TC Energy Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Utility. The stock price is cheap to reasonable. I would like to see better Liquidity Ratios, but these ratios have often been a problem for this company. I reviewed the last 20 years. The Dividend Payout Ratios are improving and this is nice to see. Insiders are still selling but with some recent buying under $65. See my spreadsheet on TC Energy Corp.

I own this stock of TC Energy Corp (TSX-TRP, NYSE-TRP). I bought the stock in 2000 at an opportune time. The company had been cutting their dividend payments in order to re-organize and get the company into shape for long term profitability. This company’s stock fell hard because of this. People who depend on dividends for their income can be an unforgiving lot and can get really upset at company when a trusted company cuts its dividends.

When I was updating my spreadsheet, I noticed that I have done well with this stock earning a total return of 11.28% per year with 6.49% from capital gains and 4.79% from dividends. However, over the past 5 years the total return is just 7.88% per year with $3.91% from capital gains and 3.98% from dividends. I also noticed that there is some insider selling over the past year. However, since the stock has been tanking with the market, there has been some buying between $50.00 and $65.00 a share.

The dividend yields are moderate with dividend growth low to moderate. The current dividend yield is in the good range (5% and 6% range) which would come as no surprise as we are currently in a bear market. The current dividend yield is 6.08%. The 5, 10, and historical dividend yields are 4.23%, 4.10% and 4.30%.

Over the last 5 years the dividend increases were at 9.12% per year. This is higher than in the past. See the chart below. However, the last dividends increase for 2020 was lower at 8%.

The Dividend Payout Ratios are fine, but could stand for improvement and are improving. The DPR for EPS for 2019 was 69% with 5 year coverage at 123%. The 5 year coverage is high because of an earnings loss in 2015 and low earnings in 2016. The DPR for CFPS for 2019 was 49% with 5 year coverage at 46%. I prefer the CFPS coverage to be 40% or less. The DPR for Free Cash Flow is not calculable because of negative FCF. Both Wall Street Journal and Morningstar agree that FCF has been negative, but do not agree on the exact figures. Analysts expect the FCF to be positive in 2020 after being negative for the last 3 years.

Debt Ratios have room for improvement. The Long Term Debt/Market Cap Ratio for 2019 is 0.53. Even with the recent decline, it is still good at 0.69. The Debt Ratio is fine at 1.48. The Leverage and Debt/Equity Ratios are fine at 3.06 and 2.06 respectively.

The Liquidity Ratios are not as good as I would like. The one for 2019 is 0.59. Even adding in Cash Flow after dividends and current portion of long term debt and current notes payable, it is just 1.38. When the Liquidity Ratio it is below 1.00, it means that current assets cannot cover current debt. This utility has a lot of debt. The Liquidity Ratios have varied a lot over time, but often have been low. It is best when this ratio is 1.50 or better. The final value has been less than 1.50, 6 times in last 20 years.

The Total Return per year is shown below for years of 5 to 29 to the end of 2019. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2014	5	9.12%	7.88%	3.91%	3.98%
2009	10	6.96%	10.95%	6.69%	4.26%
2004	15	6.40%	9.83%	5.77%	4.06%
1999	20	4.94%	14.51%	8.82%	5.69%
1994	25	4.67%	10.28%	5.74%	4.53%
1990	29	5.13%	9.08%	4.96%	4.12%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 12.34, 13.95 and 16.48. The corresponding 10 year ratios are 17.80, 19.10 and 20.74. The corresponding historical ratios are 12.31, 13.99 and 16.03. The current P/E Ratio is 13.00 based on a stock price of $53.32 and 2020 EPS estimate of $4.10. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $51.29. The 10 year low, median, and high median Price/Graham Price Ratios are 1.23, 1.38 and 1.46. The current P/GP Ratio is 1.04 based on a stock price of $53.32. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median Price/Book Value per Share Ratio of 2.05. The current P/B Ratio is 1.87 based on a stock price of $53.32, Book Value of $26,762M, and Book Value per Share of 28.52. The current P/B Ratio is 9% below the 10 year ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get an historical median dividend yield of 4.30%. The current dividend yield is 6.08% based on dividends of $3.24 and a stock price of $53.32. The current yield is 41% above the historical dividend yield. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median dividend yield of 4.10%. The current dividend yield is 6.08% based on dividends of $3.24 and a stock price of $53.32. The current yield is 48% above the 10 year dividend yield. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 3.71. The current P/S Ratio is 3.53 based on a stock price of $53.32, Revenue estimate for 2020 of $14,191M, Revenue per Share of $15.12 and a stock price of $53.32. The current ratio is 5% below the 10 year ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

Results of stock price testing is that the stock price is cheap to reasonable. You cannot ignore the P/S Ratio test and it is jus showing the price as reasonable. The P/B Ratio test is showing the same. Other good tests, like the dividend yield tests, are showing the stock price as cheap. The value in the dividend yield test is that you are basing this on current values, not values in the past or estimates.

Is it a good company at a reasonable price? I own this stock and feel that it is a good utility to own. The price is cheap to reasonable.

When I look at analysts’ recommendations, I find Strong Buy (7), Buy (8) and Hold (8). The consensus would be a Buy. The 12 month stock price is $72.57. This implies a total return of 42.18% with 36.10% from capital gains and 6.08% from dividends.

See what analysts are saying on Stock Chase. They like this stock and say positive things. Andrew Walker on Motley Fool says the company has a solid dividend paying history. A writer on Simply Wall Street looks at this company’s ROCE. A writer on Simply Wall Street talks about analysts’ projections after the last financials. Anna Zalik on The Conversation talks about this company’s name change.

TC Energy operates as an energy infrastructure company, consisting of pipeline and power generation assets in Canada, the United States, and Mexico. Its web site is here TC Energy Corp.

The last stock I wrote about was about was TransAlta Corp (TSX-TA, NSYE-TAC)) ... learn more. The next stock I will write about will AltaGas Ltd (TSX-ALA, OTC-ATGFF) ... learn more on Monday, March 23, 2020 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.

TransAlta Corp

I just bought 200 shares of TFI International (TSX-TFII, OTC-TFIFF) for my Canadian Trading Account. This is the account I get my money to live on. I am taking things slow and easy.

Sound bite for Twitter and StockTwits is: Dividend Paying Utility. The stock price is probably reasonable. It even maybe cheap. There is currently a lot of insider buying. Shareholders have not done well in this stock for a number of years. Personally, I am not going to buy shares in the company again. See my spreadsheet on TransAlta Corp.

