Leon's Furniture Ltd

Sound bite for Twitter is: Dividend growth Consumer. Results of stock price testing is that the stock price is probably reasonable. Debt Ratios are fine. The Dividend Payout Ratios (DPR) are good. The current dividend yield is moderate with dividend growth low. See my spreadsheet on Leon's Furniture Ltd.

Is it a good company at a reasonable price? This is a relatively small company. It is a Canadian company that is not well followed, but is rated at a Medium Risk. It has a reasonable rate of return. It can provide diversification. It is generally a good idea to buy companies over a number of years. I plan to hold on to the shares that I have. The current stock price seems at a reasonable level.

I own this stock of Leon's Furniture Ltd (TSX-LNF, OTC-LEFUF). I had some money in 2006 and this stock has been on MPL Communication's Investor Reporter list for some time. It was also on Mike Higgs' Dividend Growth Stock list. I bought some in 2006 and then some more in 2008, 2009, 2010,2013,2019 and 2022.

When I was updating my spreadsheet, I noticed that I have had this company for over 18 years. I bought shares over a number of years. I have a total return of 8.03% with 4.57% from capital gains and 3.46% from dividends. This is a decent rate of return.

If you had invested in this company in December 2014, for $1,002.40 you would have bought 56 shares at $17.90 per share. In December 2024, after 10 years you would have received $397.04 in dividends. The stock would be worth $1,004.08. Your total return would have been $1,401.12. This would be a total return of 3.86% per year with 0.02% from capital gain and 3.84% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$17.90	$1,002.40	56	10	$397.04	$1,004.08	$1,401.12

The current dividend yield is moderate with dividend growth low. The current dividend yield is moderate (2% to 4% ranges) at 3.51%. The 5, 10 and historical dividend yields are also moderate at 3.19%, 3.06% and 2.29%. The dividend growth is low (below 8% per year) at 5.7% per year over the past 5 years. The last dividend increase was in 2024 and the increase was for 11%. This company does not raise the dividends every year. For the last 36 years, they have raised the dividends 21 times and there has been no decreases.

The Dividend Payout Ratios (DPR) are good. The DPR for 2024 for Earnings per Share (EPS) is good at 33% with 5 year coverage at 41%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is good at 33% with 5 year coverage at 28%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 25% with 5 year coverage at 27%. The DPR for 2024 for Free Cash Flow (FCF) is good at 30% with 5 year coverage at 31%. (There is no agreement on what FCF is.)

Item	Cur	5 Years
EPS	33.04%	41.44%
AEPS	33.64%	28.28%
CFPS	24.52%	27.21%
FCF	29.65%	31.25%

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.06 and currently at 0.06. The Liquidity Ratio for 2024 is low at 1.43 and 1.43 currently. If you added in Cash Flow after dividends, the ratios are fine at 1.87 and currently at 1.69. The Debt Ratio for 2024 is good at 1.95 and 1.95 currently. The Leverage and Debt/Equity Ratios for 2024 are fine at 2.05 and 1.05 and currently at 2.05 and 1.05.

Type	Year End	Ratio Curr
Lg Term R	0.06	0.05
Intang/GW	0.54	0.43
Liquidity	1.43	1.43
Liq. + CF	1.87	1.69
Debt Ratio	1.95	1.95
Leverage	2.05	2.05
D/E Ratio	1.05	1.05

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	5.73%	7.24%	1.47%	5.77%
2014	10	6.35%	3.86%	0.02%	3.84%
2009	15	6.69%	7.83%	3.63%	4.19%
2004	20	7.18%	7.58%	3.60%	3.98%
1999	25	9.04%	8.71%	4.65%	4.05%
1994	30	9.78%	10.61%	6.14%	4.47%
1989	35	8.89%	11.18%	6.87%	4.31%
1988	36	8.64%	11.60%	7.17%	4.43%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 6.30, 8.85, 10.00. The corresponding historical ratios are 9.49, 11.00 and 12.52. The corresponding historical ratios are 11.99, 14.53 and 15.98. The current P/S Ratio is 11.29 based on a stock price of $22.77 and EPS estimate for 2025 of $2.02. The current ratio is between the median and high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I also have Adjusted Earning per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 641, 8.92 and 10.12. The corresponding historical ratios are 9.41, 10.91 and 12.40. The corresponding historical ratios are 11.63, 13.67 and 15.33. The current P/AEPS is 11.39 based on a stock price of $22.77 and AEPS estimate for 2025 of $2.00. The current ratio is between the median and high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a Graham Price of $27.44. The 10-year low, median, and high median Price/Graham Price Ratios are 0.79, 0.89 and 1.00. The current P/GP Ratio is 0.83 based on a stock price of $22.77. This ratio is between and low and median ratios of the 10 year 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 1.50. The current P/B Ratio is 1.36 based on a stock price of $22.77, Book Value of $1,141M and Book Value per Share of $16.73. The current ratio is 9% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10-year median Price/Cash Flow per Share Ratio of 6.27. The current ratio is 6.76 based on Cash Flow per Share estimate for 2025 of $3.37, Cash Flow of $230M, and a stock price of $22.77. The current ratio is 8% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get an historical median dividend yield of 2.29%. The current dividend yield is 3.51% based on dividends of $0.80 and a stock price of $22.77. The current dividend yield is 53% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median dividend yield of 3.06%. The current dividend yield is 3.51% based on dividends of $0.80 and a stock price of $22.77. The current dividend yield is 15% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively cheap. 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 0.56. The current P/S Ratio is 0.61 based on Revenue estimate for 2025 of $2,527M, Revenue per Share of $37.06 and a stock price of $22.77. The current ratio is 11% 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 reasonable. The 10 year dividend yield test says that the stock price is reasonable and below the median. The P/S Ratio test says that the stock price is reasonable but above the median. The rest of the testing is showing the stock price as reasonable and below and above the median.

