EQB Inc

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

Is it a good company at a reasonable price? This bank has done well for investors since it was started some 21 years ago. Currently, analysts expect another good year for this bank. It is on the Money Sense Dividend list. Since this is a small bank, caution is advised. The dividend yield and P/S Ratio testing is saying that the stock price is currently reasonable. Part of the reason for the dividend yield testing reasonable is that the dividends are growing faster than the stock price.

I do not own this stock of EQB Inc (TSX-EQB, OTC-EQGPF). I had read a glowing report on investing on this company in 2013, so I decided to check it out. It was interesting as it was loaning money to new immigrants, a class of people who generally have a difficult time getting loans and mortgages from our regular banks. It sounded intriguing.

When I was updating my spreadsheet, I noticed that this bank changed its financial year end to October. This is why I am reviewing so soon again after I did a review in October 2024. In the beginning of the year, I have to start with companies with financial year ending in September, October, and November as most companies with December financial year end take at least a month to put out their new financial statements.

The current dividend yield is low with dividend growth good. The current dividend yield is low (below 2%) at 1.87%. The 5, 10 and historical dividend yields are also low at 1.82%, 1.67% and 1.60%. The dividend growth has been good (15% and higher) with grow at 23% per year over the past 5 years. The last dividend increase was in 2024 and it was for 4.3%. However, this bank has been raising the dividends several times during each year.

The Dividend Payout Ratios (DPR) are good. The DPR for 2024 for Earnings per Share (EPS) is good at 17% with 5 year coverage at 13%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is good at 16% with 5 year coverage at 12%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 10% with 5 year coverage at 6%. The DPR for 2024 for Free Cash Flow (FCF) is good at 17% with 5 year coverage at 11%.

Item	Cur	5 Years
EPS	17.21%	13.14%
AEPS	15.78%	12.44%
CFPS	9.84%	6.26%
FCF	16.90%	10.72%

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2024 is fine at 12.68 and currently at 11.94. However, we need also to look at the Long Term Debt/Covering Assets Ratio for 2024 which is good at 0.92 and currently at 0.90 because this is a more important one for a Financial. The Liquidity Ratio for 2024 is good at 3.12 and 2.65 currently. The Debt Ratio for 2024 is fine for a bank at 1.06 and 1.06 currently. The Bank Leverage 5.3% and this is good.

Type	Year End	Ratio Curr
Lg Term A	0.92	0.90
Lg Term R	12.68	11.94
Intang/GW	0.08	0.03
Liquidity	3.12	2.65
Liq. + CF	2.76	2.76
Debt Ratio	1.06	1.06
Bk Leverage	5.3%	5.3%

The Total Return per year is shown below for years of 5 to 21 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	23.32%	14.98%	13.52%	1.45%
2014	10	18.09%	13.84%	12.57%	1.27%
2009	15	15.51%	18.52%	16.87%	1.64%
2004	20	10.41%	14.13%	12.81%	1.32%
2003	21		12.25%	11.16%	1.09%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 5.42, 7.43 and 9.44. The corresponding 10 year ratios are 5.43, 6.74 and 8.98. The corresponding historical ratios are 5.49, 6.93 and 9.19. The current P/E Ratio is 8.85 based on a stock price of $104.97 and EPS estimate for 2025 of $11.86. This ratio is between the median and high ratio 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 5.00, 7.06, 9.28. The corresponding 10 year ratios are 5.09, 6.90 and 8.57. The current P/AEPS Ratio is 8.70 based on a stock price of $104.97 and AEPS for 2025 of $12.07. 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 Graham Price of $147.11. The 10-year low, median, and high median Price/Graham Price Ratios are 0.40, 0.54 and 0.69. The current P/GP Ratio is 0.71 based on a stock price of $104.97. 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.

I get a 10-year median Price/Book Value per Share Ratio of 0.99. The current P/B Ratio is 1.32 based on a Book Value of $3,128M, Book Value per Share of $81.35 and stock price of $104.97. The current ratio is 33% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I also have a Book Value per Share estimate for 2025 of $87.50. This implies a ratio of 1.20 based on a stock price of $104.97 and a Book Value of $3,364M. This ratio is 21% above the 10 year median 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 3.47. However, the Cash Flow for the last 12 months is negative, so I cannot do any P/CF Ratio testing.

I get an historical median dividend yield of 1.60%. The current dividend yield is 1.87% based on dividends of $1.96 and a stock price of $104.97. The current dividend yield is 11% above the historical median ratio. 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 1.67%. The current dividend yield is 1.87% based on dividends of $1.96 and a stock price of $104.97. The current dividend yield is 17% above the 10 year median ratio. 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 3.19. The current P/S Ratio is 3.14 based on Revenue estimate for 2025 of $1287M, Revenue per Share of $33.47 and a stock price of $104.97. The current ratio is 2% 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 that the stock price could be reasonable. The dividend yield tests show that the stock price is relatively reasonable. It is confirmed by the P/S Ratio testing. However, I do note that a number of tests are showing the stock price as relatively expensive.

When I look at analysts’ recommendations, I find Strong Buy (3), Buy (4), Hold (3). The consensus would be a Strong Buy. The 12 month stock price consensus is $123.70 with a high of $153.00 and low of $109.00. The stock price consensus price of $123.70 implies a total return of 19.23% with 17.37% from capital gains and 1.87% from dividends.

There are 3 analysts remarks on Stock Chase for this stock in 2025. All are buys. The company is liked, but its small size is noted. Stock Chase gives this stock 4 stars out of 5. Andrew Button on Motley Fool says this is a small Canadian bank with no US presence and therefore Trump proof. Aditya Raghunath on Motley Foolsays it is a Cheap Canadian stocks that will deliver outsized returns. The company put out a press release via Newswire about its fourth quarter of 2024.

