Intertape Polymer Group Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. The stock price is current relatively cheap. They give out a lot of stock options. They need to improve both their Dividend Payout Ratios and Debt Ratios. See my spreadsheet on Intertape Polymer Group Inc.

I do not own this stock of Intertape Polymer Group Inc (TSX-ITP, OTC-ITPOF). I got this stock suggestion from a member of an Investment Club I belong to. The company reports in US$ and distributes it dividend in US$.

When I was updating my spreadsheet, I noticed that the company gives away lots of stock options. In the past year the outstanding shares were increased by 0.61% (5 year average 0.60%). This is rather high as you would expect this to be no higher than 0.50% of outstanding shares. It appears that there is lots of insider selling (0.11% of market Cap), but really people are not taking up stock options given.

There is also a number of people with the last name of Yull. The CEO is Gregory Yull. There is an officer called Duncan Yull. A director called Melbourne Yull who has over a 1.7M shares. Apparently, Melbourne Yull started the company.

The dividend yields are moderate with dividend growth currently low. The current dividend is good (5% and 6% ranges) at 6.66% however, the yield has been mostly in the moderate range (2% to 4% ranges). The 5, 10 and historical median dividend yields are 3.71%, 3.56% and 3.56%. The recent dividend increases have been in the low range (under 8%). The most recent dividend increase was for 5.4% and this increase was for this year.

The Dividend Payout Ratios (DPR) are fine, but are getting too high. The DPR for 2019 is 82% with 5 year coverage at 63%. The DPR for CFPS is 21% with 5 year coverage at 25%. The DPR for Free Cash Flow for 2119 is 40% with 5 year coverage at 69%. Dividend Coverage Ratio for 2019 is 2.49 with 5 year ratio at 1.45.

Debt Ratios should be improved. The Long Term Debt/Market Cap Ratio is 0.64 for 2019 but is higher at 1.11 currently. Debt has increased by 18% and the stock price has fallen by 29%. It is too high, but we are also in a bear market. The Liquidity Ratio is high and good at 1.95. The Debt Ratio is lower than what I like at 1.39. I prefer this to be at 1.50. The Leverage and Debt/Equity Ratios are 3.93 and 2.89 and a little too high.

The Total Return per year is shown below for years of 5 to 26 to the end of 2019 in 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	9.98%	1.84%	-2.24%	4.07%
2009	10	13.99%	23.67%	18.75%	4.92%
2004	15		4.67%	2.85%	1.82%
1999	20		-3.34%	-4.39%	1.05%
1994	25		2.78%	1.62%	1.17%
1993	26		3.71%	2.50%	1.21%

The Total Return per year is shown below for years of 5 to 26 to the end of 2019 in 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	7.53%	-0.81%	-4.51%	3.70%
2009	10	10.26%	20.93%	16.31%	4.62%
2004	15		4.40%	2.57%	1.82%
1999	20		-2.77%	-3.84%	1.08%
1994	25		3.00%	1.95%	1.05%
1993	26		3.57%	2.55%	1.03%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 13.69, 17.31 and 20.88. The corresponding 10 year ratios are 11.80, 16.16 and 21.27. The corresponding historical ratios are 10.68, 15.79 and 21.26. The current P/E Ratio is 12.84 based on a stock price of $12.01, EPS of $0.94 ($0.69 US$). This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in CDN$.

I get a Graham Price of $11.20. The 10 year low, median, and high median Price/Graham Price Ratios are 1.19, 1.48 and 1.86. The current P/GP Ratio is 1.07 based on a stock price of $12.01. This stock price testing suggests that the stock price is relatively cheap. This testing is in CDN$.

I get a 10 year median Price/Book Value per Share Ratio of 3.28. The current P/B Ratio is 2.09 based on a stock price of $8.80, Book Value of $248M and a Book Value per Share of $4.20. The current ratio is 36% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$. You will get similar results in CDN$.

I get a 10 year median Price/Cash Flow per Share Ratio of 8.24. The current P/B Ratio is 4.66 based on a stock price of $8.80, Cash Flow per Share of $1.89 and a Cash Flow of $112M. The current ratio is 44% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$. You will get similar results in CDN$.

I get an historical median dividend yield of 3.55%. The current dividend yield is 6.66% based on dividends of $0.80 ($0.59 US$), and a stock price $12.01. The current dividend 88% above the historical median dividend. This stock price testing suggests that the stock price is relatively cheap. This testing is in CDN$.

I get a 10 year median dividend yield of 3.13%. The current dividend yield is 6.66% based on dividends of $0.80 ($0.59 US$), and a stock price $12.01. The current dividend 113% above the 10 year median dividend. This stock price testing suggests that the stock price is relatively cheap. This testing is in CDN$.

The 10 year median Price/Sales (Revenue) Ratio is 0.87. The current P/S Ratio is 0.49 based on 2020 Revenue estimate of $1064M, Revenue per Share of $18.03 and a stock price of $8.80. The current ratio is 44% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$. You will get similar results in CDN$.

Results of stock price testing is that the stock price is relatively cheap. The dividend yield tests are showing the stock as relatively cheap and this is confirmed by the P/S Ratio test. There is nothing wrong that I can see about any of the tests. However, I noted that all the estimate value (like Revenue, EPS, Cash Flow etc.) are lower than for 2019. However, the first quarterly values are the same as for 2019 or higher. For example, the Revenue estimate for 2020 is $1064M, a decrease of 8%, but the last 12 month Revenue is $1,160 an increase of $0.9% over Revenue for 2019.

Is it a good company at a reasonable price? The stock price is relatively cheap. They will probably do fine, but they do need to improve their Dividend Payout Ratios and their Debt Ratios. There are also reasons, like both DPR and Debt Ratios needing improvement is why it is cheap.

When I look at analysts’ recommendations, I find Buy (6) and Hold (2). The consensus would be a Buy. The 12 month stock price consensus is $13.87 ($10.23 US$). This implies a total return of 21.15% with 15.49% from capital gains and 6.66% from dividends. The total returns have been low for most periods. Maybe a look at a better stock in this area is wise.

Analyst on Stock Chase do not seem to be impressed with the company. Brian Pacampara on Motley Fool likes the high dividend on this stock. A writer on Simply Wall Street thinks the future looks bright for this company. A writer on Simply Wall Street looks at ownership. The Blogger Dividend Earner recently reviewed this stock.

