Boralex Inc

Sound bite for Twitter and StockTwits is: Dividend Paying Utility. Results of stock price testing is that the stock price could be reasonable. Debt Ratios need improving. The Dividend Payout Ratios (DPR) are fine. The current dividend yield is low with dividend growth non-existent. See my spreadsheet on Boralex Inc.

Is it a good company at a reasonable price? It is a negative that the dividends are flat. Also, the total return has been quite inconsistent in the past. They have a lot of debt, but a lot of utilities have lots of debt. I follow 6 insiders including the CEO, CFO and Chairman and all 6 have bought shares in the last year, so this is a positive. Another positive is that the stock price is probably reasonable.

I do not own this stock of Boralex Inc (TSX-BLX, OTC-BRLXF). This stock is on the Money Sense Dividend list and the Maple Money Dividend List. This is a new stock that I am following.

When I was updating my spreadsheet, I noticed that the second quarterly report, for at least some items only show their values for 3 months to June and 12 months to June. I expect all values to be shown 3 months to June and 6 months to June. Are they trying to make things difficult? For example, this is for Discretionary Cash Flow (or AFFO).

In the chart below, you can see that Revenue is growing and this is a good sign. The stock price is not growing faster than the Revenue. This points to a reasonable price.

Year	Item	Tot. Growth	Per Year
5	Revenue Growth	72.94%	11.58%
5	AEPS Growth	3.45%	0.68%
5	Net Income Growth	36.36%	6.40%
5	Cash Flow Growth	253.79%	28.75%
5	Dividend Growth	10.00%	1.92%
5	Stock Price Growth	70.30%	11.24%
10	Revenue Growth	350.84%	16.25%
10	AEPS Growth	314.29%	15.27%
10	Net Income Growth	686.28%	22.90%
10	Cash Flow Growth	982.37%	26.89%
8	Dividend Growth	26.92%	2.41%
10	Stock Price Growth	336.42%	15.88%

If you had invested in this company in December 2012, for $1,008.70 you would have bought 110 shares at $9.17 per share. In December 2022, after 10 years you would have received $600.71 in dividends. The stock would be worth $4,402.20. Your total return would have been $5,002.91. This is a total return would be 18.85% per year with 15.88% from capital gains and 2.97% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$9.17	$1,008.70	110	10	$600.71	$4,402.20	$5,002.91

If you had invested in this company in December 1991, for $1,001.30 you would have bought 589 shares at $1.70 per share. In December 2022, after 30 years you would have received $3,001.54 in dividends. The stock would be worth $23,571.78. Your total return would have been $26,573.32. This is a total return would be 12.20% per year with 11.10% from capital gains and 2.97% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$1.70	$1,001.30	589	30	$3,001.54	$23,571.78	$26,573.32

The current dividend yield is low with dividend growth non-existent. The current dividend yield is low (below 2%) at 1.98%. The 5, 10 and historical median dividend yields are 2.16%, 3.08% and 0.00%. The dividends have increased by 1.9% per year over the past 5 years, but there has been no dividend increases since 2019.

The Dividend Payout Ratios (DPR) are fine. The DPR for 2022 for Earnings per Share (EPS) is 220% with 5 year coverage at 2516%. There have been too many years of earnings losses. The DPR for 2022 for Adjusted Earnings per Share (AEPS) is 40% with 5 year coverage at 55%. The DPR for 2022 for Cash Flow per Share (CFPS) is 14% with 5 year coverage at 16%. The DPR for 2022 for Free Cash Flow (FCF) is 54% with 5 year coverage at 49%. The AEPS is a better standard for judging DPR than EPS.

Item	Cur	5 Years
EPS	220.00%	2516.15%
AEPS	40.49%	54.76%
CFPS	13.62%	15.88%
FCF	53.83%	48.60%

Debt Ratios need improving. The Long Term Debt/Market Cap Ratio is high at 0.70. Utilities tend to have lots of debt. The Liquidity Ratio is low at 0.78, but better at 1.40 when you add in Cash Flow after dividends but I prefer this to be 1.50 or better. The Debt Ratio for 2022 is low at 1.45 and I also prefer this to be at 1.50. Leverage and Debt/Equity Ratios are too high at 3.89 and 2.68 and I prefer these to be below 3.00 and 2.00, but they have been much higher in the past and are improving.

Type	Ratio '22	Ratio Curr
Lg Term R	0.70	0.85
Intang/GW	0.31	0.37
Liquidity	0.78	0.99
Liq. + CF	1.40	1.49
Debt Ratio	1.45	1.46
Leverage	3.89	3.95
D/E Ratio	2.68	2.71

The Total Return per year is shown below for years of 5 to 32 to the end of 2022. 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. Note that this company paid a couple of odd dividends, then started regular dividend payments in 2014.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2017	5	1.92%	13.51%	11.24%	2.28%
2012	10	3.02%	18.85%	15.88%	2.97%
2007	15	0.00%	6.93%	5.77%	1.16%
2002	20	0.00%	13.44%	12.20%	1.17%
1997	25	0.00%	9.31%	8.51%	0.78%
1992	30	4.32%	12.20%	11.10%	1.09%
1990	32		18.65%	16.52%	2.13%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 24.25, 55.46 and 86.67. The corresponding 10 year ratios are negative so unusable. The corresponding historical ratios are 7.70, 10.84 and 13.98. The current P/E Ratio is 31.21 based on a stock price of $33.39 and EPS estimate for 2023 of $1.07. The current ratio is rather high. Generally, speaking a P/E Ratio above 20 is considered high.

