousing, transportation logistics, point-of-use, and order management. It also provides related consulting, education, and support services. Geographically, it derives a majority of revenue from the United States and also has a presence in Canada and Other Countries. Its web site is here TECSYS Inc.

The last stock I wrote about was about was Pulse Seismic Inc (TSX-PSD, OTC-PLSDF) ... learn more. The next stock I will write about will be Savaria Corporation (TSX-SIS, OTC-SISXF) ... learn more on Wednesday, July 27, 2022 around 5 pm. Tomorrow on my other blog I will write about Investing for the Long Term. .... learn more on Tuesday, July 26, 2022 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.

Pulse Seismic Inc

Sound bite for Twitter and StockTwits is: Dividend Paying Industrial. The stock price is reasonable and maybe cheap. The company has restarted their dividends. This is a very good sign. They have also paid off their long term debt. This is another good sign. See my spreadsheet on Pulse Seismic Inc.

Is it a good company at a reasonable price? The stock price is reasonable and maybe cheap. After several years of earnings losses, 6 in the past 10 years, this company seems to be recovering. However, it is a small cap that services the energy sector and therefore rather risky. Dividend payments have been sporadic.

I do not own this stock of Pulse Seismic Inc (TSX-PSD, OTC-PLSDF). I wanted to invest some extra money in a dividend paying small cap. I used a Stock Filter. I asked for companies that were priced between $1 and $5.50 and had a yield between 4% and 20%. Pulse Seismic Inc. was one of the companies that were returned. This is not a stock I chose to invest in but I found it of interest so I am following it.

When I was updating my spreadsheet, I noticed that in 2021 and first quarter of 2022, the company paid off all their debt, so they are debt free. Their Liquidity Ratio is quite high 2021 at 2.73 and in the first quarter at 7.12.

If you had invested in this company in December 2011, $1001.00 you would have bought 572 shares at $1.75 per share. In December 2021, after 10 years you would have received $311.74 in dividends. The stock would be worth $1,252.68. Your total return would have been $1,564.42.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$1.75	$1,001.00	572	10	$311.74	$1,252.68	$1,564.42

The dividend yields are moderate with dividends are restarting. The current dividend yield is moderate (2% to 4% ranges) at 2.33. The 5 and 10 year dividend yield are low (below 2%) at 0.00% and 0.35%. This is because there were no dividends between 2005 and 2021. The historical median dividend year is moderate at 2.11%. The company has a mixed record on dividends. In the 18 years they increased dividends 6 times and decreased them 3 time. There have been times of no dividends. There have been special dividends.

The Dividend Payout Ratios (DPR) seem currently fine. The DPR for EPS for 2021 is 13% with 5 year coverage at 56%. The DPR for EPS for 2022 is expected to be 50% with 5 year coverage at 37%. The DPR for Cash Flow per Share for 2021 is 2% with 5 year coverage at 12%. The DPR for Free Cash Flow (FCF) for 2021 is 10% with 5 year coverage at 94%.

Debt Ratios are good to very good. The Long Term Debt/Market Cap ratio is good and very low at 0.02. The company just paid off 92% of their debt in 2021. The Liquidity Ratio is very good and high at 2.73. The Debt Ratio is very good and high at 6.04. The Leverage and Debt/Equity Ratios for 2021 are low and good at 1.20 and 0.20.

The Total Return per year is shown below for years of 5 to 23 to the end of 2021. 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.
2016	5	-6.70%	-0.07%	-2.22%	2.15%
2011	10	-15.27%	5.25%	2.27%	2.98%
2006	15	-7.41%	2.33%	-0.50%	2.83%
2001	20		7.25%	2.93%	4.32%
1998	23		13.60%	7.39%	6.21%

The 5-year low, median, and high median Price/Earnings per Share Ratios are negative and therefore unusable. The corresponding 10-year ratios are negative and therefore unusable. The corresponding historical ratios are 2.36, 4.43 and 5.71. The current P/E Ratio is 21.50 based on a stock price of $2.15 and EPS estimate for 2022 of $0.10. This ratio is above the high ratio of the 10-year median ratios. This stock price testing suggests that the stock price is relatively expensive. A ratio of 21.50 is also considered to be a rather high ratio.

