I own this stock of Hammond Power Solutions Inc. (TSX-HPS.A, OTC-HMDPF). I bought this stock as my main purchase for the TFSA in 2013 and 2014. I picked Hammond initially in 2013 as my main buy because it has good growth and reasonable dividend.
The company became a public company in 2001 and they started to pay a dividend in 2009. Over the past 4 years dividends have gone up by 18.9% per year. The company also paid a special dividend in 2013.
If you look at the Dividend Payout Ratio for the last 5 years, it is at 16.7% for EPS and 10.9% for CFPS. However, DPRs are increasing and the ones for 2013 they are 58% for EPS and 37% for CFPS.
Currently, this stock is performing well. I have a total return of 12.05% per year with 9.75% per year from capital gains and2.32% per year from dividends. The 5 and 10 year total return on this stock is at 2.14% and 25.93% per year. The portion of this return attributable to capital gain is a loss of 0.2% per year over the past 5 years and a gain of 23.65% per year over the past 10 years. The portion of this return attributable to dividends is at 2.16% and 2.28% per year over the past 5 and 10 years.
The outstanding shares have not increased over the past 5 and 10 years. Shares have increased due to stock options and decreased due to Buy Backs. The 2013 financial year was not a good one for this company. Revenue growth has been good over the past 5 and 8 years, but Earnings are down over the past 5 years and cash flow is ok, but not great over the past 5 years.
Revenue has increase by 9.4% and 12.6% per year over the past 5 and 8 years using the 5 year running average. Growth over the past 5 years does not look good at just 1.5% but exactly 5 years ago was a very good year. The growth over the past 10 years is at 12.3% per year.
The EPS is down by 2.2% and up by 36.6% per year over the past 5 and 8 years using the 5 year running averages. Exactly 5 years ago was a very good year and EPS growth is down by 23% per year. Over the past 9 years EPS has grown at 16.7% per year. I cannot get a 10 year growth rate as the company had a loss in EPS exactly 10 years ago.
CPFS is up by 4.5% and 21.5% per year over the past 5 and 8 years using the 5 year running average. Here again exactly 5 years ago was a very good year and CFPS is down by 16.3% per year over the past 5 years. CFPS is up by 18.7% per year over the past 10 years.
The Return on Equity has been all over the place. It has been below 10% twice over the past 5 years. The ROE for 2013 is at 5.6%. The ROE on comprehensive income is better at 8.4%.
The debt ratios are good on this stock. The Liquidity Ratio is 1.56. The Debt Ratio is very good at 2.40. The Leverage and Debt/Equity Ratios are also good at 1.71 and 0.71.
The first quarter of 2014 has not been a good one for this company. Revenues, Earnings and Cash Flow are all down from the first quarter of 2013. However, the company seems confident as they have increased the dividends for 2014 by 20%. See my spreadsheet at hse.htm.
This is the first of two parts. The second part will be posted on Friday, June 13, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
Hammond Power Solutions Inc. is the largest manufacturer of dry-type transformers in North America. They engineer and manufacture a wide range of custom transformers that are exported globally in electrical equipment and systems. They support solid industries such as oil and gas, mining, steel, waste and water treatment, and wind power-generation. Its web site is here Hammond Power Solutions.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
Thursday, June 12, 2014
Wednesday, June 11, 2014
McCoy Global 2
On my other blog I am today writing about the next market crash continue...
I own this stock of McCoy Corp. (TSX-MCB, OTC-MCCRF). I decided to try out McCoy. They had just restored their dividend. I want to use it as a fuller stock in my TFSA account. For me a fuller stock is one that uses up bits of extra money in an account.
When I look at insider trading, I find insider selling at $3.1M and insider buying at $0.6M with net insider selling at $2.5M. Insider selling represents 1.4% of the outstanding shares and is higher than what you generally see. (Insider selling is usually represents less a 1% of outstanding shares, normally.)
Insiders not only have options but Rights DSU (Deferred Stock Units). There is some insider ownership with the CEO having shares worth around $2.6M, a director having shares worth $1.4M and the Chairman having shares worth $0.4M.
The 5 year low, median and high median Price/Earnings Ratios are 6.78, 8.52 and 10.20. These are low P/E Ratios and lower than the 10 year P/E Ratios which are 6.82, 14.13 and 19.66. The 2013 P/E Ratio low, median and high median ratios were 11.53, 12.93 and 16.43. These ratios include ones that are negative, because there were some years of no earnings.
The current P/E Ratio is 12.52. This is not a very high P/E Ratio, but it is higher than the 5 year median high, but not the 10 year median high. In fact it is lower than the 10 year median value. It would appear that perhaps the P/E Ratio of 12.52 is reasonable. This ratio is based on a stock price of $6.51 and 2014 EPS estimate of $0.52. On an absolute basis, the P/E Ratio is 12.52 is a reasonable one. For it to be cheap, the P/E Ratio would have to be below 10.
I get a Graham Price of $6.17. The 10 year low, median and high median Price/Graham Price Ratios are 0.54, 0.95 and 1.40. The current P/GP Ratio is 1.06. By this stock price measurement, the stock price is relatively reasonable. On an absolute basis, the P/GP Ratio of 1.06 is reasonable. To be cheap, the P/GP would have to be 1.00 or lower.
The 10 year Price/Book Value per Share is 1.53. The current P/B Ratio is 2.02, a value some 31% higher. By this stock price measurement, the stock price is relatively high. On an absolute basis, a P/B Ratio is 1.50 shows a stock to be cheap. The P/B Ratio of 2.02 is a reasonable one.
The 5 year median dividend yield is 2.34% and the current dividend yield at 3.07% is some 31% higher. The historical average dividend yield is 3.02% a value 2% lower than the current dividend yield of 3.07%. The historical median dividend yield is even lower at 1.93% and 60% lower than the current dividend yield of 3.07%. These tests show that the stock price could be considered to be relatively expensive to relatively cheap.
If you look at the Price/Sales Ratio, the 10 year P/S Ratio is 0.74 and the current P/S Ratio is 78% higher at 1.31. This test says the stock price is relatively expensive. On an absolute basis the P/S Ratio would have to be 1.00 or lower for the stock price to be cheap. The P/S Ratio of 1.31 is a reasonable one.
Looking at the Price/Cash Flow per Share Ratio, the 10 year median P/CF Ratio is 8.07 and the current one is 11% higher at 8.92. This test says that the price is relatively reasonable but in the higher end of the reasonableness range. On an absolute basis, the P/CF Ratio would have to be 5.00 or less for the stock to be cheap. The P/CF Ratio of 8.92 is a little high.
The analysts' recommendations are Strong Buy and Buy. The consensus is a Buy. The 12 month consensus stock price is $7.85 and this implies a total return of 23.66% with 3.07% from dividends and 20.58% from capital gains.
The Edmonton Journal reports that after some disappointing quarters net earnings improve in the first quarter of 2014 for McCoy. The site Watch List News says that Raymond James restated their Buy (or Outperform) rating for McCoy recently. There is a two minute YouTube video from McCoy.
On a number of measures, the stock price comes out looking rather reasonable. See my spreadsheet at mcb.htm.
This is the second of two parts. The first part was posted on Tuesday, June 10, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
McCoy provides innovative products and services to the global energy industry. McCoy's two segments, Energy Products & Services and Mobile Solutions, operate internationally through direct sales and distributors with its operations based out of the Western Canadian Sedimentary Basin and the US Gulf Coast. McCoy's corporate office is located in Edmonton, Alberta, Canada with offices in Alberta, British Columbia, Louisiana, and Texas. They are growing internationally. Its web site is here McCoy.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
I own this stock of McCoy Corp. (TSX-MCB, OTC-MCCRF). I decided to try out McCoy. They had just restored their dividend. I want to use it as a fuller stock in my TFSA account. For me a fuller stock is one that uses up bits of extra money in an account.
