Pizza Pizza Royalty Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. They were sort of growing the dividends before the Covid problem. Now they have cut the dividend. I seem to be the only one worried about PPL ability to pay royalties. The accounting is complex and I do not like complexity. See my spreadsheet on Pizza Pizza Royalty Corp.

I do not own this stock of Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF). A number of people have recommended this stock, so I decided to take a look at it. It was on once on John Heinzl's Dividend Hog Portfolio, but has since been taken off.

When I was updating my spreadsheet, I noticed what I hate about analyzing this stock is that it is complex. You have to look not only at the PZA stock’s financials but also the financials for Pizza Pizza Limited (PPL). I never like complexity. It is too easy for me to miss something and it is too easy for a company to hide something. PPL pays a royalty to PZA based on sales, so you have to be sure that PPL is in a position to pay that royalty. Also, PPL owns current 23% of PZA.

My son likes pizza and I asked him about what he thought of this company’s pizza. He said that it was eatable. (Talk about damming with faint praise.) He said that they sometimes have good deals, but then so do other pizza places. I asked what he disliked and he said he did not like the crust and they could be stingy with the cheese. However, he also said that when they have their pizza at movie theatres and special events, it is more expensive but it is a much better product. He said he wished that they did the same thing in their regular outlets.

They have cut their dividends by 30% because of the Covid 19 lockdown and lower current sales. See their announcement here. This stock has also been falling since its high in 2017. It now only has a positive return since inception because of dividend payments.

The dividend yields are good to high with dividend growth nonexistent to low. The current yield is not that high compared to past times, but also the company has just decreased their dividends by 30%. The current dividend is high (7% and above) at 7.15%. The 5 and 10 year median dividends are good (5% and 6% ranges) at 5.71% and 6.65%. The historical median dividend is high at 7.92%.

The Dividend Payout Ratios (DPR) for PZA are fine, but I think that the only ones that count are for PPL. The DPR for 2019 for EPS is 101% with 5 year coverage at 99%. The DPR for CFPS for 2019 is 74% with 5 year coverage at 75%. The DPR for Free Cash Flow for 2019 is 102% with 5 year coverage at 100%.

The Royalty Payout Ratios (DPR) for PPL are too high. The RPR for PPL for earnings is 93.5% with 5 year coverage at 91.5%. As far as I can see, PPL’s cash flow cannot cover the royalty payments to PZA and has not been able to do so for the past 10 years. The payout ratio for 2019 is 877%. As far as I can see there is no FCF for PPL.

Debt Ratios for PZA are fine, but the important ones are for PPL. The Long Term Debt/Market Cap Ratio is 0.20. The Debt Ratio for 2019 is 4.89. The Intangible Assets/Market Cap Ratio of PZA is 1.46. Some 99% of the assets of PZA depend on PPL. The Liquidity Ratio for 2019 is 2.16. The Debt Ratio for 2019 is 4.89. The Leverage and Debt/Equity Ratios for 2019 are 1.77 and 0.36.

Debt Ratios for PZA are not satisfactory. The Long Term Debt (PPL)/Market Cap (PZA) is 0.82. The Liquidity Ratio for 2019 is 0.83 (and is too low because current assets cannot cover current liabilities). The Debt Ratio for 2019 is 0.61. If you add back in Deferred Gain (basically money they got but have not earned), the ratio is still low at 1.37, but at least over 1.00.

The Total Return per year is shown below for years of 5 to 14 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	1.39%	-0.01%	-6.94%	6.93%
2009	10	-0.83%	13.21%	3.13%	10.08%
2005	14	0.81%	8.26%	-0.17%	8.42%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 14.27, 17.36 and 19.16. The corresponding 10 year ratios are 14.19, 15.97 and 18.15. The corresponding historical ratios are 12.85, 15.14 and 17.00. The current P/E Ratio is 9.87 based on a stock price of $8.39 and 2020 EPS of $0.85. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $12.63. The 10 year low, median, and high median Price/Graham Price Ratios are 0.93, 1.04 and 1.17. The current P/GP Ratio is 0.66 based on a stock price of $8.39. 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 1.46. The current P/B Ratio is 1.01 based on a Book Value of $205M, Book Value per Share of $8.34, and a stock price of $8.39. The current ratio is 31% below the 10 year ratio This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median Price/Cash Flow per Share Ratio of 11.19. The current P/CF Ratio is 7.22 based on Cash Flow of $28.6M, Cash Flow per Share estimate for 2020 of $1.16 and a stock price of $8.39. The current ratio is 36% 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 7.92%. The current dividend yield is 7.15% based a dividend of $0.60 (after the recent cut) and a stock price of $8.39. The current dividend yield is 9.7% below the historical dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a 10 year median dividend yield of 6.65%. The current dividend yield is 7.15% based a dividend of $0.60 (after the recent cut) and a stock price of $8.39. The current dividend yield is 7.6% above the 10 year dividend yield. 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 0.54 for Royalty System Sales. The current P/S Ratio is 0.40 based on 2020 Sales estimate of $513M, Sales per Share of $20.84 and a stock price of $8.39. The current ratio is 26% 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. The P/S Ratio test showing the stock price as cheap does not line up with the dividend yield tests because dividends have recently been cut. There are no problems that I can see with the rest of the tests which are showing the stock price as cheap.

Is it a good company at a reasonable price? I must admit I worry about the ability of Pizza Pizza Limited to pay the royalties. They seem to be paying out a very high percentage of their income. The cash flow is complex. All the accounting is complex because PPL owns 23% of PZA and so really does not have to pay the full royalties. I took that into account when looking at cash flow though and the results were not good. If I missed something, then that is even a better reason for me not to invest in this company if I do not understand the accounting. This is a company I have no plans to invest in.

When I look at analysts’ recommendations, I find a Buy (1) recommendation. It seems only one analyst is following this stock. The consensus would be a Buy. The 12 month stock price consensus is $9.00. This implies a total return of 14.42% with 7.15% from dividends and 7.27% from capital gains.

See what analysts are saying on Stock Chase . The last 5 recommendations are Don’t Buy. Vineet Kulkarni on Motley Fool thinks the company is better place for recovery than regular restaurants. A writer on Simply Wall Street likes that this company’s beta is close to the market’s. A writer on Simply Wall Street does not like the payout ratios. See the company’s review of the first quarter of 2020 on Newswire.

Pizza Pizza Royalty Corp., through its subsidiary, Pizza Pizza Royalty Limited Partnership, owns and franchises quick-service restaurants under the Pizza Pizza and Pizza73 brands. Its web site is here Pizza Pizza Royalty Corp.

