I do not own this stock of First Capital Realty (TSX-FCR, OTC- FCRGF). In 2011 a reader asked me to review this real estate stock. Also, the site Canadian Dividend Stock site mentions this company as a top Canadian REIT.
The stock has grown its dividends over the years, but they are inconsistent in their increases and they do not increase the dividend every year. The growth in dividends is at .98% and 1.55% per year over the past 5 and 10 years. The reason that the growth over the past 5 years is low is that there were no increases in dividends between 2009 and 2012.
The last dividend increase is for 2.4% in 2014. If you look at dividend growth over the past 3 years to 2014, the growth in dividends is at 1.84%. For Real Estate stocks you want to dividend growth equal to the rate of inflation. The growth in inflation to 2013 is at 1.61% and 1.75% per year over the past 5 and 10 years. The growth in inflation for the last 3 years to 2014 is 1.56%.
So in the last 3 years the growth in dividends is at the rate of inflation or better. However, the rate of inflation is higher than dividend growth in the past 5 and 10 years. The thing is that a lot of companies have had a hard time with the most recent recession. So for this company to stop increasing dividends is not surprising.
Shareholders have done well over the past 5 and 10 years. The total returns over these periods are at 11.25% and 10.21% per year. The portion of this total return attributable to dividends is at 5.43% and 5.91% per year over these periods. The portion of this total return attributable to capital gains is at 5.82% and 4.31% per year over these periods.
Outstanding shares have increase by 7.7% and 14% per year over the past 5 and 10 years. Shares have increased due to Convertible Debentures, Stock Options and Share Issues. If I were a shareholder per share values would be most important to me because of high rate of increase in shares.
Revenues and Cash Flows have increased very well over the past 5 and 10 years. However, Revenue per Share and Cash Flows per Share growth has been non-existent to mediocre at best. There is a problem in looking at EPS and Net Income because the change in accounting rules in 2011 has had a big effect on these measures.
Revenues have grown at 8.5% and 14.9% per year over the past 5 and 10 years. Revenue per Share is up by 0.8% and 0.8% per year over the past 5 and 10 years. Cash Flow is up by 7.5% and 14.2% per year over the past 5 and 10 years. Cash Flow per Share is down by 0.8% and 3.4% per year over the past 5 and 10 years.
Unfortunately, the growth in Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO) has also been non-existent or mediocre. FFO is down by 0.1% and up by 1.8% per year over the past 5 and 10 years. AFFO is up by 1.2% and 1.95 per year over the past 5 and 7 years. AFFO is the newest measure for judging how well REITs are doing, but it has not been used for a long a period at present.
The Liquidity Ratios is really low and even if you add in cash flow after dividends, it is still very low. Liquidity Ratio for 2013 is 0.55 and adding in cash flow after dividends it is 0.65. If this ratio is below 1.00, it means that the current assets cannot cover the current liabilities. It makes a company vulnerable. The other debt ratios are fine.
The 5 year low, median and high median Price/AFFO Ratios are 16.45, 17.77 and 19.09. The current P/AFFO Ratio is 18.52 based on AFFO estimate for 2014 of $0.97 and a stock price of $17.96. This stock price test says that the stock price is relatively reasonable.
I get a 10 year median Price/Book Value per Share Ratio of 1.63. This is based on a BVPS of $16.64 and a stock price of $17.96. The current P/B Ratio 1.08 a value some 34% lower. This stock price test says that the stock price is relatively cheap.
The 5 year median dividend yield is 4.95% a value some 3% higher than the current dividend yield of 4.79% based on a dividend of $0.86 and a stock price of $17.96. This stock price test says that the stock price is relatively reasonable.
The historical dividend yields tell a different story. The historical average dividend yield is 7.03% and the historical median dividend yield is 6.02%. These yields are 51% and 20% higher than the current dividend yields. So on a historical basis, the stock price is relatively expensive.
The analysts' recommendations are Buy and Hold. There are more Hold recommendations than Buy recommendations and the consensus recommendations would be a Hold. The 12 month stock price consensus is $20.40. This implies a total return of 18.37% with 4.79% from dividends and 13.59% from capital gains.
According to Forbes this stock is in oversold territory. This is another way of saying a stock is cheap. The site Markets Wired talks about this company closing a branch in Indiana. There is also a News Wire item talking about a new CEO for 2015.
Sound bit for Twitter and StockTwits is: Dividend growth Real Estate stock, cheap to reasonable price. See my spreadsheet at fcr.htm.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.
First Capital Realty is Canada's leading owner, developer and operator of supermarket and drugstore anchored neighbourhood and community shopping centers, located predominantly in growing metropolitan areas. Its web site is here First Capital Realty.
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, December 11, 2014
Wednesday, December 10, 2014
Finning International Inc. 2
On my other blog I am today writing about Buy Backs continue...
I do not own this stock of Finning International Inc. (TSX-FTT, OTC-FINGF). When I was in the market to buy an industrial stock in this area in 2007, I look at this stock was well as Toromont Industries (TSX-TIH). At the time I liked Toromont better, so that is what I bought.
When I look at insider trading, I find 1.5M of insider buying and 3.8M of insider selling with a net insider selling of $2.3M. On a relative basis this is low as it is only 0.05% of the stock's market cap. There is some insider ownership with Chairman having shares worth around $4.6M, the CEO having shares worth around $0.3M and the CFO having shares worth around $0.4M.
In 2013 outstanding shares worth increased for stock options by 354,000 with a book value of $10.3M. These numbers of shares were worth $9.6M at the end of 2013. The increase in share is reasonable being some 0.21% of the outstanding shares.
The 5 year low, median and high median Price/Earnings per Share Ratios are 11.13, 13.17 and 15.20. The 10 year corresponding ratios are higher at 14.14, 18.53 and 21.52. The current P/E Ratio is 12.70 based on a current price of $24.01 and 2014 EPS estimate of 1.89. Also, the P/E Ratio for 2014 is lower at 11.33 based on a current stock price of $24.01 and 2015 EPS estimate of $2.12. All this suggests that the stock price is relatively reasonable.
I get a Graham Price of 22.35. The 10 year low, median and high Price/Graham Price Ratios are 1.18, 1.45 and 1.62. The current P/GP Ratio is 1.07 based on a stock price of $24.01. The stock price test suggests that the stock is relatively cheap.
The 10 year Price/Book Value per Share Ratio is 2.53. The current P/B Ratio is 2.04 a value some 19% lower. This is based on a PBPS of $11.75 and a stock price $24.01. The stock price test suggests that the stock is relatively reasonable. The current P/B Ratio would have to be 20% lower than the 10 year P/B Ratio to be cheap, but the price is certainly getting there.
