Sound bite for Twitter and StockTwits is: Small cap industrial. I will continue to hold on to my shares and probably buy some more when I have more dividend income in my TFSA account. I expect it to do well in the long term, but I also expect volatility in dividends. See my spreadsheet on McCoy Global Inc.
I own this stock of McCoy Global Inc. (TSX-MCB, OTC-MCCRF). This is a small cap stock I bought for TFSA. When I bought it, it was a dividend paying small cap. I decided to try out McCoy. They had just restored their dividend. Because it was rather cheap, I want to use it as a fuller stock in my TFSA account. For me a fuller stock is one that uses up bits of extra money in an account.
This stock suspended its dividend again in 2016. I would suspect from its history, that when they can they will probably restore the dividends. When dividends were paid, they were moderate being in the 2% range generally. I did not invest much in the company, but my loss is at 23% per year. The dividends I have received have covered some 8.7% of the cost of my stock.
Analysts seem to think that the company has hit bottom and that it will start to recover this year. However, the company does service the energy business, so who knows what will happen. The company has been around for a while having been started in 1914 and it went public in 1996, so I do not think that it will disappear.
The debt ratios are good for this company. They do not have much debt and the Total Liabilities/Market Cap Ratio is just 0.18. The Liquidity Ratio has always been good with a 5 year median of 3.81 and a current one of 9.48. The Debt Ratio is 6.93. These ratios are quite high and quite good. Leverage and Debt/Equity Ratios are low and also very good at 1.17 and 0.17 respectively. Good debt ratios help companies survive the bad times.
The 5 year low, median and high median Price/Earnings per Share Ratios are 5.23, 8.43 and 10.18. The 10 year values are 5.63, 8.27 and 10.19. The Historical values are 2.23, 8.48 and 10.92. These are quite low values but rather consistent. Unfortunately, the 2017 EPS estimate is expected to be negative, so there is no testing via P/E Ratios currently.
I get a Graham price of $1.71. The 10 year low, median and high median Price/Graham Price Ratios are 0.44, 0.72 and 0.95. The current P/GP Ratio is 1.12 based on a stock price of $1.91. This would indicate a high current stock price. However, last year the Graham Price was $5.62. However, a P/GP Ratio of 1.12 is not a high ratio.
The 10 year Price/Book Value per Share Ratio is 1.24. The current P/B Ratio is $0.88 based on BVPS of $2.16 and a stock price of $1.91. The current ratio is some 28% lower than the 10 year ratio. This stock price testing suggests that the stock price is relatively cheap. Also a stock is considered cheap when the stock price is below the BVPS. This is probably the best and the only valid stock price test that can be done on this stock at this time.
When I look at analysts' recommendations I find Buy, Strong Buy and Hold recommendations. The consensus recommendation is a Buy. The 12 months stock price consensus is $2.24. This implies a total return of 17.28% with the gain all coming from capital gains.
The CNW Group says on Yahoo Finance that this company will release the first quarterly report for 2017 on May 11, 2017. Don Majors on Sports Perspectives talks about the fact that Zacks Investment Research has forecast that this company will earn $0.04 per share for 2017. This is down from their previous forecast of $0.05 earnings for the 2017. In this Press Release on CNW, the company talks about their acquisition of 3PS Inc.
McCoy provides innovative products and services to the global energy industry. McCoy's two segments, Energy Products & Services and Mobile Solutions, operate internationally through direct sales and distributors with its operations based out of the Western Canadian Sedimentary Basin and the US Gulf Coast. McCoy's corporate office is located in Edmonton, Alberta, Canada with offices in Alberta, British Columbia, Louisiana, and Texas. They are growing internationally. Its web site is here McCoy Global Inc.
The last stock I wrote about was about was Automodular Corp. (TSX-AM.H, OTC-AMZKF)... learn more. The next stock I will write about will be TFI International (TSX -TFII, OTC-TFIFF)... learn more on Wednesday, May 10, 2017 around 5 pm. Tomorrow on my other blog I will write about If I knew then 4... learn more on Tuesday, May 9, 2017 around 5 pm.
Also, on my book blog I have put a review of the book Heroes of Empire by Edward Berenson 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 am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Monday, May 8, 2017
Friday, May 5, 2017
Automodular Corp
First I would like to say that I just replaced my DH Corp (TSX-DH, OTC-DHIFF) stock with TFI International Inc. (TSX -TFII, OTC-TFIFF). DH Corp is being acquired by Vista Equity Partners for $25.50. I sold for $25.42. I see no point in waiting until the bitter end to get rid of a stock being taken over. I will blog about TFI next Wednesday.
I had been doing a spreadsheet on Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF) and I first thought I might replace DH Corp with PZA stock. The spreadsheet is taking longer than I expected. Also I am not thrilled about this stock. The money in DH Corp is serious money in my Trading and Pension Accounts which I need to live off of. I may replace the DH Corp stock in my TFSA account with PZA stocks because this is my fooling around money.
Sound bite for Twitter and StockTwits is: Interesting Small Cap. This company currently has no business, but it is selling below the cash it has and below the book value. See my spreadsheet on Automodular Corp.
I own this stock of Automodular Corp. (TSX-AM.H, OTC-AMZKF). This company currently has no business. They have some GM Litigation going on. They seem to be looking for something to do. In the meantime they have initiated a number of share buyback programs. In April 2017 they again gave notice they will try to buy back shares representing 10% of the current outstanding shares.
This company had no ongoing business since the end of 2014. They are looking for opportunities. The only thing they have done is buy back some outstanding shares. They do not seem to be looking at closing the company. For the litigation they have a half day trial in October 2017 and the 14 day trial starts in February 2018. I doubt if much will happen until after the trial.
I do not have much invested in this firm. I am just holding on to the shares to see how it all turns out. I tend to pay closer attention to companies where I own shares. There does not seem to be any analysts following this stock. This can hardly be surprising.
Note that the current stock price is $2.43 and the cash on hand is $2.60 per share. So it looks like it has more cash on hand than is accounted for in the share price. This is probably the only way to check the current stock price to see if it is reasonable or not.
The company does have book value. The 10 year median Price/Book Value per Share Ratio is 0.89. The current P/B Ratio is 0.94 based on a BVPS of $2.59 and a stock price is $2.43. The current ratio is 5.9% above the 10 year median. This usually suggests that the stock price is reasonable and above the median. However, if the P/B Ratio is below 1.00 this means the company is selling below the theoretical break-up price and is therefore cheap.
This link is to the Market Wired Press Release about the most recent effort to buy back shares.
Automodular Corporation was a sequencer and sub-assembler of components and modules that are installed in cars and trucks made by North American Original Equipment Manufacturers ("OEMs"), at plants in Canada. They are currently looking for something to do. Its web site is here Automodular Corp.
The last stock I wrote about was about was Ag Growth International (TSX-AFN, OTC- AGGZF)... learn more. The next stock I will write about will be McCoy Global Inc. (TSX-MCB, OTC-MCCRF)... learn more on Monday, May 8, 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 am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
I had been doing a spreadsheet on Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF) and I first thought I might replace DH Corp with PZA stock. The spreadsheet is taking longer than I expected. Also I am not thrilled about this stock. The money in DH Corp is serious money in my Trading and Pension Accounts which I need to live off of. I may replace the DH Corp stock in my TFSA account with PZA stocks because this is my fooling around money.
Sound bite for Twitter and StockTwits is: Interesting Small Cap. This company currently has no business, but it is selling below the cash it has and below the book value. See my spreadsheet on Automodular Corp.
I own this stock of Automodular Corp. (TSX-AM.H, OTC-AMZKF). This company currently has no business. They have some GM Litigation going on. They seem to be looking for something to do. In the meantime they have initiated a number of share buyback programs. In April 2017 they again gave notice they will try to buy back shares representing 10% of the current outstanding shares.
This company had no ongoing business since the end of 2014. They are looking for opportunities. The only thing they have done is buy back some outstanding shares. They do not seem to be looking at closing the company. For the litigation they have a half day trial in October 2017 and the 14 day trial starts in February 2018. I doubt if much will happen until after the trial.
I do not have much invested in this firm. I am just holding on to the shares to see how it all turns out. I tend to pay closer attention to companies where I own shares. There does not seem to be any analysts following this stock. This can hardly be surprising.
Note that the current stock price is $2.43 and the cash on hand is $2.60 per share. So it looks like it has more cash on hand than is accounted for in the share price. This is probably the only way to check the current stock price to see if it is reasonable or not.
The company does have book value. The 10 year median Price/Book Value per Share Ratio is 0.89. The current P/B Ratio is 0.94 based on a BVPS of $2.59 and a stock price is $2.43. The current ratio is 5.9% above the 10 year median. This usually suggests that the stock price is reasonable and above the median. However, if the P/B Ratio is below 1.00 this means the company is selling below the theoretical break-up price and is therefore cheap.
This link is to the Market Wired Press Release about the most recent effort to buy back shares.
Automodular Corporation was a sequencer and sub-assembler of components and modules that are installed in cars and trucks made by North American Original Equipment Manufacturers ("OEMs"), at plants in Canada. They are currently looking for something to do. Its web site is here Automodular Corp.
The last stock I wrote about was about was Ag Growth International (TSX-AFN, OTC- AGGZF)... learn more. The next stock I will write about will be McCoy Global Inc. (TSX-MCB, OTC-MCCRF)... learn more on Monday, May 8, 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 am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Wednesday, May 3, 2017
Ag Growth International
Sound bite for Twitter and StockTwits is: Buy for Diversification. They have the revenue, now what they did to do is make a profit from the revenue. In 2016 the comprehensive income was higher than the net income, so this is a good sign. Price testing is all over the place so waiting to see how they do with EPS in the first quarter of 2017 before buying would be a strategy that I would use. See my spreadsheet on Ag Growth International .
I own this stock of Ag Growth International (TSX-AFN, OTC-AGGZF). I wanted to review all the income trust stocks touted in the Money Show of 2009. There was a lot of talk at this show about some of the Unit Trust being currently good buys with very good yields. Its median yield in 2009 was 7.9%. It was on the Canadian Dividend Aristocrats and this is why I first investigated this company.
Some good things have happened since I bought this stock. I have earned a total return of 13.40% per year with 7.06% from capital gains and 6.34% from dividends. Also the dividends paid have paid for 36% of my stocks cost. In the future the dividends will be lower.
