North West Company

Sound bite for Twitter is: Dividend Growth Consumer. Results of stock price testing is that the stock price could still be reasonable, but the stock price is at the top of the range. Debt Ratios are good. The Dividend Payout Ratios (DPR) are fine. The current dividend yield is moderate with dividend growth low. See my spreadsheet on North West Company.

Is it a good company at a reasonable price? This rather smallish company has done well for its shareholders over the years producing both a reasonable capital gain and dividend growth each year. This seems to be a company you could buy and hold for a long time. However, the price that you buy for a stock does affect your long term total return. The stock price could be reasonable, but it could also be considered to be a little too high. It is hard to call at present.

I do not own this stock of North West Company (TSX-NWC, OTC-NWTUF). I wanted to review all the income trust stocks touted in the Money Show of 2009. There was a lot of talk at this show about some of the Income Trust being currently good buys with very good yields. This stock changed from an income trust to a corporation in 2011.

When I was updating my spreadsheet, I noticed that, unlike Linamar Corp, which I just recently reviewed, this company’s stock price has steadily gone up. See the TSX Chart by googling “North West Company TSX Chart” and clicking on Max. Yes, it is a jagged line, but that is how the stock market works. See chart below on Total Return.

If you had invested in this company in December 2014, for $1,021.80 you would have bought 39 shares at $26.30 per share. In December 2024, after 10 years you would have received $537.03 in dividends. The stock would be worth $1,915.68. Your total return would have been $2,452.71. This would be a total return of 10.49% per year with 6.49% from capital gain and 4.00% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$26.20	$1,021.80	39	10	$537.03	$1,915.68	$2,452.71

The current dividend yield is moderate with dividend growth low. The current dividend yield is moderate (2% to 4% ranges) at 3.55%. The 5, 10 and historical dividend yields are moderate at 4.33%, 4.35% and 4.53%. The dividend increases for the past 5 years are low (below 8% per year) at 3.7% per year over the past 5 years. The last dividend increase was in 2025 and it was for 2.5%. I have 36 years of dividend data and the dividends have been increased 27 times during those 36 years. The last year of no increase was in 2019 and before that was 1998.

The Dividend Payout Ratios (DPR) are fine. The DPR for 2024 for Earnings per Share (EPS) is fine at 56% with 5 year coverage at 53%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is good at 49.5% with 5 year coverage fine at 50%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 23% with 5 year coverage at 24%. The DPR for 2024 for Free Cash Flow (FCF) is fine at 52% with 5 year coverage high at 65%. FCF for 2025 varies from $106M to $114M.

Item	Cur	5 Years
EPS	55.83%	53.25%
AEPS	49.56%	49.99%
CFPS	23.37%	24.08%
FCF	51.75%	65.07%

Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.13 and currently at 0.14. The Liquidity Ratio for 2024 is good at 2.00 and 2.06 currently. The Debt Ratio for 2024 is good at 2.08 and 2.05 currently. The Leverage and Debt/Equity Ratios for 2024 are good at 1.98 and 0.95 and currently at 2.01 and 0.98.

Type	Year End	Ratio Curr
Lg Term R	0.13	0.14
Intang/GW	0.04	0.04
Liquidity	2.00	2.06
Liq. + CF	2.68	2.74
Debt Ratio	2.08	2.05
Leverage	1.98	2.01
D/E Ratio	0.95	0.98

The Total Return per year is shown below for years of 5 to 34 to the end of 2024. 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.
2019	5	3.66%	16.81%	12.44%	4.37%
2014	10	3.14%	10.49%	6.49%	4.00%
2009	15	1.21%	11.14%	6.54%	4.61%
2004	20	4.96%	15.39%	8.48%	6.92%
1999	25	5.65%	19.94%	10.28%	9.66%
1994	30	8.64%	16.88%	9.43%	7.45%
1990	34	8.21%	17.72%	10.07%	7.64%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 11.19, 13.02, 14.85. The corresponding 10 year ratios are 14.16, 16.53 and 18.90. The corresponding historical ratios are 10.45, 12.99 and 15.19. The current P/E Ratio is 15.26 based on a stock price of $46.24 and EPS estimate for 2026 of $3.03. 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 9.90, 11.45 and 13.06. The corresponding 10 year ratios are 13.33, 15.91 and 18.31. The corresponding historical ratios are 11.76, 14.61 and 17.46. The current P/AEPS Ratio is 11.65 based on a stock price of $46.24 and AEPS estimate for 2026 of $3.97. 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 $37.96. The 10-year low, median, and high median Price/Graham Price Ratios are 1.29, 1.51 and 1.73. The current ratio is 1.22 based on a stock price of $46.27. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.

I get a 10-year median Price/Book Value per Share Ratio of 3.20. The current ratio is 2.87 based on a stock price of $46.27, Book Value of $771.8M and Book Value per Share of $16.13. The current ratio is 10% 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 9.28. The current ratio is 8.19 based on Cash Flow per Share estimate for 2026 of $5.65, Cash Flow of $270.1M and a stock price of $46.27. The current ratio is 12% below the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get an historical median dividend yield of 4.53%. The current ratio is 3.55% based on dividends of $1.64 and a stock price of $46.27. The current dividend yield is 22% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. But note that this stock used to be an income trust and as such had high dividend yields.