The 5 year median dividend yield is 2.13% and the current dividend yield at 2.96% is some 39% lower. The current dividend yield is lower than the highest dividend yield in the last 5 years, but it is lower than the median high dividend yield. The stock price test suggests that the stock is at a relatively good price.
The historical average dividend yield is 2.15% and the historical median dividend yield is 1.55%. The current dividend at 2.96% is some 38% and 91% lower than these values. All this suggests that the stock price is relatively cheap.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. The consensus recommendation is a Buy. The 12 month stock price consensus is $30.60. This implies a total return of 30.40% with 2.96% from dividends and 27.45% from capital gains.
This stock currently has an average recommendation of a Hold from Analysts according to The Legacy. On the other hand, Forbes says that this stock is very oversold. The whole point is to be good stocks when they are cheap. The Rental Equipment Register talks about a new expanded store in Lloydminster, Alberta.
Sound bit for Twitter and StockTwits is: stock price is cheap to reasonable. The best way to invest is to buy good stocks when they are cheap. The second best is when stocks are reasonably prices. I wonder if this stock will recover to meet the 12 month consensus stock price, but if you are in a stock for the longer term what a stock does in just one year does not matter that much. See my spreadsheet at ftt.htm.
This is the second of two parts. The first part was posted on Tuesday, December 09, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
This company sells, rents and provides customer support services for Caterpillar equipment and engines. They cover Canada, UK, Argentina, Bolivia, Chile and Uruguay. Its web site is here Finning.
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 Finning International Inc. (TSX-FTT, OTC-FINGF). When I was in the market to buy an industrial stock in this area in 2007, I look at this stock was well as Toromont Industries (TSX-TIH). At the time I liked Toromont better, so that is what I bought.
When I look at insider trading, I find 1.5M of insider buying and 3.8M of insider selling with a net insider selling of $2.3M. On a relative basis this is low as it is only 0.05% of the stock's market cap. There is some insider ownership with Chairman having shares worth around $4.6M, the CEO having shares worth around $0.3M and the CFO having shares worth around $0.4M.
In 2013 outstanding shares worth increased for stock options by 354,000 with a book value of $10.3M. These numbers of shares were worth $9.6M at the end of 2013. The increase in share is reasonable being some 0.21% of the outstanding shares.
The 5 year low, median and high median Price/Earnings per Share Ratios are 11.13, 13.17 and 15.20. The 10 year corresponding ratios are higher at 14.14, 18.53 and 21.52. The current P/E Ratio is 12.70 based on a current price of $24.01 and 2014 EPS estimate of 1.89. Also, the P/E Ratio for 2014 is lower at 11.33 based on a current stock price of $24.01 and 2015 EPS estimate of $2.12. All this suggests that the stock price is relatively reasonable.
I get a Graham Price of 22.35. The 10 year low, median and high Price/Graham Price Ratios are 1.18, 1.45 and 1.62. The current P/GP Ratio is 1.07 based on a stock price of $24.01. The stock price test suggests that the stock is relatively cheap.
The 10 year Price/Book Value per Share Ratio is 2.53. The current P/B Ratio is 2.04 a value some 19% lower. This is based on a PBPS of $11.75 and a stock price $24.01. The stock price test suggests that the stock is relatively reasonable. The current P/B Ratio would have to be 20% lower than the 10 year P/B Ratio to be cheap, but the price is certainly getting there.
The 5 year median dividend yield is 2.13% and the current dividend yield at 2.96% is some 39% lower. The current dividend yield is lower than the highest dividend yield in the last 5 years, but it is lower than the median high dividend yield. The stock price test suggests that the stock is at a relatively good price.
The historical average dividend yield is 2.15% and the historical median dividend yield is 1.55%. The current dividend at 2.96% is some 38% and 91% lower than these values. All this suggests that the stock price is relatively cheap.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. The consensus recommendation is a Buy. The 12 month stock price consensus is $30.60. This implies a total return of 30.40% with 2.96% from dividends and 27.45% from capital gains.
This stock currently has an average recommendation of a Hold from Analysts according to The Legacy. On the other hand, Forbes says that this stock is very oversold. The whole point is to be good stocks when they are cheap. The Rental Equipment Register talks about a new expanded store in Lloydminster, Alberta.
Sound bit for Twitter and StockTwits is: stock price is cheap to reasonable. The best way to invest is to buy good stocks when they are cheap. The second best is when stocks are reasonably prices. I wonder if this stock will recover to meet the 12 month consensus stock price, but if you are in a stock for the longer term what a stock does in just one year does not matter that much. See my spreadsheet at ftt.htm.
This is the second of two parts. The first part was posted on Tuesday, December 09, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
This company sells, rents and provides customer support services for Caterpillar equipment and engines. They cover Canada, UK, Argentina, Bolivia, Chile and Uruguay. Its web site is here Finning.
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, December 9, 2014
Finning International Inc.
On my other blog I am today writing the Globe and Mail investors Site continue...
I do not own this stock of Finning International Inc. (TSX-FTT, OTC-FINGF). When I was in the market to buy an industrial stock in this area in 2007, I look at this stock was well as Toromont Industries (TSX-TIH). At the time I liked Toromont better, so that is what I bought.
This company has raised their dividend every year since 2002. The 5 and 10 year dividend growth is at 6.8% and 12.75% per year. The last dividend increase occurred in 2014 and was for 16.4%. The current dividend is 2.96% based on a dividend of $0.71 and a stock price of $24.01. The 5 year median dividend yield is 2.13%.
Shareholders have only done well over the past 5 years and not so well over the past 10 years. The total return on this stock is at 10.45% and 5.38% per year over the past 5 and 10 years. The dividend portion of this total return is at 2.89% and 2.17% per year over these periods. The capital gains portion of this total return is at 7.56% and 3.21% per year over these periods.
The stock has been dropping lately ever since August when it reached a high of $33.90. So it has fallen some 29% in the last few months and this is why the total return is current down. The total return to the end of 2013 was at 16.54% and 8.08% per year.
Over the past 5 and 10 years outstanding shares have increased 0% and 1% per year. Shares have increased due to Stock Options and Share Issues and have decreased due to Buy Backs. There has been moderate growth in Revenue, good growth in Earnings and moderate to good growth in cash flow over the past 5 and 10 years.
Revenue is up by 2.4% and 6.5% per year over the past 5 and 10 years. Revenue per Share is up by 2.2% and 5.5% per year over the past 5 and 10 years.
The EPS is up by 28.7% and 8.7% per year over the past 5 and 10 years. EPS hit a peak in 2007. They then dropped but have been rising ever since. The growth in EPS using the 5 year running averages come out a lot lower at 3.4% and 6.1% per year mainly because they had a loss year in 2010. The 2010 loss was because of a loss due to discontinued operations.
The cash flow is up by 7.8% and 8.2% per year over the past 5 and 10 years. The cash flow per share has grown at 7.6% and 7.2% per year over the past 5 and 10 years.
