On my other blog I am today writing about Mission Statements continue...
I do not own this stock of Bank of Nova Scotia (TSX-BNS, NYSE-BNS). This is one of the big banks of Canada. All our big banks are dividend growth companies.
For this bank, the dividends were only held steady for 2009 and 2010. They also have a habit of increasing the dividends twice a year. The most recent dividend increase was for 3.1% and this occurred last year. The total increase in dividends for 2014 was 7.1%.
For this bank the dividend yield is good and the dividend increases are currently moderate. The current dividend yield is 4.29% based on a stock price of $61.56. The dividend increases are moderate at 5.5% and 8.8% per year over the past 5 and 10 years.
The Dividend Payout Ratios are also fine on this bank with a 5 year median DPR for EPS at 45% and the 2014 DPR for EPS also at 45%. If the current dividend is increased at the rate of 5.5% per year over the next 5 and 10 years, then you could earn 7.3% and 9.6% yield on stock bought today. Past dividend increases were better with a median 11.2% and 23.2% yield on stock purchased 5 and or 10 years previous.
The outstanding shares have increased at the rate of 3.5% and 1.9% per year over the past 5 and 10 years. If I were a shareholder, I would think that per share values, like Revenue per Share and Earnings per Share were more important the Revenue and Earnings. For example, the Revenue has increased by 13.2% and 9.2% per year over the past 5 and 10 years. However, Revenue per Share has only increased by 9.4% and 7.2% over the same periods.
With this bank, the Return on Equity has not been below 10% over the past 20 years. However, it has been lower in the past, for example in 1994 it was 9.4% and 7.9% in 1989. The data I have on this bank goes back to 1988.
If I had bought this bank in 1995 as I did the Royal Bank, my total return would be 18.75% per year with 12.20% from capital gains and 6.55% from dividends. It has not done was well over the past 5 and 10 years. The share price did not really change between 2013 and 2014 and the share price is down 7.2% year to date. The 5 and 10 years total return today on this sock is at 5.51% and 6.83% with 1.52% and 2.93% from capital gains and 4.00% and 3.91% from dividends.
The Debt Ratio is better on this bank at 1.07 than the same ratio for Bank of Montreal (TSX-BMO) and Royal Bank (TSX-RY) which are both at 1.06.
Sound bite for Twitter and StockTwits is: Bank Dividend Growth Stock. See my spreadsheet at bns.htm.
This is the first of two parts. The second part will be posted on Thursday, January 15, 2015 and will be available here. The first part talks about the stock and the second part talks about the stock price.
The Bank of Nova Scotia is a bank. They offer personal and corporate banking and wealth management services in Canada and US, which includes looking after banking, financing, investing, credit card and insurance needs. They offer mortgages and mutual funds and they offer full service and on-line brokerage services. It is an international bank having banking in Canada and some 40 other countries around the world in the geographic regions of the Caribbean and Central America, Mexico, Latin America and Asia. Its web site is here Scotia Bank.
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, January 14, 2015
Tuesday, January 13, 2015
Royal Bank of Canada 2
I own this stock of Royal Bank of Canada (TSX-RY, NYSE-RY). In 1995 I bought this stock and this is the second bank stock that I have bought. At that time this stock was on Mike Higgs' list of Canadian Dividend Growth Stocks and on the dividend lists I followed as were all the banks.
When I look at insider trading I find $2.6M of insider selling and $2.6M of net insider selling. There is a very small amount of insider buying. Insider selling is 0.002% of market cap that is way under 1% of the market cap of this bank and is therefore a relatively very minor amount.
There is some insider ownership with the CEO owning shares worth around $1.6M, the CFO owning shares worth around $1.4M and the Chairman owning shares worth around 2.5M. Of course, as a percentage of the market cap insider ownership is relatively very minor.
I cannot find a mission statement on their website but statements there seem to hit all points:
I get a Graham Price of $69.94. The 10 year low, median and high median Price/Graham Price Ratios are 1.03, 1.21 and 1.41. The current P/GP Ratio is 1.11 based on a stock price of $77.48. This stock price test suggests that the stock is priced relatively reasonable.
I get a 10 year Price/Book Value per Share Ratio of 2.25. The current P/B Ratio is 2.30 based on a stock price of $77.48 and BVPS of $33.71. The current P/B Ratio is just 2% higher than the 10 year median. This stock price test suggests that the stock is priced relatively reasonable.
The current dividend yield is 3.87% based on a dividend of $3.00 and a stock price of $77.48. The 5 year median dividend yield is 3.91% and the historical median dividend yield is 3.92%. The current dividend yield is just 1% and 1.2% lower than these dividend yields. This stock price test suggests that the stock is priced relatively reasonable.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. The consensus recommendation would be a Buy. The 12 month stock price consensus is $87.00. This implies a total return of 16.16% with 3.87% from dividends and 12.29% from capital gains.
In a recent report the Motley Fool thought this bank was expensive at P/E Ratio of 13.5. This Financial Post article talks about RBC selling its Swiss banking operations. Another Financial Post article talks about RBC settling a lawsuit with U.S. regulators. In July 2013 the Dividend Growth Investing and Retirement blogger did a review of this bank.
Sound bite for Twitter and StockTwits is: On my tests stock price looks reasonable. See my spreadsheet at ry.htm.
This is the second of two parts. The first part was posted on Monday, January 12, 2015 and is available here. The first part talks about the stock and the second part talks about the stock price.
Royal Bank of Canada (RY on TSX and NYSE) and its subsidiaries operate under the master brand name RBC. They are one of Canada's largest banks as measured by assets and market capitalization, and are among the largest banks in the world, based on market capitalization. They provide diversified financial services companies, and provide personal and commercial banking, wealth management services, insurance, corporate and investment banking and transaction processing services on a global basis. They have personal, business, public sector and institutional clients through offices in Canada, the U.S. and 56 other countries. Its web site is here RBC.
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 $2.6M of insider selling and $2.6M of net insider selling. There is a very small amount of insider buying. Insider selling is 0.002% of market cap that is way under 1% of the market cap of this bank and is therefore a relatively very minor amount.
There is some insider ownership with the CEO owning shares worth around $1.6M, the CFO owning shares worth around $1.4M and the Chairman owning shares worth around 2.5M. Of course, as a percentage of the market cap insider ownership is relatively very minor.
I cannot find a mission statement on their website but statements there seem to hit all points:
- Always earning the right to be our clients' first choice
- We give our people the tools and support to grow and enrich their careers.
- Our first priority is doing our jobs as bankers well, and serving our clients with integrity, every day.
- At RBC, we also take our responsibilities in the community, marketplace, workplace and to the planet seriously.
- We are committed to delivering excellent long-term returns to our shareholders.
I get a Graham Price of $69.94. The 10 year low, median and high median Price/Graham Price Ratios are 1.03, 1.21 and 1.41. The current P/GP Ratio is 1.11 based on a stock price of $77.48. This stock price test suggests that the stock is priced relatively reasonable.
I get a 10 year Price/Book Value per Share Ratio of 2.25. The current P/B Ratio is 2.30 based on a stock price of $77.48 and BVPS of $33.71. The current P/B Ratio is just 2% higher than the 10 year median. This stock price test suggests that the stock is priced relatively reasonable.
The current dividend yield is 3.87% based on a dividend of $3.00 and a stock price of $77.48. The 5 year median dividend yield is 3.91% and the historical median dividend yield is 3.92%. The current dividend yield is just 1% and 1.2% lower than these dividend yields. This stock price test suggests that the stock is priced relatively reasonable.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. The consensus recommendation would be a Buy. The 12 month stock price consensus is $87.00. This implies a total return of 16.16% with 3.87% from dividends and 12.29% from capital gains.
In a recent report the Motley Fool thought this bank was expensive at P/E Ratio of 13.5. This Financial Post article talks about RBC selling its Swiss banking operations. Another Financial Post article talks about RBC settling a lawsuit with U.S. regulators. In July 2013 the Dividend Growth Investing and Retirement blogger did a review of this bank.
