Reitmans (Canada) Ltd

Sound bite for Twitter is: Consumer Discretionary Stock. Results of stock price testing is that the stock price is probably cheap but could be just reasonable. Debt Ratios are good. This company no longer pays a dividend, so there is no current dividend yield and no Dividend Payout Ratios (DPR). See my spreadsheet on Reitmans (Canada) Ltd.

Is it a good company at a reasonable price? I am not particularly fond of consumer stocks. Some seem fine, but a lot do not seem to do well over the long term. This consumer stock is into fashion and fashion is not exactly a long term thing. I wonder about all the complaints in the reviews of the clothes Reitman is selling. On the other hand, it would seem that the company is doing somewhat better and it would also seem to be cheap. It would also be a rather high risk stock.

I do not own this stock of Reitmans (Canada) Ltd (TSXV-RET.A, OTC-RTMAF). I bought this company in September 2013. It was in financial difficulties and so was quite cheap. I believed it would recover, but it is taking too long. I sold in January 2021 and I lost money on this stock but did collect some dividends. My total loss was 32.10% per year with 40.75% from capital loss and 8.65% from dividends. I did not have much invested as this was a fashion store type company.

When I was updating my spreadsheet, I noticed that this company is digging itself out of its bankruptcy problems. It is making a profit. Unfortunately, the EPS it is making has been going down for the last 4 years. It has made a profit for people who have held this stock for 5 years. For investor who have had this company for 10 to 20 years, there is no profit. Note that the company has year ending around January 31 each year.

If you had invested in this company in December 2014, for $1,002.30 you would have bought 130 shares at $7.71 per share. In December 2024, after 10 years you would have received $123.50 in dividends. The stock would be worth $318.50. Your total return would have been $442.00. This would be a total loss of 9.22% per year with 10.83% from capital loss and 1.62% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$7.71	$1,002.30	130	10	$123.50	$318.50	$442.00

If you had invested in this company in December 2019, for $1,001.80 you would have bought 863 shares at $1.16 per share. In December 2024, after 5 years you would have received $0 in dividends. The stock would be worth $2,114.53. Your total return would have been $2,114.35. This would be a total return of 16.13% per year with 16.13% from capital gain and 0.00% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$1.16	$1,001.08	863	5	$0.00	$2,114.35	$2,114.35

This company no longer pays a dividend, so there is no current dividend yield and no Dividend Payout Ratios (DPR).

Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.00 and currently at 0.00. They have no long term debt. The Liquidity Ratio for 2024 is good at 2.06 and 2.06 currently. The Debt Ratio for 2024 is good at 2.07 and 2.07 currently. The Leverage and Debt/Equity Ratios for 2024 are good at 1.94 and 0.94 and currently at 1.94 and 0.94.

Type	Year End	Ratio Curr
Lg Term	0.00	0.00
Intang/GW	0.01	0.01
Liquidity	2.06	2.06
Liq. + CF	2.73	2.73
Debt Ratio	2.07	2.07
Leverage	1.94	1.94
D/E Ratio	0.94	0.94

The Total Return per year is shown below for years of 5 to 37 to the end of 2024. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2019	5	0.00%	16.13%	16.13%	0.00%
2014	10	0.00%	-9.22%	-10.83%	1.62%
2009	15	0.00%	-9.25%	-12.03%	2.78%
2004	20	0.00%	-3.56%	-8.44%	4.88%
1999	25	0.00%	12.60%	-0.18%	12.77%
1994	30	0.00%	11.25%	0.78%	10.47%
1989	35	0.00%	8.71%	0.55%	8.16%
1987	37	0.00%	7.92%	0.43%	7.49%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 0.50, 1.36 and 2.23. The corresponding 10 year ratios are 0.27, 0.87 and 1.46. The corresponding historical ratios are 9.68, 12.24 and 15.28. The current ratio is 9.54 based on a stock price of $2.29 and EPS for last 12 months of $0.24. This ratio is above the low ratio of the 10 year median ratios. However, the 5 and 10 year P/E Ratios are exceedingly low. Generally, any ratio below 10.00 is considered cheap.

I have Adjusted Earning per Share (AEPS) data. The 5-year low, median, and high median Price/Earnings per Share Ratios are 0.50, 1.36 and 2.23. The corresponding 10 year ratios are 0.28, 0.89 and 1.50. The current P/AEPS Ratio is 9.54 based on a stock price of $2.29 and AEPS for last 12 months of $0.24. This ratio is above the low ratio of the 10 year median ratios. However, the 5 and 10 year P/E Ratios are exceedingly low. Generally, any ratio below 10.00 is considered cheap. The EPS and AEPS is often the same.

I get a Graham Price of $5.68. The 10-year low, median, and high median Price/Graham Price Ratios are 0.38, 0.60 and 0.89. The current P/GP Ratio is 0.40 based on a stock price of $2.29. 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 get a 10-year median Price/Book Value per Share Ratio of 0.68. The current P/B Ratio is 0.38 based on a stock price of $2.29, Book Value of $296M and Book Value per Share of $5.98. The current ratio is 44% 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 1.98. The current ratio is 1.09 based on a stock price of $2.29, Cash Flow for the last 12 months of $104M, and Cash Flow per Share of $2.10. The current ratio is 45% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I cannot do any dividend yield tests as this company does not currently pay a dividend.

The 10-year median Price/Sales (Revenue) Ratio is 0.19. The current ratio is 0.15 based on a stock price of $2.29, Revenue for the last 12 months of $774M and Revenue per Share of $15.45. The current ratio is 22% 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 but could be just reasonable. The P/S Ratio test says this the stock price is cheap. However, the P/GP Ratio test just says it is reasonable. However, the P/E Ratio counts in the P/GP Ratio and these ratios are really low. The P/B Ratio test is a good one and it says that the stock price is cheap as does the P/CF Ratio test.

When I look at analysts’ recommendations, I find a Hold (1). The consensus would be a Hold. The 12 month target price is $5.00. There is only one target price. This target price suggests a total return of 118.34% with all this from capital gain. No one seems to be giving out estimates for this stock except for the 12 month stock price target.

