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? With dividend stocks for the long term, you can often do better with a low dividend, but nice increases. With this stock you probably have to be careful at the price that you pay because it seems to be cyclical. Five years total return at 8.36% is a lot higher than the 10 years return at 4.78%. It is currently testing as relatively cheap.

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 that they had a good year in 2023 and also the first two quarters of 2024. Revenue, earnings, and cash flow have all gone up. Insiders are also buying.

If you had invested in this company in December 2013, for $1,016.37 you would have bought 23 shares at $44.19 per share. In December 2023, after 10 years you would have received $123.28 in dividends. The stock would be worth $1,472.46. Your total return would have been $1,595.74. This would be a total return of 4.78% per year with 3.78% from capital gain and 1.00% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$44.19	$1,016.37	23	10	$123.28	$1,472.46	$1,595.74

The current dividend yield is low with dividend growth moderate. The dividend yield is low (below 2%) at 1.59%. The 5, 10 and historical median dividend yields are also low at 1.07%, 0.78% and 1.20%. The dividend growth is moderate (between 8% and 14% per year) at 12.9% per year over the last 5 years. The last dividend increase was in 2024 and it was for 14%.

The Dividend Payout Ratios (DPR) are good. The DPR for 2023 for Earnings per Share (EPS) is good at 11% with 5 year coverage at 10%. The DPR for 2023 for Adjusted Earnings per Share (AEPS) is good at 10% with 5 year coverage at 10%. The DPR for 2023 for Cash Flow per Share (CFPS) is good at 5% with 5 year coverage at 5%. The DPR for 2023 for Free Cash Flow (FCF) is good at 34% with 5 year coverage at 8%. However, for the sites I looked at, none agree on what the FCF is.

Item	Cur	5 Years
EPS	10.77%	9.98%
AEPS	10.02%	9.50%
CFPS	5.41%	4.63%
FCF	33.84%	7.84%

Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2023 is good at 0.44 and currently at 0.14. The Liquidity Ratio for 2023 is good at 1.59 and a bit low at 1.32 currently. If you added in Cash Flow after dividends, the ratios are fine at 1.88 and currently at 1.60. The Debt Ratio for 2023 is good at 2.18 and 2.34 currently. The Leverage and Debt/Equity Ratios for 2023 are good at 1.85 and 0.85 and currently at 1.75 and 0.75.

Type	Year End	Ratio Curr
Lg Term R	0.44	0.14
Intang/GW	0.50	0.46
Liquidity	1.59	1.32
Liq. + CF	1.88	1.60
Debt Ratio	2.18	2.34
Leverage	1.85	1.75
D/E Ratio	0.85	0.75

The Total Return per year is shown below for years of 5 to 35 to the end of 2023. 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.
2018	5	12.89%	8.36%	7.16%	1.20%
2013	10	10.65%	4.78%	3.78%	1.00%
2008	15	9.05%	24.25%	20.93%	3.32%
2003	20	8.90%	10.31%	8.94%	1.37%
1998	25	7.73%	4.44%	3.67%	0.77%
1993	30	8.34%	9.30%	8.02%	1.28%
1988	35		15.05%	12.75%	2.30%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 6.96, 9.58 and 12.17. The corresponding 10 year ratios are 6.80, 8.92 and 10.92. The corresponding historical ratios are 8.26, 11.55 and 15.03. The current ratio is 6.73 based on a stock price of $63.90 and EPS estimate for 2024 of $9.50. 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/Earnings per Share Ratios are 6.47, 9.93 and 12.96. The corresponding 10 year ratios are 6.55, 9.03 and 11.30. The current ratio is 6.25 based on a stock price of $63.90 and AEPS estimate for 2024 of $10.22. 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 $131.09. The 10-year low, median, and high median Price/Graham Price Ratios are 0.48, 0.65 and 0.84. The current ratio is 0.49 based on a stock price of $63.90. 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 1.06. The current ratio is 0.86 based on a Book Value of $4,602M, Book Value per Share of $74.74 and a stock price of $63.90. The current ratio is 19.5% below 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/Cash Flow per Share Ratio of 5.59. The current P/CF Ratio is 3.73 based on a stock price of $63.90, Cash Flow per Share estimate for 2024 of 14.68 and Cash Flow of $794M. 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 1.20%. The current dividend yield is 1.56% based on dividends of $1.00 and a stock price of $63.90. The current dividend yield is 30% 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 0.78%. The current dividend yield is 1.56% based on dividends of $1.00 and a stock price of $63.90. The current dividend yield is 101% 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 0.59. The current P/S Ratio is 0.36 based on Revenue estimate for 2024 of $10,870M, Revenue per Share of $176.52 and a stock price of $63.90. The current ratio is 38% 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. The P/S Ratio test confirms this. The rest of the testing is showing either as cheap or reasonable, but even the reasonable tests are getting close to showing the stock price as cheap.

When I look at analysts’ recommendations, I find Strong Buy (3), Buy (2) and Hold (1). The consensus would be a Strong Buy. The 12 month consensus stock price is $83.17 with a high of $89.00 and low of $74.00. The consensus stock price of $83.17 implies a total return of 31.75% with 30.16% from capital gains and 1.56% from dividends.

In 2024, some analyst on Stock Chase like this stock and some do not. The ones that do not say be careful because the stock is cyclical. Stock Chase gives this stock 4 stars out of 5. Kay Ng on Motley Fool says Linamar is a better buy than Magna. Joey Frenette on Motley Fool says buy this stock while it is cheap. The company put out a press release via Newswire about their fourth quarter of 2023. The company put out a press release via Newswire about their second quarter of 2024.

Simply Wall Street via Yahoo Finance reviews this stock. Simply Wall Street has no warnings out on this stock. Simply Wall Street gives this stock 4 stars out of 5.