The last stock I wrote about was about was Canadian Utilities Ltd (TSX-CU, OTC-CDUAF) ... learn more. The next stock I will write about will be HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF) ... learn more on Friday, May 22, 2020 around 5 pm. Tomorrow on my other blog I will write about Top 100 Dividend Stocks.... learn more on Thursday, May 21, 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 Utilities Ltd

Sound bite for Twitter and StockTwits is: Dividend Growth Utility. The stock price is probably cheap to reasonable. The management obviously expect slower growth because their dividend increase is much lower this year. See my spreadsheet on Canadian Utilities Ltd.

I own this stock of Canadian Utilities Ltd (TSX-CU, OTC-CDUAF). I started to follow this stock in January of 2009 because it was on the Dividend Achievers list, the Dividend Aristocrats list and was also on Mike Higgs’ dividend growth list at that time. The Dividend Aristocrats list is now an index on the TSX. ATCO (TSX-ACO-X) owns 88% of this stock, so you would not buy both these stocks.

When I was updating my spreadsheet, I noticed until 2011, the dividend increases were in the low range (below8%). From 2012 to 2018, they were in the moderate range (8% to 14% ranges) with most begin in the 9 and 10% ranges. The last two dividend increases have been lower with the one for 2019 at 7.5% and the one for 2020 at just 3%. I do have records going back to 1988 which shows that this company has a long history of dividend increases.

The dividend yields have been moderate with dividend growth moderate. The current dividend is in the good range of (5% to 6% ranges) at 5.76%. The 5, 10 and historical dividend yields are moderate (2% to 4% ranges) at 3.67%, 3.16% and 3.71%. The dividend growth has been in the moderate range (8% to 14% ranges) lately as you can see from the chart below. However, the last increase which was in 2020 was lower at 3%.

The Dividend Payout Ratios (DPR) are fine. The DPR for EPS for 2019 is 52% with 5 year coverage at 72%. The DPR for CFPS is 25% with 5 year coverage at 21%. For Free Cash Flow, none of the 3 sites I looked at agree on what it is. Using Morningstar from WebBroker I get a DPR for FCF of 188% with 5 year coverage of 297%. Using FCF is a new way of looking at dividend coverage, but has not turned out to be a great way when people disagree what the FCF is. It would seem using FCF is all the rage currently.

Debt Ratios are fine. The Long Term Debt/Market Cap is ok for 2019 at 0.82, but rises currently to 1.07 because of the decline of the stock price. It is common for utilities to have a lot of debt, but this ratio can look bad in a bear market. At this point, I am not concerned. The Liquidity Ratio for 2019 is very good at 2.32, although this has varied greatly over time. The 5 year median is just 1.32. The Debt Ratio for 2019 is 1.53 with a 5 year median at 1.52. The Leverage and Debt/Equity Ratios are 2019 are 2.90 and 1.90 and are fine. The 5 year median are 2.92 and 1.92.

The Total Return per year is shown below for years of 5 to 31 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	9.58%	2.68%	-0.87%	3.55%
2009	10	9.14%	9.94%	6.00%	3.94%
2004	15	8.04%	10.52%	6.57%	3.95%
1999	20	7.09%	11.43%	7.20%	4.23%
1994	25	6.38%	12.65%	7.79%	4.85%
1989	30	5.54%	11.35%	6.78%	4.57%
1988	31	5.41%	11.76%	6.93%	4.83%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 14.91, 17.24 and 19.56. The corresponding 10 year ratios are 14.35, 16.00 and 17.76. The corresponding historical ratios are 10.73, 12.93 and 14.86. The current P/E Ratio is 15.34 based on a stock price of $30.21 and 2020 EPS estimate of $1.97. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $29.61. The 10 year low, median, and high median Price/Graham Price Ratios are 1.13, 1.26 and 1.42. The current P/GP Ratio is 1.02 based on a stock price of $30.21. 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 2.19. The current P/B Ratio is 1.53 based on a stock price of $30.21, Book Value of $5,405M and a Book Value per Share of $19.78. The current P/B Ratio is 30% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median P/CF Ratio of 6.35. The current P/CF Ratio is 5.52 based on 2020 CFPS estimate of $5.47 and a stock price of $30.21. The current ratio is 13% below the 10 year median 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 3.71%. The current dividend yield is 5.76% based on dividends of $1.74 and a stock price of $30.21. The current dividend yield is 55% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median dividend yield of 3.16%. The current dividend yield is 5.76% based on dividends of $1.74 and a stock price of $30.21. The current dividend yield is 83% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 2.66. The current P/S Ratio is 2.34 based on 2020 Revenue estimate of $3,532M, Revenue per Share of $12.93, and a stock price of $30.12. The current ratio is 12% below the 10 year median 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 probably cheap to reasonable. The dividend yield test is showing the stock price as cheap, but the P/S Ratio does not confirm that, but the P/S Ratio says that the stock price is relatively reasonable and below the median. The P/B Ratio is a good test and it says that the stock is relatively cheap. There are no problems with any of the tests that I can see.

Is it a good company at a reasonable price? Certainly, the stock price is reasonable and it might even be on the cheap side. This is a good dividend growth utility stocks with a long reputation of giving out more in dividends each year.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (1), and Hold (7). The consensus would be a Hold. The 12 month stock price is $36.31. This implies a total return of $25.96% based on a stock price of $30.21, with 20.19% from capital gains and 5.76% from dividends. The expected total return does not match an analyst recommendation of Hold.

See what analysts are saying on Stock Chase. Reviews are mixed but there are few reviews of this important Canadian Utility. The problem with Stock Chase is the current owners bought it from the originators of this site and now want you to pay for information. Nelson Smith on Motley Fool thinks would be a great stock for retiring baby boomers. Aditya Raghunath on Motley Fool also thinks this is a great stock for retirees. A writer on Simply Wall Street has some concern about this company’s debt levels. A writer on Simply Wall Street says that the P/E Ratio has been rising lately but it is still below the industry’s average. For people who like such things on Yahoo Finance is the transcript from a recent earnings conference call.

Canadian Utilities Ltd, a subsidiary of holding company Atco, offers gas and electricity services. The company's main divisions include electricity (generation, transmission, and distribution), pipelines and liquid (natural gas and water), and Retail Energy. Headquartered in Calgary, Alberta, the firm mainly operates in Canada and Australia, along with some operations in the United States, United Kingdom, and Mexico. Its web site is here Canadian Utilities Ltd.

