Sound bite for Twitter and StockTwits is: Buy for diversification. I bought this to diversity internationally. It is the only international stocks I own however, some of my Canadian stocks do business internationally. If the P/B Ratio stock price test is used the stock price is relatively reasonable and below the median. See my spreadsheet on Barclays PLC ADR.
I own this stock of Barclays PLC ADR (LSE-BARC, NYSE-BCS). I bought this stock when Barrett took over in 2000. Barrett used to run Bank of Montreal in Canada. At that time it was a good dividend paying stock and I thought it would give me some geographical diversifications. It has not performed well lately but a lot of banks, especially ones outstand Canada have not performed very well since 2008.
This bank has just finishing up its restructuring that they expect will make the bank better and a better investment for the future. Jes Staley the CEO of Barclays talks about the restructuring.
This is a UK bank that reports in UK pounds and pays dividends in UK pounds. I bought it off the NYSE in US$ as an American Depositary Receipt (ADR) stock. The information on this stock is reported in US$ in my US account. This bank does its reporting in UK£. It is rather complicated to follow as my spreadsheets has to deal with three currencies, US$, CDN$ and UK£.
Dividends are paid differently for non-Canadian (or non-US) companies. We are used to four equal dividend payments although there are companies that pay semi-annually. With Barclays they always paid a big dividend at the beginning of the year based on how good the results were for the prior year and then a smaller dividend near the end of the year. In 2010 they switched to quarterly dividends however the first dividend payment was always bigger than the other 3. In 2016 they switched back to semi-annual dividends with the first one bigger than the one at the end of the year.
Also, this bank got into difficulties in 2008 and dividends were cut 97% in 2009. Dividends were increased in 2010 some 350%, but they were still some 86% lower than where they had been in 2008. The dividends were still some 80% in 2015. In 2016 they decreased the dividends again and this time by 54%.
The bank expects that as earnings pick up, so will the distribution of dividends. Analysts also expect dividends to increase. They do not expect much for 2017, but expect higher dividends for 2018 and beyond. In 2016 analysts expected earnings of £0.089 but got earnings of £0.103. So the bank did better than they expected. It would seem that dividend decreases are now over.
The 5 year low, median and high median Price/Earnings per Share Ratio (US$) are negative and are of no use. The corresponding 10 year values are 3.96, 7.69 and 10.52. These are also affected by recent negative earning years and are too low for a bank. The historical ones are 8.38, 10.05 and 12.87. The current P/E Ratio is 15.68 based on a stock price of $10.65 and 2017 EPS estimate of $0.68. This stock price testing suggests that the stock price is relatively expensive. Note that doing this testing using UK£ I will get similar but not exact results. This would be due to exchange rate fluctuations. Often the P/E Ratio test is not the best one to use to judge the stock price.
The 10 year median Price/Book Value per Share Ratio is 0.75 (US$). The current P/B Ratio is 0.63 a values some 16% lower. The current P/B Ratio is based on BVPS of $17.00 US$ and a stock price of $10.65 US$. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a Graham Price of $16.12 US$. The 10 year low, median and high median Price/Graham Price Ratios are .050, 0.64 and 0.79 in US$. The current P/GP Ratio is 0.66 based on a stock price of $10.65. This stock price testing suggests that the stock price is relatively reasonable but above the median.
Because of the fluctuations in dividends that is they have been up and down a lot lately, doing a dividend yield test would not be a very good one. However, the historical median dividend yield is 3.41%. The current dividend yield is just 1.40% which is lower by 59%. Certainly the current dividend yield is way off the historical median.
The 10 year median P/S Ratio is 1.34 US$. The current P/S Ratio is 1.64 US$ based on 2017 Revenue estimates of $27,493M or $6.48 US$ per share. The current P/S Ratio is some 23% above the 10 year median. This stock price testing suggests that the stock price is relatively expensive.
I have used a number of methods to try to see if the stock price is reasonable or not. Most of the tests are telling different stories. However, if you have to pick which ones to use I like the P/GP Ratio and P/B Ratio tests the best. The good thing about the P/B Ratio test is that you are not using any estimates.
When I look at analysts' recommendations I find Strong Buy, Buy, Hold, Underperform and Sell. In other words they are all over the place. Most of the recommendations are either a Buy or Hold recommendation. The consensus recommendations would be a Hold. The 12 months stock price consensus is £2.39. This implies a total return of 13.08% with 1.40% from dividends and 11.68% from capital gains. Since this is in UK pounds, what is made in US$ on the NYSE could vary because of changes in the exchange rate.
Amilia Stone on Directors Talk Interviews talks about HSBC reiterating their Buy recommendation on this stock. Colin Frost on Top Chronicle feels that Barclays shares are currently overvalued. That is that the price is too high. On a more troubling note Ben Martin in the Telegraph talks about Barclays Bank CEO Jes Staley attempts to learn the identity of a whistleblower. The board of Barclays still has faith in Staley as do other shareholders and analysts. Rupert Hargreaves of Motley Fool UK is rather negative about this stock.
One of the largest financial services groups in the United Kingdom, Barclays is engaged in banking, investment banking and asset management worldwide. Its web site is here Barclays PLC ADR.
The last stock I wrote about was about was Pembina Pipelines Corp. (TSX-PPL, NYSE-PBA)... learn more . The next stock I will write about will be Canadian Natural Resources (TSX-CNQ, NYSE-CNQ)... learn more on Tuesday, April 18, 2017 around 5 pm. Today on my other blog I will write about Dividend Changes... learn more on Thursday, April 13, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
Thursday, April 13, 2017
Wednesday, April 12, 2017
Pembina Pipelines Corp
Sound bite for Twitter and StockTwits is: Dividend growth utility. Price is relatively reasonable but above the median to relatively expensive. See my spreadsheet on Pembina Pipelines Corp.
I own this stock of Pembina Pipelines Corp. (TSX-PPL, NYSE-PBA). In December 2001 I thought it would be a good time to purchase this stock as the market was relatively low. Pipeline stocks are conservative and the return on this one was good at 9.7%. When I purchased this stock it was an Income Trust company.
One thing you need to watch on this stock is that the shares have increased lots over the past 5 and 10 years. This is nothing bad in itself, but if you are looking for how this stock has grown you really need to look at per share values. The Shares have grown at 18.8% and 12.1% per year or have grown by 136% and 215% over the past 5 and 10 years.
This does make a difference. Let's take a look at revenue. Revenue has grown at 20.5% and 28.9% per year over the past 5 and 10 years. However, Revenue per Share has grown at 1.5% and 15% per share over the same time period. The real growth in revenue is the per share growth.
One thing that annoyed me when updating my spreadsheet is that the company's report reduces values to millions. Even the number of shares is reduced to millions. Look at the stock based options. The report has them at 1 million for 2016. Since this is a rounded number the value could be anywhere from $20.9M (.5M shares) to say 58.7M (1.4M shares). This is a difference of $38M and no small sum. If I took them to two decimal points the variation could be to $62.52M (1.49M shares) or some $42M.
After changing from an Income Trust it kept its dividends flat for two years and then began to raise them again. The current dividend yield is 4.67%. This is a good dividend yield. The 5 year median dividend yield is also good at 5%. The dividend yield has always been good. However, it will never go back the yield of when it was an Income Trust.
The dividend growth is low. The growth in dividends over the past 5 and 10 years is 3.5% and 5.7% per year. Due to the high yield this stock started with and the dividend increases, the dividends I have received have cover my initial stock cost by 184%. I have also made a total return of 16.98% per year with 7.53% from dividends and 9.45% from capital gains. Going forward the portion of the total return in dividends will be lower.
One problem I see is the Dividend Payout Ratio for EPS. The DPR for EPS for 2016 is 187 % and the 5 year one is 170%. These are much too high. However, most analysts are still looking at DPR for AFFO rather than EPS. The 2016 DPR for AFFO is 74% with a 5 year value of 74%. They also think that EPS will grow sufficiently over the next two years so that the DPR for EPS will be below 100%.
I already touched on my other concern which is the lack Revenue per Share growth. I must admit here as well that analysts' feel that Revenue and Revenue per Share will growth well over the next couple of years.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. The vast majority are Buy recommendations. The consensus recommendation would be a Buy. The 12 month stock price consensus is $48.47. This implies a total return of 15.69% with 11.02% from capital gains and 4.67% from dividends.
The 5 year low, median and high median Price/Earnings per Share Ratios are 27.89, 34.56 and 42.20. The corresponding 10 year values are 23.47, 27.90 and 32.33. The historical values are 20.04, 23.50 and 26.36. I find these all too high for a utility stock. The current P/E Ratio is 25.99 based on a stock price of $43.66 and 2017 EPS estimate of $1.68. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a Graham Price of $28.11. The 10 year low, median and high median Price/Graham Price Ratios are 1.37, 1.61 and 1.83. Here again I find the ratios high. The current P/GP Ratio is 1.35 based on a stock price of $43.66. This stock price testing suggests that the stock price is relatively cheap.
I get a 10 year Price/Book Value per Share of $1.87. The current P/B Ratio is 2.09 a values some 12% higher. The current P/B Ratio is based on a BVPS of $20.90 and a stock price of $43.66. This stock price testing suggests that the stock price is relatively reasonable, but above the median. Here I find the P/B Ratio to be at a reasonable level.
I get 5 year low, median and high Price/Adjusted Funds from Operations Ratios of 12.21, 14.16 and 16.78. The corresponding 8 year ratios are 11.58, 14.13 and 16.42. The current P/AFFO Ratio is 17.19 based on a stock price of $43.99 and 2017 AFFO estimate of $2.80. This stock price testing suggests that the stock price is relatively expensive.
Because this used to be an income trust stock, I can only test the current dividend yield against the 5 year dividend yield. The 5 year median dividend yield is 5%. The current dividend yield is 4.67% a value some 6.6% lower. This stock price testing suggests that the stock price is relatively reasonable but above the median.
In this dividend announcement from Pembina on News Wire the company talks about their recent dividend increase and new pipeline expansion projects. Geoffrey Morgan at the Financial Post talks about building a propane export terminal in Prince Rupert, B.C. The staff at Market Exclusive talks about Raymond James Financial Inc. reiterating its Outperform rating on Pembina Pipeline Corp. See what analysts are saying about this company at Stock Chase. They are mostly positive.
Pembina Pipeline Corp owns energy infrastructure assets in North America. It operates conventional oil, NGL, and oil sands pipeline systems, a natural gas gathering and processing business, NGL extraction and fractionation facilities, and a marketing business. Its web site is here Pembina Pipelines Corp.