I get a Graham Price of $1.31. The 10-year low, median, and high median Price/Graham Price Ratios are 0.90, 1.16 and 1.50. The current P/GP Ratio is 1.64 based on a stock price of $2.15. The current ratio is above the high of the 10-year median ratios. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year median Price/Book Value per Share Ratio of 3.40. The current P/B Ratio is 2.82 based on a Book Value of $40.6M, Book Value per Share of $0.76 and a stock price of $2.15. The current ratio is 17% 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 7.33. The current P/CF Ratio is 3.94 based on Cash Flow for the last 12 months of $29.35M, Cash Flow per Share of $0.55 and a stock price of $2.15. The current ratio is 46% 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 2.11%. The current dividend yield is 2.33% based on Dividends of $0.05 and a stock price of $2.15. The current dividend yield is 10% 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 0.35%. The current dividend yield is 2.33% based on Dividends of $0.05 and a stock price of $2.15. The current dividend yield is 559% 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 5.76. The current P/S Ratio is 4.30 based on a stock price of $2.15, Revenue estimate for 2022 of $26.9M and Revenue per Share of $0.50. The current ratio is 25% 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, if not cheap. The dividend yield tests show the stock as reasonable and cheap. However, the dividend yield for the 10-year test is very low because of a period of no dividends. The P/S Ratio test shows the stock price as cheap.

Last year my results of stock price testing were that the stock price was probably cheap. The P/S Ratio testing is showing this. The P/E Ratio is nominally a very low ratio showing the stock is cheap. Problem with the P/B Ratio test and the P/CF Ratio test is the decline in earnings and cash flow over the past 5 years.

When I look at analysts’ recommendations, I find a Hold (1) recommendation. The consensus would be a Hold. The 12 month stock price is $2.60. This implies a total return of 23.26% with 20.93% from capital gains and 2.33% from dividends.

When I look at analysts’ recommendations last year, I found a Buy (1) recommendation. The consensus would therefore be a Buy. The 12 month stock price consensus is $2.40. This implies a total return of 26.32%, all from capital gains based on a stock price of $1.90. What happened was a stock price move to $2.15 and a gain of 15.82 with 13.16% from capital gains and 2.66% from dividends. See the report here.

The last analyst comment was back in 2018 on Stock Chase. Stock Chase gives this stock 1 star out of 5. David Jagielski on Motley Fool picked 5 random stock to see how they would do over 1, 2 and 3 years. These 5 stocks included Pulse Seismic Inc. Interesting study. There company releases results on Newswire for their fourth quarter. The company releases their first quarterly results for 2022 on Newswire.

Simply Wall Street on Yahoo Finance reviews this stock. Simply Wall Street issued two warnings on this stock of unstable dividend track record and does not have a meaningful market cap (CA$117M).

Pulse Seismic Inc is a Canadian company which acts as a provider of seismic data to the energy sector in western Canada. The company is engaged in the acquisition, marketing, and licensing of 2D and 3D seismic data to the energy sector. Its web site is here Pulse Seismic Inc.

The last stock I wrote about was about was Dorel Industries Inc (TSX-DII.B, OTC-DIIBF) ... learn more. The next stock I will write about will be TECSYS Inc (TSX-TCS, OTC-TCYSF) ... learn more on Monday, July 25, 2022 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.

Dorel Industries Inc

Sound bite for Twitter and StockTwits is: Consumer Sector Stock. The stock price is cheap. They have suspended their dividends. They have had earning losses in 6 of the last 10 years. They also have a debt problem. See my spreadsheet on Dorel Industries Inc.