I get a 10 year median dividend yield of 4.35%. The current ratio is 3.55% based on dividends of $1.64 and a stock price of $46.27. The current dividend yield is 19% below the 10 year median ratio. 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 0.72. The current P/S Ratio is 0.85 based on Revenue estimate for 2026 of $2,598M, Revenue per Share of $54.30 and a Stock Price of $46.27. The current ratio is 19% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

Results of stock price testing is that the stock price could still be reasonable, but the stock price is at the top of the range. Both the 10 year median dividend test and the P/S Ratio test shows that the stock price is reasonable and at the top of the range. Other testing is showing the stock price as cheap or reasonable and below the median. The TSX chart is showing the stock price as off its recent high.

When I look at analysts’ recommendations, I find Strong Buy (3) and Buy (1). The consensus would be a Strong Buy. The 12 month stock price consensus is $59.50 with a high of $63.00 and low of $57.00. The consensus stock price of $59.50 implies a total return of 32.22% with 26.68% from capital gains and 3.55% from dividends based on a current stock price of $46.24.

Analysts on Stock Chase like this company, but give ratings of a Hold. Christopher Liew on Motley Fool talks about this stock being a defensive stock for risk adverse investors to buy. Demetris Afxentiou on Motley Fool says the company is dependable dividend payer and in a niche business. The company put out a press release via Global Newswire about their fourth quarter result ending January 2025. The company put out a Press Release about their second quarter of 2025.

Simply Wall Street via Yahoo Finance reviews this stock and basically like what they see. They have one warning of earnings have declined by 1% per year over past 5 years.

The North West Co Inc is a Canada-based company that is principally engaged in retail business in underserved rural communities and urban neighborhoods. Its geographical segment includes Canada and International. It generates maximum revenue from Canada. Its web site is here North West Company.

The last stock I wrote about was about was Teck Resources Ltd (TSX-TECK.B, NYSE-TECK) ... learn more. The next stock I will write about will be Medtronic PLC (NYSE-MDT) ... learn more on Friday, October 10, 2025 around 5 pm. Tomorrow on my other blog I will write about Frances Horodelski.... learn more on Thursday, October 9, 2025 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.

Teck Resources Ltd

Sound bite for Twitter is: Dividend Paying Resource. Results of stock price testing is that the stock price is probably expensive with problems. Debt Ratios are good. The Dividend Payout Ratios (DPR) are good. The current dividend yield is low with dividend growth good, but increases are seldom done. See my spreadsheet on Teck Resources Ltd.

Is it a good company at a reasonable price? This is a cyclical stock. It has done well in the last 5 and 10 years for shareholders, but the stock was only up by 4% in 2024 and 4.5% this year, so it is slowing down. Analysts are all over the map on their recommendations and cover all categories. It is a very cyclical stock, but it is off its recent high. I tend not to like resource stocks because of their cyclical nature. The testing is basically showing that the stock price is relatively expensive, but none of the testing is normal.

I do not own this stock of Teck Resources Ltd (TSX-TECK.B, NYSE-TECK). In 2008, I wanted to cover some resource stocks and this is one that I decided to take a look at.

When I was updating my spreadsheet, I noticed this stock has not raised the dividends lately, but in 2024 they gave a special dividend equal to their annual dividend.

If you had invested in this company in December 2014, for $1,000.44 you would have bought 63 shares at $15.88 per share. In December 2024, after 10 years you would have received $327.60 in dividends. The stock would be worth $3,671.64. Your total return would have been $3,999.24. This would be a total return of 15.61% per year with 13.89% from capital gain and 1.73% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$15.88	$1,000.44	63	10	$327.60	$3,671.64	$3,999.24

The current dividend yield is low with dividend growth good, but increases are seldom done. The current dividend is low (below 2%) at 0.82%. The 5, 10 and historical dividend yields are also low at 0.90%, 0.82% and 1.17%. The dividend growth is currently good (above 15% per year) at 20.11% per year over the past year. However, this is due to one increase of 150% in 2022. That was the last dividend increase.

The Dividend Payout Ratios (DPR) are good. The DPR for 2024 for Earnings per Share (EPS) is fine at 64% with 5 year coverage at 22%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is good at 16% with 5 year coverage at 11%. This is the important DRP test. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 5% with 5 year coverage at 7%. The DPR for 2024 for Free Cash Flow (FCF) is negative. Note that for 2024 the FCF varies from $155M to a negative 2,790M.

Item	Cur	5 Years
EPS	64.10%	22.30%
AEPS	15.72%	10.74%
CFPS	5.17%	6.92%
FCF	-18.42%	-42.11%

Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.14 and currently at 0.13. The Liquidity Ratio for 2024 is good at 2.88 and 1.48 currently. If you added in Cash Flow after dividends, the ratios are good at 3.46 and currently at 1.84. The Debt Ratio for 2024 is good at 2.36 and 2.44 currently. The Leverage and Debt/Equity Ratios for 2024 are good at 1.80 and 0.76 and currently at 1.76 and 0.72.