There is only one comment on Stock Chase for 2025. He says he sees a big upside, but sees as an issue the fact that the company does not want to return to the TSX. Andrew Button on Motley Fool says it is a deep value stock that got suffer major damage during covid. That is true, but it is also true that the stock peak a lot earlier in 2010. As far as I can see there is only one entry on Motley Fool for this company. The company put out a Press Release via Newswire about their fourth quarter of 2025.

This stock is not well followed and I could not find any write ups on this stock. Simply Wall Street has one warning of does not have a meaningful market cap (CA$85M). I was hunting around for reviews on this company and came across one for reviews. The reviews from customers were not good. There was another reviews site I came across. Most of the reviews are awful. I would think people more likely to put in a store review if they had problems than if they were happy with purchases. But still, it does not sound good with all these poor reviews. However, on the job review site of Indeed it sounds like it was a reasonable place to work.

Reitmans (Canada) Ltd is an apparel retailer based in Canada. Its main business is the sale of ladies' specialty apparel to consumers. The group offers its products through the retail banners of Reitmans, Penningtons and RW & CO. The Company's operating segments, operate in the women apparel business, in Canada. Its web site is here Reitmans (Canada) Ltd.

The last stock I wrote about was about was HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF) ... learn more. The next stock I will write about will be RB Global Inc (TSX-RBA, NYSE-RBA) ... learn more on Monday, June 2, 2025 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Also, on my book blog I have put a review of the book A Short History of Humanity by Johannes Krause and Thomas Trappe learn more...

HLS Therapeutics Inc

Sound bite for Twitter is: Health Case Consumer stock. Results of stock price testing is that the stock price is probably cheap but could be just relatively reasonable. Debt Ratios are fine, but they do have a fair bit of debt. The dividend was cancelled in 2023, so currently this is no yield and no Dividend Payout Ratios (DPR). See my spreadsheet on HLS Therapeutics Inc.

I also just noticed that TD bank has different stock values that I have and they also show a split on March 14, 2018 of .1658 to 1 that I do not have. Actually, there was no stock split in 2018, but HLS Therapeutics did a reverse takeover of Automodular Corp. HLS Therapeutics Inc. Stock Chart on Google gives AM’s stock prices. TD is different. I do not have time to resolve this issue at this time.

Is it a good company at a reasonable price? This stock has not done well since hitting a high in 2020. They have had a rising Revenue but the company has not made a profit. On the other hand, one of their most expensive items taken from Revenue, is Amortization and Depreciation charges. I have a lousy return because I paid way above the current price for stock in this company. However, I intend to keep the shares I got. I realize this is a high risk stock. The shares might have hit their bottom. The shares have been rising since the stock hit a bottom in 2024. The stock price could be cheap.

I own this stock of HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF). I got this stock because it did a reverse takeover of Automodular Corp (TSX-AM, OTC-AMZKF) on March 12, 2018. There was a plan of arrangement whereby Automodular shareholders got 0.165834 HLS common shares and one HLS preferred share. The HLS preferred shares were a form of contingent value right allowing AMD shareholders to have an equity stake linked to the outcome of litigation that had been ongoing for several years between AMD and General Motors. I bought some stock in 2018, 2020 and 2023 because this is a Health Care sector stock and there are few of them in the Canadian market.

When I was updating my spreadsheet, I noticed that the book value is going down. This is typical of companies that raise money and are not making any money. I have not made any money on this stock. I have a loss of 21.95% per year with 22.87% from capital loss and 0.92 from Dividends.

If you had invested in this company in December 2015, for $1,008.99 you would have bought 88 shares at $11.47 per share. In December 2024, after 9 years you would have received $83.60 in dividends. The stock would be worth $340.62. Your total return would have been $424.22. This would be a total loss of 9.62% per year with 11.22% from capital loss and 1.59% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$11.47	$1,008.99	88	9	$83.60	$340.62	$424.22

The dividend was cancelled in 2023, so currently this is no yield and no Dividend Payout Ratios (DPR).

Debt Ratios are fine, but they do have a fair bit of debt. The Long Term Debt/Market Cap Ratio for 2024 is fine but a bit high at 0.71 and currently better at 0.56. The Liquidity Ratio for 2024 is good at 1.57 and a little low at 1.43 currently. If you added in Cash Flow after dividends, the ratios are fine at 1.93 and currently at 1.88. The Debt Ratio for 2024 is good at 1.81 and 1.71 currently. The Leverage and Debt/Equity Ratios for 2024 are fine at 2.24 and 1.24 and currently at 2.30 and 1.30.

Type	Year End	Ratio Curr
Lg Term	0.71	0.56
Intang/GW	1.43	1.15
Liquidity	1.57	1.43
Liq. + CF	1.93	1.88
Debt Ratio	1.81	1.77
Leverage	2.24	2.30
D/E Ratio	1.24	1.30

The Total Return per year is shown below for years of 5 to 9 to the end of 2024 in CDN$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2019	5	0.00%	-30.24%	-31.20%	0.96%
2015	9		-9.62%	-11.22%	1.59%

The Total Return per year is shown below for years of 5 to 9 to the end of 2024 in US$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2018	5	0.00%	-31.33%	-32.35%	1.01%
2015	9		-10.28%	-12.21%	1.93%

The 5-year low, median, and high median Price/Earnings per Share Ratios are negative and therefore unusable, as are all the P/E Ratios. The company has made no profit.

I cannot calculate a Graham Price of when there is no ESP.

I get a 10-year median Price/Book Value per Share Ratio of 1.67. The current ratio is 1.72 based on a Book Value of $92M, Book Value per Share of $2.90 and a stock price of $5.00. The current ratio is 3% above 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 11.29. The current P/CF Ratio is 10.70 based on Cash Flow for last 12 months of $14.8M (10.8M US$), Cash Flow per Share of $0.47 and a stock price of $5.00. The current ratio is 5% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I cannot do dividend yield tests as the dividends have been cancelled or at least suspended.

