Linamar Corporation

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. Results of stock price testing is that the stock price is probably cheap. Debt Ratios are good. The Dividend Payout Ratios (DPR) are good. The current dividend yield is Low with dividend growth moderate. See my spreadsheet on Linamar Corporation.

Is it a good company at a reasonable price? This company is starting to grow again. It is risky because of the volatility of its earnings and the stock price. A plus is that they have good debt ratios and they are paying out little in the way of dividends. Another plus is that the stock seems to be relatively cheap at present. I do not buy stocks when their dividends are lower than 1%. Currently the dividend yield is 1.36%.

I do not own this stock of Linamar Corporation (TSX-LNR, OTC-LIMAF). I looked at this stock back in 2000 and it was not a stock I thought fit my investment philosophy. In 2008 I read an article that recommended this company as a dividend stock with good value. This stock used to be on the Investment reporter portfolio stock list as an average risk stock. However, it has now been taken off this list. It is on the Money Saving list of Top 100 Canadian Dividend stocks.

When I was updating my spreadsheet, I noticed Revenue, Earnings and Net Income hit a low point in 2020 (2 years ago) and have been growing ever since. The 10 year growth is good, but the 5 year growth not so much. Analysts think that Cash Flow Growth will begin in 2023.

Year	Item	Tot. Growth	Per Year
2	Revenue Growth	36.15%	16.68%
2	AEPS Growth	30.15%	14.08%
2	Net Income Growth	52.68%	23.57%
2	Cash Flow Growth	-67.36%	-42.87%
2	Dividend Growth	122.22%	49.07%
2	Stock Price Growth	-9.08%	-4.65%
5	Revenue Growth	20.95%	3.88%
5	AEPS Growth	-25.03%	-5.60%
5	Net Income Growth	-22.42%	-4.95%
5	Cash Flow Growth	-40.44%	-9.84%
5	Dividend Growth	66.67%	10.76%
5	Stock Price Growth	-16.27%	-3.49%
10	Revenue Growth	145.75%	9.41%
10	AEPS Growth	178.22%	10.77%
10	Net Income Growth	191.71%	11.30%
10	Cash Flow Growth	32.70%	2.87%
10	Dividend Growth	150.00%	9.60%
10	Stock Price Growth	164.22%	10.20%

If you had invested in this company in December 2012, for $1,020.80 you would have bought 44 shares at $23.20 per share. In December 2022, after 10 years you would have received $211.20 in dividends. The stock would be worth $2,697.20. Your total return would have been $2,908.40. This is a total return would be a loss of 11.51% per year with 10.20% from capital gain and 1.31% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$23.20	$1,020.80	44	10	$211.20	$2,697.20	$2,908.40

The current dividend yield is Low with dividend growth moderate. The current dividend yield is low (below 2%) at 1.36%. The 5, 10 and historical dividend yields are also low at 0.88%, 0.78% and 1.19%. The dividend growth is moderate (8% to 14% ranges) at 10.8% per year for the past 5 years. The last dividend increase was in 2023 and it was for 10%.

The Dividend Payout Ratios (DPR) are good. The DPR for 2022 for Earnings per Share (EPS) is 12% with 5 year coverage at 9%. The DPR for 2022 for Adjusted Earnings per Share (AEPS) is 13% with 5 year coverage at 9%. The DPR for 2022 for Cash Flow per Share (CFPS) is 6% with 5 year coverage at 4%. The DPR for 2022 for Free Cash Flow (FCF) is 99% with 5 year coverage at 7%. The problem with FCF no site I looked at agree on what it was.

Item	Cur	5 Years
EPS	11.99%	8.52%
AEPS	12.78%	8.58%
CFPS	5.69%	4.11%
FCF	98.90%	6.78%

Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2022 is 0.34 with current ratio at 0.14. These are good. The Liquidity Ratio for 2022 is 1.71 and that is good. The current is low at 1.32, but add in Cash Flow after dividends and it is good at 1.58. The Debt Ratio for 2022 is good at 2.28 and the current one is good at 2.34. The Leverage and Debt/Equity Ratios for 2022 are good at 1.78 and 0.78 and good currently at 1.75 and 0.75.

Type	Year End	Ratio Curr
Lg Term R	0.34	0.14
Intang/GW	0.49	0.45
Liquidity	1.71	1.32
Liq. + CF	1.91	1.58
Debt Ratio	2.28	2.34
Leverage	1.78	1.75
D/E Ratio	0.78	0.75

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	10.76%	-2.66%	-3.49%	0.83%
2012	10	9.60%	11.51%	10.20%	1.31%
2007	15	8.36%	8.78%	7.67%	1.11%
2002	20	8.38%	11.63%	10.14%	1.49%
1997	25	7.43%	3.94%	3.23%	0.70%
1992	30	8.28%	11.99%	10.31%	1.69%
1988	34		15.24%	13.00%	2.24%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 5.85, 9.58 and 12.17. The corresponding 10 year ratios are 6.55, 9.54 and 12.36. The corresponding historical ratios are 8.31, 11.59 and 15.18. The current P/E Ratio is 7.70 based on a stock price of $64.85 and EPS estimate for 2023 of $8.42. 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 also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 5.19, 9.93 and 12.96. The corresponding 10 year ratios are 6.53, 9.72 and 12.76. The current P/AEPS Ratio is 7.55 based on a stock price of $64.85 and AEPS estimate for 2023 of $8.59. 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 $120.23. The 10-year low, median, and high median Price/Graham Price Ratios are 0.53, 0.71 and 0.86. The current P/GP Ratio is 0.54 based on a stock price of $64.85. 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 1.26. The current P/B Ratio is 0.87 based on a Book Value of $4,602M, Book Value per Share of $78.20 and a stock price of $64.85. The current ratio is 31% 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 5.59. The current P/CF Ratio is 4.24 based on a stock price of $64.85, Cash Flow per Share estimate for 2023 of $15.30 and Cash Flow of $727M. The current ratio is 39% 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 1.19%. The current dividend yield is 1.36% based on a stock price of $64.85 and Dividends of $0.88. The current dividend yield is 14% 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 0.78%. The current dividend yield is 1.36% based on a stock price of $64.85 and Dividends of $0.88. The current dividend yield is 75% 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 0.62. The current P/S Ratio is 0.42 based on Revenue estimate for 2023 of $9,523M, Revenue per Share of $154.77 and a stock price of $64.85. The current ratio is 32% 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 yield test says this and it is confirmed by the P/S Ratio test. The historical median dividend yield test says the stock price is reasonable. The other tests say the stock price is either reasonable or cheap.