The last stock I wrote about was about was Mullen Group Ltd (TSX-MTL, OTC-MLLGF) ... learn more. The next stock I will write about will be Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF) ... learn more on Wednesday, May 20, 2020 around 5 pm. Tomorrow on my other blog I will write about How I Handle Booms and Busts .... learn more on Tuesday, May 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.

Mullen Group Ltd

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. The stock price is relatively cheap. They cut dividends for 3 months (so far) this year. There is insider buying. The Debt Ratios are good. See my spreadsheet on Mullen Group Ltd.

I own this stock of Mullen Group Ltd (TSX-MTL, OTC-MLLGF). I like to look at recommended small cap dividend paying stock to see if they would be a possible good investment now or in the future. The other thing to mention about this stock is that it converted from an income trust and decreased it dividends. The reduction in dividend brought the Dividend Payout Ratios down to a place that would allow for the company to begin growing dividends again.

When I was updating my spreadsheet, I noticed that I have lost money lately on this stock. My loss is at 15.86% per year for this stock I have held for 5 years. There is lots of insider buying going on including with directors and CFO.

The dividend yields have been mostly in the moderate to good ranges with dividend growth low to non-existent. The current dividend yield is high (above 6%) at 11.11%. The 5, 10 and historical dividend yields fall into the moderate range (2% to 4% ranges) at 4.13%, 4.60% and 4.06%.

The company started as an income trust and when they became a corporation, they cut the dividend over 70%. They started dividend increases again in 2011, but probably too fast and too soon. They started dividend cutting again in 2014. For this year they said they will not be paying dividends for the 3 months of April, May, and June. It is a monthly dividend.

The Dividend Payout Ratios (DPR) are fine, but DPR for EPS needs to improve. The DPR for EPS for 2019 was 87% with 5 year coverage at 215%. The DPR is expected to rise to 562% this year because they are not expected to earn much. The DPR for CFPS for 2019 was 31% with 5 year coverage at 31% also. This is a good rate. The DPR for Free Cash Flow for 2019 is 66% with 5 year coverage at 62%. Although Morningstar and Wall Street Journal do not agree on what the FCF is.

Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2019 is 0.48. The Liquidity Ratio for 2019 is current quite high and therefore quite good at 3.29. The Debt Ratio is high and good at 2.10. Leverage and Debt/Equity Ratios are low and good at 1.91 and 0.91 respectively.

The Total Return per year is shown below for years of 5 to 22 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	-12.94%	-11.05%	-15.34%	2.88%
2009	10	1.84%	0.94%	-5.52%	2.15%
2004	15	8.91%	3.99%	-3.82%	2.53%
1999	20	8.24%	11.09%	1.79%	2.21%
1997	22		8.77%	1.28%	2.21%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 23.17 27.50 and 31.83. The corresponding 10 year ratios are 13.46, 15.78 and 18.72. The corresponding historical ratios are 11.82, 14.90 and 18.58. The current P/E Ratio is 67.50 based on a stock price of $5.40 and 2020 EPS estimate of $0.08. This stock price testing suggests that the stock price is relatively is relatively expensive.

I get a Graham Price of $3.93. The 10 year low, median, and high median Price/Graham Price Ratios are 1.06, 1.30 and 1.54. The current P/GP Ratio is 1.37 based on a stock price of $5.40. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a 10 year median Price/Book Value per Share Ratio of 1.95. The current P/B Ratio is 0.63 based on a stock price of $5.40, Book Value per Share of $8.60, and Book Value of $893M. The current P/B Ratio is 68% below the 10 year ratio. This stock price testing suggests that the stock price is relatively is relatively cheap.

I get an historical median dividend yield of 4.06%. The current dividend yield is 11.11% based on dividends of $0.60 and a stock price of $5.40. The current dividend yield is 174% above the historical dividend yield. This stock price testing suggests that the stock price is relatively is relatively cheap. Even if you use the planned dividend for 2020 of $0.45 (missing 3 months of dividends), the current dividend yield is still 105% above the current dividend yield and the stock price is still relatively cheap.

I get a 10 year median dividend yield of 4.60%. The current dividend yield is 11.11% based on dividends of $0.60 and a stock price of $5.40. The current dividend yield is 142% above the historical dividend yield. This stock price testing suggests that the stock price is relatively is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 1.33. The current P/S Ratio is 0.51 based on a stock price of $5.40, 2020 Revenue estimate of $1107M, and Revenue per share of $10.66. The current ratio is 62% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively is relatively cheap.

Results of stock price testing is that the stock price is relatively cheap. The dividend yield testing is showing the stock price is relatively cheap and this is confirmed by the P/S Ratio test. The P/B Ratio test is also showing the stock price as cheap. Both the P/E Ratio test and the P/GP Ratio tests have problems.

There problems with the P/E Ratio test. First the stock price will only fall so far because of low earnings. This can cause the P/E Ratios to be unrealistically high as in this stock for the 5 year ratios. The 2020 EPS is expected to be very low, so we have a very high EPS. The P/E Ratio falls to a lower level in 2021 of 18.62 and even lower in 2020 at 14.21 because of better expected EPS. The P/GP Ratio test has similar problems.

Is it a good company at a reasonable price? The stock price is certainly cheap. I think that they raised the dividends too fast after becoming a corporation. Hopefully they have learned from this. They seem to be back on track and I will hold on to my shares at present.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (5) and Hold (6). The consensus would be a Buy. The 12 month stock price is $6.83. This implies a total return of 37.59% with 11.11% from dividends and 26.48% from capital gains.

Analysts on Stock Chase have a few entries from 2019. Christopher Liew comments on Motley Fool about this company. Adam Othman on Motley Fool thinks this company is a long term buy. A writer on Simply Wall Street talks about ownership for this company. The company talks about the effect of Covid 19 on their company on Newswire.

Mullen Group Ltd supplies trucking and logistics services to the oil and natural gas industry in Canada and the United States. The company comprises two business segments: trucking/logistics and oilfield services. Its web site is here Mullen Group Ltd.

The last stock I wrote about was about was Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF) ... learn more. The next stock I will write about will be Canadian Utilities Ltd (TSX-CU, OTC-CDUAF) ... learn more on Monday, May 18, 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.

Hammond Power Solutions Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. The stock price is currently cheap. They have just recently started to increase dividends again. They have good debt ratios. See my spreadsheet on Hammond Power Solutions Inc.

I own this stock of Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF). I bought this stock as my main purchase for the TFSA in 2013 and 2014. I picked Hammond initially in 2013 as my main buy because it has good growth and reasonable dividend.