The 10-year median Price/Sales (Revenue) Ratio is 4.42. The current P/S Ratio is 2.01 based on Revenue estimate for 2025 of $78.97M ($57.3M US$), Revenue per Share of $2.49 and a stock price of $5.00. The current ratio is 54% 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 but could be just relatively reasonable. The P/S Ratio test says this. Looking at a chart, the stock price is low. The few other tests I can do the stock was reasonable and below the median and above the median. Note that there is a problem with using US$ in these tests is that the stock is very seldom traded in US$ and there is a current big difference between US$ price and CDN$ price.

When I look at analysts’ recommendations, I find Strong Buy (2) and Hold (3). The consensus would be a Buy. The 12 month stock price consensus is $6.30 ($4.57 US$) with a high of $9.39 ($6.82) and low of $3.86 ($2.80). The 12 month stock price consensus of $6.30 implies a total return of 25.90%, all from capital gains. I am surprised at how many analysts have recommendations since it is hard to find any analysts comments.

There are no entries on Stock Chase for this company. There is currently not much analyst interest in this company. Adam Othman on Motley Fool wrote about this company in 2023 says it gives you exposure to the Pharmaceutical industry. Christopher Liew on Motley Fool wrote about this company in 2022 says biotech stocks are high risk, but can have high rewards. The company put out a Press Release about their fourth quarter of 2024. The company put out a Press Release about their first quarter of 2025.

Simply Wall Street via Yahoo Finance but out a recent note on this company saying Revenue is expected to grow by 7% over next 3 years, compared to growth forecast of 9.2% for the Pharmaceuticals Industry in Canada. Simply Wall Street via Yahoo Finance talks about who owns shares in this company. institutional investors have a fair amount of stake in HLS Therapeutics. Simply Wall Street has one warning of currently unprofitable and not forecast to become profitable over the next 3 years.

HLS Therapeutics Inc is a specialty pharmaceutical company. It is focused on the acquisition and commercialization of branded pharmaceutical products in the North American markets. The company operates in Canada, and the United States, and the Rest of the world. Its web site is here HLS Therapeutics Inc.

The last stock I wrote about was about was Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF) ... learn more. The next stock I will write about will be Reitmans (Canada) Ltd (TSXV-RET.A, OTC-RTMAF) ... learn more on Friday, May 30, 2025 around 5 pm. Tomorrow on my other blog I will write about Reasons to Sell.... learn more on Thursday, May 29, 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.

Pizza Pizza Royalty Corp

Sound bite for Twitter is: Dividend Growth Consumer. Results of stock price testing is that the stock price is reasonable, but above the median. Debt Ratios for Pizza Pizza Ltd need improving. Debt Ratios are good for Pizza Pizza Royality Corp. The Dividend Payout Ratios (DPR) are fine. The current dividend yield is good with dividend growth low. See my spreadsheet on Pizza Pizza Royalty Corp.

Is it a good company at a reasonable price? This would not be a favourite stock for me. You have to analyze both companies of Pizza Pizza Limited and Pizza Pizza Royality Corp. I do not think I can properly analyze Pizza Pizza Limited and I do not like Pizza Pizza Limited debt ratios especially the Liquidity Ratios. It is PPL that will be funding the dividends. Yes, the dividend is good, but growth is very low. This stock is not well followed. Personally, I would not be interested in this stock. Stock price is still reasonable, but at the top end of the range.

I do not own this stock of Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF). A number of people have recommended this stock, so I decided to take a look at it. It was on once on John Heinzl's Dividend Hog Portfolio, but has been taken off.

I do not like this setup. You have to analyze both companies. It would seem that Pizza Pizza Ltd is making a profit after paying Royalty Payments to Pizza Pizza Royalty Corp. Pizza Pizza Royalty Corp can basically payout all their income as their only income is Royality Payments. There is nothing inherently wrong with this type of royalty corp. I do not like the complexity of the accounting and having to evaluate both companies involved. The more complex a situation the more likely one can make an error in evaluating a company.

When I was updating my spreadsheet, I noticed they did not publish the financial statements for 2024 on their web site. I updated my spreadsheet as best as I could from the information I could find.

If you had invested in this company in December 2014, for $1,008.00 you would have bought 72 shares at $14.00 per share. In December 2024, after 10 years you would have received $590.26 in dividends. The stock would be worth $936.72. Your total return would have been $1,526.98. This would be a total return of 5.30% per year with 0.73% from capital loss and 6.03% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$14.00	$1,008.00	72	10	$590.26	$936.72	$1,526.98

The current dividend yield is good (5% to 6% ranges) at 6.27%. The 5, 10 and historical dividend yields are also good at 6.45%, 6.31% and 6.92%. The dividend growth is low (below 8% per year) at 1.7% per year over the past 5 years. The last dividend increase was in 2023 and it was for 3.3%.

The Dividend Payout Ratios (DPR) are fine. The DPR for 2024 for Earnings per Share (EPS) is good for this company at 99% with 5 year coverage at 93%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is good for this company at 98% with 5 year coverage at 91%. The DPR for 2024 for Cash Flow per Share (CFPS) is good for this company at 73% with 5 year coverage at 69%. The DPR for 2024 for Free Cash Flow (FCF) is high for this company at 107% with 5 year coverage is good for this company at 98%. However, there is also no agreement on what the FCF is. The thing is that Pizza Pizza Royalty Corp can pay out all its income because the one that pays is Pizza Pizza Limited.

Item	Cur	5 Years
EPS	98.83%	93.23%
AEPS	97.59%	90.94%
CFPS	72.99%	69.21%
FCF	106.85%	97.60%

Debt Ratios are good for Pizza Pizza Royality Corp. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.15 and currently at 0.13. The Liquidity Ratio for 2024 is very low at 0.19 (because it contains Long Term Debt) and good at 5.65 currently. The Debt Ratio for 2024 is good at 4.95 and 5.01 currently. The Leverage and Debt/Equity Ratios for 2024 are good 1.75 and 0.35 and currently at 1.81 and 0.36.