Type	Year End	Ratio Curr
Lg Term R	0.14	0.13
Intang/GW	0.02	0.04
Liquidity	2.88	1.48
Liq. + CF	3.46	1.84
Debt Ratio	2.36	2.44
Leverage	1.80	1.76
D/E Ratio	0.76	0.72

The Total Return per year is shown below for years of 5 to 31 to the end of 2024. 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.
2019	5	20.11%	29.49%	27.39%	2.10%
2014	10	-5.71%	15.61%	13.89%	1.73%
2009	15	0.00%	4.37%	3.11%	1.26%
2004	20	6.20%	8.02%	5.92%	2.11%
1999	25	6.65%	11.73%	9.01%	2.72%
1994	30	5.51%	6.80%	5.34%	1.46%
1993	31	5.33%	6.84%	5.39%	1.45%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 5.43, 7.34 and 9.26. The corresponding 10 year ratios are 4.43, 6.11 and 7.63. The corresponding historical ratios are 6.45, 11.02 and 14.12. The current P/E Ratio is 27.42 based on a stock price of $60.88 and EPS estimate for $2.22. 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. Ratios are rather low because of some negative ratios and also because there is a high variance in the ratios. Of the positive ratios for the 5 year period and end median result of 7:34, there is a high ratio of 78.87 and a low one of 5.62. These ratios are basically all over the place.

I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 5.88, 10.82 and 12.65. The corresponding 10 year ratios are 5.40, 9.44 and 11.93. The corresponding historical ratios are 7.77, 10.97 and 17.09. The current P/E Ratio is 30.90 based on a stock price of $60.88 and AEPS estimate for $1.97. 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. Note that analyst expect the AEPS to drop some 38% this year. Maybe reasonable. The AEPS dropped 43% in 2023 and 38% in 2024.

I get a Graham Price of $46.20. The 10-year low, median, and high median Price/Graham Price Ratios are 0.32, 0.49 and 0.74. The current ratio is 1.32 based on a stock price of $60.88. 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 0.74. The current ratio is 1.26 based on a Stock Price of $60.88, Book Value of $24,380M, and Book Value per Share of $48.15. The current ratio is 71% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. The P/B Ratio in the past have been very low. A normal ratio is considered to be around 1.20.

I also have Book Value per Share estimate for 2025 of $50.16. This implies a ratio of 1.21 based on a Stock Price of $60.88 and Book Value of $25,398M. This ratio is 64% above the 10 year ratio. This stock price testing suggests that the stock price is relatively expensive.

I get a 10-year median Price/Cash Flow per Share Ratio of 3.74. The current ratio is 15.55 based on Cash Flow per Share estimate for 2025 of $3.92, Cash Flow of $1,982M and a Stock Price of $60.88. The current ratio is 316% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. The Cash Flow per Share is expected to drop some 29% this year after drops of 49% and 30% in 2023 and 2024.

I get an historical median dividend yield of 1.17%. The current dividend yield is 0.82% based on dividends of $0.50 and a stock price of $60.88. The current ratio is 30% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year median dividend yield of 0.82%. The current dividend yield is 0.82% based on dividends of $0.50 and a stock price of $60.88. The current ratio is at 10 year median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and at the median.

The 10-year median Price/Sales (Revenue) Ratio is 1.25. The current P/S Ratio is 3.07 based on Revenue estimate for 2025 of $10,043M, Revenue per Share of $19.83 and a stock price of $60.88. The current ratio is 146% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

Results of stock price testing is that the stock price is probably expensive with problems. The only test that shows that the stock price is reasonable is the 10 year median dividend yield test. Dividends are so low that you would not buy this stock for the dividends. I never buy stock with dividends less than 1%. All the other tests are saying that the stock price is expensive. There are also problems with most of the testing from really low P/E Ratio to estimates being a sharp departure from last year’s values.

When I look at analysts’ recommendations, I find Strong Buy (7), Buy (4), Hold (6), Underperform (2) and Sell (1). The consensus is a Buy. The 12 month stock price is $60.29 with a high of $74.00 and low of $45.00. The consensus stock price of $60.29 implies a total loss of 0.15% with a capital loss of 0.97% and dividends of 0.82% based on a current stock price of $60.88.

Analysts have various opinions on Stock Chase for this stock. Reason not be a buy is that stock is very cyclical. Amy Legate-Wolfe on Motley Fool thinks this is a buy because of its merger with Anglo American. Jitendra Parashar on Motley Fool thinks this stock is cheap at $46.46. The company put out a press release about their fourth quarter of 2024. The company put out a press release via Global Newswire about their second quarterly results for 2025.

