I want to talk about the Real Estate stocks I track. For all the stock I follow, I have shown the link to my blog entries. I know that I said I would not do this sort of entry again, but some people do like them.
The first blog entry should help you answer the questions of whether or not you might like to invest in the stock.
The 2nd blog entry deals with its current price, but you can compare the past median values to current ones to see if you would want to invest in it today. For example, you can compare current P/E Ratios from financial sites to the median P/E Ratios given in my blog. The G&M and Reuter can both give you current ratios. For Reuter, use TO after the stock symbol to find stock listings for Canadian companies. For Brookfield Asset Mgt the symbol would be “BAMa.TO”.
For a dividend paying stock portfolio, you might want to buy Real Estate stocks after you buy safer Utilities and financial stocks and then after less safer Consumer and Industrial stocks. See my site for information on setting up a portfolio.
The Real Estate stocks that I follow are:
Brookfield Asset Mgt BAM.A
Brookfield Properties Corp BPO
Calloway Real Estate Inv Trust CWT.UN
Canadian Real Estate REF.UN
FirstService Corp FSV and FirstService Corp 7% PF FSV.PR.U
H & R Real Estate Inv Trust HR.UN
Melcor Dev MRD
MI Developments MIM.A
RIOCAN REIT REI.UN
Brookfield Asset Mgt. (TSX-BAM.A). The 5 year median dividend yield is low at 1.89% and the DPRs are correspondingly low. The 5 year growth in dividend is just 11.2%. Dividends are inconsistent for Canadian investors as they are paid in US$. Also, this company has not raised their dividends since 2009. For my blog entries dated August 2011, click here or here.
Brookfield Properties Corp. (TSX-BPO). The 5 year median dividend yield is 3.57% and the DPRs are at a manageable level. The 5 year growth in dividend is just 2.3% which would be about or just north of inflation rate. Dividends are inconsistent for Canadian investors as they are paid in US$. Also, this company has not raised their dividends since 2008. For my blog entries dated August 2011, click here or here.
Calloway Real Estate Investment Trust. (TSX-CWT.UN). The 5 year median dividend yield is 6.96% and the DPRs are much too high, but are coming down. This investment Trust is payout some 93% of distributable income in distributions. The 5 year growth in dividend is just 2.47% which would be just north of inflation rate. This company has not raised their dividends since 2008. For my blog entries dated December 2011, click here or here.
Canadian Real Estate. (TSX-REF.UN). The 5 year median dividend yield is 4.96% and the DPRs are a bit high but fine. This investment Trust is paying out some 61% of distributable income in distributions. The 5 year growth in dividend is just 1.9% which would be just at or slightly below the inflation rate. They have been increasing their dividends to just over 2% over the past 2 years. I own units in this REIT. For my blog entries dated March 2011, click here or here.
First Service Corp. (TSX-FSV). This stock does not pay a dividend, but the company did issue Preferred Shares to stockholders in 2008. Because Preferred Shares were issued, there would not be dividend increases. Also, dividends were paid in US$, so would fluctuate for CDN shareholders. Total growth over past 5 years was 7%, including Preferred Shares. For my blog entries dated December 2011, click here or here.
H & R Real Estate Investment Trust (TSX-HR.UN). The 5 year median dividend yield is 6% and the DPRs were high but are coming down. They decreased their dividends by 50% in 2009. This investment Trust is paying out some 65% of distributable income in distributions currently and has a dividend yield of 4.27%. They have been increasing their dividends lately, but they are not yet back to 2008 level. For my blog entries dated December 2011, click here or here.
Melcor Development (TSX-MRD). This stock has a 5 year median Dividend yield of 2.78% and they paid out a low portion in DPRs. I have owned this stock since 2008 and I have made a total return of 7.8% per year. For my blog entries dated April 2011, click here or here.
MI Developments (TSX-MIM.A). I used to own this stock. I bought it in 2004 and 2006 and sold it in 2009. My total return was a negative 22% per year. This was a Frank Stronach company. Their DPRs were rather high, as the company was not making any money, but yield was generally around only 1.5%. For my blog entries dated February 2011, click here or here.
RIOCAN REIT (TSX-REI.UN). I own this REIT. I bought it originally in 1998 and then some more in 2000 and 2006. My total return was 16.9% per year. Their 5 year median dividend yield is 6.3%. Their DPRs were rather high, and the Payout from Distributable Income is at 90%. They have been increasing the distributions in line with inflation. For my blog entries dated March 2011, click here or here.
Today, My Own Advisor has a blog on Top Canadian REITs Tomorrow, I will start review the banks I follow.
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, December 14, 2011
Tuesday, December 13, 2011
FirstService Corp 2
I do not own this stock (TSX-FSV), but I used to. I bought this in June 2002 and sold April 2010. I made a return of 3.17% per year (including preferred shares). Rather than pay a dividend, this company issued preferred shares to current shareholders. This rather complicates trying to value this company.
When I look at Insider Trading, I find some $5.6M of insider selling and minimal insider buying. The net insider selling is $4.9M. It seems to be mostly that CFO and officers are not keeping their stock options. The number of shares outstanding when down slightly. The company has repurchased shares. It seems to me that they repurchased slightly more than they issued in stock options.
Some 90 institutions own 81.3% of the outstanding shares. Over the past 3 months they both purchased and sold shares of this company. Over this period they have increased their shares by 9.7%.
To get a handle on historical Price/Earnings ratios is not straight forward. This is because the company issues not only EPS but Adjusted EPS. Analysts seem to value the Adjusted EPS and the estimates appear to be based on Adjusted EPS. In relation to Adjusted EPS, the 10 year median P/E ratios go from a high of 26 to a low of 14.8. If we go with Adjusted EPS estimates, the current P/E is 14.1, which would be a relatively low P/E Ratio.
When looking at P/E Ratios, I also follow the trailing P/E Ratios. For 2011, the trailing P/E ratio is 16.6. This is not a very high P/E ratio either.
Based on the Adjusted EPS, I get a current Graham Price of $15.64. This is some 63.6% above the current stock price of $25.58. This is about the median difference between the Graham Price and the stock price. So the stock price would be reasonable by this measure.
I get a 10 year median Price/Book Value Ratio of 3.11 and a current one of 4.26. The current on is some 37% above the 10 year median. The main reason is the lack of growth in book value. However, by this measure, the current stock price is high.
When I look at analysts’ recommendations, I get Strong Buy, Buy and Hold recommendations. The consensus recommendation would be a Buy. One Hold recommendation comes with a stock price of $29.00, which is some 13.4% higher than the current stock price. A couple of analysts with Strong Buy recommendations said that the company is undervalued. However, they feel that this is a long term buy (to hold for at least 3 to 5 years.) For a report on this company by Raymond James see Canada Research.
This company is a global diversified leader in the rapidly growing real estate services sector, providing services in the following three areas: commercial real estate, residential property management, and property services. This is an international company, having business in North and South America, Europe, Asia, Australia and New Zealand. Controlling shareholder is Jay Hennick. He has 9% holding, but has 52.5% voting control. Its web site is here First Service Corp. See my spreadsheet at fsv.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 some $5.6M of insider selling and minimal insider buying. The net insider selling is $4.9M. It seems to be mostly that CFO and officers are not keeping their stock options. The number of shares outstanding when down slightly. The company has repurchased shares. It seems to me that they repurchased slightly more than they issued in stock options.
Some 90 institutions own 81.3% of the outstanding shares. Over the past 3 months they both purchased and sold shares of this company. Over this period they have increased their shares by 9.7%.
To get a handle on historical Price/Earnings ratios is not straight forward. This is because the company issues not only EPS but Adjusted EPS. Analysts seem to value the Adjusted EPS and the estimates appear to be based on Adjusted EPS. In relation to Adjusted EPS, the 10 year median P/E ratios go from a high of 26 to a low of 14.8. If we go with Adjusted EPS estimates, the current P/E is 14.1, which would be a relatively low P/E Ratio.