Intertape Polymer Group Inc manufactures and sells a variety of packaging products. The firm's primary product categories include tapes, films, and woven coated fabrics. The majority of revenue comes from the United States. Its web site is here Intertape Polymer Group Inc.

The last stock I wrote about was about was Waste Connections Inc (TSX-WCN, NYSE-WCN) ... learn more. The next stock I will write about will be Algonquin Power & Utilities Corp (TSX-AQN, NTSE-AQN) ... learn more on Friday, June 19, 2020 around 5 pm. Tomorrow on my other blog I will write about Canadian Bank Dividends.... learn more on Thursday, June 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.

Waste Connections Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. The stock price is relatively expensive. The dividend yield is below 1%, so extremely low. This will not change in the short term, at least. There are probably better stocks to buy at this time. See my spreadsheet on Waste Connections Inc.

I do not own this stock of Waste Connections Inc (TSX-WCN, NYSE-WCN), but I used too. I first bought this stock in 2007 because TD Securities had a very favorable report on this stock and had it on its action buy lists. At that time, it was BFI Canada Income Fund. In 2010, I needed to buy something for Pension Account. I have this already and it is on TD Action Buy List. I sold when it became the target of a reverse takeover by an American company.

When I was updating my spreadsheet, I noticed Revenue has grown well, but Revenue per Share has not. For example, Revenue for the past 5 and 10 years has grown at 21.8% and 18.3% per year. Revenue per Share is down over the past 5 and 10 years by 11.2% and 2.1% per year. These are in US$. As a shareholder, the Revenue per Share is the important growth. Growth in outstanding shares over past 5 and 10 years is 37% and 20.9% per year. Revenue per Share declined and Outstanding Shares increased because of the merger of BFI and WCN.

The dividend yields are low with dividend growth good lately. It started to pay dividends in US$ in 2017. The current dividends yield low (below 2%) at 0.82%. The 5, 10 and historical dividend yields are also low at 0.85%, 1.05% and 1.25%. It used to be an income trust and when they changed to a corporation, they lowered their dividends. Also, on the transition to US$ dividends and the takeover, dividends were lowered slightly. They seem to back to a dividend growth company. The last increase was for 15.6% and it occurred this year.

The Dividend Payout Ratios (DPR) are good. The DPR for EPS for 2019 is 31% with 5 year coverage at 27%. The DPR for CFPS for 2019 is 12% with 5 year coverage at 11%. The DPR for Free Cash Flow for 2019 20% with 5 year coverage at 19%. Dividend Coverage Ratio for 2019 is 5.00 and for the past 5 year is 5.32.

Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2019 is 0.18 with a current one at 0.22. This is good and low. The Liquidity Ratio is low at 1.12 and better at 2.48 when you added cash flow after dividends. The Debt Ratio is good at 2.02. Leverage and Debt/Equity Ratios are good at 1.98 and 0.98 for 2019.

The Total Return per year is shown below for years of 5 to 18 to the end of 2019 in 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	16.26%	20.49%	19.52%	0.97%
2009	10	3.52%	18.62%	17.57%	1.04%
2004	15	-0.17%	10.05%	8.66%	1.39%
2001	18	2.73%	15.30%	12.64%	2.66%

The Total Return per year is shown below for years of 5 to 17 to the end of 2019 in 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	13.66%	17.75%	16.87%	0.88%
2009	10	1.34%	16.17%	15.13%	1.04%
2004	15	-0.68%	9.82%	8.29%	1.54%
2002	17	3.92%	14.91%	12.18%	2.73%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 29.32, 33.50 and 37.68. The corresponding 10 year ratios are 16.04, 19.10 and 22.15. The corresponding historical ratios are 16.04, 19.65 and 25.67. The current P/E Ratio is 46.87 based on a stock price $122.34 and 2020 EPS estimate of $2.61 ($1.92 US$). This stock price testing suggests that the stock price is relatively expensive. This is in CDN$.

I get a Graham Price of $44.99. The 10 year low, median, and high median Price/Graham Price Ratios are 1.03, 1.19 and 1.37. The current P/GP Ratio is 2.72 based on a stock price of $122.34. This stock price testing suggests that the stock price is relatively expensive. This is in CDN$.

I get a 10 year median Price/Book Value per Share Ratio of 1.80. The current P/B Ratio is 3.56 based on a stock price of $90.21, Book Value of $6,682M and Book Value per Share of $25.35. The current ratio is 98% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This is in US$. You will get a similar result in CDN$.

I get a 10 year median Price/Cash Flow per Share Ratio of 6.16. The current P/CF Ratio is 17.05 based on a stock price of $90.21, Cash Flow per Share estimate of $5.29 and Cash Flow of $1,395M. The current ratio is 177% above the 10 year median. This stock price testing suggests that the stock price is relatively expensive. This is in US$. You will get a similar result in CDN$.

I get an historical median dividend yield of 1.25%. The current dividend yield is 0.82% based on dividends of $1.01 ($0.74 US$). The current ratio is 34% below the historical median ratio. This stock price testing suggests that the stock price is relatively expensive. This is in CDN$.

I get a 10 year median dividend yield of 1.02%. The current dividend yield is 0.82% based on dividends of $0.74 and a stock price of $90.21. The current ratio is 20% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This is in US$. You will get a similar result in CDN$.

The 10 year median Price/Sales (Revenue) Ratio is 1.30. The current P/S Ratio is 4.48 based on 2020 Revenue estimate of $5,312M, Revenue per Share of $20.15 and a stock price of $90.21. The current ratio is 244% above the 10 year ratio. This stock price testing suggests that the stock price is relatively expensive. This is in US$. You will get a similar result in CDN$.

Results of stock price testing is that the stock price is probably expensive. Both the historical and 10 year median dividend yield tests say this and it is confirmed by the P/S Ratio test. The other tests are showing the same results. I do not see any problems with any of the tests.

Is it a good company at a reasonable price? It would appear that the stock price is relatively expensive. Revenue per Share and Cash Flow per Share decreased a lot and number of shares increase a lot at the merger. Revenue per Share and CFPS have been increasing over the past 3 years. EPS has been increasing. One problem I see is the very low dividend yield. I do not buy companies with a yield below 1%. Since the stock is relatively expensive and the dividend yield very low, there are probably better companies to buy at this time.