I do not own this stock of TransAlta Corp (TSX-TA, NSYE-TAC), but I used to. I bought this stock in 1987. It was a utility stock and utility stocks were considered to be good investments. I sold some in 2000 as the stock price was below what I had paid for it. I bought some more in February 2009 because it was relatively cheap and it seemed to be recovering. By September 2019, I had finally had enough and saw no hope in this stock doing better. I noticed that MPL Communications had given up hope in stock in 2014 and took it off their Investment Report List.

When I was updating my spreadsheet, I noticed insiders are buying. The Net Insiders Buying (NIB) is 0.25% of outstanding stock and this is a lot. Generally, this is around 0.01%. Buying was by the CEO, CFO, and Chairman. Analysts expect that dividends will begin to rise again with the next 2 years. However, shareholders are not making much in total return with total return for past 5 years at 0.53% per year including a capital loss of 2.48% and dividends at 3.01%.

Analysts seem to feel that this stock will recover. I will do nothing. I have heard such stories before. I replaced this stock with Canadian Utilities. I doubt if I would go back. However, insider have gone from net sellers (2016 to 2018) to net buyers (2019).

The dividend yields are moderate with dividend growth negative. The current dividend yields are moderate (2% to 4% ranges), they have sometimes in the past been good (5% and 6% ranges), but recently they have been low (below 2%). The current dividend yield is moderate at 3%. The 5 year dividend yield is also moderate at 2.41%. The 10 year and historical dividend yields are good at 5.38% and 5.59%. Last year the dividend yield ranged from 1.60% to 2.86%.

Dividends peaked in 2018 and have been traveling south ever since. However, even before 2018 dividends, dividends were also flat a lot of the time. I remember at a Money Show a few years ago that one speaker talked about this company destroying shareholder value for the past 20 years.

The Dividend Payout Ratios are fine, but it would be nice if they earned money consistently to cover dividends. The DPR for EPS for 2019 is 89%. I cannot calculate the 5 year coverage because of lots of years of earnings losses in the past. The DPR for CFPS for 2019 is 6% with 5 year coverage at 12%. This is a low value and therefore a good one. The DPR for Free Cash Flow according the Morningstar values is 10% with 5 year coverage at 22%. Dividend Coverage Ratio for 2019 is 9.58 with 5 year ratio at 4.50. Different sites and the company give different values for FCF.

Debt Ratios are fine especially with recent improvements. The Long Term Debt/Market Cap for 2019 is 1.05 which is too high, but it was higher in the past and is higher now. However, this is stock is down in the current bear market, so the current ratio may not properly reflect the exact position of the company. The Liquidity Ratio is low at 1.20. The Liquidity Ratio has often been low. If you added in cash flow after the dividends the ratio is good at 1.92. The Debt Ratio is good at 1.75. Leverage and Debt/Equity Ratios are fine at 2.34 and 1.34 respectively.

The Total Return per year is shown below for years of 5 to 32 to the end of 2019. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2014	5	-28.05%	0.53%	-2.48%	3.01%
2009	10	-17.97%	-4.70%	-8.87%	4.16%
2004	15	-11.50%	1.80%	-4.34%	6.14%
1999	20	-8.76%	5.56%	-2.09%	7.64%
1994	25	-6.99%	5.86%	-1.77%	7.63%
1989	30	-5.86%	6.31%	-1.42%	7.73%
1987	32	-5.32%	6.32%	-1.36%	7.67%

The 5 year low, median, and high median Price/Earnings per Share Ratios are negative. The corresponding 10 year ratios are 1.87, 3.49 and 4.78. The corresponding historical ratios are 14.90, 16.29 and 21.29. The historical ones are the only ones that make any sense. However, I cannot do a P/E Ratio test as the current P/E Ratio is negative as analysts expect an earnings loss this year.

I get a Graham Price of $5.38. The 10 year low, median, and high median Price/Graham Price Ratios are 1.01, 1.18 and 1.32. The current P/GP Ratio is 1.05 based on a current stock price of $5.67. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year median Price/Book Value per Share Ratio of 1.30. The current P/B Ratio is 0.79 based on a stock price of $5.67, Book Value of $1,985 and Book Value per Share of $7.16. The current ratio is 39% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get an historical median dividend yield of 5.59%. The current dividend yield is 3.00% based on dividends of $0.17 and a stock price of $5.67. The current yield is 46% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year median dividend yield of 5.38%. The current dividend yield is 3.00% based on dividends of $0.17 and a stock price of $5.67. The current yield is 44% below the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively expensive.

The 10 year median Price/Sales (Revenue) Ratio is 1.16. The current P/S Ratio is 0.72 based on 2020 Revenue estimate of $2,194M, Revenue per Share of $7.92 and a stock price of $5.67. The current ratio is 39% below the 10 year ratio. This stock price testing suggests that the stock price is relatively cheap.

Results of stock price testing is that the stock price is? The tests are showing rather a mixed result. This is because the company has had problems in the past. We cannot ignore the P/S Ratio testing because it is revenue that drives all other values in the end. However, a company still needs to make money. The lack of growth in the dividend points to the fact that it has not be able to make money. The price is probably reasonable and below the median and is shown by the Graham Price test.

Is it a good company at a reasonable price? I gave up and this company and I will not be purchasing it again. The price is probably reasonable.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (6) and Hold (3). The consensus would be a Buy. The 12 months stock price consensus is $11.65. This implies a total return of $108.47% with 105.47% from capital gains and 3.00% from dividends. Please remember, no one knows when this bear market will be over.

See what analysts are saying on Stock Chase. A couple mention that Brookfield has been brought into this company. Aditya Raghunath on Motley Fool says it is well on track to repeat its glory days. A writer on Simply Wall Street talks about recent insider buying. A writer on Simply Wall Street says the company’s total return has gone up with revenue. The Canadian Press on CTV News talk about the company’s fourth quarter.

TransAlta is an independent power producer based in Alberta, Canada. The company owns more than 70 power plants in Canada, the Western United States, and Australia. Its web site is here TransAlta Corp.

The last stock I wrote about was about was Enbridge Inc (TSX-ENB, NYSE-ENB) ... learn more. The next stock I will write about will be TC Energy Corp (TSX-TRP, NYSE-TRP) ... learn more on Friday, March 20, 2020 around 5 pm. Tomorrow on my other blog I will write about 230 Years of Interest Rates by Taylor and Kangas.... learn more on Thursday, March 19, 2020 around 5 pm.

Also, on my book blog I have put a review of the book Elmer’s Investment Approach by Ryan Goldsman 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.

Enbridge Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Utility. The price may not be as low as people might think as the P/S Ratio test is showing the stock price above the median. I would like it better if Dividend Payout Ratios and Debt Ratios were improved. See my spreadsheet on Enbridge Inc .