When looking at P/E Ratios, I also follow the trailing P/E Ratios. For 2011, the trailing P/E ratio is 16.6. This is not a very high P/E ratio either.
Based on the Adjusted EPS, I get a current Graham Price of $15.64. This is some 63.6% above the current stock price of $25.58. This is about the median difference between the Graham Price and the stock price. So the stock price would be reasonable by this measure.
I get a 10 year median Price/Book Value Ratio of 3.11 and a current one of 4.26. The current on is some 37% above the 10 year median. The main reason is the lack of growth in book value. However, by this measure, the current stock price is high.
When I look at analysts’ recommendations, I get Strong Buy, Buy and Hold recommendations. The consensus recommendation would be a Buy. One Hold recommendation comes with a stock price of $29.00, which is some 13.4% higher than the current stock price. A couple of analysts with Strong Buy recommendations said that the company is undervalued. However, they feel that this is a long term buy (to hold for at least 3 to 5 years.) For a report on this company by Raymond James see Canada Research.
This company is a global diversified leader in the rapidly growing real estate services sector, providing services in the following three areas: commercial real estate, residential property management, and property services. This is an international company, having business in North and South America, Europe, Asia, Australia and New Zealand. Controlling shareholder is Jay Hennick. He has 9% holding, but has 52.5% voting control. Its web site is here First Service Corp. See my spreadsheet at fsv.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on twitter.
Monday, December 12, 2011
FirstService Corp
I do not own this stock (TSX-FSV), but I used to. I bought this in June 2002 and sold April 2010. Rather than pay a dividend, this company issued preferred shares to current shareholders. This rather complicates trying to value this company.
However, it never performed as I had expected. I bought it for capital gain and the stock did not perform. I know it got hit by the 2008 bear market, but I did not see it doing very well any time soon, so I sold. Shortly after selling the FSV shares, I also sold the preferred shares. Preferred shares are not generally the time of shares I like to hold.
Having dividends come from the preferred shares basically meant that the dividends would not rise. However, since the dividends were paid in US$, they did fluctuate for Canadian shareowners. The average dividend yield from the preferred shares for the FSV shares was around 3.4%. This is not a bad yield, but, as I said it would not increase.
As far as stock return goes, looking just at the stock price of FSV shares, they are up around 9% per year over the past 10 years. However, over the past 5 years they are down around 1.1% per year. It is much better looking at the total package, including the preferred shares distributed. Then the total return would be around 13.9%per year over the past 10 years and 7% per year over the past 5 years. Included in this total return would be dividends worth just over 1% per year over the past 10 years and 1.8% per year over the past 5 years.
This stock’s financials use US GAAP rules and the financials are given in US$. So, as for a lot of stocks reporting in US$, the growth looks much better in US$ terms than in CDN$ terms. In the area of revenue, the growth has been good. The 5 and 10 year growth in revenue per shares is 9.5% and 10.8% per year, respectively.
In other areas growth has not been so good. If you look at real Earnings per Share they are down substantially per share at 46% and 16% per year lower, respectively. However, the company and some analysts are using an Adjusted EPS value and by this measure, earnings are up.
When looking at cash flow from operations, using the net of non-cash items, the CF has only grown at 2.5% and 6% per year over the past 5 and 10 years. A lot of analysts like to exclude changes in current assets and liabilities in calculating Cash Flow from operations, no matter what the company does in their annual reports.
Otherwise, Cash Flow from operations may not properly reflect how a company is doing. The investor’s friend site gives a good overview of this subject
When looking at Book Value, you really have to look at Total Equity (that is included Preferred Shares) for this stock as the Preferred Shares were given out free to shareholders. Over the past 10 years, Book Value is up 3.6% per year. However, over the past 5 years, Book Value is down some 6.6% per year. Book Value also took a hit and is down some 9% at the end of the last quarter of September 30, 2011.
The Return on Equity is generally fine as it has a 5 year median of 13.2%. However, it was a bit low at the end of the financial year of 2010 at just 6.3%.
The Liquidity Ratio is just ok at 1.02 at the end of 2010. The current one is lower at 0.75 because of some long term debt being included. There is not much in the way of notes for the latest financials as they are just published in a release with no substantial notes. However, I have no reason to believe that FSV cannot handle their long term debt. The Asset/Liability Ratios is of for the end of the financial year of 2010 at 1.49, but the latest one is rather low at 1.26.
As far as the last two debt ratios of Leverage Ratio and Debt/Equity Ratio goes they were fine until the financial year ending in December 2008 and then they started to rise. The ones for the end of 2010 were 5.67 and 3.79. The current ones are 6.50 and 5.17. These ratios vary by industry, but seem quite high to me for this company.
I am not sorry to have sold this stock. I got a reasonable price for it and even if I still had it, it would not be worth much more than I sold it for. Tomorrow, I will talk about what my spreadsheet says about the current stock price and what analysts say about this stock.
This company is a global diversified leader in the rapidly growing real estate services sector, providing services in the following three areas: commercial real estate, residential property management, and property services. This is an international company, having business in North and South America, Europe, Asia, Australia and New Zealand. Controlling shareholder is Jay Hennick. He has 9% holding, but has 52.5% voting control. Its web site is here First Service Corp. See my spreadsheet at fsv.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.
However, it never performed as I had expected. I bought it for capital gain and the stock did not perform. I know it got hit by the 2008 bear market, but I did not see it doing very well any time soon, so I sold. Shortly after selling the FSV shares, I also sold the preferred shares. Preferred shares are not generally the time of shares I like to hold.
Having dividends come from the preferred shares basically meant that the dividends would not rise. However, since the dividends were paid in US$, they did fluctuate for Canadian shareowners. The average dividend yield from the preferred shares for the FSV shares was around 3.4%. This is not a bad yield, but, as I said it would not increase.
As far as stock return goes, looking just at the stock price of FSV shares, they are up around 9% per year over the past 10 years. However, over the past 5 years they are down around 1.1% per year. It is much better looking at the total package, including the preferred shares distributed. Then the total return would be around 13.9%per year over the past 10 years and 7% per year over the past 5 years. Included in this total return would be dividends worth just over 1% per year over the past 10 years and 1.8% per year over the past 5 years.
This stock’s financials use US GAAP rules and the financials are given in US$. So, as for a lot of stocks reporting in US$, the growth looks much better in US$ terms than in CDN$ terms. In the area of revenue, the growth has been good. The 5 and 10 year growth in revenue per shares is 9.5% and 10.8% per year, respectively.
In other areas growth has not been so good. If you look at real Earnings per Share they are down substantially per share at 46% and 16% per year lower, respectively. However, the company and some analysts are using an Adjusted EPS value and by this measure, earnings are up.
When looking at cash flow from operations, using the net of non-cash items, the CF has only grown at 2.5% and 6% per year over the past 5 and 10 years. A lot of analysts like to exclude changes in current assets and liabilities in calculating Cash Flow from operations, no matter what the company does in their annual reports.
Otherwise, Cash Flow from operations may not properly reflect how a company is doing. The investor’s friend site gives a good overview of this subject
When looking at Book Value, you really have to look at Total Equity (that is included Preferred Shares) for this stock as the Preferred Shares were given out free to shareholders. Over the past 10 years, Book Value is up 3.6% per year. However, over the past 5 years, Book Value is down some 6.6% per year. Book Value also took a hit and is down some 9% at the end of the last quarter of September 30, 2011.
The Return on Equity is generally fine as it has a 5 year median of 13.2%. However, it was a bit low at the end of the financial year of 2010 at just 6.3%.
The Liquidity Ratio is just ok at 1.02 at the end of 2010. The current one is lower at 0.75 because of some long term debt being included. There is not much in the way of notes for the latest financials as they are just published in a release with no substantial notes. However, I have no reason to believe that FSV cannot handle their long term debt. The Asset/Liability Ratios is of for the end of the financial year of 2010 at 1.49, but the latest one is rather low at 1.26.