When I look at analysts’ recommendations, I find Strong Buy (11), Buy (3), Hold (4) and Sell (1). The consensus would be a Buy. The 12 month stock price is $138.12 ($101.59 US$). This implies a total return of 13.72% with 12.90% from capital gains and 0.82% from dividends.

Analyst on Stock Chase mostly like this stock. Adam Othman Motley Fool thinks this is a recession resistant stock. A write on Simply Wall Street is unimpressed with the company’s ROCE. A writer on Simply Wall Street talks about insider selling. RBC analysts via Investing.com maintains a buy rating on this stock.

Waste Connections is the third- largest integrated provider of traditional solid waste and recycling services in the North America, operating 86 active landfills, 124 transfer stations, and 66 recycling operations. The firm serves residential, commercial, industrial, and energy end markets. Its web site is here Waste Connections Inc.

The last stock I wrote about was about was Lassonde Industries (TSX-LAS.A, OTC-LSDAF) ... learn more. The next stock I will write about will be Intertape Polymer Group Inc (TSX-ITP, OTC-ITPOF) ... learn more on Wednesday, June 17, 2020 around 5 pm. Tomorrow on my other blog I will write about Women Investors.... learn more on June 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.

Lassonde Industries Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. Stock price is reasonable and below the median. Debt Ratios are good. Dividend Payout Ratios, but dividend yields are low. See my spreadsheet on Lassonde Industries.

I do not own this stock of Lassonde Industries Inc (TSX-LAS.A, OTC-LSDAF). Although this stock is not on the Investment Reporter list, MPL communications does write about this stock. It has been covered several times in their Advice Hotline emails in 2010. Reports have been favorable and they suggest buying it for dividends and long term capital gains.

When I was updating my spreadsheet, I noticed this stock has quite good debt ratios. The Debt Ratio is 2.28. The Leverage and Debt/Equity Ratios are 1.78 and 0.78. Because both the dividend yield and dividend growth are low, it takes a long time to increase significantly the yield on the original stock price. After 5, 10, 15 and 20 years the yield on the original price is 1.73%, 4.75% 7.80% and 19.58% using past data to date.

The dividend yields are low with dividend growth moderate. The current dividend is low (under 2%) at 1.58%. The 5, 10 and historical dividend yields are also low at 1.11%, 1.39% and 1.72%. The dividends growth has varied over time. Last year the dividend was decreased by 26.5%, but it was increased this year by 9.2%. See chart below showing Dividend Growth.

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 is 10% with 5 year coverage also at 10%. The DPR for Free Cash Flow is 18% with 5 year coverage at 11%. The Dividend Coverage Ratio for 2019 is 5.59 and 9.46 for last 5 years.

Debt Ratios are good. The Long Term Debt/Market Cap Ratio is 0.23 for 2019 but higher and still good at 0.34 currently due to an increase in debt. Market Cap has increased. The Liquidity Ratio for 2019 is 1.64 with 5 year median at 1.70. The Debt Ratio for 2019 is 2.28 with 5 year median at 2.21. The Leverage and Debt/Equity Ratios for 2019 are 1.78 and 0.78 with 5 year medians at 2.00 and 1.00.

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	10.29%	5.28%	3.64%	1.63%
2009	10	-0.11%	13.37%	11.36%	2.01%
2004	15	11.60%	14.02%	12.02%	2.00%
1999	20	11.78%	14.66%	12.48%	2.05%
1994	25	11.02%	13.03%	11.18%	1.85%
1990	29	10.46%	14.81%	12.48%	2.33%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 15.79, 18.10 and 20.37. The corresponding 10 year ratios are 15.26, 17.59 and 19.93. The corresponding historical ratios are 11.64, 13.18 and 15.93. The current P/E Raito is 15.55 based on a stock price of $164.83 and 2020 EPS estimate of $10.60. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $160.09. The 10 year low, median, and high median Price/Graham Price Ratios are 1.07, 1.24 ad 1.40. The current P/GP Ratio is 1.03 based on a stock price of $164.83. 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 1.95. The current P/B Ratio is 1.53 based on a stock price of $164.83, Book Value of $742M, and Book Value per Share of $107.46. The current ratio is 21% below the 10 year median 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 8.89. The current ratio is 7.80 based on the last 12 month Cash Flow $146M, Cash Flow per share of $21.14, and a stock price of $164.83. The current ratio is 12% 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 1.72%. The current dividend yield is 1.58% based on dividends of $2.60 and a stock price of $164.83. The current yield is 8% 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 1.39%. The current dividend yield is 1.58% based on dividends of $2.60 and a stock price of $164.83. The current yield is 13% above the historical 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 0.71. The current P/S Ratio is 0.59 based on a stock price of $164.83, Revenue estimate for 2020 of $1,921M, and Revenue per Share of 278.05. The current ratio is 16% 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 probably reasonable and below the median. Both dividend yield tests show that the stock is reasonable with one above the median and the other below the median. The P/S Ratio test shows that the stock price is reasonable and below the median. The P/B Ratio is showing the stock price is cheap, because there is good growth in the Book Value and this is definitely a positive. There are no problems with any of the tests.

Is it a good company at a reasonable price? I think that the price is reasonable. This is a good company and it has mostly done a good job for its shareholders. You would buy to diversify into a consumer staple. It would be a good stock to build a portfolio with because of the low dividends.

When I look at analysts’ recommendations, I find Buy (1) and Hold (1). The consensus would be a Buy. The 12 month stock price consensus is $175.00. This implies a total return of 7.755 with 6.17% from capital gains and 1.58% from dividends.

There are no recent comments on this company on Stock Chase but what is there is positive. Brian Pacampara, of Motley Fool likes this small cap. A writer on Simply Wall Street likes the low payout ratio, but not the fact that dividends were cut during the past 10 years. A writer on Simply Wall Street says the latest growth in earnings shows the company is growing faster than in the past. The blogger Dividend Earner wrote about this stock last year and was upset about the dividend cut.

Lassonde Industries Inc is engaged in the development, manufacturing, and marketing of ready-to-drink fruit and vegetable juices and drinks. It also acts as a producer of store brand shelf-stable fruit juices and drinks in the United States and a major producer of cranberry sauces. It earns the majority of the revenue in the United States. Its web site is here Lassonde Industries.