I own this stock of Enbridge Inc (TSX-ENB, NYSE-ENB). I first bought this stock in 2005 and then bought more in 2008 and 2009. This stock was on the Dividend Achievers, the Dividend Aristocrats list and also on Mike Higgs’ list of Canadian Dividend Growth stocks. Enbridge is considered to be a low risk stock.

When I was updating my spreadsheet, I noticed I have done well with this stock. My total return is 12.79% per year with 8.01% per year from capital gains and 4.78% per year from dividends. The 5 year total return is just 1.37% per year with 2.88% per year from capital loss and 4.25% per year from dividends. I also noted that 5 years ago the P/E Ratio was quite high at 43.61.

The dividend yields are moderate with dividend growth mostly moderate. The current dividend yield is good (7% or higher) at 8.45%, but stock prices have been diving. The 5, 10 and historical dividend yields are 4.73%, 3.37% and 3.49%. The dividend growth for the past 5 years has been higher than before at 16.09% per year (good range (15% and higher), but the last dividend increase was for 9.8% for 2020, which is lower also than in the past.

The Dividend Payout Ratios should be improved. DPR for EPS for 2019 was 11% with 5 year coverage at 158%. They give out an Adjusted EPS which has a DPR for 2019 of 111% with 5 year coverage at 102%. They also give out a Distributable Cash Flow and the DPR for 2019 for this is 65% with 5 year coverage at 59%. The DPR for CFPS for 2019 is 76% with 5 year coverage at 52%. The DPR for Free Cash Flow for 2019 is 161% with 5 year coverage at 877%.

Debt Ratios are fine, but the Liquidity could be better. The Long Term Debt/Market Cap Ratio for 2019 is good at 0.57. The Liquidity Ratio for 2019 is 0.55. If you added in cash flow after dividends and add back in the current portion of the long term debt, it is 1.05 a very low value. The Debt Ratio is good at 1.74. The Leverage and Debt/Equity Ratios for 2019 are fine at 2.35 and 1.35.

The Total Return per year is shown below for years of 5 to 29 to the end of 2019. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2014	5	16.09%	1.37%	-2.88%	4.25%
2009	10	14.84%	12.55%	7.82%	4.73%
2004	15	13.24%	12.99%	8.63%	4.36%
1999	20	12.13%	15.13%	10.38%	4.75%
1994	25	10.38%	16.79%	11.29%	5.50%
1989	30	8.89%	11.24%	7.70%	3.54%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 21.36, 25.99 and 30.62. The corresponding 10 year ratios are 23.55, 28.47 and 32.91. The corresponding historical ratios are 17.73, 18.66 and 21.01. The current P/E Ratio is 14.80 based on a stock price of $38.34 and 2020 EPS estimate of $2.56. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $41.27. The 10 year low, median, and high median Price/Graham Price Ratios are 1.51, 1.82 and 2.13. The current P/GP Ratio is 0.93 based on a stock price of $38.34. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median Price/Book Value per Share Ratio of 2.95. The current P/B Ratio is 1.33 based on a Book Value of $58,296M, Book Value per Share of $28.79 and a stock price of $38.34. The current P/B Ratio is 55% below the 10 year ratio. This stock price testing suggests that the stock price is relatively cheap.

I get an historical median dividend yield of 3.49%. The current dividend yield is 8.45% based on dividends of $3.24 and a stock price of $38.34. The current dividend yield is 142% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 years median dividend yield of 3.37%. The current dividend yield is 8.45% based on dividends of $3.24 and a stock price of $38.34. The current dividend yield is 151% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 1.48. The current P/S Ratio is 1.53 based on 2020 Revenue estimate of $50,124M, Revenue per Share of $24.75 and a stock price of $38.34. The current ratio is 4.5% above the 10 year ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

Results of stock price testing is that the stock price could be cheap, but may not be. Most of the testing is showing that the stock price is cheap except for the P/S Ratio. The P/S Ratio testing is showing the stock price as being reasonable, but above the median. I do not think you can disregard the P/S Ratio.

Is it a good company at a reasonable price? I still like this company and I will hold on to the shares I now own. However, even though the price maybe reasonable, it would appear not to be cheap and now may not be the time to buy.

When I look at analysts’ recommendations, I find Strong Buy, (9), Buy (6), Hold (11) and Underperform (1). The consensus would be a Buy. The 12 month stock price is $56.74. This implies a total return of 56.44% with 47.99% from capital gains and 8.45% from dividends.

See what analysts are saying about this stock on Stock Chase. Analyst think it is a buy because a pull back on this stock because of energy prices makes no sense. Daniel Da Costa on Motley Fool thinks this stock is currently a buy. A writer on Simply Wall Street looks at insider selling on this stock. A Writer on Simply Wall Street points out that the company is payout too much of its earnings as dividends. John Flesher on ABC News talks about Enbridge, its Great Lakes tunnel and the court challenge.

Enbridge is an energy generation, distribution, and transportation company in the U.S. and Canada. Its pipeline network consists of the Canadian Mainline system, regional oil sands pipelines, and natural gas pipelines. The company also owns and operates a regulated natural gas utility and Canada's largest natural gas distribution company. Additionally, Enbridge generates renewable and alternative energy with 2,000 megawatts of capacity. Its web site is here Enbridge Inc.

The last stock I wrote about was about was Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF) ... learn more. The next stock I will write about will be TransAlta Corp (TSX-TA, NSYE-TAC)) ... learn more on Wednesday, March 18, 2020 around 5 pm. Tomorrow on my other blog I will write about Canadian Tire and Short Sellers.... learn more on Tuesday, March 17, 2020 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.

Canadian Tire Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. Stock is current relatively cheap. It has not done as well recently as it has longer term. Last dividend increase was lower than it has been in the past 5 years. See my spreadsheet on Canadian Tire Corp.

I own this stock of Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF). In 2000 when I first bought this stock, it was on the Investment Reporter's list of conservative Canadian stocks. I bought stock for my trading account in 2009 because I have done well with it in my Pension Account and it was a consumer stock.

When I was updating my spreadsheet, I noticed I have done well investing in this stock. I have held it for 20 years and my total return is 12.09% per year with 10.09% per year from capital gains and 2.00% from dividends. However, this stock has not done well recently and stock price has gone down the last two years. The 5 year total return is just 4.90% with 2.66% from capital gains and 2.24% from dividends.

The dividend yields are low to moderate with dividend growth good. The current dividend is moderate (2% to 4% ranges). The current dividend is 4.72%. The 5, 10 and historical dividend yields are 1.91%, 1.74% and 1.70%. The dividends in the past were lower. The current dividend growth is good because it is over 15% per year with the last 5 years are 17.22% per year. However, the last increase was lower for 2020 at 9.6%. That puts it into the moderate range.