When I was updating my spreadsheet, I noticed that I have not done well on this stock at all. It hit a high in 2007 and has never recovered to that high. However, it has been better in 2019 and in 2019 and 2020 it raised its dividends after the dividends were flat for 5 years. Usually dividends are increased when management feels good about the future.

The dividend yields are usually moderate with dividend growth either good or flat. The current dividend yield is in the good category (5% to 6% ranges) at 5.65%. However, the dividend yield for this stock has mostly been in the moderate range (2% to 4% ranges). The 5, 10 and historical dividend yields are 3.72%, 3.02% and 3.00%. The dividend growth between 2009 and 2014 was good (15% and over). Dividends were then flat between 2014 and 2018. In 2019 and 2020 there was dividend growth again in the good range. The last dividends increase for 2020 was for 21.4%.

The Dividend Payout Ratios (DPR) are good. The DPR for 2019 is 28% with 5 year coverage at 113%. Next year, the DPR is expected to be 35% with 5 year coverage at 87%. The DPR for CFPS for 2019 was 11% with 5 year coverage at 14%. The DPR for Free Cash Flow for 34% with 5 year coverage at 34%.

Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2019 is 0.10. They took out debt in 2019 and have not had any long term debt for some time. With the recent fall in the stock price, the ratio is still low at 0.12. The Liquidity Ratio is 1.52 for 2019. The Debt Ratio is 2.04 for 2019. The Leverage and Debt/Equity Ratios for 2019 are 1.96 and 0.96.

The Total Return per year is shown below for years of 5 to 18 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	3.13%	4.22%	0.91%	3.31%
2009	10	10.84%	0.83%	-1.79%	2.62%
2004	15		17.90%	13.83%	4.07%
2001	18		16.15%	13.01%	3.14%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 9.66, 11.91 and 14.15. The corresponding 10 year ratios are 11.63, 14.07 and 19.13. The corresponding historical ratios are 6.51, 8.91 and 10.24. The current P/E Ratio is 6.21 based on last 12 month EPS of $0.97 and a stock price $6.02. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $14.28. The 10 year low, median, and high median Price/Graham Price Ratios are 0.60, 0.79 and 0.97. The current P/GP Ratio is 0.42 based on a stock price of $6.02. 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 0.83. The current P/B Ratio is 0.64 based on a Book Value of $110M, Book Value per Share of $9.35 and a stock price of $6.02. The current ratio is 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 3.00%. The current dividend yield is $5.65% based on dividends of $0.34. The current dividend yield is 88% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median dividend yield of 3.02%. The current dividend yield is $5.65% based on dividends of $0.34. The current dividend yield is 87% 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 0.33. The current P/S Ratio is 0.20 based on a stock price of $6.02, last 12 month Revenue of $363M and Revenue per Share of $30.87. The current ratio is 41% 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. The dividend yield tests are showing the stock price as relatively cheap and this is confirmed by the P/S Ratio test. In fact, all the stock price tests are showing the same thing and there are no problems with any of the tests.

Is it a good company at a reasonable price? I still like this company and when I have more money in my TFSA account, I will buy more of this stock. The stock price is reasonable and in fact it is cheap.

When I look at analysts’ recommendations, I find no analysts recommendations. There is one analyst target price at $7.30. This implies a total return of 26.91% with 21.26% from capital gains and 5.65% from dividends.

See what analysts are saying on Stock Chase. There are few entries, but the last in May 2019 give it a buy. A writer on Simply Wall Street talks about a 30% return in 2019. See the executive summary on Simply Wall Street. A writer on Simply Wall Street says FCF does not cover dividend, but it depends on how you calculate FCF. The company talks about its first quarterly results on Global Newswire.

Hammond Power Solutions Inc is a Canada-based manufacturer of dry-type magnetics. It is engaged in the design and manufacture of custom electrical engineered magnetics. The firm is also a manufacturer of standard electrical dry-type, cast resin, and liquid-filled transformers. The company operates in various geographical markets including Canada, the United States, Mexico, and India in which it derives majority revenue in the United States and Mexico. Its web site is here Hammond Power Solutions Inc.

The last stock I wrote about was about Kirkland Lake Gold (TSX-KL, NYSE-KL) ... learn more. The next stock I will write about will be Mullen Group Ltd (TSX-MTL, OTC-MLLGF) ... learn more on Friday, May 15, 2020 around 5 pm. Tomorrow on my other blog I will write about Canadian REITs.... learn more on Thursday, May 15, 2020 around 5 pm.

Also, on my book blog I have put a review of the book Crashed by Adam Tooze 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.

Kirkland Lake Gold

Sound bite for Twitter and StockTwits is: Dividend Growth Materials. The stock price seems relatively expensive. This is a gold company and therefore highly speculative. It has no debt and is currently growing strongly. See my spreadsheet on Kirkland Lake Gold .

I do not own this stock of Kirkland Lake Gold (TSX-KL, NYSE-KL). This stock was recommended to me by Sue O'Reilly in 2019 and I wish I had bought it when she talked about it. Sue O'Reilly runs the Meetup Group of StockTwits.

When I was updating my spreadsheet, I noticed this stock has really taken off recently, starting in 2017. Not only has the share price increased, at 107% per year over the past 5 years, but revenues and earnings are also increasing rapidly. They switched from reporting in CDN$ to US$ in 2016. They started dividend payments in CDN$ in 2017, but switched them to US$ in 2020.

The dividend yields are low with dividend growth high. They just started to pay dividends in 2017. The dividend yield has been low (under 2%) from the start. Today, the dividend yield is 1.22%. The three year median dividend yield is just 0.32%. The dividend growth is high. It has grown by 178% per year over the past 3 years. The last dividend increase was in 2020 and it was for 108%. However, most companies starting dividends start them low and increase them rapidly over the next few years. So the current increases really tells us nothing about future increases.

The Dividend Payout Ratios (DPR) are great. The DPR for EPS for 2019 was 4.65%. The DPR coverage for the last 3 years is 2.8%. It is expected to be 14% this year. The DPR for CFPS for 2019 is 3.05%. This is expected to be 9% this year. The DPR for Free Cash Flow for 2019 is 6.37%. It is expected to be 14% this year.

Debt Ratios are all good. They have no long term debt. They used to have a long term debt until 2016 when they paid it all off. The Liquidity Ratio is good at 1.91. The Debt Ratio is quite high and very good at 3.45. The Leverage and Debt/Equity Ratios are both good at 1.41 and 0.41.