The Return on Equity has been below 10% 4 times in the last 10 years and 2 times in the last 5 years. The 2013 ROE is at 18% and the 5 year median ROE is also 18%. The 2013 ROE on comprehensive income is 20.9%. When the ROE on comprehensive income is at or above the ROE on net income, it suggests that the income is of good quality.
The debt ratios tend to be good, especially in the last 5 years. The Liquidity Ratio for 2013 is 2.10 and its 5 year median value is 1.82. The 2013 Debt Ratio is 1.58 and it has a t year median of 1.58. The Leverage Debt/Equity Ratios are a little high but ok at 2.72 and 1.72 for 2013. Their 10 year median values are 2.68 and 1.68.
Sound bit for Twitter and StockTwits is: Dividend Growth Industrial stock. See my spreadsheet at ftt.htm.
This is the first of two parts. The second part will be posted on Wednesday, December 10, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
This company sells, rents and provides customer support services for Caterpillar equipment and engines. They cover Canada, UK, Argentina, Bolivia, Chile and Uruguay. Its web site is here Finning.
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 Finning International Inc. (TSX-FTT, OTC-FINGF). When I was in the market to buy an industrial stock in this area in 2007, I look at this stock was well as Toromont Industries (TSX-TIH). At the time I liked Toromont better, so that is what I bought.
This company has raised their dividend every year since 2002. The 5 and 10 year dividend growth is at 6.8% and 12.75% per year. The last dividend increase occurred in 2014 and was for 16.4%. The current dividend is 2.96% based on a dividend of $0.71 and a stock price of $24.01. The 5 year median dividend yield is 2.13%.
Shareholders have only done well over the past 5 years and not so well over the past 10 years. The total return on this stock is at 10.45% and 5.38% per year over the past 5 and 10 years. The dividend portion of this total return is at 2.89% and 2.17% per year over these periods. The capital gains portion of this total return is at 7.56% and 3.21% per year over these periods.
The stock has been dropping lately ever since August when it reached a high of $33.90. So it has fallen some 29% in the last few months and this is why the total return is current down. The total return to the end of 2013 was at 16.54% and 8.08% per year.
Over the past 5 and 10 years outstanding shares have increased 0% and 1% per year. Shares have increased due to Stock Options and Share Issues and have decreased due to Buy Backs. There has been moderate growth in Revenue, good growth in Earnings and moderate to good growth in cash flow over the past 5 and 10 years.
Revenue is up by 2.4% and 6.5% per year over the past 5 and 10 years. Revenue per Share is up by 2.2% and 5.5% per year over the past 5 and 10 years.
The EPS is up by 28.7% and 8.7% per year over the past 5 and 10 years. EPS hit a peak in 2007. They then dropped but have been rising ever since. The growth in EPS using the 5 year running averages come out a lot lower at 3.4% and 6.1% per year mainly because they had a loss year in 2010. The 2010 loss was because of a loss due to discontinued operations.
The cash flow is up by 7.8% and 8.2% per year over the past 5 and 10 years. The cash flow per share has grown at 7.6% and 7.2% per year over the past 5 and 10 years.
The Return on Equity has been below 10% 4 times in the last 10 years and 2 times in the last 5 years. The 2013 ROE is at 18% and the 5 year median ROE is also 18%. The 2013 ROE on comprehensive income is 20.9%. When the ROE on comprehensive income is at or above the ROE on net income, it suggests that the income is of good quality.
The debt ratios tend to be good, especially in the last 5 years. The Liquidity Ratio for 2013 is 2.10 and its 5 year median value is 1.82. The 2013 Debt Ratio is 1.58 and it has a t year median of 1.58. The Leverage Debt/Equity Ratios are a little high but ok at 2.72 and 1.72 for 2013. Their 10 year median values are 2.68 and 1.68.
Sound bit for Twitter and StockTwits is: Dividend Growth Industrial stock. See my spreadsheet at ftt.htm.
This is the first of two parts. The second part will be posted on Wednesday, December 10, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
This company sells, rents and provides customer support services for Caterpillar equipment and engines. They cover Canada, UK, Argentina, Bolivia, Chile and Uruguay. Its web site is here Finning.
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, December 8, 2014
If You Want a Good Computer Repair Shop In Toronto
My computer was making funny noises. All it needed was to be cleaned. I keep my windows open all summer and I live downtown, so I do tend to get a lot of dust in my apartment. I took it to 3P Computer At Danforth at 770 Danforth just east of Pape Subway station.
The guy was very thorough and did a diagnostic test. Everything check out fine. I do not know what I would do if my computer stopped. All my contacts, my calendar, my financial data etc is on the computer. So I am pleased with the results. I took it in this morning and it was ready by 5. Great Service.
The guy was very thorough and did a diagnostic test. Everything check out fine. I do not know what I would do if my computer stopped. All my contacts, my calendar, my financial data etc is on the computer. So I am pleased with the results. I took it in this morning and it was ready by 5. Great Service.
My computer is in a repair shop
My computer is in a repair shop today, so I do not think I will be doing any post today.
Friday, December 5, 2014
The Keg Royalties Income Fund
I do not own this stock of The Keg Royalties Income Fund (TSX-KEG.UN, OTC-KRIUF). This was a stock suggested by one of my readers. I like dinning at The Keg. I find the food very good. At stock forums I viewed, investors liked this company as it is guaranteed 4% of the sales at Keg restaurants as income to the fund. So I decided to take a look at it.
Let me first off say that this would not be a favorite stock of mine. This is because you cannot properly evaluate this stock. They are 100% dependent on Keg Restaurants Ltd. (KRL) for income and 99.6% of their assets are dependent on KRL, but they no longer publish the financial statements for KRL with the financial statements for this fund.
The fund published the financial statements for KRL between 2006 and 2010, inclusive. During these 5 years KRL had positive earnings in only one year and that was in 2007. The only part of KRL financials that is still published is the revenue for KRL. This is not good enough. This fund is dependent on KRL and I would want to know that they have the ability to pay the royalties to this fund.
The fund has two sources of income, KRL Royalties and interest on a loan to KRL. According to the statements KRL Revenue has 1.9% and 5.4% per year over the past 5 and 10 years. The income to this fund has grown at 12.5% and 9.6%. The main reason for the variance is prior to 2011 the KRL had an interest in the net earnings of their partnership with the fund. This in affect reduced the income to the fund almost in half.
Now the partnership units that KRL has in the fund are treated as a liability. This treatment, in effect lowers the fund's earnings. So if you look at the fund's earnings, they are down by 18.7% and 15.2% per year over the past 5 and 10 years. None of this is easy to understand and I do not like investing in complicated companies.