The Dividend Payout Ratios are fine. The DPR for EPS for 2019 was 33% with 5 year coverage at 29%. The DPR for CFPS for 2019 was 12% with 5 year coverage at 13%. The DPR for Free Cash Flow (using market Watch and WSJ) the ratio is 37% with 5 year coverage at 53%. The Dividend Coverage Ratio for 2019 is 2.68. Both Market Watch and WSJ has much higher FCF than Morningstar. Differing FCF from different sites is a continuing problem with FCF

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio is fine at 0.66. The Liquidity Ratio is good at 1.66. The Debt Ratio is low at 1.39 and I prefer it to be 1.50. The Leverage and Debt/Equity Ratios are a little high at 3.55 and 2.55.

The Total Return per year is shown below for years of 5 to 29 to the end of 2019. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2014	5	17.22%	4.90%	2.66%	2.24%
2009	10	17.32%	11.53%	9.30%	2.22%
2004	15	15.15%	7.93%	6.27%	1.66%
1999	20	12.41%	8.84%	7.27%	1.57%
1994	25	9.81%	11.89%	9.81%	2.08%
1990	29	8.59%	7.68%	6.27%	1.41%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 12.65, 14.27 and 15.67. The corresponding 10 year ratios are 10.85, 12.59 and 14.70. The corresponding historical ratios are 10.45, 13.63 and 15.66. The current P/E Ratio is 6.65 based on a stock price of $96.44 and 2020 EPS estimate of $13.60. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $148.87. The 10 year low, median, and high median Price/Graham Price Ratios are 0.88, 1.00 and 1.11. The current P/GP Ratio is 0.65 based on a stock price of $96.44. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median Price/Book Value per Share Ratio of 1.75. The current P/B Ratio is 1.33 based on a Book Value of $4,456M, Book Value per Share $72.45 and a stock price of $96.44. The current ratio is 24% below the 10 year ratio. This stock price testing suggests that the stock price is relatively cheap.

I get an historical median dividend yield of 1.70%. The current dividend yield is 4.72% based on dividends of $4.55 and a stock price of $96.44. The current yield is 178% above the historical one. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median dividend yield of 1.74%. The current dividend yield is 4.72% based on dividends of $4.55 and a stock price of $96.44. The current yield is 171% above the 10 year one. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 0.64. The current P/S Ratio is 0.39 based on 2020 Revenue estimate of $15,322M, Revenue per Share of $249.06 and a stock price of $96.44. The current ratio is 40% below the 10 year ratio. This stock price testing suggests that the stock price is relatively cheap.

Results of stock price testing is that the stock price is relatively cheap. All the testing points to this. The current stock price has lost 31% since the end of last year. This stock has fall in the bear market.

Is it a good company at a reasonable price? I have done very well with this stock and I plan to hold on to my shares, although I probably will not buy more because of its weighting in my portfolio. Some people have been preaching its demise because of Amazon and online buying, but Amazon and online buying will probably no take over everything. The company is also getting into online buying. The stock is cheap at present.

When I look at analysts’ recommendations, I find Strong Buy (2), Buy (5), Hold (3) and Sell (1). The consensus would be a Buy. The 12 month stock price consensus is $168.36. This implies a total return of 79.29% with 74.57% from capital gains and 4.72% from dividends. (But who knows when this bear market will be over with.)

See what analysts are saying on Stock Chase. Very different opinions on this company, some are positive and some are not. Daniel Da Costa on Motley Fool thinks this stock is extremely attractive after the recent sell off. A writer on Simply Wall Street says earnings are growing faster than stock price. A writer on Simply Wall Street says dividends are not well covered by cash flow, but I did not see that, but there are different ways of calculating Cash Flow. CTC appoints a new CEO says Business News. Reuters via Financial Post says the company beat recent quarterly profits estimates.

Canadian Tire sells home goods, sporting equipment, apparel, footwear, automotive parts and accessories, and vehicle fuel through a 1,700-store network of company, dealer, and franchisee-operated locations across Canada. Aside from the namesake banner, stores operate primarily under the Mark's, SportChek, Atmosphere, and PartSource monikers. The company acquired Helly Hansen, a Norwegian sportswear and workwear brand, in 2018. The firm also operates and holds majority ownership of a financing arm (Canadian Tire Financial Services; 20% owned by Scotiabank) and a REIT (CT REIT; Canadian Tire owns about 70% of the unit). Its web site is here Canadian Tire Corp.

The last stock I wrote about was about was H & R Real Estate Trust (TSX-HR.UN, OTC-HRUFF) ... learn more. The next stock I will write about will be Enbridge Inc (TSX-ENB, NYSE-ENB) ... learn more on Monday, March 16, 2020 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.

H & R Real Estate Trust

Yesterday, I bought some HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF) for my TFSA. I am using the money in the TFSA as my fooling around money.

Sound bite for Twitter and StockTwits is: Dividend Growth REIT. The stock price is relatively cheap. There has been recent buying by directors at under $21.00. DPRs could be improved. Debt Ratio could be improved. See my spreadsheet on H & R Real Estate Trust.

I do not own this stock of H & R Real Estate Trust (TSX-HR.UN, OTC-HRUFF). Before I started blogging, I was following a number of REITs and this is one I had followed. It also used to be on a dividend list I followed.

When I was updating my spreadsheet, I noticed insiders have started to buy the stock recently when it went under $21.00. All the recent buys are by directors. Also, this REIT has not done well in capital gains over the past 5 years. Over the past 5 years the total return was 3.78% with a capital loss of 0.59% and dividends of 6.36%.

The dividend yields are usually good but are getting high currently with the market falling and the dividend growth low. The current dividend yields are in the good range (5% and 6% ranges) to high range (7% and above) with the current at 7.79%. The 5, 10 and historical yields are 6.46%, 6.25% and 6.01%. The growth is low (below 8%). See the chart below.

The Dividend Payout Ratios are currently too high and needs to be improved. The DPR for EPS for 2019 are too high at 122% with coverage at 108%. Because this is a REIT, we need to look at The DPR for Funds from Operations (FFO) for 2019 which are fine at 79% with 5 year coverage also at 74%. The DPR for Adjusted Funds from Operations (AFFO) for 2019 is too high at 106% with 5 year coverage better at 94%. The DPR for CFPS for 2019 is 56% with 5 year coverage at 53%. The DPR for Free Cash Flow for 2019 is 94% with 5 year coverage at 71%. The Dividend Coverage Ratio for 2019 is 1.06 with a 5 year ratio at 1.40.