The last stock I wrote about was about was Barrick Gold Corp. (TSX-ABX, NYSE-ABX)... learn more . The next stock I will write about will be Barclays PLC ADR (LSE-BARC, NYSE:-BCS)... learn more on Thursday, April 13, 2017 around 5 pm. Tomorrow on my other blog I will write about Dividend Changes... learn more on Thursday, April 13, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
I own this stock of Pembina Pipelines Corp. (TSX-PPL, NYSE-PBA). In December 2001 I thought it would be a good time to purchase this stock as the market was relatively low. Pipeline stocks are conservative and the return on this one was good at 9.7%. When I purchased this stock it was an Income Trust company.
One thing you need to watch on this stock is that the shares have increased lots over the past 5 and 10 years. This is nothing bad in itself, but if you are looking for how this stock has grown you really need to look at per share values. The Shares have grown at 18.8% and 12.1% per year or have grown by 136% and 215% over the past 5 and 10 years.
This does make a difference. Let's take a look at revenue. Revenue has grown at 20.5% and 28.9% per year over the past 5 and 10 years. However, Revenue per Share has grown at 1.5% and 15% per share over the same time period. The real growth in revenue is the per share growth.
One thing that annoyed me when updating my spreadsheet is that the company's report reduces values to millions. Even the number of shares is reduced to millions. Look at the stock based options. The report has them at 1 million for 2016. Since this is a rounded number the value could be anywhere from $20.9M (.5M shares) to say 58.7M (1.4M shares). This is a difference of $38M and no small sum. If I took them to two decimal points the variation could be to $62.52M (1.49M shares) or some $42M.
After changing from an Income Trust it kept its dividends flat for two years and then began to raise them again. The current dividend yield is 4.67%. This is a good dividend yield. The 5 year median dividend yield is also good at 5%. The dividend yield has always been good. However, it will never go back the yield of when it was an Income Trust.
The dividend growth is low. The growth in dividends over the past 5 and 10 years is 3.5% and 5.7% per year. Due to the high yield this stock started with and the dividend increases, the dividends I have received have cover my initial stock cost by 184%. I have also made a total return of 16.98% per year with 7.53% from dividends and 9.45% from capital gains. Going forward the portion of the total return in dividends will be lower.
One problem I see is the Dividend Payout Ratio for EPS. The DPR for EPS for 2016 is 187 % and the 5 year one is 170%. These are much too high. However, most analysts are still looking at DPR for AFFO rather than EPS. The 2016 DPR for AFFO is 74% with a 5 year value of 74%. They also think that EPS will grow sufficiently over the next two years so that the DPR for EPS will be below 100%.
I already touched on my other concern which is the lack Revenue per Share growth. I must admit here as well that analysts' feel that Revenue and Revenue per Share will growth well over the next couple of years.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. The vast majority are Buy recommendations. The consensus recommendation would be a Buy. The 12 month stock price consensus is $48.47. This implies a total return of 15.69% with 11.02% from capital gains and 4.67% from dividends.
The 5 year low, median and high median Price/Earnings per Share Ratios are 27.89, 34.56 and 42.20. The corresponding 10 year values are 23.47, 27.90 and 32.33. The historical values are 20.04, 23.50 and 26.36. I find these all too high for a utility stock. The current P/E Ratio is 25.99 based on a stock price of $43.66 and 2017 EPS estimate of $1.68. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a Graham Price of $28.11. The 10 year low, median and high median Price/Graham Price Ratios are 1.37, 1.61 and 1.83. Here again I find the ratios high. The current P/GP Ratio is 1.35 based on a stock price of $43.66. This stock price testing suggests that the stock price is relatively cheap.
I get a 10 year Price/Book Value per Share of $1.87. The current P/B Ratio is 2.09 a values some 12% higher. The current P/B Ratio is based on a BVPS of $20.90 and a stock price of $43.66. This stock price testing suggests that the stock price is relatively reasonable, but above the median. Here I find the P/B Ratio to be at a reasonable level.
I get 5 year low, median and high Price/Adjusted Funds from Operations Ratios of 12.21, 14.16 and 16.78. The corresponding 8 year ratios are 11.58, 14.13 and 16.42. The current P/AFFO Ratio is 17.19 based on a stock price of $43.99 and 2017 AFFO estimate of $2.80. This stock price testing suggests that the stock price is relatively expensive.
Because this used to be an income trust stock, I can only test the current dividend yield against the 5 year dividend yield. The 5 year median dividend yield is 5%. The current dividend yield is 4.67% a value some 6.6% lower. This stock price testing suggests that the stock price is relatively reasonable but above the median.
In this dividend announcement from Pembina on News Wire the company talks about their recent dividend increase and new pipeline expansion projects. Geoffrey Morgan at the Financial Post talks about building a propane export terminal in Prince Rupert, B.C. The staff at Market Exclusive talks about Raymond James Financial Inc. reiterating its Outperform rating on Pembina Pipeline Corp. See what analysts are saying about this company at Stock Chase. They are mostly positive.
Pembina Pipeline Corp owns energy infrastructure assets in North America. It operates conventional oil, NGL, and oil sands pipeline systems, a natural gas gathering and processing business, NGL extraction and fractionation facilities, and a marketing business. Its web site is here Pembina Pipelines Corp.
The last stock I wrote about was about was Barrick Gold Corp. (TSX-ABX, NYSE-ABX)... learn more . The next stock I will write about will be Barclays PLC ADR (LSE-BARC, NYSE:-BCS)... learn more on Thursday, April 13, 2017 around 5 pm. Tomorrow on my other blog I will write about Dividend Changes... learn more on Thursday, April 13, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
Monday, April 10, 2017
Barrick Gold Corp
Sound bite for Twitter and StockTwits is: Resource and high risk. The stock has had a good run since I bought it. I wonder if I should hold it longer or sell. A positive is that there was insider buying at a rate of 0.02% over the past year. Buying was recent and close to the current price. See my spreadsheet on Barrick Gold Corp.
I own this stock of Barrick Gold Corp (TSX-ABX, NYSE-ABX). This is a big gold mining company that I have followed for years. It was on some dividend growth lists at different times and covered by the Investment Reporter. I bought some of this stock in April 2013 because its stock price had fallen hard. I believed the market over reacted. I just bought 100 shares as I am living off my portfolio and do not have much to invest. I bought another 100 shares in 2016.
I must admit I am just fooling around with this stock. I am not big into investing in resource stocks, but this had taken it on the chin so it looked like a good one for my fooling around money. The problem with how I actually make money on the stock market is that it is boring. That is why I have fooling around money. Bets are small so they cannot harm my portfolio. So I can have some fun without causing me any problems. How did I do? I have made a total return of 19.21% per year on this stock. Basically I have made a couple of thousand dollars and I have some fun.
Money can be made on resource stocks if you buy them when they are down and sell them when they are up. I would never consider any resource stock as a long time buy and hold stock. It is not just that they are volatile, they seem almost cyclical. In any event that is how I feel about them.
Because there have been a number of negative earnings years lately, the 5 and 10 year low, median and high median Price/Earnings per Share Ratios are not useable. The historical ones are 14.52, 22.29 and 27.83. These are rather high ratios. The current P/E Ratio is 29.00 based on a stock price of $25.64 and 2017 EPS estimate of $0.88 CDN$ ($0.66 US$). This stock price testing suggests that the stock price is relatively expensive. It is at a lower price that it has been most of time from 1993 to 2013. The stock has been lower than the current price since 2013.
I get a Graham Price of $13.49. The 10 year low, median and high median Price/Graham Price Ratios are 0.88, 1.28 and 1.62. The current P/GP Ratio is 1.90 based on a stock price of $25.64. This stock price testing suggests that the stock price is relatively expensive.
I get a 10 year Price/Book Value per Share Ratio of 2.02. The current P/B Ratio is 2.80 based on BVPS of $9.14 and a stock price of $25.64. The current ratio is some 39% higher than the 10 year ratio. This stock price testing suggests that the stock price is relatively expensive.
The historical median dividend yield is 0.98%. The current dividend yield is 0.63% based on dividends of $0.16 and a stock price of $25.64. The current yield is some 36% below the historical median yield. This stock price testing suggests that the stock price is relatively expensive.
When I look at analysts’ recommendations, I find Strong Buy, Buy and Hold recommendations. Most of the recommendations are a Hold, but Buy is a close second. The consensus recommendation would be a Buy. The 12 month stock price is $21.34 US$ or $28.59 CDN$. This implies a total return of 12.13% with 0.63% from dividends and 11.50% from capital gains.
Neha Chamaria of Motley Fool compares Royal Gold (NASDAQ:RGLD) and Barrick Gold Corp in this article. He says that Royal Gold is safe, but Barrick Gold Corp is cheap. The Canadian Press published a story on CTV News about Barrick Gold Corp selling a 50 per cent stake in its Veladero mine in Argentina to Chinese mining company Shangdong Gold Group. Analysts make remarks about this company on Stock Chase.
Barrick Gold Corporation is a gold mining company with a portfolio of operating mines, and advanced exploration and development projects located across five continents. Its web site is here Barrick Gold Corp.
The last stock I wrote about was about was Leon's Furniture Ltd. (TSX-LNF, OTC-LEFUF)... learn more . The next stock I will write about will be Pembina Pipelines Corp. (TSX-PPL, NYSE-PBA)... learn more on Wednesday, April 12, 2017 around 5 pm. Tomorrow on my other blog I will write about Stocks Suggestions... learn more on April 11, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
I own this stock of Barrick Gold Corp (TSX-ABX, NYSE-ABX). This is a big gold mining company that I have followed for years. It was on some dividend growth lists at different times and covered by the Investment Reporter. I bought some of this stock in April 2013 because its stock price had fallen hard. I believed the market over reacted. I just bought 100 shares as I am living off my portfolio and do not have much to invest. I bought another 100 shares in 2016.
I must admit I am just fooling around with this stock. I am not big into investing in resource stocks, but this had taken it on the chin so it looked like a good one for my fooling around money. The problem with how I actually make money on the stock market is that it is boring. That is why I have fooling around money. Bets are small so they cannot harm my portfolio. So I can have some fun without causing me any problems. How did I do? I have made a total return of 19.21% per year on this stock. Basically I have made a couple of thousand dollars and I have some fun.
Money can be made on resource stocks if you buy them when they are down and sell them when they are up. I would never consider any resource stock as a long time buy and hold stock. It is not just that they are volatile, they seem almost cyclical. In any event that is how I feel about them.
Because there have been a number of negative earnings years lately, the 5 and 10 year low, median and high median Price/Earnings per Share Ratios are not useable. The historical ones are 14.52, 22.29 and 27.83. These are rather high ratios. The current P/E Ratio is 29.00 based on a stock price of $25.64 and 2017 EPS estimate of $0.88 CDN$ ($0.66 US$). This stock price testing suggests that the stock price is relatively expensive. It is at a lower price that it has been most of time from 1993 to 2013. The stock has been lower than the current price since 2013.