Type	Year End	Ratio Curr
Lg Term	0.15	0.13
Intang/GW	1.14	1.00
Liquidity	0.19	3.09
Liq. + CF	0.35	5.65
Debt Ratio	4.95	5.01
Leverage	1.75	1.81
D/E Ratio	0.35	0.36

Debt Ratios for Pizza Pizza Ltd need improving. The Long Term Debt/Total Assets Ratio for 2024 is fine at 0.73 and currently at 0.73. The Liquidity Ratio for 2024 is very low at 0.79 and at .80 currently. If you added in Cash Flow after dividends, the ratios are still far too low at 0.85 and currently at 0.99. The Debt Ratio for 2024 is low at 1.27 and 1.25 currently. The Leverage and Debt/Equity Ratios for 2024 are fine at 2.72 and 1.71 currently at 2.86 and 1.86. I am adjusting the Debt Ratio, Leverage and D/E Ratio for Deferred Gain.

Type	Year End	Ratio Curr
Lg Term	0.73	0.73
Intang/GW	0.00	0.00
Liquidity	0.79	0.80
Liq. + CF	0.85	0.99
Debt Ratio	1.27	1.25
Leverage	2.72	2.86
D/E Ratio	1.72	1.86

The Total Return per year is shown below for years of 5 to 19 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	1.68%	13.08%	5.90%	7.18%
2014	10	1.53%	5.30%	-0.73%	6.03%
2009	15	0.00%	13.18%	4.04%	9.14%
2005	19	1.05%	8.94%	1.39%	7.55%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 13.17, 14.55, and 16.02. The corresponding 10 year ratios are 13.28, 14.69 and 16.48. The corresponding historical ratios are 13.01, 14.69 and 19.67. The current ratio is 15.46 based on a stock price of $14.84 and EPS estimate for 2025 of $0.96. 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/Earnings per Share Ratios are 13.00, 14.37 and 15.71. The corresponding 10 year ratios are 13.02, 14.46, 15.94. The corresponding historical ratios are 11.96, 14.18 and 15.71. The current ratio is 15.46 based on a stock price of $14.84 and AEPS estimate for 2025 of $0.96. 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 $13.60. The 10-year low, median, and high median Price/Graham Price Ratios are 0.90, 1.00 and 1.11. The current P/GP Ratio is 1.09 based on a stock price of $14.84. 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 10-year median Price/Book Value per Share Ratio of 1.55. The current P/B Ratio is 1.73 based on a stock price of $14.84, Book Value of $211M, and Book Value per Share of $8.56. The current ratio is 12% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a 10-year median Price/Cash Flow per Share Ratio of 10.98. The current ratio is 11.51 based on Cash Flow for the last 12 months of $31.8M, Cash Flow per Share of $1.29 and a stock price of $14.85. The current ratio is 5% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get an historical median dividend yield of 6.92%. The current dividend yield is 6.27% based on dividends of $0.93 and a stock price of $14.85. The current dividend yield is 9% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a 10 year median dividend yield of 6.31%. The current dividend yield is 6.27% based on dividends of $0.93 and a stock price of $14.85. The current dividend yield is 1% below the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.

The 10-year median Price/Sales (Revenue) Ratio is 0.56. The current ratio is 0.57 based on Royalty System Sales of $636M, Sales per Share of $25.83 and a stock price of $14.85. The current ratio is 3% 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 reasonable, but above the median. The Dividend Yield tests say that the stock price is reasonable but above the median. This is confirmed by the P/S Ratio test. All the tests are saying the same thing.

When I look at analysts’ recommendations, I find a Hold (1) recommendation. There is only one analysts following this stock. The consensus is a Hold. The 12 month stock price consensus is $14.00 with a high of $14.00 and a low of $14.00. The consensus stock price of $14.00 implies a total return of 0.61% with 5.66% from capital loss and 6.27% from dividends based on a current stock price of $14.85.

The are only entries on Stock Chase for 2024. Some analysts like it and others did not. The negative comments were that the stock was range bound and same store sales decline. Rajiv Nanjapla on Motley Fool liked this stock for its reliable cash flow. Daniel Da Costa on Motley Fool for its high yield. The company put out a Press Release about their fourth quarter of 2024. The company put out a Press Release about its first quarterly results for 2025.

Gurufocus via Yahoo Finance reviews this company’s fourth quarter of 2024. Simply Wall Street has one warning for Dividend of 6.27% is not well covered by earnings or free cash flows.

Pizza Pizza Royalty Corp through its subsidiary, Pizza Pizza Royalty Limited Partnership, owns and franchises quick-service restaurants under the Pizza Pizza and Pizza 73 brands. It receives the benefit of Pizza Pizza Royalty and Pizza 73 Royalty payable by PPL under the Pizza Pizza License and Royalty Agreement and the Pizza 73 License and Royalty Agreement, respectively, as well as royalty payments under the international agreement, indirectly through its interests in the partnership. Its web site is here Pizza Pizza Royalty Corp.

The last stock I wrote about was about was Canadian Utilities Ltd (TSX-CU, OTC-CDUAF) ... learn more. The next stock I will write about will be HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF) ... learn more on Wednesday, May 28, 2025 around 5 pm. Tomorrow on my other blog I will write about Large Grocery Retailers.... learn more on Tuesday, May 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.

Canadian Utilities Ltd

Sound bite for Twitter is: Dividend Growth Utility. Results of stock price testing is that the stock price is probably reasonable. Debt Ratios are need improving and the company’s debt is high. The Dividend Payout Ratios (DPR) need improving. The current dividend yield is moderate with dividend growth low. See my spreadsheet on Canadian Utilities Ltd.

Is it a good company at a reasonable price? This stock last appeared on the Money Sense Dividend list in 2022. They are raising the dividends when they should not be. They probably just want to stay on the Dividend Achievers List. That is a bad reason to raise dividends when you should not be. If you look at the Total Return chart, this company certainly has not had good returns for the past 15 years. I think a good return if 8% per year including capital gains and dividends. Currently I will hold my shares, but I would not be tempted to buy any more. It makes you think that the comment on Stock Chase is right. The price would seem to be reasonable at the present time.