When I look at analysts’ recommendations, I find Strong Buy (2), and Buy (4). The consensus would be a Strong Buy. The 12 month stock price consensus is $89.33 with a high of $96.00 and a low of $84.00. A consensus price of $89.33 implies a total return of 39.11% with 37.75% from capital gains and 1.36% from dividends.

The recommendations on Stock Chase is a mixed bag with the latest a buy, but the prior one a Sell. Stock Chase gives this company 5 stars out of 5. It is on the Money Sense dividend list I follow. Aditya Raghunath on Motley Fool thinks this stock is current a buy for long-term shareholders. Kay Ng on Motley Fool compared Magna and Linamar and thinks Linamar is cheap, but Magna is a lower risk. The company put out a Press Release on Newswire about their 2022 year-end results. The company put a press release on Newswire about their second quarter of 2023.

Simply Wall Street on Yahoo Finance is worried about this company because the ROCE is declining. They have 1 warning of earnings have declined by 7% per year over past 5 years.

Linamar Corporation is an advanced manufacturing company. The Company is made up of two operating segments – the Industrial segment and the Mobility segment, both global leaders in manufacturing solutions and world-class developers of highly engineered products. Its web site is here Linamar Corporation.

The last stock I wrote about was about was BRP Inc (TSX-DOO, OTC-DOOO) ... learn more. The next stock I will write about will be Teck Resources Ltd (TSX-TECK.B, NYSE-TECK) ... learn more on Monday, October 2, 2023 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. 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.

BRP Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer maybe. Results of stock price testing is that the stock price is probably reasonable. Some Debt Ratios are currently a problem, but analysts expect they will improve greatly over the next two years. The Dividend Payout Ratios (DPR) are good and low. The current dividend yield is low with dividend growth good at the moment. See my spreadsheet on BRP Inc.

Is it a good company at a reasonable price? This company seems to be growing strongly. It has done well for shareholders since being list on the TSX. It does have debt problem but analyst seem to feel this will improve in the future. This makes buying this stock on the risky side. It is not really a dividend stock because of the very low dividend. Results of stock price testing is that the stock price is probably reasonable. I must admit that most analysts seem to think it is cheap.

I do not own this stock of BRP Inc (TSX-DOO, OTC-DOOO). Robin Speziale, author of Market Masters and Capital Compounders had mentioned this stock in Capital Compounders, Table 3 (page 93 in my copy) as a possible next Capital Compounder.

When I was updating my spreadsheet, I noticed that last year analysts expected 2023 Revenue to be $9,785M at a 28% increase, but Revenue came in at 10, 033 a 31% increase. Analysts expected the Adjusted Earnings per Share (AEPS) to come in at $11.51, a 16% increase, but they came in at $12.05, a 21% increase. They also expected a good increase to Cash Flow per Share (CFPS) of $16.40, a 70% increase, but CFPS came in at $8.23, a 13% decrease. However, analyst think CFPS will be better in 2024 at $18.70. Note that the financial year end January 31 each year, so I am reviewing January 31, 2023 financials.

Generally, growth is good. The exception seems to be in Cash Flow. See chart below.

Year	Item	Tot. Growth	Per Year
5	Revenue Growth	123.62%	17.46%
5	AEPS Growth	406.30%	38.32%
5	Net Income Growth	215.06%	25.80%
5	Cash Flow Growth	25.22%	4.60%
5	Dividend Growth	166.67%	21.67%
5	Stock Price Growth	118.31%	16.90%
10	Revenue Growth	246.43%	13.23%
10	AEPS Growth	744.85%	23.79%
10	Net Income Growth	624.75%	21.90%
10	Cash Flow Growth	46.02%	3.86%
5	Dividend Growth	166.67%	21.67%
10	Stock Price Growth	362.43%	16.55%

If you had invested in this company in December 2013, for $1,025.10 you would have bought 34 shares at $30.15 per share. In December 2022, after 9 years you would have received $77.18 in dividends. The stock would be worth $3,509.82. Your total return would have been $3,587.09. This is a total return would be a loss of 15.03% per year with 14.65% from capital gain and 0.38% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$30.15	$1,025.10	34	9	$77.18	$3,509.82	$3,587.00

The current dividend yield is low with dividend growth good at the moment. The dividend yield is low (below 2%) at just 0.72%. The 5, 6 and historical dividend yields are 0.69%, 0.66% and 0.66%. Dividends have been paid for 6 years. The dividend growth has been good with growth at 33% per year for the past 5 years. However, the last dividend increase was for the financial year of 2024 and was for 12.5%.

The Dividend Payout Ratios (DPR) are good and low. The DPR for 2023 for Earnings per Share (EPS) is 6% with 5 year coverage at 7%. The DPR for 2023 for Adjusted Earnings per Share (AEPS) is 5% with 5 year coverage at 7%. The DPR for 2023 for Cash Flow per Share (CFPS) is 5% with 3 year coverage at 3%. The DPR for 2023 for Free Cash Flow (FCF) is 10% with 3 year coverage at 10%.