The last stock I wrote about was about was Goeasy Ltd (TSX-GSY, OTC-EHMEF) ... learn more. The next stock I will write about will be Waste Connections Inc (TSX-WCN, NYSE-WCN) ... learn more on Monday, June 15, 2020 around 5 pm.

Also, on my book blog I have put a review of the book A Brief History of Doom by Richard Vague 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.

Goeasy Ltd

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. The stock price is probably relatively expensive. I do not like most of the debt ratios. They are giving out a lot of stock options. See my spreadsheet on Goeasy Ltd.

I do not own this stock of Goeasy Ltd (TSX-GSY, OTC-EHMEF). I would not buy this company. There are complains about this company charging interest rates around the legal limit which is 60%. They may go over because of fees. Also, there are comments about how much it charges for people to buy from them on the installment plan. For example, their SAMSUNG 58'' 4K UHD TV is listed at $25 per months for 156 months. This is $3900.00. The Best Buy have it for $699.99. I check this online on June 09, 2020.

When I was updating my spreadsheet, I noticed that I still do not like their debt situation. The Long Term Debt/Market Cap for 2019 is ok at 0.70, but the current one is 0.94 and so is getting rather high. The Debt Ratio is low at 1.34. The Leverage and Debt/Equity Ratios are too high at 4.01 and 3.00.

Stock options are much to high. The increase in Outstanding Shares for 2020 is 2.57%. The 5 year median increase in shares for stock options is 1.72. What you would expect is an increase no greater than 0.50% on average.

The dividend yields are moderate with dividend growth high. The dividend yields from this stock is moderate (2% to 4% ranges) with the current 3.14% and 5, 10 and historical dividend yields at 2.07%, 2.21% and 2.17%. The last 5 dividend increases have been the high range (15% and above). The last dividend increase was for this year at 45.2%. See chart below on Dividend Growth over the years.

The Dividend Payout Ratios (DPR) are fine except for FCF. The DPR for 2019 for EPS is 28% with 5 year coverage at 25%. The DPR for Cash Flow for 219 is 5% with 5 year coverage at 5% also. The DPR for Free Cash Flow for 2019 is negative as is the 5 year coverage so this cannot be calculated. There is some differences in FCF from different sources, but both agree FCF is and has been negative.

Debt Ratios should be improved. The Long Term Debt/Market Cap Ratio for 2019 is 0.70 and the current on is 0.94. The current one is too high and it high because of the drop in the stock price and an increase in debt by 10%. The Liquidity Ratio for 2019 is very good at 3.20, but in the first quarter it is 1.58, which is still a good value. The Debt Ratio is an important one and it is low at 1.34 with 5 year median at 1.44. The current one is only a bit lower at 1.33. The Leverage and Debt/Equity Ratios are too high at 4.01 and 3.00 respectively. They are often too high with the 5 year medians at 3.33 and 2.32.

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	26.26%	30.22%	28.23%	1.99%
2009	10	12.36%	25.77%	23.39%	2.38%
2004	15	14.20%	13.47%	12.02%	1.45%
1999	20		11.19%	10.00%	1.19%
1995	24		5.96%	5.40%	0.55%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 8.85, 11.97 and 14.51. The corresponding 10 year ratios are 8.80, 11.76 and 14.78. The corresponding historical ratios are 9.44, 13.37 and 17.36. The current P/E Ratio is 11.31 based on a stock price of $57.36 and 2020 EPS estimate of 5.07. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $52.49. The 10 year low, median, and high median Price/Graham Price Ratios are 0.65, 0.85 and 1.07. The current P/GP Ratio is 1.09 based on a stock price of $57.36. 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 1.44. The current P/B Ratio is 2.37 based on a stock price of $57.36, Book Value of $347M, and Book Value per Share of $2.37. The current ratio is 64% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year median Price/Cash Flow per Share Ratio of 2.11. The current P/CF Ratio is 2.47 based on a stock price of $57.36, last 12 month Cash Flow (excluding WC) of $333M and Cash Flow per Share of $23.21. The current ratio is 17% above the 10 year median. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get an historical median dividend yield of 2.17. The current dividend yield is 3.14% base on dividends of 1.80% and a stock price of $57.36. The current dividend yield is 45% 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 2.21. The current dividend yield is 3.14% base on dividends of 1.80% and a stock price of $57.36. The current dividend yield is 42% 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 0.83. The current P/S Ratio is 1.28 based on 2020 Revenue estimate of $642M, Revenue per Share of $35.70 and a stock price of $57.36. The current ratio is 55% 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 expensive. I know that the dividend yield test is showing the stock as cheap, but dividends are rising (5 year, 26.3% per year) faster than both EPS (5 year, 24% per year) and Revenue (5 year, 16.9% per year). The P/S Ratio test shows the stock price is relatively expensive. The Revenue estimates are probably reasonable.

Why the P/B Ratio tests say that the stock is showing the stock as expensive is because the book value is not growing as fast as the earnings. 5 year EPS growth is 24% per year, but 5 year Book Value per Share growth is 15% per year. Because the Graham Price includes both EPS and Book Value in its calculation, it is showing as expensive because of the Book Value part and lower growth in Book Value. However, the P/GP Ratios are low and a P/GP Price of 1.09 on an absolute basis is not high. There is nothing wrong with the P/CF Ratio test. It is showing as reasonable but above the median because the CF is growing, but not as fast as earnings.

Is it a good company at a reasonable price? First, I would not buy this stock because of the complaints against the company and I do not like investing in Pay Day type Loan companies as a way of making money. I am inclined to think that the stock price is relatively expensive, but I would be wrong. It is certainly not cheap.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (4) and Sell (1). The consensus would be a Buy. The 12 month stock price is $61.21. This implies a total return of 9.85%, with 6.71% from capital gains and 3.14% from dividend.

Some analysts on Stock Chase do not like their business. Adam Othman on Motley Fool likes this for a TFSA account as it has made a good recovery from the March lows. A writer on Simply Wall Street likes this company because dividend is well covered by earnings and it has been increasing nicely. A writer on Simply Wall Street talks about this stock’s beta and what it means. News on Reuters talks about National Bank raising the target price to $66 from $45 or this stock.

Goeasy Ltd provides financial services to own furniture, electronics, computers, and appliances. It offers merchandise leasing of household furnishings, appliances, and home electronic products to consumers under weekly or monthly leasing agreements. The company also offers unsecured installment loans to consumers. Its web site is here Goeasy Ltd.