Is it a good company at a reasonable price? The stock price is cheap. However, just because the stock price is cheap, does not make this a good buy. Because they are a family owned business, the management is motivated to make money. However, that does not mean that they will. Covid has caused them problems. A number of businesses have suffered from problems due to Covid. They have not all survived. I suggest that a buy of this company is risky.

I do not own this stock of Dorel Industries Inc (TSX-DII.B, OTC-DIIBF), but I used to. This was a stock recommended by Investment Reporter as a conservative investment. I sold the stock in 2006 because I had it for 7 years from 1999 and it was going nowhere. I bought this stock before I stopped working and at that time, I did not mind buying stocks with no dividends. Dividends were start later, in 2007.

When I was updating my spreadsheet, I noticed this company is publishing data for Adjusted Net Income and Adjusted EPS. I have updated my spreadsheet accordingly. This company has a lot of income for the first quarter, but that is because they sold a business. Because of this, they are also giving a Special Dividend of $12.00.

If you had invested in this company in December 2010, $1022.00 you would have bought 44 shares at $25.55 per share. In December 2021, after 10 years you would have received $422.55 in dividends. The stock would be worth $819.60. Your total return would have been $1,242.15.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$25.55	$1,022.00	40	10	$422.55	$819.60	$1,242.15

This company suspended dividends in 2019. Because of a sale of assets, but company is giving a special dividend payment of $12.00 per share in 2022.

The Dividend Payout Ratios (DPR) are not currently applicable because dividends were suspended in 2019. However, the DPR for EPS got very high in from 2017 due to earnings losses. This company has had earnings losses in 6 years over the last 10 years. Companies should not pay dividends when they have earnings losses.

The Long Term Debt is too high. The Long Term Debt/Market Cap Ratio for 2022 is 0.82. This is rather high and it is due to an 245% increase in the Long Term Debt. The current ratio is 1.22 and this is due to a drop in the stock price. In the first quarter of 2022, the debt was cut by 53%. If this ratio is over 1.00, it means that the Long Term Debt is higher than the Market Cap of the stock. This is not a good situation.

The Liquidity Ratio is good at 1.83. The Debt Ratio is low at 1.34 and I like to see this at 1.50 or higher. The present Debt Ratio is higher at 1.51. The Leverage and Debt/Equity Ratios for 2022 are too high at 3.95 and 2.95. I prefer them to be below 3.00 and below 2.00. They are better currently at 2.96 and 1.96 and this is due to decrease in debt.

The Total Return per year is shown below for years of 5 to 19 to the end of 2021 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.
2016	5	0.00%	-9.80%	-11.99%	2.19%
2011	10	0.00%	2.46%	-2.18%	4.64%
2006	15	0.00%	0.58%	-2.83%	3.42%
2001	20	0.00%	0.33%	-2.20%	2.53%
1996	25	0.00%	6.00%	3.12%	2.88%
1992	29	0.00%	7.33%	4.64%	2.69%

The Total Return per year is shown below for years of 5 to 19 to the end of 2021 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.
2016	5	0.00%	-8.75%	-10.96%	2.22%
2011	10	0.00%	-0.12%	-4.25%	4.12%
2006	15	0.00%	0.11%	-3.36%	3.47%
2001	20	0.00%	1.87%	-1.06%	2.93%
1996	25	0.00%	6.58%	3.43%	3.15%
1991	30	0.00%	8.89%	5.76%	3.13%

The 5 year low, median, and high median Price/Earnings per Share Ratios are negative and so useless. The corresponding 10 year ratios are also negative and useless. The corresponding historical ratios are 8.45, 11.25, and 13.62. The current P/E Ratio is 3.42 based on a stock price of $6.43 and EPS for 2022 of $1.88 (1.44 US$). This current P/E Ratio is very low and lower than the low of the historical median ratios. This stock price testing suggests that the stock price is relatively cheap. This testing is in CDN$.