Item	Cur	5 Years
EPS	6.00%	6.70%
AEPS	5.31%	6.93%
CFPS	2.99%	3.08%
FCF	9.62%	9.99%

Some Debt Ratios are currently a problem, but analysts expect they will improve greatly over the next two years. The Long Term Debt/Market Cap Ratio for 2023 is 0.34 and currently is 0.35. Both are low and good. The Liquidity Ratios are a bit low at 1.36 for 2023 and 1.11 currently. However, add in Cash Flow after dividends and they are 1.59 and 1.54, respectively.

The Debt Ratios are too low at 1.09 for 2023 and better, but still low at 1.13 currently. This ratio needs to be 1.50 or higher. The Leverage and Debt/Equity Ratios are far to high at 11.97 and 10.97 for 2023 and 8.52 and 7.52 currently. These ratios should be below 3.00 and 2.00, so this is a problem. However, the company until recently had a negative Book Value until recently and analysts expect these ratios to good by January 2025 financials.

Type	Year End	Ratio Curr
Lg Term R	0.34	0.35
Intang/GW	0.09	0.09
Liquidity	1.36	1.11
Liq. + CF	1.59	1.54
Liq. CF WC	2.00	1.54
Debt Ratio	1.09	1.13
Leverage	11.97	8.52
D/E Ratio	10.97	7.52

The Total Return per year is shown below for years of 5 to 8 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	33.00%	17.77%	17.16%	0.62%
2013	8		15.03%	14.65%	0.38%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 8.99, 12.88 and 16.77. The corresponding 10 year ratios are 9.74, 14.15 and 20.85. The corresponding historical ratios are the same as the 10 year ratio of 9.74, 14.15 and 20.85. The current P/E Ratio is 7.45 based on a stock price of $97.62 and EPS estimate for 2024 of $13.10. The current ratio is below the low ratio of the 10 year median ratio. 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 8.84, 10.35 and 16.86. The corresponding 10 year ratios are 9.07, 13.15 and 17.04. The current P/AEPS Ratio is 7.54 based on a stock price of $97.62 and AEPS estimate for 2024 of $12.94. The current ratio is below the low ratio of the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $54.27. The 10-year low, median, and high median Price/Graham Price Ratios are 14.00, 42.34 and 31.84. The current P/GP Ratio is 1.80 based on a stock price of $97.62. The P/GP Ratios are not valid because this company had a negative book value over a number of years and it is not possible to calculate a valid P/GP Ratio with a negative book value. The current P/GP is rather high. A normal median P/GP Ratio is around 1.00. A value above 1.20 is considered high.

I get a 10-year median Price/Book Value per Share Ratio that is negative and so invalid. The current P/B Ratio is 9.65 and that is very high. Generally speaking, ratios of between 1.50 and 3.00 are reasonable. The trouble with this measurement on this stock is the series of negative Book Values that the company has experienced.

I also have Book Value per Share estimate for 2024 of $16.80. This implies a book value of $782M and a P/B Ratio of 5.81 with a stock price of $97.62. This ratio is also far too high. The P/B Ratio for 2026 could be 2.28 with a Book Value per Share of $42.80 and a stock price of $97.62. The P/B Ratio for 2026 is reasonable.

I get a 10-year median Price/Cash Flow per Share Ratio of 7.97. The current P/CF Ratio is 5.22 based on Cash Flow per Share estimate of $18.70, Cash Flow of $1,445M and a stock price of $97.62. The current ratio is 35% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. Problem is that analysts believe that this company will be making much more in cash flow in the future. The estimate given is 122% above the cash flow for 2023.

I get an historical median dividend yield of 0.66%. The current dividend yield is 0.74% based on a stock price of $97.62 and dividends of $0.72. The current dividend yield is 12% 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 6 year median dividend yield of 0.66%. The current dividend yield is 0.74% based on a stock price of $97.62 and dividends of $0.72. The current dividend yield is 12% above the historical 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 0.82. The current P/S Ratio is 0.75 based on Revenue estimate for 2024 of $10,093M, Revenue per Share of $130.66 and a stock price of $97.62. The current ratio is 9% 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. The dividend yield tests say this and it is confirmed by the P/S Ratio tests. I know that some tests say the stock price is cheap, but there are problems with a number of tests due to the fact that the company had a negative book value for a number of years.

When I look at analysts’ recommendations, I find Strong Buy (10), Buy (8) and Hold (2). The consensus would be a Strong Buy. The 12 months stock price consensus is $137.28 with a high of $190.00 and low of $99.00. The consensus stock price of $137.28 implies a total return of 41.36% with 40.63% from capital gains and 0.74% from dividends.

The two analysts’ recommendations on Stock Chase for 2023, rate it as a Buy. Stock Chase gives this stock 4 stars out of 5. It is on the Money Sense dividend list. Robin Brown on Motley Fool thinks this company is a cheap growth stock. Vishesh Raisinghani on Motley Fool says you should keep an eye on this underrated manufacturing stock. I got the Motley Fool items via Yahoo Finance as the Canadian Motley Fool site does not seem to be working currently. The company issued a Press Release via Newswire about their year-end results for January 2023 . The company put out a Press Release on Newswire about its second quarter of 2024 results.

Simply Wall Street via Yahoo Finance thinks this stock is a good one to follow. Simply Wall Street has 1 warning of has a high level of debt.

BRP designs, develops, manufactures, distributes, and markets snowmobiles, all-terrain vehicles, and personal watercraft under the Ski-Doo, Sea-Doo, Can-Am, and Lynx brand names. It also builds engines under the Rotax brand and offers clothing, parts, and accessories that cater to its core consumers. At the end of fiscal 2023, the company marketed its products through a network of more than independent dealers and distributors in about 130 countries. Its web site is here BRP Inc.