Linamar Corp is a diversified global manufacturing company of highly engineered products. The Company's Industrial segment operates the Skyjack and MacDon brands. It manufactures products for the Aerial Work Platform and Agricultural industries, respectively. 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 Wednesday, October 2, 2024 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks October 2024 learn more on Tuesday, October 1, 2024 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. Results of stock price testing is that the stock price is probably reasonable and maybe cheap. Debt Ratios show relatively high debt, but Liquidity and 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 BRP Inc.

Is it a good company at a reasonable price? It would seem that most people expect this company to do well over the long term and the current situation is just a temporary setback. They could very well be right. However, investing in this company could also be risky and it is best not to invest money in it that you cannot afford to lose. The dividend testing is pointing to a current cheap stock price. It could be correct if their problems are rather short term. However, it is never possible to know ahead of time how markets will turn out.

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 Revenue is down 13% so far this year (second quarter). Revenue is expected to be down by 24% this year. According to a recent TD Cowen report, the problem is declining retail demand. With lower revenue came also lower earnings and cash flow. This company has a fiscal year end of January 31 each year, so I am reviewing January 31, 2024.

In the chart below, I am showing 5 and 10 year total growth and per year growth in columns 3 and 4. Column 5 shows growth expected over 12 months to the second quarter in 2024 and expected growth over this year. You can see from the chart below that most items are expected to decline this year and have declined over the 12 month period to the end of the second quarter.

Yr	Item	Tot. Gwth	Per Year	Gwth	Coverage
5	Revenue Growth	97.70%	14.60%	-12.87%	<-12 mths
5	AEPS Growth	258.39%	29.08%	-36.18%	<-12 mths
5	Net Income Growth	227.49%	26.78%	-66.30%	<-12 mths
5	Cash Flow Growth	195.46%	24.19%	-29.87%	<-12 mths
5	Dividend Growth	100.00%	14.87%	16.67%	<-12 mths
5	Stock Price Growth	124.33%	17.54%	-1.60%	<-12 mths
10	Revenue Growth	224.57%	12.49%	-23.83%	<-this year
10	AEPS Growth	648.63%	22.30%	-72.64%	<-this year
10	Net Income Growth	1145.64%	28.69%	-85.49%	<-this year
10	Cash Flow Growth	671.93%	22.68%	-60.55%	<-this year
6	Dividend Growth	125.00%	0.00%	14.03%	<-this year
10	Stock Price Growth	202.89%	11.72%	11.78%	<-this year

If you had invested in this company in December 2013, for $1,016.82 you would have bought 42 shares at $24.21 per share. In December 2023, after 10 years you would have received $125.58 in dividends. The stock would be worth $3,982.44. Your total return would have been $4,108.02. This would be a total return of 12.61% per year with 12.14% from capital gain and 0.47% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$24.21	$1,016.82	42	9	$125.58	$3,982.44	$4,108.02

The current dividend yield is low with dividend growth moderate. The current dividend yield is low (below 2%) at 1.02%. The 5 and 6 year median dividend yields are also low at 0.69% and 0.69%. The dividend growth is moderate (8% to 14% ranges) at 14.9% per year over the past 5 years. The last dividend increase was good (15% and above) at 16.7%.

The Dividend Payout Ratios (DPR) are good. The DPR for 2023 for Earnings per Share (EPS) is good at 8% with 5 year coverage at 6%. The DPR for 2023 for Adjusted Earnings per Share (AEPS) is good at 6% with 5 year coverage at 6%. The DPR for 2023 for Cash Flow per Share (CFPS) is good at 3% with 5 year coverage at 3%. The DPR for 2023 for Free Cash Flow (FCF) is good at 10% with 5 year coverage at 9%.

Item	Cur	5 Years
EPS	7.60%	6.37%
AEPS	6.48%	5.90%
CFPS	3.20%	2.92%
FCF	9.59%	9.44%

Debt Ratios show relatively high debt, but Liquidity and Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2023 is good at 0.38 and currently at 0.46. The Liquidity Ratio for 2023 is fine at 1.41 and 1.32 currently. If you added in Cash Flow after dividends, the ratios are fine at 1.2.03 and currently at 1.56. The Debt Ratio for 2023 is too low at 1.14 and 1.10 currently. The Leverage and Debt/Equity Ratios for 2023 are far too high at 8.32 and 7.32 and currently at 11.51 and 10.51. The leverage and D/E Ratios are high because this company has had negative book values. This is not a good situation. It implies that the breakup value of the company negative.

Type	Year End	Ratio Curr
Lg Term R	0.38	0.46
Intang/GW	0.09	0.11
Liquidity	1.41	1.32
Liq. + CF	2.03	1.56
Debt Ratio	1.14	1.10
Leverage	8.32	11.51
D/E Ratio	7.32	10.51

The Total Return per year is shown below for years of 5 to 10 to the end of 2023. 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.
2018	5	14.87%	22.68%	21.82%	0.86%
2013	10	14.47%	12.61%	12.14%	0.47%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 8.32, 11.46 and 13.49. The corresponding 10 year ratios are 9.21, 13.18 and 18.16. The corresponding 10 year ratios are 9.42, 14.15 and 19.54. The current P/E Ratio is 56.77 based on a stock price of $82.20 and EPS estimate for 2025 of $1.45. This ratio is above the high ratio for the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive.

I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 7.09, 10.26 and 12.66. The corresponding 10 year ratios are 8.81, 12.07 and 16.88. The current P/AEPS Ratios is 27.04 based on AEPS estimate for 2024 of $3.04 and a stock price of $82.20. This ratio is above the high ratio of the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. A problem is that analysts expect AEPS to drop 73%, from $11.11 in 2024 to $3.04 in 2025.