When I look at analysts’ recommendations, I find Strong Buy (2), Buy (2) and Hold (3). The consensus would be a Buy. The 12 month stock price consensus is $33.29 with a high of $50.00 and low of $27.00. The consensus stock price of $33.29 implies a total return of 49.71% with 46.20% from capital gains and 3.51% from dividends based on a current stock price of $22.77.

The latest remarks on Stock Chase are dated in 2023. There were some buys and some holds. One analyst complained it was a cyclical business. Joey Frenette on Motley Fool thinks Leon’s is a well-run company and it is cheap. Joey Frenette on Motley Fool also reviewed this company in 2024. He seems to be the only one in Motley Fool looking at this company. The company put out a press release via Newsfile about their fourth quarter of 2024 results.

Simply Wall Street via Yahoo Finance reviews this stock. They list two risks of earnings are forecast to decline by an average of 2.2% per year for the next 3 years; and unstable dividend track record. They do not have an unstable dividend track record, but the dividends are paid in CDN$. Simply Wall Street confuses dividends paid in non-US$ with instability.

Leon's Furniture Ltd is a Canada-based retailer which is involved in the sale of home furnishing, mattresses, appliances, and electronics. The firm is also the country's commercial retailer of appliances to builders, developers, hotels, and property management companies. Its web site is here Leon's Furniture Ltd.

The last stock I wrote about was about was Supremex Inc (TSX-SXP, OTC-SUMXF) ... learn more. The next stock I will write about will be Barrick Gold Corp (TSX-ABX, NYSE-GOLD) ... learn more on Friday, April 15, 2025 around 5 pm. Tomorrow on my other blog I will write about Taming My Lizard Brain.... learn more on Thursday, April 17, 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.

Supremex Inc

Sound bite for Twitter is: Dividend Growth Materials. Results of stock price testing is that the stock price is probably cheap. Debt Ratios are fine. The Dividend Payout Ratios (DPR) are good. The current dividend yield is good with dividend growth restarted. See my spreadsheet on Supremex Inc.

Is it a good company at a reasonable price? I bought this small cap with my fooling around money. It has a high risk level mainly because it is a small cap. I plan to hold on to this stock and maybe in the future buy more. This stock is testing as relatively cheap.

I own this stock of Supremex Inc (TSX-SXP, OTC-SUMXF). I read about it in Money Sense article of 15 Stocks to help investors ride market swings by Michael Pe on Mar 4, 2018 . They were an envelope company, but are diversifying into packaging.

When I was updating my spreadsheet, I noticed I have had this stock for just under 5 years and I have made 10.01% per year with 7.77% from capital gains and 2.24% from dividends. They an EPS loss in 2024 because of an asset impairment charge.

If you had invested in this company in December 2014, for $1,001.66 you would have bought 319 shares at $3.14 per share. In December 2024, after 10 years you would have received $559.85 in dividends. The stock would be worth $1,196.25. Your total return would have been $1,756.10. This would be a total return of 7.23% per year with 1.79% from capital gain and 5.44% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$3.14	$1,001.66	319	10	$559.85	$1,196.25	$1,756.10

The current dividend yield is good with dividend growth restarted. The current dividend yield is good (5% to 6% ranges) at 5.42%. The 5 and 10 median dividend yields are moderate (2% to 4% ranges) at 3.09% and 4.12%. The historical median dividend yield is good at 6.52%. The last dividend increase was for 25% and it occurred in 2024. Dividends were cut for two years of 2012 and 2022. They were restarted in 2023.

The Dividend Payout Ratios (DPR) are good. The DPR for 2024 for Earnings per Share (EPS) is non-calculable because of an earnings loss with 5 year coverage good at 27%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is good at 35% with 5 year coverage at 20%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 15% with 5 year coverage at 9%. The DPR for 2024 for Free Cash Flow (FCF) is good at 13% with 5 year coverage at 10%. There is some agreement on what the FCF is.

Item	Cur	5 Years
EPS	0.00%	26.95%
AEPS	35.42%	19.87%
CFPS	14.99%	9.23%
FCF	13.30%	9.76%

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.47 and currently at 0.47. The Liquidity Ratio for 2024 is good at 2.45 and 2.45 currently. The Debt Ratio for 2024 is good at 1.94 and 1.94 currently. The Leverage and Debt/Equity Ratios for 2024 are fine at 2.06 and 1.06 and currently at 2.06 and 1.06.

Type	Year End	Ratio Curr
Lg Term R	0.47	0.47
Intang/GW	0.78	0.79
Liquidity	2.45	2.45
Liq. + CF	3.06	3.38
Debt Ratio	1.94	1.94
Leverage	2.06	2.06
D/E Ratio	1.06	1.06

The Total Return per year is shown below for years of 5 to 18 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	-11.65%	13.02%	9.15%	3.87%
2014	10	0.74%	7.23%	1.79%	5.44%
2009	15	-13.10%	8.45%	2.88%	5.57%
2006	18	-11.65%	0.70%	-4.43%	5.12%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 3.19, 4.01, 5.45. The corresponding 10 year ratios are 4.78, 7.60 and 9.91. The corresponding historical ratios are 4.60, 6.72 and 9.25. The current P/E Ratio is 6.25 based on a stock price of $3.69 and EPS estimate for 2025 of $0.59. The current ratio is between the low and median ratio 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/Earnings per Share Ratios are 2.89, 4.49 and 6.18. The corresponding 10 year ratios are 6.36, 8.26 and 9.80. The corresponding historical ratios are 4.84, 7.26 and 9.49. The current P/AEPS Ratio is 5.77 based on a stock price of $3.69 and AEPS estimate for 2025 of $0.64. The current ratio is below the low ratio for the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $8.21. The 10-year low, median, and high median Price/Graham Price Ratios are 0.46, 0.63 and 0.86. The current ratio is 0.45 based on a stock price 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 get a 10-year median Price/Book Value per Share Ratio of 1.10. The current ratio is 0.79 based on a Book Value of $114.97M, Book Value per Share of $4.68 and a stock price of $3.69. The current ratio is 28% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get a 10-year median Price/Cash Flow per Share Ratio of 4.22. The current P/CF Ratio is 1.96 based on a stock price of $3.69, Cash Flow per Share estimate for 2025 of $1.88 and Cash Flow of $46.2M. The current ratio is 53% 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 6.52%. The current dividend yield is 5.42% based on a stock price of $3.69 and dividends of $0.20. The current dividend yield is 17% 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 company used to be an income trust, and income trusts had high dividend yields.

