On my other blog I am today writing about my spammers...continue...
I do not own this stock Medtronic Inc. (NYSE-MDT). In 2009 I was looking for a good US stock for my US$ account. I had heard good things about this stock and also it is in Health Care sector which is a weak sector in Canada.
This is an example of a fast growing company that has become a mature company. In its fast growing stage between approximately 1998 until 1992, the median P/E Ratio was 56.00. Since then the P/E Ratio has steadily been declining to a current 5 year median of 12.77 and the stock price has not really changed much. It could be worse as sometimes the price declines with the declining P/E Ratio.
On my spreadsheet, almost every growth measure shows good growth except for the growth in total return. The current 5 year low, median and high median P/E Ratios of 10.91, 12.77 and 14.64 are in line with those expected of a mature company, so there is hope that investors in the future will have better returns.
If you look at 5 year running growth over the past 5 and 10 years, you get growth of 9% and 12% per year for Revenue per Share, growth of 5.6% and 11% per year for EPS and growth of 7.7% and 11.7% per year for Cash Flow per Share. This is a very good showing.
The 5 year median dividend yield is 2.46%. The growth in dividends over the past 5 and 10 years is at 15.7% and 15.3% per year. The 5 year median Dividend Payout Ratios for earnings is at 31.5% and for cash flow is 23%. This is also a good showing.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. The majority of the recommendations are a Hold, but there are lots of Strong Buy recommendations too. The consensus would be a Buy. (See my blog for information on analyst ratings.) The 12 month stock price consensus is $58.30. This implies a total return of 12.02% with 2.11% from dividends and 9.91% from capital gains.
The blogger Insider Monkey says that Hedge funds are keen on this company. You can see more details here. The blogger I Stock Analyst finds the current price good in July 2013 at around $53.52. (The current price is around $53.04.)
For my stock price tests, I find that the P/E Ratio, which is currently at 14.38, shows a still reasonable price, but towards to high end as 5 year low, median and high median P/E Ratios are 10.91, 12.77 and 14.64. The Graham Price is $38.90 and the current P/GP Ratio is 1.36. The 10 year low, median and high median P/GP Ratios are 1.95, 2.28 and 2.58. This test says the stock price is relatively low.
The 10 year P/B Ratio is 4.05. The current one is only 30% of this value at 2.91. On a relatively basis the stock price is low. However, 2.91 is not a particularly low P/B Ratio. (A low P/B Ratio is 1.50.) The 5 year dividend yield is 2.46% and the current dividend yield at 2.11% is 15% lower. To get a good price, you would want the current dividend yield to be higher than the 5 year median dividend yield, but 15% difference is not that far off.
The stock price is probably relatively reasonable on a company with good growth. See my spreadsheet at mdt.htm.
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.
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 or StockTwits.
Monday, September 30, 2013
Friday, September 27, 2013
Canyon Services Group 2
On my other blog I am today writing about buying the market...continue...
I do not own this stock Canyon Services Group (TSX-FRC, OTC-CYSVF). I get a newsletter weekly from MPL Communications called Advice Hotline. They wrote up this stock on July 19th and I was impressed with it so I did a spreadsheet. You can sign up for this newsletter at their site.
When I look at insider trading, I find that there is insider selling of $3.8M shares over the past year, with net insider selling at $3.6M. There is a bit of insider buying. Insiders seem to be exercising options. This really tells us nothing.
The CEO has shares worth $10M and has options worth $10M. The CFO has shares worth $1M and has options worth 3.4M. An officer has shares worth $0.9M and has options worth $3.4M. A director has shares worth $0.5M and has options worth $0.4M. There is also a director with shares worth $30.9M and has options worth $0.2M. This is just to give you an idea on insider share ownership and option values.
The 5 year low, median and high median Price/Earnings per Share ratios are 7.82, 10.70 and 13.57. The current P/E is 61.42 based on 2013 earnings of $0.20 and current stock price of $11.67. However, it might be best to look at P/E based on 2014 earnings which is 11.22. This is based one earnings of $1.04 and a stock price of $11.67. Another thing to point out is the rather low historical P/E Ratios that this company has.
I get a current Graham price of $4.66 and a Price/Graham Price of 2.51, a very high ratio. However, if we use the Graham price for 2012 of $10.46 the P/GP Ratio is a more reasonable 1.12. The P/GP of 1.12 is within a reasonable range, but for a stock to be cheap the ratio would have to be 1.00 or lower.
The 7 year median Price/Book Value per Share Ratio is 1.14 and the current P/B Ratio is over 100% higher at 2.30. The P/B Ratio of 2.30 is not that high, but I would prefer it to be 1.50 or lower.
The Dividend yield is quite good at 5.14% and this shows a rather low stock price. However, it is hard to say where the company will be going on dividends in the future. Will this turn into a dividend growth company? This is rather hard to say at this point.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. The most recommendations are in the Hold category, but the consensus recommendation works out to a Buy. The 12 month consensus stock price is $13.70 and this implies a total return of 22.54% with 5.41% from dividends and 17.4% from capital gains.
It is only the dividend yield that suggests that the stock price might be low. If you look on to 2014, the Dividend Payout Ratios do not look bad at 57% for earnings and 35% for cash flow. However, on other measures, the price does not look cheap. I discussed some of this above with my stock tests.
Also, if you look at Price/Sales Ratio it is estimated to be 2.39 in 2013 and 1.62 in 2014. A cheap price would have this Ratio at around 1.00. If you look at the Price/Cash Flow per Share Ratios, this ratio is estimated to be around 14.41 for 2013 and 6.95 for 2014. A good price is when the P/CF is at 5.00 or lower.
The stock price is not cheap and the stock is rather risky. I find it an interesting stock, but not one I would purchase at this time. See my spreadsheet at frc.htm.
This is the second of two parts. The first part was posted on Thursday, September 26, 2013 and is available here.
Canyon Services Group Inc. is a fast-growing company providing hydraulic fracturing and other well-stimulation services, including coiled tubing, acidizing, cementing, nitrogen and CO², to oil and natural gas producers developing a variety of play types across Western Canada. Its web site is here Canyon Services Group.
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 or StockTwits.
I do not own this stock Canyon Services Group (TSX-FRC, OTC-CYSVF). I get a newsletter weekly from MPL Communications called Advice Hotline. They wrote up this stock on July 19th and I was impressed with it so I did a spreadsheet. You can sign up for this newsletter at their site.
When I look at insider trading, I find that there is insider selling of $3.8M shares over the past year, with net insider selling at $3.6M. There is a bit of insider buying. Insiders seem to be exercising options. This really tells us nothing.
The CEO has shares worth $10M and has options worth $10M. The CFO has shares worth $1M and has options worth 3.4M. An officer has shares worth $0.9M and has options worth $3.4M. A director has shares worth $0.5M and has options worth $0.4M. There is also a director with shares worth $30.9M and has options worth $0.2M. This is just to give you an idea on insider share ownership and option values.
The 5 year low, median and high median Price/Earnings per Share ratios are 7.82, 10.70 and 13.57. The current P/E is 61.42 based on 2013 earnings of $0.20 and current stock price of $11.67. However, it might be best to look at P/E based on 2014 earnings which is 11.22. This is based one earnings of $1.04 and a stock price of $11.67. Another thing to point out is the rather low historical P/E Ratios that this company has.