I get a Graham Price of $13.49. The 10 year low, median and high median Price/Graham Price Ratios are 0.88, 1.28 and 1.62. The current P/GP Ratio is 1.90 based on a stock price of $25.64. This stock price testing suggests that the stock price is relatively expensive.
I get a 10 year Price/Book Value per Share Ratio of 2.02. The current P/B Ratio is 2.80 based on BVPS of $9.14 and a stock price of $25.64. The current ratio is some 39% higher than the 10 year ratio. This stock price testing suggests that the stock price is relatively expensive.
The historical median dividend yield is 0.98%. The current dividend yield is 0.63% based on dividends of $0.16 and a stock price of $25.64. The current yield is some 36% below the historical median yield. This stock price testing suggests that the stock price is relatively expensive.
When I look at analysts’ recommendations, I find Strong Buy, Buy and Hold recommendations. Most of the recommendations are a Hold, but Buy is a close second. The consensus recommendation would be a Buy. The 12 month stock price is $21.34 US$ or $28.59 CDN$. This implies a total return of 12.13% with 0.63% from dividends and 11.50% from capital gains.
Neha Chamaria of Motley Fool compares Royal Gold (NASDAQ:RGLD) and Barrick Gold Corp in this article. He says that Royal Gold is safe, but Barrick Gold Corp is cheap. The Canadian Press published a story on CTV News about Barrick Gold Corp selling a 50 per cent stake in its Veladero mine in Argentina to Chinese mining company Shangdong Gold Group. Analysts make remarks about this company on Stock Chase.
Barrick Gold Corporation is a gold mining company with a portfolio of operating mines, and advanced exploration and development projects located across five continents. Its web site is here Barrick Gold Corp.
The last stock I wrote about was about was Leon's Furniture Ltd. (TSX-LNF, OTC-LEFUF)... learn more . The next stock I will write about will be Pembina Pipelines Corp. (TSX-PPL, NYSE-PBA)... learn more on Wednesday, April 12, 2017 around 5 pm. Tomorrow on my other blog I will write about Stocks Suggestions... learn more on April 11, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
Friday, April 7, 2017
Leon's Furniture Ltd
Sound bite for Twitter and StockTwits is: Dividend growth Consumer stock. This stock is current at a rather attractive price. The Leon family control this company and not everyone is fond of such companies. I do not mind if they are well run. See my spreadsheet on Leon's Furniture Ltd.
I own this stock of Leon's Furniture Ltd (TSX-LNF, OTC-LEFUF). I had some money in 2006 and this stock has been on MPL Communication's Investor Reporter list for some time. It was also on Mike Higgs' Dividend Growth Stock list. I bought some in 2006 and then some more in 2008, 2009, 2010 and 2013.
This dividend growth stock has not been a big winner. I have made a total return of 7.19% per year with 2.92% from dividends and 4.27% from capital gain. The dividends paid of $3.37 per share have paid 28.8% of the cost of my stock. I have had this stock for just less than 11 years. It should also be noted that this current long slow recovery has not be good for a number of stocks.
The dividend yield is low to moderate. The current dividend yield is moderate at 2.8% based on dividends of $0.48 and a stock price of $16.98. The historical median dividend yield is low at 1.9%. The 5 and 10 year median dividend yields are moderate at 2.5% and 2.6% respectively.
The dividend growth is low with growth at 2.1% and 4.8% per year over the past 5 and 10 years. I should point out that dividends were flat from 2012 to 2017. This year the dividends were increased by 20%. Dividend increases has always been inconsistent for this stock. After owning this stock for just less than11 years I am earning a good dividend of 4.3% on the stock I bought in 2006.
Dividend Payout Ratio has been moderate. The DPR for EPS for 2016 was 37% with a 5 year value of 47%. DPR in 2012 reached unusually high for this stock at 85%. Generally speaking DPR for EPS was previous in the 20% and 30% ranges. The DPR for 2017 is expected to be around 38%.
For this stock the Debt/Market Cap Ratio is 0.25. This ratio is a good one. The Debt Ratio at 1.69 is also a good ratio. The Liquidity Ratio is low at 1.28 and a 5 year median of 1.15. I prefer this to be 1.50 or higher. However, if you add in cash flow after dividends it is an acceptable 1.60. The Leverage and Debt/Equity Ratios are not great, but not unusual for a Consumer Discretionary stock.
The 5 year low, median and high median Price/Earnings per Share Ratios are 13.45, 16.40 and 18.65. The corresponding 10 year values are 13.43, 15.79 and 17.89. The corresponding historical ones are 12.37, 14.68 and 16.90. The current P/E Ratio is 14.03 based on a stock price of $16.98 and 2017 EPS estimate of $1.21. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a Graham Price of $15.72. The 10 year low, median and high median Price/Graham Price Ratios are 0.99, 1.19 and 1.38. The current P/GP Ratio is 1.08 based on a stock price of $16.98. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a 10 year median Price/Book Value per Share Ratio of 2.03. The current P/B Ratio is 1.87 based on BVPS of $9.08 and a stock price of $16.98. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get an historical dividend yield of 1.91%. The current dividend yield is 2.83% based on dividends of $0.48 and a stock price of $16.98. The current dividend yield is some 48% above the historical dividend yield. This stock price testing suggests that the stock price is relatively cheap. It is still below the historical high of 3.50%.
There seems to be only one analyst following this stock and the recommendation given is a Hold. The 12 months stock price given is $19.00. This implies a total return of 14.72% with 11.9% from capital gains and 2.83% from dividends.
This site of Sherwood Daily is looking at more technical valuations. One is the Piotroski F-Score. They give this stock a 7 where a score of 8 or 9 is vied as a strong stock and a score of 0-2 would be viewed as a weak stock. Ashwin Virk at Simply Wall Street looks at the company's balance sheet and debt and questions its debt load. I think that while the debt ratios are not the best, they are also not a present concern. A recent article in Buckeye Business Review looks at Leon's Gross Margins and other factors. They give it a Gross Margin score of 7 where 1 is good and 100 is considered bad. There is not much in the way of comments on this stock at Stock Chase. However, the comments made are generally positive.
Leon's Furniture Limited is a Canada-based company and is a retailer of home furnishings, electronics and appliances across Canada from Alberta to Newfoundland and Labrador. Leon's sells under several banners including Leon's, The Brick, Appliance Canada and United Furniture Warehouse. Its web site is here Leon's Furniture Ltd .
The last stock I wrote about was about was Russel Metals Inc. (TSX-RUS, OTC- RUSMF)... learn more . The next stock I will write about will Barrick Gold Corp. (TSX-ABX, NYSE-ABX)... learn more on Monday, April 10, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
I own this stock of Leon's Furniture Ltd (TSX-LNF, OTC-LEFUF). I had some money in 2006 and this stock has been on MPL Communication's Investor Reporter list for some time. It was also on Mike Higgs' Dividend Growth Stock list. I bought some in 2006 and then some more in 2008, 2009, 2010 and 2013.
This dividend growth stock has not been a big winner. I have made a total return of 7.19% per year with 2.92% from dividends and 4.27% from capital gain. The dividends paid of $3.37 per share have paid 28.8% of the cost of my stock. I have had this stock for just less than 11 years. It should also be noted that this current long slow recovery has not be good for a number of stocks.
The dividend yield is low to moderate. The current dividend yield is moderate at 2.8% based on dividends of $0.48 and a stock price of $16.98. The historical median dividend yield is low at 1.9%. The 5 and 10 year median dividend yields are moderate at 2.5% and 2.6% respectively.
The dividend growth is low with growth at 2.1% and 4.8% per year over the past 5 and 10 years. I should point out that dividends were flat from 2012 to 2017. This year the dividends were increased by 20%. Dividend increases has always been inconsistent for this stock. After owning this stock for just less than11 years I am earning a good dividend of 4.3% on the stock I bought in 2006.
Dividend Payout Ratio has been moderate. The DPR for EPS for 2016 was 37% with a 5 year value of 47%. DPR in 2012 reached unusually high for this stock at 85%. Generally speaking DPR for EPS was previous in the 20% and 30% ranges. The DPR for 2017 is expected to be around 38%.
For this stock the Debt/Market Cap Ratio is 0.25. This ratio is a good one. The Debt Ratio at 1.69 is also a good ratio. The Liquidity Ratio is low at 1.28 and a 5 year median of 1.15. I prefer this to be 1.50 or higher. However, if you add in cash flow after dividends it is an acceptable 1.60. The Leverage and Debt/Equity Ratios are not great, but not unusual for a Consumer Discretionary stock.
The 5 year low, median and high median Price/Earnings per Share Ratios are 13.45, 16.40 and 18.65. The corresponding 10 year values are 13.43, 15.79 and 17.89. The corresponding historical ones are 12.37, 14.68 and 16.90. The current P/E Ratio is 14.03 based on a stock price of $16.98 and 2017 EPS estimate of $1.21. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a Graham Price of $15.72. The 10 year low, median and high median Price/Graham Price Ratios are 0.99, 1.19 and 1.38. The current P/GP Ratio is 1.08 based on a stock price of $16.98. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a 10 year median Price/Book Value per Share Ratio of 2.03. The current P/B Ratio is 1.87 based on BVPS of $9.08 and a stock price of $16.98. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get an historical dividend yield of 1.91%. The current dividend yield is 2.83% based on dividends of $0.48 and a stock price of $16.98. The current dividend yield is some 48% above the historical dividend yield. This stock price testing suggests that the stock price is relatively cheap. It is still below the historical high of 3.50%.
There seems to be only one analyst following this stock and the recommendation given is a Hold. The 12 months stock price given is $19.00. This implies a total return of 14.72% with 11.9% from capital gains and 2.83% from dividends.
This site of Sherwood Daily is looking at more technical valuations. One is the Piotroski F-Score. They give this stock a 7 where a score of 8 or 9 is vied as a strong stock and a score of 0-2 would be viewed as a weak stock. Ashwin Virk at Simply Wall Street looks at the company's balance sheet and debt and questions its debt load. I think that while the debt ratios are not the best, they are also not a present concern. A recent article in Buckeye Business Review looks at Leon's Gross Margins and other factors. They give it a Gross Margin score of 7 where 1 is good and 100 is considered bad. There is not much in the way of comments on this stock at Stock Chase. However, the comments made are generally positive.
Leon's Furniture Limited is a Canada-based company and is a retailer of home furnishings, electronics and appliances across Canada from Alberta to Newfoundland and Labrador. Leon's sells under several banners including Leon's, The Brick, Appliance Canada and United Furniture Warehouse. Its web site is here Leon's Furniture Ltd .
The last stock I wrote about was about was Russel Metals Inc. (TSX-RUS, OTC- RUSMF)... learn more . The next stock I will write about will Barrick Gold Corp. (TSX-ABX, NYSE-ABX)... learn more on Monday, April 10, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
Wednesday, April 5, 2017
Russel Metals Inc.