The Total Return per year is shown below for years of 5 to 18 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	177.98%	106.67%	106.35%	0.32%
2009	10		10.85%	10.80%	0.06%
2004	15		8.37%	8.33%	0.04%
2001	18		11.44%	11.41%	0.03%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 9.33, 14.87 and 23.07. The corresponding 10 year ratios are 9.27, 14.75 and 21.65. The corresponding historical ratios are negative. Note that there was only earning losses prior to 2010 and some also after 2010.. The current P/E Ratio is 12.75 based on a stock price of $57.61 and 2020 EPS estimate of $4.82. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $35.23. The 10 year low, median, and high median Price/Graham Price Ratios are 0.66, 1.20 and 1.74. The current P/GP Ratio is 1.64 based on a stock price of $57.61. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a 10 year median Price/Book Value per Share Ratio of 1.67. The current P/B Ratio is 4.72 based on a stock price of 57.61, Book Value of $2,559M and a Book Value per Share of $12.21. The current P/B Ratio is 183% above the 10 year median. This stock price testing suggests that the stock price is relatively expensive.

I get an historical median dividend yield of 0.32%. The current dividend yield is 1.22% based on dividend of $0.70 and a stock price of $57.61. The current dividend yield is 282% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap. Since we have only 3 years of data, it makes no sense to do any other dividend yield testing.

The 10 year median Price/Sales (Revenue) Ratio is 2.70. The current P/S Ratio is 2.73 based on 2020 Revenues estimate of $3,303M, Revenue per Share of $15.76 and a stock price of $57.61. The current ratio is 34% above the 10 year median 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 expensive. The tests are showing various results. The dividend yield testing which shows that the stock price as relatively cheap is not confirmed by the P/S Ratio test which shows the stock price as relatively expensive. The P/B Ratio test also shows that the stock price is relatively expensive. There are no problems with the P/S Ratio test, nor with the P/B Ratio test.

The problem with the P/E Ratio test is that there were so many years with earnings losses. This would be a problem for the P/GP Test also. The problem with the dividend yield test is that they just started to pay dividends. Dividends often increase sharply after a company initiates dividends.

Is it a good company at a reasonable price? There is a lot to admire in this company with the current big growth in revenue, earnings and book value and no debt. I think that it is overpriced at the moment, but I intend to keep an eye on it. You should know that this is a highly speculative stock.

When I look at analysts’ recommendations, I find Strong Buy (5), Buy (5) and Hold (4). The consensus would be a Buy. The 12 month stock price consensus is $66.80. This implies a total return of 17.17% with 15.95% from capital gains and 1.22% from dividends.

See what analysts are saying on Stock Chase. There are mixed reviews but a lot are positive. Andrew Button on Motley Fool talks about the complexity of investing in gold companies. He also says that KL has been flat for a year and May 2019 to May 2020 has been mostly flat with a big dip in March 2020. See the executive summary on Simply Wall Street. A writer on Simply Wall Street looks at the company’s dividend and says the big increases are probably not sustainable. Staff at Northern Ontario Business on May 6 says that the company is beginning to recall its workforce. The company released first quarterly results on Global Newswire.

Kirkland Lake Gold Ltd is a Canada-based gold mining, development, and exploration company with a diversified portfolio of exploration projects. The company's mines and material mineral projects are located in Canada and Australia. Its web site is here Kirkland Lake Gold .

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 Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF) ... learn more on Wednesday, May 13, 2020 around 5 pm. Tomorrow on my other blog I will write about Stocks, Best Asset Class.... learn more on Tuesday, May 12, 2020 around 5 pm.

Also, on my book blog I have put a review of the book 1177 BC by Eric Cline 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.

Ag Growth International

Sound bite for Twitter and StockTwits is: Dividend Paying Industrial. I do not think I can call this a dividend growth stock at this point, but I expect it will be again once it gets back on its feet again. They are getting the Dividend Payout Ratios under control, finally. Some Debt Ratios could improve. 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. Ag Growth’s median yield in 2009 was 7.9%. It was on the Canadian Dividend Aristocrats and this is why I first investigated this company.

When I was updating my spreadsheet, I noticed it never got its Dividend Payout Ratios for EPS under control since changing to a corporation in 2009. It used to be an income trust and income trust could pay out more than the EPS, but corporations cannot. It recently cut its dividends by 75%. So it is finally going to get their DPRs in order.

When I was first updating this spreadsheet on last weekend, I got a stock price of $24.08. Now the stock price is 30.43% a rise of over 26%. The dividend yield has gone from 2.47% to 1.97% over this same period. Also, this stock price was in the $20 ranges just two days ago.

The dividend yields are currently low with dividend growth non-existent. The current dividend yield is moderate (below 2%) at 1.97%. This is after the recent dividend cut of 75%. This used to be an income trust company and income trust have higher yields than corporations. The 5 median dividend yield is moderate at 4.78%. The 10 year and historical median dividend yield are in the good range (5% to 6% ranges) at 5.22% and 6.13%. There has been not dividend increases since 2011 and recently they have cut the dividend.

The Dividend Payout Ratios (DPR) will improve. The DPR for EPS has been too high since the company became a corporation in 2009. The DPR for EPS for 2019 was 312% with 5 year coverage at 301%. The DPR for EPS is not expected to be under 100% until next year when analysts think it will be at 30%. The DPR for CFPS was also too high and in 2019 it was 62% with 5 year coverage at 56%. The Free Cash Flow for 2019 is negative, so DPR for FCF cannot be calculated. Analysts expect the DPR for FCF to be 40% this year.

Debt Ratios are fine but some could be improved. The Long Term Debt/Market Cap Ratio for 2019 is fine at 0.45. The Liquidity Ratio is good at 1.72 for 2019 and 5 year median at 1.58. The Debt Ratio for 2019 is a little low at 1.34 with 5 year median at 1.40. The Leverage and Debt/Equity Ratios are too high in 2019 at 3.92 and 2.92. The 5 year median values are fine at 2.65 and 2.16.

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	0.00%	0.74%	-3.85%	4.58%
2009	10	1.64%	8.97%	2.93%	6.04%
2004	15	7.77%	19.96%	9.20%	10.76%
2003	16		21.14%	9.94%	11.20%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 22.79, 31.76 and 41.02. The corresponding 10 year ratios are 19.76, 25.30 and 29.35. The corresponding historical ratios are 14.42, 21.36 and 26.57. The current P/E Ratio is 40.04 based on a stock price of $30.43 and a 2020 EPS estimate of $0.76. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $19.48. The 10 year low, median, and high median Price/Graham Price Ratios are 1.43, 1.88 and 2.16. The current P/GP Ratio is 1.56 based on a stock price of $30.43. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year median Price/Book Value per Share Ratio of 2.59. The current P/B Ratio is 1.37 based on a stock price of $30.43, Book Value of $414M and Book Value per Share of $22.18. The current P/B Ratio is 47% 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 6.13%. The current dividend yield is 1.97% based on dividends of $0.60 and a stock price of $30.43. The current dividend yield is 68% 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 5.22%. The current dividend yield is 1.97% based on dividends of $0.60 and a stock price of $30.43. The current dividend yield is 62% below the 10 year dividend yield. This stock price testing suggests that the stock price is relatively expensive.

