Is it a good company at a reasonable price? The stock price seems cheap. This stock would be classified as risky. I have bought some, but with my fooling around money. You never know how small caps are going to turn out.
I own this stock of Titanium Transportation Group Inc (TSX-TTNM, OTC-TTNMF). I found this stock on a blog of Our Life Financial.
When I was updating my spreadsheet, I noticed when I looked for estimates, I found estimates for the next 3 years. This is unusual for a small cap stock. Generally, for small cap stocks I have a hard time finding any estimates. This is interesting.
Also, this company has moved from TSX Venture to the TSX and changed its symbols from TSX-TTR and OTC-TTTGF to TSX TTNM and OTC-TTNMF. There is also some insider buying. The CEO has bought some more shares. Previously the Chairman had no shares, but has recently bought some.
If you had invested in this company in December 2015, $1,001.00 you would have bought 385 shares at $2.60 per share. In December 2021, after 6 years you would have received $38.50 in dividends. The stock would be worth $1,174.25. Your total return would have been $1,212.75.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $2.60 | $1,001.00 | 385 | 6 | $38.50 | $1,174.25 | $1,212.75 |
The dividend yields are moderate with dividends have not grown since being introduced in 2020. The current dividend yield is moderate (2% to 4% ranges) at 3.17%. The median dividend yield over the past 2 years is low (below 2%) and 1.77%. Dividends were introduced in December 2020 and have not changed.
The Dividend Payout Ratios (DPR) are fine. The current DPR for EPS is 67%. The 5 year average is around 38%, but dividends have only been paid for 2 years. The DPR for Adjusted Earnings per Share is 39%. The 5 year average is 10%. The DPR for Cash Flow per Share is 15%. The DPR for Free Cash Flow (FCF) is 27% with 5 year coverage at 6% (but just two years of dividends).
Debt Ratios are fine and improving. The Long Term Debt/Market Cap for 2021 is 0.18. The Liquidity Ratio for 2021 is 1.04 and this is low. Even adding in Cash Flow after Dividends, it reaches only 1.24. However, at the end of the second quarter of 2022, the Liquidity Ratio is 1.36 and with Cash Flow after dividends is 1.65. The Debt Ratio for 2021 is 1.46. In the second quarter of 2022 it is 1.52. The Leverage and Debt/Equity Ratios for 2021 are 3.17 and 2.17. In 2022 they also come down to 2.93 and 1.93.
The Total Return per year is shown below for years of 5 to 7 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% | 15.26% | 14.50% | 0.76% |
| 2014 | 7 | 0.00% | 11.07% | 10.55% | 0.52% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 6.47, 10.56 and 14.65. The corresponding 7 year and historical ratios are 6.47, 10.56 and 14.65. The current P/E Ratio is 6.25 based on a stock price of $2.50 and EPS estimate for 2022 of $0.40. The current ratio is below the low ratio of the 7 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I get a Graham Price of $4.23 . The 10-year low, median, and high median Price/Graham Price Ratios are 0.84, 1.09 and 1.34. The current P/GP Ratio is 0.59 based on a stock price of $2.50. The current ratio is below the low the 7 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I get a 7-year median Price/Book Value per Share Ratio of 1.41. The current P/B Ratio is 1.26 based on a Book Value of $87.65M, Book Value per Share of $1.99 and a stock price of 2.50. The current ratio is 11% below the 7 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a 7-year median Price/Cash Flow per Share Ratio of 4.36. The current ratio is 3.94 based on Cash Flow for the last 12 months of $27.9M, Cash Flow per Share of $0.63 and a stock price of $2.50. The current ratio is 10% below the 7 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a 2 year and historical median dividend yield of 1.77%. The current dividend yield is 3.20% based on a stock price $2.50 and dividends of $0.08. The current yield is 81% above the 2 year dividend yield. This stock price testing suggests that the stock price is relatively cheap.
The 7-year median Price/Sales (Revenue) Ratio is 0.34. The current P/S Ratio is 0.22 based on a stock price of $2.50, Revenue estimate for 2022 of $501M and Revenue per Share of $11.38. The current ratio is 35% below the 7 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. The dividend yield testing says this and it is confirmed by the P/S Ratio test. A problem with the dividend yield test is that it covers only 2 years of data. The P/E Ratio test and P/GP Ratio test also say that the stock price is cheap. The P/B Ratio test and the P/CF Ratio test says it is reasonable and below the median.
When I look at analysts’ recommendations, I find Strong Buy (3) and Buy (2). The consensus would be a Strong Buy. The 12 month consensus stock price is $6.00. This implies a total return of 143.20% with 140.00% from capital gains and $3.20% from dividends based on a stock price of $2.50. The high 12 month stock price is $6.75 and the low is $4.75. Even the low stock price of $4.75 implies a total return of 93.20% with 90.00% from capital gains and 3.20% from dividends based on a stock price of $2.50.
One analyst on Stock Chase commented in August 2021 and said he was watching the stock. Stock Chase gives this sock 1 star out of 5. Adam Othman at Motley Fool in April 2021 thought this was an amazing stock for your TFSA. The company put out a Press Release on their fourth quarter of 2021. The company put out a Press Release on their second quarter of 2022 results.
Simply Wall Street has report on Yahoo Finance on this stock. Simply Wall Street has 4 warning signs for this stock of earnings are forecast to decline by an average of 17.6% per year for the next 3 years; has a high level of debt; unstable dividend track record; and does not have a meaningful market cap (CA$109M).
Titanium Transportation Group Inc is assets-based transportation and logistics firm that provides services like truckload, dedicated, cross-border trucking services, freight logistics, warehousing, and distribution. The group has a business presence in Canada and the United States. Its web site is here Titanium Transportation Group Inc.
The last stock I wrote about was about was High Liner Foods (TSX-HLF, OTC-HLNFF) ... learn more. The next stock I will write about will be SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF) ... learn more on Wednesday, September 7, 2022 around 5 pm. Today on my other blog I will write about Dividend Stocks September 2022 .... learn more on Tuesday, September 6, 2022 around 5 pm.
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