Sound bite for Twitter and StockTwits is: Dividend paying industrial. Since I have not done that well with this stock, I was hoping that the current stock price would be cheap. However, it is currently testing at just reasonable. However, if you consider the cash on hand in the stock price, the current price might be considered cheap. The current recovery has not been very kind to a lot of companies. See my spreadsheet on Russel Metals Inc.
I own this stock of Russel Metals Inc. (TSX-RUS, OTC-RUSMF). This was a stock on Mike Higgs' Canadian Dividend Growth List. In 2007 I needed to reduce my holdings of Loblaws and buy something to help replace the dividends I had been earning. With Russel Metals, both Mike and TD recommend buying at this time. However I should keep a watch on this stock as it has had some troubles in the past.
This stock has been a poor performer for me. I have had it for almost 10 years. It has a total return of 5.42% per year with 5.33% from dividends and 0.09% from capital gains. I have an average price of $25.84 per share and the stock is currently worth $26.02. Dividends have been quite good. I have received $10.76 of dividends per share and so dividends have covered some 41.6% of my stock's cost.
This used to be a dividend growth stocks. However dividends have not grown since.2015. This is probably because the Dividend Payout Ratio in 2016 was 150% with a 5 year value of 159%. Analysts feel that the dividends will be covered by EPS in 2017 and then the DPR for EPS will move to around 85% in 2018.
This company is an industrial stock and industrial stocks tend to be volatile. The good thing is the good debt ratios. If you are in a volatile industry having good debt ratios are a must. Debt/Market Cap Ratio is just 0.19. The Liquidity Ratio is 3.31 and the Debt Ratio is 2.21 for 2016. These last two ratios should be at 150 or above so at their levels they are good. Leverage and Debt/Equity Ratios for 2016 are also good at 1.83 and 0.83.
The 5 year low, median and high median Price/Earnings per Share Ratios are 13.80, 16.09 and 19.21. The 10 year corresponding values are 12.95, 15.90 and 18.41. The historical values are 8.22, 9.69 and 11.17. The historical values are a lot lower than more recent values. The current P/E Ratio is 17.23 based on a stock price of $26.02 and EPS estimate for 2017 of $1.51. This stock price testing suggests that the stock price is relatively reasonable but above the median to relatively expensive.
I get a Graham Price of $21.31. The 10 year low, median and high median Price/Earnings per Share Ratios are 0.89, 1.13 and 1.38. The current P/GP Ratio is 1.22 based on a stock price of $26.02. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get a 10 year Price/Book Value per Share Ratio of 1.83. The current P/B Ratio is 1.95 a value some 6.6% higher. The current P/B Ratio is based on BVPS of $13.37 and a Stock Price of $26.02. This stock price testing suggests that the stock price is relatively reasonable but above the median.
The historical median dividend yield is 4.87%. The current dividend yield is 5.84% based on dividends of $1.52 and a stock price of $26.02. The current dividend yield is some 19.95% above the historical median dividend yield. This stock price testing suggests that the stock price is reasonable and below the median. If the current dividend yield has been 20% above the historical median dividend yield the test would show that the stock price was relatively cheap.
One thing to mention is the amount of cash this company currently has. It has $2.94 per share which is 11.3% of the current stock price. That would basically make the true cost of the stock at $23.08. It would give the stock a current P/E of 15.28 It would give the stock a current P/GP Ratio of 1.08. It would make the current P/B Ratio be 1.73. All these changes would move the stock price to a relatively reasonable and below the median position. It would move the dividend yield to 6.59% and put this stock price testing to relatively cheap with a dividend yield some 35% below the historical median dividend yield.
When I look at analysts' recommendations, I find Buy and Hold recommendations. Most are Buy recommendations and the consensus recommendation is a Buy. The 12 month stock price consensus is $28.95. This implies a total return of 17.10% with 11.26% from capital gains and 5.84% from dividends.
Amy Steele on The Cerbat Gem says that TD Bank reiterated its Hold rating for this stock. This company has a Press Release News Wire about their 2016 results. See what analysts are saying about this stock on Stock Chase. Most remarks are positive.
Russel Metals Inc. is one of the largest metals distribution and processing companies in North America. The Company primarily distributes steel products and conducts its distribution business in three principal business segments: metals service centers; energy tubular products and steel distributors. Its web site is here Russel Metals Inc.
The last stock I wrote about was about was Toromont Industries Ltd. (TSX-TIH, OTC-TMTNF)... learn more . The next stock I will write about will be Leon's Furniture Ltd. (TSX-LNF, OTC-LEFUF)... learn more on Friday, April 7, 2017 around 5 pm. Tomorrow on my other blog I will write about Something to Buy April 2017... learn more on Thursday, April 6, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
I own this stock of Russel Metals Inc. (TSX-RUS, OTC-RUSMF). This was a stock on Mike Higgs' Canadian Dividend Growth List. In 2007 I needed to reduce my holdings of Loblaws and buy something to help replace the dividends I had been earning. With Russel Metals, both Mike and TD recommend buying at this time. However I should keep a watch on this stock as it has had some troubles in the past.
This stock has been a poor performer for me. I have had it for almost 10 years. It has a total return of 5.42% per year with 5.33% from dividends and 0.09% from capital gains. I have an average price of $25.84 per share and the stock is currently worth $26.02. Dividends have been quite good. I have received $10.76 of dividends per share and so dividends have covered some 41.6% of my stock's cost.
This used to be a dividend growth stocks. However dividends have not grown since.2015. This is probably because the Dividend Payout Ratio in 2016 was 150% with a 5 year value of 159%. Analysts feel that the dividends will be covered by EPS in 2017 and then the DPR for EPS will move to around 85% in 2018.
This company is an industrial stock and industrial stocks tend to be volatile. The good thing is the good debt ratios. If you are in a volatile industry having good debt ratios are a must. Debt/Market Cap Ratio is just 0.19. The Liquidity Ratio is 3.31 and the Debt Ratio is 2.21 for 2016. These last two ratios should be at 150 or above so at their levels they are good. Leverage and Debt/Equity Ratios for 2016 are also good at 1.83 and 0.83.
The 5 year low, median and high median Price/Earnings per Share Ratios are 13.80, 16.09 and 19.21. The 10 year corresponding values are 12.95, 15.90 and 18.41. The historical values are 8.22, 9.69 and 11.17. The historical values are a lot lower than more recent values. The current P/E Ratio is 17.23 based on a stock price of $26.02 and EPS estimate for 2017 of $1.51. This stock price testing suggests that the stock price is relatively reasonable but above the median to relatively expensive.
I get a Graham Price of $21.31. The 10 year low, median and high median Price/Earnings per Share Ratios are 0.89, 1.13 and 1.38. The current P/GP Ratio is 1.22 based on a stock price of $26.02. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get a 10 year Price/Book Value per Share Ratio of 1.83. The current P/B Ratio is 1.95 a value some 6.6% higher. The current P/B Ratio is based on BVPS of $13.37 and a Stock Price of $26.02. This stock price testing suggests that the stock price is relatively reasonable but above the median.
The historical median dividend yield is 4.87%. The current dividend yield is 5.84% based on dividends of $1.52 and a stock price of $26.02. The current dividend yield is some 19.95% above the historical median dividend yield. This stock price testing suggests that the stock price is reasonable and below the median. If the current dividend yield has been 20% above the historical median dividend yield the test would show that the stock price was relatively cheap.
One thing to mention is the amount of cash this company currently has. It has $2.94 per share which is 11.3% of the current stock price. That would basically make the true cost of the stock at $23.08. It would give the stock a current P/E of 15.28 It would give the stock a current P/GP Ratio of 1.08. It would make the current P/B Ratio be 1.73. All these changes would move the stock price to a relatively reasonable and below the median position. It would move the dividend yield to 6.59% and put this stock price testing to relatively cheap with a dividend yield some 35% below the historical median dividend yield.
When I look at analysts' recommendations, I find Buy and Hold recommendations. Most are Buy recommendations and the consensus recommendation is a Buy. The 12 month stock price consensus is $28.95. This implies a total return of 17.10% with 11.26% from capital gains and 5.84% from dividends.
Amy Steele on The Cerbat Gem says that TD Bank reiterated its Hold rating for this stock. This company has a Press Release News Wire about their 2016 results. See what analysts are saying about this stock on Stock Chase. Most remarks are positive.
Russel Metals Inc. is one of the largest metals distribution and processing companies in North America. The Company primarily distributes steel products and conducts its distribution business in three principal business segments: metals service centers; energy tubular products and steel distributors. Its web site is here Russel Metals Inc.
The last stock I wrote about was about was Toromont Industries Ltd. (TSX-TIH, OTC-TMTNF)... learn more . The next stock I will write about will be Leon's Furniture Ltd. (TSX-LNF, OTC-LEFUF)... learn more on Friday, April 7, 2017 around 5 pm. Tomorrow on my other blog I will write about Something to Buy April 2017... learn more on Thursday, April 6, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
Monday, April 3, 2017
Toromont Industries Ltd
First of all I want to say that I bought an extra 100 shares of Goodfellow Inc. this morning with dividend income in my TFSA. These shares have been going south since October of 2016 and current are very cheap.
Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. This dividend growth stocks has rather low yield and rather low increases so it may not satisfy some dividend growth investors. You could also expect volatility from this stock. I look to have different sorts of dividend growth stocks and this is why I have this one. That said, the stock is rather expensive presently and I would think that in future you could get it for a better than the current 1.63% yield. See my spreadsheet on Toromont Industries Ltd.
I own this stock of Toromont Industries Ltd (TSX-TIH, OTC-TMTNF). This is one of the stocks I bought after selling Loblaws in 2008. This was a stock on Mike Higgs' Canadian Dividend Growth Stock list. I bought more in 2008 after selling Onex and AGF Management. I also bought more 2011.
I have not done badly by this stock. I have had shares in this company for almost 10 years. I have a total return of 11.84% per year with 9.93% from capital gains and 1.91% from dividends. I have received $5.22 per share in dividends and the dividends so far has covered 19% of the cost of my stock.
They are basically a dividend growth company, but dividends have been cut in the past. The dividend yield is low as is the dividend increases. The current dividend yield is 1.63% based on dividends of $0.76 and a stock price of $46.63. The historical median dividend yield is 1.97%. The 5 and 10 year median dividend yield does reach a moderate level at 2.10% and 2.20% respectively.
The dividend growth is also low with growth at 6% and 5.9% per year over the past 5 and 10 years. The most recent dividend increase happened in 2017 and it was for 5.6%.
The Dividend Payout Ratios are low with the DPR for EPS for 2016 at 36% and a 5 year DPR at 34%. The DPR for CFPS for 2016 is at 36% and the 5 year DPR for CFPS is lower at 26%.