If we look at the AEPS for the last 12 months, which is $7.09 and a drop of 36%. We get a ratio of 11.59 with the stock price of $82.20. This 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. Certainly, the AEPS is going to drop in 2025 and how far is a question.

I get a Graham Price of $22.79. The 10-year low, median, and high median Price/Graham Price Ratios are 13.23, 29.98 and 39.59. The current ratio is 3.61 based on a stock price of $82.20. This ratio is below the low ratio of the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. Normal Graham Price Ratio is around 1.00. The reason that the ratio here are so high is because the book value has often been very low to negative. Still a ratio of 3.61 is rather high.

I get a 10-year median Price/Book Value per Share Ratio that is negative, so this cannot be used in testing. The current ratio at 10.83 is high where generally a good ratio is around 1.50. There is also a Book Value per Share estimate for 2024 which with a stock price of $82.20 implies a P/B Ratio of 7.16. This is also rather high.

I get a 10-year median Price/Cash Flow per Share Ratio of 7.59. The current P/CF Ratio is 9.17 based on a stock price of $82.20, Cash Flow per Share estimate for 2025 of $8.96 and Cash Flow of $654M. This ratio is 20.9% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I get an historical median dividend yield of 0.69%. The current ratio is 1.02% based on a stock price of $82.20 and dividends of $0.84. This ratio is 48% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap. Note that this company has not lowered its dividend and analysts do not expect that will happen. Also note that dividends have only been paid for 6 years, so the dividend yield of 0.69% is also the dividend yield for 6 year median dividend yield.

The 10-year median Price/Sales (Revenue) Ratio is 0.77. The current P/S Ratio is 0.76 based on Revenue estimate for 2025 of $7,897M, Revenue per Share of $108.18 and a stock price of $82.20. The current ratio is 1.8% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. Note that the Revenue in 2025 is expected to drop around 24%.

Results of stock price testing is that the stock price is probably reasonable and maybe cheap. The thinking being that dividend yield is pointing to the stock being cheap. The P/S Ratio testing is pointing to the stock price as being reasonable. I know that the rest of the testing is generally pointing to the stock as being expensive. Revenue, earnings, and cash flow are all falling, but a lot of analysts seem to think that this temporary.

When I look at analysts’ recommendations, I find Strong Buy (6), Buy (4) and Hold (10). The consensus would be a Buy. The 12 month stock price consensus is $94.83 with a high of $105.00 and low of $82.00. The stock price consensus of $94.83 implies a total return of 16.39% with 15.36% from capital gains and 1.02% from dividends based on a stock price of $82.20.

There are mixed reviews on Stock Chase from analysts and the latest one says Wait. It says there is a softening industry demand. Stock Chase gives this stock 4 stars out of 5. Jitendra Parashar on Motley Fool says on September 10 that BRP took a dive of 6.7% that day. Aditya Raghunath on Motley Fool thinks that this stock is positioned to deliver outsized gains in the coming decade. The company put out a press release on Newswire about their fourth quarter ending January 2024. The company put out a press release via Newswire about their second quarter results for 2025.

Here is an article on Insider Monkey via Yahoo Finance about a bull cash for this company. Simply Wall Street via Yahoo Finance re views this company. Simply Wall Street has 3 warnings on this stock of has a high level of debt; large one-off items impacting financial results; and profit margins (2.8%) are lower than last year (9.1%). Simply Wall Street gives this stock 3 and one half stars out of 5.

BRP designs, develops, manufactures, distributes, and markets snowmobiles, all-terrain vehicles, and personal watercraft. It also builds engines under the Rotax brand and offers clothing, parts, and accessories that cater to its core consumers. It has a marine group, acquiring boat manufacturers Alumacraft, Triton and Telwater (in Australia). At the end of fiscal 2024, the company sold its products 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 Monday, September 30, 2024 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 could be reasonable or cheap. Debt Ratios are fine. The Dividend Payout Ratios (DPR) are fine. 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? A lot of people seem to feel that this company will be doing well in the future. I would think at some point in the future it will again become and dividend growth company, but it is hard to predict when. Analysts do not think this will occur within the next couple of years. It maybe in a rather boring business, but it is in a necessary business. Analyst maybe right that it has a good future coming. I would guess from the results of the P/S Ratio testing that the stock price is relatively 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 this company has been increasing their debt, intangibles, and goodwill. They have been buying other business. See my article on Newswire about them buying Montreal Healthcare Laundry business.

If you had invested in this company in December 2013, for $1,029.60 you would have bought 26 shares at $39.60 per share. In December 2023, after 10 years you would have received $312.00 in dividends. The stock would be worth $858.00. Your total return would have been $1,170.00. This would be a total return of 1.47% per year with 1.81% from capital loss and 3.28% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$39.60	$1,029.60	26	10	$312.00	$858.00	$1,170.00

The current dividend yield is moderate with dividend growth non-existent. The current dividend yield is moderate (2% to 4% ranges) at 3.43%. The 5, 10 and historical median dividend yields are also moderate at 3.43%, 3.11% and 3.80%. However, the dividend yields used to be much higher (8% and 9% etc.) because stock started out as an Income Trust which can and do have very high yields. The yields have been flat since 2014 because of the change from an Income Trust to a Corporation.

The Dividend Payout Ratios (DPR) are fine. The DPR for 2023 for Earnings per Share (EPS) is too high at 73% with 5 year coverage at 143%. The DPR for 2023 for Distributable Cash Flow (DCF) is good at 39% with 5 year coverage at 47%. This is an important one. The DPR for 2023 for Cash Flow per Share (CFPS) is good at 27% with 5 year coverage at 32%. This is also an important ratio. The DPR for 2023 for Free Cash Flow (FCF) is good at 44% with 5 year coverage at 48%. There is some agreement on what FCF, but some values are way off.