When I look at insider trading, I find insider selling at $3.1M and insider buying at $0.6M with net insider selling at $2.5M. Insider selling represents 1.4% of the outstanding shares and is higher than what you generally see. (Insider selling is usually represents less a 1% of outstanding shares, normally.)
Insiders not only have options but Rights DSU (Deferred Stock Units). There is some insider ownership with the CEO having shares worth around $2.6M, a director having shares worth $1.4M and the Chairman having shares worth $0.4M.
The 5 year low, median and high median Price/Earnings Ratios are 6.78, 8.52 and 10.20. These are low P/E Ratios and lower than the 10 year P/E Ratios which are 6.82, 14.13 and 19.66. The 2013 P/E Ratio low, median and high median ratios were 11.53, 12.93 and 16.43. These ratios include ones that are negative, because there were some years of no earnings.
The current P/E Ratio is 12.52. This is not a very high P/E Ratio, but it is higher than the 5 year median high, but not the 10 year median high. In fact it is lower than the 10 year median value. It would appear that perhaps the P/E Ratio of 12.52 is reasonable. This ratio is based on a stock price of $6.51 and 2014 EPS estimate of $0.52. On an absolute basis, the P/E Ratio is 12.52 is a reasonable one. For it to be cheap, the P/E Ratio would have to be below 10.
I get a Graham Price of $6.17. The 10 year low, median and high median Price/Graham Price Ratios are 0.54, 0.95 and 1.40. The current P/GP Ratio is 1.06. By this stock price measurement, the stock price is relatively reasonable. On an absolute basis, the P/GP Ratio of 1.06 is reasonable. To be cheap, the P/GP would have to be 1.00 or lower.
The 10 year Price/Book Value per Share is 1.53. The current P/B Ratio is 2.02, a value some 31% higher. By this stock price measurement, the stock price is relatively high. On an absolute basis, a P/B Ratio is 1.50 shows a stock to be cheap. The P/B Ratio of 2.02 is a reasonable one.
The 5 year median dividend yield is 2.34% and the current dividend yield at 3.07% is some 31% higher. The historical average dividend yield is 3.02% a value 2% lower than the current dividend yield of 3.07%. The historical median dividend yield is even lower at 1.93% and 60% lower than the current dividend yield of 3.07%. These tests show that the stock price could be considered to be relatively expensive to relatively cheap.
If you look at the Price/Sales Ratio, the 10 year P/S Ratio is 0.74 and the current P/S Ratio is 78% higher at 1.31. This test says the stock price is relatively expensive. On an absolute basis the P/S Ratio would have to be 1.00 or lower for the stock price to be cheap. The P/S Ratio of 1.31 is a reasonable one.
Looking at the Price/Cash Flow per Share Ratio, the 10 year median P/CF Ratio is 8.07 and the current one is 11% higher at 8.92. This test says that the price is relatively reasonable but in the higher end of the reasonableness range. On an absolute basis, the P/CF Ratio would have to be 5.00 or less for the stock to be cheap. The P/CF Ratio of 8.92 is a little high.
The analysts' recommendations are Strong Buy and Buy. The consensus is a Buy. The 12 month consensus stock price is $7.85 and this implies a total return of 23.66% with 3.07% from dividends and 20.58% from capital gains.
The Edmonton Journal reports that after some disappointing quarters net earnings improve in the first quarter of 2014 for McCoy. The site Watch List News says that Raymond James restated their Buy (or Outperform) rating for McCoy recently. There is a two minute YouTube video from McCoy.
On a number of measures, the stock price comes out looking rather reasonable. See my spreadsheet at mcb.htm.
This is the second of two parts. The first part was posted on Tuesday, June 10, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
McCoy provides innovative products and services to the global energy industry. McCoy's two segments, Energy Products & Services and Mobile Solutions, operate internationally through direct sales and distributors with its operations based out of the Western Canadian Sedimentary Basin and the US Gulf Coast. McCoy's corporate office is located in Edmonton, Alberta, Canada with offices in Alberta, British Columbia, Louisiana, and Texas. They are growing internationally. Its web site is here McCoy.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
Tuesday, June 10, 2014
McCoy Global
I own this stock of McCoy Corp. (TSX-MCB, OTC-MCCRF). I decided to try out McCoy. They had just restored their dividend. I want to use it as a fuller stock in my TFSA account. For me a fuller stock is one that uses up bits of extra money in an account.
This is a dividend growth stock. They have grown their dividends over the past 5 and 9 years at the rate of 10.8% and 39.5% per year. However, they had some problems in 2009 and cut their dividends for 5 quarters. I find this a wise decision on their part, however, when people rely on dividends for income, like I do, they often really do not like dividend cuts.
The company lost money in 2008 and 2009. This is why the dividend was cut. They have also not yet increased the dividends for 2014 and we are half way through the year. The Dividend Payout Ratios for 2013 were at 56% for EPS and 29% for CFPS. They are expected to be at 39% and 27% respectively in 2014. Some analysts do expect the company to raise the dividends in 2014.
My total return on this stock is at 18.84% per year with 15.17% per year from capital gains and $3.67% per year from dividends. Mine you I do not have much invested in this stock. The total return over the past 5 and 10 years is at 39.51% per year and 10.96% per year. The portion of this return attributable to capital gains is at 35.22% and 8.80% per year. The portion of this return attributable to dividends is at 4.29% and 2.15% per year.
The outstanding shares have increase by 0.6% and 4.6% per year over the past 5 and 10 years. The shares have increased due to Stock Options and have decreased due to Buy Backs. Revenue, Earnings and Cash flow growth has been better over the past 10 years than over the past 5 years.
Using 5 year running averages, the Revenue is up by 0% and 12.3% per year over the past 5 and 10 years. The Revenue per Share is down by 3.2% and up by 3.4% per year using 5 year running averages over the past 5 and 10 years.
Using 5 year running averages EPS is down by 1% and up by 13.7% per year over the past 5 and 8 years. There are problems in calculating growth in EPS as this company has had years of EPS losses.
Using 5 year running averages, the CFPS has increased by 1% and 12.1% per year over the past 5 and 8 years. Using 5 year running averages, Cash Flow has increased by 4.7% and 19% per year over the past 5 and 8 years.
The debt ratios on this stock are very good. The current Liquidity Ratio is 2.71. The Debt Ratio is 3.39. The Leverage and Debt/Equity Ratios are 1.42 and 42 respectively.
The Return on Equity for 2013 was at 11.4% in 2013. The ROE on comprehensive income was at 14% in 2013. It is a good think when the ROE on Comprehensive Income is at or above that on net income. It basically says that the EPS is of good quality.
I still think that this company will be a dividend growth company. See my spreadsheet at mcb.htm.
This is the first of two parts. The second part will be posted on Wednesday, June 11, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
McCoy provides innovative products and services to the global energy industry. McCoy's two segments, Energy Products & Services and Mobile Solutions, operate internationally through direct sales and distributors with its operations based out of the Western Canadian Sedimentary Basin and the US Gulf Coast. McCoy's corporate office is located in Edmonton, Alberta, Canada with offices in Alberta, British Columbia, Louisiana, and Texas. They are growing internationally. Its web site is here McCoy.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
This is a dividend growth stock. They have grown their dividends over the past 5 and 9 years at the rate of 10.8% and 39.5% per year. However, they had some problems in 2009 and cut their dividends for 5 quarters. I find this a wise decision on their part, however, when people rely on dividends for income, like I do, they often really do not like dividend cuts.
The company lost money in 2008 and 2009. This is why the dividend was cut. They have also not yet increased the dividends for 2014 and we are half way through the year. The Dividend Payout Ratios for 2013 were at 56% for EPS and 29% for CFPS. They are expected to be at 39% and 27% respectively in 2014. Some analysts do expect the company to raise the dividends in 2014.
My total return on this stock is at 18.84% per year with 15.17% per year from capital gains and $3.67% per year from dividends. Mine you I do not have much invested in this stock. The total return over the past 5 and 10 years is at 39.51% per year and 10.96% per year. The portion of this return attributable to capital gains is at 35.22% and 8.80% per year. The portion of this return attributable to dividends is at 4.29% and 2.15% per year.