Sound bite for Twitter and StockTwits is: On my tests stock price looks reasonable. See my spreadsheet at ry.htm.
This is the second of two parts. The first part was posted on Monday, January 12, 2015 and is available here. The first part talks about the stock and the second part talks about the stock price.
Royal Bank of Canada (RY on TSX and NYSE) and its subsidiaries operate under the master brand name RBC. They are one of Canada's largest banks as measured by assets and market capitalization, and are among the largest banks in the world, based on market capitalization. They provide diversified financial services companies, and provide personal and commercial banking, wealth management services, insurance, corporate and investment banking and transaction processing services on a global basis. They have personal, business, public sector and institutional clients through offices in Canada, the U.S. and 56 other countries. Its web site is here RBC.
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, January 12, 2015
Royal Bank of Canada
On my other blog I am today writing about Shareholder Value Maximization continue...
I own this stock of Royal Bank of Canada (TSX-RY, NYSE-RY). In 1995 I bought this stock and this is the second bank stock that I have bought. At that time this stock was on Mike Higgs' list of Canadian Dividend Growth Stocks and on the dividend lists I followed as were all the banks.
I have dividend information going back to 1986 for this bank. In years after 2008 is not the first time that dividends have been held steady. It would seem that this also occurred for this bank in the early 1990's. However, considering that dividends were held steady from 2008 to 2011 inclusive, the dividend growth is still moderate over the past 5 and 10 years at 6.7% and 10.6% per year.
Banks tend to raise dividend more than once within a financial year. For example in 2014 dividends were raised by 6.3% at the beginning of the period and then by another 6% half way through the year. The last dividend increase was for 5.6% at the start of 2015.
The 5 year median Dividend Payout Ratio for EPS is at 52%. The DPR for 2014 was at 46%. This stock has an historical median DPR of 39%. However, DPR for EPS has been declining since 2009 when it hit a high of 77.8%. At the same time dividend increases have been growing from the total of 4% increase of 2011 to the total 12.2% increase in 2014.
What I have noticed for the Banks is that the Debt Ratios used to be around 1.04 prior to 2008and now mostly are at 1.06. However, the Debt Ratios have varied over time. The Debt Ratios for banks have always been quite different than most other companies where you expect a good Debt Ratio to be at 1.50.
The other thing about banks is that the Leverage and Debt/Equity Ratios tend to be quite high. For this bank they are at 17.26 and 16.26 respectively in 2014. The 10 year median ratios are 17.84 and 16.84. This is pretty much normal for a bank.
The Return on Equity has been quite good for this Bank. It has not been below 10% over the past 20 years. The ROE for 2014 was 16.3% and the 5 year median ROE is at 16.2%. The ROE on comprehensive Income was 20.2% in 2014 and its 5 year median was 19.6%.
I have had this stock since 1995 and I have received $25.68 per share in dividends. The original stock price cost is at $7.26 so my share cost has long been covered by dividend income. My total return for this stock is at 18.48% per year with 14.12% from capital gains and 4.36% from dividends. I have had this stock for just over 18 years.
Sound bite for Twitter and StockTwits is: Bank Dividend Growth Stock. I expect that especially in the near future that the return on this bank will not be as good as in the past. The 5 and 10 year total return on this stock is at 12.24% and 9.40% per year with 5.17% and 5.70% from capital gains and 4.07% and 3.70% from dividends. See my spreadsheet at ry.htm.
This is the first of two parts. The second part will be posted on Tuesday, January 13, 2015 and will be available here. The first part talks about the stock and the second part talks about the stock price.
Royal Bank of Canada (RY on TSX and NYSE) and its subsidiaries operate under the master brand name RBC. They are one of Canada's largest banks as measured by assets and market capitalization, and are among the largest banks in the world, based on market capitalization. They provide diversified financial services companies, and provide personal and commercial banking, wealth management services, insurance, corporate and investment banking and transaction processing services on a global basis. They have personal, business, public sector and institutional clients through offices in Canada, the U.S. and 56 other countries. Its web site is here RBC.
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 Royal Bank of Canada (TSX-RY, NYSE-RY). In 1995 I bought this stock and this is the second bank stock that I have bought. At that time this stock was on Mike Higgs' list of Canadian Dividend Growth Stocks and on the dividend lists I followed as were all the banks.
I have dividend information going back to 1986 for this bank. In years after 2008 is not the first time that dividends have been held steady. It would seem that this also occurred for this bank in the early 1990's. However, considering that dividends were held steady from 2008 to 2011 inclusive, the dividend growth is still moderate over the past 5 and 10 years at 6.7% and 10.6% per year.
Banks tend to raise dividend more than once within a financial year. For example in 2014 dividends were raised by 6.3% at the beginning of the period and then by another 6% half way through the year. The last dividend increase was for 5.6% at the start of 2015.
The 5 year median Dividend Payout Ratio for EPS is at 52%. The DPR for 2014 was at 46%. This stock has an historical median DPR of 39%. However, DPR for EPS has been declining since 2009 when it hit a high of 77.8%. At the same time dividend increases have been growing from the total of 4% increase of 2011 to the total 12.2% increase in 2014.
What I have noticed for the Banks is that the Debt Ratios used to be around 1.04 prior to 2008and now mostly are at 1.06. However, the Debt Ratios have varied over time. The Debt Ratios for banks have always been quite different than most other companies where you expect a good Debt Ratio to be at 1.50.
The other thing about banks is that the Leverage and Debt/Equity Ratios tend to be quite high. For this bank they are at 17.26 and 16.26 respectively in 2014. The 10 year median ratios are 17.84 and 16.84. This is pretty much normal for a bank.
The Return on Equity has been quite good for this Bank. It has not been below 10% over the past 20 years. The ROE for 2014 was 16.3% and the 5 year median ROE is at 16.2%. The ROE on comprehensive Income was 20.2% in 2014 and its 5 year median was 19.6%.
I have had this stock since 1995 and I have received $25.68 per share in dividends. The original stock price cost is at $7.26 so my share cost has long been covered by dividend income. My total return for this stock is at 18.48% per year with 14.12% from capital gains and 4.36% from dividends. I have had this stock for just over 18 years.
Sound bite for Twitter and StockTwits is: Bank Dividend Growth Stock. I expect that especially in the near future that the return on this bank will not be as good as in the past. The 5 and 10 year total return on this stock is at 12.24% and 9.40% per year with 5.17% and 5.70% from capital gains and 4.07% and 3.70% from dividends. See my spreadsheet at ry.htm.
This is the first of two parts. The second part will be posted on Tuesday, January 13, 2015 and will be available here. The first part talks about the stock and the second part talks about the stock price.
Royal Bank of Canada (RY on TSX and NYSE) and its subsidiaries operate under the master brand name RBC. They are one of Canada's largest banks as measured by assets and market capitalization, and are among the largest banks in the world, based on market capitalization. They provide diversified financial services companies, and provide personal and commercial banking, wealth management services, insurance, corporate and investment banking and transaction processing services on a global basis. They have personal, business, public sector and institutional clients through offices in Canada, the U.S. and 56 other countries. Its web site is here RBC.
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, January 9, 2015
Bank of Montreal 2
I own this stock of Bank of Montreal (TSX-BMO, NYSE-BMO). When I bought this stock in 1983, I thought it was the best bank stock to buy at that time.
When I look at insider trading I find some $35.5M of insider selling and $34.5M of net insider selling. Insider buying is minor at $1M. Insider selling is only at 0.07% of market cap and is therefore a relatively small number.
Outstanding shares were increased by some 2.133M shares for options last year. These options had a book value of $131M and this number of shares would have been worth around $173.2M at the end of October 2014. This number of shares is 0.33% of the outstanding shares and is a relatively small amount.
There is some insider ownership with the CEO having shares worth around $19.5M and an officer having shares worth around $16.2M. However, insider ownership is way below 1% and is therefore minor.