I get a 10 year median dividend yield of 4.12%. The current dividend yield is 5.42% based on a stock price of $3.69 and dividends of $0.20. The current dividend yield is 32% 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 0.46. The current P/S Ratio is 0.32 based on Revenue estimate for 2025 of $282M, Revenue per Share of $11.47 and a stock price of $3.69. The current ratio is 31% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

Results of stock price testing is that the stock price is probably cheap. The 10 year median dividend yield says that the stock price is cheap. There is a problem with a dividend cut, but also this company used to be an income trust that those sorts of companies had high dividends. The P/S Ratio testing confirms the cheap price. Most of the rest of the testing is showing that the stock price is relatively cheap.

When I look at analysts’ recommendations, I find Buy (2). The consensus would be a Buy. The 12 months consensus stock price is $5.00 with the High of $5.00 and low of $5.00. The consensus stock price of $5.00 implies a total return of 40.92% with 35.50% from capital gains and 5.42% from dividends based on a current stock price of $3.69.

This stock is not much followed but one analyst in 2024 says on Stock Chase to sell. Company missed their estimates and has declining profits and revenue. Analysts liked it better in 2023. Amy Legate-Wolfe on Motley Fool in 2023 says that Analyst Matthew Lee see softness in 2024, but that investors should not ignore this stock. Aditya Raghunath on Motley Fool in 2023 said that the stock was affordable and has great potential. The company put out a press release via Global Newswire about their fourth quarter for 2024.

Simply Wall Street via Yahoo Finance says this is a small cap TSX stock to watch. Simply Wall Street via Yahoo Finance reviews this stock. Simply Wall Street has 3 warnings out on this stock of earnings have declined by 2.7% per year over past 5 years; does not have a meaningful market cap (CA$93M); and dividend of 5.42% is not well covered by earnings.

Supremex Inc is engaged in the manufacturing and marketing of envelopes and is a growing provider of paper-based packaging solutions and specialty products. The majority of its revenue is derived from its business in Canada. Its web site is here Supremex Inc.

The last stock I wrote about was about was Alaris Equity Partners Income Trust (TSX-AD.UN, OTC-ALARF) ... learn more. The next stock I will write about will be Leon's Furniture Ltd (TSX-LNF, OTC-LEFUF) ... learn more on Wednesday, April 16, 2025 around 5 pm. Tomorrow on my other blog I will write about Jim Balsillie Interview.... learn more on Tuesday, April 15, 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.

Alaris Equity Partners Income Trust

Sound bite for Twitter is: Dividend Growth Financial. Results of stock price testing is that the stock price is testing reasonable, but could be cheap. Debt Ratios are good. The Dividend Payout Ratios (DPR) are probably fine. The current dividend yield is high with dividend growth restarted, sort of. See my spreadsheet on Alaris Equity Partners Income Trust.

Is it a good company at a reasonable price? This stock has a very high dividend and most of the money earned will probably be in dividends. This is a smallish company and I bought it for my Tax Free Savings Account with my fooling around money. I do not have much of this company and I plan to hold on to the shares I have. They do say that they will adjust the dividends each year depending on what they feel they can pay, so they probably do not look at the decrease in dividends in 2020 as a decrease, but as an adjustment. Most of my testing is pointing to the stock price as being cheap.

I own this stock of Alaris Equity Partners Income Trust (TSX-AD.UN, OTC-ALARF). This is a stock that Dividends in Hand Blogger had bought in July 2016. It was also recommended by Acumen Capital report in a report by Brian Pow and Oliver Shao via Investor’s Digest. The Blogger Dividends in Hand sold his position in this company in April 29, 2020.

When I was updating my spreadsheet, I noticed I have had this stock for 7.7 years and I have made a total return of 8.16% with 0.78% from capital gains and 7.38% from dividends. This is a stock in the Tax Free Account which I bought with fooling around money.

They had high EPS this year, but the increase was due to Foreign Exchange, and also on the gain on a subsidiary it no longer includes in their accounts. These are unlikely to be repeated in other years. The gain on foreign Exchange last year was $2.5M, but was $80.8M this year.

I notice that every officer and director that I follow, included CEO or Chairman, have increased their shares over the past year. This is seldom seen.

If you had invested in this company in December 2014, for $1,025.44 you would have bought 29 shares at $35.36 per share. In December 2024, after 10 years you would have received $421.01 in dividends. The stock would be worth $555.35. Your total return would have been $976.36. This would be a total loss of 0.61% per year with 5.95% from capital loss and 5.34% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$35.36	$1,025.44	29	10	$421.01	$555.35	$976.36

The current dividend yield is high with dividend growth restarted, sort of. The current dividend yield is high (7% and higher) at 7.71%. The 5, 10 and historical median dividend yields are also high at 7.69%, 7.68% and 7.57%. Dividends are down over the past 5 years by 3.8% per year. Dividends were cut in 2020 by 30%. Over the past 15 years, dividends were increased 11 times and decreased 2 times. The rest of the time they were flat. Dividends were increase in year 2021 to 2023, but not since. The last dividend increase was in 2023 and it was for 3.03%.