The last stock I wrote about was about was K-Bro Linen Inc (TSX-KBL, OTC-KBRLF) ... learn more. The next stock I will write about will be Linamar Corporation (TSX-LNR, OTC-LIMAF) ... learn more on Friday, September 29, 2023 around 5 pm. Tomorrow on my other blog I will write about Planning Retirement .... learn more on Thursday, September 28, 2028 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. 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.

K-Bro Linen Inc

Sound bite for Twitter and StockTwits is: Dividend Paying Consumer. Results of stock price testing is that the stock price is certainly reasonable and probably cheap. Debt Ratios are good. The Dividend Payout Ratios (DPR) will probably be fine but there is no sign of a dividend increase. The current dividend yield is moderate with dividend growth non-existent. See my spreadsheet on K-Bro Linen Inc.

Is it a good company at a reasonable price? Certainly, analysts seem to expect this stock to do better in the future. After stock declines for the 3 years prior, this stock is up 18.8% this year. The problem with dividends is that the company used to be an income trust and all companies that used to be income trusts are having a hard time getting the dividends right for a corporation. I suspect this will turn out to be a solid stock in the future and will produce a reasonable return and reasonable dividends. The stock price is reasonable and may be cheap.

I do not own this stock of K-Bro Linen Inc (TSX-KBL, OTC-KBRLF). People were talking about this stock at the 2009 Toronto Money Show. This was one income trust being touted as currently a good buy with very good yield. It was also recommended by Aaron Dunn who is the Senior Equity Analyst for Keystone Publishing Corp, a publisher of Canadian investment newsletters.

When I was updating my spreadsheet, I noticed that they Revenue is up by 23.5%, but their expenses are up 28%, and especially the cost of sales up by 32.5%. EPS is down by 55.6% from $0.81 to $0.36. EPS seems to be quite volatile. Analyst do expect the EPS to improve this year and the next two years. Analyst expect EPS to go up 340% in 2023 to $1.58 and 27% in 2024 to 2.01. The EPS for the last 12 month to the end of the second quarter of 2023, see EPS up by 142% to $0.87.

If you had invested in this company in December 2012, for $1,010.10 you would have bought 35 shares at $28.86 per share. In December 2022, after 10 years you would have received $419.27 in dividends. The stock would be worth $955.50. Your total return would have been $1,374.77. This is a total return would be a gain of 3.69% per year with 0.55% from capital loss and 4.25% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$28.86	$1,010.10	35	10	$419.27	$955.50	$1,374.77

The current dividend yield is moderate with dividend growth non-existent. The current dividend yield is moderate (2% to 4% range) at 3.70%. The 5, 10 year and historical median dividend yields are also moderate at 3.27%, 3.11% and 3.62%. The dividends have been flat since 2014. The problem is that this company used to be an income trust. Income Trust companies can have quite high dividend compared to corporations. They might have been better off if they had cut the dividend and then started to grow it again.

The Dividend Payout Ratios (DPR) will probably be fine but there is no sign of a dividend increase. The DPR for 2022 for Earnings per Share (EPS) is very high at 333% with still high for the 5 year coverage at 191% Analysts believe it will moderate to 76% in 2023 and then to 60% in 2024. The DPR for 2022 for Distributable Cash (DC) is 66% with 5 year coverage at 49%. The DPR for 2022 for Cash Flow per Share (CFPS) is 41% with 5 year coverage at 36%. The DPR for 2022 for Free Cash Flow (FCF) is 88% with 5 year coverage at 76%.

Item	Cur	5 Years
EPS	333.33%	190.60%
DC	66.30%	49.49%
CFPS	40.72%	35.51%
FCF	87.54%	75.52%

Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2022 is good and low at 0.15. The Liquidity Ratio for 2022 is good at 1.86. The Debt Ratio for 2022 is good at 2.18. The Leverage and Debt/Equity Ratios for 2022 are good at 1.85 and 0.85. The current ratios are close to the 2022 year end ones.

Type	Year End	Ratio Curr
Lg Term R	0.15	0.18
Intang/GW	0.14	0.14
Liquidity	1.86	1.93
Liq. + CF	2.16	2.50
Debt Ratio	2.18	2.03
Leverage	1.85	1.97
D/E Ratio	0.85	0.97

The Total Return per year is shown below for years of 5 to 18 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	0.00%	-4.52%	-7.95%	3.43%
2012	10	0.43%	3.69%	-0.55%	4.25%
2007	15	0.58%	11.42%	4.81%	6.61%
2004	18	0.90%	12.03%	4.83%	7.20%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 54.44, 62.36 and 70.27. The corresponding 10 year ratios are 36.48, 41.52 and 42.73. The corresponding historical ratios are 21.54, 23.99 and 27.42. The problem is that when earnings get really low on good companies, the stock will only fall so far. This sometimes how you get really high P/E Ratios and these ratios are really high. The current P/E Ratio 20.53 based on a stock price of $32.44 and EPS estimate for 2023 of $1.58. The current P/E Ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap. Still a ratio of 20.53 is relatively high for a consumer stock.

I also have Distributable Cash (DC) Data. The 5-year low, median, and high median Price/ Distributable Cash per Share Ratios are 13.13, 15.54 and 17.51. The corresponding 10 year ratios are 13.27, 15.55 and 17.74. The current P/DC Ratio is 10.57 based on a stock price of $32.44 and DC estimate for 2023 of $3.07. The current ratio is below the low ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $24.08. The 10-year low, median, and high median Price/Graham Price Ratios are 1.59, 2.28 and 2.59. The current P/GP Ratio is 1.35 based on a stock price of $32.44. 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.