Simply Wall Street via Yahoo Finance reviews this stock. They have one warning of Significant insider selling over the past 3 months.

EQB Inc operates through its wholly owned subsidiary, Equitable Bank, Canada's Challenger Bank. It serves Canadians through two business lines, Personal Banking and Business Banking. The company differentiates by providing a host of challenger bank deposit services, alternative single-family lending, reverse mortgage lending, insurance lending, Specialized finance, Commercial finance group, Equipment financing, credit union services and trust services. Its web site is here EQB Inc.

The last stock I wrote about was about Cogeco Communications Inc (TSX-CCA, OTC-CGEAF) ... learn more. The next stock I will write about will be Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF) ... learn more on Wednesday, February 5, 2025 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks February 2025 learn more on Tuesday, February 4, 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.

Cogeco Communications Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Telcom. Results of stock price testing is that the stock price is probably cheap. Debt Ratios are mostly quite ugly. The Dividend Payout Ratios (DPR) are good. The current dividend yield is good with dividend growth moderate. See my spreadsheet on Cogeco Communications Inc.

Is it a good company at a reasonable price? The price maybe cheap, but I do not like the amount of debt this company has. Not only is the debt too high, but the Intangible and Goodwill/Market Cap Ratio is far too high. The stock price might be relatively low, but I believe it is low for these reasons. Personally, I would not own this stock. However, it is testing as quite cheap.

I do not own this stock of Cogeco Communications Inc (TSX-CCA, OTC-CGEAF). This stock was on the Money Sense list when I was looking for a new stock to follow.

When I was updating my spreadsheet, I noticed this stock has been a mediocre performer. Its dividends are good, in the 5% ranges and they are increasing. They are not paying out too much in dividends, but capital gains have been low.

If you had invested in this company in December 2014, for $1,002.96 you would have bought 14 shares at $71.64 per share. In December 2024, after 10 years you would have received $320.60 in dividends. The stock would be worth $942.90. Your total return would have been $1,263.50. This would be a total return of 2.60% per year with 0.62% from capital loss and 3.21% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$71.64	$1,002.96	14	10	$320.60	$942.90	$1,263.50

The current dividend yield is good with dividend growth moderate. The current dividend yield is good (5% to 6% ranges) at 6.05%. The 5 and 10 year median dividend yields are moderate (2% to 4% ranges) at 2.82% and 2.40%. The historical median dividend yield is low (below 2%) at 1.77%. The dividend growth is moderate (8% to 14% per year) at 10.2% per year over the past 5 years. The last dividend increase was 2024 and it was for 8%.

The Dividend Payout Ratios (DPR) are good. The DPR for 2024 for Earnings per Share (EPS) is good at 43% with 5 year coverage at 34%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is good at 36% with 5 year coverage at 32%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 10% with 5 year coverage at 10%. The DPR for 2024 for Free Cash Flow (FCF) is good at 30% with 5 year coverage at 29%.

Item	Cur	5 Years
EPS	43.63%	34.07%
AEPS	36.53%	32.01%
CFPS	10.36%	9.90%
FCF	30.49%	28.62%

Debt Ratios are mostly quite ugly. The Long Term Debt/Market Cap Ratio for 2024 is far too high at 1.56 and currently at 1.78. Then Intangible and Goodwill/Market Cap Ratio for 2024 is far too high at 2.09 and currently at 2.37. The Liquidity Ratio for 2024 is far too low at 0.28 and 0.37 currently. If you added in Cash Flow after dividends, the ratios are fine at 1.48 and currently at 1.71. The Debt Ratio for 2024 is good at 1.56 and 1.58 currently. The Leverage and Debt/Equity Ratios for 2024 are too high at 3.25 and 2.08 and currently at 3.20 and 2.03.

Type	Year End	Ratio Curr
Lg Term R	1.56	1.78
Intang/GW	2.09	2.37
Liquidity	0.28	0.37
Liq. + CF	1.48	1.71
Debt Ratio	1.56	1.58
Leverage	3.25	3.20
D/E Ratio	2.08	2.03

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	10.22%	-5.86%	-9.20%	3.34%
2014	10	11.03%	3.80%	0.29%	3.50%
2009	15	13.98%	9.55%	5.95%	3.60%
2004	20	0.00%	8.92%	5.93%	2.99%
1999	25	11.21%	6.28%	4.16%	2.12%
1994	30	0.00%	8.35%	6.16%	2.20%
1993	31		8.03%	5.95%	2.07%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 9.04, 11.02 and 12.99. The corresponding 10 year ratios are 9.11, 11.17 and 13.23. The corresponding historical ratios are 9.39, 11.49 and 13.63. These are all pretty consistent. The current P/E Ratio is 7.63 based on a stock price of $60.98 and EPS estimate for 2025 of $8.00. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.

I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 8.60, 10.47 and 12.35. The corresponding 10 year ratios are 8.85, 11.39 and 13.06. The current ratio is 7.52 based on a stock price of $60.98 and AEPS estimate for 2025 of $8.11. 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 $115.79. The 10-year low, median, and high median Price/Graham Price Ratios are the 0.85, 1.05 and 1.21. The current ratio is 0.53 based on a stock price of $60.98. 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 1.94. The current P/B Ratio is 0.83 based on a stock price of $60.98, Book Value of $3,103M, and Book Value per Share of $73.48. The current ratio is 57% 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 $89.42. This implies a ratio of 0.68 with a stock price of $60.98 and a Book Value of $3,776M. This ratio is 65% 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 4.52. The current ratio is 2.14 based on Cash Flow per Share estimate for 2025 of $28.45, Cash Flow of $1,201M and a stock price of $60.98. 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 1.77%. The current dividend yield is 6.05% based on dividends of $3.688 and a stock price of $60.98. The current dividend yield is 242% 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 2.40%. The current dividend yield is 6.05% based on dividends of $3.688 and a stock price of $60.98. The current dividend yield is 152% 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 1.60. The current P/S Ratio is 0.87 based on a stock price of $60.98, Revenue estimate for 2025 of $2,959M and Revenue per Share of $70.08. The current ratio is 46% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

Results of stock price testing is that the stock price is probably cheap. The dividend yield tests are saying that the stock price is relatively cheap. The P/S Ratio testing confirms this. All the testing is pointing to a relatively cheap price.