I have Adjusted Funds from Operations (AFFO) data. The 5-year low, median, and high median Price/ Adjusted Funds from Operations Ratios are 18.56, 24.98 and 32.18. The corresponding 10 year ratios are 15.76, 21.45 and 27.88. The current P/AFFO Ratio is 20.24 based on a stock price of $33.39. The current ratio is between the low and median ratios of the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $24.72 . The 10-year low, median, and high median Price/Graham Price Ratios are 1.13, 1.56 and 1.81. The current P/GP Ratio is 1.35 based on a stock price of $33.39. 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 2.36. The current P/B Ratio is 2.03 based on a Book Value of $1,692M, Book Value per Share of $16.46 and a stock price of 33.39. The current ratio is 14% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I also have a Book Value per Share estimate of $16.60. With a stock price of $33.39, the Book Value would be $1,706M and the P/B Ratio 2.01. This 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 8.61. The current P/CF Ratio is 8.50 based on Cash Flow per Share estimate for 2023 of $3.93 and a stock price of $33.39. The current ratio is 1.3% 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 0% because yearly payment of dividends did not start until 2014. We can do not testing with the historical median dividend yield.

I get a 10 year median dividend yield of 2.96%. The current dividend yield is 1.98% based on dividends of $0.66 and a stock price of $33.39. The current dividend yield is 33% below the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively expensive. A problem is that the dividends have been flat since 2019.

The 10-year median Price/Sales (Revenue) Ratio is 3.51. The current P/S Ratio is 3.74 based on Revenue estimate for 2023 of $926M, Revenue per Share of $9.01 and a stock price of $33.39. The current ratio is 6% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and above the median.

Results of stock price testing is that the stock price could be reasonable. The P/S Ratio test shows this. The problem with the dividend tests is that they have been flat for a while. Dividends are important and keeping them flat could imply that the lack of confidence of the management of this company in the future. Most of the other testing is showing the stock price as reasonable and below the median.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (10) and Hold (3). The consensus would be a Buy. The 12 month stock price consensus is 44.29. This implies a total return of 34.62% with 32.64% from capital gains and 1.98% from dividends.

All the analysts on Stock Chase in 2023 think this stock is a buy. Stock Chase gives this stock 4 stars out of 5. It is on the Money Sense and Maple Money dividend lists, but not on the Aristocrat list. Ambrose O'Callaghan on Motley Fool thinks this is a cheap growth stock. Christopher Liew on Motley Fool thinks renewable energy stocks are the future. The company put out a press release on Market Screener on its fourth quarter of 2022 results. The company put out a press release on Global Newswire.

Simply Wall Street via Yahoo Finance put out a report about this company. They find its ROE low. Simply Wall Street gives this stock 2 and one half stars out of 5. They give 3 warnings of interest payments are not well covered by earnings; large one-off items impacting financial results; and profit margins (3.4%) are lower than last year (7.8%). By the way, the reason for AEPS is because of large one-off items.

Boralex is a power producer whose core business is dedicated to the development and operation of renewable energy power stations in Canada, France, the United States, and the United Kingdom. Boralex owns power generation assets across four technologies: wind, solar, hydroelectric, and thermal. Substantially all Boralex's operating assets are subject to indexed, fixed-price energy sales contracts. Its web site is here Boralex Inc.

The last stock I wrote about was about was Capital Power Corp (TSX-CPX, OTC-CPRHF) ... learn more. The next stock I will write about will be High Liner Foods (TSX-HLF, OTC-HLNFF) ... learn more on Friday, September 1, 2023 around 5 pm. Tomorrow on my other blog I will write about Virtue Investing .... learn more on Thursday, August 31, 2023 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 site for an index to these blog entries and for stocks followed. 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Capital Power Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Utility. Results of stock price testing is that the stock price is probably reasonable. Debt Ratios are not what I like to see, but utilities do have lots of debt. The Dividend Payout Ratios (DPR) are probably fine based on AFFO and CFPS. The current dividend yield is good with dividend growth low. See my spreadsheet on Capital Power Corp.

Is it a good company at a reasonable price? What I do not like is the debt level. It is hard to know the cause of insider selling, but Net Insider Selling is at 0.04%, so not very high. Positives are that Revenue and Cash Flow is growing and shareholders have mainly done well with this stock. At the present time, the stock price would seem to be reasonable.

I do not own this stock of Capital Power Corp (TSX-CPX, OTC-CPRHF). Capital power Corp is in John Heinzl's yield Hog model portfolio. In Money Sense annual list of the 100 best dividend stocks of 2021, this stock was rated an A.

When I was updating my spreadsheet, I noticed that the CFO, an officer I was following, and the Chairman all have decreased their shareholdings over the past year. They have a new CEO, so I have no information on him.

Growth is mainly good. The problem with Net Income is that it has been quite volatile, rather than increasing or declining. Other items have also been volatile, but they are growing as shown in the chart below.

Year	Item	Tot. Growth	Per Year
5	Revenue Growth	159.27%	20.99%
5	AEPS Growth	253.40%	28.72%
5	Net Income Growth	-4.17%	-0.85%
5	Cash Flow Growth	151.34%	20.24%
5	Dividend Growth	37.62%	6.59%
5	Stock Price Growth	89.18%	13.60%
10	Revenue Growth	110.07%	7.71%
10	AEPS Growth	182.17%	10.93%
10	Net Income Growth	122.58%	8.33%
10	Cash Flow Growth	286.36%	14.47%
10	Dividend Growth	76.39%	5.84%
10	Stock Price Growth	103.83%	7.38%

If you had invested in this company in December 2012, for $1,000.12 you would have bought 44 shares at $22.73 per share. In December 2022, after 10 years you would have received $745.80 in dividends. The stock would be worth $2,038.52. Your total return would have been $2,784.32. This is a total return would be 12.72% per year with 7.38% from capital gains and 5.34% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$22.73	$1,000.12	44	10	$745.80	$2,038.52	$2,784.32

The current dividend yield is good with dividend growth low. The current dividend yield is good (5% to 6% ranges) at 5.95%. The 5, 10 and historical dividend yields are also good at 6.03%, 6.27% and 5.73%. The dividend growth is low (less than 8% per year) at 6.59% per year over the past 5 years. The last dividend increase occurred in 2023 and it was for 6%.