I get a 10-year median Price/Book Value per Share Ratio of 2.23. The current P/B Ratio is 1.99 based on a stock price of $32.44, Book Value per Share of $16.31 and a Book Value of $176M. The current ratio is 11% 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 an estimate for the Book Value per Share for 2023 of $16.60. This gives a Book Value of $179M and a P/B Ratio of 1.95 based on a stock price of $32.44. This ratio of 1.95 is 12% below the 10 year median ratio of 2.23. 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 13.79. The current P/CF Ratio is 8.56 based on Cash Flow per Share estimate for 2023 of $3.79, Cash Flow of $41M and a stock price of $32.44. The current ratio is 38% 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 3.62%. The current dividend yield is 3.70% based on a stock price of $32.44 and Dividends of $1.20. This dividend yield is 2% 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 3.11%. The current dividend yield is 3.70% based on a stock price of $32.44 and Dividends of $1.20. This dividend yield is 19% above the historical 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 1.91. The current P/S Ratio is 1.13 based on a stock price of $32.44, Revenue estimate for 2023 of $310M, and Revenue per Share of $28.78. The current P/S Ratio is 41% 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 certainly reasonable and probably cheap. There is a problem with the dividend yield tests because dividends are flat and this test works best with dividend grower. However, the P/S Ratio test says the stock price is relatively cheap. Other tests also say the stock price is relatively cheap.

When I look at analysts’ recommendations, I find Strong Buy (2), Buy (4) and Hold (1). The Consensus would be a Buy. The 12 month stock price consensus is $42.46, with a high of $48.00 and a low of $36.00. With the consensus price of $42.46, this implies a total return of 34.59% with 30.89% from capital gains and 3.70% from dividends.

There were two analysts’ recommendations on Stock Chase of this stock being a buy. They say that in 2022 the company had problems with gas prices in Europe. Stock Chase gives this stock 5 stars out of 5. Daniel Da Costa on Motley Fool thinks this is bargain basement stock. Christopher Liew on Motley Fool says this stock is soaring in 2023 and has an attractive dividend. The company put out a press release on Newswire about their 2022 year end results. The company put out a press release on Newswire amount their second quarter of 2023 results.

Simply Wall Street via Yahoo Finance seems rather negative on this stock. However, they do give the stock 4 stars out of 5. Simply Wall Street had one warning on this stock of dividend of 3.62% is not well covered by earnings or cash flows. Simply Wall Street is generally talking about FCF.

K-Bro Linen Inc is a healthcare and hospitality laundry and linen processor in Canada. It operates through two divisions, which are the Canadian division and the United Kingdom division. Its web site is here K-Bro Linen Inc.

The last stock I wrote about was about was Granite REIT (TSX-GRT.UN, NYSE-GRP.U) ... learn more learn more. The next stock I will write about will be BRP Inc (TSX-DOO, OTC-DOOO) ... learn more on Wednesday, September 27, 2023 around 5 pm. Tomorrow on my other blog I will write about Yield and Cost Covered.... learn more on Tuesday, September 26, 2023 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. 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.

Granite REIT

Sound bite for Twitter and StockTwits is: Dividend Growth REIT. Results of stock price testing is that the stock price is probably still reasonable, but perhaps at the high end of that range. Debt Ratios are fine. The Dividend Payout Ratios (DPR) are fine. The current dividend yield is moderate with dividend growth low See my spreadsheet on Granite REIT .

Is it a good company at a reasonable price? This company as a REIT has done better than it did when I owned it as a real estate company and part of Magna. REITs can provide good income and this is a major reason to buy them. The yield is reasonable at 4.31% currently and as you can see from the chart below, if you bought the stock at the current price of $74.20, in 10 years you would be earning 6.11% in yield and have covered 41.69% of the cost of the stock if increases continue at 3.55%. The price could still be reasonable, but it is probably at the high end of the reasonableness range.

Div Pd	Div Yield	Years	At IRR	Div Cov
$3.81	5.13%	5	3.55%	23.15%
$4.53	6.11%	10	3.55%	41.69%
$5.40	7.27%	15	3.55%	72.26%

I do not own this stock of Granite REIT (TSX-GRT.UN, NYSE-GRP.U), but I used to. I first bought some of this stock in 2003 when it was called MI Developments (TSX-MIM.A). It was a company connected with Frank Stronach and Magna. TD bank also had an Action Buy Call (Strong Buy) on this stock. By the December 2006, it was doing well and my stock was up some 15% per year. I bought some more. The year of 2006 was the last time I did well on this stock. It kept going down and I sold it in 2009; being discourage it would ever do well again. However, it has done well for shareholders over the past 10 years. See below.

When I was updating my spreadsheet, I noticed the Liquidity Ratio is very low. It is 0.44 at the end of 2022 and 0.30 at the end of June 2023. However, the debt is due later in the year and the company does have options about it at that time. If you take into account the debt due later this year then the ratio becomes 1.61.

Also, this stock hit a high in 2021 and is down by 34% between the end of 2021 and 2022. Stock is up a bit, year to date by some 8.7%. So, at the end of 2021 stock price was $105.40 CDN$, at the end of 2022 at $69.08 CDN$ and currently is at $75.07 CDN$. Compare the total returns to the end of 2021 below in CDN$ to those further down of the total returns to the end of 2022.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2016	5	4.54%	23.60%	18.65%	4.95%
2011	10	13.89%	17.29%	12.45%	4.84%
2006	15	10.20%	9.05%	6.38%	2.68%
2002	19	10.91%	10.10%	7.47%	2.62%

If you had invested in this company in December 2012, for $1,019.52 you would have bought 27 shares at $37.76 per share. In December 2022, after 10 years you would have received $737.93 in dividends. The stock would be worth $1,865.16. Your total return would have been $2,603.09. This is a total return would be a loss of 11.70% per year with 6.23% from capital gain and 5.47% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$37.76	$1,019.52	27	10	$737.93	$1,865.16	$2,603.09

The current dividend yield is moderate with dividend growth low. The dividend yield is moderate (2% to 4% ranges) at 4.26%. The 5 year median and historical median dividend yields are also moderate at 4.56% and 4.17%. The 10 year median dividend yield is good (5% to 6% ranges) at 5.30%. The dividend growth is low (below 8%) at 3.6% per year over the past 5 years. The last dividend increase was in 2023 and it was for 3.25%.