When I look at analysts’ recommendations, I find Strong Buy (5), Buy (1), Hold (5). The consensus would be a Buy. The 12 month stock price consensus is $78.95 with a high of $92.00 and low of $71.00. The consensus stock price of $78.95 implies a total return of 35.52% with 29.47% from capital gains and 6.05% from dividends.

Analyst on Stock Chase likes this Telcom because of its dividend increases. Stock Chase gives this company 4 stars out of 5. Sneha Nahata on Motley Fool likes this stock for its growing dividends. Adam Othman on Motley Fool thinks this is a Telcom to buy and hold forever. The company put out a press release via Newswire about their fourth quarter of 2024.

Simply Wall Street via Yahoo Finance reviews this company. They have one warnings of Interest payments are not well covered by earnings on this company. Simply Wall Street gives this stock 3 and one half stars out of 5.

Cogeco Communications Inc is a communication corporation. The company is a cable operator in North America operating in Canada. The company earns majority of its revenue from Canadian telecommunications. The company operates in Canada and United States. Its web site is here Cogeco Communications Inc.

The last stock I wrote about was about was AGF Management Ltd (TSX-AGF.B, OTC-AGFMF) ... learn more. The next stock I will write about will be EQB Inc (TSX-EQB, OTC-EQGPF) ... learn more on Monday, February 3, 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.

AGF Management Ltd

Sound bite for Twitter and StockTwits is: Dividend Growth Financial. Results of stock price testing is that the stock price is probably relatively expensive. Debt Ratios are fine. The Dividend Payout Ratios (DPR) are good. The current dividend yield is moderate with dividend growth restarted. See my spreadsheet on AGF Management Ltd.

Is it a good company at a reasonable price? The good thing is that the company is growing again. It is also giving dividend increases again. It has taken quite a bit of time to recover from problems that occurred around 2008. I personally would not be interested in the company again. If you like the company, now may not be the time to buy as the 10 year dividend yield test says it is relatively expensive.

I do not own this stock of AGF Management Ltd (TSX-AGF.B, OTC-AGFMF). I used to own this stock. I bought it in 2001 and sold half in 2006 and the rest in 2008. It used to be a dividend growth stock, but has not been one for some time now. I sold because I did not see that the stock would improve. It was raising dividends still but at the expense of DPR. In 2008 I was lucky that I sold before it crashed. It has yet to recover.

When I was updating my spreadsheet, I noticed I can see that the company is growing again. However, analysts do not expect much this year and perhaps the next few years. Take EPS, it is $1.46 in 2024, 2025 is expected to be $1.67, but 2026 to be $1.58 and 2027 to be $1.19. Net Income is the same story as EPS. They do expect the AEPS to be a bit better and to go from $1.67 in 2024 to $1.68 in 2025, to $1.78 in 2026 and $1.79 in 2027.

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 first quarter in 2025 and expected growth over this year.

Yr	Item	Tot. Gwth	Per Year	Gwth	Coverage
5	Revenue Growth	25.53%	4.65%	0.84%	<-12 mths
5	AEPS Growth	135.21%	19.46%	-7.19%	<-12 mths
5	Net Income Growth	103.88%	15.31%	-4.82%	<-12 mths
5	Cash Flow Growth	98.75%	14.73%	0.00%
5	Dividend Growth	42.19%	7.29%	1.10%	<-12 mths
5	Stock Price Growth	79.49%	12.41%	0.45%	<-12 mths
10	Revenue Growth	18.02%	1.67%	5.77%	<-this year
10	AEPS Growth	145.59%	7.63%	0.60%	<-this year
10	Net Income Growth	59.29%	4.77%	15.61%	<-this year
10	Cash Flow Growth	165.80%	10.27%
10	Dividend Growth	-57.87%	-8.28%	6.22%	<-this year
10	Stock Price Growth	12.45%	1.18%	0.45%	<-this year

If you had invested in this company in December 2014, for $1,001.82 you would have bought 118 shares at $8.49 per share. In December 2024, after 10 years you would have received $439.55 in dividends. The stock would be worth $1,259.06. Your total return would have been $1,698.61. This would be a total return of 6.29% per year with 2.31% from capital gain and 3.98% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$8.49	$1,001.82	118	10	$439.55	$1,259.06	$1,698.61

The current dividend yield is moderate with dividend growth restarted. The current dividend yield is moderate (2% to 4% ranges) at 4.09%. The 5 and 10 year median dividend yields are good (5% to 6% ranges) at 5.36% and 5.46%. The historical median dividend yield is moderate at 4.76%. Dividends were cut in 2015. Dividend increases were started again in 2021. Dividend have been increasing at a low level (below 8% per year) at 7.3% per year over the past 5 years. Dividends are still some 57% below the dividends prior to the dividend cut.

The Dividend Payout Ratios (DPR) are good. The DPR for 2024 for Earnings per Share (EPS) is good at 31% with 5 year coverage at 30%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 25% with 5 year coverage at 26%. The DPR for 2024 for Free Cash Flow MS (FCF) is good at 29% with 5 year coverage at 39%. The DPR for 2024 for Free Cash Flow Company (FCF) is good at 26% with 5 year coverage at 36%. The FCF from MS and the company are fairly similar.