Debt Ratios are fine, but there is room for improvement. The Long Term Debt/Market Cap ratio is too high at 1.05. This will only get worse in the current bear market. The Liquidity Ratio is good currently at 2.84 but it can vary a lot and is not really important for REITs. The Debt Ratio is good at 1.95. The Leverage and Debt/Equity Ratios are fine at 2.06 and 1.06.

The Total Return per year is shown below for years of 5 to 23 to the end of 2019. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2014	5	0.44%	5.78%	-0.59%	6.36%
2009	10	6.72%	10.06%	3.17%	6.89%
2004	15	0.69%	6.92%	0.70%	6.21%
1999	20	1.12%	12.85%	3.60%	9.25%
1996	23	3.27%	12.18%	3.30%	8.88%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 17.00, 18.09 and 19.18. The corresponding 10 year ratios are 14.33, 15.96 and 18.21. The corresponding historical ratios are 12.16, 13.19 and 17.50. The current P/E Ratio is 9.96 based on a stock price of $17.72 and 2020 EPS estimate of $1.78. This stock price testing suggests that the stock price is relatively cheap.

Because this is a REIT, we need to look at Funds from Operations (FFO). The 5 year low, median, and high median Price/Funds from Operations are 10.91, 11.61 and 12.83. The corresponding 10 year ratios are 11.31, 12.30 and 13.19. The current P/FFO Ratio is 9.96 based on a stock price of $17.72 and 2020 FFO estimate of $1.78. This stock price testing suggests that the stock price is relatively cheap.

The 5 year low, median, and high median Price/Adjusted Funds from Operations are 13.53, 14.63 and 15.53. The corresponding 10 year ratios are 13.51, 14.87 and 16.40. The current P/AFFO Ratio is 10.80 based on a stock price of $17.72 and 2020 FFO estimate of $1.64. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $31.37. The 10 year low, median, and high median Price/Graham Price Ratios are 0.66, 0.71 and 0.76. The current P/GP Ratio is 0.56 based on a stock price of $17.72. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median Price/Book Value per Share Ratio of 0.93. The current P/B Ratio is 0.72 based on a Book Value of $7,044M, Book Value per Share of $24.57, and a stock price of $17.72. The current ratio is some 23% below the 10 year ratio. This stock price testing suggests that the stock price is relatively cheap.

I get an historical median dividend yield of 6.46%. The current dividend yield is 7.79% based on dividends of $1.38 and a stock price of $17.72. The current yield is 21% above the historical median yield. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median dividend yield of 6.01%. The current dividend yield is 7.79% based on dividends of $1.38 and a stock price of $17.72. The current yield is 30% above the 10 year median yield. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 5.37. The current P/S Ratio is 4.00 based on 2020 Revenue estimate of $1,270M, Revenue per Share of $4.43 and a stock price of $17.72. The current ratio is 25% below the 10 year median ratio. I get an historical median dividend yield of 6.46%. The current dividend yield is 7.79% based on dividends of $1.38 and a stock price of $17.72. The current yield is 21% above the historical median yield. This stock price testing suggests that the stock price is relatively cheap.

Results of stock price testing is that the stock price is relatively cheap. All the stock price tests are showing this and there is no problem with any of the tests.

Is it a good company at a reasonable price? This stock will probably do well in the longer term, but at the moment I am worried about the debt level and the coverage of the dividends. It would not be my first choice of a REIT at this time. The stock price is cheap.

When I look at analysts’ recommendations, I find Strong Buy (2), Buy (4) and Hold (2). The consensus would be a Buy. The 12 month stock price is $24.63. This implies a total return of 46.78% with 39.00% from capital gains and 7.79% from dividends.

See what analysts are saying Stock Chase. There are mixed reviews with some analysts liking it and some not. Nelson Smith on Motley Fool thinks that REITs have been unfairly hard hit recently and now is the time to buy this one. A writer on Simply Wall Street says the earnings are shrinking and dividends are flat and you should give this stock a pass for now. A writer on Simply Wall Street feels negatively about debt levels and coverage. Liza Goodheart on The Enterprise Leader talks about recent purchase by a director.

H&R Real Estate Investment Trust is a real estate investment trust principally involved in the ownership of properties in Canada and the U.S. H&R owns and manages a real estate portfolio rather equally divided between property in the Canadian provinces of Ontario and Alberta and in the U.S. Office buildings located primarily in Ontario comprise the majority of H&R's assets, while shopping centers managed by Primaris Management and other retail facilities also make up a considerable share. Its web site is here H & R Real Estate Trust.

The last stock I wrote about was about was Allied Properties Real Estate Investment Trust (TSX-AP.UN, OTC-APYRF) ... learn more. The next stock I will write about will be Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF) ... learn more on Friday, March 13, 2020 around 5 pm. Tomorrow on my other blog I will write about International Investing.... learn more on Thursday, March 12, 2020 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.

Allied Properties Real Estate Investment Trust

Sound bite for Twitter and StockTwits is: Dividend Growth REIT. The stock price is probably relatively expensive. Outstanding shares are increasing rapidly. See my spreadsheet on Allied Properties Real Estate Investment Trust.

I do not own this stock of Allied Properties Real Estate Investment Trust (TSX-AP.UN, OTC-APYRF). Since several stocks that I followed in 2015 were deleted from the stock exchange, I was looking for other stocks to follow. I am sure that I got this from a Canadian Dividend site called Think Dividends, but I cannot find it at present.

When I was updating my spreadsheet, I noticed that the number of shares is increasing fast with growth of 10.4% and 12.2% per year over the past 5 and 10 years. Revenue is up by8% per year over past 5 years, but revenue per share is down by 2.13% per year. Earnings is up by 21% per year over the past 5 year as is AFFO and FFO.

The dividend yields are moderate with dividend growth low. The current dividend yield is moderate (2% to 4% range) at 3.09%. The 5, 10 and historical median dividends are 4.05%, 4.20% and 5.67%. the historical yield is in the good range (5% and 6% ranges) where most REITs are. The dividend growth is low (under 8%.)

The Dividend Payout Ratios are fine. Dividend Payout Ratio for 2019 for EPS is 29% with 5 year coverage at 34%. The DPR for Funds from Operations (FFO) for 2019 is 71% with 5 year coverage also at 71%. The DPR for Adjusted Funds from Operations (AFFO) for 2019 is 83% with 5 year coverage also at 87%. The DPR for CFPS for 2019 is 64% with 5 year coverage at 56%. The DPR for Free Cash Flow for 2019 is 75% with 5 year coverage at 64%. The Dividend Coverage Ratio for 2019 is 1.33 with a 5 year ratio at 1.56.

