Is it a good company at a reasonable price? This stock is going to bought out next year. The only people interested in buying this stock are people who can buy lots and make a good profit on a small margin. I have not sold this stock yet because I have not come up with any stock to replace it.
I own this stock of Guardian Capital Group (TSX-GCG.A, OTC-GCAAF). I read about this stock some years ago and when I was looking for a new stock to follow, it sounded interesting.
When I was updating my spreadsheet, I noticed I have a big gain percentage wise, but I was just starting to invest in this stock and so only had 100 shares so my return is 75.68%, but I only gained for my portfolio just over $2,400.00. This stock is going to be bought out by Desjardins early next year. The stock price shot up in August 2025 because of the buyout.
There is a news item on Yahoo Finance from Investing.com about Guardian Capital stock soaring because it is being bought out by Desjardins. The expected close of this is early in 2026. Because of this, shares are up 57% this year.
If you had invested in this company in December 2014, for $1,014.03 you would have bought 57 shares at $17.79 per share. In December 2024, after 10 years you would have received $404.13 in dividends. The stock would be worth $2,431.05. Your total return would have been $2,835.18. This would be a total return of 11.55% per year with 9.14% from capital gain and 2.41% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $17.79 | $1,014.03 | 57 | 10 | $404.13 | $2,431.05 | $2,835.18 |
The current dividend yield is moderate with dividend growth good. The current dividend yield is low (2% to 4% range) at 2.33%. The 5 and 10 year median dividend yields are also moderate at 2.85% and 2.29%. The historical median dividend yield is low (below 2%) at 1.73%. The dividend growth is good (above 15% per year) at 20.1% per year over the past 5 years.
The Dividend Payout Ratios (DPR) are fine. The DPR for 2024 for Earnings per Share (EPS) is good at 35% with 5 year coverage at 15%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is good at 35% with 5 year coverage at 35%. The DPR for 2024 for Cash Flow per Share (CFPS) is high at 77% with 5 year coverage at good 31%. The DPR for 2024 for Free Cash Flow (FCF) is high at 50% with 5 year coverage good at 39%. The FCF for 2024 varies from $51.8M to $85.6M.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 35.37% | 15.02% |
| AEPS | 35.37% | 35.26% |
| CFPS | 76.52% | 31.24% |
| FCF | 50.10% | 39.01% |
Debt Ratios are fine, but Liquidity should be improved. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.34 and currently at 0.22. The Liquidity Ratio for 2024 is too low at 0.84 and 0.78 currently. If you added in Cash Flow after dividends, the ratios are still too low at 0.94 and currently at 0.81. If you add back in current portion of the debt the ratios are fine at 2.60 and 3.42. The Debt Ratio for 2024 is good at 3.07 and 3.92 currently. The Leverage and Debt/Equity Ratios for 2024 are good at 1.48 and 0.48 and currently at 1.43 and 0.44.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.34 | 0.22 |
| Intang/GW | 0.24 | 0.14 |
| Liquidity | 0.84 | 0.78 |
| Liq. + CF | 0.94 | 0.81 |
| Liq. + CF +D | 2.60 | 3.42 |
| Debt Ratio | 3.07 | 3.29 |
| Leverage | 1.48 | 1.43 |
| D/E Ratio | 0.48 | 0.44 |
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 | 20.11% | 12.63% | 9.70% | 2.94% |
| 2014 | 10 | 18.75% | 11.55% | 9.14% | 2.41% |
| 2009 | 15 | 16.33% | 14.30% | 11.83% | 2.47% |
| 2004 | 20 | 23.88% | 9.68% | 7.94% | 1.74% |
| 1999 | 25 | 22.03% | 14.08% | 11.80% | 2.29% |
| 1994 | 30 | 20.24% | 14.23% | 12.25% | 1.98% |
| 1990 | 34 | 14.87% | 13.01% | 1.86% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 3.72, 4.55 and 5.39. The corresponding 10 year ratios are 5.77, 6.87 and 7.65. The corresponding historical ratios are 10.60, 13.77 and 15.90. The current ratio is 22.47 based on a stock price of $66.96 and EPS of $2.98. the current ratio is above the high ratio of the 10 year median ratio. This stock price testing suggests that the stock price is expensive. Note that the 5 and 10 year ratios are low because of a recent year with an earnings loss.
Results of any stock price testing is that the stock price testing does not really matter because the stock will be bought out at next year. I only did one test on the P/E Ratio.
When I look at analysts’ recommendations, I find Strong Buy (2), Hold (1). The consensus is a Strong Buy. There is not much information on analysts’ recommendations as this stock is due to be bought out probably early next year at $68.00 a share. This is 3.88% higher than the current stock price of $66.96 with 1.55% from capital gains and 2.33% from dividends.
The last entry on Stock Chase is for 2023. Analysts thought that the stock was undervalued. Adam Othman on Motley Fool wrote on this stock back in 2022. He thought that the stock would continue to go down and suggested people buy on the dips. The company put out a Press Release via Globe Newswire about their fourth quarter of 2024 results. The company put out a press release via Globe Newswire about their second quarter of 2025 results.
Simply Wall Street via Yahoo Finance reviews this stock. Simply Wall Street has two warnings out on this stock of volatile share price over the past 3 months compared to the Canadian market; and large one-off items impacting financial results.
Guardian Capital Group Ltd is a diversified financial services company. Geographically, the company operates in Canada, United Kingdom, United States, and others, of which it derives maximum revenue from Canada. Its web site is here Guardian Capital Group.
The last stock I wrote about was about was Quarterhill Inc (TSX-QTRH, OTC-QTRHF) ... learn more. The next stock I will write about will be Northland Power Inc (TSX-NPI, OTC-NPIFF) ... learn more on Friday, November 14, 2025 around 5 pm. Tomorrow on my other blog I will write about Understanding AI.... learn more on Thursday, November 13, 2025 around 5 pm.
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