The Dividend Payout Ratios (DPR) are probably fine based on AFFO and CFPS. The DPR for 2022 for Earnings per Share (EPS) is 265% with 5 year coverage at 198%. The DPR for 2022 for Adjusted Earnings per Share (AEPS) is 61.06% with 5 year coverage at 124%. This DPR is coming down and is expect to be around 44% in 2023, but then analysts expect it to rise again in 2024 to 74%. The DPR for 2022 for Adjusted Funds from Operations (AFFO) is 31% with 5 year coverage at 38%. The DPR for 2022 for Cash Flow per Share (CFPS) is 30% with 5 year coverage at 29%. The DPR for 2022 for Free Cash Flow (FCF) is 87% with 5 year coverage at 115%.

Obviously, the DPR for EPS is too high, but the one for AEPS is more important. It is better but it is not good if it will be going up again. The DPR for AFFO and CFPS are important, and they are considered good is they are 40% or lower, which they both are. The problem with FCF is that every site has a different value.

Item	Cur	5 Years
EPS	264.58%	198.09%
AEPS	61.06%	123.97%
AFFO	30.53%	37.66%
CFPS	30.00%	28.59%
FCF	86.56%	115.46%

Debt Ratios are not what I like to see, but utilities do have lots of debt. The Long Term Debt/Market Cap Ratio for 2022 is 0.78. It is high and some analysts think that it should be at 0.50 or lower. The Liquidity Ratio for 2022 is low at 0.76 and even with Cash Flow after dividends it is still low at 1.06. I prefer it to be 1.50 or higher for safety. The Debt Ratio for 2022 is 1.32 and this is also low and I prefer it to be 1.50 or higher. The Leverage and Debt/Equity Ratios for 2022 are high at 5.96 and 4.51. They improve currently to 4.69 and 3.32, but these are still too high. I prefer them to be below 3.00 and 2.00.

Type	Year End	Ratio Curr
Lg Term R	0.78	0.83
Intang/GW	0.15	0.16
Liquidity	0.76	0.79
Liq. + CF	1.06	1.22
Debt Ratio	1.32	1.41
Leverage	5.96	4.69
D/E Ratio	4.51	3.32

The Total Return per year is shown below for years of 5 to 13 to the end of 2022. 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.
2017	5	6.59%	19.88%	13.60%	6.28%
2012	10	5.84%	12.72%	7.38%	5.34%
2009	13	4.46%	11.28%	6.13%	5.15%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 36.69, 42.71 and 50.35. The corresponding 10 year ratios are 24.28, 34.32 and 43.55. The corresponding historical ratios are 23.42, 28.95 and 34.47. The current P/E Ratio is 7.58 based on a stock price of $41.32 and EPS estimate for 2023 of $5.45. This ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap. Analysts do expect EPS is drop and P/E Ratio to rise to 13.68 in 2024 and 19.04 in 2025. But these are still below the 10 year P/E Ratios.

I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 17.13, 22.95 and 26.18. The corresponding 10 year ratios are 16.92, 21.40 and 24.08. The current P/AEPS Ratio is 7.72 based on a stock price of $41.32 and AEPS estimate for 2023 of $5.35. Analysts also expect the AEPS to drop and P/AEPS ratios to go up to 12.48 in 2024 and 15.95 in 2025. But these are still below the 10 year P/AEPS Ratios.

I also have Adjusted Funds from Operations (AFFO) data. The 5-year low, median, and high median Price/Adjusted Funds from Operations Ratios are 5.16, 6.13 and 7.70. The corresponding 10 year ratios are 5.06, 6.05 and 7.23. The current P/AFFO Ratio is 5.72 based on a stock price of $41.32 and AFFO estimate for 2023 of $7.23. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $45.66 . The 10-year low, median, and high median Price/Graham Price Ratios are 1.00, 1.19 and 1.34. The current P/GP Ratio is 0.91 based on a stock price of $41.32. 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 get a 10-year median Price/Book Value per Share Ratio of 1.17. The current P/B Ratio is 2.39 based on a stock price of $41.32, Book Value of $2,024M and Book Value per Share of $17.32. The current ratio is 104% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I also have a Book Value per Share estimate for 2023 of $22.50. Because this analysis calculated the Book Value differently, I am using a 10-year median Price/Book Value per Share Ratio of 0.86. A Book Value per Share of $22.50 implies a Book Value of $2,630M, and a P/B Ratio of 1.84 based on a stock price of $41.32. The current ratio of 1.84 is 113% 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 5.24. The current P/CF Ratio is 4.79 based on Cash Flow per Share estimate for 2023 of $8.63, Cash Flow of $1,009M and a stock price of $41.32. The current ratio is 8.6% 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 5.73%. The current dividend yield is 5.95% based on a dividend of $2.355 and a stock price of $41.32. The current dividend yield is 3.9% 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 6.27%. The current dividend yield is 5.95% based on a dividend of $2.355 and a stock price of $41.32. The current dividend yield is 5% 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 1.66. The current P/S Ratio is 1.46 based on Revenue estimate for 2023 of $3,299M, Revenue per Share of $28.22 and a stock price of $41.32.

Results of stock price testing is that the stock price is probably reasonable. The dividend yield tests are saying this as it the P/S Ratio testing. Other tests vary from cheap to reasonable to expensive.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (5), Hold (7). The consensus would be a Buy. The 12 month stock price is $57.00. This implies a total return of 43.90% with 37.95% from capital gains and 5.95% from dividends.