Gabriel Friedman on Financial Post thinks Anglo and Teck could still work together if deal falls apart, quoting Angleo CEO says. Simply Wall Street via Yahoo Finance looks at this stock after the Glencore Asset Sale. They think the fair value of this stock is $68.55. Simply Wall Street has one warning out on this stock of Large one-off items impacting financial results.

Teck is a base metals miner with copper and zinc operations in Canada, the United States, Chile, and Peru. Its web site is here Teck Resources Ltd.

The last stock I wrote about was about was Linamar Corporation (TSX-LNR, OTC-LIMAF) ... learn more. The next stock I will write about will be North West Company (TSX-NWC, OTC-NWTUF) ... learn more on Wednesday, October 8, 2025 around 5 pm. Tomorrow on my other blog I will write about Toronto Money Show.... learn more on Tuesday, October 7, 2025 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.

Linamar Corporation

Sound bite for Twitter is: Dividend Growth Consumer. Results of stock price testing is that the stock price is probably reasonable, but might be cheap. Debt Ratios are good. The Dividend Payout Ratios (DPR) are good. The current dividend yield is low with dividend growth good. See my spreadsheet on Linamar Corporation.

Is it a good company at a reasonable price? This company has not done well in capital gains to the end of 2024 for years 5 and 10. The stock price up almost 35% in 2025, but this still does not give you much in the way of capital gains over the past 5 and 10 years. The stock price has really gone nowhere in the past 10 years. It cannot seem to break through its past highs. Although there has been growth in Revenue and Adjusted Earnings over the past 5 and 10 years. See chart below. The stock price is testing as reasonable, but the dividend testing is saying the stock price is 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. (It was still on this list in 2025.)

When I was updating my spreadsheet, I noticed EPS was lower because Finance Expenses went up some 90% from $71M to $135M. They also had a Goodwill impairment. The total return because of capital gains is low over the past 5 and 10 years. The stock is up some 33.8% this year, but the 5 year total return to date is still only 3.68% with 2.42% from capital gains and 1.26% from dividends (because the stock went higher 5 years to date). The Graham Price Ratios are really low with the current one at 0.52. Normally, you would expect ratios from around 0.80 to 1.20.

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 that Revenue is up over the past 5 and 10 years as is Adjusted Earnings. Cash flow seems to be up a lot for this year, but it is only up 19% for 2023.

Yr	Item	Tot. Gwth	Per Year	Gwth	Coverage
5	Revenue Growth	42.68%	7.37%	-3.74%	<-12 mths
5	AEPS Growth	38.56%	6.74%	-0.82%	<-12 mths
5	Net Income Growth	-40.00%	-9.71%	-18.59%	<-12 mths
5	Cash Flow Growth	7.40%	1.44%	6.67%	<-12 mths
5	Dividend Growth	108.33%	15.81%	12.00%	<-12 mths
5	Stock Price Growth	15.59%	2.94%	33.83%	<-12 mths
10	Revenue Growth	153.67%	9.76%	-5.19%	<-this year
10	AEPS Growth	100.20%	7.19%	2.65%	<-this year
10	Net Income Growth	-19.44%	-2.14%	132.49%	<-this year
10	Cash Flow Growth	129.45%	8.66%	-36.68%	<-this year
10	Dividend Growth	150.00%	9.60%	12.00%	<-this year
10	Stock Price Growth	-19.96%	-2.20%	33.83%	<-this year

The dividends are low, so if you buy this stock what sort of dividends would you get in the future? This chart is an attempt to show this. If dividends continue to increase by 16% as they have in the past 5 years, what you would get in dividends in 5, 10 and 15 years is shown in the Dividends Paid (Div Pd) column. The next column shows what your yield on the current stock price of $76.00 would be. The last column shows the percentage of your stock’s price would be covered by dividends in 5, 10 and 15 years.

Div Pd	Div Yield	Years	At IRR	Div Cov
$1.81	2.05%	5	16.00%	6.72%
$3.79	4.31%	10	16.00%	18.79%
$7.96	9.05%	15	16.00%	44.12%

If you had invested in this company in December 2014, for $1,064.25 you would have bought 15 shares at $70.95 per share. In December 2024, after 10 years you would have received $89.40 in dividends. The stock would be worth $851.85. Your total return would have been $941.25. This would be a total loss of 1.26% per year with 2.20% from capital loss and 0.94% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$70.95	$1,064.25	15	10	$89.40	$851.85	$941.25

The current dividend yield is low with dividend growth good. The current dividend yield is low (below 2%) at 1.53%. The 5, 10 and historical dividend yields are low at 1.25%, 0.84%, 1.21%. The dividend growth is good (15% per year or higher) at 15.8% per year over the past 5 years. The last dividend increase was in 2025 and it was for 16%.

The Dividend Payout Ratios (DPR) are good. The DPR for 2024 for Earnings per Share (EPS) is good at 24% with 5 year coverage at 13%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is good at 10% with 5 year coverage at 10%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 4% with 5 year coverage at 5%. The DPR for 2024 for Free Cash Flow (FCF) is good at 8% with 5 year coverage at 10%. For 2024, FCF varies from $594M to $700M.