The 10 year median Price/Sales (Revenue) Ratio is 1.36. The current P/S Ratio is 0.59 based on 2020 Revenue estimate of $958M, Revenue per Share of $51.32 and a stock price of $30.43. The current ratio is 56% below the 10 year median 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 cheap. It is much easier to judge the stock price when all the testing shows the same thing. However, that is not always the case. That the price is relatively expensive by the dividend yield test is not confirmed by the P/S Ratio testing which says the stock price is cheap. The P/B Ratio test is a good one and shows the stock price as relatively cheap.

There are problems with the dividend yield tests. Not only did this stock used to be an income trust where the dividend yields were much higher, and the company has just recently cut the dividends significantly. There are problems with the P/E Ratio tests. The P/E Ratios have recently skyrocketed because of recent lower EPS. The P/GP Ratio considers the book value as well as the EPS and therefore suffers problems that the P/E Ratio testing suffers from.

Is it a good company at a reasonable price? I bought this stock for diversification. We are in a bear market and this company is suffering because of the bear market. You never know ahead of time what stocks will suffer in any bear market. Bear markets do not last forever and I see no problem in this company recovering. Stock price always recover before P/E Ratios do because the market is looking towards the future. I will retain this stock and I think the stock price is reasonable, in fact I believe it is still cheap.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (5), and Hold (1). The consensus would be a Buy. The 12 month stock price would be $36.07. This would imply a total return of 20.51 with 18.53% from capital gains and 1.97% from dividends.

Ryan Bushell on Stock Chase recently said do not buy because business around the world has stopped. Ambrose O'Callaghan on Motley Fool says this company has solid fundamentals and favourable P/B Ratio. A writer on Simply Wall Street looks at ownership. A writer on Simply Wall Street says that the company’s ROCE is average for its industry, but mediocre in absolute terms. The company reports their first quarterly results on Newswire.

Ag Growth International Inc manufactures portable and stationary grain handling, storage and conditioning equipment, including augers, belt conveyors, grain storage bins, grain handling accessories, grain aeration equipment and grain drying systems. It has manufacturing facilities in Canada, the United States, Italy, Brazil, and the United Kingdom. Western Canada region generates most of the company's revenue. Its web site is here Ag Growth International.

The last stock I wrote about was about was Power Corp of Canada (TSX-POW, OTC-PWCDF) ... learn more. The next stock I will write about will be Kirkland Lake Gold (TSX-KL, NYSE-KL) ... learn more on Monday, May 11, 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.

Power Corp of Canada

Sound bite for Twitter and StockTwits is: Dividend Growth Financial. The stock price s current relatively cheap. Insider buying started at $22.00. The company has been buying back shares recently. They have good dividend coverage. See my spreadsheet on Power Corp of Canada.

I own this stock of Power Corp of Canada (TSX-POW, OTC-PWCDF). I started following this stock because it was on the Dividend Achievers, the Dividend Aristocrats lists and also on Mike Higgs’ list. It is a stock that I notice has been recommended lately as good value (October 2008). I got shares in this company when Power Corp reorganized and gave out Power Corp Shares to replace Power Financial Shares.

When I was updating my spreadsheet, I noticed that the company bought back a lot of shares (8.5%). I have not done well with this lately. I was one of the shareholders who had to trade in the Power Financial Corp shares for Power Corp Shares. It is up by 7.6% from last month. Out of the 157 stock I track, this is position 50 in change from last month, going from lowest change to highest change in stock price. Insiders stated to buy when the stock hit around $22.00.

The dividend yields have been moderate with dividend growth low. Mostly dividends on this stock has been in the moderate (2% to 4% ranges). However, the most recent yields are in the good range (5% to 6% ranges) with the current dividend yield in a high range (over 6%) at 8.28%. The 5, 10 and historical dividend yields are moderate at 4.56%, 4.56% and 2.34%. Yields have been higher since 2008 because insurance companies have not done well since then because of low interest rates. The dividend growth is currently low (under8%). See chart below.

The Dividend Payout Ratios (DPR) are good. The DPR for EPS for 2019 is 63% with 5 year coverage at 50%. The DPR for CFPS for 2019 is 10% with 5 year coverage at 9%. The DPR for Free Cash Flow for 2019 is 10.5% with 5 year coverage at 9.7%.

Debt Ratios are fine, but debt and covering asset ratio could be improved. Since this is a financial, I am looking at long term debt compared to covering assets and the ratio is high at 0.99. The Liquidity Ratio, which is of much importance, is good at 2.03. The Debt Ratio is 1.08 which is normal for a Financial Services sector stock. Leverage and Debt/Equity Ratio at 13.04 and 12.04 are rather normal for a Financial Services sector stock.

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	5.47%	5.37%	1.04%	4.32%
2009	10	3.25%	5.46%	1.36%	4.09%
2004	15	7.32%	4.02%	0.51%	3.52%
1999	20	9.85%	9.47%	5.10%	4.37%
1994	25	10.91%	13.59%	8.27%	5.32%
1989	30	10.73%	11.51%	7.39%	4.12%
1987	32	10.03%	11.12%	7.25%	3.87%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 9.67, 11.22 and 12.05. The corresponding 10 year ratios are 10.32, 11.43 and 13.02. The corresponding historical ratios are 10.82, 12.63 and 14.21. The current P/E Ratio is 15.33 based on a stock price of $21.62 and 2020 EPS estimate of $1.41. This stock price testing suggests that the stock price is relatively expensive.

Looking further into the P/E Ratios, I realize that the P/E Ratio for 2020 is high because EPS is expected to drop by 44% this year before going back to a more normal value in 2021. The potential P/E Ratio for 2021 is 7.48 based on a stock price of $21.62 and 2021 EPS Estimate of $2.89. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $32.65. The 10 year low, median, and high median Price/Graham Price Ratios are 0.72, 0.78 and 0.84. The current P/GPR Ratio is 0.66 based on a stock price of $21.62. 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 1.17. The current P/B Ratio is 0.64 based on a stock price of $21.62, a Book Value of $14,334M and a Book Value per Share of $33.61. The current P/B ratio is 45% below the 10 year median P/B Ratio. This stock price testing suggests that the stock price is relatively cheap.