The Dividend Payout Ratios (DPR) are probably fine. The DPR for 2024 for Earnings per Share (EPS) is good at 27% with 5 year coverage at 45%. The DPR for 2024 for Cash Flow per Share (CFPS) is high at 101% with 5 year coverage fine at 49%. The DPR for 2024 for Free Cash Flow (FCF) is too high at 160% with 5 year coverage still high at 62%.

Item	Cur	5 Years
EPS	26.77%	44.51%
CFPS	101.14%	48.50%
FCF	160.00%	62.16%

Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.07 and currently at 0.08. The Liquidity Ratio for 2024 is good at 2.49 and 2.49 currently. The Debt Ratio for 2024 is good at 12.28 and 12.28 currently. This ratio is high because they got rid of their debt. The Leverage and Debt/Equity Ratios for 2024 are good at 1.09 and 0.09 and currently at 1.09 and 0.09.

Type	Year End	Ratio Curr
Lg Term R	0.07	0.08
Intang/GW	0.00	0.00
Liquidity	2.49	2.49
Liq. + CF	2.38	4.55
Liq. + CF+D	2.60	2.93
Debt Ratio	12.28	12.28
Leverage	1.09	1.09
D/E Ratio	0.09	0.09

The Total Return per year is shown below for years of 5 to 17 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	-3.79%	3.50%	-2.67%	6.18%
2014	10	-0.77%	-0.61%	-5.95%	5.34%
2009	15	2.14%	16.22%	5.05%	11.17%
2006	17		12.77%	3.90%	8.88%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 4.73, 5.67 and 6.60. The corresponding 10 year ratios are 9.92, 12.40 and 14.88. The corresponding historical ratios are 9.93, 13.54 and 15.97. The current P/E Ratio is 8.28 based on a stock price of $17.64 and EPS estimate for 2025 of $2.13. 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 $34.02. The 10-year low, median, and high median Price/Graham Price Ratios are 0.55, 0.82 and 0.98. The current ratio is 0.52 based on a stock price of $17.65. 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 1.04. The current ratio is 0.73 based on a Book Value of $1,102M, Book Value per share of $24.15 and a stock price of $17.65. The current ratio is 30% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I also have a Book Value per Share estimate for 2025 of $25.15. This implies a ratio of 0.70 based on a stock price of $17.65 and Book Value of $1,147M. This ratio is 33% 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 9.06. The current ratio is 7.13 based on Cash Flow per Share estimate for 2025 of $2.48, Cash Flow of $112.9M and a stock price of $17.65. The current ratio is 21% 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 7.57%. The current dividend yield is 7.71% based on dividends of $1.36 and a stock price of $17.65. The current ratio is 1.9% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year median dividend yield of 7.68%. The current dividend yield is 7.71% based on dividends of $1.36 and a stock price of $17.65. The current ratio is 0.4% above the 10 year 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 5.71. The current ratio is 4.18 based on a stock price of 17.65, Revenue estimate for 2025 of $192.5M and Revenue per Share $4.22. The current ratio is 27% 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 testing reasonable, but could be cheap. Both the dividend yield testing is saying that the stock price is reasonable, but dividends have been cut recently. (However, dividends cuts are never good.) The P/S Ratio test is saying that the stock price is cheap, so it might be. The rest of the testing is also saying that the stock price is cheap.

When I look at analysts’ recommendations, I find Strong Buy (2), and Buy (3). The consensus would be a Strong Buy. The 12 month stock price consensus is $25.85, with a high of $27.50 and low of $24.00. The consensus stock price of $25.85 implies a total return of 54.25% with 46.54% from capital gains and 7.71% from dividends based on a current stock price of $17.64.

Last year when I looked at analysts’ recommendations, I found Strong Buy (2), Buy (3) and Hold (1). The consensus would be a Buy. The 12 month stock price consensus is $21.00 with a high of $24.50 and a low of $18.00. The consensus price of $21.00 implies a total return of 33.81% with 25.67% from capital gains and 8.14% from dividends based on a stock price of $16.71. What happened was 12 month stock price of $17.64 which was a total return of 13.71% with 5.57% from capital gains and 8.14% from dividends.

The only entry for this year on Stock Chase is a Do Not Buy because analyst did not like the fact that they payout most of the profit in distributions. Last entries were more positive and were mostly buys. Aditya Raghunath on Motley Fool says to invest in this cash generating stock. Adam Othman on Motley Fool thinks this stock is a screaming buy. The company put out a press release via Globe Newswire about their fourth quarter results for 2024.

Simply Wall Street via Yahoo Finance says this stock is in the Top 3 of TSX Dividend Stocks. Simply Wall Street has 2 warnings of earnings are forecast to decline by an average of 46.3% per year for the next 3 years; and dividend of 7.87% is not well covered by free cash flows.

Alaris Equity Partners Income Trust is an open-ended trust. The Trust, through its subsidiaries, indirectly provides alternative financing to private companies (Partners) in exchange for distributions with the principal objective of generating stable and predictable cash flows for payment of distributions to unitholders of the Trust. Its web site is here Alaris Equity Partners Income Trust.

The last stock I wrote about was about was Sun Life Financial Inc (TSX-SLF, NYSE-SLF) ... learn more. The next stock I will write about will be Supremex Inc (TSX-SXP, OTC-SUMXF) ... learn more on Monday, April 14, 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.

Sun Life Financial Inc

Yesterday I bought some Canadian Natural Resources (TSX-CNQ) for the TFSA account. This stock is even cheaper than when I bought it recently. I have room in the TFSA for another deposit from my Trading Account.