I have Adjusted Earnings per Share (AEPS) data. The 5 year low, median, and high median P/AEPS are 8.53, 13.18 and 15.16. The corresponding 10 year ratios are 9.97, 13.52 and 15.93. The current P/AEPS Ratios are negative. However, the P/AEPS Ratio for 2023 is positive and 4.93 based on a stock price of $6.43 and AEPS estimate for 2023 of $1.30 ($1.00 US$). This ratio is below the low of the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in CDN$.

I get a Graham Price of $25.34. The 10 year low, median, and high median Price/Graham Price Ratios are 0.75, 0.94 and 1.08. The current P/GP Ratio is 0.25 based on a stock price of $6.43. The current P/GP Ratio is below the low the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in CDN$.

I get a 10 year median Price/Book Value per Share Ratio of 0.80. The current P/B Ratio is 0.42 based on a Book Value of 379M, Book Value per Share of $11.66 and a stock price of $6.43. The current ratio is 47% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in CDN$.

I get a 10 year median Price/Cash Flow per Share Ratio of 8.86. The current P/CF Ratio is 2.18 based on a stock price of $4.94, Cash Flow per Share estimate of $2.27 and Cash Flow of $73.7. The current ratio is 75% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$, but you will get a similar result in CDN$.

The dividend has been suspended, so I can do not dividend yield testing on this stock.

The 10 year median Price/Sales (Revenue) Ratio is 0.32. The current P/S Ratio is 0.09 based on Revenue estimate for 2022 of $1,800M, Revenue per Share of $55.42 and a stock price of $4.94. The current ratio is 72% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$, but you will get a similar result in CDN$.

Results of stock price testing is that the stock price is relatively cheap. This is the result from the P/S Ratio test. All the other tests confirm this.

Last year, I said that the results of stock price testing were that the stock price was probably cheap. The P/S Ratio test is saying that the stock price is cheap as is the P/GP Ratio test and the P/CF Ratio test. A P/E Ratio of 8.80 also points to a cheap price as any ratio below 10 does. The P/B Ratio test says it is reasonable, but book value has been going down the last 5 and 10 years because of earning losses.

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 $14.19 ($10.88 US$). This implies a total return of 121% with all the return from capital gains.

When I look at analysts’ recommendations last year, I found Hold (2) recommendations. The consensus would be a Hold. The 12 month target price is $16.37 ($13.00 US$). This implies a total return of 4.07% all capital gains based on a stock price of $12.44. What happened was a stock price decline to $6.43 and a capital loss of 48%. However, the stock price did climb to 27.95 in January 2022, before it fell. However, the stock price did climb to 27.95 in January 2022, before it fell. See the report here.

There are only old recommendations of Sell for this stock on Stock Chase. Stock Chase gives this stock 1 star out of 5. Amy Legate-Wolfe on Motley Fool says this stock fell in February 2022 because of an increase in net losses with no end in sight. Amy Legate-Wolfe on Motley Fool says this stock rose in January 2022 because of the sale, finally of their Bicycle segment. The stock rose strongly in October 2021 because they announced the sale of their bicycle segment. On a News Release this company reported on their fourth quarterly results. On Newswire this company reported on their first quarter of 2022 results. A Canadian Press report on Yahoo Finance talks about a plunge in this stock after another quarterly loss.

Dorel Industries Inc is a Canadian company that sells juvenile products and furniture. Its segments include Dorel Home and Dorel Juvenile. Its geographical segments include Canada, the United States, Europe, Latin America, Asia, and other countries. Its web site is here Dorel Industries Inc.

The last stock I wrote about was about was Artis REIT (TSX-AX.UN, OTC-ARESF) ... learn more. The next stock I will write about will be Pulse Seismic Inc (TSX-PSD, OTC-PLSDF) ... learn more on Friday, July 22, 2022 around 5 pm. Tomorrow on my other blog I will write about How Distribution Can Exceed Earnings.... learn more on Thursday, July 21, 2022 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.

Artis REIT

Sound bite for Twitter and StockTwits is: Dividend Growth REIT. The stock price is probably reasonable. The dividends are being raised again after being cut, so not a good dividend growth REIT. I worry about the Liquidity Ratio because it is so low. See my spreadsheet on Artis REIT.