Item	Cur	5 Years
EPS	73.17%	142.86%
DCF	39.47%	47.22%
CFPS	27.09%	32.28%
FCF	43.52%	48.09%

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2023 is good at 0.20 and currently at 0.37. The Liquidity Ratio for 2023 is good at 1.73 and 1.80 currently. The Debt Ratio for 2023 is good at 1.92 and 1.67 currently. The Leverage and Debt/Equity Ratios for 2023 are fine at2.09 and 1.09 and currently at 2.50 and 1.50.

Type	Year End	Ratio Curr
Lg Term R	0.20	0.37
Intang/GW	0.17	0.27
Liquidity	1.73	1.80
Liq. + CF	2.22	2.41
Debt Ratio	1.92	1.67
Leverage	2.09	2.50
D/E Ratio	1.09	1.50

The Total Return per year is shown below for years of 5 to 19 to the end of 2023. 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.
2018	5	0.00%	3.34%	-0.26%	3.61%
2013	10	0.18%	1.47%	-1.81%	3.28%
2008	15	0.58%	16.38%	8.49%	7.89%
2004	18	0.85%	12.40%	5.62%	6.78%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 41.67, 49.35 and 70.27. The corresponding 10 year ratios are 36.48, 42.73 and 39.21. The corresponding historical ratios are 20.57, 23.30 and 26.99. The current ratio is 20.00 based on a stock price of $35.00 and EPS estimate for 1.75. This 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 Distributable Cash Flow (DCF) data. The 5-year low, median, and high median Price/Earnings per Share Ratios are 11.51, 13.28 and 15.58. The corresponding 10 year ratios are 13.27, 15.55 and 17.74. The current ratio is 9.23 based on DCF estimate for 2024 of $3.79 and a stock price of $35.00. Thid ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap. (Also note that this company seems to be switching to Adjusted Earnings per Share (AEPS) values.)

I get a Graham Price of $25.66. The 10-year low, median, and high median Price/Graham Price Ratios are 1.95, 2.28 and 2.59. The current P/GP Ratio is 1.36 based on a stock price of $35.00. 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 2.08. The current ratio is 2.09 based on a Book Value of $177.8M, Book Value per Share of $16.72 and a stock price of $35.00. The current ratio is 0.5% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and at the median.

I also have a Book Value per Share estimate for 2024 of $17.08. This implies a ratio of 2.05 based on a stock price of $35.00 and Book Value of $181.7M. This ratio is 1.7% 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 13.79. The current P/CF Ratio is 7.13 based on a stock price of $35.00, Cash Flow of per Share estimate for 2024 of $4.91 and Cash Flow of $52.2M. The current ratio is 48% 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 3.80%. The current ratio is 3.43% based on dividends of $1.20 and a stock price of $35.00. The current dividend yield is 10% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median. Note that this test works best when dividends are increasing and for this stock, dividends are flat.

I get a 10 year median dividend yield of 3.11%. The current ratio is 3.43% based on dividends of $1.20 and a stock price of $35.00. The current dividend yield is 10% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median. Note that this test works best when dividends are increasing and for this stock, dividends are flat.

The 10-year median Price/Sales (Revenue) Ratio is 1.91. The current ratio is 1.01 based on Revenue estimate for 2024 of $367.2M, Revenue per Share of $34.53 and a stock price of 35.00. The current ratio is 47% 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 could be reasonable or cheap. The 10 year dividend yield testing is showing the stock price as reasonable and below the median. However, this is not generally a good test when dividends are flat. The P/S Ratio testing is showing the stock price as cheap. This is why I think that the stock price could be cheap. A lot of the testing is showing the stock price as relatively cheap, but some also show the price as reasonable.

When I look at analysts’ recommendations, I find Strong Buy (3), and Buy (3). The consensus is a Strong Buy. The 12 month stock price consensus is $45.83 with a high of $48.00 and a low of $43.00. The stock price consensus of $45.83 implies a total return of 34.37% with 30.94% from capital gains and 3.43% from dividends based on a current stock price of $35.00.

There are two recommendations on Stock Chase for this stock as Buys. One says solid business with excellent management team. Stock Chase gives this stock 4 stars out of 5. Daniel Da Costa on Motley Fool says this company is cheap with long term potential. Christopher Liew on Motley Fool says company is lesser-known and outperforming more popular names. The company put out a press release via Newswire about it fourth quarter of 2023 results. The company put out a press release via Newswire about their second quarter of 2024.

Simply Wall Street via Yahoo Finance reviews this stock and likes that fact that it is 19% owned by Hedge Funds. Simply Wall Street has one warning out on this stock of has a high level of debt. Simply Wall Street also gives this stock 4 stars out of 5.

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. The next stock I will write about will be BRP Inc (TSX-DOO, OTC-DOOO) ... learn more on Friday, September 27, 2024 around 5 pm. Tomorrow on my other blog I will write about Money Show Toronto .... learn more on Thursday, September 26, 2024 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.

Also, on my book blog I have put a review of the book The Bomber Mafia by Malcolm Gladwell learn more...

Granite REIT

Sound bite for Twitter and StockTwits is: Dividend Growth REIT. Results of stock price testing is that the stock price could still be reasonable, but it would be in the top of the reasonableness range. Debt Ratios are fine, but Liquidity Ratio could be improved. The Dividend Payout Ratios (DPR) are fine for the AFFO and FFO Ratios. 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? I have some REITs for diversification purposes. They are not my favourite dividend stocks as you tend to get high dividends, but little in the way of growing dividends. This seems like a reasonable REIT to buy for diversifications purposes. A number of tests show this stock as being expensive. But, then a number of tests also show it is reasonable and below the median. It is certainly not cheap, but maybe in the high end of the reasonableness range according to the 10 year dividend yield test.