Sound bite for Twitter is: Dividend Growth Financial. Results of stock price testing is that the stock price is probably reasonable. Debt Ratios are fine. The Dividend Payout Ratios (DPR) are fine. The current dividend yield is moderate with dividend growth moderate. See my spreadsheet on Sun Life Financial Inc.

Is it a good company at a reasonable price? You would buy this company for diversification and because it would probably provide sold returns. I believe a sold return is around 8% per year over the longer term and this return would be split between capital gains and dividends. This stock has performed as I expected and I have happy with it. Currently the stock price is reasonable. Since we are probably in a bear market, there are probably better deals on stocks that have gone cheap with this bear market.

I own this stock of Sun Life Financial Inc (TSX-SLF, NYSE-SLF). I first bought this stock in 2000 when it was first demutualized. It was very cheap. I bought more in 2001, 2003 and 2006. This stock was on Mike Higgs' Canadian Dividend Growth stock list and on the other dividend lists that I followed.

When I was updating my spreadsheet, I noticed that I have done fine with this company. I have had this company for 25 years and I have made 8.09% per year with 4.66% from capital gains and 3.43% from dividends. This is basically what I would expect from an Life Insurance company.

If you had invested in this company in December 2014, for $1,006.08 you would have bought 24 shares at $41.92 per share. In December 2024, after 10 years you would have received $537 in dividends. The stock would be worth $2,048.70. Your total return would have been $2,585.40. This would be a total return of 11.12% per year with 7.37% from capital gain and 3.75% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$41.92	$1,006.08	24	10	$537.00	$2,048.40	$2,585.40

The current dividend yield is moderate with dividend growth moderate. The current dividend yield is moderate (2% to 4% range) at 4.27%. The 5, 10 and historical dividend yields are also moderate at 4.31%, 3.91% and 3.67%. The dividend growth is moderate (8% to 14% per year) at 9.1% per year over the past 5 years. The last dividend increase was in 2024 and it was for 3.7%. Note that there is often more than one increases a year for this company.

The Dividend Payout Ratios (DPR) are fine. The DPR for 2024 for Earnings per Share (EPS) is high but fine at 62% with 5 year coverage at 51%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is good at 48% with 5 year coverage at 44%. The DPR for 2024 for Cash Flow per Share (CFPS) is high at 73% with 5 year coverage fine at 44%. The DPR for 2024 for Free Cash Flow 1 (FCF 1) is non-calculable due to negative FCF with 5 year coverage too high at 947%. The DPR for 2024 for Free Cash Flow 2 (FCF 2) is good at 18% with 5 year coverage good at 17%. (There is great disagreement on FCF.)

Item	Cur	5 Years
EPS	61.60%	50.94%
AEPS	48.65%	43.64%
CFPS	73.44%	44.16%
FCF 1	-503.08%	946.55%
FCF 2	18.00%	17.03%

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2024 is high at 3.28 and currently at 3.68. However, we need also to look at the Long Term Debt/Covering Assets Ratio for 2024 which is good at 0.85 and currently at 0.85 because this is a more important ratio for a financial. The Liquidity Ratio for 2024 is good at 1.78 and 1.78 currently. The Debt Ratio for 2024 is low at 1.08 and 1.08 currently. This tends to be low for financials. The Leverage Ratio for 2024 are fine at 20.1% and currently at 20.1% as given by the company.

Type	Year End	Ratio Curr
Lg Term R+A	0.85	0.85
Lg Term R	3.28	3.68
Intang/GW	0.30	0.33
Liquidity	1.78	1.78
Liq. + CF	1.85	2.06
Debt Ratio	1.08	1.08
Leverage Co	20.1%	20.1%

The Total Return per year is shown below for years of 5 to 25 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	9.06%	10.66%	7.59%	3.07%
2014	10	8.45%	11.12%	7.37%	3.75%
2009	15	5.56%	11.05%	7.16%	3.89%
2004	20	6.86%	6.80%	3.84%	2.96%
1999	25	7.94%	12.42%	7.92%	4.51%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 10.36, 12.44 and 14.17. The corresponding 10 year ratio is 10.41, 12.15 and 13.69. The corresponding historical ratios are 11.51, 13.13 and 14.33. The current P/E Ratio is 11.34 based on a stock price of $78.67 and EPS estimate for 2025 of $6.94. 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.

I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Earnings per Share Ratios are 9.35, 10.31 and 11.84. The corresponding 10 year ratio is 9.43, 10.45 and 12.00. The corresponding historical ratios are 9.62, 11.07, and 12.41. The current P/AEPS Ratio is 10.73 based on a stock price of $78.67 and AEPS estimate for 2025 of $7.33. This ratio is between the median and high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a Graham Price of $81.55. The 10-year low, median, and high median Price/Graham Price Ratios are 0.73, 0.84 and 0.96. The current ratio is 0.99 based on a stock price of $78.67. 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 10-year median Price/Book Value per Share Ratio of 1.50. The current ratio is 1.95 based on a Book Value of $23,157, Book Value per Share of $40.35 and a stock price of $78.67. The current ratio is 30% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I also have Book Value per Share estimate for 2025 of $43.68, but this analyst calculated the Book Value differently than I do and under this method the 10 year Price/Book Value per Share Ratio of 1.28. The BVPS estimate of $43.68 implies a ratio of 1.80 with a stock price of $78.67 and a Book Value of $25,068. This ratio of 1.80 is 41% above the 10 year median ratio of 1.28. 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 7.65. The current ratio is 9.08 based on CFPS estimate for 2025 of $8.66, Cash Flow of $4,970 and a stock price of $78.67. The current ratio is 18.8% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get an historical median dividend yield of 3.67%. The current yield is 4.27% based on a stock price of $78.67 and dividends of $3.36. The current dividend yield is 16% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get an historical median dividend yield of 3.91%. The current yield is 4.27% based on a stock price of $78.67 and dividends of $3.36. The current dividend yield is 9% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.