BMO does not have a mission statement per se, but they do claim their approach involves the following. It does cover main points for a mission statement.
I get a Graham Price of $85.55. The 10 year Price/Graham Price Ratios are 0.82, 0.93 and 1.12. The current P/GP Ratio is 0.93 based on a stock price $79.56. This stock price test says that the stock is at a relatively reasonable price. On an absolute basis, a P/GP under 1.00 suggests a stock is cheap.
The 10 year Price/Book Value per Share Ratio is 1.59. The current P/B Ratio is at 1.65 based on a stock price of $79.56 and Book Value per Share of $48.33. The current P/B Ratio is only 3.5% higher than the 10 year ratio. The stock price test says that the stock is at a relatively reasonable price.
The only test to suggest that the stock price might be a bit high is looking at the dividend yields. The 5 year median dividend yield and the historical median dividend yield are at 4.69% and 4.62%, respectively. They are 14% and 13% above the current dividend yield of 4.02%. For a stock to be expensive, these yields would have to be above the current dividend yield by 20%. However, this test says that the stock price is still reasonable but in the higher end of this range.
When I look at analysts' recommendations, I find Strong Buy, Buy, Hold and Underperform. The vast majority of the recommendations are a Hold and the consensus recommendation would be a Hold. The 12 month stock price consensus is $87.50. This implies a total return of 14% with 9.98% from capital gains and 4.02% from dividends.
In this article in the Financial Post, David Pett talks about BMO hiking the dividend despite missing earnings estimates because of a weak capital markets.
Sound bite for Twitter and StockTwits is: On most tests stock price seems reasonable. Dividend yields are still good and dividend increases are moderate. I have made a lot of money in banks in the past, but I doubt that the returns will be as good in the future. However, they can be a solid part of any portfolio. See my spreadsheet at bmo.htm.
This is the second of two parts. The first part was posted on Thursday, January 08, 2015 and is available here. The first part talks about the stock and the second part talks about the stock price.
BMO is a bank. They offer personal and corporate banking and wealth management services in Canada and US, which includes looking after banking, financing, investing, credit card and insurance needs. They offer mortgages and mutual funds and they offer full service and on-line brokerage services. They are international bank having banking in Canada and US. They have clients, corporate, institutional and governmental, in UK, Europe, Asia and South America. Its web site is here BMO.
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 some $35.5M of insider selling and $34.5M of net insider selling. Insider buying is minor at $1M. Insider selling is only at 0.07% of market cap and is therefore a relatively small number.
Outstanding shares were increased by some 2.133M shares for options last year. These options had a book value of $131M and this number of shares would have been worth around $173.2M at the end of October 2014. This number of shares is 0.33% of the outstanding shares and is a relatively small amount.
There is some insider ownership with the CEO having shares worth around $19.5M and an officer having shares worth around $16.2M. However, insider ownership is way below 1% and is therefore minor.
BMO does not have a mission statement per se, but they do claim their approach involves the following. It does cover main points for a mission statement.
- Delivering value to our customers.
- Creating opportunities for our employees.
- Generating greater rewards for our shareholders.
- Contributing to the well-being of the communities where we do business.
- Integrating respect for the environment into our business growth strategies and practices.
I get a Graham Price of $85.55. The 10 year Price/Graham Price Ratios are 0.82, 0.93 and 1.12. The current P/GP Ratio is 0.93 based on a stock price $79.56. This stock price test says that the stock is at a relatively reasonable price. On an absolute basis, a P/GP under 1.00 suggests a stock is cheap.
The 10 year Price/Book Value per Share Ratio is 1.59. The current P/B Ratio is at 1.65 based on a stock price of $79.56 and Book Value per Share of $48.33. The current P/B Ratio is only 3.5% higher than the 10 year ratio. The stock price test says that the stock is at a relatively reasonable price.
The only test to suggest that the stock price might be a bit high is looking at the dividend yields. The 5 year median dividend yield and the historical median dividend yield are at 4.69% and 4.62%, respectively. They are 14% and 13% above the current dividend yield of 4.02%. For a stock to be expensive, these yields would have to be above the current dividend yield by 20%. However, this test says that the stock price is still reasonable but in the higher end of this range.
When I look at analysts' recommendations, I find Strong Buy, Buy, Hold and Underperform. The vast majority of the recommendations are a Hold and the consensus recommendation would be a Hold. The 12 month stock price consensus is $87.50. This implies a total return of 14% with 9.98% from capital gains and 4.02% from dividends.
In this article in the Financial Post, David Pett talks about BMO hiking the dividend despite missing earnings estimates because of a weak capital markets.
Sound bite for Twitter and StockTwits is: On most tests stock price seems reasonable. Dividend yields are still good and dividend increases are moderate. I have made a lot of money in banks in the past, but I doubt that the returns will be as good in the future. However, they can be a solid part of any portfolio. See my spreadsheet at bmo.htm.
This is the second of two parts. The first part was posted on Thursday, January 08, 2015 and is available here. The first part talks about the stock and the second part talks about the stock price.
BMO is a bank. They offer personal and corporate banking and wealth management services in Canada and US, which includes looking after banking, financing, investing, credit card and insurance needs. They offer mortgages and mutual funds and they offer full service and on-line brokerage services. They are international bank having banking in Canada and US. They have clients, corporate, institutional and governmental, in UK, Europe, Asia and South America. Its web site is here BMO.
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, January 8, 2015
Bank of Montreal
I own this stock of Bank of Montreal (TSX-BMO, NYSE-BMO). When I bought this stock in 1983, I thought it was the best bank stock to buy at that time.
This is a dividend growth stock, but they have not increased the dividends every year. They were flat in the early 1980's and from 2008 to 2013. Because they had a long recent stretch of no dividend increases the 5 year growth is very low at 1.7% per year. The 10 year growth figure is at 6.7% per year.
The last dividend increase was for this year and the increase was for 2.6%. This will be the second dividend increase for the financial year ending in October 2015 and so far dividends for that financial period is up by 4.6%. Since I have had this stock in 1983 my dividends have increased at the rate of 6.2% per year.
Since 1983, I have received some $43.41 per share in dividends. Since I paid $7.28 per share, my dividends have more than covered the original cost. I have only tracked this stock since 1987 in Quicken and in that time I have made 16.05% return per year with 11.69% per year from capital gains and 4.36% per year from dividends.
I bought some of this stock for another account in 2008. In this account I have done better as far as total return goes with a total return of 22.07% per year. Some 16.42% per year of this return was from capital gains and 5.65% per year of this return was from dividends. On the other hand I paid $58.09 per share and have made only $7.69 per share in dividends. My dividends on this stock have only covered some 13% of my original cost.
The dividend payout ratios are good with the 5 year median DPR for EPS at 47% and for CFPS at 37%. The DPR for the last financial year ending October 2014 were at 47% for EPS and 45.6% for CFPS.
The total return for the last 5 and 10 years is rather moderate at 11.23% and 7.46% per year over these periods. The dividend portion of this return is at 4.51% and 4.21% per year. The capital gains portion of this return is at 6.72% and 3.25% per year.
The outstanding shares have increased by 3.2% and 2.6% per year over the past 5 and 10 years. Shares have increased due to Share Issues, DRIP and Stock Options. They have decreased due to Buy Backs. There is nothing wrong with shares increasing or decreasing per se, but if they are increasing you need to look at per share values.
That is as a shareholder the Revenue per Share and Earnings per Share are more important than Revenues and Net Income. So for BMO, the Revenue per Share has increased by 4.2% and 3% per year over the past 5 and 10 years. The Revenue has increased is at 7.6% and 5.7% per year over the past 5 and 10 years.
The EPS has increase by 15.8% and 3.8% per year over the past 5 and 10 years. The big increase in EPS over the past 5 years is due to an EPS low in 2009. Over the past 5 years the EPS has increased by 6.8% per year using 5 year running averages.