Analysts on Stock Chase mostly like this stock. One talks about recent cost overruns. Another mentions that he thinks the dividend is safe. Stock Chase gives this stock 4 stars out of 5. It has been on the money sense list, but not the recent one. It is on the Aristocrats list. Sneha Nahata on Motley Fool likes this stock because it produces clean energy. Ambrose O'Callaghan on Motley Fool likes this stock because he thinks it is a buy. The company put out a press release on Global Newswire about their results for 2022. The company put out a Press Release on their results for the second quarter of 2023.

Simply Wall Street on Yahoo Finance reviews this stock. They put out 3 warnings of dividend of 6.17% is not well covered by earnings or cash flows; interest payments are not well covered by earnings; and earnings are forecast to decline by an average of 13.3% per year for the next 3 years. Simply Wall Street gives this stock 3 stars out of 5.

Capital Power Corp is a North American power producer whose principal activities are developing, acquiring, and operating power plants. Through its subsidiary, Capital Power owns and operates a portfolio of natural gas, coal, wind, solar, and solid fuel energy generating facilities. These are located throughout Western and Central Canada and the U.S. Its web site is here Capital Power Corp.

The last stock I wrote about was about was ATCO Ltd (TSX-ACO.X, OTC-ACLLF) ... learn more. The next stock I will write about will be Boralex Inc (TSX-BLX, OTC- BRLXF) ... learn more on Wednesday, August 30, 2023 around 5 pm. Tomorrow on my other blog I will write about Growth Investing.... learn more on Tuesday, August 29, 2023 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 site for an index to these blog entries and for stocks followed. 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

ATCO Ltd

Sound bite for Twitter and StockTwits is: Dividend Growth Utility. Results of stock price testing is that the stock price is probably cheap. Debt Ratios are fine. The Dividend Payout Ratios (DPR) are fine. The current dividend yield is good with dividend growth low. See my spreadsheet on ATCO Ltd.

Is it a good company at a reasonable price? A negative is that they have not provided a good total return for shareholders over the past 15 years to the end of 2022. Share price has gone down last year and is down by 11% year to date. The dividend increases have been slowing with the last two increases at 3% and the increases for the past 5 years at 7% per year. The positives are the high yield and the fact that insiders are buying. I suppose you could buy for passive income. The stock price is currently cheap.

I do not own this stock of ATCO Ltd (TSX-ACO.X, OTC-ACLLF). I started to look at this stock in 2009 because it was a dividend paying stock that was on everyone’s list. At that time this stock was on the Dividend Achievers list, the Dividend Aristocrats list and was on Mike Higgs’ list. ATCO (TSX-ACO-X) owns 52.3% (2021) Canadian Utilities (TSX-CU), so you would not buy both these stocks.

When I was updating my spreadsheet, I noticed that estimates for 2023 and 2024 have gone up since last year. For example, the estimates last year for Revenue for 2023 and 2024 were $4858M and $4858M and now the estimates for 2023 and 2024 are $5,062 and $5,207 for 2023 and 2024. The estimates last year for AEPS for 2023 and 2024 were $3.43 and $3.60 and now the estimates for AEPS for 2023 and 2024 are $3.60 and $3.63. Last year the estimate for EPS for 2023 and 2024 were $3.44 and $3.60 for EPS and now the estimates for EPE for 2023 and 2024 are $3.57 and $3.60.

I noticed that there is insider buying. I follow 5 insiders, the CEO, CFO, an officer, Chairman and a Director. Over the past year, all have increased the shares that they own.

The current dividend yield is good with dividend growth low. The current dividend yield is good (5% to 6% ranges) at 5.05%. The 5, 10 and historical dividend yields are moderate (2% to 4% ranges) at 4.17%, 3.18% and 2.16%. This stock had dividend yields in the 1% to 2% ranges until 2018 when they started to go higher. The stock price has not gone anywhere lately, but dividends have continued to increase, but at a lower level. The dividends have been increasing at a low rate (less than 8% per year) at 7.1% per year over the past 5 years. The last dividend increase was in 2023 and it was for 3%.

The Dividend Payout Ratios (DPR) are fine. The DPR for 2022 for Earnings per Share (EPS) is 57%. The DPR for Adjusted Earnings per Share (AEPS) is 50%. The DPR for 2022 for Cash Flow per Share (CFPS) is 10%. The DPR for 2022 for Free Cash Flow (FCF) is 25%.

Item	Cur	5 Years
EPS	57.00%	57.01%
AEPS	49.89%	51.99%
CFPS	9.91%	10.23%
FCF	25.22%	43.05%

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2022 is high at 2.07 which means it is twice what the stock is worth according to the market. However, if you compare the Long Term Debt to corresponding Assets on the balance sheet, the ratio is 0.51 and is fine. The Liquidity Ratio for 2022 is good at 1.55. The Debt Ratio is good at 1.53. The Leverage and Debt/Equity Ratios for 2022 are fine at 2.89 and 1.53.

