This is a company (TSX-CNR) that I have owned since July 2005. I also bought some more stock in January 2009. I have made a return of 15.6% per year on this stock. Most of this return is in capital gain, as only around 2% would be from dividends.
When I look at the Insider trading report, I find that there is a lot of insider selling ($27M) and small amount of insider buying ($1.7) over the past year. A lot of the insider selling seems to be of options by officers of the company. Except for the directors, other insiders have a lot more options that stock. A sign of insider confidence in this company is the recent dividend increase of some 20%.
I get a 5 year median low Price/Earnings Ratio of 10.9 and a 5 year median high P/E Ratio of 14.6. So, the current P/E Ratio I get of 15.4 is relatively high for this stock. I get a Graham Price of $50.92. The stock price of $72.22 is some 29.5% higher than the Graham Price. On average, the stock price is some 11% higher than the Graham Price. At the 5 year average high stock price, the stock price is some 29% higher than the Graham Price. This also shows a relatively high stock price.
I get a 10 year average Price/Book Value Ratio of 2.18 and a current P/B Ratio of 2.95. So this ratio is around 35% higher than the 10 year average. I get a 5 year average dividend yield of 1.7% and a current yield of 1.8%. So by this standard, the stock price is reasonable. Do not forget that the Graham Price and P/E Ratios are based on estimates, where the P/B Ratio and Dividend yield are not.
When I look at analyst recommendations, I find ones of Strong Buy, Buy and Hold. There are a lot of Hold recommendations, but the consensus recommendation would be a Buy because of the Strong Buy recommendations. (See my site for information on analyst ratings.)
Even the analysts with Buy recommendations state that this stock has trouble getting a higher P/E Ratio than 15. Analysts with Hold recommendations worry that the price of oil will adversely affect this company’s performance. Analysts with Hold recommendations see the company being around $73.50 in twelve months time and those with a Buy recommendation see the company with a stock price of some $85 in twelve months time.
This company has performed well for me and I will hold on to it. However, I have enough stock in railways; so I will not be buying any more in this sector. This company plays an essential role in our Canadian economy. It is also on the dividend lists that I follow of Dividend Achievers and Dividend Aristocrats (see indices).
Canadian National Railway Company and its operating railway subsidiaries, spans Canada and mid-America, from the Atlantic and Pacific oceans to the Gulf of Mexico, serving the ports of Vancouver, Prince Rupert, B.C., Montreal, Halifax, New Orleans, and Mobile, Ala., and the key metropolitan areas of Toronto, Buffalo, Chicago, Detroit, Duluth, Minn./Superior, Wis., Green Bay, Wis., Minneapolis/St. Paul, Memphis, St. Louis, and Jackson, Miss., with connections to all points in North America. Its web site is here CNR. See my spreadsheet at cnr.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on twitter.
Monday, March 14, 2011
Friday, March 11, 2011
Canadian National Railway
This is a company (TSX-CNR) that I have owned since July 2005. I also bought some more stock in January 2009. I have made a return of 15.6% per year on this stock. Most of this return is in capital gain, as only around 2% would be from dividends. I have stocks with difference dividend rates and different growth rates.
Often those with low dividends have higher dividend growth rates. The growth rate on dividends for this company is good. I have had this company for 6 years and I am making a return on my original investment of 3.4%. The current dividend rate is just 1.8%. This company has just raised their dividends by 20%. The dividend growth potential of this stock over the next 5 and 10 years is 3.9% and 8.3%, respectively. This calculation is assuming using the current dividend growth of 16.5% and you buy at the current stock price of $72.22.
Some of the best growth rates for this stock are the earnings and total return. The earnings over the past 5 and 10 years have grown at the rate of 10% and 11% per year, respectively. The total return has grown over the past 5 and 10 years at the rate of 9% and 18% per year, respectively.
The growth in cash flow over the last 10 years is good, but only so so, for the last 5 years. The Cash Flow growth for the last 5 and 10 year is 5.3% per year and 9% per year, respectively. The cash flow excluding working capital for the last 5 and 10 years is 3.3% and 9%. This second type of cash flow is not as good as the first, but many analysts feel that cash flow excluding working capital is the cash flow to follow.
Book Value growth is ok, but not great. The book value growth for the last 5 and 10 years is 7.3% and 7.8% per year, respectively. When you look at Return on Equity, this company has a very good one. The ROE for the financial year ending in December 2010 is 18.7% and the 5 year average is 18.9%.
The first debt ratio I looked at is the Liquidity Ratio and it is low at 0.83. This means that the current assets cannot cover the current debt. However, the reason it is low is that a current portion of the long term debt is included but there seems to be facilities to handle this debt. Without the current portion of the long term debt, the Liquidity ratio is 1.16. Still low, but at least the current assets can cover the current liabilities.
The next debt ratio is the Asset/Liability Ratio. This is much better at 1.80. The next ratio to look at is the Leverage Ratio and the Debt/Equity Ratio. The Leverage ratio is 2.44 and the Debt/Equity Ratio is 1.44. Neither of these ratios is particularly low, but they are not particularly high. When comparing debt ratios, you need to compare them within an industry.
On Monday, I will look to see what the analysts are saying about this stock and what my spreadsheet says about the current stock price.
Also, I have notice that the stock market has been going down lately. Do not forget that the market goes down, not because of problems; but when investors decide to worry about problems. Not only are investors emotional, they also act like a mob.
Canadian National Railway Company and its operating railway subsidiaries, spans Canada and mid-America, from the Atlantic and Pacific oceans to the Gulf of Mexico, serving the ports of Vancouver, Prince Rupert, B.C., Montreal, Halifax, New Orleans, and Mobile, Ala., and the key metropolitan areas of Toronto, Buffalo, Chicago, Detroit, Duluth, Minn./Superior, Wis., Green Bay, Wis., Minneapolis/St. Paul, Memphis, St. Louis, and Jackson, Miss., with connections to all points in North America. Its web site is here CNR. See my spreadsheet at cnr.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on twitter.
Often those with low dividends have higher dividend growth rates. The growth rate on dividends for this company is good. I have had this company for 6 years and I am making a return on my original investment of 3.4%. The current dividend rate is just 1.8%. This company has just raised their dividends by 20%. The dividend growth potential of this stock over the next 5 and 10 years is 3.9% and 8.3%, respectively. This calculation is assuming using the current dividend growth of 16.5% and you buy at the current stock price of $72.22.