I get a current Graham price of $4.66 and a Price/Graham Price of 2.51, a very high ratio. However, if we use the Graham price for 2012 of $10.46 the P/GP Ratio is a more reasonable 1.12. The P/GP of 1.12 is within a reasonable range, but for a stock to be cheap the ratio would have to be 1.00 or lower.
The 7 year median Price/Book Value per Share Ratio is 1.14 and the current P/B Ratio is over 100% higher at 2.30. The P/B Ratio of 2.30 is not that high, but I would prefer it to be 1.50 or lower.
The Dividend yield is quite good at 5.14% and this shows a rather low stock price. However, it is hard to say where the company will be going on dividends in the future. Will this turn into a dividend growth company? This is rather hard to say at this point.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. The most recommendations are in the Hold category, but the consensus recommendation works out to a Buy. The 12 month consensus stock price is $13.70 and this implies a total return of 22.54% with 5.41% from dividends and 17.4% from capital gains.
It is only the dividend yield that suggests that the stock price might be low. If you look on to 2014, the Dividend Payout Ratios do not look bad at 57% for earnings and 35% for cash flow. However, on other measures, the price does not look cheap. I discussed some of this above with my stock tests.
Also, if you look at Price/Sales Ratio it is estimated to be 2.39 in 2013 and 1.62 in 2014. A cheap price would have this Ratio at around 1.00. If you look at the Price/Cash Flow per Share Ratios, this ratio is estimated to be around 14.41 for 2013 and 6.95 for 2014. A good price is when the P/CF is at 5.00 or lower.
The stock price is not cheap and the stock is rather risky. I find it an interesting stock, but not one I would purchase at this time. See my spreadsheet at frc.htm.
This is the second of two parts. The first part was posted on Thursday, September 26, 2013 and is available here.
Canyon Services Group Inc. is a fast-growing company providing hydraulic fracturing and other well-stimulation services, including coiled tubing, acidizing, cementing, nitrogen and CO², to oil and natural gas producers developing a variety of play types across Western Canada. Its web site is here Canyon Services Group.
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 or StockTwits.
Thursday, September 26, 2013
Canyon Services Group
I do not own this stock Canyon Services Group (TSX-FRC, OTC-CYSVF). I get a newsletter weekly from MPL Communications called Advice Hotline. They wrote up this stock on July 19th and I was impressed with it so I did a spreadsheet.
You can sign up for this newsletter at their site.
They started off with a low dividend in 2011 of less than 1% and only semi-annually. They increased it by 150% in 2012and also increased payments to quarterly. They then did another increase in 2012 of 140%. Since then the dividend has not changed. The current dividend yield is 5.14%.
The Dividend Payout Ratios for 2012 was fine at 58% for EPS and 43% for CFPS. However, analysts expect both Earnings and Cash Flow to drop this year. This is borne out by the second quarterly report. They had a positive cash flow for the second quarter, but there was an earnings loss. This is probably why the dividend has remained flat in 2013.
So far investors have had a great run with 5 year total return at 39.77% with 1.55% from dividends and 38.66% from capital gains. The 6 year total return is not a good with the return at 15.87% with 1.04% from dividends and 14.83% from capital gains.
The outstanding shares have increased by 22.8% per year over the past 5 years and 20.37% per year over the past 8 years. The shares have increased mostly because of new share issues, but there is some increase from stock options.
Revenues have increased by 49% and 44% per year over the past 5 and 7 years. Revenue per Share has increased by 21% and 20% per year over the past 5 and 7 years. Earnings per Share have been volatile as there are some years with negative earnings. EPS is up by 44% per year over the past 6 years, but a lower 11% per year over the past 7 years.
Cash Flow has been similarly volatile with Cash Flow per Share up by 34% per year over the past 5 years and a lower 9.5% per year over the past 7 years. The financial year 5 years ago was not a good year. This company was started in 2004 and went public in 2006 on the TSX.
The Return on Equity was not very good until 2010. The ROE for 2012 was 16.1%. For this company the net income and the comprehensive income is the same.
The Liquidity Ratio has had some volatility, but it has been good since 2009 and the current Liquidity Ratio is 1.91. The current Debt Ratio is very high at 6.41, although this ratio has had some volatility also. The Leverage and Debt/Equity Ratios have always been quite good and they are currently quite low at 1.00 and 0.16 respectively.
There is not a lot of history to go on for this firm and it is into hydraulic fracturing, so it is rather risky. However, if you can take the risk, you might be able to make decent money here. Another good point is the lack of debt. See my spreadsheet at frc.htm.
This is the first of two parts. Second part will be posted on Friday, September 27, 2013 and will be here.
Canyon Services Group Inc. is a fast-growing company providing hydraulic fracturing and other well-stimulation services, including coiled tubing, acidizing, cementing, nitrogen and CO², to oil and natural gas producers developing a variety of play types across Western Canada. Its web site is here Canyon Services Group.
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 or StockTwits.
They started off with a low dividend in 2011 of less than 1% and only semi-annually. They increased it by 150% in 2012and also increased payments to quarterly. They then did another increase in 2012 of 140%. Since then the dividend has not changed. The current dividend yield is 5.14%.
The Dividend Payout Ratios for 2012 was fine at 58% for EPS and 43% for CFPS. However, analysts expect both Earnings and Cash Flow to drop this year. This is borne out by the second quarterly report. They had a positive cash flow for the second quarter, but there was an earnings loss. This is probably why the dividend has remained flat in 2013.
So far investors have had a great run with 5 year total return at 39.77% with 1.55% from dividends and 38.66% from capital gains. The 6 year total return is not a good with the return at 15.87% with 1.04% from dividends and 14.83% from capital gains.
The outstanding shares have increased by 22.8% per year over the past 5 years and 20.37% per year over the past 8 years. The shares have increased mostly because of new share issues, but there is some increase from stock options.
Revenues have increased by 49% and 44% per year over the past 5 and 7 years. Revenue per Share has increased by 21% and 20% per year over the past 5 and 7 years. Earnings per Share have been volatile as there are some years with negative earnings. EPS is up by 44% per year over the past 6 years, but a lower 11% per year over the past 7 years.
Cash Flow has been similarly volatile with Cash Flow per Share up by 34% per year over the past 5 years and a lower 9.5% per year over the past 7 years. The financial year 5 years ago was not a good year. This company was started in 2004 and went public in 2006 on the TSX.
The Return on Equity was not very good until 2010. The ROE for 2012 was 16.1%. For this company the net income and the comprehensive income is the same.
The Liquidity Ratio has had some volatility, but it has been good since 2009 and the current Liquidity Ratio is 1.91. The current Debt Ratio is very high at 6.41, although this ratio has had some volatility also. The Leverage and Debt/Equity Ratios have always been quite good and they are currently quite low at 1.00 and 0.16 respectively.
There is not a lot of history to go on for this firm and it is into hydraulic fracturing, so it is rather risky. However, if you can take the risk, you might be able to make decent money here. Another good point is the lack of debt. See my spreadsheet at frc.htm.
This is the first of two parts. Second part will be posted on Friday, September 27, 2013 and will be here.
Canyon Services Group Inc. is a fast-growing company providing hydraulic fracturing and other well-stimulation services, including coiled tubing, acidizing, cementing, nitrogen and CO², to oil and natural gas producers developing a variety of play types across Western Canada. Its web site is here Canyon Services Group.