The fund is paying out in distributions in 2013, 213% of their earnings. The Dividend Payout Ratio for cash flow is better at 54%. If you look at what the company says is their distributable cash, in 2013 they are paying out 98.9% of distributable cash.
Shareholders have done well over the past 5 and 10 years. Total returns over these periods are at 18.23% and 10.81%. The portion of this total return from distributions is at 8.33% and 7.88%. The portion of this total return from capital gains is at 9.89% and 2.93%.
The debt ratios are good, with the Liquidity Ratio at 1.55 and the Debt Ratio at 1.75 for 2013. Leverage and Debt/Equity Ratios are a little high at 2.33 and 1.33. The intangible assets are at 84% of the fund market cap. The intangible assets are 72% of the total assets of the fund. (This would basically mean that the market is valuing the intangible assets lower than the fund is.)
The 5 year low, median and high median Price/Earnings per Share Ratios are 12.37, 13.90 and 15.42. The corresponding 10 years values are lower at 9.63, 11.02 and 12.49. The current P/E Ratio based on the 12 months earnings to September 2014 is 32.98. This stock price test says that the stock price is relatively high. On an absolute basis a P/E of 32.98 is high for this sort of stock.
The 5 year median Dividend Yield is 7.72% and the current Dividend Yield at 5.60% is some 27% lower. The current Dividend Yield is some 36% and 63% lower than the historical median and historical average Dividend Yields. By this test this stock is relatively expensive.
There is an interesting Financial Post article from 2013 talking about Fairfax Financial Holdings Ltd. buying a 51% stake in Keg Restaurants Ltd. . An investment reporter at the Globe and Mail, John Heinzl seems to like to stock. Richard Berger at Seeking Alpha also likes this stock. However, this last report is from early last year.
There is one analyst following this fund and he gives a recommendation a recommendation of a Buy.
Sound bit for Twitter and StockTwits is: Stock price is relatively expensive. Personally, I would not buy this stock as it is too dependent on KRL making money and the financials on KRL are not available. The arrangements with KRL also seem overly complex. The financial show that shareholders of this stock are not getting 4% of the revenue of KRL. It is much more complex than that. See my spreadsheet at keg.htm.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.
Vancouver-based Keg Restaurants Ltd. is the leading operator and franchisor of steakhouse restaurants in Canada and has a substantial presence in select regional markets in the United States. KRL continues to operate The Keg restaurant system and expand that system through the addition of both corporate and franchised Keg steakhouses. Its web site is here Keg Income Fund.
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.
Let me first off say that this would not be a favorite stock of mine. This is because you cannot properly evaluate this stock. They are 100% dependent on Keg Restaurants Ltd. (KRL) for income and 99.6% of their assets are dependent on KRL, but they no longer publish the financial statements for KRL with the financial statements for this fund.
The fund published the financial statements for KRL between 2006 and 2010, inclusive. During these 5 years KRL had positive earnings in only one year and that was in 2007. The only part of KRL financials that is still published is the revenue for KRL. This is not good enough. This fund is dependent on KRL and I would want to know that they have the ability to pay the royalties to this fund.
The fund has two sources of income, KRL Royalties and interest on a loan to KRL. According to the statements KRL Revenue has 1.9% and 5.4% per year over the past 5 and 10 years. The income to this fund has grown at 12.5% and 9.6%. The main reason for the variance is prior to 2011 the KRL had an interest in the net earnings of their partnership with the fund. This in affect reduced the income to the fund almost in half.
Now the partnership units that KRL has in the fund are treated as a liability. This treatment, in effect lowers the fund's earnings. So if you look at the fund's earnings, they are down by 18.7% and 15.2% per year over the past 5 and 10 years. None of this is easy to understand and I do not like investing in complicated companies.
The fund is paying out in distributions in 2013, 213% of their earnings. The Dividend Payout Ratio for cash flow is better at 54%. If you look at what the company says is their distributable cash, in 2013 they are paying out 98.9% of distributable cash.
Shareholders have done well over the past 5 and 10 years. Total returns over these periods are at 18.23% and 10.81%. The portion of this total return from distributions is at 8.33% and 7.88%. The portion of this total return from capital gains is at 9.89% and 2.93%.
The debt ratios are good, with the Liquidity Ratio at 1.55 and the Debt Ratio at 1.75 for 2013. Leverage and Debt/Equity Ratios are a little high at 2.33 and 1.33. The intangible assets are at 84% of the fund market cap. The intangible assets are 72% of the total assets of the fund. (This would basically mean that the market is valuing the intangible assets lower than the fund is.)
The 5 year low, median and high median Price/Earnings per Share Ratios are 12.37, 13.90 and 15.42. The corresponding 10 years values are lower at 9.63, 11.02 and 12.49. The current P/E Ratio based on the 12 months earnings to September 2014 is 32.98. This stock price test says that the stock price is relatively high. On an absolute basis a P/E of 32.98 is high for this sort of stock.
The 5 year median Dividend Yield is 7.72% and the current Dividend Yield at 5.60% is some 27% lower. The current Dividend Yield is some 36% and 63% lower than the historical median and historical average Dividend Yields. By this test this stock is relatively expensive.
There is an interesting Financial Post article from 2013 talking about Fairfax Financial Holdings Ltd. buying a 51% stake in Keg Restaurants Ltd. . An investment reporter at the Globe and Mail, John Heinzl seems to like to stock. Richard Berger at Seeking Alpha also likes this stock. However, this last report is from early last year.
There is one analyst following this fund and he gives a recommendation a recommendation of a Buy.
Sound bit for Twitter and StockTwits is: Stock price is relatively expensive. Personally, I would not buy this stock as it is too dependent on KRL making money and the financials on KRL are not available. The arrangements with KRL also seem overly complex. The financial show that shareholders of this stock are not getting 4% of the revenue of KRL. It is much more complex than that. See my spreadsheet at keg.htm.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.
Vancouver-based Keg Restaurants Ltd. is the leading operator and franchisor of steakhouse restaurants in Canada and has a substantial presence in select regional markets in the United States. KRL continues to operate The Keg restaurant system and expand that system through the addition of both corporate and franchised Keg steakhouses. Its web site is here Keg Income Fund.
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, December 4, 2014
Crescent Point Energy Corp. 2
I do not own this stock of Crescent Point Energy Corp. (TSX-CPG, OTC-CSCTF). I got this idea to look into this stock from another blogger, My Own Advisor and his November 2012 blog entry on great Canadian dividend paying stocks. I also noticed that several people at the Toronto Money Show of 2013 mentioned this stock.
When I look at insider trading I find $12.3m of insider selling and $2.4M of insider buying, with net insider selling of $9.9M of net insider selling. Net insider selling is just 0.6% of the company's market cap. There is insider ownership with the CEO owns shares worth around $45.8M, the CFO owns shares worth around $8.2M and the Chairman owning shares worth around $23.2M.