Item	Cur	5 Years
EPS	31.16%	29.82%
CFPS	24.81%	25.81%
FCF MS	28.54%	38.56%
FCF Comp	26.25%	35.88%

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.02 and currently at 0.02. The Liquidity Ratio for 2024 is too low at 1.04 and 1.04 currently. If you added in Cash Flow after dividends, the ratios are fine at 1.75 and currently low at 1.29. The Debt Ratio for 2024 is good at 3.45 and 3.45 currently. The Leverage and Debt/Equity Ratios for 2024 are good at 1.45 and 0.41 and currently at 1.45 and 0.41.

Type	Year End	Ratio Curr
Lg Term R	0.02	0.02
Intang/GW	0.38	0.38
Liquidity	1.04	1.04
Liq. + CF	1.75	1.29
Debt Ratio	3.45	3.45
Leverage	1.45	1.41
D/E Ratio	0.41	0.41

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	7.29%	15.50%	10.63%	4.87%
2014	10	-8.28%	6.29%	2.31%	3.98%
2009	15	-5.11%	1.39%	-3.06%	4.45%
2004	20	0.52%	2.22%	-2.50%	4.72%
1999	25	4.54%	4.73%	-0.34%	5.07%
1994	30	5.97%	12.87%	4.57%	8.30%
1990	34	6.14%	16.17%	6.56%	9.61%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 5.04, 6.39and 7.75. The corresponding 10 year ratios are 6.63, 7.98 and 9.45. The corresponding historical ratios are 10.15, 12.91 and 16.72. The current P/E Ratio is 6.76 based on a stock price of $11.25 and EPS estimate for 2025 of $1.67. 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/Adjusted Earnings per Share Ratios are 4.89, 6.95 and 8.31. The corresponding 10 year ratios are 6.94, 8.92 and 11.62. The current P/AEPS 6.70 based on a stock price of $11.25 and AEPS estimate for 2025 of $1.68. 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 get a Graham Price of $26.02. The 10-year low, median, and high median Price/Graham Price Ratios are 0.33, 0.39 and 0.50. The current P/GP Ratio is 0.43 based on a stock price of $11.25. The current ratio is between 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 10-year median Price/Book Value per Share Ratio of 0.47. The current P/B Ratio is 0.63 based on a stock price of $11.25, Book Value of $1,159M, and Book Value per Share of $17.91. The current ratio is 33% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I also have a Book Value per Share estimate for 2025 of $18.81. This implies a ratio of 0.60 based on a stock price of $11.25 and a Book Value of $1,217M. This ratio is 27% above the 10 year median 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 7.03. The current P/CF Ratio is 12.23 based on Cash Flow per Share estimate for 2025 of $0.92, a Cash Flow of $59.52 and a stock price of $11.25. The current ratio is 74% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I get an historical median dividend yield of 4.76%. The current dividend yield is 4.09% based on dividends of $0.46 and a stock price of $11.25. The current ratio is 14% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but below the median.

I get a 10 year median dividend yield of 5.46%. The current dividend yield is 4.09% based on dividends of $0.46 and a stock price of $11.25. The current ratio is 25% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive.

The 10-year median Price/Sales (Revenue) Ratio is 1.07. The current P/S Ratio is 1.26 based on Revenue estimate for 2025 of $580M, Revenue per Share of $7.73 and stock price of $11.25. The current ratio is 17% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

Results of stock price testing is that the stock price is probably relatively expensive. The 10 year dividend yield test says so. The P/S Ratio test says it is reasonable but above the median. (It is close to being expensive.) Other tests are showing the stock price as relatively expensive. It is only the P/E Ratio and P/AESP Ratio tests that says the stock price might be reasonable.

When I look at analysts’ recommendations, I find Strong Buy (3), Buy (1), and Hold (3). The consensus would be a Buy. The 12 month stock price consensus is $13.21 with a high of $17.00 and low of $11.50. The consensus stock price of $13.21 implies a total return of $21.51% with 17.42% from capital gains and 4.09% from dividends.

This stock is not much followed on Stock Chase. There is one entry for 2024 and it is a sell. Analyst thinks that dividend is rising too quickly with non-quality earnings. Stock Chase gives this stock 3 stars out of 5. Adam Othman on Motley Fool says the company is undervalue and has a good dividend (2021). Amy Legate-Wolfe on Motley Fool thinks this stock is for people seeking income and long term potential. The company put out a Press Release about their fourth quarter of 2024.

Simply Wall Street via Yahoo Finance. Simply Wall Street has 2 warnings out on this stock of earnings are forecast to decline by an average of 7.4% per year for the next 3 years; and unstable dividend track record. Simply Wall Street gives this stock 3 and one half stars out of 5.

AGF Management is predominantly a Canadian-based independent asset manager (with some very minor operations and investments in the US, the UK, Ireland, and Asia). Its web site is here AGF Management Ltd.

The last stock I wrote about was about was Exco Technologies Ltd (TSX-XTC, OTC-EXCOF) ... learn more. The next stock I will write about will be Cogeco Communications Inc (TSX-CCA, OTC-CGEAF) ... learn more on Friday, January 31, 2025 around 5 pm. Tomorrow on my other blog I will write about Line of Credit for Credit Card Debt.... learn more on Thursday, January 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.

Exco Technologies Ltd

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. Results of stock price testing is that the stock price is relatively cheap. Debt Ratios are good. The Dividend Payout Ratios (DPR) need improving. The current dividend yield is good with dividend growth has stopped at the present time. See my spreadsheet on Exco Technologies Ltd.

Is it a good company at a reasonable price? The problem with this stock is that it could be cheap for a reason. Earnings growth stopped after 2018. It has restarted over the past 2 years, but the EPS is not back to where it was. The company is expected to have earnings growth this year. It is a small cap, so you are taking a risk when investing. They did act properly in stopping dividend growth. And, the stock is testing as cheap.