The things that I do not like are that earnings have not been very good and dividends have been flat since I bought this stock in 2011. Prior to 2011 dividends were being increased. Analysts do not see any dividends increases for this stock over the next couple of years. They do feel that there will be rising EPS which is a start. However, analysts thought that EPS for 2016 would be $2.46 and it came in at $1.29. It has been a long slow recovery since 2008. This is an industrial stock and volatility should be expected in Earnings.
The shares have been increasing by 3.6% and 2.9% per year over the past 5 and 10 years. To see if the company has growth, you need to look at the per share values. For example, the Revenue growth over the past 5 and 10 years is at 11.7% and 20.65 per year. The Revenue per Share has grown by 7.9% and 17.2% per year over the past 5 and 10 years.
The 5 year low, median and high median Price/Earnings per Share Ratios are 19.20, 25.47 and 30.62. The corresponding 10 year values are 14.42, 21.36 and 26.87. The historical ones are 11.69, 16.43 and 22.90. It would appear that the rising stock price is due to increasing P/E Ratios. The EPS has not done well recently, but it is expected to improve. The current P/E Ratio is 17.06 based on a stock price of $55.43 and 2017 EPS estimate of $3.24. This stock price testing suggests that the stock price is relatively reasonable.
I get a Graham Price of $34.29. The 10 year low, median and high median Price/Graham Price Ratios are 1.14, 1.56 and 1.98. The current P/GP Ratio is 1.62 based on a stock price of $55.43. 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 $2.58. The current P/B Ratio is 3.45 based on a stock price of $55.43 and BVPS of $16.08. The current P/B Ratio is some 34% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
Because this stock used to be an income trust, you cannot use the historical median dividend yield to judge the current stock price. The 5 year median dividend yield is 5.86%. The current dividend yield is 4.33% based on dividends of $2.40 and a stock price of $55.43. The current dividend yield is some 26% above the 5 year median dividend yield. This stock price testing suggests that the stock price is relatively expensive.
I get a P/S Ratio of 1.53. The current P/S Ratio is 1.04 based on a stock price of $55.43 and Revenue estimate for 2017 of $785 or Revenue per Share of $33.11. The current P/S Ratio is some 32% below the 10 year ratio. This stock price testing suggests that the stock price is relatively cheap.
When I look at the analysts' recommendations, I find Buy and Hold recommendations. Most of the recommendations are a Buy and the consensus recommendation is a Buy. The 12 month stock price is $58.88. This implies a total return of 10.55 with 6.225 from capital gains and 4.33% from dividends.
On this Market Wired Press Release the company talks about a new issue of convertible debentures. This site of Davidson Register gives some tech analysis on this stock. The Value Composite score of 53 says that the stock is neither overpriced nor underpriced. Daniel Jordon on Sports Perspectives says that Royal Bank has raised the target price of this stock to $60.00. See what analysts are saying about this stock on Stock Chase . Stephen Takacsy thinks it is good way to play the agricultural sector. This is the reason I bought this stock.
Ag Growth International (AGI) is a leading manufacturer of portable and stationary grain handling, storage and conditioning equipment, including augers, belt conveyors, storage bins, handling accessories and aeration equipment. AGI has manufacturing facilities in Canada, the United States, the United Kingdom and Finland.. Its web site is here Ag Growth International .
The last stock I wrote about was about Thomson Reuters Corp. (TSX-TRI, NYSE-TRI)... learn more. The next stock I will write about will be Automodular Corp. (TSX-AM.H, OTC-AMZKF)... learn more on Friday, May 5, 2017 around 5 pm. Tomorrow on my other blog I will write about Something to Buy May 2017... learn more on Thursday, May 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
I own this stock of Ag Growth International (TSX-AFN, OTC-AGGZF). I wanted to review all the income trust stocks touted in the Money Show of 2009. There was a lot of talk at this show about some of the Unit Trust being currently good buys with very good yields. Its median yield in 2009 was 7.9%. It was on the Canadian Dividend Aristocrats and this is why I first investigated this company.
Some good things have happened since I bought this stock. I have earned a total return of 13.40% per year with 7.06% from capital gains and 6.34% from dividends. Also the dividends paid have paid for 36% of my stocks cost. In the future the dividends will be lower.
The things that I do not like are that earnings have not been very good and dividends have been flat since I bought this stock in 2011. Prior to 2011 dividends were being increased. Analysts do not see any dividends increases for this stock over the next couple of years. They do feel that there will be rising EPS which is a start. However, analysts thought that EPS for 2016 would be $2.46 and it came in at $1.29. It has been a long slow recovery since 2008. This is an industrial stock and volatility should be expected in Earnings.
The shares have been increasing by 3.6% and 2.9% per year over the past 5 and 10 years. To see if the company has growth, you need to look at the per share values. For example, the Revenue growth over the past 5 and 10 years is at 11.7% and 20.65 per year. The Revenue per Share has grown by 7.9% and 17.2% per year over the past 5 and 10 years.
The 5 year low, median and high median Price/Earnings per Share Ratios are 19.20, 25.47 and 30.62. The corresponding 10 year values are 14.42, 21.36 and 26.87. The historical ones are 11.69, 16.43 and 22.90. It would appear that the rising stock price is due to increasing P/E Ratios. The EPS has not done well recently, but it is expected to improve. The current P/E Ratio is 17.06 based on a stock price of $55.43 and 2017 EPS estimate of $3.24. This stock price testing suggests that the stock price is relatively reasonable.
I get a Graham Price of $34.29. The 10 year low, median and high median Price/Graham Price Ratios are 1.14, 1.56 and 1.98. The current P/GP Ratio is 1.62 based on a stock price of $55.43. 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 $2.58. The current P/B Ratio is 3.45 based on a stock price of $55.43 and BVPS of $16.08. The current P/B Ratio is some 34% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
Because this stock used to be an income trust, you cannot use the historical median dividend yield to judge the current stock price. The 5 year median dividend yield is 5.86%. The current dividend yield is 4.33% based on dividends of $2.40 and a stock price of $55.43. The current dividend yield is some 26% above the 5 year median dividend yield. This stock price testing suggests that the stock price is relatively expensive.
I get a P/S Ratio of 1.53. The current P/S Ratio is 1.04 based on a stock price of $55.43 and Revenue estimate for 2017 of $785 or Revenue per Share of $33.11. The current P/S Ratio is some 32% below the 10 year ratio. This stock price testing suggests that the stock price is relatively cheap.
When I look at the analysts' recommendations, I find Buy and Hold recommendations. Most of the recommendations are a Buy and the consensus recommendation is a Buy. The 12 month stock price is $58.88. This implies a total return of 10.55 with 6.225 from capital gains and 4.33% from dividends.
On this Market Wired Press Release the company talks about a new issue of convertible debentures. This site of Davidson Register gives some tech analysis on this stock. The Value Composite score of 53 says that the stock is neither overpriced nor underpriced. Daniel Jordon on Sports Perspectives says that Royal Bank has raised the target price of this stock to $60.00. See what analysts are saying about this stock on Stock Chase . Stephen Takacsy thinks it is good way to play the agricultural sector. This is the reason I bought this stock.
Ag Growth International (AGI) is a leading manufacturer of portable and stationary grain handling, storage and conditioning equipment, including augers, belt conveyors, storage bins, handling accessories and aeration equipment. AGI has manufacturing facilities in Canada, the United States, the United Kingdom and Finland.. Its web site is here Ag Growth International .
The last stock I wrote about was about Thomson Reuters Corp. (TSX-TRI, NYSE-TRI)... learn more. The next stock I will write about will be Automodular Corp. (TSX-AM.H, OTC-AMZKF)... learn more on Friday, May 5, 2017 around 5 pm. Tomorrow on my other blog I will write about Something to Buy May 2017... learn more on Thursday, May 4, 2017 around 5 pm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Monday, May 1, 2017
Thomson Reuters Corp
Sound bite for Twitter and StockTwits is: Buy for Diversification. On my stock price testing the stock price is expensive except for the dividend yield test and there is it reasonable and around the median. I did testing in CDN$, but testing with US$ will produce similar results. I will continue to hold this stock as my need for diversification is the same. After all the reason I do my yearly review of stocks is to decide if a still want to hold a stock. See my spreadsheet on Thomson Reuters Corp.
I own this stock of Thomson Reuters Corp. (TSX-TRI, NYSE-TRI). I bought this stock in 1985 so I have had it for a very long time, almost 30 years. I bought stock to give portfolio some balance as I had too many financial stocks. Performance has always been mediocre.
I have made a total return of 7.86% with 4.64% from capital gains and 3.22% from dividends. I like as a minimum for the long term stocks, over the long term to have a total return of 8%. This stock does not quite make that, but it is not quite awful either. The dividends have paid some 216% of the cost of my stock.
The dividends are paid in US$. They have a moderate dividend yield with low dividend growth in US$. The current dividend yield is 3.12%. The historical median dividend yield is 3.28%. The 5 and 10 year median dividend yields are 3.59% and 3.57%. The dividends growth is at 1.9% and 4.5% in US$.
I have done better in CDN$ terms as far as dividend growth goes. My dividend growth is at 7.1% and 5.6% per year over the past 5 and 10 years. There is some variation in median dividend yields in CDN$ with the historical one at 3.18% and the 5 and 10 year median dividends at 3.43% and 3.47%.
The only place where this stock has good growth over the past 5 and 10 years is in EPS. However, here the company puts forward an Adjusted EPS value. If you look at the growth of the Adjusted EPS over the past 5 and 10 years, it is non-existent, mediocre or low. This is the same with growth in Revenue and Cash Flow. I am looking at this in US$ terms as the company does report in US$.
On a brighter side the Return on Equity (ROE) has been over 10% for 4 out of the past 5 years and it has a 5 year median ROE of 12.2%. However, the ROE on comprehensive income has only been above 10% in 2 of the past 5 years and the 5 year median is just 5.8%. This is in US$ terms.
The outstanding shares have gone up over the past 10 years, but they are down over the past 5 years. They are down by 2.55% over the past 5 years and up by 1.28% over the past 10 years. So if you are looking at growth over the past 5 years, you should be looking at things like Revenue rather than per share values like Revenue per Share. The Revenue over the past 5 years is down by 4.16% and Revenue per Share is down by 1.65%. The real decline in Revenue is the 4.16% value. This is in US$. The company currently reports in US$.