When looking at the stock price today, this price is down. Stock price today is $27.84 and I used this as the basis for my report. Also note that because the stock price is down, the dividend yield is higher than I reported on yesterday.
The problem with looking at Price/Earnings Ratios for the last 5 years is that earnings have fluctuated and gone negative over this period. The P/E Ratios for the last 10 years is more viable, with the low, median and high median P/E Ratios at 14.90, 17.98 and 21.06. The current P/E Ratio is 22.82 based on a stock price of $27.84 and 2014 EPS estimate of $1.22. By this stock price test the stock price is relatively high.
I get a Graham Price of $22.94. The current P/GP Ratio is 1.21 based on a stock price of $27.84. The low, median and high median P/GP Ratios are 1.56, 1.79 and 2.02. By this stock price test the stock price is reasonable. However, the GP price has fluctuated greatly also due to the fluctuation on EPS.
The 10 year median Price/Book Value per Share Ratio is 1.86 and the current P/B Ratio is 1.45 based on a BVPS of $19.17 and a stock price of $27.84. The current P/B Ratio is some 22% below the 10 year median P/B Ratio. This stock price test suggests that the stock price is cheap.
The 5 year median Dividend yield is 6.96% and the current Dividend Yield at 9.91% is some 43% lower. Also, if you look at the historical median Dividend Yield at 8.57%, you have a value some 16% lower in the current Dividend Yield. This testing suggests that the stock price is cheap to reasonable.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. The consensus would be a Buy recommendation. The 12 month consensus stock price is $46.50. This would imply a total return of 76.94% with 9.91% from dividends and $67.03% from capital gains.
The Motley Fool has an interesting article on why you should not buy a stock just for the dividend. Dividends, no matter how good cannot make up for capital losses. This company is talked about on BNN. The siteTicker Report talks about a recent TD Securities drop in their target price from $48.00 to $46.00.
Sound bit for Twitter and StockTwits is: Price is cheap to reasonable. I think it is a buy because the price of oil is down considerably and oil stocks are probably depressed. However, I think that the 12 month consensus stock price is rather high. I do not see this happening within a year. You could buy this as a bargain, but I think you would have to be patient to see good results in the future. See my spreadsheet at cpg.htm.
This is the second of two parts. The first part was posted on Wednesday, December 3, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
Crescent Point Energy Corp. is a Canada-based oil and gas exploration, development and production company. The Company is a conventional oil and gas producer with assets focused in properties consisting of assets light and medium oil and natural gas reserves in Western Canada and the United States. Its web site is here Crescent Point Energy.
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 $12.3m of insider selling and $2.4M of insider buying, with net insider selling of $9.9M of net insider selling. Net insider selling is just 0.6% of the company's market cap. There is insider ownership with the CEO owns shares worth around $45.8M, the CFO owns shares worth around $8.2M and the Chairman owning shares worth around $23.2M.
When looking at the stock price today, this price is down. Stock price today is $27.84 and I used this as the basis for my report. Also note that because the stock price is down, the dividend yield is higher than I reported on yesterday.
The problem with looking at Price/Earnings Ratios for the last 5 years is that earnings have fluctuated and gone negative over this period. The P/E Ratios for the last 10 years is more viable, with the low, median and high median P/E Ratios at 14.90, 17.98 and 21.06. The current P/E Ratio is 22.82 based on a stock price of $27.84 and 2014 EPS estimate of $1.22. By this stock price test the stock price is relatively high.
I get a Graham Price of $22.94. The current P/GP Ratio is 1.21 based on a stock price of $27.84. The low, median and high median P/GP Ratios are 1.56, 1.79 and 2.02. By this stock price test the stock price is reasonable. However, the GP price has fluctuated greatly also due to the fluctuation on EPS.
The 10 year median Price/Book Value per Share Ratio is 1.86 and the current P/B Ratio is 1.45 based on a BVPS of $19.17 and a stock price of $27.84. The current P/B Ratio is some 22% below the 10 year median P/B Ratio. This stock price test suggests that the stock price is cheap.
The 5 year median Dividend yield is 6.96% and the current Dividend Yield at 9.91% is some 43% lower. Also, if you look at the historical median Dividend Yield at 8.57%, you have a value some 16% lower in the current Dividend Yield. This testing suggests that the stock price is cheap to reasonable.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. The consensus would be a Buy recommendation. The 12 month consensus stock price is $46.50. This would imply a total return of 76.94% with 9.91% from dividends and $67.03% from capital gains.
The Motley Fool has an interesting article on why you should not buy a stock just for the dividend. Dividends, no matter how good cannot make up for capital losses. This company is talked about on BNN. The siteTicker Report talks about a recent TD Securities drop in their target price from $48.00 to $46.00.
Sound bit for Twitter and StockTwits is: Price is cheap to reasonable. I think it is a buy because the price of oil is down considerably and oil stocks are probably depressed. However, I think that the 12 month consensus stock price is rather high. I do not see this happening within a year. You could buy this as a bargain, but I think you would have to be patient to see good results in the future. See my spreadsheet at cpg.htm.
This is the second of two parts. The first part was posted on Wednesday, December 3, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
Crescent Point Energy Corp. is a Canada-based oil and gas exploration, development and production company. The Company is a conventional oil and gas producer with assets focused in properties consisting of assets light and medium oil and natural gas reserves in Western Canada and the United States. Its web site is here Crescent Point Energy.
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, December 3, 2014
Crescent Point Energy Corp.
On my other blog I am today writing about possible cheap dividend stocks for December 2014 continue...
I do not own this stock of Crescent Point Energy Corp. (TSX-CPG, OTC-CSCTF). I got this idea to look into this stock from another blogger, My Own Advisor and his November 2012 blog entry on great Canadian dividend paying stocks. I also noticed that several people at the Toronto Money Show of 2013 mentioned this stock.
This is another old income trust company. They have not raised their dividends since they changed to a corporation in 2009. They can cover their dividends with cash flow, but not with earnings. The 5 year median Dividend Payout Ratio for EPS is 484% and for CFPS is 66%. The DPR for 2013 for EPS was at 746% and the CFPS was at 54%.
The company did raise dividends while it was an income trust. I do not see it raising dividends anytime soon, but they are probably not going to cut them either. There does not seem to be any analysts saying dividends will but cut. An article at Motley Fool addresses this question.
Their final remarks in the Motley Fool article is: "While it is likely that the company will continue to pay dividends for the foreseeable future, the uncertainty created by the sensitivity of the cash flow and profit to volatile and unpredictable oil prices makes this investment unsuitable for income seeking investors."
The outstanding shares have increased a lot over the past 5 and 10 years. Outstanding shares are up 26% and 34% per year over the past 5 and 10 years. Shares have increased due to DRIPs, Stock Options and Share Issues. There has been a lot of issuance of shares. This makes the per share valuations quite important.