I do not own this stock of Granite REIT (TSX-GRT.UN, NYSE-GRP.U). 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.

When I was updating my spreadsheet, I noticed this stock is currently doing quite well. There is some insider buying. Net insider buying is 0.01%.

If you had invested in this company in December 2013, for $1,005.16 you would have bought 26 shares at $38.66 per share. In December 2023, after 10 years you would have received $739.21 in dividends. The stock would be worth $1,983.28. Your total return would have been $2,722.49. This would be a total return of 12.46% per year with 7.03% from capital gain and 5.43% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$38.66	$1,005.16	26	10	$739.21	$1,983.28	$2,722.49

The current dividend yield is moderate with dividend growth low. The current dividend yield is moderate (2% to 4% ranges) at 4.03%. The 5, 10 and historical median dividend yields are also moderate at 4.23%, 4.99% and 4.23%. The dividend growth is low (below 8% per year) at 3.3% per year over the past 5 years. The last dividend increase was in 2024 and it was for 3.1%. Dividends are currently paid in CDN$.

The Dividend Payout Ratios (DPR) are fine for the AFFO and FFO Ratios. The DPR for 2023 for Earnings per Share (EPS) is far too high at 153% with 5 year coverage at 82%, but this is not an important ratio for REITS, the ratios for AFFO and FFO are the important ones. The DPR for 2023 for Adjusted Funds from Operations (AFFO) is good at 71% with 5 year coverage at 77%. The DPR for 2023 for Funds from Operations (FFO) is good at 64% with 5 year coverage at 72%. The DPR for 2023 for Cash Flow per Share (CFPS) is too high at 51% with 5 year coverage at 65%. The DPR for 2023 for Free Cash Flow (FCF) is too high at 64% with 5 year coverage at 76%. Here again, there is not much agreement on what the FCF is and MS has again changed FCF for the past 10 years.

Item	Cur	5 Years
EPS	152.92%	82.07%
AFFO	71.12%	76.92%
FFO	64.39%	72.18%
CFPS	50.87%	64.89%
FCF	64.40%	75.52%

Debt Ratios are fine, but Liquidity Ratio could be improved. The Long Term Debt/Market Cap Ratio for 2023 is good at 0.59 and currently at 0.55. The Liquidity Ratio for 2023 is too low at 0.39 and 0.35 currently. If you added in Cash Flow after dividends, the ratios are still too low at 1.53 and currently at 0.64. If you add back in the current portion of the long term debt the ratios are fine at 1.87 and 1.79. The Debt Ratio for 2023 is good at 2.40 and 2.42 currently. The Leverage and Debt/Equity Ratios for 2023 are good at 1.72 and 0.72and currently at 1.71 and 0.71.

Type	Year End	Ratio Curr
Lg Term R	0.59	0.55
Intang/GW	0.00	0.00
Liquidity	0.39	0.35
Liq. + CF	0.68	0.64
Liq. CF Dt	1.87	1.79
Debt Ratio	2.40	2.42
Leverage	1.72	1.71
D/E Ratio	0.72	0.71

The Total Return per year is shown below for years of 5 to 21 to the end of 2023 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.
2018	5	3.28%	13.83%	8.21%	5.40%
2013	10	4.30%	9.54%	4.69%	5.43%
2008	15	10.31%	24.25%	14.61%	8.84%
2003	20	10.12%	7.04%	3.71%	3.08%
2002	21		9.95%	6.00%	3.32%

The Total Return per year is shown below for years of 5 to 21 to the end of 2023 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.
2018	5	3.92%	13.83%	8.21%	5.62%
2013	10	2.05%	9.54%	4.69%	4.85%
2008	15	9.74%	24.25%	14.61%	9.64%
2003	20	10.00%	7.04%	3.71%	3.33%
2002	21		9.95%	6.00%	3.95%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 6.89, 7.97 and 10.51. The corresponding 10 year ratios are 6.48, 7.92 and 9.68. The corresponding historical ratios are 6.89, 7.97 and 9.91. The current ratio is 22.94 based on a stock price of $81.82 and EPS for the last 12 months of $3.57. the current ratio is above the high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive.

I also have Adjusted Funds from Operations (AFFO) data. The 5-year low, median, and high median Price/ Adjusted Funds from Operations Ratios are 15.27, 17.38, and 20.91. The corresponding 10 year ratios are 14.10, 16.33 and 19.29. The current ratio is 17.33 based on a stock price of $81.82 and AFFO estimate for 2024 of $4.72. 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 Funds from Operations (FFO) data. The 5-year low, median, and high median Price/ Funds from Operations Ratios are 14.56, 16.95 and 20.01. The corresponding 10 year ratios are 12.90, 14.95 and 16.86. The current ratio is 15.32 based on a stock price of $81.82 and FFO estimate for 2024 of $5.34. 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 $82.95. The 10-year low, median, and high median Price/Graham Price Ratios are 0.51, 0.59 and 0.72. The current ratio is 0.99 based on a stock price of $81.82. This ratio is above the high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive.

I get a 10-year median Price/Book Value per Share Ratio of 1.01. The current P/B Ratio is 0.95 based on a stock price of 81.82, Book Value of $5,433M and Book Value per Share of $85.75. The current ratio is 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 a 10-year median Price/Cash Flow per Share Ratio of 15.28. The current P/CF Ratio is 16.10 based on Cash Flow for the last 12 months of $322M, Cash Flow per Share of 5.08 and a stock price of $81.82. 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 4.23%. The current dividend yield is 4.03% based on a stock price of $81.82 and dividends of $3.30. 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.