As far as the last two debt ratios of Leverage Ratio and Debt/Equity Ratio goes they were fine until the financial year ending in December 2008 and then they started to rise. The ones for the end of 2010 were 5.67 and 3.79. The current ones are 6.50 and 5.17. These ratios vary by industry, but seem quite high to me for this company.
I am not sorry to have sold this stock. I got a reasonable price for it and even if I still had it, it would not be worth much more than I sold it for. Tomorrow, I will talk about what my spreadsheet says about the current stock price and what analysts say about this stock.
This company is a global diversified leader in the rapidly growing real estate services sector, providing services in the following three areas: commercial real estate, residential property management, and property services. This is an international company, having business in North and South America, Europe, Asia, Australia and New Zealand. Controlling shareholder is Jay Hennick. He has 9% holding, but has 52.5% voting control. Its web site is here First Service Corp. See my spreadsheet at fsv.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, December 9, 2011
H & R Real Estate Trust 2
I do not own this stock (TSX-HR.UN). This company has also had problems with distributions recently. They cut their distributions by 50% in 2009. However, they have been raising the distributions recently.
When I look at Insider Trading, I find $5M of insider selling and $2.8M of insider buying. Insider selling is split between CFO, Officers and Directors. Insider Buying is mostly by Directors, but also some by the CEO. The CEO own shares worth around $71M. One Director has shares worth $28M. The CEO and officers have more stock options than shares. The opposite is true of CEO and Directors.
Some 44% of this stock is owned by 101 institutions. They have both bought and sold this stock over the past 3 months. Over this period they have increased their shares by just over 3%.
I will use the current Price/Adjusted Funds from Operations Ratio to look at a stock price ratio. This is because the Earnings per Share are expected to be very low in 2011 and the EPS has bounced around a lot lately. The current Price/AFFO is 15.33. The 5 year median high and low P/AFFO Ratios are 16.99 and 12.12, respectively. This would place the current P/AFFO Ratio above a median 5 year P/AFFO Ratio and just below the 5 year high P/AFFO Ratio.
The Graham Price is affect by the current estimate EPS and therefore is quite low. If we use last year’s Graham Price of $17.16, the current stock price of $23.15 is some 35% higher. The high 10 year median difference between the Graham Price and Stock Price is the Stock Price being 28% higher. So by this measure, the stock price is high.
The 10 year median Price/Book Value Ratio is 1.57. The current P/B Ratio is 1.71 and 9% higher than the median P/B Ratio. This would also suggest a relatively high current stock price.
The current dividend yield is 4.5% and the 5 year median dividend yield is 6%. This also shows a relatively high stock price. It is only in 2009 and 2010 that the dividend yield approached anywhere close to such a low one. The lowest point in dividend yield in 2009 was 4.5% and in 2010 was 3.8%. This certainly points to a relatively high stock price.
When I look at analysts’ recommendations I find Strong Buy, Buy and Hold. The consensus recommendation would be a Buy. I found a Buy recommendation with a 12 month stock price of $27. As I mentioned yesterday, some analysts are clearly worried about the Bow building in Calgary. However, a lot of analysts are not.
A number expect that distribution increases will continue. The price seems relatively high, but it was higher in 2006 and 2007. Another Buy recommendation came with a 12 months stock price of $24.60. That would also be a good return with a 6% gain in stock price and a 4.5% dividend yield, you are looking at around 10% return.
One of the features of REITs is the generally high Payout Ratios. High Payout Ratios are not bad per se. However, you want to have some assurance they are sustainable if you want to invest in a company with high Payout Ratios. The other thing is growth. If you have high Payout Ratios it is probably impossible to fund growth internally. The other options are debt and issuing new shares. You can only take on so much debt. As far as I can see, both this company and Calloway have been funding growth with new shares.
They have a portfolio of office properties, single-tenant industrial properties, retail properties and development projects. They operate across Canada and US. Its web site is here H&R. See my spreadsheet at hr.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 $5M of insider selling and $2.8M of insider buying. Insider selling is split between CFO, Officers and Directors. Insider Buying is mostly by Directors, but also some by the CEO. The CEO own shares worth around $71M. One Director has shares worth $28M. The CEO and officers have more stock options than shares. The opposite is true of CEO and Directors.
Some 44% of this stock is owned by 101 institutions. They have both bought and sold this stock over the past 3 months. Over this period they have increased their shares by just over 3%.
I will use the current Price/Adjusted Funds from Operations Ratio to look at a stock price ratio. This is because the Earnings per Share are expected to be very low in 2011 and the EPS has bounced around a lot lately. The current Price/AFFO is 15.33. The 5 year median high and low P/AFFO Ratios are 16.99 and 12.12, respectively. This would place the current P/AFFO Ratio above a median 5 year P/AFFO Ratio and just below the 5 year high P/AFFO Ratio.
The Graham Price is affect by the current estimate EPS and therefore is quite low. If we use last year’s Graham Price of $17.16, the current stock price of $23.15 is some 35% higher. The high 10 year median difference between the Graham Price and Stock Price is the Stock Price being 28% higher. So by this measure, the stock price is high.
The 10 year median Price/Book Value Ratio is 1.57. The current P/B Ratio is 1.71 and 9% higher than the median P/B Ratio. This would also suggest a relatively high current stock price.
The current dividend yield is 4.5% and the 5 year median dividend yield is 6%. This also shows a relatively high stock price. It is only in 2009 and 2010 that the dividend yield approached anywhere close to such a low one. The lowest point in dividend yield in 2009 was 4.5% and in 2010 was 3.8%. This certainly points to a relatively high stock price.
When I look at analysts’ recommendations I find Strong Buy, Buy and Hold. The consensus recommendation would be a Buy. I found a Buy recommendation with a 12 month stock price of $27. As I mentioned yesterday, some analysts are clearly worried about the Bow building in Calgary. However, a lot of analysts are not.
A number expect that distribution increases will continue. The price seems relatively high, but it was higher in 2006 and 2007. Another Buy recommendation came with a 12 months stock price of $24.60. That would also be a good return with a 6% gain in stock price and a 4.5% dividend yield, you are looking at around 10% return.
One of the features of REITs is the generally high Payout Ratios. High Payout Ratios are not bad per se. However, you want to have some assurance they are sustainable if you want to invest in a company with high Payout Ratios. The other thing is growth. If you have high Payout Ratios it is probably impossible to fund growth internally. The other options are debt and issuing new shares. You can only take on so much debt. As far as I can see, both this company and Calloway have been funding growth with new shares.
They have a portfolio of office properties, single-tenant industrial properties, retail properties and development projects. They operate across Canada and US. Its web site is here H&R. See my spreadsheet at hr.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, December 8, 2011
H & R Real Estate Trust
First, I would like to point out that My Own Advisor Blogger is giving away a book called Millionaire Teacher for free. This is his 3rd blog on this subject. See his blog called My Favourite Takeaways – Millionaire Teacher and FREE book giveaway Part 3.
Also, the Dividend Ninja has book to give away. See Kylie Ofiu Book Review and Giveaway. Book is called 365 Ways to Make Money.
Now, I want to talk about the stock of H&R Real Estate (TSX-HR.UN) today. I do not own this stock. This is another REIT or Real Estate company that I follow. This company has also had problems with distributions recently. They cut their distributions by 50% in 2009. However, they have been raising the distributions recently. They were up just over 9% in 2010 and are up by just over 23% in 2011. So far, unit holders will get just over 8% more distribution in 2012.
Because of the decrease in distributions in 2009 there was no growth in distributions between 2000 and 2010. In fact, distributions over this period were down by 3.4% per year. Over the previous 5 they were down by 9.6% per year. However, looking at distributions between 2001 and 2011, they are not as bad as they down only by 1.8% per year. Over the past 5 years ending in 2011, they are down by 6% per year. Dividend still would have to increase by 37% to get back to their peak of 2008.