The last stock I wrote about was about was Husky Energy Inc (TSX-HSE, OTC-HUSKF) ... learn more. The next stock I will write about will be Lassonde Industries (TSX-LAS.A, OTC-LSDAF) ... learn more on Friday, June12, 2020 around 5 pm. Tomorrow on my other blog I will write about Construction Stocks.... learn more on Thursday, June 11, 2020 around 5 pm.

Also, on my book blog I have put a review of the book Three Stones Make a Wall 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.

Husky Energy Inc

Sound bite for Twitter and StockTwits is: Dividend Paying Resource. The stock price is probably cheap. Dividends were recently cut by 90%, so management does not expect much in the short term. Poor record for dividend growth. See my spreadsheet on Husky Energy Inc .

I do not own this stock of Husky Energy Inc (TSX-HSE, OTC-HUSKF), but I used. I had been tracking this stock prior to buying it. I sold this stock to buy Canadian Utilities Ltd (TSX-CU, OTC-CDUAF). I gave up hoping for an oil and gas recovery. I never had much in oil and gas in any event. I had Husky from 2008 to 2017 and had a total loss of 4.53% per year.

When I was updating my spreadsheet, I noticed it did not come anywhere near the estimates given last year. However, this company is in the Oil and Gas sector and the bottom fell out of the market in this sector. There is only a bit of insider buying going on. The big cut in dividends shows that the company does not expect to do well in the short term.

The dividend yields are moderate with dividend growth varied. The current dividend yield is low (under 2%) at 0.85% because of recent dividend cut. It has not often been low. The 5 year dividend yield is just into the low range at 1.99%. The 10 and historical dividend yields are moderate (2% to 4% ranges) at 4.00% and 3.87%. Dividend have gone down as well as up and some years they were flat. Of The 18 years of dividend payments, 7 years saw dividend increases and 6 years saw dividend decreases.

The Dividend Payout Ratios (DPR) are generally not good. The Dividends have not always been well covered by DPR. I cannot calculate the coverage for 2019 nor for the last 5 years because of EPS losses. The DPR for CFPS for 2019 is low at 15% with 5 year coverage at 14%. The DPR for Free Cash Flow for 2019 cannot be calculated before of negative FCF. The 5 year coverage is very high at 92%.

Debt Ratios are probably fine. The Long Term Debt/Market Cap Ratio for 2019 is fine at 0.44. However, it rises to 1.02 because the stock price has fallen some 49% this year. The Liquidity Ratio for 2019 is 1.07. When you add in Cash Flow after dividends it is good at 1.60. However, this ratio is much lower currently at 1.01 and when you add in estimated Cash Flow after dividends it is only 1.12. Of course, we really do not know how accurate the estimate is. Leverage and Debt/Equity Ratio for 2019 are good at 1.92 and 0.93. The current ones also are good at 1.93 and 0.93

The Total Return per year is shown below for years of 5 to 30 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	-16.06%	-15.35%	-17.64%	2.29%
2009	10	-9.78%	-5.95%	-10.06%	4.11%
2004	15	0.86%	5.65%	-3.26%	8.91%
1999	20	3.48%	12.82%	1.69%	11.12%
1994	25		4.56%	-1.05%	5.61%
1989	30		3.86%	-0.63%	4.49%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 9.56, 12.88 and 16.20. The corresponding 10 year ratios are 12.34, 14.71 and 17.21. The corresponding historical ratios are 9.64, 12.37 and 14.63. The current P/E Ratio is negative as is the one for 2021. The P/E Ratio for 2022 is 9.38 based on a stock price of $5.91 and EPS estimate for 2022 of $0.63. This testing suggests that the stock price is relatively cheap.

I estimate the Graham Price to be $14.66. The 10 year low, median, and high median Price/Graham Price Ratios are 0.73, 0.90 and 1.10. The current P/GP Ratio is 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 1.35. The current P/B Ratio is 0.39 based on a Book Value of $15,247M, Book Value per Share of $15.17 and a stock price of $5.91. The current ratio is 71% 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 is 5.05. The current P/CF Ratio is 10.55 based on 2020 Cash Flow per Share estimate of $0.56, Cash Flow of $563M and a stock price of $5.91. The current ratio is 109% above the 10 year ratio. This stock price testing suggests that the stock price is relatively expensive.

I get an historical median dividend yield of 3.87%. The current dividend yield is 0.85% based on dividends of $0.05 and a stock price of $5.91. The current dividend yield is 78% 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 4.00%. The current dividend yield is 0.85% based on dividends of $0.05 and a stock price of $5.91. The current dividend yield is 79% 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 1.16. The current P/S Ratio is 0.43 based on 2020 Revenue estimate of $13,838M, Revenue per Share of $13.82 and a stock price of $5.91. The current ratio is 63% 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 cheap. The best test is the P/S Ratio testing and this is showing the stock price as relatively cheap. The P/B Ratio testing also show the stock as relatively cheap and there is no problem with this test. I cannot use the dividend yield tests as there has recently been a big cut to the dividends.

The problem with the P/E testing is that the next two estimates are showing EPS losses and you cannot do any testing of the P/E Ratio with EPS losses. This is also the same with the Graham Price as it is hard to calculate with EPS losses. The problem with the P/CF Ratio test is that the CFPS estimate for 2020 is 81% below the CFPS for 2019. The P/CF Ratio for 2021 and 2022 are 3.00 and 1.66 respectively and would show the stock price as cheap.

Is it a good company at a reasonable price? I am not fond of resource stocks and have very little. This is a good size Canadian company. However, I do like good dividend payers. This company has over the past 18 years increased dividends 7 times, but have decreased them 6 times with other years of no changes. Not much good for a dividend paying stock. I would not buy again.

When I look at analysts’ recommendations, I find Buy (1), Hold (1), Underperform (3) and Sell (3). The consensus would be Underperform. The 12 month stock price consensus is $4.21. This implies a total loss of 27.92% with a capital loss of 28.76 and dividends of 0.85%.

Analysts on Stock Chase are lately negative on this company. Vineet Kulkarni on Motley Fool says although the stock is up from the March lows, the worse may not be over. A writer on Simply Wall Street reviews this stock. A writer on Simply Wall Street thinks the company has too much debt. Gabriel Friedman on Financial Post talks about oil prices going up last Friday.