I do not own this stock of Exco Technologies Ltd (TSX-XTC, OTC-EXCOF). This is a stock given as a recommendation by Keystone at the Toronto Money Show of 2012. I decided to check into it as it is a small tech company that is paying dividends. Also, I decided to review this stock because Keystone has recommended some very good stocks in the past.

When I was updating my spreadsheet, I noticed that their last dividend increase was in 2022. The Dividend Payout Ratio (DPR) went to 85% in 2022. It has been coming down since then. Ideally, the DPR should be in the 40% ranges and it is expected to be a round 41% in 2025. It is never a good sign when a company stops raising their dividends.

In this chart covering for the last 5 and 10 years, you can see that they are having a hard time earnings money. They have cash flow, but earnings are lacking. This would be why they stopped dividend growth. Analysts see to expect some earnings growth this year. 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 first quarter in 2025 and expected growth over this year.

Yr	Item	Tot. Gwth	Per Year	Gwth	Coverage
5	Revenue Growth	25.71%	4.68%	-0.52%	<-12 mths
5	AEPS Growth	-5.00%	-1.02%	3.95%	<-12 mths
5	Net Income Growth	11.21%	2.15%	6.51%	<-12 mths
5	Cash Flow Growth	26.12%	4.75%
5	Dividend Growth	18.31%	3.42%	0.00%	<-12 mths
5	Stock Price Growth	8.71%	1.68%	-9.26%	<-12 mths
10	Revenue Growth	73.19%	5.65%	4.20%	<-this year
10	AEPS Growth	-8.43%	-0.88%	36.84%	<-this year
10	Net Income Growth	-3.39%	-0.34%	36.05%	<-this year
10	Cash Flow Growth	102.47%	7.31%
10	Dividend Growth	115.38%	7.97%	0.00%	<-this year
10	Stock Price Growth	-21.28%	-2.36%	62.70%	<-this year

If you had invested in this company in December 2014, for $1,002.15 you would have bought 84 shares at $11.79 per share. In December 2024, after 10 years you would have received $299.63 in dividends. The stock would be worth $638.35. Your total return would have been $937.98. This would be a total loss of 0.75% per year with 4.41% from capital loss and 3.66% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$11.79	$1,002.15	85	10	$299.63	$638.35	$937.98

The current dividend yield is good with dividend growth has stopped at the present time. The dividend yield is good (5% to 6% ranges) at 5.68%. The 5 year median dividend yield is also good at 5.31%. The 10 year and historical median dividend yields are moderate (2% to 4% ranges) at 4.24% and 3.06%. The Dividends have been increasing at a low rate (below 8% per year) at 3.42% per year over the past 5 years. The last dividend increase was in 2022. I would suspect that when the DPR is back into a reasonable range, the company will again increase their dividends.

The Dividend Payout Ratios (DPR) need improving. The DPR for 2024 for Earnings per Share (EPS) is too high at 55% with 5 year coverage at 56%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is too high at 55% with 5 year coverage at 56%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 23% with 5 year coverage at 26%. The DPR for 2024 for Free Cash Flow (FCF) is high at 55% with 5 year coverage at 82%. However, there is no agreement on what the FCF is.

Item	Cur	5 Years
EPS	55.26%	56.25%
AEPS	55.26%	56.25%
CFPS	22.60%	25.95%
FCF	55.17%	82.34%

Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.34 and currently at 0.36. The Liquidity Ratio for 2024 is good at 2.65 and 2.65 currently. The Debt Ratio for 2024 is good at 2.69and 2.69 currently. The Leverage and Debt/Equity Ratios for 2024 are good at 1.59 and 0.59 and currently at 1.59 and 0.59.

Type	Year End	Ratio Curr
Lg Term R	0.34	0.36
Intang/GW	0.31	0.43
Liquidity	2.65	2.65
Liq. + CF	3.32	2.96
Debt Ratio	2.69	2.69
Leverage	1.59	1.59
D/E Ratio	0.59	0.59

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	3.42%	4.12%	-1.08%	5.20%
2014	10	7.97%	-0.75%	-4.41%	3.66%
2009	15	12.69%	15.90%	9.22%	6.67%
2004	20	11.23%	2.71%	-0.01%	2.72%
1999	25	10.67%	4.86%	2.30%	2.56%
1994	30		5.65%	3.41%	2.25%
1990	34		11.55%	8.63%	2.92%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 9.21, 10.03, 12.67. The corresponding 10 year ratios are 9.30, 10.84 and 12.88. The corresponding historical ratios are 9.21, 11.82 and 15.68. The current P/E Ratio is 6.97 based on a stock price of $7.25 and EPS estimate for 2025 of $1.04. 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 do have some Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 9.21, 10.03, 12.67. The corresponding 10 year ratios are 9.06, 10.43 and 12.71. The current P/AEPS ratio is 6.97 based on AEPS estimate for 2025 of $1.04. 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. (Note: that this company only occasionally has Adjusted Earnings per Share.)

I get a Graham Price of $15.21. The 10-year low, median, and high median Price/Graham Price Ratios are 0.61, 0.74, $0.88. The current P/GP Ratio is 0.48 based on a stock price $7.25. 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 1.05. The current ratio is 0.73 based on a Book Value of $3814M, Book Value per Share of $9.89 and a stock price of $7.25. The current ratio is 30% 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 6.76. The current ratio is 3.42 based on Cash Flow for the last 12 months of $81.7M, Cash Flow per Share of $2.12 and a stock price of $7.25. The current ratio is 49% 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 3.06%. The current dividend yield is 5.79% based on dividends of $0.42 and stock price of $7.25. The current ratio is 89% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median dividend yield of 4.25%. The current dividend yield is 5.79% based on dividends of $0.42 and stock price of $7.25. The current ratio is 37% 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 0.62. The current P/S Ratio is 0.42 based on Revenue estimate for 2025 of $664.6M, Revenue per Share of $17.24, and a stock price of $7.25. 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 relatively cheap. The dividend yield tests say that the stock price is relatively cheap. This is confirmed by the P/S Ratio test. Other tests say the same thing.