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 or StockTwits.
Wednesday, September 25, 2013
Canadian Utilities Ltd 2
On my other blog I am today writing about my use of analysts' estimates...continue...
I do not own this stock Canadian Utilities Ltd (TSX-CU, OTC-CDUAF). This stock is on the Dividend Achievers list, the Dividend Aristocrats list and was also on Mike Higgs' dividend growth list.
When I look at insider trading, I find $5.6M of insider selling and $5.4M of net insider selling. There is a minimal amount of insider buying. Most of the selling is by the CEO at $4.9M. The CEO has shares worth $14.2M and has options with the potential value of $40.8M. (This is because most options given by this company have an attached stock price.) She also has shares in ATCO. An officer has Class A shares worth 54.6M and Class B shares worth 20.8M and no options. Both these executives are of the Southern family that also controls ATCO. ATCO controls this company
The CFO has shares worth $1.7M and has options worth 3.9M. An officer has shares worth $0.4M and has options worth $0.4M. A director has shares worth $0.2M and has no options. This is just to give you an idea on insider share ownership and option values. (Note that there are two classes of share with Class A (TSX-CU) being non-voting shares and Class B (TSX-CU.X) being voting shares.)
The 5 year low, median and high median Price/Earnings per Share Ratios are 12.25, 14.02 and 18.83. The current P/E Ratio is 16.07 based on 2013 EPS of $2.19 and stock price of $35.20. This tests shows that the stock price is relatively reasonable, but toward to higher end of reasonable.
I get a Graham Price of $26.47. The 10 year median Price/Graham Price Ratios are 0.99, 1.17 and 1.34. The current P/GP Ratio is 1.33. This stock test puts the current stock price of $35.20 within the reasonable range, but just.
I get a 10 year Price/Book Value per Share Ratio of 2.20 and a current P/B Ratio of 2.48 a value some 13% higher. This put the stock price of $35.20 within the reasonable range. I get a 5 year median dividend yield of 3.12% and a current dividend yield of 2.76% which is 12% lower. This put the stock price of $35.20 within the reasonable range.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. The consensus recommendation would be a Buy. The 12 month consensus stock price is $41.00. This implies a total return of 19.23% with 2.76% from dividends and 16.48% from capital gains.
The blogger Dividend Tactics gives this stock a recent good review. The blogger iPolitics gives a positive review of the second quarter for this stock. Also earlier this year, the blogger Pat McKeough gives both this stock and ATCO positive reviews.
Some analysts feel that the stock price is a bit too high and one analyst said that it is not good that the dividend yield is below 3%. However, a number still like this stock as a buy. I think that that the price is a big high, but it is not yet in the overpriced category. I think that the dividend yield is a bit too low. See my spreadsheet at cu.htm.
This is the second of two parts. The first part was posted on Tuesday, September 24, 2013 and is available here.
Canadian Utilities Limited operates in four business segments: regulated natural gas operations; regulated electric operations; technologies; and power generation. These operations provide service to industrial, residential and commercial customers. Other businesses consist of natural gas gathering, processing, storage and natural gas supply management and technical facilities management. Its web site is here Canadian Utilities.
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 or StockTwits.
I do not own this stock Canadian Utilities Ltd (TSX-CU, OTC-CDUAF). This stock is on the Dividend Achievers list, the Dividend Aristocrats list and was also on Mike Higgs' dividend growth list.
When I look at insider trading, I find $5.6M of insider selling and $5.4M of net insider selling. There is a minimal amount of insider buying. Most of the selling is by the CEO at $4.9M. The CEO has shares worth $14.2M and has options with the potential value of $40.8M. (This is because most options given by this company have an attached stock price.) She also has shares in ATCO. An officer has Class A shares worth 54.6M and Class B shares worth 20.8M and no options. Both these executives are of the Southern family that also controls ATCO. ATCO controls this company
The CFO has shares worth $1.7M and has options worth 3.9M. An officer has shares worth $0.4M and has options worth $0.4M. A director has shares worth $0.2M and has no options. This is just to give you an idea on insider share ownership and option values. (Note that there are two classes of share with Class A (TSX-CU) being non-voting shares and Class B (TSX-CU.X) being voting shares.)
The 5 year low, median and high median Price/Earnings per Share Ratios are 12.25, 14.02 and 18.83. The current P/E Ratio is 16.07 based on 2013 EPS of $2.19 and stock price of $35.20. This tests shows that the stock price is relatively reasonable, but toward to higher end of reasonable.
I get a Graham Price of $26.47. The 10 year median Price/Graham Price Ratios are 0.99, 1.17 and 1.34. The current P/GP Ratio is 1.33. This stock test puts the current stock price of $35.20 within the reasonable range, but just.
I get a 10 year Price/Book Value per Share Ratio of 2.20 and a current P/B Ratio of 2.48 a value some 13% higher. This put the stock price of $35.20 within the reasonable range. I get a 5 year median dividend yield of 3.12% and a current dividend yield of 2.76% which is 12% lower. This put the stock price of $35.20 within the reasonable range.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. The consensus recommendation would be a Buy. The 12 month consensus stock price is $41.00. This implies a total return of 19.23% with 2.76% from dividends and 16.48% from capital gains.
The blogger Dividend Tactics gives this stock a recent good review. The blogger iPolitics gives a positive review of the second quarter for this stock. Also earlier this year, the blogger Pat McKeough gives both this stock and ATCO positive reviews.
Some analysts feel that the stock price is a bit too high and one analyst said that it is not good that the dividend yield is below 3%. However, a number still like this stock as a buy. I think that that the price is a big high, but it is not yet in the overpriced category. I think that the dividend yield is a bit too low. See my spreadsheet at cu.htm.
This is the second of two parts. The first part was posted on Tuesday, September 24, 2013 and is available here.
Canadian Utilities Limited operates in four business segments: regulated natural gas operations; regulated electric operations; technologies; and power generation. These operations provide service to industrial, residential and commercial customers. Other businesses consist of natural gas gathering, processing, storage and natural gas supply management and technical facilities management. Its web site is here Canadian Utilities.
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 or StockTwits.
Tuesday, September 24, 2013
Canadian Utilities Ltd
I do not own this stock Canadian Utilities Ltd (TSX-CU, OTC-CDUAF). This stock is on the Dividend Achievers list, the Dividend Aristocrats list and was also on Mike Higgs’ dividend growth list.
The current dividend is 2.76% on a stock price of $35.20. The 5 year median and 10 year median dividend yields are 3.12% and 3.01%. So the dividend is moderate as is the dividend increases. The growth in dividends over the past 5 and 10 years is at 7.2% and 6.1% per year. The most recent increase is 9.5% which occurred in 2013.
One way of looking at dividend stock is to see what you will be earning on your original purchases price in 10, 15 or 20 years. This can be important if you are building a dividend stock portfolio for your future. On this stock, you can probably count on around 7.5% or a 10% return on your original investment after 15 or 20 years.
The total return on this has been quite good over the past 5 and 10 years, with total return to the end of 2012 of 11.92% and 14.13% over these periods. The dividend portion of this return is at 2.75% and 3.25% per year over these periods and the capital gain portion of this year is at 9.17% and 10.88% per year over these periods.
The number of outstanding shares has not grown over the past 5 and 10 years. Shares have increased due to Stock Options and Share Issues and shares have decreased due to Buy Backs. Over the past 5 and 10 years revenue has not done much, but there is decent growth in earnings and better growth in cash flow.