Husky Energy is one of Canada's largest integrated energy companies, operating in western Canada, the United States, and the Asia-Pacific and Atlantic regions. Its web site is here Husky Energy Inc .

The last stock I wrote about was about was Maxar Technologies Ltd (TSX-MAXR, NYSE-MAXR) .... learn more. The next stock I will write about will be Goeasy Ltd (TSX-GSY, OTC-EHMEF) ... learn more on Wednesday, June 10, 2020 around 5 pm. Tomorrow on my other blog I will write about Buybacks.... learn more on Tuesday, June 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.

Maxar Technologies Ltd

Sound bite for Twitter and StockTwits is: Dividend Paying Tech. The stock price is relatively cheap. I do wonder how good the future will be or this stock. They need to improve their debt ratios. It is highly speculative. They have cut the dividend by 96%. This is not a good sign. See my spreadsheet on Maxar Technologies Ltd.

I do not own this stock of Maxar Technologies Ltd (TSX-MAXR, NYSE-MAXR). I read about this stock in MPL Communication's Advice Hotline dated October 10, 2012. CanTech like it in 2012. It is a Tech stock with dividends.

When I was updating my spreadsheet, I noticed that the Long Term Debt/Market Cap Ratio is very high at 3.11 for 2019 and currently at 3.24. The Intangible Assets/Market Cap Ratio for 2019 is 3.10 and currently at 3.25. When these ratios are over 1.00 it means that Long Term Debt and Intangible Assets are both higher than the current market cap of the stock. This is not a good situation.

Some debt ratios are improving from last year, but they are still awful. The Debt Ratio this year is 1.17 which is still too low but better than last year’s 1.15. The Leverage and Debt/Equity Ratios are very high at 6.68 and 5.78 but improved from last year’s 7.78 and 6.78.

The dividend yields are low with dividend growth non-existent. Dividends have been paid in US$ since 2019. The dividend yield is mostly always been low (under 2%) for this stock. The current dividend yield is 0.25%. This very low dividend yield is caused by a 96% decrease in dividends in 2019. Still the 5, 10 and historical dividend yields are low at 1.89%, 1.87% and 1.87%. Dividends started in 2012. There was only one dividend increase and it was in 2016.

The Dividend Payout Ratios (DPR) are currently good. The DPR for EPS for 2019 was 2.21%. The 5 year coverage cannot be calculated because of the huge EPS loss in 2018. The DPR for CFPS for 2019 is 0.53% with 5 year coverage at 15%. The DPR for Free Cash Flow for 2019 was 67% with 5 year coverage at 995%.

Debt Ratios could be improved. The Long Term Debt/Market Cap Ratio for 219 is 3.11 and is currently at 3.24. This means that the Long Term Debt is much higher than the market cap for this stock. This is because of the sharp drop in share price beginning in 2018. The Liquidity Ratio for 2019 is 1.27 and if you add in cash flow after dividends, it is 1.58. This is a good ratio. The Debt Ratio is quite low at 1.17 for 2019 and it has a 5 year median of 1.43. I prefer this to be at least at 1.50. The Leverage and Debt/Equity Ratios are much too high in 2019 at 6.78 and 5.78 respectively.

The Total Return per year is shown below for years of 5 to 19 to the end of 2019 in 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	-47.48%	-24.36%	-26.51%	2.14%
2009	10	-36.87%	-3.81%	-7.12%	3.30%
2004	15		0.86%	-1.84%	2.70%
2000	19		1.75%	-0.47%	2.21%

The Total Return per year is shown below for years of 5 to 17 to the end of 2019 in 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	-48.65%	-26.18%	-28.13%	1.95%
2009	10	-39.23%	-5.93%	-9.09%	3.16%
2004	15		0.83%	-2.02%	2.85%
2002	17		3.36%	0.56%	2.80%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 17.16, 20.92 and 24.68. The corresponding 10 year ratios are 17.97, 21.71 and 25.39. The corresponding historical ratios are 18.00, 21.71 and 25.39. The current P/E Ratio is negative, so this test cannot be done. The next positive P/E Ratio is for 2022 and is 13.31 based on EPS estimate for 2022 of $1.68 ($1.22 US$) and stock price of $22.38. This stock price testing suggests that the stock price is relatively cheap. This is in CDN$.

My best estimate for a Graham Price is $23.90. The 10 year low, median, and high median Price/Graham Price Ratios are 1.44, 1.86 and 2.19. The current P/GP Ratio is 0.94 based on a stock price of $22.38. This stock price testing suggests that the stock price is relatively cheap. This is in CDN$.

I get a 10 year median Price/Book Value per Share Ratio of 3.34. The current P/B Ratio is 1.51 based on Book Value of $656M, Book Value per Share of $10.95 and a stock price of $16.53. The current ratio is 55% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This is in US$ and you will get similar results in CDN$.

I get a 10 year median Price/Cash Flow per Share Ratio of 15.56. The current P/CF Ratio is 5.90 based on 2020 Cash Flow per Share of $2.80, Cash Flow of $168M and a stock price of $16.53. The current ratio is 62% below the 10 year median ratio. This is in US$ and you will get similar results in CDN$.

I get an historical median dividend yield of 1.87%. The current dividend yield is 0.25% based on Dividends of $0.06 CDN$ ($0.04 US$) and a stock price of $22.38. The current dividend yield is 87% below the historical dividend yield. This stock price testing suggests that the stock price is relatively expensive. This is in CDN$. Since dividend have only been paid for 7 years, a maximum median dividend yield would yield the same result.

The 10 year median Price/Sales (Revenue) Ratio is the 1.47. The current P/S Ratio is 0.58 based on 2020 Revenue estimate of $2,308M, Revenue per Share of $38.53 and a stock price of $22.38. The current ratio is 61% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This is in CDN$.

Results of stock price testing is that the stock price is probably relatively cheap. The best test of P/S Ratio points to that conclusion as does the P/GP Ratio, the P/B Ratio, and the P/CF Ratio tests. The dividend yield test is not much good because the dividends have been cut. Since there is no positive EPS expected this year and next, the P/E Ratio test is not much good.

Is it a good company at a reasonable price? You have to wonder about the future for this company. It is selling cheap but highly speculative. It would appear that management does not expect the near future to be good because it has cut is dividend. Insiders were buying last year, but this year they are doing nothing. Analysts does not expect positive earnings this year and next. So, it would appear that recovery will be not be soon.