The 5 year low, median and high median Price/Earnings per Share Ratios are 13.61, 15.54 and 17.47. The corresponding 10 year values are 12.64, 15.18 and 17.73. The historical values are 20.02, 22.36 and 24.67. I have not seen a stock with higher historical P/E Ratios very often. The current P/E Ratio is 25.59 based on a stock price of $60.50 and 2017 EPS estimate of $2.36. This is in CDN$. This stock price testing suggests that the stock price is relatively expensive.
I get a Graham Price of $35.26 CDN$. The 10 year low, median and high median Price/Graham Price Ratios are 1.11, 1.29 and 1.49. The current P/GP Ratio is 1.72 based on a stock price of $60.50 CDN$. This stock price testing suggests that the stock price is relatively expensive.
I get a 10 year median Price/Book Value per Share Ratio of 1.69 CDN$. The current P/B Ratio is 2.59 based on BVPS of $23.37 CDN$ and a stock price of $60.50 CDN$. The current ratio is some 53% higher than the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
The current dividend yield is 3.12% based on dividend of $1.89 CDN$ and a stock price of $60.50 CDN$. The historical median dividend yield is 3.18%. This stock price testing suggests that the stock price is relatively reasonable. It is around the median.
When I look at analysts' recommendations, I find Strong Buy, Buy, Hold and Sell. However the vast majority are a Hold and the consensus recommendation is a Hold. The 12 month stock price is $44.22 US$ or $60.40 CDN$. This implies a total return of 2.95% with 3.12% from dividends and a capital loss of 0.17% based on a current stock price of $60.50 CDN$.
James Bradshaw recently published an upbeat article on this company at the Globe and Mail. Brent Sawyer was also upbeat on the first quarter for this company at Sports Perspectives. However, it seems that there are a number of Hold ratings on this stock. See what analysts are saying about this company at Stock Chase. They are positive about the company but do not feel it is a buy at present.
Thomson Reuters Corp is the leading source of intelligent information for businesses and professionals. The company delivers this must-have insight to the financial, legal, tax and accounting, healthcare and science and media markets, powered by the world's most trusted news organization. They derive the majority of their revenues from selling electronic content and services to professionals, primarily on a subscription basis. Its web site is here Thomson Reuters Corp.
The last stock I wrote about was about was WSP Global Inc. (TSX-WSP, OTC- WSPOF)... learn more. The next stock I will write about will be Ag Growth International (TSX-AFN, OTC- AGGZF)... learn more on Wednesday, May 3, 2017 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks May 2017... learn more on Tuesday, May 2, 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 am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
I own this stock of Thomson Reuters Corp. (TSX-TRI, NYSE-TRI). I bought this stock in 1985 so I have had it for a very long time, almost 30 years. I bought stock to give portfolio some balance as I had too many financial stocks. Performance has always been mediocre.
I have made a total return of 7.86% with 4.64% from capital gains and 3.22% from dividends. I like as a minimum for the long term stocks, over the long term to have a total return of 8%. This stock does not quite make that, but it is not quite awful either. The dividends have paid some 216% of the cost of my stock.
The dividends are paid in US$. They have a moderate dividend yield with low dividend growth in US$. The current dividend yield is 3.12%. The historical median dividend yield is 3.28%. The 5 and 10 year median dividend yields are 3.59% and 3.57%. The dividends growth is at 1.9% and 4.5% in US$.
I have done better in CDN$ terms as far as dividend growth goes. My dividend growth is at 7.1% and 5.6% per year over the past 5 and 10 years. There is some variation in median dividend yields in CDN$ with the historical one at 3.18% and the 5 and 10 year median dividends at 3.43% and 3.47%.
The only place where this stock has good growth over the past 5 and 10 years is in EPS. However, here the company puts forward an Adjusted EPS value. If you look at the growth of the Adjusted EPS over the past 5 and 10 years, it is non-existent, mediocre or low. This is the same with growth in Revenue and Cash Flow. I am looking at this in US$ terms as the company does report in US$.
On a brighter side the Return on Equity (ROE) has been over 10% for 4 out of the past 5 years and it has a 5 year median ROE of 12.2%. However, the ROE on comprehensive income has only been above 10% in 2 of the past 5 years and the 5 year median is just 5.8%. This is in US$ terms.
The outstanding shares have gone up over the past 10 years, but they are down over the past 5 years. They are down by 2.55% over the past 5 years and up by 1.28% over the past 10 years. So if you are looking at growth over the past 5 years, you should be looking at things like Revenue rather than per share values like Revenue per Share. The Revenue over the past 5 years is down by 4.16% and Revenue per Share is down by 1.65%. The real decline in Revenue is the 4.16% value. This is in US$. The company currently reports in US$.
The 5 year low, median and high median Price/Earnings per Share Ratios are 13.61, 15.54 and 17.47. The corresponding 10 year values are 12.64, 15.18 and 17.73. The historical values are 20.02, 22.36 and 24.67. I have not seen a stock with higher historical P/E Ratios very often. The current P/E Ratio is 25.59 based on a stock price of $60.50 and 2017 EPS estimate of $2.36. This is in CDN$. This stock price testing suggests that the stock price is relatively expensive.
I get a Graham Price of $35.26 CDN$. The 10 year low, median and high median Price/Graham Price Ratios are 1.11, 1.29 and 1.49. The current P/GP Ratio is 1.72 based on a stock price of $60.50 CDN$. This stock price testing suggests that the stock price is relatively expensive.
I get a 10 year median Price/Book Value per Share Ratio of 1.69 CDN$. The current P/B Ratio is 2.59 based on BVPS of $23.37 CDN$ and a stock price of $60.50 CDN$. The current ratio is some 53% higher than the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
The current dividend yield is 3.12% based on dividend of $1.89 CDN$ and a stock price of $60.50 CDN$. The historical median dividend yield is 3.18%. This stock price testing suggests that the stock price is relatively reasonable. It is around the median.
When I look at analysts' recommendations, I find Strong Buy, Buy, Hold and Sell. However the vast majority are a Hold and the consensus recommendation is a Hold. The 12 month stock price is $44.22 US$ or $60.40 CDN$. This implies a total return of 2.95% with 3.12% from dividends and a capital loss of 0.17% based on a current stock price of $60.50 CDN$.
James Bradshaw recently published an upbeat article on this company at the Globe and Mail. Brent Sawyer was also upbeat on the first quarter for this company at Sports Perspectives. However, it seems that there are a number of Hold ratings on this stock. See what analysts are saying about this company at Stock Chase. They are positive about the company but do not feel it is a buy at present.
Thomson Reuters Corp is the leading source of intelligent information for businesses and professionals. The company delivers this must-have insight to the financial, legal, tax and accounting, healthcare and science and media markets, powered by the world's most trusted news organization. They derive the majority of their revenues from selling electronic content and services to professionals, primarily on a subscription basis. Its web site is here Thomson Reuters Corp.
The last stock I wrote about was about was WSP Global Inc. (TSX-WSP, OTC- WSPOF)... learn more. The next stock I will write about will be Ag Growth International (TSX-AFN, OTC- AGGZF)... learn more on Wednesday, May 3, 2017 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks May 2017... learn more on Tuesday, May 2, 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 am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Friday, April 28, 2017
WSP Global Inc.
Sound bite for Twitter and StockTwits is: Dividend paying Industrial. The stock price would seem to be reasonable. See my spreadsheet on WSP Global Inc.
I own this stock of WSP Global Inc. (TSX-WSP, OTC-WSPOF). In Sept 2011 I rationalized my portfolio. I sold stocks that did not make it into my core and bought stocks that could of the same type. In this case selling Stantec and buying Genivar. In October 2011 I wanted to sell Enerflex because it is not a company I bought but a distribution from Toromont. I bought more Genivar, now called WSP Global.
I have had this stock for 5.5 years. I have made a total return of 19.59% per year with 14.69% from capital gains and 4.90% from dividends. Dividends paid so far have paid for 10.95 of the cost of my stock. On the stock I bought in 2011, I am making a dividend yield of 6.07%.
This stock is currently not a dividend growth stock. It used to be an income trust as Genivar Income Fund (TSX-GNV.UN). Income trust companies can pay out higher dividends than corporations can. So the change of an income trust to a corporation has not been good for dividends. What this company did was to keep the dividends flat. Analysts do not see any dividend increases any time soon. They did increase dividends prior to the government changes for income trust companies.
The Dividend Payout Ratios for EPS has improved greatly. They hit a high of 153% in 2014. The DPR for EPS for 2016 was 76%. The DPR for CFPS has been coming down also and was at 35% in 2016. These ratios are expected to be the same or a bit better in 2017.
Shares have been increasing rapidly. The growth in shares is at 25% per year over the past 5 and 10 years. Each year shares have been increased because of their DRIP plan. However, they have also issued shares because of acquisitions. In this case it is the per share values that you have to look at to determine the company's actual growth. There is a difference. For example Revenue has grown by 56% and 44% per year over the past 5 and 10 years. Revenue per Share has grown at 24% and 15% per year over the past 5 and 10 years.
Revenue has been growing quite nicely, but the EPS has been quite volatile. Because this is an industrial stock you would expect volatility in earnings. Analysts expect that the company will have better earnings in 2017. The 10 year earnings growth is 13%, but earnings over the past 5 years is level.
The debt ratios are fine on this company. However, the Return on Equity has been under 10% since 2012. This has been a very long slow recovery for many companies.
The 5 year low, median and high median Price/Earnings per Share Ratios are 16.51, 20.60 and 24.55. The 10 year corresponding values are 14.51, 17.46 and 22.34. The current P/E Ratio is 20.40 based on a current stock price of $49.77 and 2017 EPS estimate of $2.44. This stock price testing suggests that the stock price is relatively reasonable.
I get a Graham Price of $39.35. The 10 year low, median and high median Price/Graham Price Ratios are 0.84, 1.09 and 1.32. The current P/GP Ratio is 1.26 based on a stock price of $49.77. 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 1.53. The current P/B Ratio is 1.76 based on a BVPS of $28.21 and a stock price of $47.99. This stock price testing suggests that the stock price is relatively reasonable but above the median.