The Dividend Payout Ratios (DPR) are fine. The DPR for 2022 for Earnings per Share (EPS) is 130% with 5 year coverage at 84%. I do not know what the DPR for EPS will be next year as the 12 months EPS is negative. However, for a REIT, the DPR for AFFO and FFO is the most important ones. The DPR for 2022 for Adjusted Funds from Operations (AFFO) is 77% with 5 year coverage at 81%. The DPR for 2022 for Funds from Operations (FFO) is 70% with 5 year coverage at 74%. Both the AFFO and FFO DPRs are fine.

The DPR for 2022 for Cash Flow per Share (CFPS) is 56% with 5 year coverage at 68% and this is fine. The DPR for 2022 for Free Cash Flow (FCF) is 49% with 5 year coverage at 64% and this is fine.

Item	Cur	5 Years
EPS	129.94%	83.61%
AFFO	76.53%	80.80%
FFO	69.81%	74.07%
CFPS	56.71%	68.23%
FCF	49.42%	64.48%

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio is good for 2022 at 0.59 and 0.64 currently. The Liquidity Ratio is low at 2022 at 0.44. If you add in Cash Flow after dividends, it is just 0.57. This means that the current assets cannot cover the current liabilities, that is when this ratio is below 1.00 and it is best at 1.50. The Debt Ratio for 2022 is good at 2.44. The Leverage and Debt/Equity Ratios for 2022 is good at 1.69 and 0.69.

Type	Year End	Ratio Curr
Lg Term R	0.59	0.64
Intang/GW	0.00	0.00
Liquidity	0.44	0.30
Liq. + CF	0.57	0.47
Liq. CF Dt	1.61	1.81
Debt Ratio	2.44	2.42
Leverage	1.69	1.70
D/E Ratio	0.69	0.70

The Total Return per year is shown below for years of 5 to 20 to the end of 2022 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.
2017	5	3.55%	12.65%	7.00%	5.65%
2012	10	4.48%	11.70%	6.23%	5.47%
2007	15	11.66%	10.69%	6.27%	4.42%
2002	20	10.50%	8.22%	4.85%	3.37%

The Total Return per year is shown below for years of 5 to 20 to the end of 2022 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.
2017	5	1.97%	11.04%	5.46%	5.57%
2012	10	1.34%	7.87%	2.98%	4.89%
2007	15	9.34%	8.37%	4.11%	4.26%
2002	20	10.22%	9.72%	5.66%	4.06%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 5.42, 7.87 and 8.85. The current P/E Ratio is negative for the last 12 months so, I cannot do any testing with this.

I have Adjusted Funds from Operations, (AFFO) data. The 5-year low, median, and high median Price/ Adjusted Funds from Operations Ratios are 15.93, 17.51 and 20.91. The corresponding 10 year ratios are 12.26, 15.67 and 17.92. The current P/AFFO Ratio is 16.75 based on 2023 estimate for AFFO of $4.43 and a stock price of $74.20. This ratio is between the median and low ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I have Funds from Operations, (AFFO) data. The 5-year low, median, and high median Price/ Funds from Operations Ratios are 14.53, 16.95 and 20.01. The corresponding 10 year ratios are 12.37, 14.53 and 15.78. The current P/AFFO Ratio is 14.9375 based on 2023 estimate for FFO of $4.97 and a stock price of $74.20. This ratio is between the median and low 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 $97.06. The 10-year low, median, and high median Price/Graham Price Ratios are 0.71, 0.79 and 0.88. The current P/GP Ratio is 0.76 based on a stock price $74.20. The current ratio is between the median and low 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 1.05. The current P/B Ratio is 0.88 based on a stock price of $74.20, Book Value of $5,367M and Book Value per Share of $84.25. The current ratio is 16% 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 15.20. The current ratio is 15.99 based on Cash Flow for the last 12 months of $295.66, Cash Flow per Share of $4.64 and a stock price of $74.20. The current ratio is 5% 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 4.17%. The current dividend yield is 4.31% based on a dividend of $3.2004, and a stock price of $74.20. The current dividend yield is 3% 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 5.30%. The current dividend yield is 4.31% based on a dividend of $3.2004, and a stock price of $74.20. The current dividend yield is 19% 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 9.91. The current P/S Ratio is 9.00 based on a stock price of $74.20 and Revenue estimate for 2023 of $525M, Revenue per Share of $8.24 and a stock price of $74.20. The current ratio is 9% 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 still reasonable, but perhaps at the high end of that range. Most of the testing is suggesting that the stock price is reasonable, but I not think that we can ignore the 10 year median yield test which is suggesting the at the stock price is still reasonable but at the high end of the reasonableness range.

When I look at analysts’ recommendations, I find Strong Buy (5) and Buy (6). The consensus would be a Strong Buy. The 12 months stock price consensus is $94.55. This implies a total return of $31.74 based on a stock price of $74.20 with 27.43% from capital gains and 4.31% from dividends.

Last year when I look at analysts’ recommendations, I found Strong Buy (5) and Buy (6). The consensus would be a Strong Buy. The 12 months stock price consensus is $97.64. This implies a total return of 46.72% with 42.21% from capital gains and 4.51% from dividends based on a stock price of $68.66. What happened was a stock price move to $74.20 for a total return of 12.58% with 8.07% from capital gains and 4.51% from dividends.