I get a 10 year median dividend yield of 4.23%. The current dividend yield is 4.99% based on a stock price of $81.82 and dividends of $3.30. 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 ratio is 9.17 based on Revenue estimate for 2024 of $565.6M, Revenue per Share of $8.93 and a stock price of $81.82. The current ratio is 7% 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 could still be reasonable, but it would be in the top of the reasonableness range. The 10 year dividend yield test is showing the stock price as almost expensive. The P/S Ratio testing is showing the stock as reasonable and below the median. The rest of the testing varies from reasonable to expensive.

When I look at analysts’ recommendations, I find Strong Buy (5), Buy (5). The consensus would be a Strong Buy. The 12 month stock price consensus is $87.90 with a high of $92.00 and low of $84.00. The consensus stock price of $87.90 implies a total return of $11.46% with 7.43% from capital gains and 4.03% from dividends based on a current stock price of $81.82.

Analysts on Stock Chase gives this stock 6 Buys, 1 Hold and 1 Do Not Buy. Stock Chase gives this stock 4 stars out of 5. The Do Not Buy likes the company but says that the real estimate business is not good now. Amy Legate-Wolfe on Motley Fool thinks this is an outstand REIT to buy now. Robin Brown on Motley Fool says with interest rates dropping, now is the time to buy this REIT. The company put out a press release via Stock House about their fourth quarter of 2023. The company put out a press release via Financial Post about their second quarter of 2024 results.

Simply Wall Street has no review of this stock, but on it site it has two warnings of debt is not well covered by operating cash flow; and large one-off items impacting financial results. Simply Wall Street gives this stock 2 and one half stars out of 5.

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. Granite's portfolio comprises various manufacturing, corporate office, warehouse and logistics, and product engineering facilities. 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 Wednesday, September 25, 2024 around 5 pm. Tomorrow on my other blog I will write about Compound Interest.... learn more on Tuesday, September 24, 2024 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 Financial. Results of stock price testing is that the stock price is could be reasonable. Debt Ratios are fine. The Dividend Payout Ratios (DPR) are fine. The Dividend Payout Ratios (DPR) are fine. See my spreadsheet on Great-West Lifeco Inc.

Is it a good company at a reasonable price? All insurance companies had a hard time during the no to low interest rate period. They are recovering. Most of the analysts are giving a Hold rating on this stock and that seems reasonable to me. I think it is a good company. It is on the Money Sense dividend list. This stock is testing a reasonably price, but above the median at the present time.

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 accounting for Life Insurance companies changed last year under IFRS. This especially affected Revenue. I got my revenue figure from Market Screener and I cannot figure out from GWO statements and supplemental information how they got the figure they got. Information I got before on revenue type items seems no longer available.

If you had invested in this company in December 2013, for $1,015.25 you would have bought 31 shares at $32.75 per share. In December 2023, after 10 years you would have received $501.89.21 in dividends. The stock would be worth $1,359.66. Your total return would have been $1,861.55. This would be a total return of 7.21% per year with 2.96% from capital gain and 4.25% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$32.75	$1,015.25	31	10	$501.89	$1,359.66	$1,861.55

If you had invested in this company in December 1993, for $1,002.24 you would have bought 348 shares at $2.88 per share. In December 2023, after 30 years you would have received $10,373.88 in dividends. The stock would be worth $15,263.28. Your total return would have been $25,637.16. This would be a total return of 16.46% per year with 9.50% from capital gain and 6.96% from dividends. This calculation takes into consideration stock splits, which means that the original cost would be lowered by these splits.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$2.88	$1,002.24	348	30	$10,373.88	$15,263.28	$25,637.16

The current dividend yield is moderate with dividend growth low. The current dividend yield is moderate (2% to 4% ranges) at 4.86%. The 5 and 10 year median dividend yields are good (5% to 6% ranges) at 5.51% and 5.11%. The historical median dividend yield is moderate at 3.80%. The dividend growth is low (below 8% per year) at 6% per year over the past 5 years. The last dividend increase was in 2024 and it was for 6.7%.

The Dividend Payout Ratios (DPR) are fine. The DPR for 2023 for Earnings per Share (EPS) is too high at 71% with 5 year coverage at 60%. The DPR for 2023 for Adjusted Earnings per Share (AEPS) is fine at 53% with 5 year coverage at 56%. This is more important than the DPR for EPS. The DPR for 2023 for Cash Flow per Share (CFPS) is good at 37% with 5 year coverage at 22%. The DPR for 2023 for Free Cash Flow (FCF) is good at 31% with 5 year coverage at 23%.

Item	Cur	5 Years
EPS	70.99%	60.03%
AEPS	52.95%	55.99%
CFPS	37.28%	22.43%
FCF	31.25%	22.99%

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2023 is fine at 5.72 and currently at 5.44. However, we need also to look at the Long Term Debt/Covering Assets Ratio for 2023 which is good at 0.91 and currently at 0.94 because this is a more important one for a Financial. The Liquidity Ratio for 2023 is too low at 0.99 and 0.86 currently. If you added in Cash Flow after dividends, the ratios are fine at 1.25 and currently at 1.12 as this is not an important ratio for financials. The Debt Ratio for 2023 is low at 1.04 and 1.04 currently. This ratio at 1.04 is ok for financials.