Some of the best growth rates for this stock are the earnings and total return. The earnings over the past 5 and 10 years have grown at the rate of 10% and 11% per year, respectively. The total return has grown over the past 5 and 10 years at the rate of 9% and 18% per year, respectively.
The growth in cash flow over the last 10 years is good, but only so so, for the last 5 years. The Cash Flow growth for the last 5 and 10 year is 5.3% per year and 9% per year, respectively. The cash flow excluding working capital for the last 5 and 10 years is 3.3% and 9%. This second type of cash flow is not as good as the first, but many analysts feel that cash flow excluding working capital is the cash flow to follow.
Book Value growth is ok, but not great. The book value growth for the last 5 and 10 years is 7.3% and 7.8% per year, respectively. When you look at Return on Equity, this company has a very good one. The ROE for the financial year ending in December 2010 is 18.7% and the 5 year average is 18.9%.
The first debt ratio I looked at is the Liquidity Ratio and it is low at 0.83. This means that the current assets cannot cover the current debt. However, the reason it is low is that a current portion of the long term debt is included but there seems to be facilities to handle this debt. Without the current portion of the long term debt, the Liquidity ratio is 1.16. Still low, but at least the current assets can cover the current liabilities.
The next debt ratio is the Asset/Liability Ratio. This is much better at 1.80. The next ratio to look at is the Leverage Ratio and the Debt/Equity Ratio. The Leverage ratio is 2.44 and the Debt/Equity Ratio is 1.44. Neither of these ratios is particularly low, but they are not particularly high. When comparing debt ratios, you need to compare them within an industry.
On Monday, I will look to see what the analysts are saying about this stock and what my spreadsheet says about the current stock price.
Also, I have notice that the stock market has been going down lately. Do not forget that the market goes down, not because of problems; but when investors decide to worry about problems. Not only are investors emotional, they also act like a mob.
Canadian National Railway Company and its operating railway subsidiaries, spans Canada and mid-America, from the Atlantic and Pacific oceans to the Gulf of Mexico, serving the ports of Vancouver, Prince Rupert, B.C., Montreal, Halifax, New Orleans, and Mobile, Ala., and the key metropolitan areas of Toronto, Buffalo, Chicago, Detroit, Duluth, Minn./Superior, Wis., Green Bay, Wis., Minneapolis/St. Paul, Memphis, St. Louis, and Jackson, Miss., with connections to all points in North America. Its web site is here CNR. See my spreadsheet at cnr.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on twitter.
Thursday, March 10, 2011
Canadian Helicopters Group 2
I recently read a favorable report about this stock (TSX-CHL.A), so I decided to investigate it and see if it was indeed this company would make a good investment. I picked it up from Financial Post. The Financial Post had an article about screening for small caps.
Because this company recently converted from an income trust to a corporation, there is only insider trading information available from the beginning of this year. There has been no insider buying or insider selling in this company since the beginning of this year. Although it appears that insiders do own shares, the only really significant insider holding is by Fonds de Solidarité FTQ that owns around 25% of the outstanding shares. This insider is sponsored by Quebec Federation of Labour as a region investment tool.
The 5 year median low Price/Earnings Ratio is 4.1 and the 5 year median high P/E Ratio is 6.6 with the 5 year median average P/E Ratio being 5.8. The current P/E Ratio is 6.4 and even though this is a low P/E Ratio, it is relatively high and almost at the 5 year median high level. I get a current Graham Price of $28.45. The current stock price of $17.45 is some 39% below the Graham Price. However, on average, the difference between the Graham Price and the stock price is that the stock price is 43% lower than the Graham Price. So on a relatively basis, the stock price is high.
The 6 year average Price/Book Value Ratio is 0.97. The current P/B Ratio is 1.31. Although, here again the ratio is low, it is not low on a relative basis. The last thing to look at is the dividend yield. The current yield is 6.3% and the 5 year average is 10.9%. So, even though this yield in absolute terms is good, it is lower than the 5 year average.
When I look at analysts’ recommendations, I find only one and that one is a buy. There may only be one analyst following this stock. (See my site for information on analyst ratings.) This company is liked for its clean balance sheet and the fact it may be getting more contracts. It is considered a buy up to $16.
The price is low on an absolute basis, but not on a relative basis. But even on a relative basis, stock price is near the top, but it is not extraordinarily high. It does have very little debt, so it could weather a problem in the economy. It also has reasonable payout ratios. One commentator said it might be an interesting place to park your money.
Also, today Dividend Ninja has an interesting article on the Dividend Payout Ratio (DPR) on his site.
Also, I am asked to review specific stocks from time to time. However, there is a lot of work involved in producing a spreadsheet that is the basis of my reviews. Few requests come with a reason why I, a dividend investor, might possibly be interested in a stock. For this stock, I reviewed it because of a report that said the company was a small cap stock with a good dividend and low debt. It looked like a stock I might possibly interested in investing in at some point. I am sorry if I ignore most requests to review a stock, but, as I said, there is a lot of work involved.
Canadian Helicopters Limited is the largest helicopter transportation services company operating in Canada. Canadian Helicopters provides helicopter services to a broad range of sectors, including emergency medical services, infrastructure maintenance, utilities, oil and gas, mining, forestry and construction. In addition to helicopter transportation services, Canadian Helicopters operates two flight schools, provides third party repair and maintenance services in Canada and provides military support in Afghanistan. Its web site is here CDN Helicopters. See my spreadsheet at chl.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on twitter.
Because this company recently converted from an income trust to a corporation, there is only insider trading information available from the beginning of this year. There has been no insider buying or insider selling in this company since the beginning of this year. Although it appears that insiders do own shares, the only really significant insider holding is by Fonds de Solidarité FTQ that owns around 25% of the outstanding shares. This insider is sponsored by Quebec Federation of Labour as a region investment tool.