The thing with this industrial stock is the good debt ratios. The Debt/Market Cap Ratio for 2016 is just 0.05. The Liquidity Ratio is 2.73 for 2016 with a 5 year median of 2.27. The Debt Ratio is 2.69 for 2016 with a 5 year median of 2.26. The Leverage and Debt/Equity Ratios are 1.59 and 0.59 respectively. These are all great ratios.
A negative thing about this stock is the low growth in revenue. Revenue is up by 6.2% and .6% per year over the past and 10 years. Revenue per Share is up by 5.7% and a negative 1.4% per year over the past 5 and 10 years. The 5 year running average is down by 4.7% and .4% over the past 5 and 10 years (so revenue growth over the past 5 and 10 years is not as good as the prior 5 year periods). They suffered a 40% decrease in revenue in 2011, but since then revenue has been growing.
The 5 year low, median and high median Price/Earnings per Share Ratios are 13.97, 15.68 and 16.88. The corresponding 10 year ratios are 12.97, 14.70 and 16.52. The corresponding historical ratios are 12.78, 14.66 and 18.55. The current P/E Ratio is 21.85 based on a stock price of $46.53 and 2017 EPS estimate of $2.13. This stock price testing suggests that the stock price is relatively expensive.
I get a Graham Price of $23.27. The 10 year low, median and high median Price/Graham Price Ratios are 1.25, 1.47 and 1.61. The current P/GP Ratio is 2.00 based on a stock price of $46.53. This stock price testing suggests that the stock price is relatively expensive.
I get a 10 year Price/Book Value per Share Ratio of 3.14. The current P/B Ratio is 4.12 based on a stock price of $46.53 and BVPS of $11.29. The current ratio is some 31% higher than the 10 year ratio. This stock price testing suggests that the stock price is relatively expensive.
The historical median dividend yield is 1.97%. The current dividend yield is 1.63% based on a stock price of $46.53 and dividends of $0.76. The current yield is some 17% lower than the historical dividend yield. This stock price testing suggests that the stock price is relatively expensive.
When I look at analysts' recommendations, I find Buy and Hold recommendations. Only one is a Buy and so the consensus recommendation is a Hold. The 12 month stock price is $43.71. This implies a total return of a loss of 4.43% with a capital loss 6.06% and dividends of 1.63%.
Ryan Goldsman on Motley Fool is rather negative about this stock. DPR Staff on Dasher Business Review give a more technical view of this stock. Asher Wright of Simply Wall Street talks about this company's debt coverage. See what analysts are saying about this stock on Stock Chase. They mostly like this stock.
Toromont Industries Ltd. operates one of the world's largest Caterpillar dealers, covering Ontario, Manitoba, and the majority of Nunavut and Newfoundland and Labrador. Toromont also owns Battlefield, an associated equipment rental business, and CIMCO, which is Canada's largest industrial and recreational refrigeration equipment supplier. Its web site is here Toromont Industries Ltd.
The last stock I wrote about was about was DH Corp (TSX-DH, OTC-DHIFF)... learn more . The next stock I will write about will be Russel Metals Inc. (TSX-RUS, OTC- RUSMF)... learn more on Wednesday, April 5, 2017 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks April 2017... learn more on Tuesday, April 4, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. This dividend growth stocks has rather low yield and rather low increases so it may not satisfy some dividend growth investors. You could also expect volatility from this stock. I look to have different sorts of dividend growth stocks and this is why I have this one. That said, the stock is rather expensive presently and I would think that in future you could get it for a better than the current 1.63% yield. See my spreadsheet on Toromont Industries Ltd.
I own this stock of Toromont Industries Ltd (TSX-TIH, OTC-TMTNF). This is one of the stocks I bought after selling Loblaws in 2008. This was a stock on Mike Higgs' Canadian Dividend Growth Stock list. I bought more in 2008 after selling Onex and AGF Management. I also bought more 2011.
I have not done badly by this stock. I have had shares in this company for almost 10 years. I have a total return of 11.84% per year with 9.93% from capital gains and 1.91% from dividends. I have received $5.22 per share in dividends and the dividends so far has covered 19% of the cost of my stock.
They are basically a dividend growth company, but dividends have been cut in the past. The dividend yield is low as is the dividend increases. The current dividend yield is 1.63% based on dividends of $0.76 and a stock price of $46.63. The historical median dividend yield is 1.97%. The 5 and 10 year median dividend yield does reach a moderate level at 2.10% and 2.20% respectively.
The dividend growth is also low with growth at 6% and 5.9% per year over the past 5 and 10 years. The most recent dividend increase happened in 2017 and it was for 5.6%.
The Dividend Payout Ratios are low with the DPR for EPS for 2016 at 36% and a 5 year DPR at 34%. The DPR for CFPS for 2016 is at 36% and the 5 year DPR for CFPS is lower at 26%.
The thing with this industrial stock is the good debt ratios. The Debt/Market Cap Ratio for 2016 is just 0.05. The Liquidity Ratio is 2.73 for 2016 with a 5 year median of 2.27. The Debt Ratio is 2.69 for 2016 with a 5 year median of 2.26. The Leverage and Debt/Equity Ratios are 1.59 and 0.59 respectively. These are all great ratios.
A negative thing about this stock is the low growth in revenue. Revenue is up by 6.2% and .6% per year over the past and 10 years. Revenue per Share is up by 5.7% and a negative 1.4% per year over the past 5 and 10 years. The 5 year running average is down by 4.7% and .4% over the past 5 and 10 years (so revenue growth over the past 5 and 10 years is not as good as the prior 5 year periods). They suffered a 40% decrease in revenue in 2011, but since then revenue has been growing.
The 5 year low, median and high median Price/Earnings per Share Ratios are 13.97, 15.68 and 16.88. The corresponding 10 year ratios are 12.97, 14.70 and 16.52. The corresponding historical ratios are 12.78, 14.66 and 18.55. The current P/E Ratio is 21.85 based on a stock price of $46.53 and 2017 EPS estimate of $2.13. This stock price testing suggests that the stock price is relatively expensive.
I get a Graham Price of $23.27. The 10 year low, median and high median Price/Graham Price Ratios are 1.25, 1.47 and 1.61. The current P/GP Ratio is 2.00 based on a stock price of $46.53. This stock price testing suggests that the stock price is relatively expensive.
I get a 10 year Price/Book Value per Share Ratio of 3.14. The current P/B Ratio is 4.12 based on a stock price of $46.53 and BVPS of $11.29. The current ratio is some 31% higher than the 10 year ratio. This stock price testing suggests that the stock price is relatively expensive.
The historical median dividend yield is 1.97%. The current dividend yield is 1.63% based on a stock price of $46.53 and dividends of $0.76. The current yield is some 17% lower than the historical dividend yield. This stock price testing suggests that the stock price is relatively expensive.
When I look at analysts' recommendations, I find Buy and Hold recommendations. Only one is a Buy and so the consensus recommendation is a Hold. The 12 month stock price is $43.71. This implies a total return of a loss of 4.43% with a capital loss 6.06% and dividends of 1.63%.
Ryan Goldsman on Motley Fool is rather negative about this stock. DPR Staff on Dasher Business Review give a more technical view of this stock. Asher Wright of Simply Wall Street talks about this company's debt coverage. See what analysts are saying about this stock on Stock Chase. They mostly like this stock.
Toromont Industries Ltd. operates one of the world's largest Caterpillar dealers, covering Ontario, Manitoba, and the majority of Nunavut and Newfoundland and Labrador. Toromont also owns Battlefield, an associated equipment rental business, and CIMCO, which is Canada's largest industrial and recreational refrigeration equipment supplier. Its web site is here Toromont Industries Ltd.
The last stock I wrote about was about was DH Corp (TSX-DH, OTC-DHIFF)... learn more . The next stock I will write about will be Russel Metals Inc. (TSX-RUS, OTC- RUSMF)... learn more on Wednesday, April 5, 2017 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks April 2017... learn more on Tuesday, April 4, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
Friday, March 31, 2017
DH Corp
Sound bite for Twitter and StockTwits is: Being bought out. On most tests the current stock price is relatively expensive. This would suggest that the buyout price is a good price for shareholders. I cannot do a dividend yield stock price test because of the recent decrease in dividends. See my spreadsheet on DH Corp.
I own this stock of DH Corp (TSX-DH, OTC-DHIFF). In March 2009, I started to review this stock as I have recently been reading about it and I am considering buying it. This is an income Trust stock and it has been recommended a number of times by the Investment Reporter. Dividend yield was good and they had a history of dividend increases.
The first thing to mention is that DH Corp has agreed to be acquired by Vista Equity Partners at $25.50. Apparently shareholders will get to vote on this in May. I am currently thinking of selling my shares. Waiting until the end will not get me much more money and if the deal does not go through then the share price will drop.
This company as an income trust was a dividend growth company. However, since changing to a corporation they first decreased their dividend and then made one increase of 3.2% in 2012. Dividends have been flat since then until 2017 when dividends were again decreased. Dividends were decreased by 63% in 2017.
Dividend yield is currently low with a current yield of 1.9%. However, the yield was higher, with a 5 year median of 4.7% until the recent dividend decrease. Since the company is going to be bought out there is no much future for any change in dividends.
The 5 year low, median and high median Price/Earnings per Share Ratios are 20.68, 24.66 and 28.65. The corresponding 10 year ratios are 9.80, 11.74 and 13.69. The historical ratios are 10.06, 11.74 and 13.99. It would appear that the recent offer occurs with the expansion of the P/E Ratios. The current P/E Ratio is 28.99. This stock price testing suggests that the stock price is relatively expensive.
I get a Graham Price of $19.76. The 10 year low, median and high median Price/Graham Price Ratios are 0.78, 1.01 and 1.15. The current P/GP Ratio is 1.28 based on a stock price of $25.22. Here again it would appear that the stock price is relatively expensive.
I get a 10 year median Price/Book Value per Share Ratio of 1.64. The current P/B Ratio is 2.18 based on BVPS of $19.95 and a stock price of $25.22. The current P/B Ratio is some 33% above the 10 years median P/B Ratio. The current stock price testing would suggest again that the stock price is relatively expensive.
I get a 10 year median P/S Ratio of 2.08. The current P/S Ratio is 1.58. This ratio is based on Revenue of $1709M, Revenue per Share of $15.99 and a stock price of $25.22. This stock price testing suggests that the stock price is relatively cheap.
When I look at analysts' recommendations, I find Strong Buy, Buy, Hold and Underperform. Besides 3 other recommendations, all the rest are Hold recommendations. The consensus recommendations would be Hold recommendations. The 12 month consensus stock price is $25.50. This implies a total return of $3.01% with 1.90% from dividends and 1.11% from capital gains based on a current price of $25.22.
See what analysts are saying on Stock Chase. Mostly that is best to sell and move on. From the Canadian Press there is an article in the G&M about the buyout of this stock. According to Charlotte Bryant on Chaffey Breeze a number of analysts have recently raised the stock price target above $25.50 which is Vista Equity Partners' offer.