When I look at analysts’ recommendations, I find Buy (3) and Hold (6). The consensus would be a Hold. The 12 month stock price is $15.50 US$ or $21.37 CDN$. This implies a total loss of 4.27% with a capital loss of 4.51% and dividends of 0.25%.

Analyst on Stock Chase talks about the mistakes this company has made. Vishesh Raisinghani on Motley Fool says it is time to take a look at this stock. A writer on Simply Wall Street thinks this company has a great future, is undervalued, but will have negative growth in the near future. There is a long announcement on Financial Post about this company’s first quarter of 2020. Denise Gardner on News Heater asks if is a good time to buy this stock. Jason Mann on CanTech says stay away from this firm.

Maxar Technologies Inc is an integrated space and geospatial intelligence company with a full range of space technology solutions for commercial and government customers including satellites, Earth imagery, geospatial data, and analytics. Its web site is here Maxar Technologies Ltd.

The last stock I wrote about was about was Ensign Energy Services (TSX-ESI, OTC-ESVIF) ... learn more. The next stock I will write about will be Husky Energy Inc (TSX-HSE, OTC-HUSKF) ... learn more on Monday, June 08, 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.

Ensign Energy Services

Yesterday afternoon, I bought a small number of shares in this company and in Hardwoods Distribution Inc (TSX-HDI, OTC-HDIUF). I am just fooling around. The stock market is not doing much. Ensign has tanked and Hardwoods is not doing too badly considering the economic climate.

Sound bite for Twitter and StockTwits is: Cheap Industrial Stock. The stock price is cheap. There is insider buying by Chair, CEO and CFO. They do have good cash flow, but debt is high. See my spreadsheet on Ensign Energy Services.

I used to own this stock of Ensign Energy Services (TSX-ESI, OTC-ESVIF) prior to yesterday. I bought this stock in June 2012. Stock is a good one and was rather cheap in June of 2012. I had been following this stock for some time. I sold this stock in December 2014 to buy Mullen instead. Details of why is in a December 2014 post. I know I would be selling Ensign at a loss, but I also could buy Mullen cheaply.

When I was updating my spreadsheet, I noticed there is both insider buying and institutional buying. There is insider buying by CEO CFO and Chairman.

The dividend yields were recently high with dividend growth non-existent. Recently the dividend yields were over 16% before the company suspended their dividends. There has been no growth in dividends since 2015. Dividends have been suspended this year.

The Dividend Payout Ratios (DPR) have been unaffordable for EPS but not bad in connection with CF or FCF. As far as EPS goes, the company could not afford paying dividends since 2014. The DPR for CFPS for 2019 was 22% with 5 year coverage at 35%. The DPR for Free Cash Flow for 2019 was 40% with 5 year coverage at 55%.

Debt Ratios are mostly fine. The Long Term Debt/Market Cap Ratio was over 1.00 in 2018 and up to 3.41 in 2019 and currently is at 14.03. When a stock price crashes you get this problem. The Liquidity Ratios have mostly been low and to get a decent ratio you needed to add in cash flow after dividends. However, the current ratio is good at 1.53, but the 5 year median is just 0.96. If you had in cash flow after dividend, it is 2.00 with a 5 year ratio of 1.21.

The Debt Ratio has been good with the one for 2019 at 1.73 and the 5 year median at 2.33. The Leverage and Debt/Equity Ratios were good until 2018, and then were higher but still fine in 2019. These ratios were 2.37 and 1.37 in 2019 with 5 year medians of 1.75 and 0.75.

The Total Return per year is shown below for years of 5 to 28 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%	-14.55%	-22.51%	7.96%
2009	10	3.43%	-8.79%	-15.30%	6.51%
2004	15	8.31%	-3.15%	-9.41%	6.26%
1999	20	9.58%	3.55%	-3.31%	6.87%
1994	25	15.03%	15.71%	5.03%	10.68%
1989	30		25.57%	10.67%	14.90%

The Total Return per year is shown below for years of 5 to 28 to the current date. It is surprising that it is not that much more awful in total return to the current date considering, the stock has tanked.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2014	5	0.42%	-24.20%	-37.22%	13.02%
2009	10	3.43%	-15.33%	-26.20%	10.87%
2004	15	8.31%	-11.80%	-20.73%	8.93%
1999	20	9.58%	-1.83%	-11.98%	10.15%
1994	25	15.03%	13.13%	-1.91%	15.04%
1989	30		25.34%	5.18%	20.16%

Results of stock price testing is that the stock price is probably cheap. Most of the testing points to that. The P/S Ratio is a good test and it points to the stock being relatively cheap. The P/B Ratio and the P/CF Ratio tests are good ones and they point to the stock as being relatively cheap. The P/GP Ratio also points to this, but I am using my best guess for a Graham Price, so this test can be questioned.

Is it a good company at a reasonable price? Probably not and buying this company at this point would be highly speculative. However, the price is cheap and I am betting that the company will not only survive, but come back as a viable company that will again pay dividends. Time will tell.

The 5 year low, median, and high median Price/Earnings per Share Ratios are all negative so cannot be used. The corresponding 10 year ratios are 9.20, 11.55 and 13.90. The corresponding historical ratios are 8.59, 12.36 and 16.62. The current P/E Ratio is negative, so this test cannot be done.

My best estimate for the Graham Price is $8.79. The 10 year low, median, and high median Price/Graham Price Ratios are 0.62, 0.78 and 0.97. The current P/GP Ratio is 0.08 based on a stock price of $0.72. This stock price testing suggests that the stock price is relatively reasonable cheap.

I get a 10 year median Price/Book Value per Share Ratio of 0.87. The current P/B Ratio is 0.08 based on a Book Value of $1,509M, Book Value per Share of $9.27 and a stock price of $0.72. The current ratio is 91% below the stock price. This stock price testing suggests that the stock price is relatively reasonable

I get a 10 year median Price/Cash Flow per Share Ratio of 5.91. The current P/CF Ratio is 1.11 based on Cash Flow per Share estimate for 2020 of $0.65, Cash Flow of $106M and a stock price of $0.72. The current ratio is 81% below the 10 year median ratio. Results of stock price testing is that the stock price is?

I cannot do an historical median or 10 year median dividend yield test since the company has suspended their dividends.