There is no growth in revenue over the past 10 years. Revenue over the past 5 years looks to have growth because 5 years ago was not a good year. However, if you look at 5 year growth using the 5 year running averages, you are back to no growth.
The Liquidity Ratio has varied over time. It has generally been good, but not always. Utilities tend to have a lot of debt. The Liquidity Ratio for 2012 was just 1.20, but if you add in cash flow less dividends it is at 2.48. Utilities do tend to have rather steady cash flow. The Debt Ratio has also varied and the one for the year ending in 2012 was 1.48. The Leverage and Debt/Equity Ratios are fine for a utility at 3.07 and 2.07.
The Earnings per Share growth over the past 5 and 10 years is at 6% and 5.6% per year. The Cash Flow per Share growth over the past 5 and 10 years is 14.8% and 11.33% per year. For both of these per share values the 5 year running averages growth is not quite as good, but not far behind.
The Return on Equity is quite good with the ROE for 2012 at 13.3%. However, the ROE on comprehensive income for 2012 is quite a bit lower at 9.6% a 28% drop. The ROE on net income and comprehensive income does tend to vary with the ROE on comprehensive income usually being lower with a median difference of 5%. This could mean that the net income is not quite as good as it appears. It is just a warning.
This stock is a good utility stock. The one thing that investors may or may not see as a negative is that the stock on the TSX is for non-voting stocks. Most of the voting stock is owned by ATCO. You would not buy both this stock and ATCO for your portfolio. See my spreadsheet at cu.htm.
This is the first of two parts. Second part will be posted on Wednesday, September 25, 2013 and will be here.
Canadian Utilities Limited operates in four business segments: regulated natural gas operations; regulated electric operations; technologies; and power generation. These operations provide service to industrial, residential and commercial customers. Other businesses consist of natural gas gathering, processing, storage and natural gas supply management and technical facilities management. Its web site is here Canadian Utilities.
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 or StockTwits.
The current dividend is 2.76% on a stock price of $35.20. The 5 year median and 10 year median dividend yields are 3.12% and 3.01%. So the dividend is moderate as is the dividend increases. The growth in dividends over the past 5 and 10 years is at 7.2% and 6.1% per year. The most recent increase is 9.5% which occurred in 2013.
One way of looking at dividend stock is to see what you will be earning on your original purchases price in 10, 15 or 20 years. This can be important if you are building a dividend stock portfolio for your future. On this stock, you can probably count on around 7.5% or a 10% return on your original investment after 15 or 20 years.
The total return on this has been quite good over the past 5 and 10 years, with total return to the end of 2012 of 11.92% and 14.13% over these periods. The dividend portion of this return is at 2.75% and 3.25% per year over these periods and the capital gain portion of this year is at 9.17% and 10.88% per year over these periods.
The number of outstanding shares has not grown over the past 5 and 10 years. Shares have increased due to Stock Options and Share Issues and shares have decreased due to Buy Backs. Over the past 5 and 10 years revenue has not done much, but there is decent growth in earnings and better growth in cash flow.
There is no growth in revenue over the past 10 years. Revenue over the past 5 years looks to have growth because 5 years ago was not a good year. However, if you look at 5 year growth using the 5 year running averages, you are back to no growth.
The Liquidity Ratio has varied over time. It has generally been good, but not always. Utilities tend to have a lot of debt. The Liquidity Ratio for 2012 was just 1.20, but if you add in cash flow less dividends it is at 2.48. Utilities do tend to have rather steady cash flow. The Debt Ratio has also varied and the one for the year ending in 2012 was 1.48. The Leverage and Debt/Equity Ratios are fine for a utility at 3.07 and 2.07.
The Earnings per Share growth over the past 5 and 10 years is at 6% and 5.6% per year. The Cash Flow per Share growth over the past 5 and 10 years is 14.8% and 11.33% per year. For both of these per share values the 5 year running averages growth is not quite as good, but not far behind.
The Return on Equity is quite good with the ROE for 2012 at 13.3%. However, the ROE on comprehensive income for 2012 is quite a bit lower at 9.6% a 28% drop. The ROE on net income and comprehensive income does tend to vary with the ROE on comprehensive income usually being lower with a median difference of 5%. This could mean that the net income is not quite as good as it appears. It is just a warning.
This stock is a good utility stock. The one thing that investors may or may not see as a negative is that the stock on the TSX is for non-voting stocks. Most of the voting stock is owned by ATCO. You would not buy both this stock and ATCO for your portfolio. See my spreadsheet at cu.htm.
This is the first of two parts. Second part will be posted on Wednesday, September 25, 2013 and will be here.
Canadian Utilities Limited operates in four business segments: regulated natural gas operations; regulated electric operations; technologies; and power generation. These operations provide service to industrial, residential and commercial customers. Other businesses consist of natural gas gathering, processing, storage and natural gas supply management and technical facilities management. Its web site is here Canadian Utilities.
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 or StockTwits.
Monday, September 23, 2013
Linamar Corporation
On my other blog I am today writing about living well...continue...
I do not own this stock Linamar Corporation (TSX-LNR, OTC-LIMAF). This stock is not on any on the Dividend Achievers list, nor was it on Mike Higgs' list. I looked at this stock back in 2000 and it was not a stock I thought fit my investment philosophy. This stock used to be on the Investment Reporter's portfolio stock list as an average risk stock. However, it has been taken off this list. They do not seem to review this stock anymore, either.
If you look at the dividends, they are currently below 1%, but the 5 year median dividend yield is 1.7% and the 10 year median dividend yield is 1.6%. Dividends are increased but this does not occur often. For a low dividend, the dividends increases are very mediocre at 5.9% and 7.2% per year over the past 5 and 10 years.
With the low dividend yield comes a very good Dividend Payout Ratios, with the 5 year median DPR for Earnings per Share at 11.7% and for Cash Flow per Share at 6.2%. The DPRs for 2012 were at 5.9% and 6.2% for EPS and CFPS. The ones for 2013 are expected to be even lower.
The stock price of this company crashed in 2008 and the stock price is up some 58% per year since then. The dividend portion of this increase is at 3% per year. If you look at the 5 years to the end of 2012, you get a different picture with the stock only up 3.9% per year with dividend portion of this increase at1.6% per year.
If you look at this stocks performance over the past 20 years, you will see that it has gone up and down, but has not gotten anywhere over the long term. It hit the current peak it now has in 1998 and was almost there again in 2007. It would seem that the only way to play this stock is to buy at its lows and sell at its highs. It hits lows in recessions.
The Return on Equity has fluctuated in the past but is currently good at 13.3% for 2012 and would probably be around the same for 2013. The ROE on comprehensive income can vary quite a bit from that on net income, but the 5 year median difference is with the ROE on comprehensive income being just 1.8% lower.
The debt ratios have fluctuated in the past with the Liquidity Ratio at times being quite low, but the Debt Ratio has always been fine. The current Liquidity Ratio is quite good at 1.80. The current Debt Ratio is also very good at 1.84. The Leverage and Debt/Equity Ratios are fine (but not low) at 2.18 and 1.18 currently.
The G&M has a September 2013 positive article on this stock. There is another G&M September 2013 article on this stock saying it is liked because of current insider buying.