I own this stock of Canadian Utilities Ltd (TSX-CU, OTC-CDUAF). I started to follow this stock in January of 2009 because it was on the Dividend Achievers list, the Dividend Aristocrats list and was also on Mike Higgs’ dividend growth list at that time. The Dividend Aristocrats list is now an index on the TSX. ATCO (TSX-ACO-X) owns 88% of this stock, so you would not buy both these stocks.

When I was updating my spreadsheet, I noticed EPS went down because revenue was lower (1.4%), but costs went up (8.6%). I have had this stock for 8 years and I have made a total return of 4.69% per year with 0.14% from capital gains and 4.55% from dividends. I am making a nice dividend from this stock, but the price is around what I paid for it in 2017.

If you had invested in this company in December 2014, for $1,022.75 you would have bought 25 shares at $40.91 per share. In December 2024, after 10 years you would have received $401.46 in dividends. The stock would be worth $871.25. Your total return would have been $1,272.71. This would be a total return of 2.57% per year with 1.59% from capital loss and 4.16% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$40.91	$1,022.75	25	10	$401.46	$871.25	$1,272.71

The current dividend yield is moderate with dividend growth low. The current dividend yield is moderate (2% to 4% ranges) at 4.93%. The 5 year median dividend yield is good (5% to 6% ranges) at 5.26%. The 10 year and historical median dividend yields are moderate at 4.75% and 3.90%. The dividend increases are low (below 8% per year) at 1.4% per year over the past 5 years. Dividend increases have been very low over the last few years at around 1%. The last dividend increase was in 2025 and it was for 1.02%.

The Dividend Payout Ratios (DPR) need improving. The DPR for 2024 for Earnings per Share (EPS) is far too high at 112% with 5 year coverage at 106%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is too high at 76% with 5 year coverage at 80%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 27% with 5 year coverage at 27%. The DPR for 2024 for Free Cash Flow (FCF) is non-calculable due to a negative FCF with 5 year coverage too high at 473%. There is lots of disagreements on what FCF is.

Item	Cur	5 Years
EPS	122.46%	105.77%
AEPS	76.03%	80.13%
CFPS	26.62%	27.39%
FCF	-508.89%	473.00%

Debt Ratios are need improving and the company’s debt is high. The Long Term Debt/Market Cap Ratio for 2024 is too high at 1.13 and currently at 1.07. The Liquidity Ratio for 2024 is low at 1.10 and 1.04 currently. If you added in Cash Flow after dividends, the ratios are fine at 2.31 and currently at 2.03. The Debt Ratio for 2024 is fine at 1.43 and 1.43 currently. The Leverage and Debt/Equity Ratios for 2024 are too high at 3.34 and 2.34 and currently at 3.34 and 2.34. I prefer the Leverage and D/E Ratios to be below 3.00 and 2.00.

Type	Year End	Ratio Curr
Lg Term	1.13	1.07
Intan/GW	0.07	0.11
Liquidity	1.10	1.04
Liq. + CF	2.31	2.03
Debt Ratio	1.43	1.43
Leverage	3.34	3.34
D/E Ratio	2.34	2.34

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	2.67%	2.43%	-2.31%	4.74%
2014	10	6.34%	2.57%	-1.59%	4.16%
2009	15	6.84%	7.90%	3.15%	4.75%
2004	20	6.49%	9.05%	4.28%	4.77%
1999	25	6.08%	10.28%	5.23%	5.05%
1994	30	5.55%	11.74%	6.04%	5.70%
1989	35	4.96%	10.73%	5.43%	5.30%
1988	36	4.96%	11.16%	5.59%	5.57%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 19.36, 22.40 and 24.98. The corresponding 10 year ratios are 17.83, 20.31 and 22.55. The corresponding historical ratios are 11.96, 13.51 and 15.79. The current ratio is 15.47 based on a stock price of $37.12 and EPS estimate for 2025 of $2.40. 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) Ratios. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 13.05, 15.45 and 17.07. The corresponding 10 year ratios are 13.84, 15.72 and 17.96. The corresponding historical ratios are 13.83, 15.77 and 17.71. The current ratio is 15.53 based on a stock price of $37.12 and AEPS estimate for 2025 of $2.39. The current ratio is below the 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 $32.79. The 10-year low, median, and high median Price/Graham Price Ratios are 1.00, 1.14 and 1.28. The current ratio is 1.13 based on a stock price of $37.12. The current ratio is below the between the low and median ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10-year median Price/Book Value per Share Ratio of 1.85. The current ratio is 1.86 based on a stock price of $37.12, Book Value of $4,532 and Book Value per Share of $20.00. The current ratio is 0.2% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I also have a Book Value per Share estimate for 2025 of $20.17. This analyst calculates the Book Value differently than I do and, in this case, the 10 year median ratio is 1.43. The Book Value per Share of $20.17 implies a ratio of 1.84 based on a stock price of $37.12 and Book Value of $5,479M. This ratio of 1.84 is 28% 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 5.79. The current ratio is 5.55 based on Cash Value per Share estimate for 2025 of $6.69, Cash Flow of $272M and a stock price of $37.12. The current ratio is 4% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get an historical median dividend yield of 3.90%. The current ratio is 4.93% based on a stock price of $37.12 and dividends of $1.8308. The current dividend yield is 26% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median dividend yield of 4.75%. The current ratio is 4.93% based on a stock price of $37.12 and dividends of $1.8308. The current dividend yield is 4% 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 2.53. The current ratio is 2.42 based on a stock price of $37.12, Revenue estimate for 2025 of $4,169M, and Revenue per Share of $15.35. The current ratio is 4% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

Results of stock price testing is that the stock price is probably reasonable. The 10 year dividend yield test is saying this. The P/S Ratio test confirms a reasonable price. Most of the rest are saying that the stock price is reasonable and above or below the median.

When I look at analysts’ recommendations, I find Strong Buy (1), and Hold (5). The consensus would be a Hold. The 12 months stock price consensus is $40.17 with a high of $41.00 and a low of $39.00. The consensus stock price of $40.17 implies a total return of 13.15% with 8.22% from capital gains and 4.93% from dividends based on a current stock price of $37.12.