The 10-year median Price/Sales (Revenue) Ratio is 0.97. The current ratio is 0.94% based on Revenue estimate for 2025 of $48,080, Revenue per Share of $83.78 and a stock price of $78.67. The current ratio is 3.6% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

Results of stock price testing is that the stock price is probably reasonable. The dividend yield tests say this and it is confirmed by the P/S Ratio test. The rest of the testing range from reasonable to expensive.

When I look at analysts’ recommendations, I find Strong Buy (4), Buy (6), and Hold (4). The consensus would be a Buy. The 12 months stock price consensus is $87.46 with a high of $96.00 and low of $72.00. the consensus 12 month stock price implies a total return of 15.44% with 11.17% from capital gains and 4.27% from dividends based on a current stock price of $78.67.

Analysts’ recommendations on Stock Chase varies for 2025 with earlier ones hold and latest one buy on weakness. Christopher Liew on Motley Fool believes this stock is a good investment with an attractive dividend yield. Kay Ng on Motley Fool says Sun Life offers a combination of stability and growth potential. The company put out a press release via Newswire about their results for their fourth quarter of 2025.

Zacks via Yahoo Finance reviews this stock and thinks investors should wait for a better entry point. Simply Wall Street has no warnings out on this stock.

Sun Life provides life insurance, retirement, and asset management products to individuals and corporate customers in Canada, the United States, and Asia. Its web site is here Sun Life Financial Inc.

The last stock I wrote about was about was Goodfellow Inc (TSX-GDL, OTC-GFELF) ... learn more. The next stock I will write about will be Alaris Equity Partners Income Trust (TSX-AD.UN, OTC-ALARF) ... learn more on Friday, April 11, 2025 around 5 pm. Tomorrow on my other blog I will write about Addicted to Conflict.... learn more on Thursday, April 11, 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.

Goodfellow Inc

Sound bite for Twitter is: Dividend Growth Consumer. Results of stock price testing is that the stock price is could be cheap. Debt Ratios are good. The Dividend Payout Ratios (DPR) are good. The current dividend yield is moderate with dividend growth current good. See my spreadsheet on Goodfellow Inc.

Is it a good company at a reasonable price? I realized when I bought this stock that I was taking a chance on it, but I wanted to buy some small companies to round out my portfolio which was in large cap stocks. I plan to keep the stock that I have. I am not buying more because I am not buying anything at present. A positive is the Simply Wall Street via Yahoo Finance has a positive report on this stock. Another positive is some insider buying. The current stock price could be cheap as is shown by the 10 year dividend yield test.

I own this stock of Goodfellow Inc (TSX-GDL, OTC-GFELF). I started to look at this stock when I was searching for small cap stocks that paid dividends. It looked like an interesting stock. Goodfellow is a small cap stock that the Investor Reporter has written about a number of times.

When I was updating my spreadsheet, I noticed that the Chairman and one Director that I follow have bought shares in the past year. Some shares by insiders were bought around $15.00 and others just above $14.00.

The current dividend yield is moderate with dividend growth current good. The current dividend yield is moderate (2% to 4% ranges) at 4.40%. The 5 year median dividend yield is good (5% to 6% ranges) at 6.57%. The 10 year and historical median dividend yields are moderate at 3.44% and 3.74%. The current dividend growth is good (15% and above) at 20% per year. Note they restarted dividends 5 years ago after two years of no dividends. This increase also includes a 50% dividend cut in 2024. The last dividend change was in 2024 and it was a dividend cut of 50%.

The Dividend Payout Ratios (DPR) are good. The DPR for 2024 for Earnings per Share (EPS) is good at 32% with 5 year coverage at 25%. The DPR for 2024 for Adjusted Funds from Operations (AFFO) is good at 15% with 5 year coverage at 15%. The DPR for 2024 for Cash Flow per Share (CFPS) is negative, due to negative cash flow in 2024 with 5 year coverage good at 25%. The DPR for 2024 for Free Cash Flow (FCF) is high at 84% with 5 year coverage good at 27%. (There is no agreement on what the FCF is)

Item	Cur	5 Years
EPS	31.65%	25.48%
AFFO	15.20%	15.39%
CFPS	-487.20%	25.38%
FCF	84.55%	26.60%

Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.00 and currently at 0.00. The Liquidity Ratio for 2024 is good at 3.28 and 3.28 currently. The Debt Ratio for 2024 is good at 3.41 and 3.41 currently. The Leverage and Debt/Equity Ratios for 2024 are good at 1.42 and 0.42 and currently at 1.42 and 0.42.

Type	Year End	Ratio Curr
Lg Term R	0.00	0.00
Intang/GW	0.01	0.01
Liquidity	3.28	3.28
Liq. + CF	3.07	3.07
Debt Ratio	3.41	3.41
Leverage	1.42	1.42
D/E Ratio	0.42	0.42

The Total Return per year is shown below for years of 5 to 33 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%	31.14%	20.76%	10.37%
2014	10	1.06%	6.69%	3.09%	3.60%
2009	15	0.70%	4.54%	1.17%	3.37%
2004	20	1.95%	4.70%	0.65%	4.05%
1999	25	5.22%	9.06%	3.53%	5.53%
1994	30	6.77%	14.44%	5.75%	8.69%
1991	33	8.90%	12.69%	5.60%	7.09%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 2.37, 3.76 and 5.22. The corresponding 10 year ratios are 4.52, 5.84 and 7.19. The corresponding historical ratios are 7.08, 8.05 and 10.12. The current P/E Ratio is 7.20 based on a stock price of $11.37 and EPS for the last 12 months of $1.58. The current ratio is above the high ratio of the 10 year median ratios. The 10 year median ratios imply that this stock price is expensive.