The 5 year median low Price/Earnings Ratio is 4.1 and the 5 year median high P/E Ratio is 6.6 with the 5 year median average P/E Ratio being 5.8. The current P/E Ratio is 6.4 and even though this is a low P/E Ratio, it is relatively high and almost at the 5 year median high level. I get a current Graham Price of $28.45. The current stock price of $17.45 is some 39% below the Graham Price. However, on average, the difference between the Graham Price and the stock price is that the stock price is 43% lower than the Graham Price. So on a relatively basis, the stock price is high.
The 6 year average Price/Book Value Ratio is 0.97. The current P/B Ratio is 1.31. Although, here again the ratio is low, it is not low on a relative basis. The last thing to look at is the dividend yield. The current yield is 6.3% and the 5 year average is 10.9%. So, even though this yield in absolute terms is good, it is lower than the 5 year average.
When I look at analysts’ recommendations, I find only one and that one is a buy. There may only be one analyst following this stock. (See my site for information on analyst ratings.) This company is liked for its clean balance sheet and the fact it may be getting more contracts. It is considered a buy up to $16.
The price is low on an absolute basis, but not on a relative basis. But even on a relative basis, stock price is near the top, but it is not extraordinarily high. It does have very little debt, so it could weather a problem in the economy. It also has reasonable payout ratios. One commentator said it might be an interesting place to park your money.
Also, today Dividend Ninja has an interesting article on the Dividend Payout Ratio (DPR) on his site.
Also, I am asked to review specific stocks from time to time. However, there is a lot of work involved in producing a spreadsheet that is the basis of my reviews. Few requests come with a reason why I, a dividend investor, might possibly be interested in a stock. For this stock, I reviewed it because of a report that said the company was a small cap stock with a good dividend and low debt. It looked like a stock I might possibly interested in investing in at some point. I am sorry if I ignore most requests to review a stock, but, as I said, there is a lot of work involved.
Canadian Helicopters Limited is the largest helicopter transportation services company operating in Canada. Canadian Helicopters provides helicopter services to a broad range of sectors, including emergency medical services, infrastructure maintenance, utilities, oil and gas, mining, forestry and construction. In addition to helicopter transportation services, Canadian Helicopters operates two flight schools, provides third party repair and maintenance services in Canada and provides military support in Afghanistan. Its web site is here CDN Helicopters. See my spreadsheet at chl.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on twitter.
Wednesday, March 9, 2011
Canadian Helicopters Group
I recently read a favorable report about this stock (TSX-CHL.A), so I decided to investigate it and see if it was indeed this company would make a good investment. I picked it up from Financial Post. The Financial Post had an article about screening for small caps. This company has recently changed from and income trust (TSX-CHL.UN) to a corporation. The dividends or distributions seem to be holding steady.
The dividends are one reason I would currently not buy this stock. There has really only been one dividend increase (2008) of 4.5% since this company started to pay dividends as an income trust in 2005. Before that date, the company seems to have been a private one. However, the current dividend is a very healthy one at 6.3%. But, I prefer stocks that have a habit of increasing their dividends.
This company has only been public since 2005, so I only have 5 years of data on my spreadsheet. I can see why this stock was chosen, as the total return on this stock is around 20%, with 10% of this return coming from dividend income. The company also has a relatively low payout ratios averages for the last 5 years, with an Earnings Payout Ratio at 62% and a Cash Flow Payout Ratio of 43%. Low payout ratios give confidence that dividend payments can be maintained and possibly raised.
Some of the growth figures on this stock are ok, but not great. Take the growth in revenue per share, as this has only grown at the rate of 5.5% per year and 5% per year over the past 5 and 8 years. (As the company was established before it went public as an income trust in 2005, I have revenue figures back to 2002.) The growth in book value is also rather low at 6.6% per year for the last 5 years. However, it is rather typical of income trusts to have very low or even negative book value growth.
The growth in cash flow has been uneven and is at negative 11%. However, the growth in cash flow excluding working capital is at 30% per year over the past 5 years. As this stock ages, and we get more statistics, these growth figures might change for the better.
An important thing for a small cap stock to have is good debt ratios. This is the case for this stock. The Liquidity Ratio currently at 3.57 and the company has a 5 year average at 2.10. The current Asset/Liability Ratio is 4.23 with a 5 year average of 3.62. For these ratios, anything over 1.50 is very good. The Leverage Ratio is 1.68 with a 5 year average of 1.81 and a Debt/Equity Ratio of 0.40 with a 5 year average of 0.54. For the last two ratios, lower is better. Both the ratios are good.
The last thing to talk about is the Return on Equity. The financial year ending in December 2009 had a ROE of 16.7% and the 9 month financial period ending in September 2010 has a ROE of 13.7%. The 5 year average is 15.3% and this is good.
There are not many analysts following this stock, but I will talk tomorrow about analyst recommendations. I will also talk what my spreadsheet says about the stock market price.
Canadian Helicopters Limited is the largest helicopter transportation services company operating in Canada. Canadian Helicopters provides helicopter services to a broad range of sectors, including emergency medical services, infrastructure maintenance, utilities, oil and gas, mining, forestry and construction. In addition to helicopter transportation services, Canadian Helicopters operates two flight schools, provides third party repair and maintenance services in Canada and provides military support in Afghanistan. Its web site is here CDN Helicopters. See my spreadsheet at chl.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on twitter.
The dividends are one reason I would currently not buy this stock. There has really only been one dividend increase (2008) of 4.5% since this company started to pay dividends as an income trust in 2005. Before that date, the company seems to have been a private one. However, the current dividend is a very healthy one at 6.3%. But, I prefer stocks that have a habit of increasing their dividends.
This company has only been public since 2005, so I only have 5 years of data on my spreadsheet. I can see why this stock was chosen, as the total return on this stock is around 20%, with 10% of this return coming from dividend income. The company also has a relatively low payout ratios averages for the last 5 years, with an Earnings Payout Ratio at 62% and a Cash Flow Payout Ratio of 43%. Low payout ratios give confidence that dividend payments can be maintained and possibly raised.
Some of the growth figures on this stock are ok, but not great. Take the growth in revenue per share, as this has only grown at the rate of 5.5% per year and 5% per year over the past 5 and 8 years. (As the company was established before it went public as an income trust in 2005, I have revenue figures back to 2002.) The growth in book value is also rather low at 6.6% per year for the last 5 years. However, it is rather typical of income trusts to have very low or even negative book value growth.