I know that it is hard to have distributions cut, but you do not want a REIT to provide distributions that they cannot afford. REITs provide good distribution yields and low growth. I you plan to live off of dividends and distributions from stock, you would want to invest in other sectors before investing in REITs. For more information on this subject, see my site for information on setting up a portfolio.
This REIT is also growing by issuing more units. The increase in units outstanding is at 10 year median of 9.7% per year. Because of this, things like Revenue are increasing faster than Revenue per Share. Revenue growth over the past 5 and 10 years is at 4.8% and 14.7% per year, respectively. Revenue per Share growth over the past 5 and 10 years is 0% and 2.8% per year, respectively.
With things like revenue, you want a company to be growing both Total Revenue and Revenue per Share. Revenue per Share can be growing faster than Total Revenue if a company is buying back shares. You want to look carefully at companies that cannot growth both Total Revenue and Revenue per Share over a long period of time, to find out the reason for it.
For this stock, Total Return has not been bad. Over the past 5 and 10 years, if you owned this stock, Total Return would be at the rate of 4% and 13.5% per year. Distributions would account for 5.6% and 8.5% per year, respectively. That is the capital return over the past 5 year is negative.
The growth in Cash Flow is marginal over the past 5 and 10 years at .4% and 3.9% per year. Book Value has not increased. Return on Equity was better for the financial year of 2010 at 10.7% that it has been for some time. The 5 year median was just 5.9%. The expected ROE for 2011 is quite low at just 2.1%.
The next thing to discuss is Debt Ratios. The Asset/Liabilities Ratio is borderline. What I like to see is a ratio of 1.50. The one for this stock is 1.49. This ratio is ok. The current Leverage and Debt/Equity Ratios are also ok at 3.19 and 2.13.
As with all REITs, this one can provide dividend investors some very good income. This REIT has a lower Payout Ratio as far as Distributable Income is concerned with a current one around 64% and a higher 5 year median of 87%. The Payout Ratio from Cash Flow has a 5 year median of 86.7%, which is somewhat high, but the one for 2010 was 47% and this year is expected to be 37%.
They had some problems with building Calgary's Bow tower. See an article on this at G&M. This article was first published in April 2009 and was last updated in November 2010. There is another article on this dated April 2009 at Canada East. Some analysts are still worried about this tower.
They have a portfolio of office properties, single-tenant industrial properties, retail properties and development projects. They operate across Canada and US. Its web site is here H&R. See my spreadsheet at hr.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.
Also, the Dividend Ninja has book to give away. See Kylie Ofiu Book Review and Giveaway. Book is called 365 Ways to Make Money.
Now, I want to talk about the stock of H&R Real Estate (TSX-HR.UN) today. I do not own this stock. This is another REIT or Real Estate company that I follow. This company has also had problems with distributions recently. They cut their distributions by 50% in 2009. However, they have been raising the distributions recently. They were up just over 9% in 2010 and are up by just over 23% in 2011. So far, unit holders will get just over 8% more distribution in 2012.
Because of the decrease in distributions in 2009 there was no growth in distributions between 2000 and 2010. In fact, distributions over this period were down by 3.4% per year. Over the previous 5 they were down by 9.6% per year. However, looking at distributions between 2001 and 2011, they are not as bad as they down only by 1.8% per year. Over the past 5 years ending in 2011, they are down by 6% per year. Dividend still would have to increase by 37% to get back to their peak of 2008.
I know that it is hard to have distributions cut, but you do not want a REIT to provide distributions that they cannot afford. REITs provide good distribution yields and low growth. I you plan to live off of dividends and distributions from stock, you would want to invest in other sectors before investing in REITs. For more information on this subject, see my site for information on setting up a portfolio.
This REIT is also growing by issuing more units. The increase in units outstanding is at 10 year median of 9.7% per year. Because of this, things like Revenue are increasing faster than Revenue per Share. Revenue growth over the past 5 and 10 years is at 4.8% and 14.7% per year, respectively. Revenue per Share growth over the past 5 and 10 years is 0% and 2.8% per year, respectively.
With things like revenue, you want a company to be growing both Total Revenue and Revenue per Share. Revenue per Share can be growing faster than Total Revenue if a company is buying back shares. You want to look carefully at companies that cannot growth both Total Revenue and Revenue per Share over a long period of time, to find out the reason for it.
For this stock, Total Return has not been bad. Over the past 5 and 10 years, if you owned this stock, Total Return would be at the rate of 4% and 13.5% per year. Distributions would account for 5.6% and 8.5% per year, respectively. That is the capital return over the past 5 year is negative.
The growth in Cash Flow is marginal over the past 5 and 10 years at .4% and 3.9% per year. Book Value has not increased. Return on Equity was better for the financial year of 2010 at 10.7% that it has been for some time. The 5 year median was just 5.9%. The expected ROE for 2011 is quite low at just 2.1%.
The next thing to discuss is Debt Ratios. The Asset/Liabilities Ratio is borderline. What I like to see is a ratio of 1.50. The one for this stock is 1.49. This ratio is ok. The current Leverage and Debt/Equity Ratios are also ok at 3.19 and 2.13.
As with all REITs, this one can provide dividend investors some very good income. This REIT has a lower Payout Ratio as far as Distributable Income is concerned with a current one around 64% and a higher 5 year median of 87%. The Payout Ratio from Cash Flow has a 5 year median of 86.7%, which is somewhat high, but the one for 2010 was 47% and this year is expected to be 37%.
They had some problems with building Calgary's Bow tower. See an article on this at G&M. This article was first published in April 2009 and was last updated in November 2010. There is another article on this dated April 2009 at Canada East. Some analysts are still worried about this tower.
They have a portfolio of office properties, single-tenant industrial properties, retail properties and development projects. They operate across Canada and US. Its web site is here H&R. See my spreadsheet at hr.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, December 7, 2011
Calloway Real Estate Investment Trust 2
I do not own this stock (TSX-CWT.UN). This is one of a few REITs and Real Estate companies that I follow. Like a lot of Real Estate companies, the company has problem raising their distributions lately. They have not increased them since 2008.
When I look at insider trading I find a bit of insider buying and some insider selling. The insider buying is at $.37M and the net buying is at $.28M. Most of the insider buying is by a Director. All the insider selling is by the CEO. Also some 78 institutions own 34% of the shares of this company. There has been some buying and selling over the past 3 months and they have marginally reduced their ownership.
Most analysts give estimates for FFO, not EPS. Looking at Price/FFO, I have a 5 year median 15.28 and a 5 year median low of 11.68. The current Price/FFO is 16.28, which suggests that the stock price is rather high. One problem I am finding with this stock is that the quarterly reports for this year do not give an EPS. Sites that do give this information do not have the same information. So this is quite confusing. The other problem with the EPS is that it tends to jump around a lot.
The lack of EPS hampers the calculation for the Graham Price. I am using the highest previous Graham Price as sites seem to imply that earnings will be up sharply this year. So with a Graham Price of $17.97, the current stock price of $26.97 is some 50% higher. This is very close to the median difference between the Graham Price and the Stock price, where the stock price is 48% higher than the Graham price.
I get a 10 year median Price/Book Value Ratio of 1.51 and a current P/B Ratio of 1.53. This ratio points to the stock price being close to a median relative price. The last thing to look at is the dividend yield. The current dividend yield is 5.74% and the 5 year median is 6.96%. Even the 9 year median low dividend yield is higher at 6.14%. This would suggest that the current stock price is relatively high. So it seems that none of my tests show this stock at a good relative price. Two show it relatively high and two show it at a relatively median price.