Type	Year End	Ratio Curr
Lg Term A	0.51	0.52
Lg Term R	2.07	2.47
Intang/GW	0.20	0.28
Liquidity	1.55	1.59
Liq. + CF	2.98	3.11
Debt Ratio	1.53	1.52
Leverage	2.89	2.92
D/E Ratio	1.53	1.52

The Total Return per year is shown below for years of 5 to 34 to the end of 2022. 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.
2017	5	7.11%	2.67%	-1.19%	3.86%
2012	10	10.92%	3.68%	0.49%	3.19%
2007	15	10.04%	5.84%	2.90%	2.94%
2002	20	9.70%	10.75%	7.10%	3.65%
1997	25	10.71%	10.01%	6.76%	3.25%
1992	30	12.10%	13.07%	9.16%	3.91%
1988	34	11.20%	13.41%	9.54%	3.87%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 12.40, 14.01 and 15.73. The corresponding 10 year ratios are 12.35, 14.07 and 16.21. The corresponding historical ratios are 9.04, 10.59 and 12.31. The current P/E Ratio is 10.54 based on a Stock Pric of $37.64 and EPS estimate for 2023 of $3.57. 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 have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 10.85, 12.96 and 14.55. The corresponding 10 year ratios are 11.61, 13.41 and 15.89. The current P/AEPS Ratio is 10.48 based on a stock price of $37.64 and AEPS estimate for 2023 of $3.59. 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 get a Graham Price of $56.11. The 10-year low, median, and high median Price/Graham Price Ratios are 0.75, 0.89 and 1.08. The current P/GP Ratio is 0.67 based on a stock price of $37.64. 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 get a 10-year median Price/Book Value per Share Ratio of 1.32. The current P/B Ratio is 0.97 based on a Book Value of $4,469M, Book Value per Share of $38.97 and a stock price of $37.64. The current P/B Ratio is 27% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I also have a Book Value per Share estimate for 2023 of $39.80. This implies a P/B Ratio of 0.95 with a Stock Price of $37.64, and Book Value of $4,534M. The current P/B Ratio is 28% 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 2.76. The current P/CF Ratio is 2.28 based on Cash Flow per Share estimate for 2023 of $16.50, Cash Flow of $1,880M and a stock price of $37.64. 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 an historical median dividend yield of 2.16%. The current dividend yield is 5.05% based on a dividend of $1.9024 and a stock price of $37.64. The current dividend yield is 134% 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 3.18%. The current dividend yield is 5.05% based on a dividend of $1.9024 and a stock price of $37.64. The current dividend yield is 59% above the 10 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 1.17. The current P/S Ratio is 0.85 based on a stock price of $37.64, Revenue estimate for 2023 of $4,968M and Revenue per Share of $44.44. The current ratio is 28% 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 dividend yield tests say this and it is confirmed by the P/S Ratio test. Most of my other testing on the stock price is returning a current cheap stock price.

When I look at analysts’ recommendations, I find Strong Buy (2), Buy (3) and Hold (3). The consensus would be a Buy. The 12 month stock price is $49.00. This implies a total return of 35.23% with 30.18% from capital gains and 5.05% from dividends.

There are two analysts’ comments onStock Chase for 2023 and both are a buy. Stock Chase gives this stock 4 stars out of 5. It is still on the dividend lists of Money Sense, Maple Money, and Aristocrat. Christopher Liew on Motley Fool thinks this is a defensive stock holding. Kay Ng on Motley Fool thinks this is a good aristocrat stocks to hold. The company put out a Press Release on their 2022 results. The company put out a Press Release on their second quarter of 2023 results.

Simply Wall Street via Yahoo Finance looked at recent insider buying at this company. They gave out 1 warnings of debt is not well covered by operating cash flow. Simply Wall Street gives this stock 4 stars out of 5.

Atco Ltd is a Canadian holding company that offers gas, electric, and infrastructure solutions. Atco's primary segments include Structures and Logistics; Utilities; Energy Infrastructure; Neltume Ports and Corporate and Other. Geographically, it derives most of its revenue from Canada. Its web site is here ATCO Ltd.

The last stock I wrote about was about was Exchange Income Corp (TSX-EIF, OTC-EIFZF) ... learn more. The next stock I will write about will be Capital Power Corp (TSX-CPX, OTC-CPRHF) ... learn more on Monday, August 28, 2023 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 site for an index to these blog entries and for stocks followed. 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Exchange Income Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. Results of stock price testing is that the stock price is probably reasonable. Some Debt Ratios need improving. The Dividend Payout Ratios (DPR) are fine. The current dividend yield is good with dividend growth low. See my spreadsheet on Exchange Income Corp.

Is it a good company at a reasonable price? The company is growing and it has been giving shareholders a good return. The risk level is medium, but I see a problem with some Debt Ratios of Leverage Ratio and Debt/Equity Ratio. A plus is that the Liquidity Ratio is good. It is still growing its dividend when a lot of companies that had to go from an Income Trust to a Corporation cannot. The stock price would seem to be reasonable. The P/S Ratio tests says it is cheap.

I do not own this stock of Exchange Income Corp (TSX-EIF, OTC-EIFZF). One of my blogger readers suggested this stock as one to review. There was an interesting article about this stock in the G&M in May 2013. This article suggested that the company had a hefty yield with an acquisition tailwind. This article is now behind a paywall.

When I was updating my spreadsheet, I noticed they have had two good years in 2021 and 2022. Revenue went up by 23% in 2021 and 46% in 2022. Earnings per Share (EPS) went up 131% in 2022 and 39% in 2023. Another sign that it is doing well is that more analysts are following this stock.

The chart below shows growth for the past 5 and 10 years.