The outstanding shares have increase by 0.6% and 4.6% per year over the past 5 and 10 years. The shares have increased due to Stock Options and have decreased due to Buy Backs. Revenue, Earnings and Cash flow growth has been better over the past 10 years than over the past 5 years.
Using 5 year running averages, the Revenue is up by 0% and 12.3% per year over the past 5 and 10 years. The Revenue per Share is down by 3.2% and up by 3.4% per year using 5 year running averages over the past 5 and 10 years.
Using 5 year running averages EPS is down by 1% and up by 13.7% per year over the past 5 and 8 years. There are problems in calculating growth in EPS as this company has had years of EPS losses.
Using 5 year running averages, the CFPS has increased by 1% and 12.1% per year over the past 5 and 8 years. Using 5 year running averages, Cash Flow has increased by 4.7% and 19% per year over the past 5 and 8 years.
The debt ratios on this stock are very good. The current Liquidity Ratio is 2.71. The Debt Ratio is 3.39. The Leverage and Debt/Equity Ratios are 1.42 and 42 respectively.
The Return on Equity for 2013 was at 11.4% in 2013. The ROE on comprehensive income was at 14% in 2013. It is a good think when the ROE on Comprehensive Income is at or above that on net income. It basically says that the EPS is of good quality.
I still think that this company will be a dividend growth company. See my spreadsheet at mcb.htm.
This is the first of two parts. The second part will be posted on Wednesday, June 11, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
McCoy provides innovative products and services to the global energy industry. McCoy's two segments, Energy Products & Services and Mobile Solutions, operate internationally through direct sales and distributors with its operations based out of the Western Canadian Sedimentary Basin and the US Gulf Coast. McCoy's corporate office is located in Edmonton, Alberta, Canada with offices in Alberta, British Columbia, Louisiana, and Texas. They are growing internationally. Its web site is here McCoy.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
Monday, June 9, 2014
WSP Global Inc. 2
On my other blog I am today writing about using analysts' estimates continue...
I own this stock of WSP Global Inc. (TSX-WSP, OTC-WSPOF). In Sept 2011 I rationalized my portfolio. I sold stocks that did not make it into my core and bought stocks that could of the same type. In this case selling Stantec and buying Genivar. In October 2011 I wanted to sell Enerflex because it is not a company I bought but a distribution from Toromont. I bought more Genivar, now called WSP Global.
When I look at insider trading, I find a bit of insider buying and no insider selling over the past 6 months. Insiders not only have stock options, but have option like vehicles called Performance Share Unit and Restricted Shares Units. There is some insider ownership with the CEO owning shares worth around $26.7M.
Both the Caisse de dépôt et placement du Québec and Canada Pension Plan Investment Board both own shares worth around $180B and about 19% of the outstanding shares.
The 5 year low, median and high median Price/Earnings Ratios are 14.32, 16.30 and 18.09. The current P/E Ratio is 21.99 based on a stock price of $38.92 and 2014 EPS estimate of $1.77. By this stock price test the stock price is relatively expensive. P/E Ratios seem to be moving higher on this stock.
I get a Graham price of $27.47. The 10 year low, median and high median Price/Graham price Ratios are 0.80, 1.07 and 1.29. The current P/GP Ratio is 1.42 based on a stock price of $38.92. By this stock price test the stock price is relatively very expensive.
The 7 year median Price/Book Value per Share Ratio is 1.68. The current P/B Ratio is 2.05 based on a stock price of $38.92 and current BVPS of $18.95. The current P/B Ratio is some 22% higher than the 7 year median P/B Ratio. By this stock price test the stock price is relatively expensive.
This stock is an old income company and therefore dividend yield would be lower as dividend yields tend to be lower when companies changed from an income trust to a corporation. Dividend yields on these stocks were expected to be between 4 and 5%. This company has a lower one at 3.85%.
The 7 year Price/Cash Flow per Share Ratio is 7.05. The current P/CF Ratio is 14.47 a values some 104% higher. This is based on CFPS 2014 estimate of $2.49 and a stock price of $38.92. By this stock price test the stock price is relatively very expensive.
The 7 year Price/Sales Ratio is 0.94. The current P/S Ratio is 1.02 a value just 9% higher. The P/S Ratio is based on Revenue per Share of $38.16 (Revenue of $2010.6M dividend current outstanding shares). By this stock price test the stock price is relatively reasonable, but towards the higher end of the reasonable range.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. The 12 month stock price target consensus is $40.40. This implies a total return of 7.66% with 3.80% from capital gains and 3.85% from dividends. This is rather a low expected total return.
This article in the Montreal Gazette talks about WSP Global stock price hitting a high point in April of this year because analysts put out some positive reviews of this company. An article in Stock House News on WSP Global talks about the good fourth quarter that this company has had. An article in Building talks about another acquisition in Australia by WSP Global.
My stock price testing shows mostly that the stock price is relatively expensive. I still think that this is a good company and will hopefully be a dividend growth company again. However, it would seem that now is not the time to buy more shares in this company. See my spreadsheet at wsp.htm.
This is the second of two parts. The first part was posted on Friday, June 6, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
WSP Global Inc. is an engineering services firm providing private and public-sector clients with a complete range of professional consulting services throughout all project phases, including planning, design, construction and maintenance. Mainly in Ontario and Quebec, but has some international exposure. Its web site is here WSP Global.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
I own this stock of WSP Global Inc. (TSX-WSP, OTC-WSPOF). In Sept 2011 I rationalized my portfolio. I sold stocks that did not make it into my core and bought stocks that could of the same type. In this case selling Stantec and buying Genivar. In October 2011 I wanted to sell Enerflex because it is not a company I bought but a distribution from Toromont. I bought more Genivar, now called WSP Global.
When I look at insider trading, I find a bit of insider buying and no insider selling over the past 6 months. Insiders not only have stock options, but have option like vehicles called Performance Share Unit and Restricted Shares Units. There is some insider ownership with the CEO owning shares worth around $26.7M.
Both the Caisse de dépôt et placement du Québec and Canada Pension Plan Investment Board both own shares worth around $180B and about 19% of the outstanding shares.
The 5 year low, median and high median Price/Earnings Ratios are 14.32, 16.30 and 18.09. The current P/E Ratio is 21.99 based on a stock price of $38.92 and 2014 EPS estimate of $1.77. By this stock price test the stock price is relatively expensive. P/E Ratios seem to be moving higher on this stock.
I get a Graham price of $27.47. The 10 year low, median and high median Price/Graham price Ratios are 0.80, 1.07 and 1.29. The current P/GP Ratio is 1.42 based on a stock price of $38.92. By this stock price test the stock price is relatively very expensive.
The 7 year median Price/Book Value per Share Ratio is 1.68. The current P/B Ratio is 2.05 based on a stock price of $38.92 and current BVPS of $18.95. The current P/B Ratio is some 22% higher than the 7 year median P/B Ratio. By this stock price test the stock price is relatively expensive.
This stock is an old income company and therefore dividend yield would be lower as dividend yields tend to be lower when companies changed from an income trust to a corporation. Dividend yields on these stocks were expected to be between 4 and 5%. This company has a lower one at 3.85%.
The 7 year Price/Cash Flow per Share Ratio is 7.05. The current P/CF Ratio is 14.47 a values some 104% higher. This is based on CFPS 2014 estimate of $2.49 and a stock price of $38.92. By this stock price test the stock price is relatively very expensive.
The 7 year Price/Sales Ratio is 0.94. The current P/S Ratio is 1.02 a value just 9% higher. The P/S Ratio is based on Revenue per Share of $38.16 (Revenue of $2010.6M dividend current outstanding shares). By this stock price test the stock price is relatively reasonable, but towards the higher end of the reasonable range.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. The 12 month stock price target consensus is $40.40. This implies a total return of 7.66% with 3.80% from capital gains and 3.85% from dividends. This is rather a low expected total return.