Since this company used to be an income trust it is best to us the 5 year median dividend yield to do the dividend yield test. The 5 year median dividend yield is 4.31%. The current dividend yield is 3.01% based on dividends of $1.50 and a stock price of $47.99. The current dividend yield is 30% above the 5 year median dividend yield. This stock price testing suggests that the stock price is relatively expensive.
I get a 10 year median P/S Ratio of 1.09. The current P/S Ratio is 0.97 based on 2017 Revenue estimates of $5211M and Revenue per Share of $51.41. The current P/S Ratio is some 11% below the 10 year median P/S Ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
When I look at analysts' recommendations, I fine Strong Buy, Buy and Hold Recommendations. Most of the recommendations are a Buy. The consensus recommendation is a Buy. The 12 month stock price is $51.55. This implies a total return of 6.59% with 3.01% from dividends and 3.58% from capital gains based on a current stock price of $49.77.
Renata Jones on Sports Perspectives talks about this company getting an average rating of Buy by 9 brokerages. Ashwin Virk on Simply Wall Street feels that this company is priced at a good values because its PEG Ratio is 1. The PEG ratio is price/earnings to growth ratio. A PEG of 1 means a company is fairly valued. A lower PEG means the company is undervalued and a higher PEG means the company is overvalued. See what analysts are saying about this stock on Stock Chase. They generally like this company.
WSP Global Inc. is an engineering services firm providing private and public-sector clients with a complete range of professional consulting services throughout all project phases, including planning, design, construction and maintenance. WSP now has global coverage. Its web site is here WSP Global Inc.
The last stock I wrote about was about was Power Financial Corp. (TSX-PWF, OTC-POFNF)... learn more. The next stock I will write about will be Thomson Reuters Corp. (TSX-TRI, NYSE-TRI)... learn more on Monday, May 1, 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 am on Instagram with #walktoronto.
I own this stock of WSP Global Inc. (TSX-WSP, OTC-WSPOF). In Sept 2011 I rationalized my portfolio. I sold stocks that did not make it into my core and bought stocks that could of the same type. In this case selling Stantec and buying Genivar. In October 2011 I wanted to sell Enerflex because it is not a company I bought but a distribution from Toromont. I bought more Genivar, now called WSP Global.
I have had this stock for 5.5 years. I have made a total return of 19.59% per year with 14.69% from capital gains and 4.90% from dividends. Dividends paid so far have paid for 10.95 of the cost of my stock. On the stock I bought in 2011, I am making a dividend yield of 6.07%.
This stock is currently not a dividend growth stock. It used to be an income trust as Genivar Income Fund (TSX-GNV.UN). Income trust companies can pay out higher dividends than corporations can. So the change of an income trust to a corporation has not been good for dividends. What this company did was to keep the dividends flat. Analysts do not see any dividend increases any time soon. They did increase dividends prior to the government changes for income trust companies.
The Dividend Payout Ratios for EPS has improved greatly. They hit a high of 153% in 2014. The DPR for EPS for 2016 was 76%. The DPR for CFPS has been coming down also and was at 35% in 2016. These ratios are expected to be the same or a bit better in 2017.
Shares have been increasing rapidly. The growth in shares is at 25% per year over the past 5 and 10 years. Each year shares have been increased because of their DRIP plan. However, they have also issued shares because of acquisitions. In this case it is the per share values that you have to look at to determine the company's actual growth. There is a difference. For example Revenue has grown by 56% and 44% per year over the past 5 and 10 years. Revenue per Share has grown at 24% and 15% per year over the past 5 and 10 years.
Revenue has been growing quite nicely, but the EPS has been quite volatile. Because this is an industrial stock you would expect volatility in earnings. Analysts expect that the company will have better earnings in 2017. The 10 year earnings growth is 13%, but earnings over the past 5 years is level.
The debt ratios are fine on this company. However, the Return on Equity has been under 10% since 2012. This has been a very long slow recovery for many companies.
The 5 year low, median and high median Price/Earnings per Share Ratios are 16.51, 20.60 and 24.55. The 10 year corresponding values are 14.51, 17.46 and 22.34. The current P/E Ratio is 20.40 based on a current stock price of $49.77 and 2017 EPS estimate of $2.44. This stock price testing suggests that the stock price is relatively reasonable.
I get a Graham Price of $39.35. The 10 year low, median and high median Price/Graham Price Ratios are 0.84, 1.09 and 1.32. The current P/GP Ratio is 1.26 based on a stock price of $49.77. 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 1.53. The current P/B Ratio is 1.76 based on a BVPS of $28.21 and a stock price of $47.99. This stock price testing suggests that the stock price is relatively reasonable but above the median.
Since this company used to be an income trust it is best to us the 5 year median dividend yield to do the dividend yield test. The 5 year median dividend yield is 4.31%. The current dividend yield is 3.01% based on dividends of $1.50 and a stock price of $47.99. The current dividend yield is 30% above the 5 year median dividend yield. This stock price testing suggests that the stock price is relatively expensive.
I get a 10 year median P/S Ratio of 1.09. The current P/S Ratio is 0.97 based on 2017 Revenue estimates of $5211M and Revenue per Share of $51.41. The current P/S Ratio is some 11% below the 10 year median P/S Ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
When I look at analysts' recommendations, I fine Strong Buy, Buy and Hold Recommendations. Most of the recommendations are a Buy. The consensus recommendation is a Buy. The 12 month stock price is $51.55. This implies a total return of 6.59% with 3.01% from dividends and 3.58% from capital gains based on a current stock price of $49.77.
Renata Jones on Sports Perspectives talks about this company getting an average rating of Buy by 9 brokerages. Ashwin Virk on Simply Wall Street feels that this company is priced at a good values because its PEG Ratio is 1. The PEG ratio is price/earnings to growth ratio. A PEG of 1 means a company is fairly valued. A lower PEG means the company is undervalued and a higher PEG means the company is overvalued. See what analysts are saying about this stock on Stock Chase. They generally like this company.
WSP Global Inc. is an engineering services firm providing private and public-sector clients with a complete range of professional consulting services throughout all project phases, including planning, design, construction and maintenance. WSP now has global coverage. Its web site is here WSP Global Inc.
The last stock I wrote about was about was Power Financial Corp. (TSX-PWF, OTC-POFNF)... learn more. The next stock I will write about will be Thomson Reuters Corp. (TSX-TRI, NYSE-TRI)... learn more on Monday, May 1, 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 am on Instagram with #walktoronto.
Wednesday, April 26, 2017
Power Financial Corp
Sound bite for Twitter and StockTwits is: Dividend Growth stock. Stock price is relatively cheap to relatively reasonable. However, Life Insurance companies are having a rough time with the current very low interest rates. If you buy Life Insurance companies you need to take this into consideration. See my spreadsheet on Power Financial Corp.
I own this stock of Power Financial Corp. (TSX-PWF, OTC-POFNF). When I sold some bonds in 2001, I had money to spend. This was a stock on my hit list and was selling at a reasonable price. This stock was on Mike Higgs' dividend growth stocks and that is why I started a spreadsheet to investigate this stock in the first place.
This is a life insurance company so I have just done ok with it. I expect to do better long term. I have had this stock for 15 years and have earned 7.91% per year with 3.50% from capital gains and 4.41% from dividends. On the other hand the dividends have paid for 64% of the cost of my stock. I am earning a dividend yield of 8.7% on my original stock price. Life Insurance companies have had a hard time dealing with low interest rates and they are just starting to do better.
This stock used to have moderate dividend yields and good dividend increases. Dividend yields used to be in the 2% range and the increases were generally above 15%. However, there were no increases in dividends between 2010 and 2015. Now dividends are good and the dividend increases are low.
The current dividend yield is 4.81% and the dividend growth over the past 5 and 10 years is at 2% and 4.5%. Why it is so low is because no dividend increases were given between 2010 and 2015. The last dividend increase occurred in 2017 and it was for 5.1%. I do not see the low interest rates changing much or soon. So I see dividend yield and dividend increases changing much or soon either.
The 5 year low, median and high median Price/Earnings per Share Ratios are 10.38, 11.87 and 12.95. The corresponding 10 year values are 10.48, 12.00 and 13.55. The historical ones are 10.25, 12 and 14.78. These are pretty consistent. The current P/E Ratio is 10.52. This stock price testing suggests that the stock price is relatively on the cheap side.
I get a Graham Price of $41.69. The 10 year low, median and high median Price/Graham Price Ratios are 0.82, 0.93 and 1.08. The current P/GP Ratio is 0.82 based on a stock price of $34.29. This stock price testing suggests that the stock price is relatively reasonable and below the median and almost cheap.
The 10 year Price/Book Value per Share Ratio is 1.68. The current P/B Ratio is 1.45 based on a stock price of $34.29 and BVPS of $23.70 based on year end outstanding shares. The current P/B Ratio is some 14% lower than the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
The current dividend yield is 4.81% based on dividends of $1.65 and a stock price of $34.29. The historical median dividend yield is 3.38% a values some 42% lower. This stock price testing suggests that the stock price is relatively cheap. This is because the current dividend yield is more than 20% lower than the historical median dividend yield. However the current dividend yield is not up to the historical high which is 6.05%.
When I look at analysts' recommendations, I find Buy and Hold recommendations. Most of the recommendations are a Hold and the consensus recommendation would be a Hold. The 12 months stock price consensus is $37.43. This implies a total return of $13.97% with 4.81% from dividends and 9.16% from capital gains.
Doug Wharley on The Cerbat Gem talks about Scotiabank confirming their target price of $38.00 for this stock. Lauren Steadman on Transcript Daily says that Royal Bank Analysts have cut their target price from $36.00 to $35.00. Will Ashworth at Motley Fool talks about Power Financial investing in Wealthsimple and how this was a great idea. See what analysts are saying about this company on Stock Chase.
This company is a holding and management company. Its operations provide a range of individual and corporate financial and fiduciary services in North America and Europe. It holds interest in the following companies: Great-West Lifeco, Great-West Life, London Life, Canada Life, Great-West Life & Annuity, Putnam Investments, IGM Financial, Investors Group Mackenzie Financial, and Pargesa Group. Its web site is here Power Financial Corp.
