Is it a good company at a reasonable price? I own this stock, but it has been bought with my fooling around money. Such companies you should not invest in with money you cannot afford to lose. I prefer dividend growth companies, and this is just dividend paying, but I am betting on a good future. It is not ye
I own this stock of Titanium Transportation Group Inc (TSX-TTNM, OTC-TTNMF). I found this stock on a blog of Our Life Financial website that seems to have disappeared. The are on X (or Twitter) at @rlifefinancial.
When I was updating my spreadsheet, I noticed that the company has had good growth, but the stock price has the lowest growth.
| Year | Item | Tot. Growth | Per Year |
|---|---|---|---|
| 5 | Revenue Growth | 283.05% | 30.81% |
| 5 | AEPS Growth | 1035.28% | 62.56% |
| 5 | Net Income Growth | 905.77% | 58.67% |
| 5 | Cash Flow Growth | 345.28% | 34.81% |
| 2 | Dividend Growth | 300.00% | 100.00% |
| 5 | Stock Price Growth | 152.08% | 20.31% |
| 8 | Revenue Growth | 591.93% | 21.34% |
| 4 | AEPS Growth | 265.27% | 38.25% |
| 8 | Net Income Growth | 467.16% | 18.95% |
| 8 | Cash Flow Growth | 1676.14% | 33.34% |
| 2 | Dividend Growth | 300.00% | 100.00% |
| 8 | Stock Price Growth | 60.13% | 4.82% |
If you had invested in this company in December 2014, for $1,000.48 you would have bought 662 shares at $1.15 per share. In December 2022, after 8 years you would have received $119.16.71 in dividends. The stock would be worth $1,602.16. Your total return would have been $1,721.20. This is a total return would be 7.06% per year with 6.06% from capital gains and 1.00% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $1.51 | $1,000.48 | 662 | 8 | $119.16 | $1,602.04 | $1,721.20 |
The current dividend yield is moderate with dividend growth non-existent. The dividend yield is moderate (2% to 4% ranges) at 3.02%. Dividends have only been paid for 3 years, so we only have one median dividend yield which is 2.42%. Dividend growth looks high but that is because only one dividend payment was paid in 2020, but 4 dividend payments are being currently made.
The Dividend Payout Ratios (DPR) are good. The DPR for 2022 for Earnings per Share (ESP) is 15% with 5 year coverage at 17%. The DPR for 2022 Adjusted Earnings per Share (AESP) is 15% with 5 year coverage at 19%. The DPR for 2022 Cash Flor per Share (CFPS) is 7% with 5 year coverage at 5%. The DPR for 2022 Free Cash Flow (FCF) is negative with 5 year coverage at 24%.
With this stock, the 5 year coverage is a little different than usual, because dividends have been paid for only 3 years. For example, for EPS, the 5 year coverage show how much of the EPS each year would have been paid looking at average EPS per year over the 5 year period ($0.21) and average dividend paid per year ($0.04) if paid over 5 years.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 14.55% | 17.31% |
| AEPS | 14.55% | 18.62% |
| CFPS | 7.67% | 5.35% |
| FCF | -13.34% | 23.85% |
Debt Ratios are fine. The Long Term Debt/Market Cap Ratio is a bit high but fine at 0.63. The Liquidity Ratio is a bit low at 1.40, but add in Cash Flow after dividends it is good at 1.90. The Debt Ratio is good at 1.54. The Leverage Debt/Equity Ratios are fine at 2.86 and 1.86 respectively.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.63 | 0.71 |
| Intang/GW | 0.09 | 0.08 |
| Liquidity | 1.40 | 1.45 |
| Liq. + CF | 1.90 | 2.01 |
| Debt Ratio | 1.54 | 1.52 |
| Leverage | 2.86 | 2.94 |
| D/E Ratio | 1.86 | 1.94 |
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 | 0.00% | 22.31% | 20.31% | 2.00% |
| 2014 | 8 | 0.00% | 7.06% | 6.06% | 1.00% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 6.47, 10.56 and 14.65. The corresponding 8 year ratios are 5.86, 10.00 and 14.14. The corresponding historical ratios are 5.86, 10.00 and 14.14. The current P/E Ratio is 14.88 based on a stock price of $2.78 and EPS estimate for 2023 of $0.24. The current ratio is above the high ratio of the 8 year median ratios. This stock price testing suggests that the stock price is relatively expensive. However, a P/E Ratio of 14.88 is not a very high P/E Ratio. Also, P/E Ratios are low because of earning losses in a number of years.
