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|
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.|
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.
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