Type	Year End	Ratio Curr
Lg Term R	5.72	5.44
Lg Term A	0.91	0.94
Intang/GW	0.38	0.37
Liquidity	0.99	0.86
Liq. + CF	1.25	1.12
Debt Ratio	1.04	1.04

The Total Return per year is shown below for years of 5 to 35 to the end of 2023. 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.
2018	5	5.98%	14.75%	9.25%	5.50%
2013	10	5.39%	7.21%	2.96%	4.25%
2008	15	3.74%	10.18%	5.13%	5.04%
2003	20	6.76%	7.53%	3.37%	4.17%
1998	25	9.40%	9.33%	4.98%	4.34%
1993	30	12.39%	16.46%	9.50%	6.96%
1988	35	10.53%	16.66%	10.12%	6.54%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 8.69, 10.24 and 11.99. The corresponding 10 year ratios are 10.91, 12.36 and 13.43. The corresponding historical ratios are 10.65, 12.41 and 13.81. The current P/E Ratio is 10.66 based on a stock price of $45.65 and EPS estimate for 2024 of $4.28. 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 also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Earnings per Share Ratios are 8.30, 9.82 and 11.97. The corresponding 10 year ratios are 9.27, 10.54 and 12.12. The current P/AEPS Ratio is 10.49 based on a stock price of $45.65 and AEPS estimate for 2024 of $4.35. 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 $51.37. The 10-year low, median, and high median Price/Graham Price Ratios are 0.73, 0.84 and 0.96. The current P/GP Ratio is 0.89 based on a stock price of $45.65. The current ratio is between the median and high ratios of 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/Book Value per Share Ratio of 1.59. The current ratio is 1.69 based on a stock price of $45.65, Book Value of $25,136M and Book Value per Share of $26.97. The current ratio is 6.5% 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 2024 of $26.34. This implies a Book Value of $24,553M and a ratio of 1.73 based on a stock price of $45.65. This ratio is 9% 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 ratio is 7.58 based on a stock price of $45.65, Cash Flow for the last 12 months of $5,612M, and Cash Flow per Share of $6.02. The current ratio is 52% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I get an historical median dividend yield of 3.80%. The current dividend yield is 4.86% based on a stock price of $45.65 and dividends of $2.22. The current dividend yield is 28% 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 5.11%. The current dividend yield is 4.86% based on a stock price of $45.65 and dividends of $2.22. 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 0.73. The current ratio is 0.63 based on a stock price of $45.65, Revenue estimate for 2024 of $67,688M, and Revenue per Share of $72.62. 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 would not trust this test as the rules on how to calculate Revenue for Insurance Companies have changed. I had a hard time trying to figure out revenue for this company and I do not know how the analysts are calculating revenue estimates.

Results of stock price testing is that the stock price is could be reasonable. The 10 year median dividend yield test says that the stock price is reasonable but above the median. My testing is showing the stock price from Cheap to Reasonable to Expensive.

When I look at analysts’ recommendations, I find Strong Buy (1), Hold (9) and Underperform (1). The consensus would be a Hold. The 12 month price target is $44.09 with a high of $47.00 and a low of $41.00. The 12 month target price implies a total return of 1.45% with a capital loss of 3.42% and dividends of 4.86% based on a current stock price of $45.65.

There are 6 analysts reviews on Stock Chase for 2024, of which 5 are buys and one Do Not Buy. The Do Not Buy says the stock is too expensive. Other like this company. Stock Chase gives this stock 4 stars out of 5. Aditya Raghunath on Motley Fool says this is a top dividend stock selling at a cheap valuation. Jitendra Parashar on Motley Fool says lower interest rates will drive it to new highs. The company put out a Press Release about their fourth quarter of 2023 results. The company put out a Press Release about their second quarter of 2024.

Simply Wall Street via Yahoo Finance put out a review on this stock. Simply Wall Street lists not risks or warnings for this company. Simply Wall Street gives this stock 3 and one half stars 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 company operates the second-largest recordkeeping business under the Empower brand in the United States. Its web site is here Great-West Lifeco Inc.

The last stock I wrote about was about was Wajax Corp (TSX-WJX, OTC-WJXFF) ... learn more. The next stock I will write about will be Granite REIT (TSX-GRT.UN, NYSE-GRP.U) ... learn more on Monday, September 23, 2024 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.

Wajax Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. Results of stock price testing is that the stock price is probably reasonable. Debt Ratios are mostly good, but their debt level is high. The Dividend Payout Ratios (DPR) are good. The current dividend yield is good with dividend growth low. See my spreadsheet on Wajax Corp.

Is it a good company at a reasonable price? This is a small cap stock and also one that is volatile, so if you like to buy it, you should be careful. You should not be using money you cannot afford to lose. Entry point is important. It has made money for its shareholders at different times. It would seem that the stock price at this point is in a reasonable place.

I do not own this stock of Wajax Corp (TSX-WJX, OTC-WJXFF). TD Waterhouse put out a report on good dividend paying stocks to own in November 2011. This was a stock they named. I had not heard of it before, so I decided to investigate it.

When I was updating my spreadsheet, I noticed Cash Flow varies a lot and it is often negative. In the last 5 years it has been negative 3 times, including for 2024. Insiders have been buying over the past year.

If you had invested in this company in December 2013, for $1,021.44 you would have bought 28 shares at $36.48 per share. In December 2023, after 10 years you would have received $331.05 in dividends. The stock would be worth $847.56. Your total return would have been $1,178.61. This would be a total return of 1.69% per year with 1.85% from capital loss and 3.45% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$36.48	$1,021.44	28	10	$331.05	$847.56	$1,178.61

Compare above 10 year return to this 5 year return. If you had invested in this company in December 2018, for $1,011.38 you would have bought 61 shares at $16.58 per share. In December 2023, after 5 years you would have received $186.48 in dividends. The stock would be worth $1,846.47. Your total return would have been $2,166.11. This would be a total return of 17.82% per year with 12.79% from capital gain and 5.02% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$16.58	$1,011.38	61	5	$319.64	$1,846.47	$2,166.11

The current dividend yield is good with dividend growth low. The current dividend is good (5% to 6% ranges) at 5.65%. The 5, 10 and historical dividend yields are moderate (2% to 4% ranges) at 4.83%, 4.91% and 4.52%. The dividend growth is low (below 8% per year) at 4.4% per year over the past 5 years. However, this comes from a 24% rise in dividends in 2023. There was dividend cutting and flat dividends between 2013 and 2022. There were dividends from 1986 to 1991. There were no dividends from 1992 to 2004.