The growth in cash flow has been uneven and is at negative 11%. However, the growth in cash flow excluding working capital is at 30% per year over the past 5 years. As this stock ages, and we get more statistics, these growth figures might change for the better.
An important thing for a small cap stock to have is good debt ratios. This is the case for this stock. The Liquidity Ratio currently at 3.57 and the company has a 5 year average at 2.10. The current Asset/Liability Ratio is 4.23 with a 5 year average of 3.62. For these ratios, anything over 1.50 is very good. The Leverage Ratio is 1.68 with a 5 year average of 1.81 and a Debt/Equity Ratio of 0.40 with a 5 year average of 0.54. For the last two ratios, lower is better. Both the ratios are good.
The last thing to talk about is the Return on Equity. The financial year ending in December 2009 had a ROE of 16.7% and the 9 month financial period ending in September 2010 has a ROE of 13.7%. The 5 year average is 15.3% and this is good.
There are not many analysts following this stock, but I will talk tomorrow about analyst recommendations. I will also talk what my spreadsheet says about the stock market price.
Canadian Helicopters Limited is the largest helicopter transportation services company operating in Canada. Canadian Helicopters provides helicopter services to a broad range of sectors, including emergency medical services, infrastructure maintenance, utilities, oil and gas, mining, forestry and construction. In addition to helicopter transportation services, Canadian Helicopters operates two flight schools, provides third party repair and maintenance services in Canada and provides military support in Afghanistan. Its web site is here CDN Helicopters. See my spreadsheet at chl.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on twitter.
Tuesday, March 8, 2011
Medtronic Inc 2
This is the token US health care stock (NYSE-MDT) that I follow. What I am trying to see is, would have I made any money investing in this US Stock in the past? For the few US stocks that I do follow, it does not appear I would have made any money, including making money on this one.
I do not find the US information on insider trading as good as the Canadian information. However, it is clear in this case that there is more insider buying over the past year than there was in insider selling. Also, the most recent insider trading has all been insider buying. The other promising thing is that dividends were recently raised by 9.8%.
The next thing to look at is historical Price Earnings Ratios. The 5 year median low P/E ratio is 23.5 and the 5 year median high is 28.5. These are high P/E Ratios. However, the current is rather low at 11.5. This shows a current good stock price. When I look at the Graham Price, I get a current one of $33.08. The current stock price of $38.96 is some 18% higher. However, the average 10 year difference between the low stock price and the Graham Price is 160%. The stock price has in the past been way higher than the Graham Price.
This stock has a 10 year average Price/Book Value Ratio of 6.06. The current P/B Ratio of 2.72 is 45% lower than this 10 year average. The last thing to look at is the dividend yield. The current yield is 2.3% and the 5 year average is 1.3%. So, by this measure the stock price is also low.
When I look at analysts’ recommendations, I find that there are ones in all categories of Strong Buy, Buy, Hold, Underperform and Sell. Most are in the Hold category, but there are also a lot of Strong Buy recommendations. The consensus recommendation would be a Buy. (See my site for information on analyst ratings.)
Here is a review from The Money Times site. There is another review at Blogging Stocks.
Some people think that now is the time to get into US stocks since our currency is so high. We can make some money if our currency stays where it is and make a lot of money, if our currency goes down again, against the US$.
Medtronic is the world's leading medical technology company, pioneering device-based therapies that restore health, extend life and alleviate pain. Primary products include those for bradycardia pacing, tachyarrhythmia management, atrial fibrillation management, among others. Medtronic operates its business in one reportable segment, that of manufacturing and selling device-based medical therapies. The company does business in more than 120 countries. The company's product lines include cardiac rhythm management, neurological and spinal, vascular and cardiac surgery. Its web site is here Medtronic. See my spreadsheet at mdt.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on twitter.
I do not find the US information on insider trading as good as the Canadian information. However, it is clear in this case that there is more insider buying over the past year than there was in insider selling. Also, the most recent insider trading has all been insider buying. The other promising thing is that dividends were recently raised by 9.8%.
The next thing to look at is historical Price Earnings Ratios. The 5 year median low P/E ratio is 23.5 and the 5 year median high is 28.5. These are high P/E Ratios. However, the current is rather low at 11.5. This shows a current good stock price. When I look at the Graham Price, I get a current one of $33.08. The current stock price of $38.96 is some 18% higher. However, the average 10 year difference between the low stock price and the Graham Price is 160%. The stock price has in the past been way higher than the Graham Price.
This stock has a 10 year average Price/Book Value Ratio of 6.06. The current P/B Ratio of 2.72 is 45% lower than this 10 year average. The last thing to look at is the dividend yield. The current yield is 2.3% and the 5 year average is 1.3%. So, by this measure the stock price is also low.
When I look at analysts’ recommendations, I find that there are ones in all categories of Strong Buy, Buy, Hold, Underperform and Sell. Most are in the Hold category, but there are also a lot of Strong Buy recommendations. The consensus recommendation would be a Buy. (See my site for information on analyst ratings.)
Here is a review from The Money Times site. There is another review at Blogging Stocks.
Some people think that now is the time to get into US stocks since our currency is so high. We can make some money if our currency stays where it is and make a lot of money, if our currency goes down again, against the US$.
Medtronic is the world's leading medical technology company, pioneering device-based therapies that restore health, extend life and alleviate pain. Primary products include those for bradycardia pacing, tachyarrhythmia management, atrial fibrillation management, among others. Medtronic operates its business in one reportable segment, that of manufacturing and selling device-based medical therapies. The company does business in more than 120 countries. The company's product lines include cardiac rhythm management, neurological and spinal, vascular and cardiac surgery. Its web site is here Medtronic. See my spreadsheet at mdt.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on twitter.
Monday, March 7, 2011
Medtronic Inc
This is the token US health care stock (NYSE-MDT) that I follow. What I am trying to see is, would have I made any money investing in this US Stock in the past? For the few US stocks that I do follow, it does not appear I would have made any money, including making money on this one.
Looking at dividend increases, for US investors the 5 and 10 year growth in dividends is at the rate of 19.3% and 18% per year, respectively. For a Canadian investor, we would not have done that badly in dividend growth as the 5 and 10 year growth in dividend was 14% per year and 13% per year, respectively.