The last stock I wrote about was about was Fortis Inc. (TSX-FTS, OTC-FRTSF)... learn more . The next stock I will write about will be WSP Global Inc. (TSX-WSP, OTC- WSPOF)... learn more on Friday, April 28, 2017 around 5 pm. Tomorrow on my other blog I will write about The Other Side blog... learn more on Thursday, April 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 Power Financial Corp. (TSX-PWF, OTC-POFNF). When I sold some bonds in 2001, I had money to spend. This was a stock on my hit list and was selling at a reasonable price. This stock was on Mike Higgs' dividend growth stocks and that is why I started a spreadsheet to investigate this stock in the first place.
This is a life insurance company so I have just done ok with it. I expect to do better long term. I have had this stock for 15 years and have earned 7.91% per year with 3.50% from capital gains and 4.41% from dividends. On the other hand the dividends have paid for 64% of the cost of my stock. I am earning a dividend yield of 8.7% on my original stock price. Life Insurance companies have had a hard time dealing with low interest rates and they are just starting to do better.
This stock used to have moderate dividend yields and good dividend increases. Dividend yields used to be in the 2% range and the increases were generally above 15%. However, there were no increases in dividends between 2010 and 2015. Now dividends are good and the dividend increases are low.
The current dividend yield is 4.81% and the dividend growth over the past 5 and 10 years is at 2% and 4.5%. Why it is so low is because no dividend increases were given between 2010 and 2015. The last dividend increase occurred in 2017 and it was for 5.1%. I do not see the low interest rates changing much or soon. So I see dividend yield and dividend increases changing much or soon either.
The 5 year low, median and high median Price/Earnings per Share Ratios are 10.38, 11.87 and 12.95. The corresponding 10 year values are 10.48, 12.00 and 13.55. The historical ones are 10.25, 12 and 14.78. These are pretty consistent. The current P/E Ratio is 10.52. This stock price testing suggests that the stock price is relatively on the cheap side.
I get a Graham Price of $41.69. The 10 year low, median and high median Price/Graham Price Ratios are 0.82, 0.93 and 1.08. The current P/GP Ratio is 0.82 based on a stock price of $34.29. This stock price testing suggests that the stock price is relatively reasonable and below the median and almost cheap.
The 10 year Price/Book Value per Share Ratio is 1.68. The current P/B Ratio is 1.45 based on a stock price of $34.29 and BVPS of $23.70 based on year end outstanding shares. The current P/B Ratio is some 14% lower than the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
The current dividend yield is 4.81% based on dividends of $1.65 and a stock price of $34.29. The historical median dividend yield is 3.38% a values some 42% lower. This stock price testing suggests that the stock price is relatively cheap. This is because the current dividend yield is more than 20% lower than the historical median dividend yield. However the current dividend yield is not up to the historical high which is 6.05%.
When I look at analysts' recommendations, I find Buy and Hold recommendations. Most of the recommendations are a Hold and the consensus recommendation would be a Hold. The 12 months stock price consensus is $37.43. This implies a total return of $13.97% with 4.81% from dividends and 9.16% from capital gains.
Doug Wharley on The Cerbat Gem talks about Scotiabank confirming their target price of $38.00 for this stock. Lauren Steadman on Transcript Daily says that Royal Bank Analysts have cut their target price from $36.00 to $35.00. Will Ashworth at Motley Fool talks about Power Financial investing in Wealthsimple and how this was a great idea. See what analysts are saying about this company on Stock Chase.
This company is a holding and management company. Its operations provide a range of individual and corporate financial and fiduciary services in North America and Europe. It holds interest in the following companies: Great-West Lifeco, Great-West Life, London Life, Canada Life, Great-West Life & Annuity, Putnam Investments, IGM Financial, Investors Group Mackenzie Financial, and Pargesa Group. Its web site is here Power Financial Corp.
The last stock I wrote about was about was Fortis Inc. (TSX-FTS, OTC-FRTSF)... learn more . The next stock I will write about will be WSP Global Inc. (TSX-WSP, OTC- WSPOF)... learn more on Friday, April 28, 2017 around 5 pm. Tomorrow on my other blog I will write about The Other Side blog... learn more on Thursday, April 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.
Monday, April 24, 2017
Fortis Inc.
Sound bite for Twitter and StockTwits is: Dividend growth utility. This stock has done well for me over the longer term. Its heavy debt load gives it some vulnerability especially during any bad time. Price seems to be reasonable at the current time. See my spreadsheet on Fortis Inc.
I own this stock of Fortis Inc. (TSX-FTS, OTC-FRTSF). I bought this stock as Newfoundland Light and Power Co. Ltd. Class A shares in 1987. I bought more in 1995 and 1998. In 2005 I sold some Fortis from my RRSP account as I needed to get $20,000 in this account and I was concerned about the debt liquidity of this stock. However, this stock continues to be one of my big stock holdings.
What I noticed when doing the spreadsheet was the increase in shares of 42% for 2016. Most of this was a public offering to purchase ITC Holdings Corp. Fortis debt has also increased dramatically by some 88%. The Debt/Market Cap Ratio is now over 1.00 at 1.27. Their debt ratios have never been great and they are very low at present.
The current Liquidity Ratio is just 0.55. That means that the current assets cannot cover their currently liabilities. Even adding in cash flow after dividends this ratio just becomes 0.87. You can add in the current portion of the debt and still the ratio is just 0.93. This leaves the company vulnerable, especially if there are any problems. On the other hand, most analysts think that it will do just fine.
I have had this stock for some 29 years. I have made a return of 13.02% per year from it. Of my return 8.06% is from capital gains and 4.96% is from dividends. I first bought this stock in1987 and then more in 1995 and 1995. I sold some in 2005. It is some 4.8% of my portfolio.
The 5 year low, median and high median Price/Earnings per Share are 19.15, 20.09 and 20.76. The 10 year values are 16.97, 18.61 and 20.50. The historical values are 13.49, 15.68 and 17.79. It would appear that some of the recent run up in price is due to increasing P/E Ratios. I think that the recent values are rather high for a utility stock. The current P/E Ratio is 17.91. This is based on a stock price of $44.23 and 2017 EPS estimate of 2.47. This stock price testing suggests that the current stock price is relatively reasonable. This is my least favourite method to determine how good a stock price is.
I get a Graham Price of $42.38. The 10 year low, median and high median Price/Graham Price Ratios are 0.99, 1.12 and 1.22. The current P/GP Ratio is 1.04 based on a stock price of $44.23. This stock price testing suggests that the current stock price is relatively reasonable and below the median.
The 10 year Price/Book Value per Share Ratio is 1.43. The current P/B Ratio is 1.37 based on BVPS of $32.31 and a stock price of $44.23. The current P/B Ratio is some 4% lower than the 10 year ratio. This stock price testing suggests that the current stock price is relatively reasonable and below the median.
I get an historical median dividend yield of 3.60%. The current dividend yield is 3.62% based on dividends of $1.60 and a current stock price of $44.23. The current dividend yield is just below the historical dividend yield. This stock price testing suggests that the current stock price is relatively reasonable and below the median.
When I look at analysts’ recommendations, I find Strong Buy, Buy and Hold recommendations. Most are Buy recommendations and the consensus is a Buy recommendation. The 12 month stock price consensus is $48.83. This implies a total return of 14.025 with 10.40% from capital gains and 3.62% from dividends.
Yadullah Hussain on Financial Post talks about what the purchase of ITC Holdings Corp means for Fortis. Doug Wharley on The Cerbat Gem talks about Scotiabank raised their target price from $48 to $49 for this stock. See what analysts are saying about this stock on Stock Chase
Fortis Inc.is a diversified infrastructure holding company, primarily comprising gas distribution and electric utilities in Canada, the U.S., Turks and Caicos, and the Cayman Islands. Fortis also has interests in electricity generation ventures in Canada and the U.S. Its web site is here Fortis Inc.
The last stock I wrote about was about was SNC-Lavalin Group Inc. (TSX-SNC, OTC-SNCAF)... learn more . The next stock I will write about will be Power Financial Corp. (TSX-PWF, OTC-POFNF)... learn more on Wednesday, April 26, 2017 around 5 pm. Tomorrow on my other blog I will write about the current Pension Crisis... learn more on Tuesday, April 25, 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 Fortis Inc. (TSX-FTS, OTC-FRTSF). I bought this stock as Newfoundland Light and Power Co. Ltd. Class A shares in 1987. I bought more in 1995 and 1998. In 2005 I sold some Fortis from my RRSP account as I needed to get $20,000 in this account and I was concerned about the debt liquidity of this stock. However, this stock continues to be one of my big stock holdings.
What I noticed when doing the spreadsheet was the increase in shares of 42% for 2016. Most of this was a public offering to purchase ITC Holdings Corp. Fortis debt has also increased dramatically by some 88%. The Debt/Market Cap Ratio is now over 1.00 at 1.27. Their debt ratios have never been great and they are very low at present.
The current Liquidity Ratio is just 0.55. That means that the current assets cannot cover their currently liabilities. Even adding in cash flow after dividends this ratio just becomes 0.87. You can add in the current portion of the debt and still the ratio is just 0.93. This leaves the company vulnerable, especially if there are any problems. On the other hand, most analysts think that it will do just fine.
I have had this stock for some 29 years. I have made a return of 13.02% per year from it. Of my return 8.06% is from capital gains and 4.96% is from dividends. I first bought this stock in1987 and then more in 1995 and 1995. I sold some in 2005. It is some 4.8% of my portfolio.
The 5 year low, median and high median Price/Earnings per Share are 19.15, 20.09 and 20.76. The 10 year values are 16.97, 18.61 and 20.50. The historical values are 13.49, 15.68 and 17.79. It would appear that some of the recent run up in price is due to increasing P/E Ratios. I think that the recent values are rather high for a utility stock. The current P/E Ratio is 17.91. This is based on a stock price of $44.23 and 2017 EPS estimate of 2.47. This stock price testing suggests that the current stock price is relatively reasonable. This is my least favourite method to determine how good a stock price is.
I get a Graham Price of $42.38. The 10 year low, median and high median Price/Graham Price Ratios are 0.99, 1.12 and 1.22. The current P/GP Ratio is 1.04 based on a stock price of $44.23. This stock price testing suggests that the current stock price is relatively reasonable and below the median.