Year	Item	Tot. Growth	Per Year
5	Revenue Growth	103.30%	15.25%
5	AEPS Growth	26.72%	4.85%
5	FCF per Share Growth	46.80%	7.98%
5	Net Income Growth	51.98%	8.73%
5	Cash Flow Growth	168.73%	21.86%
5	Dividend Growth	13.81%	2.62%
5	Stock Price Growth	47.67%	8.11%
10	Revenue Growth	157.24%	9.91%
10	AEPS Growth	150.40%	9.61%
10	FCF per Share Growth	89.96%	6.63%
10	Net Income Growth	332.60%	15.77%
10	Cash Flow Growth	1700.15%	33.52%
10	Dividend Growth	47.08%	3.93%
10	Stock Price Growth	104.15%	7.40%

If you had invested in this company in December 2012, for $1,005.42 you would have bought 39 shares at $25.78 per share. In December 2022, after 10 years you would have received $802.72 in dividends. The stock would be worth $2,052.57. Your total return would have been $2,855.29. This is a total return would be 13.24% per year with 7.40% from capital gains and 5.84% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$25.78	$1,005.42	39	10	$802.72	$2,052.57	$2,855.29

The current dividend yield is good with dividend growth low. The current dividend yield is good (5% to 6% ranges) at 5.33%. The 5 and 10 year median dividend yields are also good at 5.97%, and 6.59%. This historical median dividend yield is high (7% and above) at 7.42%. Note that this company used to be an income trust and income trust could afford to pay much higher dividends than corporations. The dividend growth is low (below 8%) at 2.6% per year over the past 5 years. The last dividend increase was in 2022 and it was a 5% increase.

The Dividend Payout Ratios (DPR) are fine. The DPR for 2022 for Earnings per Share (EPS) is 61% with 5 year coverage at 115%. The DPR for 2022 for Adjusted Earnings per Share (AEPS) is 76% with 5 year coverage at 101%. The DPR for 2022 for Free Cash Flow (FCF – as per company) is 60% with 5 year coverage at 64%. The DPR for 2022 Cash Flow per Share (CFPS) is 28.49% with 5 year coverage at 31%. The DPR for 2022 for Free Cash Flow (FCF) is 41% with 5 year coverage at 53%. The important DPRs is the one for AEPS, which thankfully is expected to decline to 61 in 2024 and 42% in 2025 and the CFPS which is fine and any CRPS DPR 40% or less is good. So, I judge these fine at present.

Item	Cur	5 Years
EPS	90.53%	114.64%
AEPS	76.36%	100.69%
FCF PS	59.90%	64.16%
CFPS	28.49%	31.45%
FCF	41.31%	53.09%

Some Debt Ratios need improving. The Long Term Debt/Market Cap Ratio for 2022 is 0.72. It is a high but probably fine, although some Analysts do not like this ratio to be above 0.50 and some think under 1.00 is fine. The Liquidity Ratio for 2022 is good at 1.80 as any ratio at 1.50 or above is good. The Debt Ratio for 2022 is a bit low at 1.40. I like this to be at 1.50 or above. The Leverage and Debt/Equity Ratios are too high at 3.48 and 2.48. I prefer these to be under 3.00 and 2.00.

Type	Year End	Ratio Curr
Lg Term R	0.72	0.83
Intang/GW	0.41	0.49
Liquidity	1.80	1.91
Liq. + CF	2.20	2.32
Debt Ratio	1.40	1.47
Leverage	3.48	3.14
D/E Ratio	2.48	2.14

The Total Return per year is shown below for years of 5 to 19 to the end of 2022. 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.
2017	5	2.62%	13.60%	8.11%	5.49%
2012	10	3.93%	13.24%	7.40%	5.84%
2007	15	3.41%	20.45%	11.00%	9.45%
2003	19	8.61%	34.59%	15.08%	19.51%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 14.38, 17.22 and 20.06. The corresponding 10 year ratios are 13.45, 16.47 and 20.67. The corresponding historical ratios are 12.52, 15.72 and 18.54. The current P/E Ratio is 17.14 based on a stock price of $47.30 and EPS estimate for 2023 of $2.76. The current ratio is between the median and high ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 10.99, 14.52 and 16.92. The corresponding 10 year ratios are 10.80, 14.16 and 17.76. The current P/AEPS Ratio is 14.38 based on a stock price of $47.30 and AEPS estimate for 2023 of $3.29. The current ratio is between median and high ratios of the 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 $45.39. The 10-year low, median, and high median Price/Graham Price Ratios are 0.81, 1.12 and 1.41. The current P/GP Ratio is 1.04 based on a stock price of $47.30. 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 1.80. The current ratio is 1.70 based on a Book Value of $1,183M, Book Value per Share of $27.84 and a stock price of $47.30. 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 also have a Book Value per Share estimate for 2023 of $30.10. The analysts are calculating the Book Value differently than I am. Their 10 year P/B Ratio is 1.72. This estimate implies a Book Value of $1,279 and P/B Ratio is 1.57 based on a stock price of $47.30. This ratio is 8% 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 5.82. The current P/CF Ratio is 5.89 based on a stock price of $47.30, Cash Flow for the last 12 months of $341M and Cash Flow per Share of $8.03. 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 7.42%. The current dividend yield is 5.33% based on dividends of $2.52 and a stock price of $47.30. The current dividend is 28% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive. However, this company used to be an income trust and such companies can have very high dividend yields, so this is probably not a good test.

I get a 10 year median dividend yield of 6.59%. The current dividend yield is 5.33% based on dividends of $2.52 and a stock price of $47.30. The current dividend is 19% below the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median. However, this company used to be an income trust and such companies can have very high dividend yields, so this is probably not a good test. The dividend yield is been declining since the company became a corporation.

The 10-year median Price/Sales (Revenue) Ratio is 1.09. The current P/S Ratio 0.82 based on Revenue estimate for 2023 of $2,441M, Revenue per Share of $57.46 and a stock price of $47.30. 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. Because the dividend yield is declining and that decline is probably due to the company changing from an income trust to a corporation, we probably must rely on other stock price testing than the dividend testing. The P/S Ratio testing says the stock price is cheap, but it is the only one to say that. All the rest are saying reasonable and above and below the median.

When I look at analysts’ recommendations, I find Strong Buy (4) and Buy (6). The consensus would be a Strong Buy. The 12 months stock price target is $67.75. This implies a total return of 48.56%, with 43.23% from capital gains and 5.33% from dividends.