Where this stock fails for Canadians is that we would not have made any money on it over the past 5 or 10 years. Total returns would be a negative 7% per year and a negative 5% per year, respectively. The last 5 year period that a Canadian would have made any money on this stock was 2004, where the total return was 5.7% per year. For all 5 year periods since 2004, Canadians would have not made any positive returns.
Americans investing in this stock over the past 5 and 10 years would not have made any money either, but they would have lost less. The 5 and 10 year total return in US$ would be negative 2.5% and a negative 1% per year, respectively.
However, the company itself has not done badly. Revenue has increased over the past 5 and 10 years at the rate of 12% and 13% per share per year, respectively. Cash Flow has increased over the past 5 and 10 years at the rate of 8.6% and 11.5% per year, respectively. Also, Book Value has increased over the past 5 and 10 years at the rate of 9% and 13.5% per year, respectively.
The debt ratios are fine on this stock. The Liquidity Ratio is currently at 1.51 and has a 5 year average of 2.39. The Asset/Liability Ratio is 2.01 with a 5 year average of 2.12. The Leverage Ratio is currently at 1.99 with a 10 year average of 1.72. The Debt/Equity Ratio is currently at 0.99 with a 10 year average of .072.
The last thing to talk about is the Return on Equity. The ROE for the last 12 months is good at 21.3%. The 5 year average is also good at 24.4%.
Tomorrow, I will look at what the analysts say and what my spreadsheet says on this stock.
Medtronic is the world's leading medical technology company, pioneering device-based therapies that restore health, extend life and alleviate pain. Primary products include those for bradycardia pacing, tachyarrhythmia management, atrial fibrillation management, among others. Medtronic operates its business in one reportable segment, that of manufacturing and selling device-based medical therapies. The company does business in more than 120 countries. The company's product lines include cardiac rhythm management, neurological and spinal, vascular and cardiac surgery. Its web site is here Medtronic. See my spreadsheet at mdt.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on twitter.
Looking at dividend increases, for US investors the 5 and 10 year growth in dividends is at the rate of 19.3% and 18% per year, respectively. For a Canadian investor, we would not have done that badly in dividend growth as the 5 and 10 year growth in dividend was 14% per year and 13% per year, respectively.
Where this stock fails for Canadians is that we would not have made any money on it over the past 5 or 10 years. Total returns would be a negative 7% per year and a negative 5% per year, respectively. The last 5 year period that a Canadian would have made any money on this stock was 2004, where the total return was 5.7% per year. For all 5 year periods since 2004, Canadians would have not made any positive returns.
Americans investing in this stock over the past 5 and 10 years would not have made any money either, but they would have lost less. The 5 and 10 year total return in US$ would be negative 2.5% and a negative 1% per year, respectively.
However, the company itself has not done badly. Revenue has increased over the past 5 and 10 years at the rate of 12% and 13% per share per year, respectively. Cash Flow has increased over the past 5 and 10 years at the rate of 8.6% and 11.5% per year, respectively. Also, Book Value has increased over the past 5 and 10 years at the rate of 9% and 13.5% per year, respectively.
The debt ratios are fine on this stock. The Liquidity Ratio is currently at 1.51 and has a 5 year average of 2.39. The Asset/Liability Ratio is 2.01 with a 5 year average of 2.12. The Leverage Ratio is currently at 1.99 with a 10 year average of 1.72. The Debt/Equity Ratio is currently at 0.99 with a 10 year average of .072.
The last thing to talk about is the Return on Equity. The ROE for the last 12 months is good at 21.3%. The 5 year average is also good at 24.4%.
Tomorrow, I will look at what the analysts say and what my spreadsheet says on this stock.
Medtronic is the world's leading medical technology company, pioneering device-based therapies that restore health, extend life and alleviate pain. Primary products include those for bradycardia pacing, tachyarrhythmia management, atrial fibrillation management, among others. Medtronic operates its business in one reportable segment, that of manufacturing and selling device-based medical therapies. The company does business in more than 120 countries. The company's product lines include cardiac rhythm management, neurological and spinal, vascular and cardiac surgery. Its web site is here Medtronic. See my spreadsheet at mdt.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on twitter.
Friday, March 4, 2011
TECSYS Inc 2
I came across this stock (TSX-TCS) when I was looking for a dividend paying small cap stock as a filler stock. I consider a filler stock to be one to soak up small amounts of investment money that I have. The thing with investing, you can only lose what you have invested. However, your potential gain is unlimited. But, make no mistake about such a stock, as it is risky. I have invested in this stock recently.
When I look at insider trading, I find there is a slight bit of insider buying and no insider selling. The other thing is that more than 60% of this company is owned by insiders. One of the insiders is an investment management firm (Gestion de portefeuille Natcan Inc.) that owns 15.5%. The last thing to mention is that management has just raised the dividend, for the next dividend payment by 20%. My experience has been that when insiders hold a lot of a small company, they try harder, which makes a company a better investment.
I get a 5 year median low Price/Earnings Ratio of 8 and a 5 year median high P/E Ratio of 13. I get a current P/E ratio of 17 and this is a bit high. The reason is that this company’s earnings are expected to drop by about 35% for year ending in April 2011. However, the forward P/E using expected earnings for year ending in April 2012 earnings are expected to climb and this gives a forward P/E of just 8.4.
I get a Graham Price for the years ending in April 2010 of $2.30, April 2011 of $1.84 and April 2012 of $2.60. The one for the financial ending in April 2011 is depressed because earnings are expected to be lower. The current price of $1.90 is 3.3% higher than the current Graham price. However, the current price of $1.90 is lower than the Graham price for the financial year ending in April 2012 by 27%.
When I look at the Price/Book Value Ratio, I get a current one of 1.39 and a 10 year average of 1.47. The current one is 95% lower than the 10 year average. The current dividend yield is 3.2% and the average yield over the past couple of years is 2.7%. The 3.2% dividend yield is the highest dividend yield of this company.
When I look for analysts’ recommendations, I can find only 1 and that recommendation is a Hold. So the consensus recommendation would be a Hold. (See my site for information on analyst ratings.) I do not know the reason for the Hold rating.