I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Earnings per Share Ratios are 6.55, 10.69 and 14.83. The corresponding 8 year ratios are 19.74, 23.63 and 27.51. The current P/AEPS Ratio is 10.69 based on AEPS estimate for 2023 of $0.26 and a stock price of $2.78. The current ratio is below the low ratio of the 8 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I get a Graham Price of $3.66. The 8-year low, median, and high median Price/Graham Price Ratios are 0.97, 1.24 and 1.49. The current P/GP Ratio is 0.76 based on a stock price of $2.78. The current ratio is below the low ratio of the 8 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I get an 8-year median Price/Book Value per Share Ratio of 1.40. The current P/B Ratio is 1.21 based on a Book Value f $102.9M, Book Value per Share of $2.29 and a stock price of $2.78. The current ratio is 13% below the 8 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 $2.36. This implies a Book Value of $105.2M and a P/B Ratio of 1.18 based on a stock price of $2.78. This ratio is 16% below the 8 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get an 8-year median Price/Cash Flow per Share Ratio of 4.16. The current P/CF Ratio is 2.37 based on Cash Flow for the past 12 months of $52.7M, Cash Flow per Share of $1.17 and a stock price of $2.78. The current ratio is 43% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I get a 3-year median and historical median dividend yield of 2.42%. The current dividend yield is 2.88% based on dividends of $0.08 and a stock price of $2.78. The current dividend yield is 19% above the 3 year and historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median. Problem is that the dividend has been flat since it was started in 2020.
The 8-year median Price/Sales (Revenue) Ratio is 0.33. The current P/S Ratio is 0.31 based on a stock price of $2.78, Revenue estimate for 2023 of $455M and Revenue per Share of $10.12. The current ratio is 16% below the 8 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 and below the median. All the valid tests are showing the stock price as reasonable or cheap.
When I look at analysts’ recommendations, I find Strong Buy (4) and Buy (3). The consensus is a Strong Buy. The 12 months stock price consensus is $5.586, with the highest being $7.00 and lowest $4.50. The consensus stock price of $5.586 implies a total return of 103.81% with 100.94% from capital gains and 2.88% from dividends.
The last analyst’s remark was in 2021 on Stock Chase and it says it is watching this stock. Stock Chase gives this stock 1 star out of 5. It is not on any dividend list of stocks I follow. See an interview of Power Play with the company’s CEO via Stockhouse. The company put out a press release on Globe Newswire about their results for 2022. The company put out a press release on Newswire about their second quarter results for 2023.
Simply Wall Street gives this stock 3 stars out of 5. They give 4 warnings of earnings are forecast to decline by an average of 4.8% per year for the next 3 years; high level of non-cash earnings; has a high level of debt; and dividend of 3.02% is not well covered.
Titanium Transportation Group Inc is assets-based transportation and logistics firm. Most of its revenue is earned through the Truck transportation segment. The group has a business presence in Canada and the United States. Its web site is here Titanium Transportation Group Inc.
The last stock I wrote about was about was High Liner Foods (TSX-HLF, OTC-HLNFF) ... learn more. The next stock I will write about will be SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF) ... learn more on Wednesday, September 6, 2023 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks September 2023.... learn more on Tuesday, September 5, 2023 around 5 pm.
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