The current ratio of 7.20 is between the low and median ratios of the historical median ratios. Note that the 10 P/E Ratios are very low because of years of earnings losses. The 5 year ratios are low because of a couple of years of very high EPS. Generally speaking, a ratio of 10 or less is considered cheap. The current P/E Ratio compared to the 10 year P/E Ratio does not seem to be a good test.

I also have Adjusted Funds from Operations (AFFO) data. The 5-year low, median, and high median Price/Earnings per Share Ratios are 1.41, 1.81 and 2.51. The corresponding 10 year ratios are 3.66, 4.18 and 4.69. The current ratio is 3.46 based on AFFO for the last 12 months of $3.29 and a stock price of $11.37. 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 $29.44. The 10-year low, median, and high median Price/Graham Price Ratios are 0.42, 0.48 and 0.54. The current P/GP Ratio is 0.39 based on a stock price of $11.37. 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 10-year median Price/Book Value per Share Ratio of 0.57. The current P/B Ratio is 0.47 based on a Book Value of $206M, Book Value per Share of $24.38 and a stock price of $11.37. The current ratio is 18% 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 3.24. The current ratio is negative because of a negative cash flow for 2024. The P/CF Ratio test cannot be done.

However, I do have Cash Flow Without WC per Share. The 10 year median ratio is 4.16. The current ratio is 3.44 based on CF Without WC of $3.31. The current ratio is 17% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. (WC is Working Capital.)

I get an historical median dividend yield of 3.74%. The current dividend yield is 4.40% based on dividends of $0.50 and a stock price of $11.37. The current yield is 18% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year median dividend yield of 3.44%. The current dividend yield is 4.40% based on dividends of $0.50 and a stock price of $11.37. The current yield is 28% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap. This is surprising as the dividend were recently cut by 50%.

The 10-year median Price/Sales (Revenue) Ratio is 0.14. The current P/S Ratio is 0.19 based on Revenue for the last 12 months of $509.5M, Revenue per Share of $60.25 and a stock price of $11.37. The current ratio is 33% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. The problem here is declining revenue over the past two years.

Results of stock price testing is that the stock price is could be cheap. The 10 year dividend yield test says that the stock price is relatively cheap. A positive is that the Dividend Payout Ratios are currently reasonable. A problem is that the P/S Ratio test says that the stock price is relatively expensive because of declining Revenue. Other testing is showing the stock price a cheap or reasonable.

When I look at analysts’ recommendations, I find Strong Buy (1) only on WSJ. The consensus would be a Strong Buy. The 12 month stock price consensus is $11.10. This stock price of $11.10 implies a total return of 2.02% with a capital loss of 2.37% and dividends of 4.40%. All the other sites say there is no analyst’s recommendations. WSJ also shows old data of 2010.

This stock is not on Stock chase or on Motley Fool. Analysts are not following this stock. The company put out a press release via Global Newswire about their fourth quarter of 2024 results ending in November 2024.

Simply Wall Street via Yahoo Finance talks about insider buying. Simply Wall Street via Yahoo Finance reviews this stock and thinks it has potential of a Multi-Bagger. Simply Wall Street has two warnings out of does not have a meaningful market cap (CA$103M); and dividend of 4.1% is not well covered by free cash flows.

Goodfellow Inc is engaged in various business activities related to the remanufacturing and distribution of lumber and wood products. The majority of the company's revenue is generated from the sale of Lumber. The company operates in Canada and The United States; the majority of its revenue is generated from Canada. Its web site is here Goodfellow Inc.

The last stock I wrote about was about was Melcor Developments Inc (TSX-MRD, OTC-MODVF) ... learn more. The next stock I will write about will be Sun Life Financial Inc (TSX-SLF, NYSE-SLF) ... learn more on Wednesday, April 9, 2025 around 5 pm. Tomorrow on my other blog I will write about Credit Card Debt.... learn more on Tuesday, April 8, 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.

Melcor Developments Inc

Sound bite for Twitter is: Dividend Paying Real Estate. 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 moderate with dividend growth negative currently. See my spreadsheet on Melcor Developments Inc.

Is it a good company at a reasonable price? I have little in the way of investments in Western Canada. I still have faith I will make a reasonable return on my investment in this stock. I have not lost hope in it. The Trudeau family has always hated the west, especially Alberta. Maybe with a change in government in Ottawa this attitude will change. I plan to keep the shares I have. I do not have much invested in this stock. The price is relative cheap at present. I might buy more if it goes lower.

I own this stock of Melcor Developments Inc (TSX-MRD, OTC-MODVF). This was one of the stocks on Mike Higgs' list of good dividend growth stocks. I looked into it and bought it. I bought this stock first in 2008 and then some more in 2009. It is a little followed real estate company from Western Canada.

When I was updating my spreadsheet, I noticed I have had this stock for 17 years and I have a total return of 5.23% with 0.92% from capital gains and 4.31% from dividends. I bought stock in 2008 that I over paid for. If you look at the chart, the stock has been cyclical. It has two big peaks in 2007 and 2014 which it has yet to come close to since 2014.

I noticed that two of the Melton family sold shares over the past year. They were the CEO and Chairman, Timothy Charles Melton and an officer, Graeme Melton. I notice that the CFO bought shares in the past year.

If you had invested in this company in December 2014, for $1,002.15 you would have bought 51 shares at $19.65 per share. In December 2024, after 10 years you would have received $258.06 in dividends. The stock would be worth $657.90. Your total return would have been $915.96. This would be a total loss of 1.02%% per year with 4.12% from capital loss and 3.10% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$19.65	$1,002.15	51	10	$258.06	$657.90	$915.96

The current dividend yield is moderate with dividend growth negative currently. The current dividend yield is moderate (2% to 4% ranges) at 3.68%. The 5, 10 and historical median dividend yields are moderate at 3.68%, 3.69% and 2.96%. The dividends have declined over the past 5 years because of a dividend cut in 2024. Dividends have declined at 2.5% per year. The last dividend change was a dividend cut of 31% and it occurred in 2024.