This article in the Montreal Gazette talks about WSP Global stock price hitting a high point in April of this year because analysts put out some positive reviews of this company. An article in Stock House News on WSP Global talks about the good fourth quarter that this company has had. An article in Building talks about another acquisition in Australia by WSP Global.
My stock price testing shows mostly that the stock price is relatively expensive. I still think that this is a good company and will hopefully be a dividend growth company again. However, it would seem that now is not the time to buy more shares in this company. See my spreadsheet at wsp.htm.
This is the second of two parts. The first part was posted on Friday, June 6, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
WSP Global Inc. is an engineering services firm providing private and public-sector clients with a complete range of professional consulting services throughout all project phases, including planning, design, construction and maintenance. Mainly in Ontario and Quebec, but has some international exposure. Its web site is here WSP Global.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
Friday, June 6, 2014
WSP Global Inc.
I own this stock of WSP Global Inc. (TSX-WSP, OTC-WSPOF). In Sept 2011 I rationalized my portfolio. I sold stocks that did not make it into my core and bought stocks that could of the same type. In this case selling Stantec and buying Genivar. In October 2011 I wanted to sell Enerflex because it is not a company I bought but a distribution from Toromont. I bought more Genivar, now called WSP Global.
This stock is another old income trust company that converted to a corporation. They did not decrease their dividends, but kept them level since 2009. Prior to that time dividends were increasing. The current dividend yield is 3.95%. Analysts do not see any dividend increases in the near future.
The Dividend Payout Ratios, especially for EPS are too high. The DPR for EPS in 2013 was 108.7%. Analysts expect this to be around 85% for 2014. The DPR for CFPS in 2013 was 63.4%. Analysts expect this to be around 55% in 2014.
As with other old income trust companies I have bought, I have done well on this stock. I have a total return of 26.53% per year on this stock with 20.42% per year from capital gains and 6.11% per year from dividends. The total return over the past 5 and 9 years is at 12.62% and 23.93% per year. The portion of this total return attributable to capital gains is at 7.55% and 16.30% per year over these periods. The portion of this total return attributable to dividends is at 5.07% and 7.63% per year over these periods.
Outstanding shares have increase by 30% and 25% per year over the past 5 and 7 years. Shares have increased due Share Issues and DRIP. Because shares are increasing so rapidly, the "per Share" values become very important. Revenue, Cash Flow and Earnings have all increased nicely. Revenue per Share has increased ok, but EPS and CFPS over the past 5 years is down.
Revenue has gone up 39% and 52% per year over the past 5 and 7 years. (Note that this company has only been on the stock exchange since 2006.) Revenue per Share is up by 7.2% and 21.3% per year over the past 5 and 7 years.
Net Income has increased by 22% and 41% per year over the past 5 and 7 years. EPS is down by 6.7% over the past 5 years and is up by 13.2% over the past 7 years. However, if you look at 5 year running averages over the past 3 years, EPS is up by 2.5% per year. Since the low in EPS in 2010, EPS has been increasing.
Cash flow is up by 14.4% and 32.6% per year over the past 5 and 7 years. CFPS is down by 11.8% and up by 6.1% per year over the past 5 and 7 years. If you look at the 5 year running average over the past 3 years, CFPS is down by 5.8% per year. CFPS hit bottom in 2012. It increased by 30% in 2013 and is expected to rise by almost 14% in 2014.
The Return on Equity Ratios are not that good. The ROE was only at 10% once since 2006. The ROE was at 7.2 in 2013 and has a 5 year median value of 7.7%. The ROE on comprehensive income was 10.4% in 2013 and this is a good sign. However, the 5 year median ROE on comprehensive income is also at just 7.7%.
The debt ratios are good. The Liquidity Ratio for 2013 is fine at 1.51 in 2013. The Debt Ratio is very good at 2.10 in 2013. The Leverage and Debt/Equity Ratios are good at 1.91 and 0.91 in 2013.
I have done very well with the old income trust companies that I did buy. I just wished I had bought more. This stock has also been good. The stock hit a low in 2012 and has been increasing since then. The stock price is up by 23% so far in 2014. This is a good sign. The stock price often takes off on stocks ahead of what is happening in a company.
I think that this stock will again be a dividend growth stock, but the company is wise to keep the dividends level until they can afford to raise them. I intend to hold on to my shares at this time. See my spreadsheet at wsp.htm.
This is the first of two parts. The second part will be posted on Monday, June 9, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
WSP Global Inc. is an engineering services firm providing private and public-sector clients with a complete range of professional consulting services throughout all project phases, including planning, design, construction and maintenance. Mainly in Ontario and Quebec, but has some international exposure. Its web site is here WSP Global.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
This stock is another old income trust company that converted to a corporation. They did not decrease their dividends, but kept them level since 2009. Prior to that time dividends were increasing. The current dividend yield is 3.95%. Analysts do not see any dividend increases in the near future.
The Dividend Payout Ratios, especially for EPS are too high. The DPR for EPS in 2013 was 108.7%. Analysts expect this to be around 85% for 2014. The DPR for CFPS in 2013 was 63.4%. Analysts expect this to be around 55% in 2014.
As with other old income trust companies I have bought, I have done well on this stock. I have a total return of 26.53% per year on this stock with 20.42% per year from capital gains and 6.11% per year from dividends. The total return over the past 5 and 9 years is at 12.62% and 23.93% per year. The portion of this total return attributable to capital gains is at 7.55% and 16.30% per year over these periods. The portion of this total return attributable to dividends is at 5.07% and 7.63% per year over these periods.
Outstanding shares have increase by 30% and 25% per year over the past 5 and 7 years. Shares have increased due Share Issues and DRIP. Because shares are increasing so rapidly, the "per Share" values become very important. Revenue, Cash Flow and Earnings have all increased nicely. Revenue per Share has increased ok, but EPS and CFPS over the past 5 years is down.
Revenue has gone up 39% and 52% per year over the past 5 and 7 years. (Note that this company has only been on the stock exchange since 2006.) Revenue per Share is up by 7.2% and 21.3% per year over the past 5 and 7 years.
Net Income has increased by 22% and 41% per year over the past 5 and 7 years. EPS is down by 6.7% over the past 5 years and is up by 13.2% over the past 7 years. However, if you look at 5 year running averages over the past 3 years, EPS is up by 2.5% per year. Since the low in EPS in 2010, EPS has been increasing.
Cash flow is up by 14.4% and 32.6% per year over the past 5 and 7 years. CFPS is down by 11.8% and up by 6.1% per year over the past 5 and 7 years. If you look at the 5 year running average over the past 3 years, CFPS is down by 5.8% per year. CFPS hit bottom in 2012. It increased by 30% in 2013 and is expected to rise by almost 14% in 2014.
The Return on Equity Ratios are not that good. The ROE was only at 10% once since 2006. The ROE was at 7.2 in 2013 and has a 5 year median value of 7.7%. The ROE on comprehensive income was 10.4% in 2013 and this is a good sign. However, the 5 year median ROE on comprehensive income is also at just 7.7%.
The debt ratios are good. The Liquidity Ratio for 2013 is fine at 1.51 in 2013. The Debt Ratio is very good at 2.10 in 2013. The Leverage and Debt/Equity Ratios are good at 1.91 and 0.91 in 2013.
I have done very well with the old income trust companies that I did buy. I just wished I had bought more. This stock has also been good. The stock hit a low in 2012 and has been increasing since then. The stock price is up by 23% so far in 2014. This is a good sign. The stock price often takes off on stocks ahead of what is happening in a company.
I think that this stock will again be a dividend growth stock, but the company is wise to keep the dividends level until they can afford to raise them. I intend to hold on to my shares at this time. See my spreadsheet at wsp.htm.