Analysts on Stock Chase do like this stock. Stock Chase gives this stock 4 stars out of 5. This stock is on the Maple Money and Aristocrat lists but not the Money Sense list. Demetris Afxentiou on Motley Fool likes the 5% dividend and the monthly payment. Aditya Raghunath on Motley Fool likes that this stock has a long history of dividend payments. The company posted a press release on Business wire about their year-end of 2022 results . The company put out a press release on Business wire about their second quarter of 2023 results.

Simply Wall Street via Yahoo Finance reviews this stock and its dividend. They give out 3 warnings signs of interest payments are not well covered by earnings; and dividend of 5.28% is not well covered; and shareholders have been diluted in the past year. By the way, Shareholder dilutions matter as it makes a difference in say, Revenue and Revenue per Share. Simply Wall Street gives this stock 4 stars out of 5.

Exchange Income Corp is a diversified, acquisition-oriented corporation focused on opportunities in two sectors, aerospace, aviation services and equipment, and manufacturing. The business plan of the corporation is to invest in profitable, well-established companies with cash flows operating in niche markets. Its web site is here Exchange Income Corp.

The last stock I wrote about was about was Alimentation Couche-Tard Inc (TSX-ATD, OTC-ANCUF) ... learn more. The next stock I will write about will be ATCO Ltd (TSX-ACO.X, OTC-ACLLF) ... learn more on Friday, August 25, 2023 around 5 pm. Tomorrow on my other blog I will write about Best Stocks for Income Investors.... learn more on Thursday, August 24, 2023 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 site for an index to these blog entries and for stocks followed. 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Alimentation Couche-Tard Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. Results of stock price testing is that the stock price is probably reasonable. Debt Ratios are fine. The Dividend Payout Ratios (DPR) are good and low. The current dividend yield is low with dividend growth good. See my spreadsheet on Alimentation Couche-Tard Inc.

Is it a good company at a reasonable price? I must admit I wonder about calling this stock a dividend stock because the dividend is so low. Although, since this stock has grown so fast, people who bought it 10 years ago are getting a current dividend yield of 4.5% on their original investment. However, I do not think you can depend on this growing so fast in the future. I think that the stock price is probably reasonable, which most test say, but the dividend yield tests say it is cheap and the P/S Ratio test says it is expensive.

I do not own this stock of Alimentation Couche-Tard Inc (TSX-ATD, OTC-ANCUF). In 2004 I bought this stock as it had a good reputation and my spreadsheet showed I should do well with it. The only problem I had with it then was it had no dividend. I bought more of this stock in 2006 as it had a good past record and had started to pay a dividend. By the year end I bought more as TD Bank said it was a good time to buy this stock.

I sold the stock in my trading account in 2007 as I was raising mortgage money and this stock had gone down so it was cheap, tax wise, to sell. In 2013, I sold the stock in my Pension account as it had the lowest dividend yield and I had to raise money in this account because of yearly withdrawals.

When I was updating my spreadsheet, I noticed that the financial year for this company ends at April 30 each year. So, I will be reviewing the financial year ending April 30, 2023. The dividend yield is extremely low around 0.8%. I generally do not buy stock when they have dividends below 1%. The company is reporting in US$, but the dividends are still being paid in CDN$.

This company is growing quite well. See chart below.

Year	Item	Tot. Growth	Per Year
5	Revenue Growth US$	39.81%	6.93%
5	AEPS Growth	140.31%	19.17%
5	Net Income Growth	95.36%	14.33%
5	Cash Flow Growth	100.85%	14.97%
5	Dividend Growth	163.26%	21.36%
5	Stock Price Growth	130.14%	18.14%
10	Revenue Growth US$	102.17%	7.29%
10	AEPS Growth	509.77%	19.82%
10	Net Income Growth	622.62%	21.87%
10	Cash Flow Growth	274.08%	14.10%
10	Dividend Growth	648.61%	22.30%
10	Stock Price Growth	394.46%	17.33%

If you had invested in this company in December 2012, for $1,003.07 you would have bought 123 shares at $8.16 per share. In December 2022, after 10 years you would have received $282.64 in dividends. The stock would be worth $7,318.50. Your total return would have been $7,601.14. This is a total return would be 18.07% per year with 17.33% from capital gains and 0.81% from dividends. This is in CDN$

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$8.16	$1,003.07	123	10	$282.64	$7,318.50	$7,601.14

The current dividend yield is low with dividend growth good. The dividend yield is low (below 2%) at just 0.80%. The 5, 10 and historical dividend yields are also low at 0.75%, 0.62% and 0.65%. The dividend growth is good with growth over the past 5 years at 22.7% per year. The last dividend increase was in 2023 and it was for 27.3%.

The Dividend Payout Ratios (DPR) are good and low. The DPR for 2023 for Earnings per Share (EPS) is 12% with 5 year coverage at 8%. The DPR for 2023 Adjusted Earnings per Share (AEPS) is 12% with 5 year coverage at 11%. The DPR for 2023 for Cash Flow per Share (CFPS) is 8% with 5 year coverage at 7%. The DPR for 2023 for Free Cash Flow is 14% with 5 year coverage at 10%.

Item	Cur	5 Years
EPS	12.03%	8.32%
AEPS	11.80%	10.66%
CFPS	7.75%	6.80%
FCF	14.26%	10.23%

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2023 is good and low at 0.12. The Liquidity Ratio for 2023 is low at 1.10, but if you add in Cash Flow after dividends it is good at 1.87. The Debt Ratio is good at 1.76. The Leverage and Debt/Equity Ratios are fine at 2.31 and 1.31.