The Return on Equity has only been lower than 10% one time in the last 10 years. The ROE for the financial year ending in October 2014 was 12.1% with a 5 year median of 12.6%. The ROE on comprehensive income is 16.7% with a 5 year median of 15%. Some analysts like the comprehensive income better than the net income. It is certainly a positive result.
Sound bite for Twitter and StockTwits is: Bank Dividend Growth Stock. I think that everyone should have some exposure to banks and the financial sector. I made most of my money on financials and utility stocks. I have some 28.9% of my portfolio in financials with 3 Canadian Banks making up some 17.2% of my portfolio. See my spreadsheet at bmo.htm.
This is the first of two parts. The second part will be posted on Friday, January 9, 2015 and will be available here. The first part talks about the stock and the second part talks about the stock price.
BMO is a bank. They offer personal and corporate banking and wealth management services in Canada and US, which includes looking after banking, financing, investing, credit card and insurance needs. They offer mortgages and mutual funds and they offer full service and on-line brokerage services. They are international bank having banking in Canada and US. They have clients, corporate, institutional and governmental, in UK, Europe, Asia and South America. Its web site is here BMO.
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, but they have not increased the dividends every year. They were flat in the early 1980's and from 2008 to 2013. Because they had a long recent stretch of no dividend increases the 5 year growth is very low at 1.7% per year. The 10 year growth figure is at 6.7% per year.
The last dividend increase was for this year and the increase was for 2.6%. This will be the second dividend increase for the financial year ending in October 2015 and so far dividends for that financial period is up by 4.6%. Since I have had this stock in 1983 my dividends have increased at the rate of 6.2% per year.
Since 1983, I have received some $43.41 per share in dividends. Since I paid $7.28 per share, my dividends have more than covered the original cost. I have only tracked this stock since 1987 in Quicken and in that time I have made 16.05% return per year with 11.69% per year from capital gains and 4.36% per year from dividends.
I bought some of this stock for another account in 2008. In this account I have done better as far as total return goes with a total return of 22.07% per year. Some 16.42% per year of this return was from capital gains and 5.65% per year of this return was from dividends. On the other hand I paid $58.09 per share and have made only $7.69 per share in dividends. My dividends on this stock have only covered some 13% of my original cost.
The dividend payout ratios are good with the 5 year median DPR for EPS at 47% and for CFPS at 37%. The DPR for the last financial year ending October 2014 were at 47% for EPS and 45.6% for CFPS.
The total return for the last 5 and 10 years is rather moderate at 11.23% and 7.46% per year over these periods. The dividend portion of this return is at 4.51% and 4.21% per year. The capital gains portion of this return is at 6.72% and 3.25% per year.
The outstanding shares have increased by 3.2% and 2.6% per year over the past 5 and 10 years. Shares have increased due to Share Issues, DRIP and Stock Options. They have decreased due to Buy Backs. There is nothing wrong with shares increasing or decreasing per se, but if they are increasing you need to look at per share values.
That is as a shareholder the Revenue per Share and Earnings per Share are more important than Revenues and Net Income. So for BMO, the Revenue per Share has increased by 4.2% and 3% per year over the past 5 and 10 years. The Revenue has increased is at 7.6% and 5.7% per year over the past 5 and 10 years.
The EPS has increase by 15.8% and 3.8% per year over the past 5 and 10 years. The big increase in EPS over the past 5 years is due to an EPS low in 2009. Over the past 5 years the EPS has increased by 6.8% per year using 5 year running averages.
The Return on Equity has only been lower than 10% one time in the last 10 years. The ROE for the financial year ending in October 2014 was 12.1% with a 5 year median of 12.6%. The ROE on comprehensive income is 16.7% with a 5 year median of 15%. Some analysts like the comprehensive income better than the net income. It is certainly a positive result.
Sound bite for Twitter and StockTwits is: Bank Dividend Growth Stock. I think that everyone should have some exposure to banks and the financial sector. I made most of my money on financials and utility stocks. I have some 28.9% of my portfolio in financials with 3 Canadian Banks making up some 17.2% of my portfolio. See my spreadsheet at bmo.htm.
This is the first of two parts. The second part will be posted on Friday, January 9, 2015 and will be available here. The first part talks about the stock and the second part talks about the stock price.
BMO is a bank. They offer personal and corporate banking and wealth management services in Canada and US, which includes looking after banking, financing, investing, credit card and insurance needs. They offer mortgages and mutual funds and they offer full service and on-line brokerage services. They are international bank having banking in Canada and US. They have clients, corporate, institutional and governmental, in UK, Europe, Asia and South America. Its web site is here BMO.
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, January 7, 2015
Calian Technologies Ltd. 2
On my other blog I am today writing about possible cheap dividend stocks for January 2015 continue...
I own this stock of Calian Technologies Ltd. (TSX-CTY, OTC-CLNFF). This is an interesting company with a very nice dividend. This stock came up on a Globe Investor site. The Globe Investor Number Cruncher is an investment column about screening for stocks and funds. They did one on companies with little to no debt. I also noted that the Financial Blogger had this stock on his Top Ten Canadian Dividend Stocks list in 2011.
In the 2014 financial year, the outstanding shares were not increased by any stock options. There was not much in the way of insider trading. There was a bit of insider buy and no insider selling. Insider buying is at 0.01% of the market cap of this stock and a very small amount.
There is a bit of insider ownership with the CEO owning shares worth around $1.3M and the CFO owning shares worth around $0.3M. This is not much insider ownership.
They do not have a mission statement, but they say that they wish to be their customers' program delivery partner, by providing value added systems and services in order to assist them in achieving their business objectives. They also wish to be the most desirable Canadian company to work for, buy from and invest in.
The 5 year low, median and high median Price/Earnings per Share Ratios are 9.89, 11.05 and 11.85. The corresponding 10 year P/E Ratios are similar at 10.12, 11.17 and 11.99. This is a pretty tight range. The current P/E Ratio is 11.46 based on a stock price of $17.65 and 2015 EPS estimate of $1.54. This test suggests that the stock price is relatively reasonable.
I get a Graham price of $18.10. The 10 year low, median and high median Price/Graham Price Ratios are 0.93, 1.04 and 1.14. The current P/GP Ratio is 0.97 based on a stock price of $17.65. This test suggests that the stock price is relatively reasonable. On an absolute basis, a P/GP Ratio of less than 1.00 says a company is cheap.
The 10 year median Price/Book Value per Share Ratio is 2.22. The current P/B Ratio at 1.87 is some 16% lower. This test suggests that the stock price is relatively reasonable. For the stock price is be considered cheap the current P/B Ratio would have to be 20% lower than the 10 year median ratio.
Where this stock is showing up as cheap is using the historical high dividend yield, which at 6.20% is some 2% lower than the current dividend yield is 6.35%. This test is saying that the stock is relatively cheap. The current dividend yield is, of course, also higher than the 5 year median, the historical average and the historical median dividend yields.
When I look at analysts' recommendations, I find only one analyst following this stock and the recommendation given is a hold. The 12 month stock price is $19.00. This implies total returns of 13.99% with 7.65% from capital gains and 6.35% from dividends.
This article talks about Calian being awarded a defense contract worth more than $17M. This article talks about Calian acquiring Amtek Engineering Services Ltd. of Ottawa, Ontario. There is an interesting 2012 article on Calian in the Globe and Mail. Going forward to today, this company has been trading in $17.50 to $22.50 range since 2009.
Sound bite for Twitter and StockTwits is: Stock price is cheap to reasonable. I must say that I do like using the dividend yield test because you are not using past financial data or estimates of future financial data. Also, I think the point to investing for the long term is to buy a good company when it is cheap. This seems to be the time that analysts tend to give recommendations of a Hold. See my spreadsheet at cty.htm.
This is the second of two parts. The first part was posted on Tuesday, January 06, 2015 and is available here. The first part talks about the stock and the second part talks about the stock price.
Calian sells technology services to industry and government in Canada and around the world. Calian provides customers with ready access to an exceptional team of engineers, telecommunications and technology professionals, health care professionals and other highly qualified staff. Its web site is here Calian.