Last year I said that the results of stock price testings were that the stock price is reasonable. It also seems to be above the median. Both the dividend yield tests say this and it is confirmed by the P/S Ratio test. The P/AFFO and P/FFO tests are also showing a reasonable, but above the median results and these, for REITs, are better tests than a P/E Ratio test. It would seem that last year the stock price was reasonable and shareholders got a reasonable return.

Most analysts on Stock Chase think this stock is a buy. This stock is on the Maple Money list and the Aristocrat list, but not on the Money Sense List. Money Sense has no REITs. Stock Chase gives this stock 4 stars out of 5. Amy Legate-Wolfe on Motley Fool thinks that industrial REITs are a great option. Kay Ng on Motley Fool thinks this stock is great for passive income. The company put out a press release on Business Wire about their results for 2022. The company put out a press release on Business Wire about their second quarter of 2023 results.

Zacks Equity Research via Yahoo Finance review this stock. Simply Wall Street gives this stock 3 and one half stars out of 5. Simply Wall Street has one warning of debt is not well covered by operating cash flow

Granite Real Estate Investment Trust, or Granite, is a real estate investment trust engaged in the acquisition, development, ownership, and management of logistics, warehouse and industrial properties in North America and Europe. The vast majority of the company's assets are logistics and distribution warehouses and multipurpose buildings split fairly evenly amongst Canadian, Austrian, and U.S. locations. The company's tenant is Magna International, an automotive parts and systems manufacturer, which accounts for the majority of Granite's lease income. Its web site is here Granite REIT.

The last stock I wrote about was about was Great-West Lifeco Inc (TSX-GWO, OTC-GWLIF) ...learn more. The next stock I will write about will be K-Bro Linen Inc (TSX-KBL, OTC-KBRLF) ... learn more on Monday, September 25, 2023 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. 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.

Great-West Lifeco Inc

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

Is it a good company at a reasonable price? I would not buy this company because I own Power Corp, which owns this company. A negative is that it has not always produced an 8% total return. I would personally like a cheap price because of this and the price is only reasonable. I expect that the company will do better in the future and in the mean time you get a good dividend yield. So, that is suggesting to buy for passive income. Stock price testing is suggesting the stock price is reasonable.

I do not own this stock of Great-West Lifeco Inc (TSX-GWO, OTC-GWLIF). This stock seems to be a favorite with investors who like solid, stable, dividend paying stock. It was on Mike Higgs' list and it used to be on the dividend lists. I have been following this stock for some time. However, I will not buy it because I have Power Corp. (TSX-POW). Great West Lifeco Inc. is one of the companies under Power Corp. (TSX-POW).

When I was updating my spreadsheet, I noticed the company sold Putnam Investments. This seems to be affecting Revenue and earnings, according to the second quarter of 2023. It is really hard to tell how much until I see the annual report for 2023. Some estimate for 2023 and 2024 seems to take this into account and others do not. But it would appear that Revenue will drop from some $44B to $10B. See the Press Release.

Earnings per Share does not seem to be affected that much with estimate at $3.82, with a low of $3.71 and high of $3.87. The EPS for 2022 was $3.36. The sale does not appear to have affected the dividend. Analysts expect the dividend to continue to increase.

If you had invested in this company in December 2012, for $1,022.70 you would have bought 42 shares at $24.35 per share. In December 2022, after 10 years you would have received $644.28 in dividends. The stock would be worth $1,314.60. Your total return would have been $1,958.88. This is a total return would be a loss of 8.05% per year with 2.54% from capital gain and 5.51% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$24.35	$1,022.70	42	10	$644.28	$1,314.60	$1,958.88

If you had invested in this company in December 1992, for $1,008.68 you would have bought 538 shares at $1.86 per share (taking into consideration stock splits). In December 2022, after 30 years you would have received $14,952.37 in dividends. The stock would be worth $16,839.40. Your total return would have been $31,791.77. This is a total return would be a capital gain of 18.68% per year with 9.87% from capital loss and 8.81% from dividends.

I doubt over the next 30 years investors will earn the same as dividend increases and capital gain increases have greatly slowed over the past 30 years.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$1.86	$1,008.68	538	30	$14,952.37	$16,839.40	$31,791.77

If you had invested in this company in December 2007, for $1,31.53 you would have bought 29 shares at $35.57 per share. In December 2022, after 15 years you would have received $622.34 in dividends. The stock would be worth $907.70. Your total return would have been $1,530.04. This is a total return would be a loss of 3.80% per year with 0.85% from capital loss and 4.15% from dividends.

Insurance companies were harmed by a long period of very low interest rates. Investors should do better in the present with better interest rates than they have in the recent past. People who did stay with this company got good dividends. The main reason for the low return is that the stock price in 2007 hit a high that it did not hit again until 2017. This shows up in the high P/S Ratio score of 1.23, when at that time the 10 year median was 0.77. The P/S Ratio of 1.23 is 60% above the median of 0.90.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$35.57	$1,031.53	29	15	$622.34	$907.70	$1,530.04

The current dividend yield is good with dividend growth low. The current dividend yield is good (5% to 6% rates) at 5.06%. The 5 year median yield is also good at 5.35%. The 10 year and historical median dividend yields are moderate (2% to 4% ranges) at 4.62% and 3.79%. The dividend growth is low (below 8% per year) at 5.95% per year over the past 5 years.

The Dividend Payout Ratios (DPR) are good. The DPR for 2022 for Earnings per Share (EPS) is 58% with 5 year coverage at 57%. The DPR for 2022 for Adjusted Earnings per Share (AEPS) is 57% with 5 year coverage at 56%. The DPR for 2022 for Cash Flow per Share (CFPS) is 26% with 5 year coverage at 21%. The DPR for 2022 for Free Cash Flow (FCF) is 23% with 5 year coverage at 20%.