Revenues and cash flow has been growing but over the past 5 years growth in per share values has not been good. Net Income has grown over the past 10 years, but not over the past 5 years. There has been no growth in EPS over the past 5 and 10 years.
Revenue is up by 24% and 47% per year over the past 5 and 10 years. Revenue per share is down by 1.6% and up by 9.8% per year over the past 5 and 10 years. Cash Flow has grown by 28% and 49% per year over the past 5 and 10 years, but CFPS is only up by 1.8% and 11.6% per year over the past 5 and 10 years.
Net Income is down by 21% and up by 32% per year over the past 5 and 10 years. EPS is down by 2.8% and by 37% per year over the past 5 and 10 years. Analysts expect EPS to be at $1.22, an increase of 230% over the $0.37 made in 2012. Certainly, the EPS has been growing this year and the EPS over the 12 month period to September 2014 is $0.90, an increase of 137% over EPS for 2013.
Shareholders have done well over the past 5 and 10 years with total returns at 20.24% and 24.23% per year over these periods. The capital gain portion of this total return was at 10.62% and 11.66% per year. The dividend portion of this total return was at 9.62% and 12.57% per year.
The Return on Equity has been very poor over the past 5 years, with the highest at 3.4% in 2011. The ROE for 2013 was just 1.7%. The ROE on comprehensive income was a bit higher at 2.8%.
The Liquidity is low at just 0.38 for 2013. It has always been low as it has a 5 year median of 0.47. When this ratio is below 1.00 it means that the current assets cannot cover the current liabilities. If you add in cash flow after dividends, this ratio rises to 1.26, still a rather low ratio, but a better one. This means that the company needs cash flow to cover current liabilities. This is a place where this stock is vulnerable.
The Debt Ratio is strong at 3.0. This ratio has always been good and the 5 year median value is 3.36. The Leverage and Debt/Equity Ratios are good also with values of 1.50 and 0.50, respectively.
Sound bit for Twitter and StockTwits is: Dividend paying oil company. Certainly the dividend is very good at 9.30%. However, you got to wonder about it safety because of the falling oil prices. It is hard to know what the future holds for oil prices. Certainly, they are not going up in the near future. I depend on dividend income, so I would not be buying this stock at present. See my spreadsheet at cpg.htm.
This is the first of two parts. The second part will be posted on Thursday, December 4, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price. Hopefully I will post tomorrow. I am having some problems with my computer and might have to take it into a repair shop.
Crescent Point Energy Corp. is a Canada-based oil and gas exploration, development and production company. The Company is a conventional oil and gas producer with assets focused in properties consisting of assets light and medium oil and natural gas reserves in Western Canada and the United States. Its web site is here Crescent Point Energy.
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 Crescent Point Energy Corp. (TSX-CPG, OTC-CSCTF). I got this idea to look into this stock from another blogger, My Own Advisor and his November 2012 blog entry on great Canadian dividend paying stocks. I also noticed that several people at the Toronto Money Show of 2013 mentioned this stock.
This is another old income trust company. They have not raised their dividends since they changed to a corporation in 2009. They can cover their dividends with cash flow, but not with earnings. The 5 year median Dividend Payout Ratio for EPS is 484% and for CFPS is 66%. The DPR for 2013 for EPS was at 746% and the CFPS was at 54%.
The company did raise dividends while it was an income trust. I do not see it raising dividends anytime soon, but they are probably not going to cut them either. There does not seem to be any analysts saying dividends will but cut. An article at Motley Fool addresses this question.
Their final remarks in the Motley Fool article is: "While it is likely that the company will continue to pay dividends for the foreseeable future, the uncertainty created by the sensitivity of the cash flow and profit to volatile and unpredictable oil prices makes this investment unsuitable for income seeking investors."
The outstanding shares have increased a lot over the past 5 and 10 years. Outstanding shares are up 26% and 34% per year over the past 5 and 10 years. Shares have increased due to DRIPs, Stock Options and Share Issues. There has been a lot of issuance of shares. This makes the per share valuations quite important.
Revenues and cash flow has been growing but over the past 5 years growth in per share values has not been good. Net Income has grown over the past 10 years, but not over the past 5 years. There has been no growth in EPS over the past 5 and 10 years.
Revenue is up by 24% and 47% per year over the past 5 and 10 years. Revenue per share is down by 1.6% and up by 9.8% per year over the past 5 and 10 years. Cash Flow has grown by 28% and 49% per year over the past 5 and 10 years, but CFPS is only up by 1.8% and 11.6% per year over the past 5 and 10 years.
Net Income is down by 21% and up by 32% per year over the past 5 and 10 years. EPS is down by 2.8% and by 37% per year over the past 5 and 10 years. Analysts expect EPS to be at $1.22, an increase of 230% over the $0.37 made in 2012. Certainly, the EPS has been growing this year and the EPS over the 12 month period to September 2014 is $0.90, an increase of 137% over EPS for 2013.
Shareholders have done well over the past 5 and 10 years with total returns at 20.24% and 24.23% per year over these periods. The capital gain portion of this total return was at 10.62% and 11.66% per year. The dividend portion of this total return was at 9.62% and 12.57% per year.
The Return on Equity has been very poor over the past 5 years, with the highest at 3.4% in 2011. The ROE for 2013 was just 1.7%. The ROE on comprehensive income was a bit higher at 2.8%.
The Liquidity is low at just 0.38 for 2013. It has always been low as it has a 5 year median of 0.47. When this ratio is below 1.00 it means that the current assets cannot cover the current liabilities. If you add in cash flow after dividends, this ratio rises to 1.26, still a rather low ratio, but a better one. This means that the company needs cash flow to cover current liabilities. This is a place where this stock is vulnerable.
The Debt Ratio is strong at 3.0. This ratio has always been good and the 5 year median value is 3.36. The Leverage and Debt/Equity Ratios are good also with values of 1.50 and 0.50, respectively.
Sound bit for Twitter and StockTwits is: Dividend paying oil company. Certainly the dividend is very good at 9.30%. However, you got to wonder about it safety because of the falling oil prices. It is hard to know what the future holds for oil prices. Certainly, they are not going up in the near future. I depend on dividend income, so I would not be buying this stock at present. See my spreadsheet at cpg.htm.
This is the first of two parts. The second part will be posted on Thursday, December 4, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price. Hopefully I will post tomorrow. I am having some problems with my computer and might have to take it into a repair shop.
Crescent Point Energy Corp. is a Canada-based oil and gas exploration, development and production company. The Company is a conventional oil and gas producer with assets focused in properties consisting of assets light and medium oil and natural gas reserves in Western Canada and the United States. Its web site is here Crescent Point Energy.