Looking further in the P/B Ratio I see that the current ratio is 0.64 and therefore below 1.00 which means the stock is selling below the book value (or potential breakup value). A P/B Ratio this low is either a sign of a cheap stock or a stock in trouble.

I get an historical median dividend yield of 2.34%. The current dividend yield is 8.28% based on dividends of $1.75 and a stock price of $21.62. The current dividend is 254% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median dividend yield of 4.56%. The current dividend yield is 8.28% based on dividends of $1.75 and a stock price of $21.62. The current dividend is 82% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 0.34. The current P/S Ratio is 0.20 based on 2020 Revenue estimate of $46,990M, Revenue per Share of $110.18 and a stock price of $21.62. The current ratio is 42% 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. This cannot be a surprise as a lot of stocks are cheap due to the current bear market. The dividend yield tests show this and the cheapness is confirmed by the P/S Ratio test. The only test not to show this is the P/E Test, but this is due to an expected drop in the EPS this year. There are no problems with the other tests which show this stock is cheap.

Is it a good company at a reasonable price? This stock is back on the Canadian Dividend Aristocrat list, but this list does not have very high standards. I think it is a good long term dividend growth stock to hold and I will continue to hold it. It is current selling at a cheap price.

When I look at analysts’ recommendations, I find Strong Buy, (1), Buy (1) and Hold (6). The consensus is a Hold. The 12 month stock price consensus is $26.13. This implies a total return of 29.14% with 20.86% from capital gains and 8.28% from dividends.

See what analysts are saying on Stock Chase. One says the stock is stable and safe. Aditya Raghunath on Motley Fool says this company is a great buy now. A Writer on Simply Wall Street says this stock is trading beneath its intrinsic value. Andrew Willis speaks on Morningstar talks about this stock. David Scanlan on Financial Post talks about changes at the top of Power Corp.

Incorporated in 1925, Power Corp. of Canada is a diversified holding company with interests in financial services, communications, and other business sectors. Its web site is here Power Corp of Canada.

The last stock I wrote about was about was TFI International (TSX-TFII, OTC-TFIFF) ... learn more. The next stock I will write about will be Ag Growth International (TSX-AFN, OTC-AGGZF) .... learn more on Wednesday, May 6, 2020 around 5 pm. Tomorrow on my other blog I will write about Something to Buy May 2020.... learn more on Thursday, May 09, 2020 around 5 pm.

Also, on my book blog I have put a review of the book Bush Runner by Mark Bourrie 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.

TFI International Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. Stock price is relatively reasonable but above the median. However, in a bear market you want to buy something that is relatively cheap. The Dividend Payout Ratios are good. See my spreadsheet on TFI International.

I own this stock of TFI International (TSX-TFII, OTC-TFIFF). I read a report called "6 Canadian Dividend Stocks That Fly Under the Radar" by John Heinzl in April of 2013. This is one of the stocks mentioned. There was also a good review of this stock by Advice Hotline by MPL Communications. I bought this stock in 2017 because I liked the spreadsheet. It is a stock recommended my MPL Communications.

When I was updating my spreadsheet, I noticed that they were decreasing their shares since 2015 (by some 20%), but this year they issued shares and increased them by almost 7%. Even though it is down this year, year to date, I have done well to the end of April with a Total Return of 13.28%, with 10.58% from capital gains and 2.70% from dividends.

The dividend yields are moderate with dividend growth moderate. This stock used to be an income trust, so interest rates were higher in the past. They cut the dividends went they changed to a corporation and since then yields are been lower. The current dividend yield is moderate (2% to 4% ranges) at 2.76%. The 5, 10 and historical yields are also moderate at 2.35%, 2.45% and 3.33%. The dividend growth, since they started to grow them again has been in the moderate range (8% to 14% ranges). See chart below.

The Dividend Payout Ratios (DPR) are good. The DPR for EPS for 2019 is 25% with 5 year coverage at 23%. The DPR for CFPS for 2019 is 11% with 5 year coverage at 12%. The DPR for Free Cash Flow for 2019 is 27% with 5 year coverage at 33%. Dividend Coverage Ratio for 2019 is 3.69.

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2019 is 0.47. The Liquidity Ratio for 2019 is low at 1.08, but if you add in Cash Flow before dividends, it is 1.81. The Debt Ratio is 1.49 for 2019. With a 5 year median at 1.56. The Leverage and Debt/Equity Ratios are current a bit too high at 3.03 and 2.03 respectively.

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	10.60%	10.56%	8.32%	2.24%
2009	10	9.15%	21.62%	18.04%	3.58%
2004	15	-1.27%	11.83%	7.35%	4.48%
1999	20	-1.01%	30.09%	15.30%	14.79%
1994	25		24.37%	15.47%	8.90%
1990	29		17.91%	12.81%	5.10%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 9.24, 12.14 and 15.04. The corresponding 10 year ratios are 9.38, 12.16 and 14.94. The corresponding historical ratios are 8.87, 11.23 and 13.45. The current P/E Ratio is 13.55 based on a stock price of $37.66 and 2020 EPS estimate of $2.78. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a Graham Price of $32.64. The 10 year low, median, and high median Price/Graham Price Ratios are 0.84, 1.04 and 1.27. The current P/GP Ratio is 1.15 based on a stock price of $37.66. 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 2.14. The current P/B Ratio is 2.21 based on a stock price of $37.66, Book Value of $1,484M, and a Book Value per Share of $17.03. The current ratio is 3.4% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get an historical median dividend yield of 3.33%. The current dividend yield is 2.76% based on a stock price of $37.66 and dividends of $1.04. The current yield is 17% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a 10 year median dividend yield of 2.45%. The current dividend yield is 2.76% based on a stock price of $37.66 and dividends of $1.04. The current yield is 12.6% above the 10 year median dividend yield. 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 0.62. The current P/S Ratio is 0.69 based on 2020 Revenue Estimate of $4,770M, Revenue per Share of $54.75 and a stock price of $37.66. The current ratio is 10% 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 is probably reasonable, but above the median. For the dividend yield tests, the 10 year one is probably the best for this stock as the company used to be an income trust, and income trusts had quite high dividend yields which would influence the historical median dividend yield. However, the 10 year dividend yield test of reasonable and below the median is not confirmed by the P/S Ratio test which says the stock is reasonable but above the median. All the other tests agree with the P/S Ratio test. There are no problems with any of these tests.