This is the first of two parts. The second part will be posted on Monday, June 9, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
WSP Global Inc. is an engineering services firm providing private and public-sector clients with a complete range of professional consulting services throughout all project phases, including planning, design, construction and maintenance. Mainly in Ontario and Quebec, but has some international exposure. Its web site is here WSP Global.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
Thursday, June 5, 2014
Ag Growth International 2
I own this stock of Ag Growth International (TSX-AFN, OTC-AGGZF). It was talked about at the Money Show of 2009. Its median yield in 2009 was 7.9%. It is on the Canadian Dividend Aristocrats. So I investigated this company. By 2011 when I bought this stock, I have been interested in AFN for some time. It has a high dividends but probably riskier than average.
When I look at insider trading, I find 1.8M of insider selling and $1.6M of net insider selling with a bit of insider buying. Insiders do not have stock options per se, but they have stock options type vehicles called Rights Long Term Incentive Plan, Rights Share Award Incentive Plan and Rights Deferred Compensation Plan.
In 2013 outstanding shares were increased by 65,000 shares for stock options. The book value of these shares was $2.5M and the value of this number of shares at the end of 2013 was $2.9M. The number of shares is less than 1% of the outstanding shares.
The 5 year low, median and high median Price/Earnings Ratios is 14.49, 21.29 and 25.65. The P/E Ratio is increasing as the 10 year values were 10.83, 16.00 and 21.17. The current P/E Ratio is 15.86 based on a stock price of $45.53 and 2014 EPS estimate of $2.87. This stock price test suggests that the stock price is relatively reasonable. On an absolute basis, 15.86 is a moderate P/E Ratio.
I get a Graham price of $32.83. The 10 year low, median and high median Price/Graham Price Ratios are 0.89, 1.43 and 1.87. The current P/GP Ratio is 1.39. This stock price test suggests that the stock price is relatively reasonable. On an absolute basis a P/GP Ratio of 1.39 is a moderate one. To be a good price, the P/GP Ratio would need to be 1.00 or lower.
The 10 year median Price/Book Value per Share Ratio is 2.23. The current P/B Ratio is 2.73 based on a current BVPS of $16.59 and a stock price of $45.53. This ratio is some 22% higher than the 10 year median P/B Ratio and suggests that the stock price is relatively expensive.
Since this is an old income trust stock and the dividend yield has probably become lower because it changed to a corporation. It was expected that the old income trusts would have dividend yields between 4 and 5% when they changed to corporations. The current dividend yield at 5.27% is a bit high, but the dividend yield for this stock has seldom been below 5%. I doubt I can make any proper judgments on this stock using dividend yield. But basically the higher the yield the better the stock price and 5.27% is a rather high yield.
If you look at Price/Cash Flow per Share Ratio, the 10 year median ratio is 11.02 (a high value). The current P/CF Ratio is 9.61 a value some 13% lower. The P/CF Ratio is based on a stock price of $54.53 and 2014 CFPS estimate of $4.74. This stock price test suggests that the stock price is relatively reasonable.
The 10 year Price/Sales per Share Ratio is 1.72 and the current P/S Ratio is 1.35 a value some 21% lower. This P/S Ratio is based on a stock price of $54.53 and 2014 Sales estimate of $424 (and Sales per Share of $33.62. This stock price test suggests that the stock price is relatively cheap.
My testing of the stock price is all over the place. The only one that is not based on estimates says the stock price is expensive. Most of the others say it is reasonable and in the bottom range of the reasonableness range.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. The 12 month consensus stock price is $50.70. This assumes a total return of 16.63% with 5.27% from dividends and 11.36% from capital gains.
The site of WKRB news and analysis talks about recent analysts' comments including TD Securities raising the 12 month Target price or $48 and keeping their Hold rating on this stock. (See my blog for information on analyst ratings .) The site Macr Axis has some interesting valuations on this company. At the site 2% Realty it talks about Cantor Fitzgerald's 7 stocks to own in Canada in 2014. This stock was included.
I can see why some analysts are rating this stock as a Hold. The stock price could be relatively high. This company is into agriculture, which is rather risky and it does business worldwide, including in the Ukraine. This could give you pause. See my spreadsheet at afn.htm.
This is the second of two parts. The first part was posted on Wednesday, June 04, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
Ag Growth is a leading North American manufacturer of portable grain handling equipment, consisting of augers, belt conveyors, grain drying, fencing, post-hole augers, and other ancillary grain handling accessories. This company has 1,400 dealers and distributors in Canada and the United States. Its web site is here Ag Growth.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
When I look at insider trading, I find 1.8M of insider selling and $1.6M of net insider selling with a bit of insider buying. Insiders do not have stock options per se, but they have stock options type vehicles called Rights Long Term Incentive Plan, Rights Share Award Incentive Plan and Rights Deferred Compensation Plan.
In 2013 outstanding shares were increased by 65,000 shares for stock options. The book value of these shares was $2.5M and the value of this number of shares at the end of 2013 was $2.9M. The number of shares is less than 1% of the outstanding shares.
The 5 year low, median and high median Price/Earnings Ratios is 14.49, 21.29 and 25.65. The P/E Ratio is increasing as the 10 year values were 10.83, 16.00 and 21.17. The current P/E Ratio is 15.86 based on a stock price of $45.53 and 2014 EPS estimate of $2.87. This stock price test suggests that the stock price is relatively reasonable. On an absolute basis, 15.86 is a moderate P/E Ratio.
I get a Graham price of $32.83. The 10 year low, median and high median Price/Graham Price Ratios are 0.89, 1.43 and 1.87. The current P/GP Ratio is 1.39. This stock price test suggests that the stock price is relatively reasonable. On an absolute basis a P/GP Ratio of 1.39 is a moderate one. To be a good price, the P/GP Ratio would need to be 1.00 or lower.
The 10 year median Price/Book Value per Share Ratio is 2.23. The current P/B Ratio is 2.73 based on a current BVPS of $16.59 and a stock price of $45.53. This ratio is some 22% higher than the 10 year median P/B Ratio and suggests that the stock price is relatively expensive.
Since this is an old income trust stock and the dividend yield has probably become lower because it changed to a corporation. It was expected that the old income trusts would have dividend yields between 4 and 5% when they changed to corporations. The current dividend yield at 5.27% is a bit high, but the dividend yield for this stock has seldom been below 5%. I doubt I can make any proper judgments on this stock using dividend yield. But basically the higher the yield the better the stock price and 5.27% is a rather high yield.
If you look at Price/Cash Flow per Share Ratio, the 10 year median ratio is 11.02 (a high value). The current P/CF Ratio is 9.61 a value some 13% lower. The P/CF Ratio is based on a stock price of $54.53 and 2014 CFPS estimate of $4.74. This stock price test suggests that the stock price is relatively reasonable.
The 10 year Price/Sales per Share Ratio is 1.72 and the current P/S Ratio is 1.35 a value some 21% lower. This P/S Ratio is based on a stock price of $54.53 and 2014 Sales estimate of $424 (and Sales per Share of $33.62. This stock price test suggests that the stock price is relatively cheap.
My testing of the stock price is all over the place. The only one that is not based on estimates says the stock price is expensive. Most of the others say it is reasonable and in the bottom range of the reasonableness range.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. The 12 month consensus stock price is $50.70. This assumes a total return of 16.63% with 5.27% from dividends and 11.36% from capital gains.
The site of WKRB news and analysis talks about recent analysts' comments including TD Securities raising the 12 month Target price or $48 and keeping their Hold rating on this stock. (See my blog for information on analyst ratings .) The site Macr Axis has some interesting valuations on this company. At the site 2% Realty it talks about Cantor Fitzgerald's 7 stocks to own in Canada in 2014. This stock was included.
I can see why some analysts are rating this stock as a Hold. The stock price could be relatively high. This company is into agriculture, which is rather risky and it does business worldwide, including in the Ukraine. This could give you pause. See my spreadsheet at afn.htm.