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio in 2019 is low and good at 0.33. I get a Liquidity Ratio of 1.24 for 2019. This is too low, but Liquidity Ratios are not important for REITs. I get a Debt Ratio of 3.21 for 2019 and this is high and good. The Leverage and Debt/Equity Ratios are low and good at 1.45 and 0.45.

The Total Return per year is shown below for years of 5 to 16 to the end of 2019. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2014	5	2.51%	10.43%	6.82%	3.61%
2009	10	1.92%	15.45%	10.41%	5.04%
2004	15	2.90%	15.23%	9.26%	5.98%
2003	16	4.21%	15.26%	9.14%	6.12%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 7.76, 8.77 and 9.88. The corresponding 10 year ratios are 7.98, 9.01 and 9.98. The corresponding historical ratios are 9.45, 11.03 and 12.60. The current P/E Ratio is 13.63 based on a stock price of $53.42 and 2020 EPS estimate of $3.92. This stock price testing suggests that the stock price is relatively expensive.

The 5 year low, median, and high median Price/FFO are 15.67, 17.75 and 19.83. The corresponding 10 year ratios are 15.24, 16.73 and 18.35. The current P/FFO Ratio is 22.64 based on a stock price of $53.42 and 2020 FFO estimate of $2.36. This stock price testing suggests that the stock price is relatively expensive.

The 5 year low, median, and high median Price/AFFO are 20.99, 23.67 and 25.35. The corresponding 10 year ratios are 17.80, 20.06 and 22.68. The current P/AFFO Ratio is 26.32 based on a stock price of $53.42 and 2020 EPS estimate of $2.03. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $49.72. The 10 year low, median, and high median Price/Graham Price Ratios are 0.81, 0.90 and 0.99. The current P/GP Ratio is 1.07 based on a stock price of $53.42. 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 1.06. The current P/B Ratio is 1.15 based on a stock price of $53.42, Book Value of $5,717M and Book Value per Share of $46.55. The current ratio is 8.5% above the 10 year ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get an historical median dividend yield of 5.67%. The current dividend yield is 3.09% based on the current dividend of $1.65 and a stock price of $53.42. The current yield is 46% below the historical dividend yield. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year median dividend yield of 4.20. The current dividend yield is 3.09% based on the current dividend of $1.65 and a stock price of $53.42. The current yield is 26% below the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively expensive.

The 10 year median Price/Sales (Revenue) Ratio is 7.62. The current P/S Ratio is 11.31 based on 2020 estimate of $380M, Revenue per Share of $4.72 and a stock price of $53.42. The current ratio is 49% above the 10 year ratio. This stock price testing suggests that the stock price is relatively expensive.

Results of stock price testing is that the stock price is probably relatively expensive. Most of the testing is showing the stock price as expensive except for the P/B Ratio. I like the P/S Ratio testing the best, but there are no problems with any of the tests.

Is it a good company at a reasonable price? I think that this is a good REIT, however, it still seems to be relatively expensive at the moment.

When I look at analysts’ recommendations, I find Strong Buy (2), Buy (7) and Hold (3). The consensus would be a Buy. The 12 month stock price is $59.13. this implies a total return of 13.78% based on a stock price of $53.42 with 10.69% from capital gains and 3.09% from dividends. A problem is a recent big drop in this stock’s price and the market as a whole.

See what analysts are saying on Stock Chase. Analysts seem to like this stock, but say its price is reasonable, but not cheap. Adam Othman on Motley Fool says buying this REIT gives you a low risk access to Canadian Real Estate. A writer on Simply Wall Street talks about insider trading. A writer on Simply Wall Street likes this company but thinks it is overvalued. A writer on Small Cap Power talks about 4 Canadian REITs with the lowest debt ratios.

Allied Properties Real Estate Investment Trust is a real estate investment trust engaged in the development, management, and ownership of primarily urban office environments across Canada's major cities. Most of the total square footage in the company's real estate portfolio is located in Toronto and Montreal. Its web site is here Allied Properties Real Estate Investment Trust.

The last stock I wrote about was about was RioCan Real Estate (TSX-REI.UN, OTC-RIOCF) ... learn more. The next stock I will write about will be H & R Real Estate Trust (TSX-HR.UN, OTC-HRUFF) ... learn more on Wednesday, March 11, 2020 around 5 pm. Tomorrow on my other blog I will write about Shopify.... learn more on Tuesday, March 10, 2020 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.

RioCan Real Estate

Note that during the recent market decline, I have lost value in my portfolio but my stock dividend income has done up. This is what happens to my portfolio when the market goes south.

Sound bite for Twitter and StockTwits is: Dividend Growth REIT. The stock price is probably reasonable. It has not been doing well in the short term and dividend growth is low as it is with most REITs. I expect it to do well in the longer term. See my spreadsheet on RioCan Real Estate .

I own this stock of RioCan Real Estate (TSX-REI.UN, OTC-RIOCF). I first bought this stock in 1998 because I wanted to diversify my portfolio into REITs. It was a stock covered and recommended by MPL Communications in their Income Trust coverage. Over the years I have made several more purchases of this REIT.

When I was updating my spreadsheet, I noticed I have done well with this stock overall with a total return of 11.43% per year and 2.57% from capital gains and 8.86% from dividends. However, shareholders over the past 5 years have not done that well with total return at 5.60% and 0.23% from capital gains and 5.35% from dividends.

The dividend yields are good with dividend growth low. The dividend yields are good (5% to 6% range). The current dividend yield is 5.60%. The 5, 10 and historical median dividend yields are 5.57%, 5.47% and 7.10%. The dividend growth is low (under 8% per year). See chart below. I have held this stock for 22 years and my dividend growth over that period is 1.95% per year.

The Dividend Payout Ratios are fine. The DPR for EPS for 2019 is 57.14% with 5 year coverage at 77%. Because this is a REIT, the DPR for Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO) are important. The DPR for FFO for 2019 is 77%, with 5 year coverage at 78%. The DPR for AFFO for 2019 is 99%, with 5 year coverage at 95%.

The DPR for Free Cash Flow for 2019 is 89% with 5 year coverage at 113%. The Dividend Coverage Ratio for 2019 is 1.12 with 5 year ratio at 0.88. I am using the values from a Morningstar Report. The Wall Street Journal disagrees with these values. (I have found this before when different sources disagree on FCF.)

Debt Ratios are good. Long Term Debt/Market Cap Ratio is good at 0.34. The Liquidity Ratio is good at 3.38, but this is not an important one for REITs. The Debt Ratio is very good at 2.21 with 5 year median also at 2.21. The Leverage and Debt/Equity Ratios are also good at 1.83 and 0.83 with 5 year median also good at 1.86 and 0.86.