When I look at the analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. The consensus recommendation is a Buy. The 12 month consensus stock price is $38.60. This implies a total return of 15.39% with 0.95% from dividends and 14.44% from capital gains.
I must admit that a lot of analysts currently really like this stock and think that it is a good current buy. However, I very much disagree. Of, course it is not the fault of the company that investors rockets the price up. Past performance of this stock would suggest that it is a bad time to buy when the stock price shows such exuberance. I also do not think that this is not a buy and hold stock.
My two stock tests that do not use estimates show that the current stock price is relatively too high. The 5 year median dividend yield is 1.69% and the current yield of 0.95% is some 44% lower. The 10 year Price/Book Value per Share Ratio is 1.26 and the current P/B Ratio at 1.81 is some 44% higher. See my spreadsheet at hse.htm.
Linamar Corporation is a diversified global manufacturing company of highly engineered products. It is a world-class designer and diversified manufacturer of precision metallic components and systems for the automotive industry, and mobile industrial markets. Its web site is here Linamar.
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 or StockTwits.
I do not own this stock Linamar Corporation (TSX-LNR, OTC-LIMAF). This stock is not on any on the Dividend Achievers list, nor was it on Mike Higgs' list. I looked at this stock back in 2000 and it was not a stock I thought fit my investment philosophy. This stock used to be on the Investment Reporter's portfolio stock list as an average risk stock. However, it has been taken off this list. They do not seem to review this stock anymore, either.
If you look at the dividends, they are currently below 1%, but the 5 year median dividend yield is 1.7% and the 10 year median dividend yield is 1.6%. Dividends are increased but this does not occur often. For a low dividend, the dividends increases are very mediocre at 5.9% and 7.2% per year over the past 5 and 10 years.
With the low dividend yield comes a very good Dividend Payout Ratios, with the 5 year median DPR for Earnings per Share at 11.7% and for Cash Flow per Share at 6.2%. The DPRs for 2012 were at 5.9% and 6.2% for EPS and CFPS. The ones for 2013 are expected to be even lower.
The stock price of this company crashed in 2008 and the stock price is up some 58% per year since then. The dividend portion of this increase is at 3% per year. If you look at the 5 years to the end of 2012, you get a different picture with the stock only up 3.9% per year with dividend portion of this increase at1.6% per year.
If you look at this stocks performance over the past 20 years, you will see that it has gone up and down, but has not gotten anywhere over the long term. It hit the current peak it now has in 1998 and was almost there again in 2007. It would seem that the only way to play this stock is to buy at its lows and sell at its highs. It hits lows in recessions.
The Return on Equity has fluctuated in the past but is currently good at 13.3% for 2012 and would probably be around the same for 2013. The ROE on comprehensive income can vary quite a bit from that on net income, but the 5 year median difference is with the ROE on comprehensive income being just 1.8% lower.
The debt ratios have fluctuated in the past with the Liquidity Ratio at times being quite low, but the Debt Ratio has always been fine. The current Liquidity Ratio is quite good at 1.80. The current Debt Ratio is also very good at 1.84. The Leverage and Debt/Equity Ratios are fine (but not low) at 2.18 and 1.18 currently.
The G&M has a September 2013 positive article on this stock. There is another G&M September 2013 article on this stock saying it is liked because of current insider buying.
When I look at the analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. The consensus recommendation is a Buy. The 12 month consensus stock price is $38.60. This implies a total return of 15.39% with 0.95% from dividends and 14.44% from capital gains.
I must admit that a lot of analysts currently really like this stock and think that it is a good current buy. However, I very much disagree. Of, course it is not the fault of the company that investors rockets the price up. Past performance of this stock would suggest that it is a bad time to buy when the stock price shows such exuberance. I also do not think that this is not a buy and hold stock.
My two stock tests that do not use estimates show that the current stock price is relatively too high. The 5 year median dividend yield is 1.69% and the current yield of 0.95% is some 44% lower. The 10 year Price/Book Value per Share Ratio is 1.26 and the current P/B Ratio at 1.81 is some 44% higher. See my spreadsheet at hse.htm.
Linamar Corporation is a diversified global manufacturing company of highly engineered products. It is a world-class designer and diversified manufacturer of precision metallic components and systems for the automotive industry, and mobile industrial markets. Its web site is here Linamar.
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 or StockTwits.
Friday, September 20, 2013
K-Bro Linen Inc 2
On my other blog I am today writing about Good times and bad times...continue...
I do not own this stock K-Bro Linen Inc. (TSX-KBL, OTC-KBRLF). People were talking about this stock at the 2009 Toronto Money Show. It was also recommended by Aaron Dunn who is the Senior Equity Analyst for Keystone Publishing Corp, a publisher of Canadian investment newsletters.
When I look at insider trading, I find $1.4M of insider selling and $1.4M net insider selling. There is a tiny amount of insider buying. The CEO has shares worth $3.5M of common shares and has no options. The CFO has shares worth $0.2M and has no options. An officer has shares worth $0.2M and has no options. A director has a few shares and has no options. This is just to give you an idea on insider share ownership and option values.
The 5 year low, median and high median Price/Earnings per Share Ratios are 12.12, 15.67, and 18.84. The current P/E is 24.11. This is based on a stock price of $33.27 and 2013 EPS estimate of $1.38. This stock test suggests that the stock price is relatively high. Also, for this company I find that the median P/E ratios are rather high. You would expect the 5 year median low to be below 10.00.
I get a Graham Price of $17.58. The 10 year low, median and high median Price/Graham Price Ratios are 0.90, 1.05 and 1.20. The current P/GP Ratio is 1.89 based on a stock price $33.27. This stock price test suggests that the stock price is relatively high.
I get a 10 year median Price/Book Value per Share of 1.52. The current P/B Ratio is 3.34. This is some 20% higher and this stock test suggests that the stock price is relatively high. When I look at the 5 year median Price/Cash Flow per Share Ratio, I get one of 6.68. The current one is 12.95 a value some 93% higher. This stock price test suggests that the stock price is relatively high.
When I look at analysts' recommendations, I find Buy and Hold recommendations. The consensus recommendation is hold. The 12 month consensus stock price is $36.80. This implies a 12 month total return of 14.07% with 10.61% from capital gain and 3.46% from dividends.
There is an article in iPolitics about the company getting a new contract. I think that this is a good company. However, I feel that stock price is far too high to buy this stock at the present time. See my spreadsheet at kbl.htm.
This is the second of two parts. The first part was posted on Thursday, September 19, 2013 and is available here.
K-Bro is the largest owner and operator of laundry and linen processing facilities in Canada. K-Bro provides a comprehensive range of general linen and operating room linen processing, management and distribution services to healthcare institutions, hotels and other commercial accounts. K-Bro currently has seven processing plants in six Canadian cities: Quebec City, Toronto, Edmonton, Calgary, Vancouver and Victoria. Its web site is here K-Bro Linen.
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 or StockTwits.
I do not own this stock K-Bro Linen Inc. (TSX-KBL, OTC-KBRLF). People were talking about this stock at the 2009 Toronto Money Show. It was also recommended by Aaron Dunn who is the Senior Equity Analyst for Keystone Publishing Corp, a publisher of Canadian investment newsletters.