Is it a good company at a reasonable price? The stock price is probably reasonable. It is not much of a dividend growth stock. Dividends have been flat and decreased as well as being increased. So, there is no real consistency. You will probably not lose money on this stock. See below what has happened over the past 10 years.

I do not own this stock of Artis REIT (TSX-AX.UN, OTC-ARESF). Early in 2013, this company was mentioned as a good REIT to own. A number of people I correspond with mentioned this REIT. However, my first view of it is not positive. It is also not a dividend growth stock.

When I was updating my spreadsheet, I noticed Revenue expected was $461M and it came in at $419.5M. The Adjusted Funds from Operations (AFFO) expected was $1.02, and it came in at $0.96. The Funds from Operations (FFO) $1.38 and it came in at $1.34. Basically, why EPS went up was because of “Fair value gain (loss) on investment properties”. For REITs the better measurement than EPS is the AFFO and FFO values.

If you had invested in this company in December 2011, $1007.28 you would have bought 72 shares at $13.99 per share. In December 2021, after 10 years you would have received $661.25 in dividends. The stock would be worth $859.68. Your total return would have been $1,520.93.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$13.99	$1,007.28	72	10	$661.25	$859.68	$1,520.93

The dividend yields are good with dividend growth restarting. The current dividend yield is good (5% and 6% ranges) at 5.30%. The 5 year median dividend yield is also good at 5.62%. The 10 year and historical median dividend yields are high (7% and above) at 7.14% and 7.15%. The dividends were flat between 2009 and 2017. The dividends were decreased by 50% in 2018. They were raised in 2021 by 10%. There has been no raise so far in 2022, but analysts do expect an increase in 2022 or 2023.

The Dividend Payout Ratios (DPR) are fine (with DPR from AFFO and FFO the best measure). The DPR for EPS for 2021 is 21% with 5 year coverage at 64%. The DPR for Adjusted Funds from Operations (AFFO) for 2021 is 61% with 5 year coverage at 59%. The DPR for Funds from Operations (FFO) for 2021 is 44% with 5 year coverage at 43%. The DPR for Cash Flow per Share (CFPS) for 2021 is 46% with 5 year coverage at 54%. The DPR for Free Cash Flow (FCF) for 2021 is 62% with 5 year coverage at 61%.

Most Debt Ratios are fine, but I worry about the Liquidity Ratio. The Long Term Debt/Market Cap Ratio for 2021 is 0.70 and is fine. The Debt Ratio is good at 2.16. The Leverage and Debt/Equity Ratios are good at 1.86 and 0.86. The Liquidity Ratio at 0.36 is awful. If you add in Cash Flow after dividends, you are only up to 0.46. If this is below 1.00, it means that current assets cannot cover current liabilities. Only if you add back in the debt payable and credit facilities do you get a good number (2.85). However, if debt and credit facilities cannot be rolled over, then the company could be in trouble. This can sometime happen in recessions.

The Total Return per year is shown below for years of 5 to 17 to the end of 2021. 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.
2016	5	-11.42%	4.99%	-1.23%	2.88%
2011	10	-5.88%	5.64%	-1.57%	2.15%
2006	15	-3.78%	4.83%	-2.07%	2.53%
2004	17	-1.47%	17.33%	3.98%	2.21%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 10.06, 13.19 and 16.33. The corresponding 10 year ratios are 10.23, 12.27 and 13.24. The corresponding historical ratios are 4.07, 4.46 and 4.85. The current P/E Ratio is 2.66 based on a stock price of $11.32 and EPS for the last 12 months of $4.26. This ratio is below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I also have Adjusted Funds from Operations (AFFO) data. The 5 year low, median, and high median P/AFFO are 9.62,11.67 and 13.40. The corresponding 10 year ratios are 10.15, 11.85 and 13.34. The current P/AFFO Ratio is 11.10 based on AFFO estimate for 2022 of $1.02 and a stock price of $11.32. The current ratio is between the low and median of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I also have Funds from Operations (FFO) data. The 5 year low, median, and high median P/FFO are 7.08,836 and 9.70. The corresponding 10 year ratios are 7.82, 9.23 and 10.25. The current P/FFO Ratio is 7.92 based on FFO estimate for 2022 of $1.43 and a stock price of $11.32. The current ratio is between the low and median of the 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 $42.21. The 10 year low, median, and high median Price/Graham Price Ratios are 0.55, 0.65 and 0.74. The current P/GP Ratio is 0.27 based on a stock price of $11.32. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.