When I look at analyst recommendations, I find a few Strong Buy, a few Buy and lots of Hold recommendations. The consensus recommendation would be a hold. I can only find comments from analysts that feel this is a buy and they are say the same thing. They call this REIT the “Wal-Mart’ REIT, because of its strategic relationship with Wal-Mart. They think that it can only make money for its shareholders.
A Hold recommendation gives the 12 month stock price at $27.53. This is only 2% higher than the current stock price of $26.97. Another Hold recommendation gives a 12 months stock price of $28 and this is 3.8% higher than the current price. A 3.8% increase is not bad considering the dividend yield of 5.74%. This would give a Total return of 9.5%. A return of 8% or above is good for a REIT stock.
There is an interesting article about REITs by Moody’s Investment Service. This article is a bit hard to read because it is all squished up, but it is worthwhile. Another blogger Dividend Boy has also recently written about this stock.
Calloway REIT is the largest owner of large-format unenclosed retail properties in Canada. Its web site is here Calloway. See my spreadsheet at cwt.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 a bit of insider buying and some insider selling. The insider buying is at $.37M and the net buying is at $.28M. Most of the insider buying is by a Director. All the insider selling is by the CEO. Also some 78 institutions own 34% of the shares of this company. There has been some buying and selling over the past 3 months and they have marginally reduced their ownership.
Most analysts give estimates for FFO, not EPS. Looking at Price/FFO, I have a 5 year median 15.28 and a 5 year median low of 11.68. The current Price/FFO is 16.28, which suggests that the stock price is rather high. One problem I am finding with this stock is that the quarterly reports for this year do not give an EPS. Sites that do give this information do not have the same information. So this is quite confusing. The other problem with the EPS is that it tends to jump around a lot.
The lack of EPS hampers the calculation for the Graham Price. I am using the highest previous Graham Price as sites seem to imply that earnings will be up sharply this year. So with a Graham Price of $17.97, the current stock price of $26.97 is some 50% higher. This is very close to the median difference between the Graham Price and the Stock price, where the stock price is 48% higher than the Graham price.
I get a 10 year median Price/Book Value Ratio of 1.51 and a current P/B Ratio of 1.53. This ratio points to the stock price being close to a median relative price. The last thing to look at is the dividend yield. The current dividend yield is 5.74% and the 5 year median is 6.96%. Even the 9 year median low dividend yield is higher at 6.14%. This would suggest that the current stock price is relatively high. So it seems that none of my tests show this stock at a good relative price. Two show it relatively high and two show it at a relatively median price.
When I look at analyst recommendations, I find a few Strong Buy, a few Buy and lots of Hold recommendations. The consensus recommendation would be a hold. I can only find comments from analysts that feel this is a buy and they are say the same thing. They call this REIT the “Wal-Mart’ REIT, because of its strategic relationship with Wal-Mart. They think that it can only make money for its shareholders.
A Hold recommendation gives the 12 month stock price at $27.53. This is only 2% higher than the current stock price of $26.97. Another Hold recommendation gives a 12 months stock price of $28 and this is 3.8% higher than the current price. A 3.8% increase is not bad considering the dividend yield of 5.74%. This would give a Total return of 9.5%. A return of 8% or above is good for a REIT stock.
There is an interesting article about REITs by Moody’s Investment Service. This article is a bit hard to read because it is all squished up, but it is worthwhile. Another blogger Dividend Boy has also recently written about this stock.
Calloway REIT is the largest owner of large-format unenclosed retail properties in Canada. Its web site is here Calloway. See my spreadsheet at cwt.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, December 6, 2011
Calloway Real Estate Investment Trust
I do not own this stock (TSX-CWT.UN). This is one of a few REITs and Real Estate companies that I follow. Like a lot of Real Estate companies, the company has problem raising their distributions lately. They have not increased them since 2008. Well, at least it did not lower it distribution.
They are paying out a high percentage from their Funds from Operations (FFO). Last year it was 94%, but it is expected to be lower this year at 92%. (Using Distributable Income, I have a 5 year median payout ratio of 93%. However, how Distributable Income has been calculated has been changing, although mostly people are now using FFO and sometime AFFO (Adjusted Funds from Operations), currently.)
I have a 5 year distribution growth rate of 2.5% and a 7 year distributions growth rate of 4%. Note that REITS tend to payout all that they can in distributions. This leaves little room for growth. The desirable growth in distributions for REITS is at, or slightly better than the rate of inflation. However, distribution yield tends to be good. This REIT has a 5 year median distribution yield of 7%. Current yield is lower, at 5.7%.
The total returns on this stock has been quite good, considering that we have not yet come out of the recent recession. I think that any company producing a 5 year total return is probably doing ok. For this company, if you had held the stock for 5 years, your total return would be around 6% per year, with 6.5% per year of that coming from distributions. (That means there was negative capital gain.)
This company has grown tremendously over the past 10 years. The total return over the past 10 years is 50% per year, with 19% per year of this total from distributions. However, you should not expect such growth in the future. Growth really slowed down when this stock started to pay out distributions in 2002. Since then, the stock has only produced total returns of around 16.5% with 7.9% of that from distributions.
The other thing to mention about this stock is the rapid growth of equity units. This stock has a 10 year median growth in equity units of 22.7% per year. This shows up in things like revenue. Revenues have growth over the past 5 and 10 years at the rate of 20% and 81% per year. However, Revenue per Share has, over the past 5 and 10 years only grown at the rate of 8% and 4.6% per year.
Distributable income per share has grown at the rate of 2.4% and 9.5% per year over the past 5 and 7 years at the rate of 2.4% and 4% per year. (This is similar to the distribution growth rates.) EPS have negative growth, but they have had no years of EPS loses. Over the past 5 and 10 years, cash flow per share has grown at 0% and 7% per year.
Also Book Value per share has grown over the past years at 20.5% per year. However, Book Value per share has declined over the past 5 years by 2% per year. (Note this often happens on REIT stocks, because they pay out in distributions more than they earn.)
For this stock, debt ratios are fine. The current Asset/Liability Ratio at 1.73 is good. The current Leverage and Debt/Equity Ratios are ok at 2.81 and 1.62 respectively.
Return on Equity has always been rather low for this stock. The 5 year median ROE is just 1.6%. The ROE for the financial year ending in 2010 was only .7%.
This company is also currently in the process of issuing more shares to raise money by issuing more shares. This is how this company seems to be growing, by issuing new shares. As a shareholder, the only growth rates you should be interested in are that per share, because this is what affects you as a shareholder. This stock has not done badly in providing income for its shareholders. Tomorrow, I will discuss what the analysts currently say about this stock and what my spreadsheet says about the current price.
Calloway REIT is the largest owner of large-format unenclosed retail properties in Canada. Its web site is here Calloway. See my spreadsheet at cwt.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.
They are paying out a high percentage from their Funds from Operations (FFO). Last year it was 94%, but it is expected to be lower this year at 92%. (Using Distributable Income, I have a 5 year median payout ratio of 93%. However, how Distributable Income has been calculated has been changing, although mostly people are now using FFO and sometime AFFO (Adjusted Funds from Operations), currently.)
I have a 5 year distribution growth rate of 2.5% and a 7 year distributions growth rate of 4%. Note that REITS tend to payout all that they can in distributions. This leaves little room for growth. The desirable growth in distributions for REITS is at, or slightly better than the rate of inflation. However, distribution yield tends to be good. This REIT has a 5 year median distribution yield of 7%. Current yield is lower, at 5.7%.
The total returns on this stock has been quite good, considering that we have not yet come out of the recent recession. I think that any company producing a 5 year total return is probably doing ok. For this company, if you had held the stock for 5 years, your total return would be around 6% per year, with 6.5% per year of that coming from distributions. (That means there was negative capital gain.)
This company has grown tremendously over the past 10 years. The total return over the past 10 years is 50% per year, with 19% per year of this total from distributions. However, you should not expect such growth in the future. Growth really slowed down when this stock started to pay out distributions in 2002. Since then, the stock has only produced total returns of around 16.5% with 7.9% of that from distributions.