When I look at analysts’ recommendations, I find Strong Buy (1), and Buy (1). The consensus would be a Strong Buy. The 12 month stock price consensus is $13.00 with a high of $15.00 and low of $11.00. The consensus stock price of $13.00 implies a total return 85.10% with 79.31% from capital gains and 5.79% from dividends.

This stock is not well followed on Stock Chase. An entry in November 2024 gives it a partial buy. They like the stock but says it has head winds. Stock Chase gives this stock 4 stars out of 5. Adam Othman on Motley Fool says to buy to enhance the potential of your passive-income portfolio. Christopher Liew on Motley Fool says Exco maintains a positive outlook due to stable consumer demand for automotive vehicles in most markets. . The company put out a press release on Global Newswire about their results for their fourth quarter ending September 30, 2024.

Simply Wall Street via Yahoo Finance reviews this stock. Simply Wall Street has two warnings out on this stock of earnings have declined by 3% per year over past 5 years; and significant insider selling over the past 3 months. None of the Executives nor the CEO I follow have sold shares in the past year.

Exco Technologies Ltd is a designer, developer, and manufacturer of dies, moulds, components and assemblies, and consumable equipment for the die-cast, extrusion, and automotive industries. Geographically, it derives a majority of its revenue from the United States and also has its presence in Canada, Europe, Asia, and other regions. Its web site is here Exco Technologies Ltd.

The last stock I wrote about was about was Enghouse Systems Ltd (TSX-ENGH, OTC-EGHSF) ... learn more. The next stock I will write about will be AGF Management Ltd (TSX-AGF.B, OTC-AGFMF) ... learn more on Wednesday, January 29, 2025 around 5 pm. Tomorrow on my other blog I will write about Trustworthy Finfluencers.... learn more on Tuesday, January 28, 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.

Enghouse Systems Ltd

Sound bite for Twitter and StockTwits is: Dividend Growth Tech. Results of stock price testing is that the stock price is probably cheap. Debt Ratios are good. The Dividend Payout Ratios (DPR) for EPS should be improved. The current dividend yield is moderate with dividend growth good. See my spreadsheet on Enghouse Systems Ltd.

Is it a good company at a reasonable price? This stock is certainly off the high it reached in 2020. However, analysts do not seem to be negative about this stock. Their revenue growth has certainly come down. Analysts think that they will do fine in the future because they went from selling software to a subscription base. Personally, I never look at any tech company as a long term buy. I worked in IT and things can change very quickly. Any tech stock I have bought I have always kept a close eye on it. But that is just what I think. It certainly is relatively cheap.

I do not own this stock of Enghouse Systems Ltd (TSX-ENGH, OTC-EGHSF). This stock has been recommended by Keystone Financial Publishing as a good Small Cap tech stock with dividend.

When I was updating my spreadsheet, I noticed Revenue and earnings growth has slowed between the last 5 and 10 year. Cash Flow and dividends have not. Stock price is down over the past 5 years. It is down by almost 8% so far since October 2024. The stock price is expected to rise over the next year. They have a financial year ending in October each year. I am reviewing the financial year ending October 2024.

In the chart below, I am showing 5 and 10 year total growth and per year growth in columns 3 and 4. Column 5 shows growth expected over 12 months to the first quarter in 2025 and expected growth over this year.

Yr	Item	Tot. Gwth	Per Year	Gwth	Coverage
5	Revenue Growth	30.23%	5.43%	1.21%	<-12 mths
5	EPS Growth	13.95%	2.65%	3.40%	<-12 mths
5	Net Income Growth	14.79%	2.80%	4.02%	<-12 mths
5	Cash Flow Growth	62.30%	10.17%
5	Dividend Growth	140.00%	19.14%	8.33%	<-12 mths
5	Stock Price Growth	-23.85%	-5.30%	-7.97%	<-12 mths
10	Revenue Growth	128.42%	8.61%	3.82%	<-this year
10	EPS Growth	164.86%	10.23%	8.16%	<-this year
10	Net Income Growth	173.98%	10.60%	8.54%	<-this year
10	Cash Flow Growth	177.22%	10.73%
10	Dividend Growth	433.33%	18.22%	16.67%	<-this year
10	Stock Price Growth	55.68%	4.53%	9.43%	<-this year

If you had invested in this company in December 2014, for $1,016.51 you would have bought 49 shares at $20.75 per share. In December 2024, after 10 years you would have received $321.44 in dividends. The stock would be worth $1,327.41. Your total return would have been $1,648.85. This would be a total return of 5.33% per year with 2.70% from capital gain and 2.63% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$20.75	$1,016.51	49	10	$321.44	$1,327.41	$1,648.85

The current dividend yield is moderate with dividend growth good. The current dividend yield is moderate (2% to 4% ranges) at 3.76%. The 5, 10 and historical dividend yields are low (below 2%) at 1.67%, 1.03% and 1.36%. The dividend growth is good (15% and above) at 19 % per year over the past 5 years. The last dividend increase was in 2024 and it was for 18%.

The Dividend Payout Ratios (DPR) for EPS should be improved. The DPR for 2024 for Earnings per Share (EPS) is too high at 65% with 5 year coverage at 64%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 35% with 5 year coverage at 36%. The DPR for 2024 for Free Cash Flow (FCF) is good at 32% with 5 year coverage at 42%.

Item	Cur	5 Years
EPS	65.31%	63.72%
CFPS	35.02%	35.60%
FCF	32.44%	42.58%

Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.00 and currently at 0.00. Other long term liabilities are low at just 0.02. They do not have much in debt. The Liquidity Ratio for 2024 is good at 1.81 and 1.81 currently. The Debt Ratio for 2024 is good at 3.51and 3.51 currently. The Leverage and Debt/Equity Ratios for 2024 are good at 1.40 and 0.40 and currently at 1.40 and 0.40.