Comments I see on this stock says that it has currency headwinds because it is a Canadian company selling into the US. Other comments remark on the good management this company has. The latest financials for the first 3 quarters show declining revenues and earnings. The financial year end in April 2011 is expected show the same. However, things are expected to improve greatly for the financial year ending in April 2012, so I would think if you buy now, you profit from future results.
The analyst’s recommendation may just be a philosophical difference. I have no problem buying a stock now that is currently overpriced by the spreadsheet ratios, if it is not overpriced by future ratios. The problem with waiting for a better relative price is that it may never come. People could recognize the future potential of this company and drive the price up, so that on a relative basis, the stock stays overpriced.
Here is a story on this company.
TECSYS Inc. is a supply chain management software provider that delivers powerful enterprise distribution, warehouse and transportation logistics software solutions. The company's customers include about 600 mid-size and Fortune 1000 corporations in healthcare, heavy equipment, third-party logistics, and general wholesale high- volume distribution industries. Its web site is here TECSYS. See my spreadsheet at tcs.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on twitter.
When I look at insider trading, I find there is a slight bit of insider buying and no insider selling. The other thing is that more than 60% of this company is owned by insiders. One of the insiders is an investment management firm (Gestion de portefeuille Natcan Inc.) that owns 15.5%. The last thing to mention is that management has just raised the dividend, for the next dividend payment by 20%. My experience has been that when insiders hold a lot of a small company, they try harder, which makes a company a better investment.
I get a 5 year median low Price/Earnings Ratio of 8 and a 5 year median high P/E Ratio of 13. I get a current P/E ratio of 17 and this is a bit high. The reason is that this company’s earnings are expected to drop by about 35% for year ending in April 2011. However, the forward P/E using expected earnings for year ending in April 2012 earnings are expected to climb and this gives a forward P/E of just 8.4.
I get a Graham Price for the years ending in April 2010 of $2.30, April 2011 of $1.84 and April 2012 of $2.60. The one for the financial ending in April 2011 is depressed because earnings are expected to be lower. The current price of $1.90 is 3.3% higher than the current Graham price. However, the current price of $1.90 is lower than the Graham price for the financial year ending in April 2012 by 27%.
When I look at the Price/Book Value Ratio, I get a current one of 1.39 and a 10 year average of 1.47. The current one is 95% lower than the 10 year average. The current dividend yield is 3.2% and the average yield over the past couple of years is 2.7%. The 3.2% dividend yield is the highest dividend yield of this company.
When I look for analysts’ recommendations, I can find only 1 and that recommendation is a Hold. So the consensus recommendation would be a Hold. (See my site for information on analyst ratings.) I do not know the reason for the Hold rating.
Comments I see on this stock says that it has currency headwinds because it is a Canadian company selling into the US. Other comments remark on the good management this company has. The latest financials for the first 3 quarters show declining revenues and earnings. The financial year end in April 2011 is expected show the same. However, things are expected to improve greatly for the financial year ending in April 2012, so I would think if you buy now, you profit from future results.
The analyst’s recommendation may just be a philosophical difference. I have no problem buying a stock now that is currently overpriced by the spreadsheet ratios, if it is not overpriced by future ratios. The problem with waiting for a better relative price is that it may never come. People could recognize the future potential of this company and drive the price up, so that on a relative basis, the stock stays overpriced.
Here is a story on this company.
TECSYS Inc. is a supply chain management software provider that delivers powerful enterprise distribution, warehouse and transportation logistics software solutions. The company's customers include about 600 mid-size and Fortune 1000 corporations in healthcare, heavy equipment, third-party logistics, and general wholesale high- volume distribution industries. Its web site is here TECSYS. See my spreadsheet at tcs.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on twitter.
Thursday, March 3, 2011
TECSYS Inc
I came across this stock (TSX-TCS) when I was looking for a dividend paying small cap stock as a filler stock. I consider a filler stock to be one to soak up small amounts of investment money that I have. The thing with investing, you can only lose what you have invested. However, your potential gain is unlimited. But, make no mistake about such a stock, as it is risky. I have invested in this stock recently.
The current dividend yield at 3.2% is good rate, but considerable lower than the last small cap dividend paying tech stock that I had. They have had two dividend rises since starting dividends in dividends in 2008. They first raised the dividend 25% and the recent rise for the next dividend payment is 20%.
So the dividend growth potential is very good on this stock. If the dividend increases say at 20%, then you could be earning 7.9% in 5 years time or 20% in 10 years time on an investment in this stock today. However, be aware that this stock is thinly traded and this also adds to its risk.
This stock was part of the tech stock boom in and hit a high price of $40.50 in March 2000. This fact will affect the 10 year value for this company and the fact that they had many years with no earnings. The total return on this company is negative for the past 10 years. However, the total return over the last 5 years has been positive, but low at 5.4% per year.
As far as growth goes, the 5 and 10 year growth in revenue per share is 11.9% and 3.9% per year, respectively. Because this company had a lot of years of negative earnings, I only have earnings growth for the past 5 years and it is very good at 33.5% per year.
Growth in cash flow has the same problem, with lots of years of negative cash flow, so I only have growth for 5 years. The growth in cash flow is 27% per year. The growth in cash flow excluding working capital is much lower at only 4.5% per year. When I look at growth in book value, the 5 year growth is low, but ok at 6.3% per year. The 10 year growth is negative because this company had many negative earnings years in the past.
The next thing to look at is the debt ratios. The Liquidity Ratio is a little low at a current rate of 1.22. The 5 year average is better at 1.49. The Asset/Liability Ratio is much better at a current ratio of 2.12 and a 5 year average of 2.29. The Leverage Ratio is ok at 1.89 with a better ratio average ratio over the past 10 years of 1.65. The Debt/Equity Ratio at 0.89 is a little high for this sort of company. I would prefer it to be closer to 0.50. The 10 year average at 0.65 is better.
The last thing to look at is the Return on Equity. The ROE for the financial year ending in April 2010 is good at 12.9%. The one for the 12 months financial period ending on the third quarter at October 31, 2010 is also fine at 9.3%. The 5 year average is lower at 8.5% because of past negative earning years.
It will be interesting to watch and see how this company does in the future.