The other thing to mention about this stock is the rapid growth of equity units. This stock has a 10 year median growth in equity units of 22.7% per year. This shows up in things like revenue. Revenues have growth over the past 5 and 10 years at the rate of 20% and 81% per year. However, Revenue per Share has, over the past 5 and 10 years only grown at the rate of 8% and 4.6% per year.
Distributable income per share has grown at the rate of 2.4% and 9.5% per year over the past 5 and 7 years at the rate of 2.4% and 4% per year. (This is similar to the distribution growth rates.) EPS have negative growth, but they have had no years of EPS loses. Over the past 5 and 10 years, cash flow per share has grown at 0% and 7% per year.
Also Book Value per share has grown over the past years at 20.5% per year. However, Book Value per share has declined over the past 5 years by 2% per year. (Note this often happens on REIT stocks, because they pay out in distributions more than they earn.)
For this stock, debt ratios are fine. The current Asset/Liability Ratio at 1.73 is good. The current Leverage and Debt/Equity Ratios are ok at 2.81 and 1.62 respectively.
Return on Equity has always been rather low for this stock. The 5 year median ROE is just 1.6%. The ROE for the financial year ending in 2010 was only .7%.
This company is also currently in the process of issuing more shares to raise money by issuing more shares. This is how this company seems to be growing, by issuing new shares. As a shareholder, the only growth rates you should be interested in are that per share, because this is what affects you as a shareholder. This stock has not done badly in providing income for its shareholders. Tomorrow, I will discuss what the analysts currently say about this stock and what my spreadsheet says about the current price.
Calloway REIT is the largest owner of large-format unenclosed retail properties in Canada. Its web site is here Calloway. See my spreadsheet at cwt.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, December 5, 2011
Goodfellow Inc. 2
I own this stock (TSX-GDL). I bought some at the end of 2010 and more in February 2011. I have not held this stock very long and I have lost some 34% of the value of my shares. I do believe I will do much better in the long term.
When I look at insider trading I find some selling ($.44M) by one of the Goodfellow family members. Insiders went from owning just over 60% of the company to owning 59.4% of this. Not much of a change. Also, there are two institutional owners that own some 12% of this company. Over the past 3 months they have neither sold nor bought any stock.
The 5 year low median Price/Earnings Ratio is just 5.81 and the 5 year high median P/E Ratio is 14.21. The current P/E Ratio at 8.16 is below the 5 year median P/E. However, it is a bit higher than the 10 year median P/E Ratio. This stock has generally had quite low P/E Ratios.
I get a Graham Price of $17.42 and the current stock price of $8.16 is some 53% lower. The median difference between the Graham Price and stock price is the stock price at 45.4% lower. So the current price is better than median. However, both the P/E and Graham Price are based on earnings estimates and these can be unreliable.
When looking at the book value, a couple of things are notable. First of all the Price/Book Value Ratio is just 0.60%. That means that the stock price is lower than the book value and this usually shows a good stock price. However, the 10 year median P/B Ratio is just 0.90, so generally speaking the stock price has been lower than the stock price.
The last thing to look at is the dividend yield. The current yield is just 2.45%. The stock has a 5 year median of 5.38%. The main reason for this is that they have been lowering the dividends since 2011 because of lack of earnings. They are being prudent. I do not think this stock will improve until dividends start moving up again. The company will probably not do this until they are sure of better earnings.
Why this stock has been so generally cheap probably has to do with it being a small cap with insiders owning a substantial portion of the stock. I could find no analyst following this stock.
The following report is a little old, being written in 2009. However, it is hard to find much on this company. See Jonathon Goldberg. There is another article dated in 2009 on this stock. This is one from The Canadian Benjamin Grahamblogger. People seemed to have lost interest in this stock as it hasn’t done much recently. I would think the recession will have to go before this will come back.
There is also mention of this stock in a Globe and Mail Number Cruncher article. See the Safe and cheap: Graham would have approved article. I should say something about number cruncher type articles. They might point out good stocks, but you really need to research companies beyond what these filters show. Sometimes, numbers can be deceiving.
I am certainly holding on to the shares I have bought, but mind you, I have not invested much in this company. I think that it will take a while to recover. The problem is no one knows when the current recession will be over. It is a balance sheet recession and therefore, historically, will take some time.
One thing this stock has going for it is, one of the insider owner is Stephen Arnold Jarislowsky. This man is a legendary investor. See Wikipedia entry.
Goodfellow Inc. is one of eastern Canada's largest independent re-manufacturers and distributors of lumber and hardwood flooring products. The company serves customers throughout Canada, the United States and abroad including the UK and China and the Middle East. H.Q is Delson, Québec, just outside Montreal.
It is about 60% owned by insiders. Its web site is here Goodfellow Inc.. See my spreadsheet at gdl.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 some selling ($.44M) by one of the Goodfellow family members. Insiders went from owning just over 60% of the company to owning 59.4% of this. Not much of a change. Also, there are two institutional owners that own some 12% of this company. Over the past 3 months they have neither sold nor bought any stock.
The 5 year low median Price/Earnings Ratio is just 5.81 and the 5 year high median P/E Ratio is 14.21. The current P/E Ratio at 8.16 is below the 5 year median P/E. However, it is a bit higher than the 10 year median P/E Ratio. This stock has generally had quite low P/E Ratios.
I get a Graham Price of $17.42 and the current stock price of $8.16 is some 53% lower. The median difference between the Graham Price and stock price is the stock price at 45.4% lower. So the current price is better than median. However, both the P/E and Graham Price are based on earnings estimates and these can be unreliable.
When looking at the book value, a couple of things are notable. First of all the Price/Book Value Ratio is just 0.60%. That means that the stock price is lower than the book value and this usually shows a good stock price. However, the 10 year median P/B Ratio is just 0.90, so generally speaking the stock price has been lower than the stock price.
The last thing to look at is the dividend yield. The current yield is just 2.45%. The stock has a 5 year median of 5.38%. The main reason for this is that they have been lowering the dividends since 2011 because of lack of earnings. They are being prudent. I do not think this stock will improve until dividends start moving up again. The company will probably not do this until they are sure of better earnings.
Why this stock has been so generally cheap probably has to do with it being a small cap with insiders owning a substantial portion of the stock. I could find no analyst following this stock.
The following report is a little old, being written in 2009. However, it is hard to find much on this company. See Jonathon Goldberg. There is another article dated in 2009 on this stock. This is one from The Canadian Benjamin Grahamblogger. People seemed to have lost interest in this stock as it hasn’t done much recently. I would think the recession will have to go before this will come back.
There is also mention of this stock in a Globe and Mail Number Cruncher article. See the Safe and cheap: Graham would have approved article. I should say something about number cruncher type articles. They might point out good stocks, but you really need to research companies beyond what these filters show. Sometimes, numbers can be deceiving.
I am certainly holding on to the shares I have bought, but mind you, I have not invested much in this company. I think that it will take a while to recover. The problem is no one knows when the current recession will be over. It is a balance sheet recession and therefore, historically, will take some time.
One thing this stock has going for it is, one of the insider owner is Stephen Arnold Jarislowsky. This man is a legendary investor. See Wikipedia entry.
Goodfellow Inc. is one of eastern Canada's largest independent re-manufacturers and distributors of lumber and hardwood flooring products. The company serves customers throughout Canada, the United States and abroad including the UK and China and the Middle East. H.Q is Delson, Québec, just outside Montreal.
It is about 60% owned by insiders. Its web site is here Goodfellow Inc.. See my spreadsheet at gdl.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, December 2, 2011
Goodfellow Inc.
First of all my two articles reviewing the Industrial stocks I follow was unpopular (by number of people reading these entries), so I will stop doing such reviews. Also, I will start reviewing the bank stocks I follow after the audited statements are published, which should not be too long from now.