The 10 year Price/Book Value per Share Ratio is 1.43. The current P/B Ratio is 1.37 based on BVPS of $32.31 and a stock price of $44.23. The current P/B Ratio is some 4% lower than the 10 year ratio. This stock price testing suggests that the current stock price is relatively reasonable and below the median.
I get an historical median dividend yield of 3.60%. The current dividend yield is 3.62% based on dividends of $1.60 and a current stock price of $44.23. The current dividend yield is just below the historical dividend yield. This stock price testing suggests that the current stock price is relatively reasonable and below the median.
When I look at analysts’ recommendations, I find Strong Buy, Buy and Hold recommendations. Most are Buy recommendations and the consensus is a Buy recommendation. The 12 month stock price consensus is $48.83. This implies a total return of 14.025 with 10.40% from capital gains and 3.62% from dividends.
Yadullah Hussain on Financial Post talks about what the purchase of ITC Holdings Corp means for Fortis. Doug Wharley on The Cerbat Gem talks about Scotiabank raised their target price from $48 to $49 for this stock. See what analysts are saying about this stock on Stock Chase
Fortis Inc.is a diversified infrastructure holding company, primarily comprising gas distribution and electric utilities in Canada, the U.S., Turks and Caicos, and the Cayman Islands. Fortis also has interests in electricity generation ventures in Canada and the U.S. Its web site is here Fortis Inc.
The last stock I wrote about was about was SNC-Lavalin Group Inc. (TSX-SNC, OTC-SNCAF)... learn more . The next stock I will write about will be Power Financial Corp. (TSX-PWF, OTC-POFNF)... learn more on Wednesday, April 26, 2017 around 5 pm. Tomorrow on my other blog I will write about the current Pension Crisis... learn more on Tuesday, April 25, 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 21, 2017
SNC-Lavalin Group Inc.
Sound bite for Twitter and StockTwits is: Cheap for reasons. Generally when a stock is cheap when the rest of the market is not there are reasons for that. Business has been slow and it does have some vulnerabilities. Most analysts seem to see a brighter future for this company. See my spreadsheet on SNC-Lavalin Group Inc.
I own this stock of SNC-Lavalin Group Inc. (TSX-SNC, OTC-SNCAF). This stock was one from Mike Higgs' list of dividend growth stocks. I liked the idea of low dividends and high dividend increases. When you are building up a portfolio, low dividends are good for tax reasons. High dividend increases are attractive for the future. I bought this stock in 1989 and then sold off some in 2008 because it is a higher risk stock and it grew too big in my portfolio.
This stock has done well for me. I have had it for 18 years and my total return is 25.11% per year with 22.51% from capital gains and 2.60% per year from dividends. The dividend payments have covered 169% of the cost of my stock purchase. For this stock I bought 18 years ago, I am making a dividend yield of 32.12% and my dividends have grown by 17% per year. I have done so well because I bought this stock when the stock's market cap was $455M. The current market cap is 8B.
This stock used to have low dividends and good dividend growth. However, the dividend growth has been hovering just over 4% since 2012. Currently the dividends are moderate and the dividend growth is low. The current dividend is rather high for this stock at 2.02% based on dividends of $1.09 and a stock price of $53.97. The 5 and 10 year dividend growth is at 4.36% and 13.24% per year. The last dividend increases was in 2017 and it was for 5%.
Let's face it. This company has had problems recently. EPS peaked in 2010 and the dividend growth slowed in 2011. It was in 2011 when the corruption scandals of this company concerning Libya hit and news on this was in the newspapers from then to 2016. There were also some scandals in Quebec. It all seems to have now simmered down. However, this company is in construction and engineering business and volatility should be expected.
The stock has not performed well lately. The 5 year total return is just 4.28% with 2.50% from capital gains and 1.79% from dividends. The 10 year total return is better but not that great for this stock at 8.08% with 6.27% from capital gains and 1.81% from dividends.
The stock's Liquidity Ratio is not great. The one from 2016 is just 1.06. I prefer this to be closer to 1.50 or higher. Adding in cash flow after dividends does not help in this case as it just lowers the ratio to 1.04. This means that the company could be vulnerable in bad times. In the last two years the EPS/CF Ratio is above 1.00. This means that EPS is lower than CFPS. This is also not a great situation.
I get 5 year low, median and high median Price/Earnings per Share Ratios of 17.16, 22.18 and 27.21. The corresponding 10 year values are 15.35, 20.77 and 26.07. The corresponding historical ones are 14.05, 19.05 and 24.93. The stock price has been going up in part because the P/E Ratios have been going up. The current P/E Ratio is 18.55 based on a stock price of $53.97 and 2017 EPS estimate of $2.91. It would seem that the current P/E Ratios is reasonable and below the median.
I get a Graham Price of $41.07. The 10 year low, median and high median Price/Graham Price Ratios are 1.45, 1.84 and 2.28. The current P/GP Ratio is 1.31 based on a stock price of $53.97. This stock price testing suggests that the stock price is relatively cheap. However, on an absolute basis a P/GP Ratio only shows the stock as cheap if the P/GP Ratio is 1.00 or lower. On the other hand a ratio of 1.31 is not a high ratio.
I get a 10 year Price/Book Value per Share Ratio of 3.72. The current P/B Ratio is 2.10 based on a stock price of $53.97 and BVPS of $25.76. This stock price testing suggests that the stock price is relatively cheap.
I get an historical median dividend yield of 1.46%. The current dividend yield is 2.02% based on dividends of $1.09 and a stock price of $53.97. The current dividend yield is some 39% higher than the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.
When I look at analysts' recommendations I find Strong Buy, Buy and Hold recommendations with most being a Buy. The consensus recommendation would be a Buy. The 12 month stock price consensus is $63.13. This implies a total return of 19% with 16.97% from capital gains and 2.02% from dividends based a current price of $53.97.
Jesse Snyder on Financial Post talks about SNC's acquisition of WS Atkins PLC. Karen Thomas of Motley Fool says that SNC is not cheap and has corruption charges still hanging over its head. BVN Staff writes looks at some technical in the BVN Journal. They basically say that SNC is neither oversold nor over brought. See what analysts are saying about this stock on Stock Chase. They rather like SNC going forward.
SNC-Lavalin are involved with engineering and construction work around the world, this includes infrastructure and Buildings; infrastructure and construction; power (nuclear, thermal, hydro etc); chemicals and petroleum; environmental projects; mining and metallurgy projects. They have offices and Canada and around the world, from Algeria to Vietnam, including Australia, Europe, Russia, Africa, Middle East, Asia, South America, USA.. Its web site is here SNC-Lavalin Group Inc.
The last stock I wrote about was about was Veresen Inc. (TSX-VSN, OTC-FCGYF)... learn more . The next stock I will write about will be Fortis Inc. (TSX-FTS, OTC-FRTSF)... learn more on Monday, April 24, 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 SNC-Lavalin Group Inc. (TSX-SNC, OTC-SNCAF). This stock was one from Mike Higgs' list of dividend growth stocks. I liked the idea of low dividends and high dividend increases. When you are building up a portfolio, low dividends are good for tax reasons. High dividend increases are attractive for the future. I bought this stock in 1989 and then sold off some in 2008 because it is a higher risk stock and it grew too big in my portfolio.
This stock has done well for me. I have had it for 18 years and my total return is 25.11% per year with 22.51% from capital gains and 2.60% per year from dividends. The dividend payments have covered 169% of the cost of my stock purchase. For this stock I bought 18 years ago, I am making a dividend yield of 32.12% and my dividends have grown by 17% per year. I have done so well because I bought this stock when the stock's market cap was $455M. The current market cap is 8B.
This stock used to have low dividends and good dividend growth. However, the dividend growth has been hovering just over 4% since 2012. Currently the dividends are moderate and the dividend growth is low. The current dividend is rather high for this stock at 2.02% based on dividends of $1.09 and a stock price of $53.97. The 5 and 10 year dividend growth is at 4.36% and 13.24% per year. The last dividend increases was in 2017 and it was for 5%.
Let's face it. This company has had problems recently. EPS peaked in 2010 and the dividend growth slowed in 2011. It was in 2011 when the corruption scandals of this company concerning Libya hit and news on this was in the newspapers from then to 2016. There were also some scandals in Quebec. It all seems to have now simmered down. However, this company is in construction and engineering business and volatility should be expected.
The stock has not performed well lately. The 5 year total return is just 4.28% with 2.50% from capital gains and 1.79% from dividends. The 10 year total return is better but not that great for this stock at 8.08% with 6.27% from capital gains and 1.81% from dividends.
The stock's Liquidity Ratio is not great. The one from 2016 is just 1.06. I prefer this to be closer to 1.50 or higher. Adding in cash flow after dividends does not help in this case as it just lowers the ratio to 1.04. This means that the company could be vulnerable in bad times. In the last two years the EPS/CF Ratio is above 1.00. This means that EPS is lower than CFPS. This is also not a great situation.
I get 5 year low, median and high median Price/Earnings per Share Ratios of 17.16, 22.18 and 27.21. The corresponding 10 year values are 15.35, 20.77 and 26.07. The corresponding historical ones are 14.05, 19.05 and 24.93. The stock price has been going up in part because the P/E Ratios have been going up. The current P/E Ratio is 18.55 based on a stock price of $53.97 and 2017 EPS estimate of $2.91. It would seem that the current P/E Ratios is reasonable and below the median.
I get a Graham Price of $41.07. The 10 year low, median and high median Price/Graham Price Ratios are 1.45, 1.84 and 2.28. The current P/GP Ratio is 1.31 based on a stock price of $53.97. This stock price testing suggests that the stock price is relatively cheap. However, on an absolute basis a P/GP Ratio only shows the stock as cheap if the P/GP Ratio is 1.00 or lower. On the other hand a ratio of 1.31 is not a high ratio.
I get a 10 year Price/Book Value per Share Ratio of 3.72. The current P/B Ratio is 2.10 based on a stock price of $53.97 and BVPS of $25.76. This stock price testing suggests that the stock price is relatively cheap.
I get an historical median dividend yield of 1.46%. The current dividend yield is 2.02% based on dividends of $1.09 and a stock price of $53.97. The current dividend yield is some 39% higher than the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.