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 Calian Technologies Ltd. (TSX-CTY, OTC-CLNFF). This is an interesting company with a very nice dividend. This stock came up on a Globe Investor site. The Globe Investor Number Cruncher is an investment column about screening for stocks and funds. They did one on companies with little to no debt. I also noted that the Financial Blogger had this stock on his Top Ten Canadian Dividend Stocks list in 2011.
In the 2014 financial year, the outstanding shares were not increased by any stock options. There was not much in the way of insider trading. There was a bit of insider buy and no insider selling. Insider buying is at 0.01% of the market cap of this stock and a very small amount.
There is a bit of insider ownership with the CEO owning shares worth around $1.3M and the CFO owning shares worth around $0.3M. This is not much insider ownership.
They do not have a mission statement, but they say that they wish to be their customers' program delivery partner, by providing value added systems and services in order to assist them in achieving their business objectives. They also wish to be the most desirable Canadian company to work for, buy from and invest in.
The 5 year low, median and high median Price/Earnings per Share Ratios are 9.89, 11.05 and 11.85. The corresponding 10 year P/E Ratios are similar at 10.12, 11.17 and 11.99. This is a pretty tight range. The current P/E Ratio is 11.46 based on a stock price of $17.65 and 2015 EPS estimate of $1.54. This test suggests that the stock price is relatively reasonable.
I get a Graham price of $18.10. The 10 year low, median and high median Price/Graham Price Ratios are 0.93, 1.04 and 1.14. The current P/GP Ratio is 0.97 based on a stock price of $17.65. This test suggests that the stock price is relatively reasonable. On an absolute basis, a P/GP Ratio of less than 1.00 says a company is cheap.
The 10 year median Price/Book Value per Share Ratio is 2.22. The current P/B Ratio at 1.87 is some 16% lower. This test suggests that the stock price is relatively reasonable. For the stock price is be considered cheap the current P/B Ratio would have to be 20% lower than the 10 year median ratio.
Where this stock is showing up as cheap is using the historical high dividend yield, which at 6.20% is some 2% lower than the current dividend yield is 6.35%. This test is saying that the stock is relatively cheap. The current dividend yield is, of course, also higher than the 5 year median, the historical average and the historical median dividend yields.
When I look at analysts' recommendations, I find only one analyst following this stock and the recommendation given is a hold. The 12 month stock price is $19.00. This implies total returns of 13.99% with 7.65% from capital gains and 6.35% from dividends.
This article talks about Calian being awarded a defense contract worth more than $17M. This article talks about Calian acquiring Amtek Engineering Services Ltd. of Ottawa, Ontario. There is an interesting 2012 article on Calian in the Globe and Mail. Going forward to today, this company has been trading in $17.50 to $22.50 range since 2009.
Sound bite for Twitter and StockTwits is: Stock price is cheap to reasonable. I must say that I do like using the dividend yield test because you are not using past financial data or estimates of future financial data. Also, I think the point to investing for the long term is to buy a good company when it is cheap. This seems to be the time that analysts tend to give recommendations of a Hold. See my spreadsheet at cty.htm.
This is the second of two parts. The first part was posted on Tuesday, January 06, 2015 and is available here. The first part talks about the stock and the second part talks about the stock price.
Calian sells technology services to industry and government in Canada and around the world. Calian provides customers with ready access to an exceptional team of engineers, telecommunications and technology professionals, health care professionals and other highly qualified staff. Its web site is here Calian.
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, January 6, 2015
Calian Technologies Ltd.
I own this stock of Calian Technologies Ltd. (TSX-CTY, OTC-CLNFF). This is an interesting company with a very nice dividend. This stock came up on a Globe Investor site. The Globe Investor Number Cruncher is an investment column about screening for stocks and funds. They did one on companies with little to no debt. I also noted that the Financial Blogger had this stock on his Top Ten Canadian Dividend Stocks list in 2011.
They started paying dividends in 2003 and had a good record of increasing the dividends until 2014. The yield on this stock is good as is the dividend increases. The current yield is 6.35% and the 5 year median dividend yield is 5.13%. The dividends have increased by 11.8% and 17.7% per year over the past 5 and 10 years.
The 5 year median Dividend Payout Ratios were at 58% for EPS and 51% for CFPS. The corresponding ones for 2014 were at 78% for EPS and 55% for CFPS. The DPR for EPS is getting high and it seems to me to be a prudent move to not increase the dividends at the present time.
The financial year ending in September 2014 was not a good year for this company. Revenues, Earnings and Cash Flow all declined. In fact 2013 was also not a good year for this company as in that year also Revenues, Earnings and Cash Flow all declined. There is only one analyst following this stock and he expects 2015 to be a better year. However, you have to wonder if the company feels that way as they did not increase dividends.
They have done some buy backs of shares. Shares have increased due to Stock Options and an Employee Share Purchase Plan and decreased due to the buy backs. Shares have declined by 1% per year over the past 5 and 10 years. This makes the per share value look better than they really are.
For example, the net income has decline by 24% and increased by way less than 1% over the past 5 and 10 years. If you look at 5 year running averages, net income is down by 3.7% and up by 14.6% per year over the past 5 and 10 years. If you look at EPS, this is down by 7.4% and up by 1.7% per year over the past 5 and 10 years. The EPS is up by 6.1% and 16.2% per year over the past 5 and 10 years looking at the 5 year running averages.
The Return on Equity has not been less than 10% any year over the past 10 years. Also, the ROE on comprehensive income has not been less than 10% any year over the past 8 years. ROE is a rather new value and the company has only been giving out comprehensive income over the past 8 years.
For the financial year ending in September 2014 the ROE is 15.2% and the ROE on comprehensive income is 15.5%. The ROE on comprehensive income tends to suggest that the earnings are of good quality.
This company has very good debt ratios. The Liquidity Ratio is especially good and this help companies survive the bad times. The Liquidity Ratio for 2014 is 2.66. The Debt Ratio is 3.22. For both this ratios I like to see them at 1.50 or above. So this company has good ratios. The Leverage and Debt/Equity Ratios are also good at 1.45 and 0.45.
Sound bite for Twitter and StockTwits is: Dividend Growth small Tech company. I was looking at this for my TFSA but since it is some 20% of this account, I was going to look at a few other stocks before I make up my mind. See my spreadsheet at cty.htm.
This is the first of two parts. The second part will be posted on Wednesday, January 7, 2015 and will be available here. The first part talks about the stock and the second part talks about the stock price.
Calian sells technology services to industry and government in Canada and around the world. Calian provides customers with ready access to an exceptional team of engineers, telecommunications and technology professionals, health care professionals and other highly qualified staff. Its web site is here Calian.
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.
They started paying dividends in 2003 and had a good record of increasing the dividends until 2014. The yield on this stock is good as is the dividend increases. The current yield is 6.35% and the 5 year median dividend yield is 5.13%. The dividends have increased by 11.8% and 17.7% per year over the past 5 and 10 years.
The 5 year median Dividend Payout Ratios were at 58% for EPS and 51% for CFPS. The corresponding ones for 2014 were at 78% for EPS and 55% for CFPS. The DPR for EPS is getting high and it seems to me to be a prudent move to not increase the dividends at the present time.
The financial year ending in September 2014 was not a good year for this company. Revenues, Earnings and Cash Flow all declined. In fact 2013 was also not a good year for this company as in that year also Revenues, Earnings and Cash Flow all declined. There is only one analyst following this stock and he expects 2015 to be a better year. However, you have to wonder if the company feels that way as they did not increase dividends.
They have done some buy backs of shares. Shares have increased due to Stock Options and an Employee Share Purchase Plan and decreased due to the buy backs. Shares have declined by 1% per year over the past 5 and 10 years. This makes the per share value look better than they really are.