I also do the Graham Price calculation using AFFO in the formula instead of EPS. Here I get a Graham Price of $20.65. The 10 year low, median, and high median Price/Graham Price Ratios are 054, 0.64 and 0.74. The current P/GP Ratio is 0.55 based on a stock price of $11.32. The current ratio is between the low and median ratios of the 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 0.83. The current P/B Ratio is 0.61 based on a Book Value of $2,296M, Book Value per Share of $18.59 and a stock price of $11.32. 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 8.43. The current P/CF Ratio is 8.53 based on last 12 month Cash Flow of $164M, Cash Flow per Share of $1.33 and a stock price of $11.32. The current ratio is 1% 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 7.15%. The current dividend yield is 5.30% based on dividends of $0.60 and a stock price of $11.32. The current dividend yield is 26% below the historical dividend yield. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 median dividend yield of 7.14%. The current dividend yield is 5.30% based on dividends of $0.60 and a stock price of $11.32. The current dividend yield is 26% below the 10 year dividend yield. This stock price testing suggests that the stock price is relatively expensive.

The 10 year median Price/Sales (Revenue) Ratio is 3.49. The current P/S Ratio is 3.48 based on a stock price of $11.32, Revenue estimate for 2022 of $402 and Revenue per Share of $3.25. The current ratio is 0.4% 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 based on the P/S Ratio test. The problem with the dividend yield test is the declining dividend. (However, declining dividends are never a good sign.) The P/AFFO test and P/FFO test are better tests than the P/E Test (because this is a REIT). These tests also show a reasonable stock price. Other tests are showing stock from cheap to reasonable.

When I look at analysts’ recommendations, I find Buy (1) and Hold (7). The consensus would be a Hold. The 12 month stock price consensus is $13.38. This implies a total return of 23.50% with 18.20% from capital gains and 5.30% from dividends.

Some, but not all analysts on Stock Chase like this stock. It is not on the Money Sense list. Stock chase gives this company 4 stars out of 5. Adam Othman on Motley Fool says it is an undervalued dividend stock. Adam Othman on Motley Fool says this stock is a bargain. He has been recommending this stock since at least July 2021. The company released their fourth quarterly 2021 results on Newswire. The company released on Newswire their first quarter of 2022 results.

Simply Wall Street on Yahoo Finance reviews this stock. They like the recent insider buying. Simply Wall Street has two risk warnings of debt is not well covered by operating cash flow and large one-off items impacting financial results

Artis Real Estate Investment Trust is an unincorporated closed-end REIT based in Canada. Artis REIT's portfolio comprises properties located in Central and Western Canada and select markets throughout the United States, including regions such as Alberta, British Columbia, Manitoba, Ontario, Saskatchewan, Arizona, Minnesota, Colorado, New York, and Wisconsin. The properties are divided into three categories: office, retail, and industrial. Its web site is here Artis REIT.

The last stock I wrote about was about was Obsidian Energy Ltd (TSX-OBE, OTC-OBELF) ... learn more. The next stock I will write about will be Dorel Industries Inc (TSX-DII.B, OTC-DIIBF) ... learn more on Wednesday, July 20, 2022 around 5 pm. Tomorrow on my other blog I will write about Life Insurance.... learn more on Tuesday, July 19, 2022 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.