When I look at analysts' recommendations I find Strong Buy, Buy and Hold recommendations with most being a Buy. The consensus recommendation would be a Buy. The 12 month stock price consensus is $63.13. This implies a total return of 19% with 16.97% from capital gains and 2.02% from dividends based a current price of $53.97.
Jesse Snyder on Financial Post talks about SNC's acquisition of WS Atkins PLC. Karen Thomas of Motley Fool says that SNC is not cheap and has corruption charges still hanging over its head. BVN Staff writes looks at some technical in the BVN Journal. They basically say that SNC is neither oversold nor over brought. See what analysts are saying about this stock on Stock Chase. They rather like SNC going forward.
SNC-Lavalin are involved with engineering and construction work around the world, this includes infrastructure and Buildings; infrastructure and construction; power (nuclear, thermal, hydro etc); chemicals and petroleum; environmental projects; mining and metallurgy projects. They have offices and Canada and around the world, from Algeria to Vietnam, including Australia, Europe, Russia, Africa, Middle East, Asia, South America, USA.. Its web site is here SNC-Lavalin Group Inc.
The last stock I wrote about was about was Veresen Inc. (TSX-VSN, OTC-FCGYF)... learn more . The next stock I will write about will be Fortis Inc. (TSX-FTS, OTC-FRTSF)... learn more on Monday, April 24, 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 19, 2017
Veresen Inc.
Sound bite for Twitter and StockTwits is: Buy for good yield. This stock is not cheap, but it still have a very good yield of 6.54%. The dividend seems to be safe. See my spreadsheet on Veresen Inc.
I own this stock of Veresen Inc. (TSX-VSN, OTC-FCGYF). I bought this stock in 2008 as Fort Chicago Energy Partnership. At that time it was a publicly traded limited partnership with increasing and high dividends. In 2010 the company changed to a corporation.
What has happened to the dividends is that they have stayed level since 2008. They cannot afford the dividends according to the Dividend Payout Ratios for EPS or Adjusted EPS. The EPS is negative for 2016 so this will not cover the dividend. The DPR for Adjusted EPS is 526%. Analysts expect both the DPR for EPS or for Adjusted EPS to be closer to 100% by 2019.
Analysts are still looking at the Distributable Cash to calculated DPR. In 2016 the DPR for DC is 87%. The 5 year median is 90%. Analysts expect the DPR for DC to be around 91% in 2017. The company says that they can and are funding the dividends from their Take-or-Pay/ Fixed fee structure. So they see no problem funding the dividends. No word on any increase though.
I have done very well with this stock as I bought it cheap in 2008 and 2009. My ACB is just $7.08. My total return is 21.37% per year with 9.38% from capital gains and 11.99% from dividends. The return on this stock has been mostly in dividends. To date, the dividends I have received have paid for 115% of the cost of my stock over the 8 years I have owned this stock. I would image that the heavy return in dividends compared to capital gains will continue.
The 5 year low, median and high median Price/Earnings per Share Ratios are 42.93, 65.26 and 78.10. The 10 year values are not better at 30.51, 35.86 and 41.20. These are due to the low recent EPS. The historical values are 17.36, 20.83 and 24.72. These are more in line with a utility stock, but still rather high. The current P/E Ratio is 36.40 based on a stock price of $15.29 and EPS estimate for 2017 of $0.42. One has to wonder how good the P/E Ratio is for testing stock price for this stock.
The Price/Distributable Cash Ratio might be better. The 5 year low median and high median P/DC Ratios are 10.17, 12.40 and 14.33. The corresponding 10 year values are 7.85, 10.23 and 12.18. The current P/DC Ratio is 14.70 based on a stock price of $15.29 and 2017 Distributable Cash estimate of $1.04. This stock price testing suggests that the stock price is relatively expensive.
I get a Graham Price of $13.09. The 10 year low, median and high median Price/Graham Price Ratios are 0.86, 1.02 and 1.24. The current P/GP Ratio is 1.17 based on a stock price of $15.29. 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 2.00. The current P/B Ratio is 2.09 a values some 4.4% higher than the 10 year median P/B Ratio. The P/B Ratio is based on BVPS of $7.32 and a stock price of $15.29. This stock price testing suggests that the stock price is relatively reasonable but above the median.
The dividend yield test is not especially a good one for old Income Trust stocks. Part of the reason is that the dividend yields probably would never reach the height they reached with the stock was an income trust. Another word of caution for this stock is that the dividends have been flat. This is a better test for increasing dividend stocks. However, you should be able to use the 5 year median dividend yield. In this case the 5 year median dividend yield is 7.40% (which really is not that far off the historical median dividend yield of 7.95%). The current dividend yield of 6.54% is based on dividends of $1.00 and a stock price of $15.29. The current dividend is some 11.6% lower than the 5 year median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.
The 10 year median P/S Ratio is 4.45. The current P/S Ratio is 13.01 based on Revenue estimate of $368.6M for 2017 or $1.18 per share. The current P/S Ratio is some 192% higher than the 10 year median ratio. This stock price testing suggests that the stock is relatively expensive.
When I look at analysts' recommendations, I find Strong Buy, Buy, Hold and Underperform. Most of the recommendations are a Buy and the consensus recommendation would be a Buy. The 12 month stock price consensus is $15.46. This implies a total return of 7.65% with 1.11% from capital gains and 6.54% from dividends.
David Glaser on Sports Perspectives talks about this company getting an average recommendation of Buys. A TCT contributor on Twin City Telegraph does some technical analysis of this stock. It seems to be neither good nor bad. See what analysts think of this stock on Stock Chase. They mostly like it and feel it has a good future.
Veresen is a leading diversified energy infrastructure company that owns and operates energy infrastructure assets across North America. They are engaged in three principal business lines of Pipelines, Midstream and Power (gas-fired and renewable facilities). Its web site is here Veresen Inc.
The last stock I wrote about was about was Canadian Natural Resources (TSX-CNQ, NYSE-CNQ)... learn more . The next stock I will write about will be SNC-Lavalin Group Inc. (TSX-SNC, OTC-SNCAF)... learn more on Friday, April 21, 2017 around 5 pm. Tomorrow on my other blog I will write about Dividend Changes 2... learn more on Thursday, April 20, 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 Veresen Inc. (TSX-VSN, OTC-FCGYF). I bought this stock in 2008 as Fort Chicago Energy Partnership. At that time it was a publicly traded limited partnership with increasing and high dividends. In 2010 the company changed to a corporation.
What has happened to the dividends is that they have stayed level since 2008. They cannot afford the dividends according to the Dividend Payout Ratios for EPS or Adjusted EPS. The EPS is negative for 2016 so this will not cover the dividend. The DPR for Adjusted EPS is 526%. Analysts expect both the DPR for EPS or for Adjusted EPS to be closer to 100% by 2019.
Analysts are still looking at the Distributable Cash to calculated DPR. In 2016 the DPR for DC is 87%. The 5 year median is 90%. Analysts expect the DPR for DC to be around 91% in 2017. The company says that they can and are funding the dividends from their Take-or-Pay/ Fixed fee structure. So they see no problem funding the dividends. No word on any increase though.
I have done very well with this stock as I bought it cheap in 2008 and 2009. My ACB is just $7.08. My total return is 21.37% per year with 9.38% from capital gains and 11.99% from dividends. The return on this stock has been mostly in dividends. To date, the dividends I have received have paid for 115% of the cost of my stock over the 8 years I have owned this stock. I would image that the heavy return in dividends compared to capital gains will continue.
The 5 year low, median and high median Price/Earnings per Share Ratios are 42.93, 65.26 and 78.10. The 10 year values are not better at 30.51, 35.86 and 41.20. These are due to the low recent EPS. The historical values are 17.36, 20.83 and 24.72. These are more in line with a utility stock, but still rather high. The current P/E Ratio is 36.40 based on a stock price of $15.29 and EPS estimate for 2017 of $0.42. One has to wonder how good the P/E Ratio is for testing stock price for this stock.
The Price/Distributable Cash Ratio might be better. The 5 year low median and high median P/DC Ratios are 10.17, 12.40 and 14.33. The corresponding 10 year values are 7.85, 10.23 and 12.18. The current P/DC Ratio is 14.70 based on a stock price of $15.29 and 2017 Distributable Cash estimate of $1.04. This stock price testing suggests that the stock price is relatively expensive.
I get a Graham Price of $13.09. The 10 year low, median and high median Price/Graham Price Ratios are 0.86, 1.02 and 1.24. The current P/GP Ratio is 1.17 based on a stock price of $15.29. 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 2.00. The current P/B Ratio is 2.09 a values some 4.4% higher than the 10 year median P/B Ratio. The P/B Ratio is based on BVPS of $7.32 and a stock price of $15.29. This stock price testing suggests that the stock price is relatively reasonable but above the median.
The dividend yield test is not especially a good one for old Income Trust stocks. Part of the reason is that the dividend yields probably would never reach the height they reached with the stock was an income trust. Another word of caution for this stock is that the dividends have been flat. This is a better test for increasing dividend stocks. However, you should be able to use the 5 year median dividend yield. In this case the 5 year median dividend yield is 7.40% (which really is not that far off the historical median dividend yield of 7.95%). The current dividend yield of 6.54% is based on dividends of $1.00 and a stock price of $15.29. The current dividend is some 11.6% lower than the 5 year median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.
The 10 year median P/S Ratio is 4.45. The current P/S Ratio is 13.01 based on Revenue estimate of $368.6M for 2017 or $1.18 per share. The current P/S Ratio is some 192% higher than the 10 year median ratio. This stock price testing suggests that the stock is relatively expensive.
When I look at analysts' recommendations, I find Strong Buy, Buy, Hold and Underperform. Most of the recommendations are a Buy and the consensus recommendation would be a Buy. The 12 month stock price consensus is $15.46. This implies a total return of 7.65% with 1.11% from capital gains and 6.54% from dividends.
David Glaser on Sports Perspectives talks about this company getting an average recommendation of Buys. A TCT contributor on Twin City Telegraph does some technical analysis of this stock. It seems to be neither good nor bad. See what analysts think of this stock on Stock Chase. They mostly like it and feel it has a good future.
Veresen is a leading diversified energy infrastructure company that owns and operates energy infrastructure assets across North America. They are engaged in three principal business lines of Pipelines, Midstream and Power (gas-fired and renewable facilities). Its web site is here Veresen Inc.