Is it a good company at a reasonable price? I started to buy shares in this company in 2017 and bought more in 2018 and 2020. It is a good dividend growth company for me. Although the price is still in the reasonable range, considering that we are in a bear market, it would be nice if it was cheap and it is not.

When I look at analysts’ recommendations, I find Strong Buy (7), Buy (6), Hold (1), and Sell (1). The consensus would be a Buy. The 12 month stock price consensus is $44.69. This implies a total return of 21.43% with 18.67% from capital gains and 2.76% from dividends.

Among all the positive views on this company was a negative one on Stock Chase. Chris Blumas says that the company will have disruptions by technology and the valuation is too high for this stage in the economic cycle. This might explain the sell recommendation.

See what analysts are saying on Stock Chase . There were mixed views in the past, but last entries were positive. Nelson Smith on Motley Fool thinks this stock is still cheap. See the executive over view on Simply Wall Street. A writer on Simply Wall Street says that the P/E of this stock is lower than the industry average and the Canadian market average. So, current market expectation for this stock is muted. The company announces first quarterly results on Globe Newswire. Brian Anderson on Smarter Analyst talks about a recent rating on this stock

TFI International is a recognized North American transportation and logistics leader, partnering with a diverse group of customers in the US, Canada, and Mexico. Their vast e-commerce network spans more than 80 North American cities. Its web site is here TFI International.

The last stock I wrote about was about was McCoy Global Inc (TSX-MCB, OTC-MCCRF) ... learn more. The next stock I will write about will be Power Corp of Canada (TSX-POW, OTC-PWCDF) ... learn more on Wednesday, May 6, 2020 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks May 2020.... learn more on Tuesday, May 05, 2020 around 5 pm.

Also, on my book blog I have put a review of the book Boom and Bust by William Quinn and John D. Turner 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.

McCoy Global Inc

Sound bite for Twitter and StockTwits is: Small Cap Industrial. The stock price is relatively cheap. Buying would be a high speculative buy. It is because of the strong balance sheet that I decided a few days ago to buy some more of this stock. See Debt Ratio section below. Insiders are buying. See my spreadsheet on McCoy Global Inc.

I own this stock of McCoy Global Inc (TSX-MCB, OTC-MCCRF). I decided to try out McCoy in 2011. They had just restored their dividend. 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.

When I was updating my spreadsheet, I noticed I am still losing money on this stock. It is down 33.6% per year. It serves the oil and gas industry, so I do not see a recovery anytime soon. I knew what I was getting into when I bought this stock. It is in my TFSA account, which is my fooling around money account. There is insider buying.

See their recent update. They are not only cutting staff and salaries, the salaries cut also affects senior levels, Board Members and CEO. They sound in this update as a very responsible company.

The company started to pay dividends in 2004. This stock stop paying dividends in 2015. This is not the first time to stop dividends as they paid no dividends in 2010. The dividend yields were all over the place, but are were basically low (Under 2%) to moderate (2% to 4% ranges).

The Dividend Payout Ratios (DPR) are not currently relevant as they are not paying dividends. They tried paying what they could afford, but they did have years of earnings losses.

Debt Ratios are very good. The long Term Debt/Market Cap is still good at 0.34 considering that the stock has fallen 33% year to date after falling 40% in 2019. The Liquidity Ratio for 2019 is very good at 2.98 in 2019. The Debt Ratio is also very good at 2.74 in 2019. The Leverage and Debt/Equity Ratios are also very good at 1.58 and 0.58 for 2019

The Total Return per year is shown below for years of 5 to 22 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	-30.00%	-31.76%	-32.24%	0.48%
2009	10	-3.89%	-0.64%	-8.38%	7.74%
2004	15	18.52%	-4.68%	-9.76%	5.08%
1999	20		-1.38%	-6.07%	4.69%
1997	22		-3.82%	-7.52%	3.69%

The 5 year low, median, and high median Price/Earnings per Share Ratios are all negative and therefore useless. The corresponding 10 year ratios are 5.63, 8.27 and 10.19. The corresponding historical ratios are 4.15, 8.43 and 10.20. The current P/E Ratio is 3.33 based on a stock price of $0.40 and 2020 EPS of $0.12. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $1.92. The 10 year low, median, and high median Price/Graham Price Ratios are 0.54, 0.80 and 1.17. The current P/GP Ratio is 0.21 based on a stock price of $0.40. 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 1.22. The current P/B Ratio is 0.29 based on a book Value of 37.8M, Book Value per Share of $1.37, and a stock price of $0.40. The current P/B Ratio is some 76% below the 10 year ratio. This stock price testing suggests that the stock price is relatively cheap.

I cannot do any of the median dividend yield tests as the stock no long has a dividend.

The 10 year median Price/Sales (Revenue) Ratio is 0.81. The current P/S Ratio is 0.29 based 2020 Revenue estimate of $38.1M, Revenue per Share of $1.38 and a stock price of $0.40. The current P/S Ratio is some 64% 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. I like the P/S Ratio test best and it says that the stock price is relatively cheap. There are no problems with the other tests that I could complete.

Is it a good company at a reasonable price? The company is currently cheap for a reason. The company provides services to the Oil and Gas industry which has been decimated. You really lose on companies when they go bankrupt. Because of the company’s debt ratios, I believe it will survive. This is highly speculative.

When I look at analysts’ recommendations, I find Hold (2). The consensus would be a Hold. The 12 month stock price consensus is $0.55. This implies a total return of 37.50% all from capital gains.

This site of Stock Chase only has old entries. This is not surprising as it is a small cap that is not doing well. A writer on Simply Wall Street talked about this company in 2019. They said they would like it better if there were insiders buying. There has been insider buying both in 2019 and 2020. A writer on Simply Wall Street also looked at the debt position of this company. It is always interesting to look at the Executive Summary of a stock on Simply Wall Street. Elias Foscolos on CanTech Letter says why he is cautious about this company. The company says on News Wire what action they are taking in connection with the Covid 19 situation.

McCoy Global provides technologies designed to support wellbore integrity and assist with collecting critical data for the global energy industry. The Corporation operates internationally through direct sales and distributors with operations in Canada, the United States of America and the United Arab Emirates. . Its web site is here McCoy Global Inc.

The last stock I wrote about was about was Thomson Reuters Corp (TSX-TRI, NYSE-TRI) ... learn more. The next stock I will write about will be TFI International (TSX-TFII, OTC-TFIFF) ... learn more on Monday, May 4, 2020 around 5 pm.

Also, on my book blog I have put a review of the book Upheaval by Jared Diamond 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.