For example, the net income has decline by 24% and increased by way less than 1% over the past 5 and 10 years. If you look at 5 year running averages, net income is down by 3.7% and up by 14.6% per year over the past 5 and 10 years. If you look at EPS, this is down by 7.4% and up by 1.7% per year over the past 5 and 10 years. The EPS is up by 6.1% and 16.2% per year over the past 5 and 10 years looking at the 5 year running averages.
The Return on Equity has not been less than 10% any year over the past 10 years. Also, the ROE on comprehensive income has not been less than 10% any year over the past 8 years. ROE is a rather new value and the company has only been giving out comprehensive income over the past 8 years.
For the financial year ending in September 2014 the ROE is 15.2% and the ROE on comprehensive income is 15.5%. The ROE on comprehensive income tends to suggest that the earnings are of good quality.
This company has very good debt ratios. The Liquidity Ratio is especially good and this help companies survive the bad times. The Liquidity Ratio for 2014 is 2.66. The Debt Ratio is 3.22. For both this ratios I like to see them at 1.50 or above. So this company has good ratios. The Leverage and Debt/Equity Ratios are also good at 1.45 and 0.45.
Sound bite for Twitter and StockTwits is: Dividend Growth small Tech company. I was looking at this for my TFSA but since it is some 20% of this account, I was going to look at a few other stocks before I make up my mind. See my spreadsheet at cty.htm.
This is the first of two parts. The second part will be posted on Wednesday, January 7, 2015 and will be available here. The first part talks about the stock and the second part talks about the stock price.
Calian sells technology services to industry and government in Canada and around the world. Calian provides customers with ready access to an exceptional team of engineers, telecommunications and technology professionals, health care professionals and other highly qualified staff. Its web site is here Calian.
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, January 5, 2015
Metro Inc. 2
On my other blog I am today writing about possible cheap dividend stocks for January 2015 continue...
I own this stock of Metro Inc. (TSX-MRU, OTC-MTRAF). I first bought this stock first at the end of 2001 because it is a good time to purchase as market is relatively low and Metro was on my hit list. Metro's P/E is relatively low for this stock. I brought more in 2004. By 2009, Metro stock was over 10% of my portfolio because it had grown so strong, so I sold some to reduce the percentage of it in my portfolio.
When I look at insider trading for this past year there is some $20.4M of net insider trading and this is equal to 0.33% of the outstanding market cap. There is a very minor amount of insider buying. The amount of insider trading is very small.
There is some insider ownership with the CEO owning shares worth around $5.8M and the Chairman owning shares worth around $12.2M. However this all adds up to less than 1% of outstanding shares. Outstanding shares were increased by around 189,000 shares for stock options. These shares have a book value of $8.6M and this amount of shares was worth some $14M at the end of the fiscal year of September 2014. This number of share is only 0.22% of outstanding shares and therefore a relatively very small amount.
The best I can find for a mission statement from Metro is that Metro Inc. say that they employs in Quebec and Ontario over 65,000 people, whose mission is to satisfy their customers every day and earn their long-term loyalty.
The 5 year low, median and high median Price/Earnings per Share Ratios are 9.37, 10.99 and 12.85. This historical high P/E Ratio is 15.94. The current P/E Ratio is 16.31 based on a stock price of $92.50 and 2015 EPS estimate of $5.67. This stock price testing suggests that the stock price is relatively expensive.
I get a Graham Price of $63.38. The 10 year low, median and high P/GP Ratios are 0.82, 0.98 and 1.09. The current P/GP Ratio is 1.46 with a stock price of $92.50. This stock price testing suggests that the stock price is relatively expensive.
The 10 year Price/Book Value per Share Ratio is 2.02. The current P/B Ratio is 2.94 based on a BVPS of $31.49 and a stock price of $92.50. The current P/B Ratio is some 46% higher than the 10 year ratio and this suggests that the stock price is relatively expensive.
The only test that suggests that the stock may not be that expensive is the historical average and historical median dividend yields which are 1.43% and 1.44% and therefor only around 10% higher than the current dividend yields of 1.30%. The dividend yield is based on a stock price of $92.50 and dividends of $1.20 per year. Generally a stock is considered expensive if the historical dividend yields are 20% or more higher than the current dividend yield.
The 5 year median dividend yield is 1.58% and this dividend yield is just over 18% higher than the current dividend yield of 1.30%. Compared to the last 5 years, this stock price is getting expensive.
When I look at analysts' recommendations, I find Strong Buy, Buy, Hold and Underperform recommendations. Most of the recommendations are in the Hold category and this is the consensus recommendation. The 12 month stock target price is $87.50, which is some 5.4% lower than where it is now.
This Globe and Mail article talks about how Metro has benefited from ownership in Alimentation Couche-Tard Inc. This Financial Post article talks about the good 4th quarter that Metro has had. The Motley Fool put out a report on Metro after their 4th quarterly results were published. Energy Advantage in this article talks about Metro managing their energy requirements.
Sound bite for Twitter and StockTwits is: Expensive on a number of levels. See my spreadsheet at mru.htm.
This is the second of two parts. The first part was posted on Friday, January 02, 2015 and is available here. The first part talks about the stock and the second part talks about the stock price.
Metro is a leader in the food and pharmaceutical sectors. It operates a network of close to 600 food stores under the banners Metro, Metro Plus, Super C, A & P, Dominion, Loeb and Food Basics. It has 250 pharmacies under the banners Brunet, Clini Plus, The Pharmacy and Drug Basics. Metro's operations are concentrated in Quebec and Ontario. Its web site is here Metro.
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 Metro Inc. (TSX-MRU, OTC-MTRAF). I first bought this stock first at the end of 2001 because it is a good time to purchase as market is relatively low and Metro was on my hit list. Metro's P/E is relatively low for this stock. I brought more in 2004. By 2009, Metro stock was over 10% of my portfolio because it had grown so strong, so I sold some to reduce the percentage of it in my portfolio.
When I look at insider trading for this past year there is some $20.4M of net insider trading and this is equal to 0.33% of the outstanding market cap. There is a very minor amount of insider buying. The amount of insider trading is very small.
There is some insider ownership with the CEO owning shares worth around $5.8M and the Chairman owning shares worth around $12.2M. However this all adds up to less than 1% of outstanding shares. Outstanding shares were increased by around 189,000 shares for stock options. These shares have a book value of $8.6M and this amount of shares was worth some $14M at the end of the fiscal year of September 2014. This number of share is only 0.22% of outstanding shares and therefore a relatively very small amount.
The best I can find for a mission statement from Metro is that Metro Inc. say that they employs in Quebec and Ontario over 65,000 people, whose mission is to satisfy their customers every day and earn their long-term loyalty.
The 5 year low, median and high median Price/Earnings per Share Ratios are 9.37, 10.99 and 12.85. This historical high P/E Ratio is 15.94. The current P/E Ratio is 16.31 based on a stock price of $92.50 and 2015 EPS estimate of $5.67. This stock price testing suggests that the stock price is relatively expensive.
I get a Graham Price of $63.38. The 10 year low, median and high P/GP Ratios are 0.82, 0.98 and 1.09. The current P/GP Ratio is 1.46 with a stock price of $92.50. This stock price testing suggests that the stock price is relatively expensive.
The 10 year Price/Book Value per Share Ratio is 2.02. The current P/B Ratio is 2.94 based on a BVPS of $31.49 and a stock price of $92.50. The current P/B Ratio is some 46% higher than the 10 year ratio and this suggests that the stock price is relatively expensive.
The only test that suggests that the stock may not be that expensive is the historical average and historical median dividend yields which are 1.43% and 1.44% and therefor only around 10% higher than the current dividend yields of 1.30%. The dividend yield is based on a stock price of $92.50 and dividends of $1.20 per year. Generally a stock is considered expensive if the historical dividend yields are 20% or more higher than the current dividend yield.
The 5 year median dividend yield is 1.58% and this dividend yield is just over 18% higher than the current dividend yield of 1.30%. Compared to the last 5 years, this stock price is getting expensive.