Item	Cur	5 Years
EPS	23.87%	12.52%
AEPS	10.19%	10.18%
CFPS	4.16%	4.69%
FCF	7.99%	9.70%

Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2024 is fine at 0.65 and currently at 0.56. The Liquidity Ratio for 2024 is good at 1.85 and 1.80 currently. The Debt Ratio for 2024 is good at 2.07 and 2.17 currently. The Leverage and Debt/Equity Ratios for 2024 are good at 1.93 and 0.93 and currently at 1.86 and 0.86.

Type	Year End	Ratio Curr
Lg Term R	0.65	0.56
Intang/GW	0.57	0.42
Liquidity	1.85	1.80
Liq. + CF	2.33	2.08
Debt Ratio	2.07	2.17
Leverage	1.93	1.86
D/E Ratio	0.93	0.86

The Total Return per year is shown below for years of 5 to 36 to the end of 2024. 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.
2019	5	15.81%	4.35%	2.94%	1.41%
2014	10	9.60%	-1.26%	-2.20%	0.94%
2009	15	15.18%	11.57%	9.82%	1.75%
2004	20	9.60%	8.10%	6.74%	1.35%
1999	25	7.61%	7.23%	6.01%	1.22%
1994	30	8.52%	9.02%	7.51%	1.51%
1989	35		16.30%	13.07%	3.22%
1988	36		14.53%	12.00%	2.53%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 7.00, 11.19 and 13.83. The corresponding 10 year ratios are 6.80, 8.92 and 10.92. The corresponding historical ratios are 8.31, 11.59 and 15.18. The current ratio is 7.71 based on a stock price of $76.00 and EPS estimate for 2025 of $9.86. 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 6.47, 9.93 and 12.96. The corresponding 10 year ratios are 6.09, 7.90 and 9.48. The corresponding historical ratios are 6.47, 9.85 and 12.55. The current ratio is 7.55 based on a stock price of $76.00 and AEPS estimate for 2025 of $10.07. 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 $146.96. The 10-year low, median, and high median Price/Graham Price Ratios are 0.44, 0.59 and 0.80. The current ratio is 0.52 based on a stock price of $76.00. 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 0.92. The current ratio is 0.80 based on a stock price of $76.00, Book Value of $5,804.5M and Book Value per Share of $95.32. 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 get a 10-year median Price/Cash Flow per Share Ratio of 5.39. The current ratio is 4.04 based on a stock price of $76.00, Cash Flow per Share estimate for 2025 of $18.80, and Cash Flow of $794M. The current ratio is 35% 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 1.21%. The current dividend yield is 1.53% based on dividends of $1.16 and a stock price of $76.00. The current dividend yield is 26% 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 0.84%. The current dividend yield is 1.53% based on dividends of $1.16 and a stock price of $76.00. The current dividend yield is 81% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

The 10-year median Price/Sales (Revenue) Ratio is 0.53. The current P/S Ratio is 0.46 based on Revenue estimate for 2025 of $10,033, Revenue per Share of $164.76 and a stock price of $76.00. 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, but might be cheap. The dividend yield testing is saying that the stock price is cheap. The P/S Ratio testing says that the stock price is relatively reasonable. Most, but not all, of the other testing is saying that the stock price is reasonable. The Price/Cash Flow Ratio test is saying that the stock price is relatively cheap.

When I look at analysts’ recommendations, I find Strong Buy (3), and Hold (3). The consensus would be a Buy. The 12 month stock price consensus is $81.67 with a high of $87.00 and low of $78.00. The consensus stock price of $81.67 implies a total return of 8.99% with 7.46% from capital gains and 1.53% from dividends based on a current stock price of $76.00.

This stock seemed to be a buy or top pick on Stock Chase when the stock price was below $50.00. Amy Legate-Wolfe on Motley Fool was recommending this stock as a good deal when it was trading around $62.00. The company put out a press release via Global Newswire about their results for 2024. The company put out a press release via Global Newswire about their second quarter of 2025.

Simply Wall Street via Yahoo Finance and concludes that this business is worth watching in the long term. Simply Wall Street has two warnings out on this stock of large one-off items impacting financial results; and profit margins (2.1%) are lower than last year (5.8%).

Linamar Corp is a diversified world-wide 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 Monday, October 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 is: Dividend Growth Consumer. Results of stock price testing is that the stock price is probably still reasonable. Some Debt Ratios are good, but debt is too high. The Dividend Payout Ratios (DPR) are good. The current dividend yield is low with dividend growth good, but seems to be slowing down. See my spreadsheet on BRP Inc.

Is it a good company at a reasonable price? I have never been keen on stocks with low and negative book values. The dividend yield is so low you really are not getting much. The last annual increase was just over 2%. I would rather wait a bit to see what this stock does in the future before I would be positive about it. The current stock price could be reasonable, but it is close to the recent high.

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 a number of reasons for an earnings loss in 2025, compared to 2024. The revenue went down but the percentage of expenses compared to revenue went up. Foreign Exchange loss on long-term debt went up a lot. There was also a bigger loss from discontinued operations in 2025 compared to 2024. Also, this stock has an annual reporting date of January 31 each year and I am looking at the financials for January 31, 2025.