There is only one analyst rating on Stock Chase for 2025. He gives a partial sell because he thinks we should look at utilities but larger ones with more sustainable dividend growth like ENB to TRP. Sneha Nahata on Motley Fool likes this stock for passive income with a high yield and history of dividend increases. Demetris Afxentiou on Motley Fool picks this stock because it is a defensive stock with a good dividend. He says that it has a 50 year history of dividend increases. The company put out a Press Release about their fourth quarter of 2024 results. The company put out a Press Release about their first quarter of 2025 results.

Simply Wall Street via Yahoo Finance and reviews this stock and its dividend. They believe they paid out too much in dividends as I do. Simply Wall Street has 3 warnings of interest payments are not well covered by earnings; dividend of 4.8% is not well covered by earnings or free cash flows; profit margins (10.6%) are lower than last year (15.4%).

Canadian Utilities Ltd, a subsidiary of holding company Atco, offers gas and electricity services. Headquartered in Calgary, Alberta, the firm mainly operates in Canada, Australia, and others. Canadian Utilities launched a large venture called Atco Energy, which provides low-cost and sustainable energy solutions for Alberta. Its web site is here Canadian Utilities Ltd.

The last stock I wrote about was about was Mullen Group Ltd (TSX-MTL, OTC-MLLGF) ... learn more. The next stock I will write about will be Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF) ... learn more on Monday, May 26, 2025 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Also, on my book blog I have put a review of the book Fall of Civilizations by Paul Cooper learn more...

Mullen Group Ltd

Sound bite for Twitter is: Dividend Growth Industrial. Results of stock price testing is that the stock price is probably cheap. Debt Ratios are fine, but the company has a fair bit of debt. The Dividend Payout Ratios (DPR) are fine, but could improve. The current dividend yield is good with dividend growth low. See my spreadsheet on Mullen Group Ltd.

Is it a good company at a reasonable price? I realized I was buying a volatile small cap stock when I bought this stock. I bought stock when the stock was taking off in 2014 and probably paid too much for it. I am still into this stock for the long term. However, anyone buying it should realize it is a risky buy as I did when I bought this stock. The stock is testing as relatively cheap.

I own this stock of Mullen Group Ltd (TSX-MTL, OTC-MLLGF). I like to look at recommended small cap dividend paying stock to see if they would be a possible good investment now or in the future. The other thing to mention about this stock is that it converted from an income trust and decreased it dividends. The reduction in dividend brought the Dividend Payout Ratios down to a place that would allow for the company to begin growing dividends again.

When I was updating my spreadsheet, I noticed I have had this stock for 10 year and I have a total return of 0.43% with a 3.48% capital loss and 3.91% from dividends. I noticed a number of stocks that have low returns over the past 10 year, but this one has had low returns for also 15 and 20 year period. I obviously paid too much when I bought shares in 2024, but this stock had a good run up to 20214 and has not done much since.

It is, however, a positive that they have been raising the dividends again in 2021 after a decrease in 2020. I must admit they also had a decrease in 2016 and then started to raise them in 2018.

If you had invested in this company in December 2014, for $1,001.57 you would have bought 47 shares at $21.31 per share. In December 2024, after 10 years you would have received $297.51 in dividends. The stock would be worth $685.26. Your total return would have been $982.77. This would be a total loss of 0.22% per year with 3.72% from capital loss and 3.50% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$21.31	$1,001.57	47	10	$297.51	$685.26	$982.77

However, if you had invested in this company in December 2019, for $1,001.16 you would have bought 108 shares at $9.27 per share. In December 2024, after 5 years you would have received $319.68 in dividends. The stock would be worth $1,574.64. Your total return would have been $1,894.32. This would be a total return of 14.63% per year with 9.48% from capital gain and 5.15% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$9.27	$1,001.16	108	5	$319.68	$1,574.64	$1,894.32

The current dividend yield is good with dividend growth low. The current dividend yield is good (5% to 6% ranges) at 5.84%. The 5, 10 and historical median dividend yields are moderate (2% to 4% ranges) at 4.91%, 4.61% and 4.44%. The dividend growth is low (below 8% per year) at 4.8% per year over the past 5 years. The last dividend increase was in 2024 and it was for 16.7%.

Dividends on this stock have gone down and well as up. Note dividend were decreased in 2020. Over the past 24 years, dividends have increased in 13 years and decreased in 5 years.

The Dividend Payout Ratios (DPR) are fine, but could improve. The DPR for 2024 for Earnings per Share (EPS) is too high at 62% with 5 year coverage at 52%. The DPR for 2024 for Funds from Operations (FFO) is good at 23% with 5 year coverage at 22%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is too high at 62% with 5 year coverage at 55%. A better DPR for AEPS is no higher than 49% (that is in the 40% range). The DPR for 2024 for Cash Flow per Share (CFPS) is good at 20% with 5 year coverage at 19%. The DPR for 2024 for Free Cash Flow (FCF) is good at 37% with 5 year coverage at 42%. There is no agreement on what FCF is.

Item	Cur	5 Years
EPS	61.79%	52.02%
FFO	22.55%	21.57%
AEPS	61.78%	54.64%
CFPS	19.64%	18.82%
FCF	37.02%	42.39%

Debt Ratios are fine, but the company has a fair bit of debt. The Long Term Debt/Market Cap Ratio for 2024 is fine at 0.60 and fine currently at 0.52. The Liquidity Ratio for 2024 is good at 2.32 and 2.24 currently. The Debt Ratio for 2024 is good at 1.77 and 1.77 currently. The Leverage and Debt/Equity Ratios for 2024 are fine at 2.29 and 1.29 and currently at 2.30 and 1.30.