TECSYS Inc. is a supply chain management software provider that delivers powerful enterprise distribution, warehouse and transportation logistics software solutions. The company's customers include about 600 mid-size and Fortune 1000 corporations in healthcare, heavy equipment, third-party logistics, and general wholesale high- volume distribution industries. Its web site is here TECSYS. See my spreadsheet at tcs.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on twitter.
The current dividend yield at 3.2% is good rate, but considerable lower than the last small cap dividend paying tech stock that I had. They have had two dividend rises since starting dividends in dividends in 2008. They first raised the dividend 25% and the recent rise for the next dividend payment is 20%.
So the dividend growth potential is very good on this stock. If the dividend increases say at 20%, then you could be earning 7.9% in 5 years time or 20% in 10 years time on an investment in this stock today. However, be aware that this stock is thinly traded and this also adds to its risk.
This stock was part of the tech stock boom in and hit a high price of $40.50 in March 2000. This fact will affect the 10 year value for this company and the fact that they had many years with no earnings. The total return on this company is negative for the past 10 years. However, the total return over the last 5 years has been positive, but low at 5.4% per year.
As far as growth goes, the 5 and 10 year growth in revenue per share is 11.9% and 3.9% per year, respectively. Because this company had a lot of years of negative earnings, I only have earnings growth for the past 5 years and it is very good at 33.5% per year.
Growth in cash flow has the same problem, with lots of years of negative cash flow, so I only have growth for 5 years. The growth in cash flow is 27% per year. The growth in cash flow excluding working capital is much lower at only 4.5% per year. When I look at growth in book value, the 5 year growth is low, but ok at 6.3% per year. The 10 year growth is negative because this company had many negative earnings years in the past.
The next thing to look at is the debt ratios. The Liquidity Ratio is a little low at a current rate of 1.22. The 5 year average is better at 1.49. The Asset/Liability Ratio is much better at a current ratio of 2.12 and a 5 year average of 2.29. The Leverage Ratio is ok at 1.89 with a better ratio average ratio over the past 10 years of 1.65. The Debt/Equity Ratio at 0.89 is a little high for this sort of company. I would prefer it to be closer to 0.50. The 10 year average at 0.65 is better.
The last thing to look at is the Return on Equity. The ROE for the financial year ending in April 2010 is good at 12.9%. The one for the 12 months financial period ending on the third quarter at October 31, 2010 is also fine at 9.3%. The 5 year average is lower at 8.5% because of past negative earning years.
It will be interesting to watch and see how this company does in the future.
TECSYS Inc. is a supply chain management software provider that delivers powerful enterprise distribution, warehouse and transportation logistics software solutions. The company's customers include about 600 mid-size and Fortune 1000 corporations in healthcare, heavy equipment, third-party logistics, and general wholesale high- volume distribution industries. Its web site is here TECSYS. See my spreadsheet at tcs.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on twitter.
Wednesday, March 2, 2011
Johnson and Johnson 2
This company (NYSE-JNJ) has reported for the financial year ending in 2010. I follow a couple of US companies although I am not invested in US stocks. We are always told we should invest outside our market, so I want to see how I would have done if I had invested in some the big, recommended US dividend paying stock.
When I look at insider trading, I find there was a lot more insider selling than insider buying. Most of the selling was in the later part of 2010. A positive is that the company raised the dividend by 10.2% in 2010. This increase is in line with the 5 year average increase of 10.6%.
This company has a 5 year median low Price/Earnings Ratio of 12.1 and a 5 year median high P/E Ratio of 15.7. The current P/E Ratio of 12.6 is toward the low end for this ratio. I get a Graham Price of $47.36 for 2011. The current stock price of $61.01 is almost 30% above the Graham Price. However, the 10 year low average difference between the Graham Price and stock price is 74%. So, on a relative basis, the stock price is low.
The 10 year average Price/Book Value Ratio for this stock is 5.06. The current Ratio at 2.96 is only 60% of the 10 year average. In this case, the stock price is relatively low again. The current yield is 3.5% and the 5 year average is 2.9%. On this basis also, the stock is relatively low. The yield of 3.5% is a good yield.
When I look at analysts recommendations, I find Strong Buy, Buy and Hold recommendations. There are an awful lot of Hold recommendations, but the Strong Buy recommendations move the consensus to a Buy recommendation. (See my site for information on analyst ratings.)
Some analysts see 2011 as a recovery year for Johnson and Johnson and so are recommending it as a Buy. Those recommending this stock as a Buy see the 12 month stock price reaching $73 and those recommending a Hold see the 12 month stock price reaching only $65. I have also noted that some Canadians are saying now is the time to buy US stocks because our currency is high. Most of the reason we have not made much in US stocks lately has to do with the rising Canadian dollar.
Story in Forbes says that Johnson & Johnson Shares Fall after Posting Nearly Flat Q4 Results for 2010.
Johnson & Johnson is engaged in the manufacture and sale of a broad range of products in the health care field in many countries of the world. The company's worldwide business is divided into three segments: Consumer; Pharmaceutical; and Professional. Its web site is here JNJ. See my spreadsheet at jnj.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on twitter.
When I look at insider trading, I find there was a lot more insider selling than insider buying. Most of the selling was in the later part of 2010. A positive is that the company raised the dividend by 10.2% in 2010. This increase is in line with the 5 year average increase of 10.6%.
This company has a 5 year median low Price/Earnings Ratio of 12.1 and a 5 year median high P/E Ratio of 15.7. The current P/E Ratio of 12.6 is toward the low end for this ratio. I get a Graham Price of $47.36 for 2011. The current stock price of $61.01 is almost 30% above the Graham Price. However, the 10 year low average difference between the Graham Price and stock price is 74%. So, on a relative basis, the stock price is low.
The 10 year average Price/Book Value Ratio for this stock is 5.06. The current Ratio at 2.96 is only 60% of the 10 year average. In this case, the stock price is relatively low again. The current yield is 3.5% and the 5 year average is 2.9%. On this basis also, the stock is relatively low. The yield of 3.5% is a good yield.
When I look at analysts recommendations, I find Strong Buy, Buy and Hold recommendations. There are an awful lot of Hold recommendations, but the Strong Buy recommendations move the consensus to a Buy recommendation. (See my site for information on analyst ratings.)