The dividend increases were quite good until this year. The 5 year dividend increase for the last 5 years was 16%. If this continued, what sort of dividends would you get in the future? This chart is an attempt to show this. If dividends continue to increase by 16% as they have in the past 5 years, what you would get in dividends in 5, 10 and 15 years is shown in the Dividends Paid (Div Pd) column. The next column shows what your yield on the current stock price of $87.97 would be. The last column shows the percentage of your stock’s price would be covered by dividends in 5, 10 and 15 years.

Div Pd	Div Yield	Years	At IRR	Div Cov
$1.81	2.05%	5	16.00%	6.72%
$3.79	4.31%	10	16.00%	18.79%
$7.96	9.05%	15	16.00%	44.12%

However, the dividend increase for this year is a lot lower at 2.38%. If this continues the above chart would be different and look like the following one.

Div Pd	Div Yield	Years	At IRR	Div Cov
$0.97	1.10%	5	2.38%	5.13%
$1.09	1.24%	10	2.38%	9.79%
$1.22	1.39%	15	2.38%	15.04%

If you had invested in this company in December 2014, for $1,013.88 you would have bought 51 shares at $19.88 per share. In December 2024, after 10 years you would have received $195.33 in dividends. The stock would be worth $3,733.71. Your total return would have been $3,929.04. This would be a total return of 12.50% per year with 11.70% from capital gain and 0.79% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$19.88	$1,013.88	51	10	$195.33	$3,733.71	$3,929.04

The current dividend yield is low with dividend growth good, but seems to be slowing down. The current dividend yield is low (below 2%) at 0.98%. Dividends have only been paid for 7 years, so the 5 and 7 year median dividend yields are also low at 0.69%. The dividend growth is good (15% per year or higher) at 16% per year over the past 5 years. The last dividend increase was in 2025 and it was for 2.38%.

The Dividend Payout Ratios (DPR) are good. The DPR for 2024 for Earnings per Share (EPS) is non-calculable due to an earnings loss with 5 year coverage good at 9%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is good at 18% with 5 year coverage at 7%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 7% with 5 year coverage at 3%. The DPR for 2024 for Free Cash Flow (FCF) is good at 9% with 5 year coverage at 9%.

Item	Cur	5 Years
EPS	0.00%	9.22%
AEPS	17.95%	7.40%
CFPS	7.43%	3.39%
FCF	9.10%	8.72%

Some Debt Ratios are good, but debt is too high. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.54 and currently at 0.45. The Liquidity Ratio for 2024 is low at 1.31 and 1.34 currently. If you added in Cash Flow after dividends, the ratios are fine at 1.57 and currently at 1.64. The Debt Ratio for 2024 is good at 1.68 and 1.68 currently. The Leverage and Debt/Equity Ratios for 2024 are far too high at 25.50 and 24.50 and currently at 12.74 and 11.74. This is because book value was negative in the past and is currently very low.

Type	Year End	Ratio Curr
Lg Term R	0.54	0.45
Intang/GW	0.11	0.10
Liquidity	1.31	1.34
Liq. + CF	1.57	1.64
Liq. CF WC	1.61	1.64
Debt Ratio	1.04	1.09
Leverage	25.50	12.74
D/E Ratio	24.50	11.74

The Total Return per year is shown below for years of 5 to 11 to the end of 2024. 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.
2019	5	16.00%	5.21%	4.35%	0.82%
2014	10	14.78%	12.50%	11.70%	0.85%
2013	11	14.78%	9.04%	8.40%	7.87%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 7.06, 10.60 and 12.87. The corresponding 10 year ratios are 8.66, 12.17 and 15.13. The corresponding historical ratios are 9.21, 13.49 and 18.16. The current ratio is 16.28 based on a stock price of $87.97 and EPS estimate for 2026 of $5.40. 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 Earnings per Share (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 17.02. The corresponding historical ratios are 9.30, 13.32 and 17.18. The current ratio is 19.86 based on a stock price of $87.97 and AEPS estimate for 2026 of $4.43. 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 get a Graham Price of $25.96. The 10-year low, median, and high median Price/Graham Price Ratios are 11.86, 29.39 and 39.59. The current ratio is 3.39 based on a stock price of $87.97. 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 negative 8.86. We cannot do any testing here with a negative P/B Value. The current ratio is 13.02 based on a Book Value of $493.6M, Book Value per Share of 6.76 and a stock price of $87.97. A normal value would be around 1.50. The P/B Ratio is very high because the company used to have a negative book value and currently it is positive but really low.

I get a 10-year median Price/Cash Flow per Share Ratio of 7.72. The current ratio is 8.18 based on a Cash Flow per Share estimate for 2026 of $10.75, Cash Flow of $785M and a stock price of $87.97. The current ratio is 6% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get an historical median dividend yield of 0.69%. The current dividend yield is 0.98% based on dividends of $0.86 and a stock price of $87.97. The current yield is 42% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap. Note dividends have only been given for 7 years, so the 7 year and historical median dividend yield is the same.