Type	Year End	Ratio Curr
Lg Term	0.60	0.52
Intang/GW	0.38	0.39
Liquidity	2.32	2.24
Liq. + CF	2.55	3.06
Debt Ratio	1.77	1.77
Leverage	2.29	2.30
D/E Ratio	1.29	1.30

The Total Return per year is shown below for years of 5 to 27 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	4.84%	14.63%	9.48%	5.15%
2014	10	-4.46%	-0.22%	-3.72%	3.50%
2009	15	2.83%	4.19%	-0.76%	4.95%
2004	20	7.88%	5.48%	-0.65%	6.14%
1999	25	7.52%	11.34%	3.28%	8.05%
1997	27		9.17%	2.75%	6.41%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 8.97, 11.50 and 12.80. The corresponding 10 year ratios are 10.48, 13.47 and 18.45. The corresponding historical ratios are 10.84, 14.59 and 18.02. The current P/E Ratio is 11.81 based on a stock price of $14.38 and EPS estimate for 2025 of $1.22. 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 9.59, 11.50 and 12.80. The corresponding 10 year ratios are 14.87, 19.29 and 23.72. The corresponding historical ratios are 13.08, 16.19 and 19.24. The current P/E Ratio is 11.79 based on a stock price of $14.38 and EPS estimate for 2025 of $1.22. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $17.75. The 10-year low, median, and high median Price/Graham Price Ratios are 0.79, 1.02 and 1.25. The current P/GP Ratio is 0.81 based on a stock price of $14.38. 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 get a 10-year median Price/Book Value per Share Ratio of 1.32. The current P/B Ratio is 1.25 based on a stock price of $14.38, Book Value of $1,003M and Book Value per Share of $11.47. The current ratio is 5% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I also have a Book Value per Share estimate for 2025 of $11.89. The analyst calculates the Book Value differently than I do and has a 10 year P/B Ratio of 1.30. The current P/B Ratio is 1.21 with a stock price of $14.38 and a Book Value of $1,040. The current ratio is 7% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10-year median Price/Cash Flow per Share Ratio of 5.40. The current P/CF Ratio is 4.85 based on a Stock Price of $14.38, Cash Flow per Share estimate for 2025 of $2.96 and Cash Flow of $259M. The current ratio is 10% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get an historical median dividend yield of 4.44%. The current dividend yield is 5.84% based on dividends of $0.84 and a stock price of $14.38. The current dividend yield is 32% 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 4.69%. The current dividend yield is 5.84% based on dividends of $0.84 and a stock price of $14.38. The current dividend yield is 25% 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 0.70. The current P/S Ratio is 0.58 based on Revenue estimate for 2025 of $2,169M, Revenue per Share of $24.80 and a stock price of $14.38. The current ratio is 28% 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. The other tests say the stock price is either cheap or reasonable and below the median.

When I look at analysts’ recommendations, I find Strong Buy (3), Buy (7) and Hold (1). The consensus would be a Strong Buy. The 12 month stock price consensus is $16.64 with a high of $18.25 and low of $14.00. The consensus stock price of $16.64 implies a total return of 21.56% with 15.72% from capital gains and 5.84% from dividends based on a current stock price of $14.38.

The only entry for 2025 on Stock Chase gives it a weak buy. The two of the three entries for 2024 says Do Not Buy. They do not like the connection to the oil and gas industries. Amy Legate-Wolfe onMotley Fool thinks that Mullen is an overlooked opportunity. She thinks it has long term potential. Aditya Raghunath on Motley Fool thinks you should buy this stock for its cash flow. The company put out a press release via Globe Newswire about its fourth quarter of 2024 results. The company put out a press release via Globe Newswire about its first quarter of 2025 results.

Simply Wall Street via Yahoo Finance reviews this stock. Simply Wall Street conclusion is that they like Mullen Group's growing earnings per share and the fact that - while its payout ratio is around average - it paid out a lower percentage of its cash flow. Simply Wall Street has two warning messages out on this stock of has a high level of debt; and unstable dividend track record.

Mullen Group Ltd is a logistics provider with a network of independently operated businesses providing a wide range of service offerings including less-than-truckload, truckload, Specialized & Industrial Services warehousing and logistics, U.S., and International Logistics, and Corporate. The company also provides a diverse set of specialized services related to the energy, mining, forestry, and construction industries in western Canada. Its web site is here Mullen Group Ltd.

The last stock I wrote about was about was Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF) ... learn more. The next stock I will write about will be Canadian Utilities Ltd (TSX-CU, OTC-CDUAF) ... learn more on Friday, May 23, 2025 around 5 pm. Tomorrow on my other blog I will write about Ontario’s Economy Is Broken.... learn more on Thursday, May 22, 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.

Hammond Power Solutions Inc

Sound bite for Twitter is: Dividend Growth Industrial. Results of stock price testing is that the stock price is probably expensive. Debt Ratios are good. The Dividend Payout Ratios (DPR) are good. The current dividend yield is low with dividend growth good. See my spreadsheet on Hammond Power Solutions Inc.

Is it a good company at a reasonable price? This stock has great growth with very low DPRs and very good debt ratios. I am not surprised at the Strong Buy Rating because analysts think that this stock has great potential. The stock price is down off its recent high. It is certainly in the right business. Look at what a hog AI is with electricity. See article on Scientific American. I am certainly keeping the shares I have bought. The stock is testing as expensive, but the problem is that it may not get any cheaper in the future.

I own this stock of Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF). I bought this stock as my main purchase for the TFSA in 2013 and 2014. I picked Hammond initially in 2013 as my main buy because it has good growth and reasonable dividend. Also, I think that it important to try out newer smaller companies for investment purposes. Companies on the TSX are always changing and it is good to get into new industries and new companies. The problem of this, of course, is you do not always know what industries and companies will be long lasting. The TFSA account is my fooling around money account.

When I was updating my spreadsheet, I noticed that the stock has fallen a lot since the end of 2024. That is from a high of $157.35 to a low of $78.24 and has recovered somewhat to a current value of $101.52. I have shares in this company and as of April 30, 2025 I have a total return of 24.03% with 22.44% from capital gains and 1.59% from dividends.

If you had invested in this company in December 2014, for $1,005.58 you would have bought 137 shares at $7.34 per share. In December 2024, after 10 years you would have received $524.71 in dividends. The stock would be worth $17,542.85. Your total return would have been $18,067.56. This would be a total return of 34.58% per year with 33.10% from capital gain and 1.48% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$7.34	$1,005.58	137	10	$524.71	$17,542.85	$18,067.56

The current dividend yield is low with dividend growth good. The current dividend yield is low (below 2%) at 1.08%. The 5, 10 year and historical median dividend yields are moderate (2% to 4% ranges) at 2.29%, 3.17% and 2.65%. The dividend growth is good (15% and above) at 28% per year over the past 5 years. The last dividend increase was in 2024 and it was for 83%.