This is the second of two parts. The first part was posted on Wednesday, June 04, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
Ag Growth is a leading North American manufacturer of portable grain handling equipment, consisting of augers, belt conveyors, grain drying, fencing, post-hole augers, and other ancillary grain handling accessories. This company has 1,400 dealers and distributors in Canada and the United States. Its web site is here Ag Growth.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
Wednesday, June 4, 2014
Ag Growth International
On my other blog I am today writing about possible cheap dividend stocks to buy continue...
I own this stock of Ag Growth International (TSX-AFN, OTC-AGGZF). I wanted to review all the income trust stocks touted in the Money Show of 2009. There was a lot of talk at this show about some of the Unit Trust being currently good buys with very good yield. Its median yield in 2009 was 7.9%. It is on the Canadian Dividend Aristocrats and this is why I first investigated this company. By 2011 when I bought this stock, I have been interested in AFN for some time. It has a high dividends but probably riskier than average.
The current dividend yield is still quite high at 5.27%. Like a lot of old income trust companies, this company is having a hard time paying for the dividends that it could afford as an income trust. The dividends have not increased since 2012. I am hoping that this stock will again be a dividend growth stocks once it brings it DPR under control.
The Dividend Payout Ratios are too high. The DPR for EPS for 2013 was 137%. This is better than for 2012 when it was 175%. Analysts expect that DPR for EPS will fall to 83% in 2014. However, the first quarterly earnings were a disappointment.
The other thing about old income trusts was that the people at the money shows were right. There was good money to be made in old income trust stock. My total return on my investment in 2011 in this stock is at 17.8% per year with 10.96% per year from capital gains and 6.84% per year from dividends.
The total return from this stock over the past 5 and 10 years is at 11.56% and 24.02% per year. The portion of the total return attributable to capital gains is at 5.52% and 13.89% per year over these periods. The portion of the total return attributable to dividends is at 6.04% and 10.13% per year over these periods.
The outstanding shares have not increased over the past 5 years, but have increased by 3% per year over the past 9 years. Shares have increased due to Debenture Conversions, Stock Options and Share Issues. They have decreased due to Buy Backs.
Growth in Revenues, Earnings and Cash Flow is ok to good. Revenue has grown at 19.5% and 15.2% per year over the past 5 and 10 years using 5 year running averages. Since this company became a stock company in 2004, I just have a maximum 9 year in data except for revenue.
Over the past 5 years, EPS is up by 8.86% per year over the past 5 year using 5 year running averages. EPS is up by 4.58% over the past 10 years. CFPS is up by 11.9% per year over the past 5 years using 5 year running averages. CFPS is up by 15.5% per year over the past 9 years. For both EPS and CFPS the exact 5 year growth is lower and at 1.3% per year and 4.3% per year respectively.
Over the past 10 years Return on Equity was below 10% in two years. The ROE for 2013 was at 11.5% and the 5 year median ROE is at 16.1%. The ROE on comprehensive income is higher for 2013 at 15.1% and its 5 year ROE is at 15.1%.
The Liquidity Ratio has varied but it usually is quite good. Not so in 2013 when it was just 1.32. This was because convertible unsecured subordinated debentures issued in 2009 had come due. The Liquidity Ratio was back to being higher in the first quarter of 2014 at 2.43. The Debt Ratio has always been good was at 1.68 in 2013, but this is also lower than normal. It was 2.03 in the first quarter of 2014.
Leverage and Debt/Equity Ratio are unusually high 2013 also at 2.47 and 1.47 in 2013. These were also back to normal in the first quarter of 2014at1.97 and 0.97.
This stock is in agriculture, so it will be cyclical which means it has a higher than average risk level. Although some analysts rate it was a median risk. All depends on your point of view. Although I do not have a lot invested in this company, I intend to hold on to my shares. See my spreadsheet at afn.htm.
This is the first of two parts. The second part will be posted on Thursday, June 5, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
Ag Growth is a leading North American manufacturer of portable grain handling equipment, consisting of augers, belt conveyors, grain drying, fencing, post-hole augers, and other ancillary grain handling accessories. This company has 1,400 dealers and distributors in Canada and the United States. Its web site is here Ag Growth.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
I own this stock of Ag Growth International (TSX-AFN, OTC-AGGZF). I wanted to review all the income trust stocks touted in the Money Show of 2009. There was a lot of talk at this show about some of the Unit Trust being currently good buys with very good yield. Its median yield in 2009 was 7.9%. It is on the Canadian Dividend Aristocrats and this is why I first investigated this company. By 2011 when I bought this stock, I have been interested in AFN for some time. It has a high dividends but probably riskier than average.
The current dividend yield is still quite high at 5.27%. Like a lot of old income trust companies, this company is having a hard time paying for the dividends that it could afford as an income trust. The dividends have not increased since 2012. I am hoping that this stock will again be a dividend growth stocks once it brings it DPR under control.
The Dividend Payout Ratios are too high. The DPR for EPS for 2013 was 137%. This is better than for 2012 when it was 175%. Analysts expect that DPR for EPS will fall to 83% in 2014. However, the first quarterly earnings were a disappointment.
The other thing about old income trusts was that the people at the money shows were right. There was good money to be made in old income trust stock. My total return on my investment in 2011 in this stock is at 17.8% per year with 10.96% per year from capital gains and 6.84% per year from dividends.
The total return from this stock over the past 5 and 10 years is at 11.56% and 24.02% per year. The portion of the total return attributable to capital gains is at 5.52% and 13.89% per year over these periods. The portion of the total return attributable to dividends is at 6.04% and 10.13% per year over these periods.
The outstanding shares have not increased over the past 5 years, but have increased by 3% per year over the past 9 years. Shares have increased due to Debenture Conversions, Stock Options and Share Issues. They have decreased due to Buy Backs.
Growth in Revenues, Earnings and Cash Flow is ok to good. Revenue has grown at 19.5% and 15.2% per year over the past 5 and 10 years using 5 year running averages. Since this company became a stock company in 2004, I just have a maximum 9 year in data except for revenue.
Over the past 5 years, EPS is up by 8.86% per year over the past 5 year using 5 year running averages. EPS is up by 4.58% over the past 10 years. CFPS is up by 11.9% per year over the past 5 years using 5 year running averages. CFPS is up by 15.5% per year over the past 9 years. For both EPS and CFPS the exact 5 year growth is lower and at 1.3% per year and 4.3% per year respectively.
Over the past 10 years Return on Equity was below 10% in two years. The ROE for 2013 was at 11.5% and the 5 year median ROE is at 16.1%. The ROE on comprehensive income is higher for 2013 at 15.1% and its 5 year ROE is at 15.1%.
The Liquidity Ratio has varied but it usually is quite good. Not so in 2013 when it was just 1.32. This was because convertible unsecured subordinated debentures issued in 2009 had come due. The Liquidity Ratio was back to being higher in the first quarter of 2014 at 2.43. The Debt Ratio has always been good was at 1.68 in 2013, but this is also lower than normal. It was 2.03 in the first quarter of 2014.
Leverage and Debt/Equity Ratio are unusually high 2013 also at 2.47 and 1.47 in 2013. These were also back to normal in the first quarter of 2014at1.97 and 0.97.
This stock is in agriculture, so it will be cyclical which means it has a higher than average risk level. Although some analysts rate it was a median risk. All depends on your point of view. Although I do not have a lot invested in this company, I intend to hold on to my shares. See my spreadsheet at afn.htm.
This is the first of two parts. The second part will be posted on Thursday, June 5, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
Ag Growth is a leading North American manufacturer of portable grain handling equipment, consisting of augers, belt conveyors, grain drying, fencing, post-hole augers, and other ancillary grain handling accessories. This company has 1,400 dealers and distributors in Canada and the United States. Its web site is here Ag Growth.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
Tuesday, June 3, 2014
Husky Energy Inc. 2
I own this stock of Husky Energy Inc. (TSX-HSE, OTC-HUSKF). I had been tracking this stock prior to buying it. When I bought this stock in 2008, the stock was selling at a reasonable price. This company is into oil and natural gas and they have been making money.