Item	Cur	5 Years
EPS	58.33%	56.72%
AEPS	56.78%	55.60%
CFPS	25.92%	20.66%
FCF	23.06%	20.12%

Debt Ratios are fine. Financials are looked at differently that other companies and this depends on what type of financial the company is. For this company it is the Long Term Debt/Covering Assets Ratio that is important and for 2022 it is 0.89 and the current one is 0.95. This need to be less than 1.00. The other important one is Debt Ratio. For this company it is 1.05 at the end of 2022 and 1.04 currently. For this ratio 1.04 or higher is fine.

Type	Year End	Ratio Curr
Lg Term R	8.49	5.92
Lg Term A	0.89	0.95
Intang/GW	0.58	0.39
Liquidity	1.20	1.21
Liq. + CF	1.63	1.29
Debt Ratio	1.05	1.04
Leverage	21.70	23.98
D/E Ratio	20.70	22.98

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	5.95%	2.91%	-2.27%	5.18%
2012	10	4.77%	8.05%	2.54%	5.51%
2007	15	4.18%	3.30%	-0.85%	4.15%
2002	20	7.37%	7.39%	2.46%	4.92%
1997	25	9.90%	10.20%	4.83%	5.37%
1992	30	12.17%	18.68%	9.87%	8.81%
1988	34	10.67%	16.46%	9.35%	7.12%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 8.69, 10.42 and 11.86. The corresponding 10 year ratios are 10.80, 12.36 and 13.43. The corresponding historical ratios are 8.26, 12.39 and 17.25. The current P/E Ratio is 12.92 based on a stock price of $41.10 and EPS estimate for 2023 of $3.18. 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 8.34, 10.14 and 11.97. The corresponding 10 year ratios are 10.10, 11.58 and 12.78. The current P/AEPS Ratio is 10.76 based on a stock price of $41.10 and AEPS estimate for 2023 of $3.82. 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 get a Graham Price of $42.14. The 10-year low, median, and high median Price/Graham Price Ratios are 0.80, 0.90 and 0.99. The current P/GP Ratio is 0.89 based on a stock price of $41.10. 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 1.57. The current ratio is 1.66 based on a Book Value of $23,128M, Book Value per Share of $24.82 and a stock price of $41.10. The current ratio is 5% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I also have a Book Value per Share estimate for 2023 of $24.10. This implies a Book Value of $22,458M and a P/B Ratio of 1.71 based on a stock price of $41.10. The current ratio is 8% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a 10-year median Price/Cash Flow per Share Ratio of 4.98. The current P/CF Ratio is 14.29 based on Cash Flow for last 12 months of $2,681 and a stock price of $41.10. The current ratio is 187% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. The Cash Flow is unusually low because of a negative cash flow for the second quarter of 2023.

Looking at Cash Flow excluding Working Capital, you get the opposite result. I get a 10-year median Price/Cash Flow per Share Ratio of 4.88. The current P/CF Ratio is 0.88 based on Cash Flow excluding WC for last 12 months of $43,415 and a stock price of $41.10. The current ratio is 82% 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 3.79%. The current dividend yield is 5.06% based on dividends of $2.08 and a stock price of $41.10. The current yield is 34% 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 4.62%. The current dividend yield is 5.06% based on dividends of $2.08 and a stock price of $41.10. The current yield is 9% above the historical 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 0.73. The current P/S Ratio is 0.57 based on Revenue estimate for 2023 of $67,301M, Revenue per Share of $72.22 and a stock price of $41.10. The current ratio is 22% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This may not be a valid test.

There is a problem with Revenue. I am taking the average estimate, but range starts at $10,150M. Great West sold Putnam Investments and this together with accounting changes seems to be pointing to a big reduction in Revenue, or a big change in Revenue measurement. The Quarter 2 results for 2023 seem to point to an increase revenue between June 2022 and June 2023 in how they are now calculating revenue. However, I do not have enough data to come to any conclusions about how the P/S Ratio is changing.

Results of stock price testing is that the stock price is probably reasonable. The 10 year median dividend test points to this. Another good valid test here is the P/GP test and this points to a reasonable price.

When I look at analysts’ recommendations, I find Hold (9) and Underperform (1). The consensus would be a Hold. The 12 months stock price is $41.20. This implies a total return of 5.30% with 0.24% from capital gains and 5.06% from dividends.

Few analysts on Stock Chase like this stock. Some say they prefer banks to Life Insurance companies, others that they like Manulife (TSX-MFC) better. Stock Chase gives this stock 5 stars out of 5. It is on all the dividend lists I follow of Money Sense, Maple Money, and Aristocrats. Christopher Liew on Motley Fool says this is a high recommended Wealthsimple stock. Ambrose O'Callaghan on Motley Fool says this is a red hot TSX stock to own this summer. The company put out a Press Release for their 2022 year end results. The company put out a press release on Newswire about their results for the second quarter of 2023.

Simply Wall Street on Yahoo Finance look at this stock and its dividend. Simply Wall Street puts out one warning of profit margins (4.2%) are lower than last year (8.7%) for this stock. Simply Wall Street gives this stock 3 and one half star out of 5.

Great-West Lifeco provides life insurance, health insurance, retirement products, asset management, recordkeeping services, and reinsurance products in Canada, the United States, and Europe. The Canada business has leading market positions in group insurance, group retirement, and individual insurance. The company operates the second-largest recordkeeping business under the Empower brand in the United States. Great-West Lifeco also offers various products across Europe markets with a strong presence in the U.K., Ireland, and Germany. Its web site is here Great-West Lifeco Inc.

The last stock I wrote about was about was Trican Well Service Ltd (TSX-TCW, OTC-TOLWF) ... learn more. The next stock I will write about will be Granite REIT (TSX-GRT.UN, NYSE-GRP.U) ... learn more on Friday, September 22, 2023 around 5 pm. Tomorrow on my other blog I will write about Accounts I Have .... learn more on Thursday, September 21, 2023 around 5 pm.

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