When I look at analysts' recommendations, I find Strong Buy, Buy, Hold and Underperform recommendations. Most of the recommendations are in the Hold category and this is the consensus recommendation. The 12 month stock target price is $87.50, which is some 5.4% lower than where it is now.
This Globe and Mail article talks about how Metro has benefited from ownership in Alimentation Couche-Tard Inc. This Financial Post article talks about the good 4th quarter that Metro has had. The Motley Fool put out a report on Metro after their 4th quarterly results were published. Energy Advantage in this article talks about Metro managing their energy requirements.
Sound bite for Twitter and StockTwits is: Expensive on a number of levels. See my spreadsheet at mru.htm.
This is the second of two parts. The first part was posted on Friday, January 02, 2015 and is available here. The first part talks about the stock and the second part talks about the stock price.
Metro is a leader in the food and pharmaceutical sectors. It operates a network of close to 600 food stores under the banners Metro, Metro Plus, Super C, A & P, Dominion, Loeb and Food Basics. It has 250 pharmacies under the banners Brunet, Clini Plus, The Pharmacy and Drug Basics. Metro's operations are concentrated in Quebec and Ontario. Its web site is here Metro.
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, January 2, 2015
Metro Inc.
I have started to again review all my stocks and have started basically where I did in January 2014, with this stock of Metro Inc.
I own this stock of Metro Inc. (TSX-MRU, OTC-MTRAF). I first bought this stock first at the end of 2001 because it is a good time to purchase as market is relatively low and Metro was on my hit list. Metro's P/E is relatively low for this stock. I brought more in 2004. By 2009, Metro stock was over 10% of my portfolio because it had grown so strong, so I sold some to reduce the percentage of it in my portfolio.
This is a dividend growth stock with a low dividend and quite good dividend growth. The current dividend yield is 1.3% and the 5 year median dividend yield is 1.6%. The dividends have grown by 16.4% and 13.5% per year over the past 5 and 10 years. The last dividend increase was in 2014 and the increase was 20%.
I have had this stock since 2004 or for 11 years. My original yield on this stock was 1.9%. My dividends have grown 253% or 12.9% per year. Currently I am getting I am getting a yield of 6.8% on my original investment in this stock. So far my dividends have paid for 40% of my original purchase price for this stock.
The Dividend Payout Ratios are quite low. The 5 year median DPRs for EPS is 17.8% and for CFPS is 13.4%. The DPRs for the financial year ending in September 2014 is 22.7% and 18.3%.
This company has been busy buying back shares. The outstanding shares have decreased by 4.8% and 1.3% per year over the past 5 and 10 years. Because of this you should pay more attention to things like Revenue rather than Revenue per Share.
One concern is the lack of revenue growth. Revenue has only grown at 0.7% and 6.8% per year over the past 5 and 10 years. If you look at the 5 year running average it is a bit better but still very low at 2.9% and 8.1% per year over the past 5 and 10 years. Analysts are only expecting revenue to grow by 3.7% and 2% over the next two years. Revenue growth is important because both earnings and cash flow growth ultimately depends on revenue growth.
Net Income has grown at 4.8% and 10% per year over the past 5 and 10 years. The 5 year running average is also better here with growth of 12% and 13.2% per year over the past 5 and 10 years. With decreasing shares the growth in EPS looks better and can give a false sense of growth. EPS is up by 9.7% and 11.4% per year over the past 5 and 10 years. This is significantly better than net income growth.
Also, with cash flow, you should be paying more attention to cash flow growth than CFPS growth. Cash Flow is up by 0.4% and 9.6% per year over the past 5 and 10 years. CFPS is up by 5.5% and 11.2% per year over the past 5 and 10 years.
The Return on Equity is good with 2014 ROE at 16.8% and with a 5 year ROE at 16.8% also. The ROE on comprehensive income is a little lower but close at 16.1% and with a 5 year ROE at 16.1% also.
The Liquidity Ratio is a bit low at just 1.11. If you add in cash flow after dividends it goes to 1.42. Not a great number, but a better one. Debt Ratio at 2.03 and Leverage and Debt/Equity Ratios at 1.97 and 0.97 are good.
Sound bite for Twitter and StockTwits is: Dividend Growth consumer staple. Growth in Revenue has not been great since 2007. However, a lot of companies have had trouble with this last recession. See my spreadsheet at mru.htm.
This is the first of two parts. The second part will be posted on Monday, January 5, 2015 and will be available here. The first part talks about the stock and the second part talks about the stock price.
Metro is a leader in the food and pharmaceutical sectors. It operates a network of close to 600 food stores under the banners Metro, Metro Plus, Super C, A & P, Dominion, Loeb and Food Basics. It has 250 pharmacies under the banners Brunet, Clini Plus, The Pharmacy and Drug Basics. Metro's operations are concentrated in Quebec and Ontario. Its web site is here Metro.
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 Metro Inc. (TSX-MRU, OTC-MTRAF). I first bought this stock first at the end of 2001 because it is a good time to purchase as market is relatively low and Metro was on my hit list. Metro's P/E is relatively low for this stock. I brought more in 2004. By 2009, Metro stock was over 10% of my portfolio because it had grown so strong, so I sold some to reduce the percentage of it in my portfolio.
This is a dividend growth stock with a low dividend and quite good dividend growth. The current dividend yield is 1.3% and the 5 year median dividend yield is 1.6%. The dividends have grown by 16.4% and 13.5% per year over the past 5 and 10 years. The last dividend increase was in 2014 and the increase was 20%.
I have had this stock since 2004 or for 11 years. My original yield on this stock was 1.9%. My dividends have grown 253% or 12.9% per year. Currently I am getting I am getting a yield of 6.8% on my original investment in this stock. So far my dividends have paid for 40% of my original purchase price for this stock.
The Dividend Payout Ratios are quite low. The 5 year median DPRs for EPS is 17.8% and for CFPS is 13.4%. The DPRs for the financial year ending in September 2014 is 22.7% and 18.3%.
This company has been busy buying back shares. The outstanding shares have decreased by 4.8% and 1.3% per year over the past 5 and 10 years. Because of this you should pay more attention to things like Revenue rather than Revenue per Share.
One concern is the lack of revenue growth. Revenue has only grown at 0.7% and 6.8% per year over the past 5 and 10 years. If you look at the 5 year running average it is a bit better but still very low at 2.9% and 8.1% per year over the past 5 and 10 years. Analysts are only expecting revenue to grow by 3.7% and 2% over the next two years. Revenue growth is important because both earnings and cash flow growth ultimately depends on revenue growth.
Net Income has grown at 4.8% and 10% per year over the past 5 and 10 years. The 5 year running average is also better here with growth of 12% and 13.2% per year over the past 5 and 10 years. With decreasing shares the growth in EPS looks better and can give a false sense of growth. EPS is up by 9.7% and 11.4% per year over the past 5 and 10 years. This is significantly better than net income growth.
Also, with cash flow, you should be paying more attention to cash flow growth than CFPS growth. Cash Flow is up by 0.4% and 9.6% per year over the past 5 and 10 years. CFPS is up by 5.5% and 11.2% per year over the past 5 and 10 years.
The Return on Equity is good with 2014 ROE at 16.8% and with a 5 year ROE at 16.8% also. The ROE on comprehensive income is a little lower but close at 16.1% and with a 5 year ROE at 16.1% also.
The Liquidity Ratio is a bit low at just 1.11. If you add in cash flow after dividends it goes to 1.42. Not a great number, but a better one. Debt Ratio at 2.03 and Leverage and Debt/Equity Ratios at 1.97 and 0.97 are good.
Sound bite for Twitter and StockTwits is: Dividend Growth consumer staple. Growth in Revenue has not been great since 2007. However, a lot of companies have had trouble with this last recession. See my spreadsheet at mru.htm.
This is the first of two parts. The second part will be posted on Monday, January 5, 2015 and will be available here. The first part talks about the stock and the second part talks about the stock price.