There is not much in the way of insider trading. Insider buying is at $1M and there is no insider selling. Insiders not only have stock options, but also have Performance Share Units and Deferred Share Unit. There is insider ownership with the co-chairman having shares worth around $8.4M, Ka-Shing Li having shares worth around $10.3B (36%) and Hutchison Whampoa Luxembourg Holdings having shares worth around 9.8B (34%).
The 5 year low, median and high median Price/Earnings per Share Ratios are 14.86, 16.54 and 18.22. These are higher than the corresponding 10 year values. The current P/E Ratio is 13.10 based on a stock price of $36.68 and 2014 EPS estimate of $2.80. This stock price test suggests that the stock is currently cheap. However, measured against the 10 year high median P/E Ratio of 14.10, this stock would not come off as cheap.
I get a Graham Price of $36.01. The 10 year low, median and high median Price/Graham Price Ratios are 0.87, 1.10 and 1.30. The current P/GP Ratio is 1.02. This stock price test suggests that the stock price is reasonable.
The 10 year median Price/Book Value per Share ratio is 1.82. The current P/B Ratio is 1.78 a value some 2% lower. The current P/B Ratio is based on a stock price of $36.68 and a current BVPS of $20.59. This stock price test suggests that the stock price is reasonable.
The 5 year median dividend yield is 4.59% and the current dividend yield 3.27% is some 28% lower and suggest that the stock price is expensive. The historical average dividend yield is 4.06% and still is some 19% higher than the current dividend yield. If you look at the median dividend yield it is 3.92% and still some 16.5% higher than the current one. By these stock price tests, the stock price is expensive.
When I look at analysts' recommendations I find Strong Buy, Buy and Hold. The consensus recommendation would be a Buy. The 12 month stock price target is $38.50. This implies a total return of 8.23% with 4.96% from capital gains and 3.27% from dividends. This is not a ringing endorsement for a buy recommendation.
The Motley Fool site has a recent favorable review on this stock. Another article at the Motley Fool site talks about 5 reasons to invest in Husky. A recent article in the Calgary Herald talks about a recent rise in Husky stock.
In looking for other analysis on this stock I came across this site which talks about Husky doing share buybacks. However, I had no record of this so I went back to the statements to look and I could find no mention of share buybacks in the annual statements?
Most tests that I have looked show that the stock price is reasonable to expensive. In looking at technical analysis on Bar Chart short, median and long term indicators generally are a Buy. See my spreadsheet at hse.htm.
This is the second of two parts. The first part was posted on Monday June 2, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
This company is one of Canada's largest energy and energy-related companies. The Company's operations include the exploration, development and production of crude oil and natural gas. Husky has operations in Western Canada, Eastern Canada, US, China, Indonesia and Greenland. This company is mostly foreign owned. Industry: Oil and Gas (Integrated Oils). Its web site is here Husky.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
There is not much in the way of insider trading. Insider buying is at $1M and there is no insider selling. Insiders not only have stock options, but also have Performance Share Units and Deferred Share Unit. There is insider ownership with the co-chairman having shares worth around $8.4M, Ka-Shing Li having shares worth around $10.3B (36%) and Hutchison Whampoa Luxembourg Holdings having shares worth around 9.8B (34%).
The 5 year low, median and high median Price/Earnings per Share Ratios are 14.86, 16.54 and 18.22. These are higher than the corresponding 10 year values. The current P/E Ratio is 13.10 based on a stock price of $36.68 and 2014 EPS estimate of $2.80. This stock price test suggests that the stock is currently cheap. However, measured against the 10 year high median P/E Ratio of 14.10, this stock would not come off as cheap.
I get a Graham Price of $36.01. The 10 year low, median and high median Price/Graham Price Ratios are 0.87, 1.10 and 1.30. The current P/GP Ratio is 1.02. This stock price test suggests that the stock price is reasonable.
The 10 year median Price/Book Value per Share ratio is 1.82. The current P/B Ratio is 1.78 a value some 2% lower. The current P/B Ratio is based on a stock price of $36.68 and a current BVPS of $20.59. This stock price test suggests that the stock price is reasonable.
The 5 year median dividend yield is 4.59% and the current dividend yield 3.27% is some 28% lower and suggest that the stock price is expensive. The historical average dividend yield is 4.06% and still is some 19% higher than the current dividend yield. If you look at the median dividend yield it is 3.92% and still some 16.5% higher than the current one. By these stock price tests, the stock price is expensive.
When I look at analysts' recommendations I find Strong Buy, Buy and Hold. The consensus recommendation would be a Buy. The 12 month stock price target is $38.50. This implies a total return of 8.23% with 4.96% from capital gains and 3.27% from dividends. This is not a ringing endorsement for a buy recommendation.
The Motley Fool site has a recent favorable review on this stock. Another article at the Motley Fool site talks about 5 reasons to invest in Husky. A recent article in the Calgary Herald talks about a recent rise in Husky stock.
In looking for other analysis on this stock I came across this site which talks about Husky doing share buybacks. However, I had no record of this so I went back to the statements to look and I could find no mention of share buybacks in the annual statements?
Most tests that I have looked show that the stock price is reasonable to expensive. In looking at technical analysis on Bar Chart short, median and long term indicators generally are a Buy. See my spreadsheet at hse.htm.
This is the second of two parts. The first part was posted on Monday June 2, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
This company is one of Canada's largest energy and energy-related companies. The Company's operations include the exploration, development and production of crude oil and natural gas. Husky has operations in Western Canada, Eastern Canada, US, China, Indonesia and Greenland. This company is mostly foreign owned. Industry: Oil and Gas (Integrated Oils). Its web site is here Husky.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
Monday, June 2, 2014
Husky Energy Inc.
On my other blog I am today writing about possible cheap dividend stocks for June 2014 continue... I am also doing a review of DHX Media Ltd. (TSX-DHX, OTC-DHXMF) today ...continue...
I own this stock of Husky Energy Inc. (TSX-HSE, OTC-HUSKF). I had been tracking this stock prior to buying it. When selling some of my SNC-Lavalin in 2008 I was looking for something to buy. With this purchase, I only used a third of the money I got from my SNC sale, but got enough dividends on this to replace the dividends I will lose from my SNC sale. The stock was selling at a reasonable price. This company is into oil and natural gas and they have been making money.
This is an oil and gas company which has a decent yield. The current yield is 3.27%. The 5 year median dividend yield is 4.59%. Often with these sorts of stocks, the dividends go down as well as up. Over the past 5 years dividends have decreased by 5.1% per year. However, over the past 10 years, dividends are up by 12.49% per year.
I have not had this stock that long (only since 2008). My total return is at 5.31% per year with 2.02% per year from capital gains and 3.29% from dividends. The total return on this stock over the past 5 and 10 years is at 7.75% and 14.86% per year. The portion of this total return attributable to capital gains is at 4.05% and 7.91% per year over these periods. The portion of this total return attributable to dividends is at 3.70% and 6.94% per year over these periods.
The outstanding shares have increased at the rate of 3% and 1.5% per year over the past 5 and 10 years. Shares have increased due Share Issues, Stock Dividends (in place of dividends) and Stock Options. Growth in Revenues, Earnings and Cash Flow has been good over the last 10 years, but not so much over the past 5 year.
Revenue per Share is up by 5.7% and 12% per year over the past 5 and 10 years if you look at the 5 year running averages. EPS is down by 9.1% and up by 8.7% per year over the past 5 and 10 years if you look at the 5 year running averages. Cash Flow per Share is down by 3.8% and up by 7.3% per year over the past 5 and 10 year using the 5 year running averages.
For Return on Equity the rate has been below 10% 3 times in the last 10 years and all these have occurred within the last 5 years. The ROE for the year ending in 2013 was 9.2% and the 5 year median ROE is also 9.2%. The ROE on comprehensive income is a bit better with the ROE for 2013 at 10.4% and the 5 year median also at 10.4%.