The 10-year median Price/Sales (Revenue) Ratio is 0.76. The current P/S Ratio is 0.78 based on revenue estimate for 2026 of $8,217M, Revenue per Share of $112.51 and a stock price of $87.97. The current ratio is 2% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

Results of stock price testing is that the stock price is probably still reasonable. The dividend yield test says it is cheap. The P/S Ratio test does not confirm this and says it is reasonable but above the median. Most of the rest of the testing is saying it is reasonable, but above the median or expensive. This is why I do not think this stock is cheap. I could, of course, be wrong on this.

When I look at analysts’ recommendations, I find Strong Buy (5), Buy (4) and Hold (8). The consensus is a Buy. The 12 month stock price is $100.53 with a high of $114.00 and low of $90.00. The consensus stock price of $100.53 implies a total return of 15.26% with 14.28% from capital gains and 0.98% from dividends based on a current stock price of $87.97.

Analysts on Stock Chase have no entries for 2025. In 2024 analysts have different reactions with some thinking this stock is a buy and other that it is not. Amy Legate-Wolfe on Motley Fool thinks this stock has been given a bad rap and you should buy. Jitendra Parashar on Motley Fool thinks this stock will be good for the long-term. The company put out a press release via newswire about their fourth quarter results ending January 2025. The company put out a press release via newswire about their second quarter of 2026 results ending in July 2025.

Simply Wall Street via Yahoo Financial reviews this stock and talks about the recent surge in the stock price and their recent equity offering. Simply Wall Street has 3 warnings out on this stock of interest payments are not well covered by earnings; large one-off items impacting financial results; and profit margins (2.6%) are lower than last year (5.4%).

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 (after shuttering the Evinrude outboard engine business in 2020) and offers clothing, parts, and accessories that cater to its core consumers. 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, October 3, 2025 around 5 pm. Tomorrow on my other blog I will write about Something to Buy October 2025.... learn more on Thursday, October 2, 2025 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 Dominion by Tom Holland learn more...

K-Bro Linen Inc

Sound bite for Twitter is: Dividend Paying Consumer. Results of stock price testing is that the stock price is reasonable, but it could be cheap. Debt Ratios are fine, but debt is going up. 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? Currently, it would not be a stock I would be interested in. I like dividend growth companies and this is no one. The stock price has been rather flat lately, but I do realize that analysts do expect it to rise quite well over the next year. My stock price testing points to a rather cheap current price.

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 recently have started to use an Adjusted Earnings per Share value. A lot of companies are going that way. After two years of stock price rises, this stock is down by 6% so far this year. This company used to be an income trust and as such had a high dividend yield. Income Trust companies can pay out a lot more in dividends or distributions than corporations can. All the old income trust companies are having a hard time getting their dividends at the right level.

Note that the P/E Ratios and P/AEPS Ratios are quite high. This can occur, as in this case, when the EPS and AEPS goes down, but because of what the market thinks of the company, the stock price may not go down very far, and so you end up with high P/E and P/AEPS Ratios. For this sort of company, a ratio of 20.00 would be considered a high ratio but the 5 year P/E Ratios are 41.67, 49.35 and 57.04 for the low, median, and high ratios. The P/E Ratio went as high as 99.92 in 2022.

If you had invested in this company in December 2014, for $1,014.42 you would have bought 22 shares at $46.11 per share. In December 2024, after 10 years you would have received $264 in dividends. The stock would be worth $833.36. Your total return would have been $1,097.36. This would be a total return of 0.89% per year with 1.95% from capital loss and 2.83% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$46.11	$1,014.42	22	10	$264.00	$833.36	$1,097.36

The current dividend yield is moderate with dividend growth non-existent. The current dividend is moderate (2% to 4% ranges) at 3.38%. The 5, 10 and historical dividend yields are also moderate at 3.43%, 3.25% and 3.62%. This company used to be an income trust and therefore had some high yields in the past. Dividend have been flat since 2014. They would probably need to get them down in terms of DPR to do any increase in dividends.

The Dividend Payout Ratios (DPR) are fine. The DPR for 2024 for Earnings per Share (EPS) is high at 68% with 5 year coverage very high at 121%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is good at 40% with 5 year coverage high at 58%. The DPR for 2024 for Distributable Cash Flow (DCF) is good at 32% with 5 year coverage at 45%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 23% with 5 year coverage at 30%. The DPR for 2024 for Free Cash Flow (FCF) is good at 36% with 5 year coverage at 42%. There is no agreement on FCF, but values are similar in 2024 varying from $31M to $35M.

Item	Cur	5 Years
EPS	67.80%	121.46%
AESP	39.79%	58.37%
DCF	32.00%	45.11%
CFPS	23.35%	30.36%
FCF	36.25%	41.86%

Debt Ratios are fine, but debt is going up. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.31 and currently high at 0.66. It is best when this ratio is 0.50 or lower. The Liquidity Ratio for 2024 is good at 1.95 and 1.86 currently. The Debt Ratio for 2024 is good at 1.76 and 1.61 currently. The Leverage and Debt/Equity Ratios for 2024 are fine at 2.31 and 1.31 and currently at 2.63 and 1.63.