DH Corp is a leading solutions provider to the financial services marketplace. Founded in 1875, the company today provides innovative programs, technology products and technology based business services to customers who offer chequing accounts, credit card accounts and personal, commercial, and other lending and leasing products. Its web site is here DH Corp.
The last stock I wrote about was about was Sun Life Financial Inc. (TSX-SLF, NYSE-SLF)... learn more . The next stock I will write about will be Toromont Industries Ltd. (TSX-TIH, OTC-TMTNF)... learn more on Monday, April 3, 2017 around 5 pm.
Also, on my book blog I have put a review of the book The Return of History by Jennifer Welsh learn more...
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
I own this stock of DH Corp (TSX-DH, OTC-DHIFF). In March 2009, I started to review this stock as I have recently been reading about it and I am considering buying it. This is an income Trust stock and it has been recommended a number of times by the Investment Reporter. Dividend yield was good and they had a history of dividend increases.
The first thing to mention is that DH Corp has agreed to be acquired by Vista Equity Partners at $25.50. Apparently shareholders will get to vote on this in May. I am currently thinking of selling my shares. Waiting until the end will not get me much more money and if the deal does not go through then the share price will drop.
This company as an income trust was a dividend growth company. However, since changing to a corporation they first decreased their dividend and then made one increase of 3.2% in 2012. Dividends have been flat since then until 2017 when dividends were again decreased. Dividends were decreased by 63% in 2017.
Dividend yield is currently low with a current yield of 1.9%. However, the yield was higher, with a 5 year median of 4.7% until the recent dividend decrease. Since the company is going to be bought out there is no much future for any change in dividends.
The 5 year low, median and high median Price/Earnings per Share Ratios are 20.68, 24.66 and 28.65. The corresponding 10 year ratios are 9.80, 11.74 and 13.69. The historical ratios are 10.06, 11.74 and 13.99. It would appear that the recent offer occurs with the expansion of the P/E Ratios. The current P/E Ratio is 28.99. This stock price testing suggests that the stock price is relatively expensive.
I get a Graham Price of $19.76. The 10 year low, median and high median Price/Graham Price Ratios are 0.78, 1.01 and 1.15. The current P/GP Ratio is 1.28 based on a stock price of $25.22. Here again it would appear that the stock price is relatively expensive.
I get a 10 year median Price/Book Value per Share Ratio of 1.64. The current P/B Ratio is 2.18 based on BVPS of $19.95 and a stock price of $25.22. The current P/B Ratio is some 33% above the 10 years median P/B Ratio. The current stock price testing would suggest again that the stock price is relatively expensive.
I get a 10 year median P/S Ratio of 2.08. The current P/S Ratio is 1.58. This ratio is based on Revenue of $1709M, Revenue per Share of $15.99 and a stock price of $25.22. This stock price testing suggests that the stock price is relatively cheap.
When I look at analysts' recommendations, I find Strong Buy, Buy, Hold and Underperform. Besides 3 other recommendations, all the rest are Hold recommendations. The consensus recommendations would be Hold recommendations. The 12 month consensus stock price is $25.50. This implies a total return of $3.01% with 1.90% from dividends and 1.11% from capital gains based on a current price of $25.22.
See what analysts are saying on Stock Chase. Mostly that is best to sell and move on. From the Canadian Press there is an article in the G&M about the buyout of this stock. According to Charlotte Bryant on Chaffey Breeze a number of analysts have recently raised the stock price target above $25.50 which is Vista Equity Partners' offer.
DH Corp is a leading solutions provider to the financial services marketplace. Founded in 1875, the company today provides innovative programs, technology products and technology based business services to customers who offer chequing accounts, credit card accounts and personal, commercial, and other lending and leasing products. Its web site is here DH Corp.
The last stock I wrote about was about was Sun Life Financial Inc. (TSX-SLF, NYSE-SLF)... learn more . The next stock I will write about will be Toromont Industries Ltd. (TSX-TIH, OTC-TMTNF)... learn more on Monday, April 3, 2017 around 5 pm.
Also, on my book blog I have put a review of the book The Return of History by Jennifer Welsh learn more...
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
Wednesday, March 29, 2017
Sun Life Financial Inc.
Sound bite for Twitter and StockTwits is: Dividend growth financial. The stock price seem current reasonable, but some tests show it above the median. I believe this stock should do well in the longer term. See my spreadsheet on Sun Life Financial Inc..
I own this stock of Sun Life Financial Inc. (TSX-SLF, NYSE-SLF). I first bought this stock in 2000 when it was first demutualized. It was very cheap. I bought more in 2001, 2003 and 2006. This stock was on Mike Higgs' Canadian Dividend Growth stock list and on the other dividend lists that I followed.
I expect to do well in the long term on this stock. However, my total return to date is not great. I have a total return of 7.06% per year with 3.54% from capital gain and 3.52% from dividends. I have held this stock for almost 17 years. Some 60% of my stock's original cost has been paid by dividends. Life Insurance companies are doing better, but very low interest rates have done a lot of harm.
The dividend yield is moderate. The current dividend yield is 3.46% based on dividends of $1.68 and a share price of $48.54. The 5 year median dividend yield is 3.67%, the 10 year median dividend yield is 4.18% and the historical median dividend yield is 3.54%.
Dividend growth is currently low. The 5 and 10 year growth is at 2.2% and 3.4% per year. This is because there were no dividend increases between 2008 and 2014. Dividend increases just resumed in 2015. This last dividend increase was at the end of 2016 and was for 3.7%. However, dividends increase by 6.3% in 2016 because there were two increases in 2016.
Dividend Payout Ratios were generally quite high in years of flat dividends. However, for 2016 the DPR for EPS was 40%. The 5 year median DPR for EPS is 51%. The DPR for CFPS is low in 2016 at 15% and its 5 year median is 17%.
The largest debt for Life Insurance companies is for insurance contracts. With this company the Debt/Market Cap Ratio is 3.64. It is normal to have a high Debt/Market Cap Ratio for Life Insurance companies. I get a Liquidity Ratio of 1.65 for this company. Liquidity Ratios are not very important for Life Insurance companies. The Debt Ratio is 1.09 and this is good for an insurance company. Leverage and Debt/Equity Ratios for 2016 are 11.54 and 10.54. These are rather good for an insurance company.
When dealing with financial sector stocks, you should compare their debt ratios to other financials or insurance companies to get a sense of what is good or not. Financials have quite different takes on debt ratios than other sectors may have.
The 5 year low, median and high median Price/Earnings per Share Ratios are 10.54, 11.69 and 13.27. The 10 year corresponding values are 11.46, 12.56 and 13.87. The historical values are 12.01, 13.57 and 15.09. Part of the decline in stock price is the decline in the P/E Ratios. The current P/E Ratio is 13.23 based on a stock price of $48.54 and $3.67. In connection with recent P/E Ratios, this ratio is rather high, but not compared to historical data.
I get a Graham Price of $50.57. The 10 year low, median and high median Price/Graham Price Ratios are 0.70, 0.91 and 1.03. The current P/GP Ratio is 0.96 based on a stock price of $48.54. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get a 10 year median Price/Book Value per Share Ratio of 1.35. The current P/B Ratio is 1.57 based on a stock price of $48.54 and BVPS of $30.97. The current ratio is some 16% higher than the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get an historical dividend yield of 3.54%. The current dividend of 3.46% is some 2% lower. The current dividend yield is based on dividends of $1.68 and a stock price of $48.54. This stock price testing suggests that the stock price is relatively reasonable and around the median.
When I look at analysts' recommendations, I find Buy, Hold and Underperform Recommendations. Most of the recommendations are a Hold and the consensus would be a Hold. The 12 month stock price consensus is $54.00. This implies a total return of 14.715 with 11.25% from capital gains and 3.46% from dividends.
This first article in the Insurance Journal talks about Sun Life reshuffling their executive team. An article by Zacks Research on the NASDAQ site talks about why you should hold on to Sun Life shares. Jonathan Ratner at the Financial Post says that Sun Life expects to see a boast in earnings. See what analysts are saying about this stock on Stock Chase. They rather like this stock.
Sun Life Financial is a leading international financial services organization providing a diverse range of protection and wealth accumulation products and services to individuals and corporate customers. Chartered in 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. Its web site is here Sun Life Financial Inc.
The last stock I wrote about was about was BCE Inc. (TSX-BCE, NYSE-BCE)... learn more . The next stock I will write about will be DH Corp (TSX-DH, OTC-DHIFF)... learn more on Friday, March 31, 2017around 5 pm. Tomorrow on my other blog I will write about Type of Investor... learn more on Thursday, March 30, 2017around 5 pm.
Also, on my book blog I have put a review of the book Tribe by Sebastian Junger learn more...
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
I own this stock of Sun Life Financial Inc. (TSX-SLF, NYSE-SLF). I first bought this stock in 2000 when it was first demutualized. It was very cheap. I bought more in 2001, 2003 and 2006. This stock was on Mike Higgs' Canadian Dividend Growth stock list and on the other dividend lists that I followed.
I expect to do well in the long term on this stock. However, my total return to date is not great. I have a total return of 7.06% per year with 3.54% from capital gain and 3.52% from dividends. I have held this stock for almost 17 years. Some 60% of my stock's original cost has been paid by dividends. Life Insurance companies are doing better, but very low interest rates have done a lot of harm.
The dividend yield is moderate. The current dividend yield is 3.46% based on dividends of $1.68 and a share price of $48.54. The 5 year median dividend yield is 3.67%, the 10 year median dividend yield is 4.18% and the historical median dividend yield is 3.54%.
Dividend growth is currently low. The 5 and 10 year growth is at 2.2% and 3.4% per year. This is because there were no dividend increases between 2008 and 2014. Dividend increases just resumed in 2015. This last dividend increase was at the end of 2016 and was for 3.7%. However, dividends increase by 6.3% in 2016 because there were two increases in 2016.
Dividend Payout Ratios were generally quite high in years of flat dividends. However, for 2016 the DPR for EPS was 40%. The 5 year median DPR for EPS is 51%. The DPR for CFPS is low in 2016 at 15% and its 5 year median is 17%.
The largest debt for Life Insurance companies is for insurance contracts. With this company the Debt/Market Cap Ratio is 3.64. It is normal to have a high Debt/Market Cap Ratio for Life Insurance companies. I get a Liquidity Ratio of 1.65 for this company. Liquidity Ratios are not very important for Life Insurance companies. The Debt Ratio is 1.09 and this is good for an insurance company. Leverage and Debt/Equity Ratios for 2016 are 11.54 and 10.54. These are rather good for an insurance company.
When dealing with financial sector stocks, you should compare their debt ratios to other financials or insurance companies to get a sense of what is good or not. Financials have quite different takes on debt ratios than other sectors may have.