The Liquidity Ratio for 2013 is 1.18. This is a little low. If you add in cash flow after dividends it becomes 2.01. The Debt Ratio is quite good at 2.19. Leverage and Debt/Equity Ratios are also quite good at 1.84 and 0.84.
I have little of my investment in oil and gas stocks and this is my main one. I think it will be fine over the longer term and I will hold on to what I have. This investment has been fine, but not great. See my spreadsheet at hse.htm.
This is the first of two parts. The second part will be posted on Tuesday, June 3, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
This company is one of Canada's largest energy and energy-related companies. The Company's operations include the exploration, development and production of crude oil and natural gas. Husky has operations in Western Canada, Eastern Canada, US, China, Indonesia and Greenland. This company is mostly foreign owned. Industry: Oil and Gas (Integrated Oils). Its web site is here Husky.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
I own this stock of Husky Energy Inc. (TSX-HSE, OTC-HUSKF). I had been tracking this stock prior to buying it. When selling some of my SNC-Lavalin in 2008 I was looking for something to buy. With this purchase, I only used a third of the money I got from my SNC sale, but got enough dividends on this to replace the dividends I will lose from my SNC sale. The stock was selling at a reasonable price. This company is into oil and natural gas and they have been making money.
This is an oil and gas company which has a decent yield. The current yield is 3.27%. The 5 year median dividend yield is 4.59%. Often with these sorts of stocks, the dividends go down as well as up. Over the past 5 years dividends have decreased by 5.1% per year. However, over the past 10 years, dividends are up by 12.49% per year.
I have not had this stock that long (only since 2008). My total return is at 5.31% per year with 2.02% per year from capital gains and 3.29% from dividends. The total return on this stock over the past 5 and 10 years is at 7.75% and 14.86% per year. The portion of this total return attributable to capital gains is at 4.05% and 7.91% per year over these periods. The portion of this total return attributable to dividends is at 3.70% and 6.94% per year over these periods.
The outstanding shares have increased at the rate of 3% and 1.5% per year over the past 5 and 10 years. Shares have increased due Share Issues, Stock Dividends (in place of dividends) and Stock Options. Growth in Revenues, Earnings and Cash Flow has been good over the last 10 years, but not so much over the past 5 year.
Revenue per Share is up by 5.7% and 12% per year over the past 5 and 10 years if you look at the 5 year running averages. EPS is down by 9.1% and up by 8.7% per year over the past 5 and 10 years if you look at the 5 year running averages. Cash Flow per Share is down by 3.8% and up by 7.3% per year over the past 5 and 10 year using the 5 year running averages.
For Return on Equity the rate has been below 10% 3 times in the last 10 years and all these have occurred within the last 5 years. The ROE for the year ending in 2013 was 9.2% and the 5 year median ROE is also 9.2%. The ROE on comprehensive income is a bit better with the ROE for 2013 at 10.4% and the 5 year median also at 10.4%.
The Liquidity Ratio for 2013 is 1.18. This is a little low. If you add in cash flow after dividends it becomes 2.01. The Debt Ratio is quite good at 2.19. Leverage and Debt/Equity Ratios are also quite good at 1.84 and 0.84.
I have little of my investment in oil and gas stocks and this is my main one. I think it will be fine over the longer term and I will hold on to what I have. This investment has been fine, but not great. See my spreadsheet at hse.htm.
This is the first of two parts. The second part will be posted on Tuesday, June 3, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
This company is one of Canada's largest energy and energy-related companies. The Company's operations include the exploration, development and production of crude oil and natural gas. Husky has operations in Western Canada, Eastern Canada, US, China, Indonesia and Greenland. This company is mostly foreign owned. Industry: Oil and Gas (Integrated Oils). Its web site is here Husky.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
DHX Media Ltd.
On my other blog I am today writing about possible cheap dividend stocks for June 2014 continue... On this blog I am today writing about Husky Energy Inc. (TSX-HSE, OTC-HUSKF) continue...
I do not own this stock of DHX Media Ltd. (TSX-DHX, OTC-DHXMF). I took a look at the stock after reading a favorable report at CANTECH. There was also a favorable report from Global Maxfin Capital..
I looked at the basic stock and it is a small cap with a dividend. Although the dividend yield is low at 0.86%, it does have a dividend. I wanted to use the cash I had in my TFSA to buy some small cap stock with a dividend, so this stock did intrigue me.
First I do not know why they started to pay a dividend. They clearly cannot afford to do so. They are paying out in 2013 a lot more than they are earning. I realized that in 2012 they had a lot of surplus cash. However, at the end of 2013 their surplus cash has all but disappeared. At the end of the third quarter they again had a lot of surplus cash, but it was from selling more shares. The number of shares has increased by 88% from the end of June 2013 to the end of the third quarter.
The revenues have been rising, but they cannot consistently earn profit nor cash flow from this rising of revenues. However, if you look at revenue per share, this value has been going down. The decline in revenue per share over the past 5 years is 5%. If you look at 5 year running average, the decline is 0.6%. So basically revenue per share has gone nowhere.
So at worse the company cannot grow revenue per share or EPS or CFPS and at best they are inconsistent. If you look at the 12 month period to the end of the third quarter compared to the 12 month period to the end of June 2012, the Revenue, EPS are going the right direction. The problem with Revenue is that the Revenue per Share using the estimates has gone down because of the increase in shares. Cash Flow has not improved.
The stock may take as stocks take off for all sorts of reasons. Not all the reasons for stocks taking off are a good sign. Some just take off because people believe they will. But this will not last without some proper supporting financials.
I do not see this as a stock for the long term as a good long term investment must have something to support it like increasing Revenue per Share, EPS CFPS. I do not believe that this stock is a long term investment, so it is a stock I will not buy. See my spreadsheet at dhx.htm.
DHX Media is a leader in the creation, production and marketing of family entertainment. DHX Media owns, markets and distributes over 10,000 episodes of entertainment programming worldwide and licenses its owned properties through its dedicated consumer products business. Its web site is here DHX Media.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
I do not own this stock of DHX Media Ltd. (TSX-DHX, OTC-DHXMF). I took a look at the stock after reading a favorable report at CANTECH. There was also a favorable report from Global Maxfin Capital..
I looked at the basic stock and it is a small cap with a dividend. Although the dividend yield is low at 0.86%, it does have a dividend. I wanted to use the cash I had in my TFSA to buy some small cap stock with a dividend, so this stock did intrigue me.
First I do not know why they started to pay a dividend. They clearly cannot afford to do so. They are paying out in 2013 a lot more than they are earning. I realized that in 2012 they had a lot of surplus cash. However, at the end of 2013 their surplus cash has all but disappeared. At the end of the third quarter they again had a lot of surplus cash, but it was from selling more shares. The number of shares has increased by 88% from the end of June 2013 to the end of the third quarter.
The revenues have been rising, but they cannot consistently earn profit nor cash flow from this rising of revenues. However, if you look at revenue per share, this value has been going down. The decline in revenue per share over the past 5 years is 5%. If you look at 5 year running average, the decline is 0.6%. So basically revenue per share has gone nowhere.
So at worse the company cannot grow revenue per share or EPS or CFPS and at best they are inconsistent. If you look at the 12 month period to the end of the third quarter compared to the 12 month period to the end of June 2012, the Revenue, EPS are going the right direction. The problem with Revenue is that the Revenue per Share using the estimates has gone down because of the increase in shares. Cash Flow has not improved.
The stock may take as stocks take off for all sorts of reasons. Not all the reasons for stocks taking off are a good sign. Some just take off because people believe they will. But this will not last without some proper supporting financials.
I do not see this as a stock for the long term as a good long term investment must have something to support it like increasing Revenue per Share, EPS CFPS. I do not believe that this stock is a long term investment, so it is a stock I will not buy. See my spreadsheet at dhx.htm.
DHX Media is a leader in the creation, production and marketing of family entertainment. DHX Media owns, markets and distributes over 10,000 episodes of entertainment programming worldwide and licenses its owned properties through its dedicated consumer products business. Its web site is here DHX Media.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
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