Type	Year End	Ratio Curr
Lg Term R	0.31	0.66
Intang/GW	0.25	0.56
Liquidity	1.95	1.86
Liq. + CF	2.59	2.33
Debt Ratio	1.76	1.61
Leverage	2.31	2.63
D/E Ratio	1.31	1.63

The Total Return per year is shown below for years of 5 to 20 to the end of 2024. 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.
2019	5	0.00%	0.91%	-2.07%	2.97%
2014	10	0.00%	0.89%	-1.95%	2.83%
2009	15	0.58%	13.11%	7.13%	5.98%
2004	20	0.80%	12.56%	6.06%	6.50%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 41.67, 49.35 and 57.04. The corresponding 10 year ratios are 36.48, 42.73 and 48.98. The corresponding historical ratios are 19.60, 21.70 and 24.80. The current ratio is 18.73 based on a stock price of $35.55 and EPS estimate for 2025 of $1.90. The ratios are high because earnings were low from 2020 to 2022 inclusive. The current ratio is below the low ratio of the 10 year median ratio. It is also below the low ratio of the historical median ratios. This stock price testing suggests that the stock price is relatively cheap.

I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 41.67, 49.35 and 57.04. The corresponding 10 year ratios are 36.48, 42.73 and 49.98. The current P/AEPS Ratio is 16.77 based on a stock price of $35.55 and AEPS estimate for 2025 of $2.12. The ratios are high because earnings were low from2020 to 2022 inclusive. The current ratio is below the low ratio of the 10 year median ratio. It is also below the low ratio of the historical median ratios. This stock price testing suggests that the stock price is relatively cheap.

I also have Distributable Cash Flow (DC) data. The 5-year low, median, and high median Price/ Distributable Cash Flow Ratios are 8.95, 11.89 and 15.58. The corresponding 10 year ratios are 13.27, 15.55 and 17.74. The corresponding historical ratios are 9.28, 11.18 and 13.43. The current P/DC Ratio is 8.27 based on a stock price of $35.55 and DC estimate for 2025 of $4.30. 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 $31.62. 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 1.12 based on a stock price of $35.55. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.

I get a 10-year median Price/Book Value per Share Ratio of 2.00. The current ratio is 1.70 based on current Book Value of $272.3M, Book Value per share of $20.96 and a stock price of $35.50. The current ratio is 15% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I also have a Book Value per Share estimate for 2025 of $23.34. This implies a Book Value of $303M and a ratio of 1.52 with a stock price of $35.50. The current ratio is 24% 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 13.22. The current ratio is 6.10 based Cash Flow per Share estimate for 2025 of $5.83, Cash Flow of $75.7M and a stock price of $35.50. The current ratio is 54% 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 3.38% based on a stock price of $35.50 and dividends of $1.20. The current dividend yield is 7% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get an historical median dividend yield of 3.25%. The current dividend yield is 3.38% based on a stock price of $35.50 and dividends of $1.20. The current dividend yield is 3.9% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.

The 10-year median Price/Sales (Revenue) Ratio is 1.76. The current P/S Ratio is 0.93 based on Revenue estimate for 2025 of $496.2M, Revenue per Share of $38.20 and a stock price of $35.50. 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 reasonable, but it could be cheap. The dividend testing, especially the 10 year one says that stock price is reasonable. The problem with the dividend testing is that dividends are flat due to the fact that this stock used to be an income trust, which all have problems resetting dividends appropriately. The P/S Ratio test says that the stock price is cheap. The rest of the testing is saying that the stock price is relatively 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 stock price consensus is $50.67 with a high of $55.00 and low of $48.00. The consensus stock price of $50.67 implies a total return of 45.91% with 42.53% from capital gains and 3.38% from dividends based on a current stock price of $35.55.

There are two entries on Stock Chase for 2025 and both are top picks. They like this stock and comment on their recent UK acquisition. Aditya Raghunath on Motley Fool and talks about recent acquisition. Brian Paradza on Motley Fool says this business is boring but profitable. The company put out a Press Release about their fourth quarter of 2024. The company put out a press release via Newswire about their second quarter of 2025.

Simply Wall Street via Yahoo Finance reviews this stock. They say it covers all the check boxes for an income stock. Simply Wall Street has 3 warnings out on this stock of debt is not well covered by operating cash flow; large one-off items impacting financial results; and shareholders have been diluted in the past year. Note companies use Adjusted Earnings per Share because large one-off items.

K-Bro Linen Inc is a healthcare and hospitality laundry and linen processor in Canada. It operates in cities across Canada, and has two distribution centers, providing management services and laundry processing of hospitality, healthcare, and specialty linens. 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 Wednesday, October 1, 2025 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks October 2025 … learn more on Tuesday, September 30, 2025 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.