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, December 2, 2014
PFB Corp. 2
I do not own this stock of PFB Corp. (TSX-PFB, OTC-PFBOF). I am following this stock as I read a positive article on this stock in November 2009 and thought I would do a spreadsheet on it. This stock is a dividend paying small cap stock. The article said that this stock would be good for long-term gains and rising dividends. This is the thing with small cap stock; you can get a blend of capital gains and rising dividends in the long term if the company is successful.
When I look at insider trading I find no insider selling and no insider buying. There is some insider ownership with the Chairman and CEO owning shares worth around $14M, a director owning shares worth around 2.8M and Edward James Kernaghan, a 10% holding owning shares worth around $6M.
The 5 year low, median and high median Price/Earnings Ratios are 10.23, 12.51 and 14.79. The 10 year corresponding P/E Ratios are a bit higher at 11.16, 14.04 and 17.23. The current P/E ratio, using the last 3 months EPS and a stock price of $4.31 is at 18.74. This test suggests that the stock price is relatively high. On an absolute basis a P/E Ratio of 18.74 is not a high P/E Ratio.
I get a Graham price of $5.65. The 10 year low, median and high median Price/Graham Price Ratios are 0.72, 0.93 and 1.10. The current P/GP Ratio at 0.76 based on a stock price $4.31 says that the stock price is relatively cheap. However, the Graham Price has varied a lot with the last 3 years at $8.39, $1.02 and $12.03. If you remove the special gain from 2013's GP you get one of $4.29.
I get a 10 year Price/Book Value per Share Ratio of 0.90 and a current P/B Ratio of 0.70. The current P/B Ratio is based on a stock price of $4.31 and a BVPS of $6.17. The current P/B Ratio is 27% lower than the 10 year P/B Ratio. This test suggests that the stock price is cheap. Also a P/B Ratio of 0.70 is very low. It means that the stock price is lower than the company's theoretical break up price.
One problem with the P/B Ratios is that the Book Value (and BVPS) hit a peak in 2010 and has been tracking down hill since then. The BVPS is up by 2.7% per year over the past 10 years but it is essentially flat over the past 5 years.
The dividend yield test tells a good price story. The historically high Dividend Yield is 5.44% and the current Dividend yield is higher by 2.4% at 5.57% based on dividend of $0.24 and a stock price of $4.31. This test suggests that the stock is historically cheap.
There does not appear to be any analysts following this stock.
In June of this year, this company was named as one of 10 clean energy stocks for 2014 by Alternative Energy Stocks Alternative Energy Stocks site. There was recent insider buying by insider Edward James Kernaghan. This has not seemed to have shown up in the insider trading report.
Sound bit for Twitter and StockTwits is: Stock price is relatively cheap. This company has good debt ratios so it can withstand some hard times. The other notable thing is its willingness to reward shareholders when it has money as shown by a history of special dividends. See my spreadsheet at pfb.htm.
This is the second of two parts. The first part was posted on Monday, December 01, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.
PFB Corporation, through its wholly-owned subsidiaries, is a vertically-integrated manufacturer of proprietary insulating building products that are based on expanded polystyrene (EPS) technology. This expanded polystyrene (EPS) rigid insulation is used in a wide variety of residential and commercial construction projects across North America. It was founded in 1968 as Plasti-Fab Ltd, now a subsidiary of PFB. Directors and officers own 57% of the issued and outstanding common shares as of December 31, 2008. Its web site is here PFB Corp .
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 no insider selling and no insider buying. There is some insider ownership with the Chairman and CEO owning shares worth around $14M, a director owning shares worth around 2.8M and Edward James Kernaghan, a 10% holding owning shares worth around $6M.
The 5 year low, median and high median Price/Earnings Ratios are 10.23, 12.51 and 14.79. The 10 year corresponding P/E Ratios are a bit higher at 11.16, 14.04 and 17.23. The current P/E ratio, using the last 3 months EPS and a stock price of $4.31 is at 18.74. This test suggests that the stock price is relatively high. On an absolute basis a P/E Ratio of 18.74 is not a high P/E Ratio.
I get a Graham price of $5.65. The 10 year low, median and high median Price/Graham Price Ratios are 0.72, 0.93 and 1.10. The current P/GP Ratio at 0.76 based on a stock price $4.31 says that the stock price is relatively cheap. However, the Graham Price has varied a lot with the last 3 years at $8.39, $1.02 and $12.03. If you remove the special gain from 2013's GP you get one of $4.29.
I get a 10 year Price/Book Value per Share Ratio of 0.90 and a current P/B Ratio of 0.70. The current P/B Ratio is based on a stock price of $4.31 and a BVPS of $6.17. The current P/B Ratio is 27% lower than the 10 year P/B Ratio. This test suggests that the stock price is cheap. Also a P/B Ratio of 0.70 is very low. It means that the stock price is lower than the company's theoretical break up price.
One problem with the P/B Ratios is that the Book Value (and BVPS) hit a peak in 2010 and has been tracking down hill since then. The BVPS is up by 2.7% per year over the past 10 years but it is essentially flat over the past 5 years.
The dividend yield test tells a good price story. The historically high Dividend Yield is 5.44% and the current Dividend yield is higher by 2.4% at 5.57% based on dividend of $0.24 and a stock price of $4.31. This test suggests that the stock is historically cheap.
There does not appear to be any analysts following this stock.
In June of this year, this company was named as one of 10 clean energy stocks for 2014 by Alternative Energy Stocks Alternative Energy Stocks site. There was recent insider buying by insider Edward James Kernaghan. This has not seemed to have shown up in the insider trading report.
Sound bit for Twitter and StockTwits is: Stock price is relatively cheap. This company has good debt ratios so it can withstand some hard times. The other notable thing is its willingness to reward shareholders when it has money as shown by a history of special dividends. See my spreadsheet at pfb.htm.
This is the second of two parts. The first part was posted on Monday, December 01, 2014 and is available here. The first part talks about the stock and the second part talks about the stock price.
I will have only one entry for this stock as I must do on some stock because I cover too many stocks to do double entries on all that I follow.
PFB Corporation, through its wholly-owned subsidiaries, is a vertically-integrated manufacturer of proprietary insulating building products that are based on expanded polystyrene (EPS) technology. This expanded polystyrene (EPS) rigid insulation is used in a wide variety of residential and commercial construction projects across North America. It was founded in 1968 as Plasti-Fab Ltd, now a subsidiary of PFB. Directors and officers own 57% of the issued and outstanding common shares as of December 31, 2008. Its web site is here PFB Corp .
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, December 1, 2014
PFB Corp.
On my other blog I am today writing about possible cheap dividend stocks for December 2014 continue...