The Dividend Payout Ratios (DPR) are good. The DPR for 2023 for Earnings per Share (EPS) is good at 34% with 5 year coverage at 41%. The DPR for 2023 for Adjusted Earnings per Share (AEPS) is good at 33% with 5 year coverage at 43%. The DPR for 2023 for Cash Flow per Share (CFPS) is good at 14% with 5 year coverage at 15%. The DPR for 2023 for Free Cash Flow (FCF) is good at 27% with 5 year coverage at 25%.

Item	Cur	5 Years
EPS	34.07%	40.84%
AEPS	33.07%	42.96%
CFPS	13.96%	15.12%
FCF	26.66%	25.44%

< Debt Ratios are mostly good, but their debt level is high. The Long Term Debt/Market Cap Ratio for 2023 is good at 0.49 and currently at 0.53. The Liquidity Ratio for 2023 is good at 2.16 and 1.91 currently. The Debt Ratio for 2023 is good at 1.51 and 1.49 currently. The Leverage and Debt/Equity Ratios for 2023 are fine at 2.97and 1.97 and currently too high at 3.04 and 2.04.

Type	Year End	Ratio Curr
Lg Term R	0.49	0.53
Intang/GW	0.29	0.35
Liquidity	2.16	1.91
Liq. + CF	2.05	2.03
Debt Ratio	1.51	1.49
Leverage	2.97	3.04
D/E Ratio	1.97	2.04

The Total Return per year is shown below for years of 5 to 37 to the end of 2023. 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.
2018	5	4.40%	17.82%	12.79%	5.02%
2013	10	-7.66%	1.69%	-1.85%	3.54%
2008	15	-7.66%	10.93%	2.44%	8.49%
2003	20	0.00%	29.60%	6.88%	22.72%
1998	25	0.00%	15.48%	5.52%	9.96%
1993	30	0.00%	10.21%	4.13%	6.09%
1988	35	2.30%	6.79%	2.39%	4.40%
1986	37	2.17%	6.17%	2.01%	4.16%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 5.36, 7.55 and 10.20. The corresponding 10 year ratios are 7.18, 9.18 and 12.00. The corresponding historical ratios are 7.63, 10.18 and 13.71. The current P/E Ratio is ratio is 6.72 based on a stock price of $24.80 and EPS estimate for 2024 of $3.69. 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/Earnings per Share Ratios are 5.55, 6.98 and 9.60. The corresponding 10 year ratios are 7.76, 10.55 and 13.34. The current ratio is 7.49 based on a stock price of $24.80 and AEPS estimate for 2024 of $3.31. 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 Graham Price of $42.14. The 10-year low, median, and high median Price/Graham Price Ratios are 0.59, 0.80 and 1.02. The current ratio is 0.59 based on a stock price of $24.80. The current ratio is at 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 1.35. The current ratio is 1.04 based on a stock price of $24.80, Book Value of $517M and Book Value per Share of $23.84. The current ratio is 23% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get a 10-year median Price/Cash Flow per Share Ratio of 4.59. The current ratio is 5.37 based on Cash Flow per Share estimate for 2024 of $4.62, Cash Flow of $100.2M and a stock price of $24.80. This ratio is 17% 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 4.52%. The current dividend yield is 5.65% based on dividends of $1.40 and a stock price of $24.80. The current dividend yield is 25% 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 4.91%. The current dividend yield is 5.65% based on dividends of $1.40 and a stock price of $24.80. The current dividend yield is 15% 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 0.28. The current 0.25 based on Revenue estimate for 2024 of $2,165M, Revenue per Share of $99.78 and a stock price of $24.80. The current ratio is 12% 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 10 year dividend yield test says this. It is confirmed by the P/S Ratio test. Most of the rest of the testing is saying that the stock price is cheap. The exception is the P/CF Ratio test that says the stock price is reasonable but above the median.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (1) and Hold (1). The consensus would be a Buy. The 12 month stock price consensus is $29.00 with a high of $30.00 and low of $28.00. The 12 month stock price consensus implies a total return of 22.58% with 16.94% from capital gains and 5.65% from dividends based on a current stock price of $24.80.

There is one analyst’s opinion on Stock Chase for 2023. He says the next bull will be in cyclicals. Stock Chase gives this stock 1 star out of 5. Christopher Liew on Motley Fool says this beaten down stock could take off in a new bull market. Christopher Liew on Motley Fool seems to be the only one following this stock. In 2023 he said it could rise because of rising interest rates. The company put out a press release via Newswire about their second quarter results for 2024. The company put out a press release via Newswire about their annual results for 2023.

Simply Wall Street via Yahoo Finance reviews this stock. Simply Wall Street has two warnings out of debt is not well covered by operating cash flow; and dividend of 5.7% is not well covered by free cash flows. Simply Wall Street gives this stock 2 and one half stars out of 5.

Wajax Corp operates an integrated distribution system, providing sales, parts, and services to a broad range of customers in diversified sectors of the Canadian economy, including: construction, forestry, mining, industrial and commercial, oil sands, transportation, metal processing, government and utilities, and oil and gas. Its web site is here Wajax Corp.

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 Great-West Lifeco Inc (TSX-GWO, OTC-GWLIF) ... learn more on Friday, September 20, 2024 around 5 pm. Tomorrow on my other blog I will write about Dividend Payout Ratios.... learn more on Thursday, September 19, 2024 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.

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