The stock I want to talk about today is Goodfellow Inc. (TSX-GDL). This is a stock I own. I bought some at the end of 2010 and more in February 2011. It seemed to be a good small cap and the Investment Reporter has been pushing this stock. See their site, called Advice for Investors here.
For this stock, dividends can fluctuate, so it has a bit of a mixed record. Over the past 5 years, the dividends have gone down by 7.75% per year. However, over the past 10 years they have increased by 10%. Also, the total dividends payable in the financial year ending in August 2012 will be down by 50% from those payable in the financial year ending in August 2011. This is projected dividends, and since the company only declares the dividends as they are payable, this could change. They also have given out special dividends in the past.
The current dividend yield is just 2.25% and this is quite a bit lower than the median dividend yield on this stock, which has a 5 year median of 5.4% and a 10 year median yield of 4.1%. The reason for this is probably that the financial year ending in August 2011 was not a good year for this company. Earnings were down 76% and cash flow down 65%.
The Dividend Payout Ratio was higher in 2011 at 88% for earnings and 73% for cash flow. The 5 year median values are better at 60% for earnings and 21% for cash flow. The DPR values were probably another reason for this company to lower dividends. They are doing the prudent thing. (See my site for information on Dividend Payout Ratios).
The best growth rate for this stock is their 10 year growth in Total Return. The 10 year total return was 15% per year with some 7.4% of this return from dividends. However, if you bought this stock 5 years ago, you would have lost money or broken even as far as the total return is concerned. The portion of the 5 year total return for dividends would be around 5% per year.
The next best growth rate was for book value. The 5 and 10 year growth was 4% and 7% per year. All other growth rates are negative. This includes revenues, earnings and cash flow. However, note that here was no year with negative earnings or negative cash flow.
This company is 60% owned by insiders. The thing I have noticed with companies with lots of insider ownership is good debt ratios. This stock is not different. The current Liquidity Ratio is great at 2.49 and a 5 year median ratio also at 2.49. The Asset/Liability Ratios is even better at 3.01 with a 5 year median ratio of 2.96. The current Leverage and Debt/Equity Ratios are also very good at 1.50 and 0.50. With these debt ratios they can survive a lot of hard times.
As I have said, the financial year ending in August 2011 was not a good year for this company. The Return on Equity Ratio was just 2.6%. The 5 year median ROE was better at 9.8%. That is not that good. However, most years, this company has had ROEs of at least 10%, a much better rate.
I realized when I bought this stock that there would be future trouble. This company will not really do well until we get over this current recession thing. I do not know, as same as everyone else, when this might be. In the meantime, I will be holding on to what I have bought in this stock. It is a small cap, so my investment is small.
Goodfellow Inc. is one of eastern Canada's largest independent re-manufacturers and distributors of lumber and hardwood flooring products. The company serves customers throughout Canada, the United States and abroad including the UK and China and the Middle East. H.Q is Delson, Québec, just outside Montreal.
It is about 60% owned by insiders. Its web site is here Goodfellow Inc. See my spreadsheet at gdl.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 stock I want to talk about today is Goodfellow Inc. (TSX-GDL). This is a stock I own. I bought some at the end of 2010 and more in February 2011. It seemed to be a good small cap and the Investment Reporter has been pushing this stock. See their site, called Advice for Investors here.
For this stock, dividends can fluctuate, so it has a bit of a mixed record. Over the past 5 years, the dividends have gone down by 7.75% per year. However, over the past 10 years they have increased by 10%. Also, the total dividends payable in the financial year ending in August 2012 will be down by 50% from those payable in the financial year ending in August 2011. This is projected dividends, and since the company only declares the dividends as they are payable, this could change. They also have given out special dividends in the past.
The current dividend yield is just 2.25% and this is quite a bit lower than the median dividend yield on this stock, which has a 5 year median of 5.4% and a 10 year median yield of 4.1%. The reason for this is probably that the financial year ending in August 2011 was not a good year for this company. Earnings were down 76% and cash flow down 65%.
The Dividend Payout Ratio was higher in 2011 at 88% for earnings and 73% for cash flow. The 5 year median values are better at 60% for earnings and 21% for cash flow. The DPR values were probably another reason for this company to lower dividends. They are doing the prudent thing. (See my site for information on Dividend Payout Ratios).
The best growth rate for this stock is their 10 year growth in Total Return. The 10 year total return was 15% per year with some 7.4% of this return from dividends. However, if you bought this stock 5 years ago, you would have lost money or broken even as far as the total return is concerned. The portion of the 5 year total return for dividends would be around 5% per year.
The next best growth rate was for book value. The 5 and 10 year growth was 4% and 7% per year. All other growth rates are negative. This includes revenues, earnings and cash flow. However, note that here was no year with negative earnings or negative cash flow.
This company is 60% owned by insiders. The thing I have noticed with companies with lots of insider ownership is good debt ratios. This stock is not different. The current Liquidity Ratio is great at 2.49 and a 5 year median ratio also at 2.49. The Asset/Liability Ratios is even better at 3.01 with a 5 year median ratio of 2.96. The current Leverage and Debt/Equity Ratios are also very good at 1.50 and 0.50. With these debt ratios they can survive a lot of hard times.
As I have said, the financial year ending in August 2011 was not a good year for this company. The Return on Equity Ratio was just 2.6%. The 5 year median ROE was better at 9.8%. That is not that good. However, most years, this company has had ROEs of at least 10%, a much better rate.
I realized when I bought this stock that there would be future trouble. This company will not really do well until we get over this current recession thing. I do not know, as same as everyone else, when this might be. In the meantime, I will be holding on to what I have bought in this stock. It is a small cap, so my investment is small.
Goodfellow Inc. is one of eastern Canada's largest independent re-manufacturers and distributors of lumber and hardwood flooring products. The company serves customers throughout Canada, the United States and abroad including the UK and China and the Middle East. H.Q is Delson, Québec, just outside Montreal.
It is about 60% owned by insiders. Its web site is here Goodfellow Inc. See my spreadsheet at gdl.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, December 1, 2011
All the Industrial Stocks That I Track 2
First, I would like to point out that My Own Advisor Blogger is giving away a book called Millionaire Teacher for free. See his blog called My Favourite Takeaways – Millionaire Teacher and FREE book giveaway Part 2.
Next, I want to continue on with talking about the Industrial stocks I track. This is part 2 of my entry these companies. For all the stock I follow, I have shown the link to my blog entries. The first blog entry should help you answer the questions of whether or not you might like to invest in the stock.
The 2nd blog entry deals with its current price, but you can compare the past median values to current ones to see if you would want to invest in it today. For example, you can compare current P/E Ratios from financial sites to the median P/E Ratios given in my blog. The G&M and Reuter can both give you current ratios. For Reuter, use TO after the stock symbol to find stock listings for Canadian companies. For Ag Growth International would be the symbol of “AFN.TO”.
For a dividend paying stock portfolio, you might want to buy Industrial stocks after you buy safer Utilities and financial stocks. See my site for information on setting up a portfolio. Also, Industrial stocks cover a wide field of endeavors. One definition is “in stock market vernacular, general, catch-all category including firms producing or distributing goods and services that are not classified as utility, consumer, or financial companies”.
Methanex Corp (TSX-MX, NASDAQ-MEOH). The 5 year median dividend yield is 2.38% and the DPRs are good. The 5 year growth in dividend is just 4.4% per year, but inflation is lower at just 2% per year. Dividends are inconsistent. For my blog entries dated November 2011, click here or here.
Mullen Group Ltd (TSX-MTL). This company changed from a Unit Trust to a corporation. They initially lowered their dividends, but since then have been again, raising them. The 5 year median dividend yield is 6.61%, but it has been moving lower. The 5 year median DPRs are high, but are currently good. For my blog entries dated November 2011, click here or here.
Organic Resource Management (TSXV-ORI). This is a small cap I have been in for some time. I have not sold as it is worth so little. They pay no dividends. For my blog entry dated October 2011, click here.