Type	Year End	Ratio Curr
Lg Term R	0.00	0.00
T. Lg Term R	0.02	0.02
Intang/GW	0.25	0.27
Liquidity	1.81	1.81
Liq. + CF	2.19	2.17
Debt Ratio	3.51	3.51
Leverage	1.40	1.40
D/E Ratio	0.40	0.40

The Total Return per year is shown below for years of 5 to 29 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	19.14%	-8.24%	-10.88%	2.63%
2014	10	18.22%	5.33%	2.70%	2.63%
2009	15	21.00%	16.51%	13.14%	3.37%
2004	20	20.28%	11.50%	9.43%	2.06%
1999	25		13.55%	11.71%	1.84%
1995	29		12.12%	10.65%	1.47%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 20.68, 32.80 and 42.49. The corresponding 10 year ratios are 24.90, 32.82 and 41.38. The corresponding historical ratios are 17.88, 22.80 and 29.46. The current ratio is 17.40 based on a stock price of $27.67 and EPS estimate for 2025 of 1.59. 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 $19.62. The 10-year low, median, and high median Price/Graham Price Ratios are 2.16, 2.69 and 3.41. The current ratio is 1.41 based on a stock price $27.67. 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 5.17. The current P/B Ratio is 2.57 based on a Book Value of $596M, Book Value per Share of $10.76 and a stock price of $27.67. The current ratio is 50% 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 $11.26. This implies a Book Value of 624M, and a Ratio of 2.46 with a stock price of $27.67. This ratio is 52% 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 21.37. The current ratio is 11.60 based on Cash Flow for the last 12 months of $132M, Cash Flow per Share of $2.39 and a stock price of $27.67.

I get an historical median dividend yield of 1.36%. The current dividend yield is 3.76% based on dividends of $1.04 and a stock price of $27.67. The current dividend yield is 176% 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 1.03%. The current dividend yield is 3.76% based on dividends of $1.04 and a stock price of $27.67. The current dividend yield is 266% 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 5.29. The current ratio is 2.94 based on a stock price of $27.67, Revenue estimate for 2025 of $522M, and Revenue per Share of $9.42. The current ratio is 44% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

Results of stock price testing is that the stock price is probably cheap. The dividend yield tests say this. It is confirmed by the P/S Ratio test. All the testing is pointing to a relatively cheap stock price.

When I look at analysts’ recommendations, I find Buy (1), and Hold (3). The consensus would be a Hold. The 12 month stock price consensus is $32.25 with a high of $40.00 and low of $29.00. The stock price consensus of $32.25 implies a total return of 20.31% with 16.55% from capital gains and 3.76% from dividends.

Analysts on Stock Chase still like this stock. Their large cash flow and no debt is mentioned. Stock Chase gives this stock 4 stars out of 5. Jitendra Parashar on Motley Fool says to buy for long term gains. Robin Brown on Motley Fool says to buy for long term wealth in you TFSA. However, he notes it is currently depressed. The company put out a press release via Newswire about their fourth quarter for 2024.

Simply Wall Street via Yahoo Finance talk about insider buying at this company. They have one warning out on this stock of significant insider selling over the past 3 months. Simply Wall Street gives this stock 4 stars out of 5.

Enghouse Systems Ltd is a Canada-based provider of software and services to a variety of end markets. The firm's operations are organized in two segments namely, the Interactive Management Group (IMG) and the Asset Management Group (AMG). The firm has operations in Canada, the United States, the United Kingdom, Europe, excluding Scandinavia, Germany, Asia-Pacific and other, with revenue from USA. Its web site is here Enghouse Systems Ltd.

The last stock I wrote about was about was Transcontinental Inc (TSX-TCL.A, OTC-TCLAF) ... learn more. The next stock I will write about will be Exco Technologies Ltd (TSX-XTC, OTC-EXCOF) ... learn more on Monday, January 27, 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.

Transcontinental Inc

Sound bite for Twitter and StockTwits is: Dividend Paying Industrial. Results of stock price testing is that the stock price is probably reasonable and below the median. Debt Ratios are good. The Dividend Payout Ratios (DPR) are fine. The current dividend yield is moderate with dividend growth has stopped. See my spreadsheet on Transcontinental Inc.

Is it a good company at a reasonable price? This is a printing company getting into packaging. It has been doing better lately, but there is a risk to this stock. However, the dividend yield is at the top end of the moderate range and the dividends are probably safe. It is also reasonably price. So that could be the reason to buy, reasonable price, 4.9% yield.

I own this stock of Transcontinental Inc (TSX-TCL.A, OTC-TCLAF). I own this company. When I bought this company in 2015 it was a dividend growth company and has done quite well so far long term.

When I was updating my spreadsheet, I noticed it is rather a mixed bag when it comes to total returns on this stock. This company hit a high 20 years ago that it has not yet matched. If you look at total returns a paragraph below, you see the 20 year return is just 1.91% per year with a capital loss of 1.13% per year.

I have had this stock for 10 years and I have made a total return of 6.79% per year with 1.82% from capital gains and 4.97% from dividends. This stock is in my TFSA, which is my fooling around money. There is always a trade-off between yield and growth. This stock is one which currently has a good yield of 5.13%.