When I look at insider trading, I find $1.4M of insider selling and $1.4M net insider selling. There is a tiny amount of insider buying. The CEO has shares worth $3.5M of common shares and has no options. The CFO has shares worth $0.2M and has no options. An officer has shares worth $0.2M and has no options. A director has a few shares and has no options. This is just to give you an idea on insider share ownership and option values.
The 5 year low, median and high median Price/Earnings per Share Ratios are 12.12, 15.67, and 18.84. The current P/E is 24.11. This is based on a stock price of $33.27 and 2013 EPS estimate of $1.38. This stock test suggests that the stock price is relatively high. Also, for this company I find that the median P/E ratios are rather high. You would expect the 5 year median low to be below 10.00.
I get a Graham Price of $17.58. The 10 year low, median and high median Price/Graham Price Ratios are 0.90, 1.05 and 1.20. The current P/GP Ratio is 1.89 based on a stock price $33.27. This stock price test suggests that the stock price is relatively high.
I get a 10 year median Price/Book Value per Share of 1.52. The current P/B Ratio is 3.34. This is some 20% higher and this stock test suggests that the stock price is relatively high. When I look at the 5 year median Price/Cash Flow per Share Ratio, I get one of 6.68. The current one is 12.95 a value some 93% higher. This stock price test suggests that the stock price is relatively high.
When I look at analysts' recommendations, I find Buy and Hold recommendations. The consensus recommendation is hold. The 12 month consensus stock price is $36.80. This implies a 12 month total return of 14.07% with 10.61% from capital gain and 3.46% from dividends.
There is an article in iPolitics about the company getting a new contract. I think that this is a good company. However, I feel that stock price is far too high to buy this stock at the present time. See my spreadsheet at kbl.htm.
This is the second of two parts. The first part was posted on Thursday, September 19, 2013 and is available here.
K-Bro is the largest owner and operator of laundry and linen processing facilities in Canada. K-Bro provides a comprehensive range of general linen and operating room linen processing, management and distribution services to healthcare institutions, hotels and other commercial accounts. K-Bro currently has seven processing plants in six Canadian cities: Quebec City, Toronto, Edmonton, Calgary, Vancouver and Victoria. Its web site is here K-Bro Linen.
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 or StockTwits.
Thursday, September 19, 2013
K-Bro Linen Inc
I do not own this stock K-Bro Linen Inc. (TSX-KBL, OTC-KBRLF). People were talking about this stock at the 2009 Toronto Money Show. This was one of the income trust being touted as currently a good buys with a very good yield. It was also recommended by Aaron Dunn who is the Senior Equity Analyst for Keystone Publishing Corp, a publisher of Canadian investment newsletters.
This is another old income trust stock that still pays dividends monthly. This stock was listed in 2005. It has only had a couple of dividend increases and they were around 6.25% and 5.50%. The 5 and 7 year growth in dividends is only 1.6% and 0.9% per year. This is a negative because it is not at the rate of inflation. The dividend yield is decent at 3.5%.
The 5 year median Dividend Payout Ratio for earnings is at 104%. The DPR for this stock was above 100% for earnings when the stock was an income trust. This is quite normal for income trust stocks. The DPR for EPS has been coming down and the 2012 DPR for EPS was at 72%. The 5 year median DPR for cash flow per share is 49%. The one for 2012 was at 38%. (See my blog for information on Dividend Payout Ratios).
The outstanding shares have increased by 5% and 6.8% per year over the past 5 and 7 years. The outstanding shares have increased due to Share Issues and Stock Options. Except for growth in book value, growth under this company has generally been good.
Revenue is up by 11% and 14% per year over the past 5 and 7 years. Revenue per Share is up by 6% and 8% per year over the past 5 and 7 years. EPS is up by 16% and 12% per year over the past 5 and 7 years. Cash Flow per Share is up by 15% and 9% per year over the past 5 and 7 years. However over these periods Book Value per Share is up by less than 2% per year. It should be noted that income trust companies generally do not grow their book values.
The Return on Equity is good with the ROE for 2012 at 16.5% and the 5 year median ROE at 12.2%. The ROE on comprehensive income is almost the same as for net income.
The debt ratios are generally fine, but the Liquidity Ratio has varied and does not always get to the preferred value of 1.50. The 2012 Liquidity Ratio is just 1.31; however the current one is much better at 1.81. The Debt Ratio has always been strong and is currently at 3.04. The current Leverage and Debt/Equity Ratios are quite good at 1.49 and 0.49.
Current shareholders have done well as the total return on this stock is at 22.74% and 18.69% over the past 5 and 8 years. The dividend portion of these returns was at 6.31% and 6.72% with the capital gains was at 16.43% and 11.97%. On a go forward basis, the dividend portion of the returns will be lower. Before this switched from an income trust the dividend yield was in the 7% to 8% range, but it is much lower now at 3.5%.
This company has shown it can be a solid performer. However, since I prefer stocks that raise their dividends, at least to the rate of inflation, I would not currently buy this stock until it has shown an ability to raise their dividends. See my spreadsheet at kbl.htm.
This is the first of two parts. Second part will be posted on Friday, September 20, 2013 and will be here.
K-Bro is the largest owner and operator of laundry and linen processing facilities in Canada. K-Bro provides a comprehensive range of general linen and operating room linen processing, management and distribution services to healthcare institutions, hotels and other commercial accounts. K-Bro currently has seven processing plants in six Canadian cities: Quebec City, Toronto, Edmonton, Calgary, Vancouver and Victoria. Its web site is here K-Bro Linen.
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 or StockTwits.
This is another old income trust stock that still pays dividends monthly. This stock was listed in 2005. It has only had a couple of dividend increases and they were around 6.25% and 5.50%. The 5 and 7 year growth in dividends is only 1.6% and 0.9% per year. This is a negative because it is not at the rate of inflation. The dividend yield is decent at 3.5%.
The 5 year median Dividend Payout Ratio for earnings is at 104%. The DPR for this stock was above 100% for earnings when the stock was an income trust. This is quite normal for income trust stocks. The DPR for EPS has been coming down and the 2012 DPR for EPS was at 72%. The 5 year median DPR for cash flow per share is 49%. The one for 2012 was at 38%. (See my blog for information on Dividend Payout Ratios).
The outstanding shares have increased by 5% and 6.8% per year over the past 5 and 7 years. The outstanding shares have increased due to Share Issues and Stock Options. Except for growth in book value, growth under this company has generally been good.
Revenue is up by 11% and 14% per year over the past 5 and 7 years. Revenue per Share is up by 6% and 8% per year over the past 5 and 7 years. EPS is up by 16% and 12% per year over the past 5 and 7 years. Cash Flow per Share is up by 15% and 9% per year over the past 5 and 7 years. However over these periods Book Value per Share is up by less than 2% per year. It should be noted that income trust companies generally do not grow their book values.
The Return on Equity is good with the ROE for 2012 at 16.5% and the 5 year median ROE at 12.2%. The ROE on comprehensive income is almost the same as for net income.
The debt ratios are generally fine, but the Liquidity Ratio has varied and does not always get to the preferred value of 1.50. The 2012 Liquidity Ratio is just 1.31; however the current one is much better at 1.81. The Debt Ratio has always been strong and is currently at 3.04. The current Leverage and Debt/Equity Ratios are quite good at 1.49 and 0.49.