I do not own this stock of PFB Corp. (TSX-PFB, OTC-PFBOF). I am following this stock as I read a positive article on this stock in November 2009 and thought I would do a spreadsheet on it. This stock is a dividend paying small cap stock. The article said that this stock would be good for long-term gains and rising dividends. This is the thing with small cap stock; you can get a blend of capital gains and rising dividends in the long term if the company is successful.
This stock looked a lot more interesting in 2009. It had a couple of dividend rises in its past and a habit of special dividends. Unfortunately, since that time dividends have been flat and until 2003 no special dividends have been paid. The special dividend paid in 2013 was 4 times the normal annual dividend, so this was good.
I realize that a lot of companies have had a hard time dealing with the 2008/09 recession, but the fact remains that there is not much of dividend increases for this company. Dividends are flat over the past 5 years and are up by 4.8% per year over the past 10 years.
Shareholders have not done that well over the past 5 and 10 year and only have a positive return because of dividends. The total returns over the past 5 and 10 years are at 4.07% and 5.81% per year. The dividend portion of this return is at 8.65% and 7.09% per year. There was capital loss of 4.59% and 1.27% per year over the past 5 and 10 years.
Note that the $1.00 special dividend in 2013 made possible such high dividend rates. They made a capital gain in 2013 and this is why the EPS for 2013 was $1.02. Without the capital gain they made in 2013, EPS would be $0.13.
Outstanding share have not changed much over the past 5 and 10 years with shares increasing at 0.5% and 1.7% per year over the past 5 and 10 years. Shares have increased due to Share Issues and Stock Options and have decreased due to Buy Backs.
Growth has not been good for this company, especially over the past 5 years. Revenue is us by 1.2% and 7.4% per year over the past 5 and 10 years. Revenue per Share is up by 0.7% and 5.6% per year over these periods.
Earnings per Share have increased by 56% and 10% over the past 5 and 10 years. However, if you insider the EPS for 2013 at $.13 that is without the special gain then growth over the past 5 year is at 3.4% per year and EPS would be down by 10.4% over the past 10 years.
The picture is not very good looking at cash flows. The Cash Flow per Share is down by 3% and 4.1% per year over the past 5 and 10 years.
The only year with a Return on Equity over 10% in the past 5 years is 2013 with an ROE at 16.1%. However, without the special gain, ROE for 2013 would be only 2%.
One bright point for this stock is debt ratios and they are all good and have been good. The Liquidity Ratio for 2013 was 2.65 and it has a 5 year median value of 2.61. The Debt Ratio was 2.60 and it has a 5 year median value of 3.32. The Leverage and Debt/Equity Ratios for 2013 was at 1.63 and 0.63. The 5 year median values are 1.43 and 0.43, respectively.
Sound bit for Twitter and StockTwits is: Dividend Paying Small Cap. I think that the debt ratios are a good sign because good debt ratios can see a company through hard times. See my spreadsheet at pfb.htm.
This is the first of two parts. The second part will be posted on Tuesday, December 2, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
PFB Corporation, through its wholly-owned subsidiaries, is a vertically-integrated manufacturer of proprietary insulating building products that are based on expanded polystyrene (EPS) technology. This expanded polystyrene (EPS) rigid insulation is used in a wide variety of residential and commercial construction projects across North America. It was founded in 1968 as Plasti-Fab Ltd, now a subsidiary of PFB. Directors and officers own 57% of the issued and outstanding common shares as of December 31, 2008. Its web site is here PFB Corp.
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 PFB Corp. (TSX-PFB, OTC-PFBOF). I am following this stock as I read a positive article on this stock in November 2009 and thought I would do a spreadsheet on it. This stock is a dividend paying small cap stock. The article said that this stock would be good for long-term gains and rising dividends. This is the thing with small cap stock; you can get a blend of capital gains and rising dividends in the long term if the company is successful.
This stock looked a lot more interesting in 2009. It had a couple of dividend rises in its past and a habit of special dividends. Unfortunately, since that time dividends have been flat and until 2003 no special dividends have been paid. The special dividend paid in 2013 was 4 times the normal annual dividend, so this was good.
I realize that a lot of companies have had a hard time dealing with the 2008/09 recession, but the fact remains that there is not much of dividend increases for this company. Dividends are flat over the past 5 years and are up by 4.8% per year over the past 10 years.
Shareholders have not done that well over the past 5 and 10 year and only have a positive return because of dividends. The total returns over the past 5 and 10 years are at 4.07% and 5.81% per year. The dividend portion of this return is at 8.65% and 7.09% per year. There was capital loss of 4.59% and 1.27% per year over the past 5 and 10 years.
Note that the $1.00 special dividend in 2013 made possible such high dividend rates. They made a capital gain in 2013 and this is why the EPS for 2013 was $1.02. Without the capital gain they made in 2013, EPS would be $0.13.
Outstanding share have not changed much over the past 5 and 10 years with shares increasing at 0.5% and 1.7% per year over the past 5 and 10 years. Shares have increased due to Share Issues and Stock Options and have decreased due to Buy Backs.
Growth has not been good for this company, especially over the past 5 years. Revenue is us by 1.2% and 7.4% per year over the past 5 and 10 years. Revenue per Share is up by 0.7% and 5.6% per year over these periods.
Earnings per Share have increased by 56% and 10% over the past 5 and 10 years. However, if you insider the EPS for 2013 at $.13 that is without the special gain then growth over the past 5 year is at 3.4% per year and EPS would be down by 10.4% over the past 10 years.
The picture is not very good looking at cash flows. The Cash Flow per Share is down by 3% and 4.1% per year over the past 5 and 10 years.
The only year with a Return on Equity over 10% in the past 5 years is 2013 with an ROE at 16.1%. However, without the special gain, ROE for 2013 would be only 2%.
One bright point for this stock is debt ratios and they are all good and have been good. The Liquidity Ratio for 2013 was 2.65 and it has a 5 year median value of 2.61. The Debt Ratio was 2.60 and it has a 5 year median value of 3.32. The Leverage and Debt/Equity Ratios for 2013 was at 1.63 and 0.63. The 5 year median values are 1.43 and 0.43, respectively.
Sound bit for Twitter and StockTwits is: Dividend Paying Small Cap. I think that the debt ratios are a good sign because good debt ratios can see a company through hard times. See my spreadsheet at pfb.htm.
This is the first of two parts. The second part will be posted on Tuesday, December 2, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
PFB Corporation, through its wholly-owned subsidiaries, is a vertically-integrated manufacturer of proprietary insulating building products that are based on expanded polystyrene (EPS) technology. This expanded polystyrene (EPS) rigid insulation is used in a wide variety of residential and commercial construction projects across North America. It was founded in 1968 as Plasti-Fab Ltd, now a subsidiary of PFB. Directors and officers own 57% of the issued and outstanding common shares as of December 31, 2008. Its web site is here PFB Corp.
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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