Is it a good company at a reasonable price? The stock price is certainly reasonable and is in a cheap range. This company has done well for its shareholders over the longer term. It has two types of shares, Class A with 30 votes per share and Class B with 1 vote per share. A lot of people do not like this sort of structure. It is also a stock that is not being following currently by any analyst as far as I can see.
I do not own this stock of Logistec Corp (TSX-LGT.B, OTC-LTKBF). I got this stock from Dividend Growth Investing and Retirement blogger’s all-star spreadsheet for March 2017.
When I was updating my spreadsheet, I noticed that they always separate out the earnings between their Class A shares and their Class B shares. I have always found this curious. I know of no other company that does this. It is rather a small cap company, but it does not seem to be followed my anyone. It has done well for its shareholders over the longer term.
If you had invested in this company in December 2011, for $1,000.00 you would have bought 100 shares at $10 per share. In December 2021, after 10 years you would have received $402.70 in dividends. The stock would be worth $4,400. Your total return would have been $4,802.70.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $10.00 | $1,000.00 | 100 | 10 | $402.70 | $4,400.00 | $4,802.70 |
The dividend yields are low with dividend growth low. The current dividend yield is low (below 2%) at 1.36%. The 5 year, 10 year and historical median dividend yields are also low at 0.97%, 0.91% and 1.87%. The dividend growth for the last 5 years is low (below 8%) at 4.76%. The last dividend increase was in 2022 and it was for 20%. Dividend growth has varied in the past. Over the past 25 years, the annual dividends have increased in 19 years.
The Dividend Payout Ratios (DPR) are good. The DPR for EPS for 2021 is 11% with 5 year coverage at 17%. The DPR for Cash Flow per Share (CFPS) for 2021 is 9% with 5 year coverage at 11%. The DPR for Free Cash Flow (FCF) for 2021 is 15% with 5 year coverage at 11%.
Debt Ratios are fine. The Long Term Debt/Market Cap is 0.33 for 2021. It rises to 0.47 in the second quarter of 2022 due to increase in debt and fall in Stock price. The Liquidity Ratio for 2021 is 1.45. The Debt Ratio for 2021 is 1.54. The Leverage and Debt/Equity Ratios for 2021 is 2.86 and 1.85 respectively.
The Total Return per year is shown below for years of 5 to 25 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 | 4.76% | 5.63% | 4.62% | 1.01% |
| 2011 | 10 | 8.23% | 18.24% | 15.97% | 2.27% |
| 2006 | 15 | 7.45% | 12.58% | 10.38% | 2.19% |
| 2001 | 20 | 6.37% | 16.17% | 13.29% | 2.88% |
| 1996 | 25 | 5.68% | 14.33% | 10.66% | 3.68% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 14.81, 17.77 and 20.72. The corresponding 10 year ratios are 12.00, 15.05 and 18.11. The corresponding historical ratios are 9.54, 11.13 and 12.86. The current P/E Ratio is 10.44 based on a stock price of $38.00 and EPS for the last 12 months of $3.64. The ratio is below the low of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I get a Graham Price of $44.66. The 10-year low, median, and high median Price/Graham Price Ratios are 1.07, 1.32 and 1.47. The current P/GP Ratio is 0.85 based on a stock price of $38.00. This stock price testing suggests that the stock price is relatively cheap.
I get a 10-year median Price/Book Value per Share Ratio of 2.03. The current P/B Ratio is 1.56 based on a stock price of $38.00, Book Value of $318M and Book Value per Share of $24.35. The current P/B Ratio is 23% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I get a 10-year median Price/Cash Flow per Share Ratio of 9.72. The current P/CF Ratio is 9.08 based on Cash Flow for the last 12 months of $54.8M, Cash Flow per Share of $4.20 and a stock price of $38.00. The current ratio is 6.6% 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 1.87%. The current dividend yield is 1.36% based on a stock price of $38.00 and Dividends of $0.4536. The current dividend yield is 27% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive.
I get a 10 year median dividend yield of 0.91%. The current dividend yield is 1.36% based on a stock price of $38.00 and Dividends of $0.4536. The current dividend yield is 49% 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 0.94. The current P/S Ratio is 0.60 based on last 12 months Revenue of $827M, Revenue per Share of $63.30 and a stock price of $38.00. The current ratio is 36% 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. The 10 year dividend test says the stock price is cheap as does the P/S Ratio test. The historical dividend test says expensive and the dividend was more moderate (2% to 4% ranges) before 2010. After that the yield fell to low (below 2%). Most of the other tests say that the stock price is cheap.
When I look for analysts’ recommendations, I find none. I cannot find any 12 month consensus stock price and no estimates.
The analysts reporting in 2022Stock Chase say this is their top pick and it is underpriced. Stock Chase gives this stock 1 star out of 5. It is not on the Money Sense list. Christopher Liew in November 2021 on Motley Fool thought the stock was undervalued. The company in a Press Release reports on their four quarter of 2021 results. The company reports on their Second Quarter of 2022 results in a Press Release. Simply Wall Street on Yahoo Finance reviews this stock. They have one warning of has a high level of debt.
Logistec Corp provides specialized cargo handling and other services to a wide variety of marine, industrial and municipal customers. The company is organized and operate in two industry segments: Marine services, and Environmental services. The Marine Services Segment which is the key revenue-generating segment provides cargo handling and other services to marine and industrial customers. It has a business presence in Canada and the US. Its web site is here Logistec Corp.
The last stock I wrote about was about was Teck Resources Ltd (TSX-TECK.B, NYSE-TECK) ... learn more. The next stock I will write about will be Trigon Metals Inc (TSX-TM, OTC-PNTZF) ... learn more on Friday, October 7, 2022 around 5 pm. Tomorrow on my other blog I will write about Something to Buy October 2022 .... learn more on Thursday, October 06, 2022 around 5 pm.
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