The 5 year low, median and high median Price/Earnings per Share Ratios are 10.54, 11.69 and 13.27. The 10 year corresponding values are 11.46, 12.56 and 13.87. The historical values are 12.01, 13.57 and 15.09. Part of the decline in stock price is the decline in the P/E Ratios. The current P/E Ratio is 13.23 based on a stock price of $48.54 and $3.67. In connection with recent P/E Ratios, this ratio is rather high, but not compared to historical data.
I get a Graham Price of $50.57. The 10 year low, median and high median Price/Graham Price Ratios are 0.70, 0.91 and 1.03. The current P/GP Ratio is 0.96 based on a stock price of $48.54. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get a 10 year median Price/Book Value per Share Ratio of 1.35. The current P/B Ratio is 1.57 based on a stock price of $48.54 and BVPS of $30.97. The current ratio is some 16% higher than the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get an historical dividend yield of 3.54%. The current dividend of 3.46% is some 2% lower. The current dividend yield is based on dividends of $1.68 and a stock price of $48.54. This stock price testing suggests that the stock price is relatively reasonable and around the median.
When I look at analysts' recommendations, I find Buy, Hold and Underperform Recommendations. Most of the recommendations are a Hold and the consensus would be a Hold. The 12 month stock price consensus is $54.00. This implies a total return of 14.715 with 11.25% from capital gains and 3.46% from dividends.
This first article in the Insurance Journal talks about Sun Life reshuffling their executive team. An article by Zacks Research on the NASDAQ site talks about why you should hold on to Sun Life shares. Jonathan Ratner at the Financial Post says that Sun Life expects to see a boast in earnings. See what analysts are saying about this stock on Stock Chase. They rather like this stock.
Sun Life Financial is a leading international financial services organization providing a diverse range of protection and wealth accumulation products and services to individuals and corporate customers. Chartered in 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. Its web site is here Sun Life Financial Inc.
The last stock I wrote about was about was BCE Inc. (TSX-BCE, NYSE-BCE)... learn more . The next stock I will write about will be DH Corp (TSX-DH, OTC-DHIFF)... learn more on Friday, March 31, 2017around 5 pm. Tomorrow on my other blog I will write about Type of Investor... learn more on Thursday, March 30, 2017around 5 pm.
Also, on my book blog I have put a review of the book Tribe by Sebastian Junger learn more...
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
Monday, March 27, 2017
BCE Inc.
Sound bite for Twitter and StockTwits is: Dividend growth Telecom. The stock price could currently be reasonable and below the median based on dividend yield testing. Other testing is really showing as relatively expensive. See my spreadsheet on BCE Inc.
I own this stock of BCE Inc. (TSX-BCE, NYSE-BCE). I bought this stock in 1982. At that time is was called an orphan and widow stock. In 2016 I sold Manitoba Telecom. To keep the same in Telecom category, I bought some more BCE with the proceeds. Since I bought this stock both Nortel and Bell Aliant were spin off. The problem with BCE's spinning off part of the company was that I ended up with an odd number of shares. It is annoying.
BCE is the first investment that I bought that I still own. I have actually done quite well. I have tracked this stock via Quicken since 1987 and have a total return of 12.84% per year with 5.33% from dividends and 7.51% from capital gains. This is over of period of 28 years. I have a spreadsheet on my early investments and from October 1982 until the end of 1987 when I started using quicken for the calculation, I made a total return of 11.46% per year on BCE.
Current this stock has a good dividend yield. The dividend yield is 4.87%. The 5 year median dividend yield is 4.89%, the 10 year dividend yield is 5.02% with an historical one of 4.54%. The dividend growth is low with the dividend growth for the past 5 and 10 years at 5.7% and 7.4% per year. The last dividend increase was at the beginning of this year and it was for 5.1%. They do not always increase the dividends. For example between 1997 and 2004, some 8 years, the dividend was flat.
The Dividend Payout Ratio for 2016 was 81% and over the past 5 years the dividend payout ratio was 80%. This is higher than the company says that it is aiming for as a while ago they said that they were aiming for a payout ratio between 65% and 75%.
Revenues have not been growing much. Also over the past 5 years outstanding shares have grown by 2.3%. So it is the Revenue per Share that is important. Over the past 5 and 10 years Revenues have grown by 2.2% per year. Over the past 5 Revenue per Share is flat and over the past 10 years Revenue per Share has grown by 1.3%.
Debt per se is not a problem. The Debt Ratio is 1.55 and the Debt/Market Cap Ratio is 0.33. However, the Liquidity Ratio is not great. This ratio for 2016 is 0.48 and it has a 5 year median of 0.50. If you add in cash flow after dividends it is 1.03. If you add back in the current portion of the long term debt the ratio is 0.93. If you add in the current portion of the long term debt and cash flow after dividends it is 1.99. This is, of course, where this stock is vulnerable. A good Liquidity Ratio is 1.50 or higher.
The 5 year low, median and high median Price/Earnings per Share Ratios are 16.05, 17.51 and 18.97. The corresponding 10 year ratios are 13.63, 15.06 and 16.50. The historical ones are 12.97, 15.07 and 16.07. The current P/E Ratio is 17.03 based on a stock price of $58.91 and 2017 EPS estimate of $3.46. Based on recent data the stock price is reasonable and below the median. Based on longer term data, the stock price would seem to be expensive.
I get a Graham Price of $34.79. The 10 year low, median and high median Price/Graham Price Ratios are 1.19, 1.42 and 1.54. The current P/GP Ratio is 1.69 based on a stock price of $58.91. This stock price testing suggests that the stock price is relatively expensive.
I get a 10 year Price/Book Value per Share Ratio of 2.90. The current P/B Ratio is 3.79. The current P/B Ratio is some 31% higher than the 10 year ratio. The current ratio is based on BVPS of $15.55 and a stock price of $58.91.
I get an historical dividend yield of 4.54%. The current dividend yield is some 7.3% higher at 4.87%. The current dividend yield is based on dividends of $2.87 and a stock price of $58.91. A higher dividend yield is better. This stock price testing suggests that the stock price is reasonable and below the median. The current dividend yield is also about the same as the 5 year median dividend yield of 4.89%.
When I look at analysts' recommendations, I find Buy, Hold and Underperform Recommendations. Most of the recommendations are a Hold and the consensus recommendation would be a Hold. The 12 month stock price is $59.88. This implies a total return of 6.52% with 1.65% from capital gains and 4.87% from Dividends based on a current stock price of $59.91.
There is an article by Emily Jackson in the Financial Post about BCE spending $854M on fiber-to-the-home broadband connections in its home base of Montreal. In another article by Emily Jackson in the Financial Post, she talks about BCE's CEO Cope's compensation reduced by 7% in 2016. Demetris Afxentiou of Motley Fool thinks that BCE remains a buy and forget superstar. See what analysts are saying about this stock on Stock Chase. They mainly like this stock.
BCE is Canada's largest communications company, providing the most comprehensive and innovative suite of communication services to residential and business customers in Canada. Operating under the Bell and Bell Aliant brands, the Company's services include Bell Home phone local and long distance services, Bell Mobility, Virgin Mobile and Solo Mobile wireless, high-speed Bell Internet, Bell TV direct-to-home satellite and VDSL television, IP-broadband services and information and communications technology (ICT) services. Its web site is here BCE Inc.
The last stock I wrote about was about was Melcor Developments Inc. (TSX-MRD, OTC-MODVF)... learn more . The next stock I will write about will be Sun Life Financial Inc. (TSX-SLF, NYSE-SLF)... learn more on Wednesday, March 29, 2017 around 5 pm. Tomorrow on my other blog I will write about Sectors I Invest In... learn more on Tuesday, March 28, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
I own this stock of BCE Inc. (TSX-BCE, NYSE-BCE). I bought this stock in 1982. At that time is was called an orphan and widow stock. In 2016 I sold Manitoba Telecom. To keep the same in Telecom category, I bought some more BCE with the proceeds. Since I bought this stock both Nortel and Bell Aliant were spin off. The problem with BCE's spinning off part of the company was that I ended up with an odd number of shares. It is annoying.
BCE is the first investment that I bought that I still own. I have actually done quite well. I have tracked this stock via Quicken since 1987 and have a total return of 12.84% per year with 5.33% from dividends and 7.51% from capital gains. This is over of period of 28 years. I have a spreadsheet on my early investments and from October 1982 until the end of 1987 when I started using quicken for the calculation, I made a total return of 11.46% per year on BCE.
Current this stock has a good dividend yield. The dividend yield is 4.87%. The 5 year median dividend yield is 4.89%, the 10 year dividend yield is 5.02% with an historical one of 4.54%. The dividend growth is low with the dividend growth for the past 5 and 10 years at 5.7% and 7.4% per year. The last dividend increase was at the beginning of this year and it was for 5.1%. They do not always increase the dividends. For example between 1997 and 2004, some 8 years, the dividend was flat.
The Dividend Payout Ratio for 2016 was 81% and over the past 5 years the dividend payout ratio was 80%. This is higher than the company says that it is aiming for as a while ago they said that they were aiming for a payout ratio between 65% and 75%.
Revenues have not been growing much. Also over the past 5 years outstanding shares have grown by 2.3%. So it is the Revenue per Share that is important. Over the past 5 and 10 years Revenues have grown by 2.2% per year. Over the past 5 Revenue per Share is flat and over the past 10 years Revenue per Share has grown by 1.3%.
Debt per se is not a problem. The Debt Ratio is 1.55 and the Debt/Market Cap Ratio is 0.33. However, the Liquidity Ratio is not great. This ratio for 2016 is 0.48 and it has a 5 year median of 0.50. If you add in cash flow after dividends it is 1.03. If you add back in the current portion of the long term debt the ratio is 0.93. If you add in the current portion of the long term debt and cash flow after dividends it is 1.99. This is, of course, where this stock is vulnerable. A good Liquidity Ratio is 1.50 or higher.
The 5 year low, median and high median Price/Earnings per Share Ratios are 16.05, 17.51 and 18.97. The corresponding 10 year ratios are 13.63, 15.06 and 16.50. The historical ones are 12.97, 15.07 and 16.07. The current P/E Ratio is 17.03 based on a stock price of $58.91 and 2017 EPS estimate of $3.46. Based on recent data the stock price is reasonable and below the median. Based on longer term data, the stock price would seem to be expensive.
I get a Graham Price of $34.79. The 10 year low, median and high median Price/Graham Price Ratios are 1.19, 1.42 and 1.54. The current P/GP Ratio is 1.69 based on a stock price of $58.91. This stock price testing suggests that the stock price is relatively expensive.
I get a 10 year Price/Book Value per Share Ratio of 2.90. The current P/B Ratio is 3.79. The current P/B Ratio is some 31% higher than the 10 year ratio. The current ratio is based on BVPS of $15.55 and a stock price of $58.91.