Obsidian Energy Ltd

Sound bite for Twitter and StockTwits is: Resource Sector stock. The stock price is testing expensive, but it could be reasonable. I think that Liquidity is a major problem. Lots of shareholders have lost money on this stock. See my spreadsheet on Obsidian Energy Ltd.

Is it a good company at a reasonable price? The stock price could be relatively expensive or it could be relatively reasonable. I have to wonder about it being cheap. This is a resource stock and I generally do not buy resource stocks because their extreme volatility. I have around 1% of my portfolio in resource stocks and I have then so that I pay attention to resources because they are important to the Canadian economy.

I do not own this stock of Obsidian Energy Ltd (TSX-OBE, NYSE-OBE). I bought this stock as Maximum Energy Trust (MXT.UN) in 1998. In November 2001, there was a stock exchange and the stock became Ultimate Energy Fund. In June 2004 fund changed from Ultimate Energy Income Trust to Petrofund Energy. Petrofund Energy merged with Penn West in July 2006. The company changed its name from Penn West Petroleum Ltd. (TSX-PWT, NYSE-PWE) to Obsidian Energy Ltd (TSX-OBE, NYSE-OBE) in 2017.

When I was updating my spreadsheet, I noticed that this stock is back on the NYSE with the OBE symbol. This occurred at the beginning of 2022. Symbol for the US has gone from OTC-OBELF to NYSE-OBE.

It looks like there is lots of insider selling, but it is insider not keeping all their options. Over the past year, all the insiders I follow have increased the number of shares they hold. This includes the CEO, CFO, an officer, a director, and the Chairman.

If you had invested in this company in December 2011, $1,130.64 you would have bought 8 shares at $141.53 per share. In December 2021, after 10 years you would have received $154.56 in dividends. The stock would be worth $41.68. Your total return would have been $196.24.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$141.53	$1,130.64	8	10	$154.56	$41.68	$196.24

The dividends have been suspended since 2015, so there is no dividend yield or Dividend Payout Ratios.

It is not so much the company has problems with the amount of debt, the problem is with Liquidity. The Long Term Debt/Market Cap Ratio for 2021 is 0.93. Mainly due to the rise in the stock market, the ratio is down to a much better ratio currently at 0.52. The Debt Ratio is 2.15. The Leverage and Debt/Equity Ratios are 1.87 and 0.87.

The Liquidity Ratio is very low at 0.16. If you add in cash flow, it is still very low at 0.54. When under 1.00, it means that current assets cannot cover current liabilities. If you exclude the current portion of their long term debt, it is 2.05. However, the problem is that the company’s debt is short term and with short term debt, they can need money in economic hard times and find no one is willing to lend to them.

The Total Return per year is shown below for years of 5 to 26 to the end of 2021. 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.
2016	5	0.00%	-20.68%	-20.68%	0.00%
2011	10	0.00%	-25.97%	-28.11%	2.14%
2006	15	0.00%	-14.83%	-22.72%	7.89%
2001	20	0.00%	10.98%	-14.99%	25.97%
1996	25	0.00%	11.47%	-13.38%	24.85%
1995	26	0.00%	8.83%	-13.36%	22.19%

The 5 year low, median, and high median Price/Earnings per Share Ratios are negative and useless. The corresponding 10 year ratios are also negative. The corresponding historical ratios are 4.09, 7.24 and 8.63. The problem is a lot of years with earnings losses. You cannot really do a P/E Ratio test. However, the current P/E Ratio is very low at 2.21 based on a stock price of $8.70 and EPS estimate for 2022 of $3.93. Any P/E Ratio below 10 is considered a cheap stock.

I have Funds from Operations (FFO) Data. The 5 year low, median, and high median Price/Earnings per Share Ratios are 0.31, 1.24 and 2.20. The corresponding 10 year ratios are 1.89, 4.67 and 6.66. The current P/FFO Ratio is 2.59 based on a stock price of $8.70 and FFO for last 12 months of $3.36. The current ratio is between the low and median ratios of the 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 $29.41. The 10 year low, median, and high median Price/Graham Price Ratios are 1.38, 3.64 and 5.59. (But most of the past P/FP Ratios are just guesses). The current P/GP Ratio is 0.30 based on a stock price of $8.70. This ratio is below he low of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap. A P/GP Ratio below 1.00 is a cheap ratio.