The Dividend Payout Ratios (DPR) are good. The DPR for 2024 for Earnings per Share (EPS) is good at 14% with 5 year coverage at 15%. The DPR for 2024 for Funds from Operations (FFO) is good at 14% with 5 year coverage at 21%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 14% with 5 year coverage at 16%. The DPR for 2024 for Free Cash Flow (FCF) is good at 24% with 5 year coverage at 28%. There is no agreement on what the FCF is.

Item	Cur	5 Years
EPS	13.55%	15.03%
FFO	14.29%	20.85%
CFPS	14.23%	15.78%
FCF	23.80%	28.34%

Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2024 is high at 1.56 and currently at 1.63. However, we need also to look at the Long Term Debt/Covering Assets Ratio for 2024 which is good at 0.44 and currently at 0.44 because this is a important ratio for a Real Estate company. The Liquidity Ratio for 2024 is good at 3.96 and 3.96 currently. The Debt Ratio for 2024 is good at 2.36 and 2.36 currently. The Leverage and Debt/Equity Ratios for 2024 are good at 1.70 and 0.70 and currently at 1.70 and 0.70.

Type	Year End	Ratio Curr
Lg Term R+A	0.44	0.44
Lg Term R	1.56	1.63
Intang/GW	0.00	0.00
Liquidity	3.96	3.96
Liq. + CF	5.40	5.40
Debt Ratio	2.36	2.44
Leverage	1.70	1.70
D/E Ratio	0.70	0.70

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	-2.52%	3.05%	-0.64%	3.69%
2014	10	-2.72%	-1.02%	-4.12%	3.10%
2009	15	3.84%	5.20%	0.83%	4.37%
2004	20	6.71%	10.84%	4.75%	6.09%
1999	25	8.30%	16.42%	8.08%	8.34%
1994	30	9.36%	20.22%	8.90%	11.32%
1990	34	11.77%	16.56%	8.15%	8.42%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 5.44, 7.03 and 8.91. The corresponding 10 year ratios are 8.29, 9.29 and 10.60. The corresponding historical ratios are 6.28, 7.25 and 8.43. The current P/E Ratio is 6.60 based on a stock price of $11.95 and EPS estimate for 2025 of $1.81. The 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 Fund from Operations (FFO) data. The 5-year low, median, and high median Price/Earnings per Share Ratios are 3.62, 4.86 and 6.16. The corresponding 10 year ratios are 6.24, 7.85 and 9.45. The current ratio is 3.88 based on FFO for the last 12 months of $3.08 and a stock price of $11.95. This ratio is below the low ratio for the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $40.82. The 10-year low, median, and high median Price/Graham Price Ratios are 0.34, 0.37 and 0.45. The current P/GP Ratio is 0.29 base on a stock price of $11.95. 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 0.38. The current P/B Raito is 0.29 based on a stock price of $11.95, Book Value of 41,242.6M and Book Value per Share of $40.92. 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 10.85. The current P/CF Ratio is 3.68 based on Cash Flow for the last 12 months of $98.6M, Cash Flow per Share of $3.25 and a stock price of $11.95. The current ratio is 65% 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 2.96%. The current dividend yield is 3.68% based on dividends of $0.44 and a stock price of $11.95. The current dividend yield is 24% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median dividend yield of 3.69%. The current dividend yield is 3.68% based on dividends of $0.44 and a stock price of $11.95. The current dividend yield is .03% below the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and at the median. Note that this test works better on stocks that have increasing dividends. Dividends have recently been cut for this stock. Of course, a cut is dividends is not a positive move.

The 10-year median Price/Sales (Revenue) Ratio is 1.77. The current ratio is 1.21 based on Revenue estimate for 2025 of $300M, Revenue per Share of $9.88 and a stock price of $11.95. The current ratio is 32% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

Results of stock price testing is that the stock price is probably cheap. The historical dividend yield test says this. The 10 year dividend yield test just says that the stock price is reasonable, but dividends have been cut. recently. All the rest of the tests are saying that the stock price is relatively cheap.

When I look at analysts’ recommendations, I find Hold (1) recommendation. The consensus would be a Hold. 12 month target price consensus is $14.00. This implies a total return of $20.84% with 17.15% from capital gains and 3.68% from dividends.

The last entry for this stock on Stock Chase is 2016. This stock is not well followed. Adam Othman on Motley Fool says the company had a decent run up last year and it might be a stock to watch. Iain Butler at Motley Fool is a Motley Fool pick for long term promise and potential. The company put out a press release via Globe Newswire about their fourth quarter results for 2024.

Simply Wall Street via Yahoo Finance reviews this stock. They conclude it is not a good dividend stock due to unstable dividends. I have stats for last 34 year in which the company raised dividends 23 time and decreased them 6 times.

Simply Wall Street has 5 earnings of debt is not well covered by operating cash flow; unstable dividend track record; significant insider selling over the past 3 months; large one-off items impacting financial results; and profit margins (9.6%) are lower than last year (20%). Some members of the Melton family, who own a lot of shares, sold shares in the last year. The CFO bought shares in the past year with one purchase at around $12.25 and another at around $12.75 at the end of December 2024.

Melcor Developments Ltd is a real estate development company. It develops and manages mixed-use residential communities, business and industrial parks, office buildings, retail commercial centers, and golf courses. Its web site is here Melcor Developments Inc.

The last stock I wrote about was about was BCE Inc (TSX-BCE, NYSE-BCE) ... learn more. The next stock I will write about will be Goodfellow Inc (TSX-GDL, OTC-GFELF) ... learn more on Monday, April 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.

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