The Total Return per year is shown below for years of 5 to 25 to the end of 2019. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2014	5	0.42%	5.60%	0.25%	5.35%
2009	10	0.43%	9.32%	3.03%	6.29%
2004	15	1.07%	9.26%	2.71%	6.55%
1999	20	1.64%	15.94%	5.81%	10.13%
1994	25	4.95%	21.27%	7.39%	13.88%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 10.82, 11.60 and 12.39. The corresponding 10 year ratios are 10.55, 11.59 and 12.64. The corresponding historical ratios are 11.64, 12.67 and 13.36. The current P/E Ratio is 14.69 based on a stock price of $25.70 and 2020 EPS estimate of $1.75. This stock price testing suggests that the stock price is relatively expensive.

Since this is a REIT, we need to look at Price/Funds from Operations (FFO) Ratios. The 5 year low, median, and high median P/FFO Ratios are 12.64, 13.80 and 15.08. The corresponding 10 year ratios are 13.35, 14.92 and 16.53. The current P/FFO Ratio is 14.77 based on a stock price of $25.70 and 2020 FFO of $1.74. This stock price testing suggests that the stock price is relatively reasonable and below the median.

Since this is a REIT, we also need to look at Price/Adjusted Funds from Operations (AFFO) Ratios. The 5 year low, median, and high median P/AFFO Ratios are 15.90, 17.14 and 19.03. The corresponding 10 year ratios are 16.05, 17.51 and 19.10. The current P/FFO Ratio is 17.25 based on a stock price of $25.70 and 2020 AFFO of $1.49. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $29.34. The 10 year low, median, and high median Price/Graham Price Ratios are 0.85, 0.92 and 1.04. The current P/GP Ratio is 0.88 based on a stock price of $25.70. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year median Price/Book Value per Share Ratio of 1.26. The current P/B Ratio is 1.00 based on a Book Value of $8,160M, Book Value per Share of $25.69 and a stock price of $25.70. The current P/B Ratio is 21% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get an historical median dividend yield of 7.10%. The current dividend yield is 5.60% based on dividends of $1.44 and a stock price of $25.70. The current dividends are 21% below the historical dividend yields. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year median dividend yield of 5.47%. The current dividend yield is 5.60% based on dividends of $1.44 and a stock price of $25.70. The current dividends are 2.44% above the 10 year median dividend yields. This stock price testing suggests that the stock price is relatively reasonable and below the median.

The 10 year median Price/Sales (Revenue) Ratio is 7.14. The current P/S Ratio is 7.17 based on 2020 Revenue estimate of $1,138M, Revenue per Share of $3.58 and a stock price of $25.70. The current ratio is 0.5% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and at the median.

Results of stock price testing is that the stock price is probably reasonable and at the median. The best test is the P/S Ratio one. However, the P/FFO and P/AFFO are also good tests and show the price reasonable and below the median. I wonder about the P/E Ratio test as analysts have been under estimating the EPS recently. The problem with the dividend yield test is the flatness of the dividends. There is no problems with the P/B Ratio test, The P/GP Ratio test, the P/FFO Ratio test nor the P/AFFO Ratio test.

Is it a good company at a reasonable price? I have had this stock for some 22 year and do not plan to sell. If you hold companies for the long term there are bound to both good and bad times. I expect that the stock will pick up again, although I must admit that it has not done that well in the current short term. I still expect it will do well in the longer term.

When I look at analysts’ recommendations, I find Strong Buy (3), Buy (4) and Hold (2). The consensus would be a Buy. The 12 month stock price consensus is $29.47. This implies a total return of 20.27% with 5.60% from dividends and 14.67% from capital gains based on a current stock price of $25.70.

See what analysts are saying on Stock Chase. There are mixed feelings, but mostly it is liked. Nelson Smith on Motley Fool thinks now is the time to buy this stock. A writer on Simply Wall Street is worried about this company’s debt. A writer on Simply Wall Street says that they will give this dividend stock a miss for right now. Duffie Osental on Mortgage Brokers News talks about this company launching Green Bonds.

RioCan Real Estate Investment Trust is a Canadian real estate investment trust which owns, develops, and operates Canada's portfolio of retail-focused, increasingly mixed-use properties. The REIT's property portfolio includes shopping centers and mixed-use developments, with most of its properties located in Ontario, Canada. Its web site is here RioCan Real Estate.

The last stock I wrote about was about was Home Capital Group (TSX-HCG, OTC-HMCBF) ... learn more. The next stock I will write about will be Allied Properties Real Estate Investment Trust (TSX-AP.UN, OTC-APYRF) ... learn more on Monday, March 9, 2020 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.

Home Capital Group

Sound bite for Twitter and StockTwits is: Specialty Bank Stock. The stock price is relatively cheap. It is a risky stock, but there is the possibility of a very good ready. Analysts expect dividends to resume this year. See my spreadsheet on Home Capital Group.

I own this stock of Home Capital Group (TSX-HCG, OTC-HMCBF). I started reviewing this company in September 2009. It is a dividend growth company and it was coming up on lists of good dividends paying stocks. It is on some dividends paying companies lists that I look at.

When I was updating my spreadsheet, I noticed after the stock price has been going down, it shot up some 128% in 2019. It is down now but so is the market at the present time.

They stopped the dividends in 2017. However, analysts expect them to be restarted soon.

Debt Ratios are fine. The coverage of deposits ratio is 0.75. The deposits are well covered. I did calculate a Liquidity Ratio which is 1.96, but this is not important for financial services companies. The Debt Ratio at 1.10 is fine for a financial services company.

The Total Return per year is shown below for years of 5 to 24 to the end of 2019. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2014	5	0.00%	-6.29%	-7.24%	0.94%
2009	10	0.00%	6.48%	4.65%	1.84%
2004	15	0.00%	6.52%	4.94%	1.58%
1999	20	0.00%	22.85%	18.95%	3.90%
1995	24		40.76%	31.06%	9.71%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 6.32, 9.38 and 11.89. The corresponding 10 year ratios are 7.15, 9.22 and 11.43. The corresponding historical ratios are 7.50, 9.15 and 11.89. The current P/E Ratio is 8.60 based on a stock price of $28.45 and 2020 EPS estimate of $3.31. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $46.73. The 10 year low, median, and high median Price/Graham Price Ratios are 0.66, 0.86 and 1.04. The current P/GP Ratio is 0.61 based on a stock price of $28.45. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median Price/Book Value per Share Ratio of 1.71. The current P/B Ratio is 0.97 based on a Book Value of $1682M, Book Value per Share of $29.33 and a stock price of $28.45. The current ratio is 43% below the 10 year ratio. This stock price testing suggests that the stock price is relatively cheap.

I cannot do any dividend yield testing because they have suspended the dividends.