Current shareholders have done well as the total return on this stock is at 22.74% and 18.69% over the past 5 and 8 years. The dividend portion of these returns was at 6.31% and 6.72% with the capital gains was at 16.43% and 11.97%. On a go forward basis, the dividend portion of the returns will be lower. Before this switched from an income trust the dividend yield was in the 7% to 8% range, but it is much lower now at 3.5%.
This company has shown it can be a solid performer. However, since I prefer stocks that raise their dividends, at least to the rate of inflation, I would not currently buy this stock until it has shown an ability to raise their dividends. See my spreadsheet at kbl.htm.
This is the first of two parts. Second part will be posted on Friday, September 20, 2013 and will be here.
K-Bro is the largest owner and operator of laundry and linen processing facilities in Canada. K-Bro provides a comprehensive range of general linen and operating room linen processing, management and distribution services to healthcare institutions, hotels and other commercial accounts. K-Bro currently has seven processing plants in six Canadian cities: Quebec City, Toronto, Edmonton, Calgary, Vancouver and Victoria. Its web site is here K-Bro Linen.
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 or StockTwits.
Wednesday, September 18, 2013
HNZ Group Inc
On my other blog I am today writing about the Dividend Payout Ratios...continue...
I do not own this stock HNZ Group Inc. (TSX-HNZ.A, OTC-CDHPF). I read an article in 2011 in the Financial Post called "Screening for small-caps" by Richard Morrison. This is a stock he mentioned. This stock has come up in Daily Buy and Sell Advisor of MPL Communications. Also, the Dividend Ninja Blogger mentioned this stock in a blog entry talking about High Yield Canadian Stocks. This company used to be called Canadian Helicopters Group (TSX-CHL.A)
This company is another old income trust which converted at the end of 2010 to a corporation. They did not change the dividends at that time. They do not have much of a history of dividends and only one real dividend increase of 5% in 2007.
Dividend Payout Ratios are fine with the 5 year median DPR for EPS at 52% and for cash flow at 41%. The DPR for the 2012 financial year were even lower at 33% for EPS and 23% for cash flow.
Before converting from an income trust, dividend yield were in the 11 to 12% range. They have been declining since then and are currently at 4.9%. It was felt at the time when the government announced the changing tax rules for income trust that a combination of dividend decreases and stock price increases would put the yield for old income trust companies in the 4 to 5% range.
The company peaked in 2011 with Revenue, EPS, cash flow and stock price all declining since then. Since the company only because a stock company in 2005, I only have some 7 years data except for Revenue. Even with value falling, the last 5 years grow rates are good.
Revenues have grown at 12% per year, EPS at 10% per year, stock price at 10% per year and cash flow at 11% per year over the past 5 years. However, analysts expect most of these values to decline somewhat in 2013.
This company has good debt ratios, with the current Liquidity Ratio at 2.16 and the current Debt Ratio at 3.13. The current Leverage and Debt/Equity Ratios are also very good at 1.47 and 0.47.
This stock has always been quite cheap. The 5 year low, median and high median Price/Earnings per Share Ratios are 4.23, 6.30 and 7.94. (The P/E Ratio has seldom broken above 10.) The current P/E Ratio is 6.91 based on a stock price of $22.31 and EPS estimate of $3.23 for 2013.
I get at Graham Price of $37.10. The 10 year low, median and high median Price/Graham Price Ratios are 0.40, 0.52 and 0.66. (A P/GP Ratio of 1.00 or below is generally considered cheap.) The current P/GP Ratio is 0.60. The 10 year Price/Book Value per Share Ratio is 1.06 and the current P/B Ratio is 1.16 a value some 9% higher.
I cannot do a Dividend Yield stock test because the dividend yield has been declining because the company changed from an income trust to a corporation. However, all my other stock price tests say the stock price is relatively reasonable, although on the high end of reasonable.
When I look at insider trading, I find $2.1M of insider selling and no insider buying. Insiders seem to be cashing in stock options and also selling shares that they owned. That is insider ownership is dropping. This is not particularly inspiring if you are thinking about buying this stock.
When I look at the analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. The consensus recommendation would be a Buy. The 12 month consensus stock price is $26.30 and this implies a total return of 22.83% with 4.94% from dividends and 17.88% from capital gains.
The Petty Cash blogger has a good recent review of this company. He gives the company a pass at present because of high customer concentration. They also supply military support in Afghanistan. There are recent post on Canadian Money Forum about this company.
Loss of large customers could be a blow to this company. They also are giving the military support in Afghanistan and the war (or at least the west's part in this war) is winding down. I agree with Dean of Petty Cash. It might be wise to sit on the sidelines and see what happens. See my spreadsheet at hnz.htm.
HNZ Group Inc. is an international provider of helicopter transportation and related support services with fixed primary operations in Canada, Australia, New Zealand and regions of Southeast Asia. The group also delivers contracted on demand support in Afghanistan and Antarctica. Its web site is here HNZ Group.
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 or StockTwits.
I do not own this stock HNZ Group Inc. (TSX-HNZ.A, OTC-CDHPF). I read an article in 2011 in the Financial Post called "Screening for small-caps" by Richard Morrison. This is a stock he mentioned. This stock has come up in Daily Buy and Sell Advisor of MPL Communications. Also, the Dividend Ninja Blogger mentioned this stock in a blog entry talking about High Yield Canadian Stocks. This company used to be called Canadian Helicopters Group (TSX-CHL.A)
This company is another old income trust which converted at the end of 2010 to a corporation. They did not change the dividends at that time. They do not have much of a history of dividends and only one real dividend increase of 5% in 2007.
Dividend Payout Ratios are fine with the 5 year median DPR for EPS at 52% and for cash flow at 41%. The DPR for the 2012 financial year were even lower at 33% for EPS and 23% for cash flow.
Before converting from an income trust, dividend yield were in the 11 to 12% range. They have been declining since then and are currently at 4.9%. It was felt at the time when the government announced the changing tax rules for income trust that a combination of dividend decreases and stock price increases would put the yield for old income trust companies in the 4 to 5% range.
The company peaked in 2011 with Revenue, EPS, cash flow and stock price all declining since then. Since the company only because a stock company in 2005, I only have some 7 years data except for Revenue. Even with value falling, the last 5 years grow rates are good.
Revenues have grown at 12% per year, EPS at 10% per year, stock price at 10% per year and cash flow at 11% per year over the past 5 years. However, analysts expect most of these values to decline somewhat in 2013.
This company has good debt ratios, with the current Liquidity Ratio at 2.16 and the current Debt Ratio at 3.13. The current Leverage and Debt/Equity Ratios are also very good at 1.47 and 0.47.
This stock has always been quite cheap. The 5 year low, median and high median Price/Earnings per Share Ratios are 4.23, 6.30 and 7.94. (The P/E Ratio has seldom broken above 10.) The current P/E Ratio is 6.91 based on a stock price of $22.31 and EPS estimate of $3.23 for 2013.
I get at Graham Price of $37.10. The 10 year low, median and high median Price/Graham Price Ratios are 0.40, 0.52 and 0.66. (A P/GP Ratio of 1.00 or below is generally considered cheap.) The current P/GP Ratio is 0.60. The 10 year Price/Book Value per Share Ratio is 1.06 and the current P/B Ratio is 1.16 a value some 9% higher.
I cannot do a Dividend Yield stock test because the dividend yield has been declining because the company changed from an income trust to a corporation. However, all my other stock price tests say the stock price is relatively reasonable, although on the high end of reasonable.