Type	Year End	Ratio Curr
Lg Term R	0.12	0.12
Intang/GW	0.15	0.15
Liquidity	1.10	1.10
Liq. + CF	1.87	1.88
Debt Ratio	1.76	1.76
Leverage	2.31	2.31
D/E Ratio	1.31	1.31

The Total Return per year is shown below for years of 5 to 30 to the end of 2022 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	22.67%	13.43%	12.65%	0.77%
2011	10	25.89%	22.95%	21.99%	0.88%
2006	15	23.28%	22.79%	21.91%	0.88%
2001	20	16.02%	22.94%	22.13%	0.80%
1996	25		24.83%	24.09%	0.66%
1991	30		32.43%	31.34%	1.16%

The Total Return per year is shown below for years of 5 to 30 to the end of 2022 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	21.36%	11.75%	10.98%	0.77%
2011	10	22.30%	19.27%	18.40%	0.88%
2006	15	20.88%	20.73%	19.85%	0.88%
2001	20	14.73%	20.98%	20.17%	0.80%
1996	25		21.35%	20.69%	0.66%
1991	30		31.19%	30.03%	1.16%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 12.08, 14.22 and 16.38. The corresponding 10 year ratios are 12.44, 15.64 and 18.28. The corresponding historical ratios are 12.49, 15.95 and 19.64. The current P/E Ratio is 18.01 based on a stock price of $69.73 and EPS estimate for 2024 of $3.87. The current ratio is between the median and high ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in CDN$.

I also have Adjusted Earning per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 12.33, 14.44 and 17.51. The corresponding 10 year ratios are 12.87, 15.82 and 19.09. The current ratio is 17.89 based on a stock price of $51.69 and AEPS estimate for 2024 of $2.89. The current ratio is between the median and high ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in US$ and you will get a similar result in CDN$.

I get a Graham Price of $40.71 . The 10-year low, median, and high median Price/Graham Price Ratios are 1.22, 1.49 and 1.81. The current P/GP Ratio is 1.80 based on a stock price of $69.73. The current ratio is between the median and high ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in CDN$.

I get a 10-year median Price/Book Value per Share Ratio of 3.43. The current P/B Ratio is 4.04 based on a stock price of $51.69, Book Value of $12,565M, and Book Value per Share of $12.80. The current ratio is 18% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in US$ and you will get a similar result in CDN$.

I also have a Book Value per Share estimate for 2024 of $14.20. This implies a Book Value of $13,955M, and a P/B Ratio of 3.64 based on a stock price of $51.69. This P/B Ratio is 6% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in US$ and you will get a similar result in CDN$.

I get a 10-year median Price/Cash Flow per Share Ratio of 10.34. The current P/CF Ratio is 9.63 based on Cash Flow per Share estimate for 2024 of $4.56, Cash Flow of $4,475M and a stock price of $51.69. The current ratio is 10% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in US$ and you will get a similar result in CDN$.

I get an historical median dividend yield of 0.65%. The current dividend yield is 0.80% based on stock price of 69.73 and dividends of $0.56. The current dividend yield is 24% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap. This testing is in CDN$ and the dividends are paid in CDN$ even though the company is reporting in US$.

I get a 10 year median dividend yield of 0.62%. The current dividend yield is 0.80% based on stock price of 69.73 and dividends of $0.56. The current dividend yield is 30% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively cheap. This testing is in CDN$ and the dividends are paid in CDN$ even though the company is reporting in US$.

The 10-year median Price/Sales (Revenue) Ratio is 0.59. The current P/S Ratio is 0.73 based on Revenue estimate for 2024 of $69,100M, Revenue per Share of $70.42 and a stock price of $51.69. The current ratio is 24% 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. It is harder to judge the price when the dividend yield test and the P/S Ratio test says very different things. The dividend yield tests say that the stock price is cheap and the P/S Ratio test says it is expensive. Most of the other testing is saying the stock price is reasonable but above the median.

When I look at analysts’ recommendations, I find Strong Buy (6), Buy (10), and Hold (1). The consensus would be a Buy. The 12 month stock price consensus is $78.13 ($58.12 US$). This implies a total return of $12.85% with 12.05% from capital gains and 0.80% from dividends.

Most analysts like this stock on Stock Chase. Stock Chase gives this stock 5 stars out of 5. It is on the Money Sense list and the Aristocrat list, but not on the Maple Money List. Joey Frenette on Motley Fool thinks this is a good stock for a TFSA. Andrew Button on Motley Fool thinks this stock could create wealth for you. The company put out a press release on Newswire about their results for their 2023 fiscal year end.

Simply Wall Street via Yahoo Finance has put out a review of this stock. Simply Wall Street gives this stock 3 and one half stars out of 5. They have two warnings of significant insider selling over the past 3 months; and has a high level of debt. Of the 6 insiders that I follow, two sold stocks, two bought stocks and two did not change.

Alimentation Couche-Tard Inc operates a network of convenience stores across North America, Ireland, Scandinavia, Poland, the Baltics, and Russia. In addition, the company operates more stores under the Circle K banner in other countries such as China, Egypt, and Malaysia. Its operation is geographically divided into U.S., Europe, and Canada. Revenue from external customers fall mainly into three categories: merchandise and services, road transportation fuel, and other. Its web site is here Alimentation Couche-Tard Inc.

The last stock I wrote about was about was Chemtrade Logistics Income Fund (TSX-CHE.UN, OTC-CGIFF) ... learn more. The next stock I will write about will be Exchange Income Corp (TSX-EIF, OTC-EIFZF) ... learn more on Wednesday, August 23, 2023 around 5 pm. Tomorrow on my other blog I will write about Winners and Losers.... learn more on Tuesday, August 22, 2023 around 5 pm.

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