Some analysts see 2011 as a recovery year for Johnson and Johnson and so are recommending it as a Buy. Those recommending this stock as a Buy see the 12 month stock price reaching $73 and those recommending a Hold see the 12 month stock price reaching only $65. I have also noted that some Canadians are saying now is the time to buy US stocks because our currency is high. Most of the reason we have not made much in US stocks lately has to do with the rising Canadian dollar.
Story in Forbes says that Johnson & Johnson Shares Fall after Posting Nearly Flat Q4 Results for 2010.
Johnson & Johnson is engaged in the manufacture and sale of a broad range of products in the health care field in many countries of the world. The company's worldwide business is divided into three segments: Consumer; Pharmaceutical; and Professional. Its web site is here JNJ. See my spreadsheet at jnj.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on twitter.
Tuesday, March 1, 2011
Johnson and Johnson
This company (NYSE-JNJ) has reported on some things for the financial year ending in 2010, but I cannot find a complete set of financial statements at their site. I have picked up figures from a few other sites that I believe to be reliable. I follow a couple of US companies although I am not invested in US stocks. We are always told we should invest outside our market, so I want to see how I would have done if I had invested in some the big, recommended US dividend paying stock.
Would I have made any money over the past 5 or 10 years in this stock? The very short answer is no. The total return over the past 5 and 10 years for a Canadian would be .5% per year and -.3% per year, respectively. I also looked at the 5 year periods that end over the last 9 years, and the story does not get hopeful. It is only the 5 year period ending in December 2002 that there is any sort of good return and that is a total return of 14.5% per year.
The next best year is the 5 year period ending in December 2008 and that period had a return of 4.7% per year. The next best year is the 5 year period ending in December 2004 and that period had a return of 3.8% per year. All the other years were negative or close to 0%. I cannot image that this company would have been a good investment for a Canadian since 2008.
It would also seem that American investors did not do a lot better. I get their 5 and 10 year total return at 4% per year and 3.5% per year respectively. On this spreadsheet, I only calculate return (capital gain), total return (capital gain and dividends) and dividend growth in CDN$. When it comes to dividend growth, although the Americans have done better, we have also done quite well. The 5 and 10 year growth in dividends in US$ is 10.6% per year and 13% per year respectively. The 5 and 10 year growth in dividends in CDN$ is 7.3% per year and 8.3% per year respectively.
In US$ terms, the growth figures for this company are good, expect for growth in Revenue. The 5 and 10 year growth in revenue is 4% and 7.8% per year, respectively. The growth in revenue per share comes in slightly better at 6.7% and 8% per year, respectively. The growth in cash flow is around 9% per year and this is good. The growth in book value is at the rate of around 11% per year and this is also good.
All the debt ratios on this stock are quite good. The Liquidity Ratio is currently 2.05 and has a 5 year average of 1.73. The Asset/Liability Ratio is currently at 2.22 with a 5 year average of 2.29. For these ratios, anything above 1.50 is good. The Leverage Ratio is 1.82 with a 10 year average of 1.77 and the Debt/Equity Ratio is at 0.82 with a 10 year average of 0.77. With these two last ratios, lower is better. Also, they are ratios that you want to compare to other companies in the same industry rather across industries.
The last thing to talk about is the Return on Equity. The ROE at the end of December 2010 is 23.6% and the 5 year average is 25.9%. These both are very good.
Tomorrow, I will look at what the analysts say and what my spreadsheet says on this stock.
Johnson & Johnson is engaged in the manufacture and sale of a broad range of products in the health care field in many countries of the world. The company's worldwide business is divided into three segments: Consumer; Pharmaceutical; and Professional. Its web site is here JNJ. See my spreadsheet at jnj.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on twitter.
Would I have made any money over the past 5 or 10 years in this stock? The very short answer is no. The total return over the past 5 and 10 years for a Canadian would be .5% per year and -.3% per year, respectively. I also looked at the 5 year periods that end over the last 9 years, and the story does not get hopeful. It is only the 5 year period ending in December 2002 that there is any sort of good return and that is a total return of 14.5% per year.
The next best year is the 5 year period ending in December 2008 and that period had a return of 4.7% per year. The next best year is the 5 year period ending in December 2004 and that period had a return of 3.8% per year. All the other years were negative or close to 0%. I cannot image that this company would have been a good investment for a Canadian since 2008.
It would also seem that American investors did not do a lot better. I get their 5 and 10 year total return at 4% per year and 3.5% per year respectively. On this spreadsheet, I only calculate return (capital gain), total return (capital gain and dividends) and dividend growth in CDN$. When it comes to dividend growth, although the Americans have done better, we have also done quite well. The 5 and 10 year growth in dividends in US$ is 10.6% per year and 13% per year respectively. The 5 and 10 year growth in dividends in CDN$ is 7.3% per year and 8.3% per year respectively.
In US$ terms, the growth figures for this company are good, expect for growth in Revenue. The 5 and 10 year growth in revenue is 4% and 7.8% per year, respectively. The growth in revenue per share comes in slightly better at 6.7% and 8% per year, respectively. The growth in cash flow is around 9% per year and this is good. The growth in book value is at the rate of around 11% per year and this is also good.
All the debt ratios on this stock are quite good. The Liquidity Ratio is currently 2.05 and has a 5 year average of 1.73. The Asset/Liability Ratio is currently at 2.22 with a 5 year average of 2.29. For these ratios, anything above 1.50 is good. The Leverage Ratio is 1.82 with a 10 year average of 1.77 and the Debt/Equity Ratio is at 0.82 with a 10 year average of 0.77. With these two last ratios, lower is better. Also, they are ratios that you want to compare to other companies in the same industry rather across industries.
The last thing to talk about is the Return on Equity. The ROE at the end of December 2010 is 23.6% and the 5 year average is 25.9%. These both are very good.
Tomorrow, I will look at what the analysts say and what my spreadsheet says on this stock.
Johnson & Johnson is engaged in the manufacture and sale of a broad range of products in the health care field in many countries of the world. The company's worldwide business is divided into three segments: Consumer; Pharmaceutical; and Professional. Its web site is here JNJ. See my spreadsheet at jnj.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on twitter.
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