The last stock I wrote about was about was Canadian Natural Resources (TSX-CNQ, NYSE-CNQ)... learn more . The next stock I will write about will be SNC-Lavalin Group Inc. (TSX-SNC, OTC-SNCAF)... learn more on Friday, April 21, 2017 around 5 pm. Tomorrow on my other blog I will write about Dividend Changes 2... learn more on Thursday, April 20, 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.
Tuesday, April 18, 2017
Canadian Natural Resources
Sound bite for Twitter and StockTwits is: Buy for diversification. Depending on what tests you do the stock is either expensive or cheap. I do prefer the dividend yield test because we are using current values and no estimates. However when all other tests show the stock is expensive, it would be prudent to be cautious. This is especially true because the P/B Ratio testing suggests an expensive price. See my spreadsheet on Canadian Natural Resources.
I own this stock of Canadian Natural Resources (TSX-CNQ, NYSE-CNQ). I started to follow this stock in 2008 because it was on the dividend growth lists that I followed. I first bought CNQ in September 2012 because the dividend yield was relatively high. The 5 and 10 year median dividend yields were 0.73% and 0.75%. The current one was at 1.32%. In April 2013 I bought more shares of this stock because the yield was then at 1.54%.
They have been increasing the dividends faster than the stock price has been going up. So the current dividend yield is higher than when I bought it. The current dividend yield at 2.48% is based on dividends of $1.10 and a stock price of $44.35. For the stock I bought in 2012, I am earning 3.46% on my original purchase price.
The dividend increases are good. The dividends have grown by 21.7% and 20.5% per year over the past 5 and 10 years. Since starting dividends in 2001 they increase the dividends every year expect in 2016. In 2016 they had a second year of EPS loss. Analysts expect improvements in EPS and a positive EPS this year.
The Dividend Payout Ratios for EPS has been low. The 5 year median is just 23%. The DPR for 2017 is expected to be around 72% and for 2018 to be lower still. The last dividend increase was in 2017 and it was for 10%. This is the second increase for 2017 after an earlier one for 8.7%. The dividends received in 2017 are some 16.85% above the ones for 2016.
Recently the price of oil and gas has been down so it is not surprising that this company has not been growing its earnings, revenue or cash flow. In spite of that I have done well with this stock. I have had it for 4.5 years and the total return is 9.89% per year with 7.35% per year from capital gains and 2.54% per year from dividends
One thing I do not like is that the Liquidity Ratio is low at just 0.85. Unfortunately, it is always been low. For a company reflecting the volatility of oil and gas resources I would prefer to see this at a stronger number. My preferred number is 1.50. However, if you add in cash flow after dividend it is 1.33. If you add back in the current portion of the long term debt and cash flow after dividends it is 2.06. A low Liquidity Ratio can make a company vulnerable in bad times. The other debt ratios are fine.
The 5 year low, median and high median Price/Earnings per Share Ratios are 8.90, 11.32 and 13.74. The corresponding 10 year values are 11.46, 14.55 and 16.76. The historical ones are 10.88, 15.34 and 17.23. Because there was two recent years of EPS losses, we should pay more attention to the 10 year and historical P/E Ratios. The current P/E Ratio is 29.77 based on a stock price of $44.35 and 2017 EPS estimate of $1.49. This stock price testing suggests that the stock price is relatively expensive.
I get a Graham Price of $28.15. The 10 year low, median and high median Price/Graham Price Ratios are 0.86, 1.17 and 1.47. The current P/GP Ratio is 1.58 based on a stock price of $44.35. This stock price testing suggests that the stock price is relatively expensive.
I get a 10 year Price/Book Value per Share Ratio of 1.57. The current P/B Ratio is 1.88 a values some 19.6% higher. The current P/B Ratio is based on a stock price of $44.35 and BVPS of $23.64. This stock price testing suggests that the stock price is relatively reasonable but above the median. If the difference had been 20%, it would suggest that the stock price is relatively expensive. So it is close to being relatively expensive by this measure.
The dividend yield test tells a different story. The historical dividend yield is 0.87. The current dividend yield at 2.48% is some 185% above the historical yield. This stock price testing suggests that the stock price is relatively cheap. Note that the 5 and 10 year median yields are higher at 2.16% and 1.05% or the current yield is some 14% and 136% higher than the 5 and 10 year median yields.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. Most of the recommendations are a Buy. The consensus recommendation is a Buy. The 12 month stock price consensus is $51.96. This implies a total return of 19.645 with 2.48% from dividends and 17.16% from capital gains.
Matt Smith of Motley Fool likes this stock. Mary Jones at Baxter Review gives some technical analysis on this stock. She says that the Williams Percent Range is at negative 39.32. A value between 0 and negative 20 says a stock is overbought and between negative 80 and negative 100 is oversold. So she is saying that this stock is neither overbought nor undersold, but is closer to overbought. The Term overbought means that a stock price is high. Heather Davidson on USA Commerce Daily says analysts are recommending this stock. (Note that values given are in US$.) See what analysts are saying about this stock on Stock Chase.
Canadian Natural Resources Ltd. is a senior oil and natural gas exploration, development and production company. The Company's operations are focused in Western Canada, in the U.K. sector of the North Sea and in offshore West Africa. Its web site is here Canadian Natural Resources.
The last stock I wrote about was about was Barclays PLC ADR (LSE-BARC, NYSE:-BCS)... learn more . The next stock I will write about will Veresen Inc. (TSX-VSN, OTC-FCGYF)... learn more on Wednesday, April 19, 2017 around 5 pm. Today on my other blog I will write about TD Bank Problems... learn more 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 Canadian Natural Resources (TSX-CNQ, NYSE-CNQ). I started to follow this stock in 2008 because it was on the dividend growth lists that I followed. I first bought CNQ in September 2012 because the dividend yield was relatively high. The 5 and 10 year median dividend yields were 0.73% and 0.75%. The current one was at 1.32%. In April 2013 I bought more shares of this stock because the yield was then at 1.54%.
They have been increasing the dividends faster than the stock price has been going up. So the current dividend yield is higher than when I bought it. The current dividend yield at 2.48% is based on dividends of $1.10 and a stock price of $44.35. For the stock I bought in 2012, I am earning 3.46% on my original purchase price.
The dividend increases are good. The dividends have grown by 21.7% and 20.5% per year over the past 5 and 10 years. Since starting dividends in 2001 they increase the dividends every year expect in 2016. In 2016 they had a second year of EPS loss. Analysts expect improvements in EPS and a positive EPS this year.
The Dividend Payout Ratios for EPS has been low. The 5 year median is just 23%. The DPR for 2017 is expected to be around 72% and for 2018 to be lower still. The last dividend increase was in 2017 and it was for 10%. This is the second increase for 2017 after an earlier one for 8.7%. The dividends received in 2017 are some 16.85% above the ones for 2016.
Recently the price of oil and gas has been down so it is not surprising that this company has not been growing its earnings, revenue or cash flow. In spite of that I have done well with this stock. I have had it for 4.5 years and the total return is 9.89% per year with 7.35% per year from capital gains and 2.54% per year from dividends
One thing I do not like is that the Liquidity Ratio is low at just 0.85. Unfortunately, it is always been low. For a company reflecting the volatility of oil and gas resources I would prefer to see this at a stronger number. My preferred number is 1.50. However, if you add in cash flow after dividend it is 1.33. If you add back in the current portion of the long term debt and cash flow after dividends it is 2.06. A low Liquidity Ratio can make a company vulnerable in bad times. The other debt ratios are fine.
The 5 year low, median and high median Price/Earnings per Share Ratios are 8.90, 11.32 and 13.74. The corresponding 10 year values are 11.46, 14.55 and 16.76. The historical ones are 10.88, 15.34 and 17.23. Because there was two recent years of EPS losses, we should pay more attention to the 10 year and historical P/E Ratios. The current P/E Ratio is 29.77 based on a stock price of $44.35 and 2017 EPS estimate of $1.49. This stock price testing suggests that the stock price is relatively expensive.
I get a Graham Price of $28.15. The 10 year low, median and high median Price/Graham Price Ratios are 0.86, 1.17 and 1.47. The current P/GP Ratio is 1.58 based on a stock price of $44.35. This stock price testing suggests that the stock price is relatively expensive.
I get a 10 year Price/Book Value per Share Ratio of 1.57. The current P/B Ratio is 1.88 a values some 19.6% higher. The current P/B Ratio is based on a stock price of $44.35 and BVPS of $23.64. This stock price testing suggests that the stock price is relatively reasonable but above the median. If the difference had been 20%, it would suggest that the stock price is relatively expensive. So it is close to being relatively expensive by this measure.
The dividend yield test tells a different story. The historical dividend yield is 0.87. The current dividend yield at 2.48% is some 185% above the historical yield. This stock price testing suggests that the stock price is relatively cheap. Note that the 5 and 10 year median yields are higher at 2.16% and 1.05% or the current yield is some 14% and 136% higher than the 5 and 10 year median yields.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. Most of the recommendations are a Buy. The consensus recommendation is a Buy. The 12 month stock price consensus is $51.96. This implies a total return of 19.645 with 2.48% from dividends and 17.16% from capital gains.
Matt Smith of Motley Fool likes this stock. Mary Jones at Baxter Review gives some technical analysis on this stock. She says that the Williams Percent Range is at negative 39.32. A value between 0 and negative 20 says a stock is overbought and between negative 80 and negative 100 is oversold. So she is saying that this stock is neither overbought nor undersold, but is closer to overbought. The Term overbought means that a stock price is high. Heather Davidson on USA Commerce Daily says analysts are recommending this stock. (Note that values given are in US$.) See what analysts are saying about this stock on Stock Chase.
Canadian Natural Resources Ltd. is a senior oil and natural gas exploration, development and production company. The Company's operations are focused in Western Canada, in the U.K. sector of the North Sea and in offshore West Africa. Its web site is here Canadian Natural Resources.
The last stock I wrote about was about was Barclays PLC ADR (LSE-BARC, NYSE:-BCS)... learn more . The next stock I will write about will Veresen Inc. (TSX-VSN, OTC-FCGYF)... learn more on Wednesday, April 19, 2017 around 5 pm. Today on my other blog I will write about TD Bank Problems... learn more 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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