The 10 year median Price/Sales (Revenue) Ratio is 4.51. The current P/S Ratio is 3.13 based on 2020 Revenue estimate of $522M, Revenue per Share of $9.10 and a stock price of $28.45. The current ratio is 31% below the 10 year ratio. This stock price testing suggests that the stock price is relatively cheap.

Results of stock price testing is that the stock price is probably relatively cheap. All the tests except the P/E Ratio test is showing the stock price as cheap. P/E Ratio of 8.60 is a low one, however, the P/E Ratios have been low on this stock.

Is it a good company at a reasonable price? The stock price is certainly good. I think this company will do well in the future, but this may take time. It is high on risk level. I am not sure yet if I will keep it. The reason is no dividends, and I cannot afford to have a stock in my RRIF account that pays no dividends.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (2), Hold (4) and Sell (1). The consensus would be a Hold. The 12 month stock price consensus is $36.06. This implies a total return of 26.76% all from capital gains.

See what analysts are saying on Stock Chase. Views on this stock is quite mixed. Ambrose O'Callaghan on Motley Fool says our real estate will go into a bull run and this company will profit. A writer on Simply Wall Street talks about this stocks beta and what it means. A writer on Simply Wall Street talks about insider trading. The Canadian Press on Times Colonist talks about the company’s recent results..

Home Capital Group Inc is a specialty finance company that offers residential and commercial mortgage lending, securitization of insured mortgage products, consumer lending, and credit card services. The company also offers deposits via brokers and financial planners, and through its direct-to-consumer deposit brand, Oaken Financial. Its web site is here Home Capital Group.

The last stock I wrote about was about was Bombardier Inc (TSX-BBD.B, OTC-BDRBF) ... learn more. The next stock I will write about will be RioCan Real Estate (TSX-REI.UN, OTC-RIOCF) ... learn more on Friday, March 6, 2020 around 5 pm. Tomorrow on my other blog I will write about Something to Buy March 2020.... learn more on Thursday, March 05, 2020 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.

Bombardier Inc

Sound bite for Twitter and StockTwits is: Failing Industrial. Stock price is probably cheap, but it is very risky. Cannot do most of my stock price tests. Debt Ratios are awful. It has a negative book value and is currently selling off some of its divisions. See my spreadsheet on Bombardier Inc.

I do not own this stock of Bombardier Inc (TSX-BBD.B, OTC-BDRBF), but I used to. The buying of this stock was part of my early foray into industrial stocks in 1987. Up until 2001, I was making some 35% return per annum on this stock. When the stock first dropped in 2002, I had still made some 28% return per annum on this stock. Even by the lowest point in 2005, I had made some 13% per annum on this stock. By that time, it seemed to be turning itself around, so I did not sell. I lost hope by 2017, so I sold. I made 11.08% per year with half from dividends.

When I was updating my spreadsheet, I noticed it is still a bad investment as it has been since it hit a high in 2001. Still has some awful debt ratios and a negative book value.

It has paid dividends in the past, but none since 2014.

Debt Ratios are awful. The Long Term Debt/Market Cap Ratio for 2019 is 2.65. This means that the long term debt is more than twice what the market value of the stock is. This is a really bad ratio. The Liquidity Ratio is 0.88 and with cash flow added in, it is 0.92. The current assets cannot cover current liabilities. The Debt Ratio is 0.81, so the company has a negative book value. Free Cash Flow is negative and has been since 2012.

The Total Return per year is shown below for years of 5 to 33 to the end of 2019 CDN$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2014	5	0.00%	-14.20%	-14.20%	0.00%
2009	10	0.00%	-7.89%	-9.15%	1.26%
2004	15	0.00%	-0.11%	-2.02%	1.91%
1999	20	0.00%	-8.69%	-9.64%	0.95%
1994	25	0.00%	1.26%	-1.53%	2.79%
1989	30	0.00%	7.19%	2.37%	4.82%
1986	33	0.00%	5.18%	1.50%	3.68%

The Total Return per year is shown below for years of 5 to 30 to the end of 2019 US$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2014	5	0.00%	-16.35%	-16.35%	0.00%
2009	10	0.00%	-9.71%	-11.05%	1.34%
2004	15	0.00%	-0.10%	-2.39%	2.29%
1999	20	0.00%	-8.05%	-9.19%	1.14%
1994	25	0.00%	1.72%	-1.25%	2.97%
1989	30	0.00%	6.46%	2.03%	4.44%

The 5 year low, median, and high median Price/Earnings per Share Ratios are all negative. The corresponding 10 year ratios are 3.50, 5.19 and 6.66. The corresponding historical ratios are 10.78, 15.12 and 18.59. The EPS is expected to be negative both this year and next. We cannot do any P/E Ratio testing.

I get a Graham Price of $0. The problem is the book value is negative. I cannot calculate a P/GP Ratio when the book value is negative.

I get a 10 year median Price/Book Value per Share Ratio that is negative. I cannot do this test. I cannot do the dividend yield test as there are currently no dividends.

The 10 year median Price/Sales (Revenue) Ratio is 0.36. The current P/S Ratio is 0.12 based on 2020 Revenue estimate of $15,765M, Revenue per Share of $6.58 and a stock price of $1.60. The current ratio is 66% lower than the 10 year ratio.

Results of stock price testing is that the stock price is probably cheap. However, it is never a good sign when I cannot do the majority of my tests.

Is it a good company at a reasonable price? I do not know how anyone can recommend this stock. I find it doubtful that it will ever do well again. What I find interesting is the products that started Bombardier (like the ski-doo) under a new company of BRP Inc (TSX-DOO, NASDAQ-DOOO) is doing well.

When I look at analysts’ recommendations, I find Strong Buy (3), Buy (6), Hold (6) and Sell (1). The consensus would be a Buy. The 12 month stock price is $1.65 US$ or $2.20 CDN$. This implies a total return of 37.79% all from capital gains.

See what analysts are saying on Stock Chase. There are lots of Don’t Buy on this site. Karen Thomas on Motley Fool talks about the company becoming a speck of what it used to be. A writer on Simply Wall Street says that the company’s ROCE is mediocre. A writer on Simply Wall Street says that the company is paying its CEO too generously. CBC news via Yahoo talks about the sale of the train division of Bombardier.

Bombardier manufactures transportation solutions, from commercial aircraft and business jets to rail transportation equipment and related services. Its web site is here Bombardier Inc.

The last stock I wrote about was about was Emera Inc (TSX-EMA, OTC-EMRA) ... learn more. The next stock I will write about will be Home Capital Group (TSX-HCG, OTC-HMCBF) ... learn more on Wednesday, March 4, 2020 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks March 2020.... learn more on Tuesday, March 3, 2020 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.