The Dividend Payout Ratios (DPR) are good. The DPR for 2024 for Earnings per Share (EPS) is good at 16% with 5 year coverage at 15%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 9% with 5 year coverage at 8%. The DPR for 2024 for Free Cash Flow (FCF) is good at 19% with 5 year coverage at 14%. There is no agreement on what the FCF is.

Item	Cur	5 Years
EPS	16.22%	14.72%
CFPS	8.93%	8.01%
FCF	18.82%	14.03%

Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.01 and currently at 0.01. The Liquidity Ratio for 2024 is good at 1.99 and 2.10 currently. The Debt Ratio for 2024 is good at 2.66 and 2.81 currently. The Leverage and Debt/Equity Ratios for 2024 are good at 1.60 and 0.60 and currently at 1.55 and 0.55.

Type	Year End	Ratio Curr
Lg Term	0.01	0.01
Intang/GW	0.02	0.03
Liquidity	1.99	2.10
Liq. + CF	2.31	2.36
Debt Ratio	2.66	2.81
Leverage	1.60	1.55
D/E Ratio	0.60	0.55

The Total Return per year is shown below for years of 5 to 23 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	28.34%	77.82%	75.55%	2.27%
2014	10	15.05%	34.58%	33.10%	1.48%
2009	15	16.39%	20.18%	19.19%	0.99%
2004	20		28.40%	26.85%	1.55%
2001	23		25.43%	24.36%	1.06%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 3.71, 8.06 and 9.52. The corresponding 10 year ratios are 6.18, 8.83 and 11.84. The corresponding historical ratios are 6.13, 8.49 and 9.88. The current ratio is 13.68 based on a stock price of $101.52 and EPS estimate for 2025 of $7.42. The current ratio is above the high ratio of the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. (Note that the median P/E Ratio has climbed from 5.35 in 2020 to 19.60 in 2024.)

I get a Graham Price of $67.92. The 10-year low, median, and high median Price/Graham Price Ratios are 0.45, 0.62 and 0.78. The current P/GP Ratio is 1.49 based on a stock price of $101.52. The current ratio is above the high ratio of the 10 year median ratio. 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 0.83. The current P/B Ratio is 3.68 based on a book value of $329M, Book Value per Share of $27.62 and a stock price of $101.52. The current ratio is 341% 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 $32.55. This implies a P/B Ratio of 3.12 with a Book Value of $388M and a stock price of $101.52. This ratio is 274% 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 5.66. The current P/CF Ratio is 21.79 based on Cash Flow for the last 12 months of $55.5M, Cash Flow per Share of $4.66 and a stock price of $101.52. The current ratio is 285% 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 2.65%. The current dividend yield is 1.08% based on dividends of $1.10 and a stock price of $101.52. The current dividend yield is 59% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year median dividend yield of 3.17%. The current dividend yield is 1.08% based on dividends of $1.10 and a stock price of $101.52. The current dividend yield is 66% below the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively expensive.

The 10-year median Price/Sales (Revenue) Ratio is 0.30. The current P/S Ratio is 1.42 based on Revenue estimate for 2024 of $854M, Revenue per Share of $71.73 and a stock price of $101.52. The current ratio is 368% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

Results of stock price testing is that the stock price is probably expensive. The dividend yield tests are saying the stock price is expensive and this is confirmed by the P/S Ratio test. All the tests are saying that the stock price is relatively expensive.

When I look at analysts’ recommendations, I find Strong Buy (2) and Buy (2). The consensus is a Strong Buy. The 12 month stock price consensus is $148.25 with a high of $157.00 and low of $140.00. The consensus stock price of $148.25 implies a total 47.11% with 46.03% from capital gains and 1.08% from dividends based on a current stock price of $101.52.

Mainly analysts on Stock Chase are saying the price is too high. One analyst thinks they have capacity constraints going forward. Amy Legate-Wolfe on Motley Fool says this blue-chip stock is being hammered, but it should not be. Sneha Nahata on Motley Fool says Hammond is a long term bet to capitalize on the growing electrification trend and high power demand. The company put out a press release via Globe Newswire about their fourth quarter of 2024. The company put out a press release via Global Newswire about their first quarter of 2025.

Simply Wall Street via Yahoo Finance reviews this stock and is worried about a high Accrual ratio. Simply Wall Street via Yahoo Finance say that the company is under price. They give a fair value of $161.58 to this stock. Simply Wall Street gives two warnings of high level of non-cash earnings; and earnings are forecast to decline by an average of 1.1% per year for the next 3 years. (Note that the earnings estimates that I picked up show an increase in earnings.)

I calculate an accrual ratio for all my stocks. I must admit the accrual ratio for this stock is positive and high. Generally, it means that the stock price will fall. However, this does not always happen. I have 25 years of data on this company accrual ratio. This ratio has been below 5.00 or above 5.00 14 times. The movement of the stock up or down for the accrual ratio has been correct 6 times. This has occurred mostly when the accrual ratio is pointing to that the stock price will increase. I calculate my accrual ratio based on a paper I read some years ago.

Hammond Power Solutions Inc is engaged in designing and manufacturing custom electrical magnetics, cast resin, custom liquid-filled distribution and power transformers, and standard electrical transformers, serving the electrical and electronic industries. The company operates in various geographical markets including Canada, the United States, Mexico, and India from which it derives majority revenue in the United States and Mexico. Its web site is here Hammond Power Solutions Inc.

The last stock I wrote about was about was Ag Growth International (TSX-AFN, OTC-AGGZF) ... learn more. The next stock I will write about will be Mullen Group Ltd (TSX-MTL, OTC-MLLGF) ... learn more on Wednesday, May 21, 2025 around 5 pm. Tomorrow on my other blog I will write about Friedman on Europe.... learn more on Tuesday, May 20, 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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