I get a 10 year median Price/Book Value per Share Ratio of 0.35. The current P/B Ratio is 0.89 based on a stock price of $8.70, Book Value of $790M, and Book Value per Share of $9.78. The current P/B Ratio is 153% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

However, any P/B Ratio under 1.50 is considered cheap. A ratio of 0.89 is very low and is pointing to a cheap stock. Another problem is the decline in Book Value per Share, which is down 21% per year over the past 5 years.

I get a 10 year median Price/Cash Flow per Share Ratio of 4.76. The current P/CF Ratio is 1.35 based on Cash Flow per Share estimate for 2022 of $6.44, Cash Flow of $520M and a stock price of $8.70. The current ratio is 72% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. Analysts are also expecting the cash flow to go up some 162%. This is rather high increase. However, even the P/CF Ratio for 2021 at 2.12 is pointing to a cheap price.

There are currently no dividends, so I can do no dividend yield tests.

The 10 year median Price/Sales (Revenue) Ratio is 0.76. The current P/S Ratio is 1.10 based on Revenue estimate for 2022 of $637M, Revenue per Share of $7.89 and a stock price of $8.70. The current ratio is 46% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. However, any P/S Ratio below 1.00 is low and 1.10 is a good ratio.

Results of stock price testing is that the stock price is probably expensive, but it could also be reasonable. This is based on the P/S Ratio and P/B Ratio tests. I hesitate to say it is expensive because the ratios are low. The very low ratios are pointing to a cheap stock price. Like for P/S Ratio, a ratio of 1.10 is low even though the test results say the stock is expensive. It is interesting that the P/FFO test is showing the stock price as reasonable and below the median. This may be the best test.

Last year I said the results of stock price testing is that the stock price is probably cheap. I think that there is only two valid tests of the P/B Ratio and the P/S Ratio and both these say that the stock is current relatively cheap.

When I look at analysts’ recommendations, I find Buy (2), Hold (1), and Underperform (1). The consensus would be a Hold. The 12 month stock price is $15.50. This implies a total return of 78.16% with it all coming from capital gain based on a stock price of $8.70.

When I look at analysts’ recommendations last year, I found Hold (1), and Underperform (1). The consensus was an Underperform. The 12 months stock price consensus was $3.63. This implies a total loss of 13.98% all from a capital loss based on a current stock price of $4.22. What happened was a price increase to 8.70 and a total return of 106.16% all from capital gains.

The last two analysts on Stock Chase say Do Not Buy. They do not like current management. Stock Chase gives this stock 3 stars out of 5. Amy Legate-Wolfe on Motley Fool says this stock is now a growth stock. Christopher Liew on Motley Fool says this company will profit if oil prices rise to $150. The company put out a Press Release on their fourth quarterly results. The company put out a Press Release on their first quarter 2022 results.

Simply Wall Street has reviewed this stock on Yahoo Finance. Simply Wall Street lists 5 warnings signs on this company of earnings are forecast to decline by an average of 53.3% per year for the next 3 years; high level of non-cash earnings; has a high level of debt; significant insider selling over the past 3 months; and Shareholders have been diluted in the past year.

Obsidian Energy Ltd, is an intermediate-sized oil and gas producer with strategic assets in Alberta. It operates in a single reporting segment that is exploration, development and holding an interest in oil and natural gas properties and related production infrastructure in the Western Canada Sedimentary Basin. The company generates the majority of the revenue from the Crude oil sale. Its web site is here Obsidian Energy Ltd.

The last stock I wrote about was about was TMX Group Ltd (TSX-X, OTC-TMXXF) ... learn more. The next stock I will write about will be Artis REIT (TSX-AX.UN, OTC-ARESF) ... learn more on Monday, July 18, 2022 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.