PFB Corp (TSX-PFB). This company has not raised their dividend since 2005. 5 year median dividend yield is 3.89% and their DPRs are fine. This is considered a high risk stock. For my blog entries dated February 2011, click here or here.
Progressive Waste Solutions Ltd (TSX-BIN). This is a company I own and it used to be an income trust. It reduced their dividends in 2009 and it has not raised them since. The 5 year median dividend yield is 6.6%, but current one around 2%. DPRs have been coming down and are currently good. For my blog entries dated July 2011, click here or here.
Pulse Seismic Inc. (TSX-PSD). I originally looked at this company because it was a small cap with dividends. They stopped their dividends in 2008, but have restarted them in September 2011. Current yield is 2.8%. For my blog entries dated January 2011, click here.
Russel Metals (TSX-RUS). This is a stock that I own. The dividends vary so that the 10 year growth in dividends is 17.5% per year, but the 5 year growth is 0%, per year. The 5 year median Dividend yield is 6.3%. The DPRs are moderate. For my blog entries dated June 2011, click here or here.
SNC-Lavalin (TSX-SNC). This is a stock that I own. The 5 year median dividend yield is just 1.1%. The 5 year DPRs are fairly low. The dividend growth is good with 5 year growth at 24% per year. The DPRs are moderate. For my blog entries dated July 2011, click here or here.
Stantec Inc. (TSX-STN). This is a stock that I used to own, however, I never intended to keep it. This is because it pays no dividends. Growth has been ok for the past 5 and 10 years. For my blog entries dated August 2011, click here or here.
Stella-Jones Inc. (TSX-SJ). I do not own this stock. Dividend yield is low with the 5 year median at 1.3%. DPRs are quite low. However, the dividend growth is 30% per year over the past 5 years. For my blog entries dated November 2011, click here or here.
TECSYS Inc. (TSX-TCS). I own this stock. It is a small cap stock, with a median dividend yield of 2.83%. DPRs are at a moderate level. Dividend growth is around 11% on average per year. For my blog entries dated August 2011, click here or here.
Toromont Industries Ltd (TSX-TIH). I own this stock also. Dividends yields are low with a 5 median at 1.3% and correspondingly low DPRs. Dividend growth is 14% per year. For my blog entries dated March 2011, click here or here.
Transcontinental Inc. (TSX-TCL.A). I do not own this stock. Dividends yields have a 5 median at 2.2%. The DPR for earnings is rather high, but the DPR for cash flow is quite good. Earnings have not been good lately, but cash flow is fine. Dividend growth is 14% per year. Dividends were increased between 2010 and 2011 by 40%, so it would appear that the company expects to do better in the future. I will blog again about this stock when the November 2011 financials are published. For my blog entries dated December 2010, click here or here.
Waterfurnaces Renewable Energy (TSX-WFI). I do not own this stock. Dividends yields have a 5 median at 3.3%. The DPRs are reasonable. Since dividends are paid in US$, they will fluctuate with the changes in US$ to CDN$. Dividend growth is around 11% per year. For my blog entries dated January 2011, click here or here.
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.
Next, I want to continue on with talking about the Industrial stocks I track. This is part 2 of my entry these companies. For all the stock I follow, I have shown the link to my blog entries. The first blog entry should help you answer the questions of whether or not you might like to invest in the stock.
The 2nd blog entry deals with its current price, but you can compare the past median values to current ones to see if you would want to invest in it today. For example, you can compare current P/E Ratios from financial sites to the median P/E Ratios given in my blog. The G&M and Reuter can both give you current ratios. For Reuter, use TO after the stock symbol to find stock listings for Canadian companies. For Ag Growth International would be the symbol of “AFN.TO”.
For a dividend paying stock portfolio, you might want to buy Industrial stocks after you buy safer Utilities and financial stocks. See my site for information on setting up a portfolio. Also, Industrial stocks cover a wide field of endeavors. One definition is “in stock market vernacular, general, catch-all category including firms producing or distributing goods and services that are not classified as utility, consumer, or financial companies”.
Methanex Corp (TSX-MX, NASDAQ-MEOH). The 5 year median dividend yield is 2.38% and the DPRs are good. The 5 year growth in dividend is just 4.4% per year, but inflation is lower at just 2% per year. Dividends are inconsistent. For my blog entries dated November 2011, click here or here.
Mullen Group Ltd (TSX-MTL). This company changed from a Unit Trust to a corporation. They initially lowered their dividends, but since then have been again, raising them. The 5 year median dividend yield is 6.61%, but it has been moving lower. The 5 year median DPRs are high, but are currently good. For my blog entries dated November 2011, click here or here.
Organic Resource Management (TSXV-ORI). This is a small cap I have been in for some time. I have not sold as it is worth so little. They pay no dividends. For my blog entry dated October 2011, click here.
PFB Corp (TSX-PFB). This company has not raised their dividend since 2005. 5 year median dividend yield is 3.89% and their DPRs are fine. This is considered a high risk stock. For my blog entries dated February 2011, click here or here.
Progressive Waste Solutions Ltd (TSX-BIN). This is a company I own and it used to be an income trust. It reduced their dividends in 2009 and it has not raised them since. The 5 year median dividend yield is 6.6%, but current one around 2%. DPRs have been coming down and are currently good. For my blog entries dated July 2011, click here or here.
Pulse Seismic Inc. (TSX-PSD). I originally looked at this company because it was a small cap with dividends. They stopped their dividends in 2008, but have restarted them in September 2011. Current yield is 2.8%. For my blog entries dated January 2011, click here.
Russel Metals (TSX-RUS). This is a stock that I own. The dividends vary so that the 10 year growth in dividends is 17.5% per year, but the 5 year growth is 0%, per year. The 5 year median Dividend yield is 6.3%. The DPRs are moderate. For my blog entries dated June 2011, click here or here.
SNC-Lavalin (TSX-SNC). This is a stock that I own. The 5 year median dividend yield is just 1.1%. The 5 year DPRs are fairly low. The dividend growth is good with 5 year growth at 24% per year. The DPRs are moderate. For my blog entries dated July 2011, click here or here.
Stantec Inc. (TSX-STN). This is a stock that I used to own, however, I never intended to keep it. This is because it pays no dividends. Growth has been ok for the past 5 and 10 years. For my blog entries dated August 2011, click here or here.
Stella-Jones Inc. (TSX-SJ). I do not own this stock. Dividend yield is low with the 5 year median at 1.3%. DPRs are quite low. However, the dividend growth is 30% per year over the past 5 years. For my blog entries dated November 2011, click here or here.
TECSYS Inc. (TSX-TCS). I own this stock. It is a small cap stock, with a median dividend yield of 2.83%. DPRs are at a moderate level. Dividend growth is around 11% on average per year. For my blog entries dated August 2011, click here or here.
Toromont Industries Ltd (TSX-TIH). I own this stock also. Dividends yields are low with a 5 median at 1.3% and correspondingly low DPRs. Dividend growth is 14% per year. For my blog entries dated March 2011, click here or here.
Transcontinental Inc. (TSX-TCL.A). I do not own this stock. Dividends yields have a 5 median at 2.2%. The DPR for earnings is rather high, but the DPR for cash flow is quite good. Earnings have not been good lately, but cash flow is fine. Dividend growth is 14% per year. Dividends were increased between 2010 and 2011 by 40%, so it would appear that the company expects to do better in the future. I will blog again about this stock when the November 2011 financials are published. For my blog entries dated December 2010, click here or here.
Waterfurnaces Renewable Energy (TSX-WFI). I do not own this stock. Dividends yields have a 5 median at 3.3%. The DPRs are reasonable. Since dividends are paid in US$, they will fluctuate with the changes in US$ to CDN$. Dividend growth is around 11% per year. For my blog entries dated January 2011, click here or here.
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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