I get an historical dividend yield of 4.54%. The current dividend yield is some 7.3% higher at 4.87%. The current dividend yield is based on dividends of $2.87 and a stock price of $58.91. A higher dividend yield is better. This stock price testing suggests that the stock price is reasonable and below the median. The current dividend yield is also about the same as the 5 year median dividend yield of 4.89%.
When I look at analysts' recommendations, I find Buy, Hold and Underperform Recommendations. Most of the recommendations are a Hold and the consensus recommendation would be a Hold. The 12 month stock price is $59.88. This implies a total return of 6.52% with 1.65% from capital gains and 4.87% from Dividends based on a current stock price of $59.91.
There is an article by Emily Jackson in the Financial Post about BCE spending $854M on fiber-to-the-home broadband connections in its home base of Montreal. In another article by Emily Jackson in the Financial Post, she talks about BCE's CEO Cope's compensation reduced by 7% in 2016. Demetris Afxentiou of Motley Fool thinks that BCE remains a buy and forget superstar. See what analysts are saying about this stock on Stock Chase. They mainly like this stock.
BCE is Canada's largest communications company, providing the most comprehensive and innovative suite of communication services to residential and business customers in Canada. Operating under the Bell and Bell Aliant brands, the Company's services include Bell Home phone local and long distance services, Bell Mobility, Virgin Mobile and Solo Mobile wireless, high-speed Bell Internet, Bell TV direct-to-home satellite and VDSL television, IP-broadband services and information and communications technology (ICT) services. Its web site is here BCE Inc.
The last stock I wrote about was about was Melcor Developments Inc. (TSX-MRD, OTC-MODVF)... learn more . The next stock I will write about will be Sun Life Financial Inc. (TSX-SLF, NYSE-SLF)... learn more on Wednesday, March 29, 2017 around 5 pm. Tomorrow on my other blog I will write about Sectors I Invest In... learn more on Tuesday, March 28, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
Friday, March 24, 2017
Melcor Developments Inc.
Sound bite for Twitter and StockTwits is: Buy for Diversification. This is a small cap real estate stock and is on the risky side. Most of the stock price testing says that the stock price is relatively cheap to reasonable. See my spreadsheet on Melcor Developments Inc.
I own this stock of Melcor Developments Inc. (TSX-MRD, OTC-MODVF). This was one of the stocks on Mike Higgs' list of good dividend growth stocks. So I looked into it and bought it. I bought this stock first in 2008 and then some more in 2009. It is a little followed real estate company from Western Canada.
How have I done? I have this stock for around 9 years. My total return is 8.32% per year with 4.13% from dividends and 4.19% from capital gains. Considering it is from Alberta, I probably have not badly on this stock. I have hopes for the future.
The dividend yield is moderate. The historical median dividend yield is 2.76%, the 5 year median dividend yield is 3.02% and the 10 year median dividend yield is 2.97%. The dividends have increased over the past 5 and 10 years by 3.7% and 4.8% per year. The problem is that they have decreased their dividends by 20% in 2016. The dividend growth figures include this dividend decrease.
The company has been growing its dividend over the longer term, but it has decreased as well as increased its dividends over the past 27 years I have dividend data. There are 3 years with dividend deceases and 19 years of increases and 4 years when dividends did not change. It could probably be considered to be dividend growth company.
The Dividend Payout Ratio for 2016 was 46%. The DPR for CFPS was 23% (although it was 60% in 2015). If you look at DPR for CFPS excluding the change in working capital, the ratio is 52% (with a 5 year value of 68%). The CFPS excluding change in working capital is probably the one to pay attention to.
A problem with this company is that for the past 6 years the EPS has been higher than the CFPS. This is a concern. Studies have shown that companies with the EPS/CF Ratio below 1.00 outperform companies with EPS/CF Ratio above 1.00. In 2016 this company EPS/CF Ratio was 1.14 and it has a 5 year median of 1.32. This is just a cautionary note.
Debt/Market Cap Ratio is 1.26. This is too high. It means that the company's long term debt is higher than the company's market cap. I get a Liquidity Ratio of 4.96. This is the coverage of current assets by current liabilities. The Debt Ratio is 2.11. This is a good value. Leverage and Debt/Equity Ratios are also good at 1.90 and 0.90.
The 5 year low, median and high median Price/Earnings per Share ratios are 5.40, 6.91 and 8.43. The 10 year ratios are 5.38, 8.10 and 9.33. The historical P/E Ratios are 5.40, 7.16 and 8.40. The current P/E Ratio is 13.86 based on 2017 EPS estimate of $1.15 and a stock price of $15.94. This stock price testing suggests that the stock price is relatively expensive.
I get a Graham Price of $27.78. The 10 year low, median and high median Price/Graham Price Ratios are 0.36, 0.56 and 0.68. The current P/GP Ratio is 0.55 based on a stock price of $15.94. This stock price testing suggests that the stock price is relatively reasonable and around the median.
I get a 10 year Price/Book Value per Share Ratio of 0.73. The current P/B Ratio is 0.53 based on BVPS of $29.83 and a stock price of $15.94. The current P/B Ratio is 27% below the 10 year median ratio and this stock price testing suggests that the stock price is relatively cheap.
I get an historical dividend yield of 2.76. The current dividend yield is 3.01% based on dividends of $0.48 and a stock price of $15.94. The current yield is higher than the historical yield by 9.1%. This stock price testing suggests that the stock price is relatively reasonable and below the median.
There is only one analyst following this stock. The recommendation is a Hold and therefore the consensus would be considered a Hold. The 12 month stock price is $16.00. The total return would be 3.39% with 3.01% from dividends and 0.38% from capital gains based on a current stock price of $15.94.
This company put out a Market Wired item saying the current CEO resigned and that the Board appointed Darin Rayburn as President and CEO effective April 15, 2017. Cole Patterson on Simply Wall Street feels that Melcor Developments has a concerning amount of debt on its balance sheet. The company highlights 2016 annual results on News Wired via Yahoo .
This company is primarily engaged in the acquisition of land for development and sale of residential communities, multi-family sites and commercial sites. It operates western Canada and the US. The company also develops, owns and manages commercial income properties, as well as four golf courses. Melcor owns a well-diversified portfolio of assets in Alberta, Saskatchewan, British Columbia, Arizona and Colorado. Its web site is here Melcor Developments Inc.
The last stock I wrote about was about was AltaGas Ltd (TSX-ALA, OTC-ATGFF)... learn more . The next stock I will write about will be BCE Inc. (TSX-BCE, NYSE-BCE)... learn more on Monday, March 27, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
I own this stock of Melcor Developments Inc. (TSX-MRD, OTC-MODVF). This was one of the stocks on Mike Higgs' list of good dividend growth stocks. So I looked into it and bought it. I bought this stock first in 2008 and then some more in 2009. It is a little followed real estate company from Western Canada.
How have I done? I have this stock for around 9 years. My total return is 8.32% per year with 4.13% from dividends and 4.19% from capital gains. Considering it is from Alberta, I probably have not badly on this stock. I have hopes for the future.
The dividend yield is moderate. The historical median dividend yield is 2.76%, the 5 year median dividend yield is 3.02% and the 10 year median dividend yield is 2.97%. The dividends have increased over the past 5 and 10 years by 3.7% and 4.8% per year. The problem is that they have decreased their dividends by 20% in 2016. The dividend growth figures include this dividend decrease.
The company has been growing its dividend over the longer term, but it has decreased as well as increased its dividends over the past 27 years I have dividend data. There are 3 years with dividend deceases and 19 years of increases and 4 years when dividends did not change. It could probably be considered to be dividend growth company.
The Dividend Payout Ratio for 2016 was 46%. The DPR for CFPS was 23% (although it was 60% in 2015). If you look at DPR for CFPS excluding the change in working capital, the ratio is 52% (with a 5 year value of 68%). The CFPS excluding change in working capital is probably the one to pay attention to.
A problem with this company is that for the past 6 years the EPS has been higher than the CFPS. This is a concern. Studies have shown that companies with the EPS/CF Ratio below 1.00 outperform companies with EPS/CF Ratio above 1.00. In 2016 this company EPS/CF Ratio was 1.14 and it has a 5 year median of 1.32. This is just a cautionary note.
Debt/Market Cap Ratio is 1.26. This is too high. It means that the company's long term debt is higher than the company's market cap. I get a Liquidity Ratio of 4.96. This is the coverage of current assets by current liabilities. The Debt Ratio is 2.11. This is a good value. Leverage and Debt/Equity Ratios are also good at 1.90 and 0.90.
The 5 year low, median and high median Price/Earnings per Share ratios are 5.40, 6.91 and 8.43. The 10 year ratios are 5.38, 8.10 and 9.33. The historical P/E Ratios are 5.40, 7.16 and 8.40. The current P/E Ratio is 13.86 based on 2017 EPS estimate of $1.15 and a stock price of $15.94. This stock price testing suggests that the stock price is relatively expensive.
I get a Graham Price of $27.78. The 10 year low, median and high median Price/Graham Price Ratios are 0.36, 0.56 and 0.68. The current P/GP Ratio is 0.55 based on a stock price of $15.94. This stock price testing suggests that the stock price is relatively reasonable and around the median.
I get a 10 year Price/Book Value per Share Ratio of 0.73. The current P/B Ratio is 0.53 based on BVPS of $29.83 and a stock price of $15.94. The current P/B Ratio is 27% below the 10 year median ratio and this stock price testing suggests that the stock price is relatively cheap.
I get an historical dividend yield of 2.76. The current dividend yield is 3.01% based on dividends of $0.48 and a stock price of $15.94. The current yield is higher than the historical yield by 9.1%. This stock price testing suggests that the stock price is relatively reasonable and below the median.
There is only one analyst following this stock. The recommendation is a Hold and therefore the consensus would be considered a Hold. The 12 month stock price is $16.00. The total return would be 3.39% with 3.01% from dividends and 0.38% from capital gains based on a current stock price of $15.94.
This company put out a Market Wired item saying the current CEO resigned and that the Board appointed Darin Rayburn as President and CEO effective April 15, 2017. Cole Patterson on Simply Wall Street feels that Melcor Developments has a concerning amount of debt on its balance sheet. The company highlights 2016 annual results on News Wired via Yahoo .
This company is primarily engaged in the acquisition of land for development and sale of residential communities, multi-family sites and commercial sites. It operates western Canada and the US. The company also develops, owns and manages commercial income properties, as well as four golf courses. Melcor owns a well-diversified portfolio of assets in Alberta, Saskatchewan, British Columbia, Arizona and Colorado. Its web site is here Melcor Developments Inc.
The last stock I wrote about was about was AltaGas Ltd (TSX-ALA, OTC-ATGFF)... learn more . The next stock I will write about will be BCE Inc. (TSX-BCE, NYSE-BCE)... learn more on Monday, March 27, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
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