When I look at insider trading, I find $2.1M of insider selling and no insider buying. Insiders seem to be cashing in stock options and also selling shares that they owned. That is insider ownership is dropping. This is not particularly inspiring if you are thinking about buying this stock.
When I look at the analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. The consensus recommendation would be a Buy. The 12 month consensus stock price is $26.30 and this implies a total return of 22.83% with 4.94% from dividends and 17.88% from capital gains.
The Petty Cash blogger has a good recent review of this company. He gives the company a pass at present because of high customer concentration. They also supply military support in Afghanistan. There are recent post on Canadian Money Forum about this company.
Loss of large customers could be a blow to this company. They also are giving the military support in Afghanistan and the war (or at least the west's part in this war) is winding down. I agree with Dean of Petty Cash. It might be wise to sit on the sidelines and see what happens. See my spreadsheet at hnz.htm.
HNZ Group Inc. is an international provider of helicopter transportation and related support services with fixed primary operations in Canada, Australia, New Zealand and regions of Southeast Asia. The group also delivers contracted on demand support in Afghanistan and Antarctica. Its web site is here HNZ Group.
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 or StockTwits.
Tuesday, September 17, 2013
Reitmans (Canada) Ltd 2
On my other blog I am today writing about my friend's art show called Transformations 2013 ...continue...
I do not own this stock Reitmans (Canada) Ltd. (TSX-RET.A, OTC-RTMAF), but I just bought some. See my comments below. I am following this stock as it was a stock on Mike Higgs' dividend growth stocks list.
When I look at insider trading, I find a very small amount of insider buying and no insider selling. The bit of insider buying seems to be insiders retaining stock options. There are two kinds of shares, common shares that are voting shares and Class A shares that are non-voting shares. Insiders own 83% of the common shares.
The CEO has shares worth $17.9M of common shares and $11.5M of Class A shares and has options worth $0.8M. The CFO has shares worth $0.3M and has options worth $0.6M. An officer has no shares and has options worth $06M. Another officer has shares worth $17.9M of common shares and $8.3M of Class A shares and has options worth $08M.A director has no shares and has options worth $0.4M. This is just to give you an idea on insider share ownership and option values.
The common shares are owned by the Reitman family under Reitmans and by Sherlex Investments Inc., which is also run by the Reitman family.
The 5 year low, median and high median Price/Earnings per Share Ratios are 11.33, 12.97 and 15.67. The current P/E Ratio is 17.78 based on a stock price of $8.00 and 2013 earnings of $0.45. It would seem that the ratio is saying that the stock is expensive. However, earnings have been dropping.
I get a Graham Price of $8.27. The current stock price of $8.00 has a Price/Graham Price Ratio of 0.97. The 10 year low, median and high median P/GP Ratios are 0.98, 1.20 and 1.46. This test says that the stock price is relatively cheap. A P/GP Ratio below 1.00 says the same thing.
The 10 year Price/Book Value per Share Ratio is 2.33. The current P/B Ratio is 1.18 on an $8.00 stock price. The current P/B Ratio is just 51% of the 10 year P/B Ratio. This test says the stock is relatively cheap.
The 5 year median dividend yield is 5.24% and the current dividend yield is 10%. The 10 year median dividend yield is even lower than the 5 at 3.9%. This test says that the stock is relatively cheap.
Unlike Le Chateau, there are still analysts that are following this stock. There are 3 analysts with recommendations and all the recommendations are a Hold. The consensus recommendation would be a Hold. The 12 month consensus stock price is $12.00. This implies a 12 month total return of 60%, with 50% from capital gains and 10% from dividends. Frankly, I do not believe this.
On the other hand you should buy stocks when they are cheap. So, I have just bought some 500 shares of this company today at $7.97. Personally, I think that if they do not make any money soon, they will cut the dividends.
You can find a review of the second quarter 2013 in Montreal Gazette. The blog Ticker Reporter mentions some recent downgrades of this stock by some analysts.
See my spreadsheet at ret.htm.
This is the second of two parts. The first part was posted on Monday, September 17, 2013 and is available here.
Reitmans (Canada) Limited operates a network of clothing stores specializing in women's & men's fashions and accessories. The company operates stores under the names Reitmans, Smart Set, Pennington Superstores, RW & Co., Thyme Maternity, Addition-Elle, and Cassis. Its web site is here Reitmans.
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 or StockTwits.
I do not own this stock Reitmans (Canada) Ltd. (TSX-RET.A, OTC-RTMAF), but I just bought some. See my comments below. I am following this stock as it was a stock on Mike Higgs' dividend growth stocks list.
When I look at insider trading, I find a very small amount of insider buying and no insider selling. The bit of insider buying seems to be insiders retaining stock options. There are two kinds of shares, common shares that are voting shares and Class A shares that are non-voting shares. Insiders own 83% of the common shares.
The CEO has shares worth $17.9M of common shares and $11.5M of Class A shares and has options worth $0.8M. The CFO has shares worth $0.3M and has options worth $0.6M. An officer has no shares and has options worth $06M. Another officer has shares worth $17.9M of common shares and $8.3M of Class A shares and has options worth $08M.A director has no shares and has options worth $0.4M. This is just to give you an idea on insider share ownership and option values.
The common shares are owned by the Reitman family under Reitmans and by Sherlex Investments Inc., which is also run by the Reitman family.
The 5 year low, median and high median Price/Earnings per Share Ratios are 11.33, 12.97 and 15.67. The current P/E Ratio is 17.78 based on a stock price of $8.00 and 2013 earnings of $0.45. It would seem that the ratio is saying that the stock is expensive. However, earnings have been dropping.
I get a Graham Price of $8.27. The current stock price of $8.00 has a Price/Graham Price Ratio of 0.97. The 10 year low, median and high median P/GP Ratios are 0.98, 1.20 and 1.46. This test says that the stock price is relatively cheap. A P/GP Ratio below 1.00 says the same thing.
The 10 year Price/Book Value per Share Ratio is 2.33. The current P/B Ratio is 1.18 on an $8.00 stock price. The current P/B Ratio is just 51% of the 10 year P/B Ratio. This test says the stock is relatively cheap.
The 5 year median dividend yield is 5.24% and the current dividend yield is 10%. The 10 year median dividend yield is even lower than the 5 at 3.9%. This test says that the stock is relatively cheap.
Unlike Le Chateau, there are still analysts that are following this stock. There are 3 analysts with recommendations and all the recommendations are a Hold. The consensus recommendation would be a Hold. The 12 month consensus stock price is $12.00. This implies a 12 month total return of 60%, with 50% from capital gains and 10% from dividends. Frankly, I do not believe this.
On the other hand you should buy stocks when they are cheap. So, I have just bought some 500 shares of this company today at $7.97. Personally, I think that if they do not make any money soon, they will cut the dividends.
You can find a review of the second quarter 2013 in Montreal Gazette. The blog Ticker Reporter mentions some recent downgrades of this stock by some analysts.
See my spreadsheet at ret.htm.
This is the second of two parts. The first part was posted on Monday, September 17, 2013 and is available here.
Reitmans (Canada) Limited operates a network of clothing stores specializing in women's & men's fashions and accessories. The company operates stores under the names Reitmans, Smart Set, Pennington Superstores, RW & Co., Thyme Maternity, Addition-Elle, and Cassis. Its web site is here Reitmans.
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 or StockTwits.
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