If you had invested in this company in December 2014, for $1,010.16 you would have bought 61 shares at $16.56 per share. In December 2024, after 10 years you would have received $510.88 in dividends. The stock would be worth $1,132.77. Your total return would have been $1,643.65. This would be a total return of 5.91% per year with 1.15% from capital gain and 4.76% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$16.56	$1,010.16	61	10	$510.88	$1,132.77	$1,643.65

The current dividend yield is moderate with dividend growth has stopped. The current dividend yield is moderate (2% to 4% ranges) at 4.93%. The corresponding 5 year median dividend yield is good (5% to 6%) ranges at 6.38%. The corresponding 10 year and historical median dividend yield is moderate at 4.60% and 2.28%. The dividend growth has stopped in 2021. I have had dividend history for the past 31 years and they have raised their dividends in 22 of those years. The last time dividends were flat was more than 20 years ago. I can see why they are flat as Dividend Payout Ratios were getting higher than they were in the past.

The Dividend Payout Ratios (DPR) are fine. The DPR for 2024 for Earnings per Share (EPS) is too high at 65% with 5 year coverage at 65%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is good at 38% with 5 year coverage at 39%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 18% with 5 year coverage at 17%. The DPR for 2024 for Free Cash Flow (FCF) is good at 37% with 5 year coverage at 36%.

Item	Cur	5 Years
EPS	63.83%	63.85%
AEPS	38.46%	39.23%
CFPS	18.22%	17.64%
FCF	37.14%	35.81%

Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.46 and currently at 0.43. The Liquidity Ratio for 2024 is good at 1.59 and 1.59 currently. The Debt Ratio for 2024 is good at 2.11 and 2.11 currently. The Leverage and Debt/Equity Ratios for 2024 are good at 1.90 and 0.90 and currently at 1.90 and 0.90.

Type	Year End	Ratio Curr
Lg Term R	0.46	0.43
Intang/GW	1.04	0.98
Liquidity	1.59	1.59
Liq. + CF	2.03	2.09
Debt Ratio	2.11	2.11
Leverage	1.90	1.90
D/E Ratio	0.90	0.90

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	0.68%	8.53%	3.19%	5.34%
2014	10	3.71%	5.91%	1.15%	4.76%
2009	15	2.06%	7.59%	2.45%	5.14%
2004	20	8.69%	1.91%	-1.13%	3.04%
1999	25	10.17%	6.22%	2.72%	3.50%
1994	30	9.45%	9.11%	5.25%	3.86%
1989	35	8.59%	8.94%	5.57%	3.37%
1988	36		9.61%	6.14%	3.47%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 9.05, 11.08, and 13.12. The corresponding 10 year median ratios are 7.67, 9.72 and 11.66. The corresponding historical median ratios are 10.21, 12.74 and 14.74. The current P/E Ratio is 10.54 based on a stock price of $18.54 and EPS estimate for 2025. 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 but above the median.

I have also Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 5.03, 6.70 and 8.37. The corresponding 10 year median ratios are 6.22, 7.40 and 8.58. The corresponding 10 year median ratios are 7.67, 9.72 and 11.66. The current ratio is 7.66 based on a stock price of $18.54 and AEPS estimate for 2025 of $2.42. 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 $35.06. The 10-year low, median, and high median Price/Graham Price Ratios are 0.46, 0.59 and 0.72. The current P/GP Ratio is 0.53 based on a stock price of $18.54. 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 get a 10-year median Price/Book Value per Share Ratio of 0.98. The current ratio is 82 based on a stock price of $18.54, Book Value of $1,909.3M and Book Value per Share of $22.58. The current ratio is 16% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I also have a Book Value per Share value for 2025 of $23.40. This implies a ratio of 0.79 based on a Book Value of $1,978.6M and a stock price of $18.54. This ratio is 19% 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 5.03. The current ratio is 3.39 based on Cash Flow for the last 2025 of $5.47 and a stock price of $18.54. This ratio is 33% 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 2.28%. The current dividend yield is 4.85% based on a stock price of $18.54 and dividends of $0.90. The current dividend yield is 113% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

I get an historical median dividend yield of 4.60%. The current dividend yield is 4.85% based on a stock price of $18.54 and dividends of $0.90. The current dividend yield is 5.6% 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 0.61. The current ratio is 0.57 based on Revenue estimate for 2025 of $2,476M, Revenue per Share of $32.48 and a stock price of $18.54. The current ratio is 6% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

Results of stock price testing is that the stock price is probably reasonable and below the median. The 10 year dividend yield testing says this. It is confirmed by the P/S Ratio test. The rest of the testing is mixed, but results are either cheap or reasonable.

When I look at analysts’ recommendations, I find Strong Buy (2), Buy (4) and Hold (1). The current recommendation would then be a Buy. The 12 month stock price consensus is $22.71 with a high if $26.00 and low of $20.00. The 12 month stock price of $22.71 implies a total return of 27.35% with 22.49% from capital gain and 4.85% from dividends.

Analyst on Stock Chase are advising you to sell since 2022. It is a printing company, but it is trying to get into packaging. Last 4 entries say sell. Stock Chase gives it 3 stars out of 5. Amy Legate-Wolfe on Motley Fool says the company has potential and has shown resilience and adaptability in a challenging market.. Jitendra Parashar on Motley Fool says to buy this stock for income. The company put out a press release via Global Newswire about its fourth quarter of 2024.

Simply Wall Street via Yahoo Finance reviews this stock and puts out a positive report. Simply Wall Street has one warning out on this stock of large one-off items impacting financial results. Simply Wall Street gives this stock 4 stars out of 5.

Transcontinental Inc or TC Transcontinental is a Canadian printer and flexible packaging provider that operates in three segments: packaging, Printing and Media, and Retail Services. Geographically in Canada, USA, UK. Maximum Revenue is gained from USA. Its web site is here Transcontinental Inc.

The last stock I wrote about was about was Canadian Imperial Bank of Commerce (TSX-CM, NYSE-CM) ... learn more. The next stock I will write about will be Enghouse Systems Ltd (TSX-ENGH, OTC-EGHSF) ... learn more on Friday, January 24, 2025 around 5 pm. Tomorrow on my other blog I will write about My Fooling Around Money.... learn more on Thursday, January 23, 2025 around 5 pm.

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