Metro is a leader in the food and pharmaceutical sectors. It operates a network of close to 600 food stores under the banners Metro, Metro Plus, Super C, A & P, Dominion, Loeb and Food Basics. It has 250 pharmacies under the banners Brunet, Clini Plus, The Pharmacy and Drug Basics. Metro's operations are concentrated in Quebec and Ontario. Its web site is here Metro.
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, January 1, 2015
Stella-Jones Inc.
This entry should have been on blogger on December 19, 2014. For reason it was not published.
I do not own this stock of Stella-Jones Inc. (TSX-SJ, OTC-STLJF). I started a spreadsheet on this stock in mid-2009 because of a favorable report I read on this stock. It was considered to be a dividend growth stock and I am always on the lookout for dividend growth stocks.
The dividend is low but the growth is very good. The current dividend is just 0.81% and the 5 and 10 years dividend growth is at 18.7% and 25.9% per year over the past 5 and 10 years. Personally, I would not like to buy any stock with a dividend yield less than 1%. However, there has been lots of chances in the past to buy this stock at a 1% dividend yield and this sort of dividend yield is be presented again in the future.
At the current dividend yield of 0.81% and at an 18% per year growth, your dividend yield on your original investment if done today would give you a 1.85% yield is 5 years, 4.28% yield after 10 years and 9.68% yield after 15 years. If the current yield is 1%, the yield you would have is 2.29% yield after 5 years, 5.23% yield after 10 years and 11.97% yield after 15 years. One problem is that growth companies can grow their dividends at high rates but mature companies cannot. Eventually, a growth company will become a mature company, so the high growth rates do not last forever.
For this company, the dividend payout ratios are quite low. This goes together with their low dividend yield. The 5 year median DPR for EPS is at 14.9% and for CFPS is at 11.53. The corresponding DPRs for 2013 were for EPS at 14.9% and for CFPS at 10.7%. The corresponding DRPs for 2014 are expected to be for EPS at18.2% and for CFPS at 20.6%.
The last dividend increase for this company was in 2014 and it was a 40% dividend increase. Since they started dividends in 2001, the dividends were raised every year except for the years of 2002 and 2004.
Shareholders have done very well in this stock over the past 5 and 10 years. The total return over these periods is at 40.33% and 37.73% per year. The portion of this total return attributable to dividends is at 1.29% and 1.55% per year. The portion of this total return attributable to capital gain is at 39.04% and 36.18% per year.
Outstanding shares have increased by 6.5% and 5.5% per year over the past 5 and 10 years. Shares have increased due to Share Issues, Stock Options and an Employee Stock Purchase Plan. The growth in revenues, earnings and cash flow has been very good including the growth in per share values.
Revenue has grown at 20% and 26% per year over the past 5 and 10 years. Revenue per Share has grown at 13% and 19% per year. EPS has grown at 19% and 30% per year over the past 5 and 10 years. Cash Flow per Share has grown at 18% and 27% per year over the past 5 and 10 years.
The Return on Equity Ratio has been above 10% each of the past 10 years. The ROE for 2013 is at 16.2% and the 5 year median is 16.2%. The ROE for comprehensive income for 2013 is higher at 20.4%, but the 5 year median value is a bit lower at 14.4%.
The current debt ratios are very good on this stock and generally are very good. The 2013 Liquidity Ratio is 8.97 and this has a 5 year median value of 5.77. The Debt Ratio for 2013 was 2.14 and the 5 year median value is also 2.14. The Leverage and Debt/Equity Ratios for 2013 was 1.87 and 0.87. The 5 year corresponding ratios are 1.87 and 0.87.
Sound bit for Twitter and StockTwits is: relatively small industrial dividend growth company. I have always enjoyed reviewing this company. It seems like a really good stock company to own. However, you cannot own everything. See my spreadsheet at sj.htm.
This is the first of two parts. The second part will be posted on Monday, December 22, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
Stella-Jones Inc. is a leading North American producer and marketer of industrial pressure treated wood products, specializing in the production of railway ties and timbers as well as wood poles supplied to electrical utilities and telecommunications companies. The Company also provides treated consumer lumber products and customized services to lumber retailers and wholesalers for outdoor applications. Other products include marine and foundation pilings, construction timbers, highway guardrail posts and treated wood for bridges. It has sales in Canada and US. Its web site is here Stella-Jones.
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 Stella-Jones Inc. (TSX-SJ, OTC-STLJF). I started a spreadsheet on this stock in mid-2009 because of a favorable report I read on this stock. It was considered to be a dividend growth stock and I am always on the lookout for dividend growth stocks.
The dividend is low but the growth is very good. The current dividend is just 0.81% and the 5 and 10 years dividend growth is at 18.7% and 25.9% per year over the past 5 and 10 years. Personally, I would not like to buy any stock with a dividend yield less than 1%. However, there has been lots of chances in the past to buy this stock at a 1% dividend yield and this sort of dividend yield is be presented again in the future.
At the current dividend yield of 0.81% and at an 18% per year growth, your dividend yield on your original investment if done today would give you a 1.85% yield is 5 years, 4.28% yield after 10 years and 9.68% yield after 15 years. If the current yield is 1%, the yield you would have is 2.29% yield after 5 years, 5.23% yield after 10 years and 11.97% yield after 15 years. One problem is that growth companies can grow their dividends at high rates but mature companies cannot. Eventually, a growth company will become a mature company, so the high growth rates do not last forever.
For this company, the dividend payout ratios are quite low. This goes together with their low dividend yield. The 5 year median DPR for EPS is at 14.9% and for CFPS is at 11.53. The corresponding DPRs for 2013 were for EPS at 14.9% and for CFPS at 10.7%. The corresponding DRPs for 2014 are expected to be for EPS at18.2% and for CFPS at 20.6%.
The last dividend increase for this company was in 2014 and it was a 40% dividend increase. Since they started dividends in 2001, the dividends were raised every year except for the years of 2002 and 2004.
Shareholders have done very well in this stock over the past 5 and 10 years. The total return over these periods is at 40.33% and 37.73% per year. The portion of this total return attributable to dividends is at 1.29% and 1.55% per year. The portion of this total return attributable to capital gain is at 39.04% and 36.18% per year.
Outstanding shares have increased by 6.5% and 5.5% per year over the past 5 and 10 years. Shares have increased due to Share Issues, Stock Options and an Employee Stock Purchase Plan. The growth in revenues, earnings and cash flow has been very good including the growth in per share values.
Revenue has grown at 20% and 26% per year over the past 5 and 10 years. Revenue per Share has grown at 13% and 19% per year. EPS has grown at 19% and 30% per year over the past 5 and 10 years. Cash Flow per Share has grown at 18% and 27% per year over the past 5 and 10 years.
The Return on Equity Ratio has been above 10% each of the past 10 years. The ROE for 2013 is at 16.2% and the 5 year median is 16.2%. The ROE for comprehensive income for 2013 is higher at 20.4%, but the 5 year median value is a bit lower at 14.4%.
The current debt ratios are very good on this stock and generally are very good. The 2013 Liquidity Ratio is 8.97 and this has a 5 year median value of 5.77. The Debt Ratio for 2013 was 2.14 and the 5 year median value is also 2.14. The Leverage and Debt/Equity Ratios for 2013 was 1.87 and 0.87. The 5 year corresponding ratios are 1.87 and 0.87.
Sound bit for Twitter and StockTwits is: relatively small industrial dividend growth company. I have always enjoyed reviewing this company. It seems like a really good stock company to own. However, you cannot own everything. See my spreadsheet at sj.htm.
This is the first of two parts. The second part will be posted on Monday, December 22, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.
Stella-Jones Inc. is a leading North American producer and marketer of industrial pressure treated wood products, specializing in the production of railway ties and timbers as well as wood poles supplied to electrical utilities and telecommunications companies. The Company also provides treated consumer lumber products and customized services to lumber retailers and wholesalers for outdoor applications. Other products include marine and foundation pilings, construction timbers, highway guardrail posts and treated wood for bridges. It has sales in Canada and US. Its web site is here Stella-Jones.
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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