The 10 year median Price/Sales (Revenue) Ratio is 1.15. The current P/S Ratio is 0.11 based on 2020 Revenue estimate of $1,022M, Revenue per share of $6.28 and a stock price of $0.72. The current ratio is 90% below the 10 year median ratio. Results of stock price testing is that the stock price is?

When I look at analysts’ recommendations, I find Buy (1), Hold (8), Underperform (2) and Sell (1). The consensus would be a Hold. The 12 month stock price consensus is $0.71. This implies a total loss of 1.4% all from a capital loss.

There is one recent entry on Stock Chase and it is rather positive. Joey Frenette on Motley Fool thinks this stock is one to take a few nibbles on. A writer on Simply Wall Street talks about insider buying at this company. A writer on Simply Wall Street is uneasy about the debt level of this company. Dan Healing on Global News talks about the company’s first quarter of 2020. Bob Geddes, CEO on a call to discuss first-quarter results said he never imaged such problems as we are now having, but “Nonetheless, it is reality, we adjust and we figure it out.”

Ensign Energy Services Inc is a Canada-based oil services company. It offers services in drilling and well servicing, oil sands coring, directional drilling, underbalanced and managed pressure drilling, equipment rentals, transportation, wireline services, and production testing services. Its web site is here Ensign Energy Services.

The last stock I wrote about was about was Hardwoods Distribution Inc (TSX-HDI, OTC-HDIUF) ... learn more. The next stock I will write about will Maxar Technologies Ltd (TSX-MAXR, NYSE-MAXR) .... learn more on Friday, June 8, 2020 around 5 pm. Tomorrow on my other blog I will write about Something to Buy June 2020.... learn more on Thursday June 07 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.

Hardwoods Distribution Inc

Hardwoods Distribution IncSound bite for Twitter and StockTwits is: Dividend Growth Material. The stock price is relatively reasonable and below the median. The Dividend Payout Ratios are good. Debt has increased a lot lately. See my spreadsheet on Hardwoods Distribution Inc.

I do not own this stock of Hardwoods Distribution Inc (TSX-HDI, OTC-HDIUF). In April 2017, I asked for suggestions on what stocks I should now follow because of a number that I had followed had been bought out. This was one of the suggestions.

When I was updating my spreadsheet, I noticed there is a lot of insider buying. I looked at the Chairman, CEO and CFO and they all are buying. Debt has increased a lot lately.

The dividend yields are currently low to moderate with dividend growth moderate to good. This company used to be an income trust. Income trust have much higher dividend yields and can afford to payout more than corporations. When this stock changed to a corporation it suspended its dividend for a couple of years.

The current dividend yield is moderate (2% to 4% ranges) at 2.35%. The 5 and 10 year median dividend yields are low (below 2%) at 1.36% and 1.72%. The historical median dividend yield is moderate at 2.05%. When the dividends were restarted in 2010, the dividend increases were good (15% and over) until 2018 when they became lower and into the low range (Under 8%). The last dividend increase was for 2020 and it was for 6.25%.

The Dividend Payout Ratios (DPR) are good. The DPR for EPS for 2019 is 23% with 5 year coverage at 19%. The DPR for CFPS is 9% with 5 year coverage at 10%. The DPR for Free Cash Flow for 2019 was 8% with 5 year coverage at 17%. This is some agreement on Free Cash Flow for this company.

Debt Ratios are good but debt has recently increased a lot. Long Term Debt has recently increased a lot. However, the Long Term Debt/Market Cap Ratio is good at 0.24 with the current ratio at 0.28. The Liquidity Ratio for 2019 is 1.72 and it has always been good. The Debt Ratio for 2019 is 1.99 and this ratio has also always been good. The Leverage and Debt/Equity Ratio for 2019 is higher than it has ever been at 2.01 and 1.01 with the current ratios better at 1.96 and 0.96.

The Total Return per year is shown below for years of 5 to 15 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	13.49%	9.13%	7.19%	1.95%
2009	10	15.36%	26.20%	23.34%	2.85%
2004	15	-5.34%	5.07%	2.15%	2.92%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 9.73, 12.55 and 15.38. The corresponding 10 year ratios are 9.46, 12.26 and 14.68. The corresponding historical ratios are 8.86, 10.65 and 14.09. The current P/E Ratio is 23.31 based on a stock price of $14.45 and 2020 EPS estimate of $0.62. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $13.39. The 10 year low, median, and high median Price/Graham Price Ratios are 0.64, 0.82 and 1.04. The current P/GP Ratio is 1.08 based on a stock price of $14.45. 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 1.25. The current P/B Ratio is 1.12 based on a stock price of $14.45, Book Value per Share of $12.86, and a Book Value of $275M. The current ratio is 10% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year median Price/Cash Flow per Share Ratio of 16.73. The current P/CF Ratio is 3.83 based on a stock price of $14.45, Cash Flow for the last 12 months of $79.8M, Cash Flow per share of 3.77. The current ratio is 77% 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 2.05%. The current dividend yield is 2.35% based on dividends of $0.34 and a stock price of $14.45. The current dividend yield is 15% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year median dividend yield of 1.72%. The current dividend yield is 2.35% based on dividends of $0.34 and a stock price of $14.45. The current dividend yield is 37% 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 0.31. The current P/S Ratio is 0.26 based on a stock price of $14.45, Revenue estimate for 2020 of $1,164M and Revenue per Share of $55.04. 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 relatively reasonable and below the median. The historical dividend yield says that the stock price is reasonable and below the median and this is confirmed by the P/S Ratio testing. The 10 year median dividend yield test says the stock price is relatively cheap. The P/B Ratio test agrees with the P/S Ratio test and there is nothing wrong with this test.

The problem with the P/E Ratio test is that analyst expect a big drop in EPS for 2020. The P/E Ratio for 2020 and 2022 are 9.90 and 7.90 respectively. The big drop in EPS estimate for 2020 will also adversely affect the P/GP Test. The problem with the P/CF Ratio tests is that for 2019 there is a big change in Working Capital.

Is it a good company at a reasonable price? I do like this company. It is a dividend growth stock having increased their dividend every year for the past 8 years. The stock price seems to be reasonable.

When I look at analysts’ recommendations, I find Strong Buy (2), Buy (1) and Hold (2). The consensus would be a Buy. The 12 month stock price consensus would be $14.90. This implies a total return of 5.47% with 3.11% from capital gains and 2.35 from Dividends.

This stock is not well covered by Stock Chase but the entries are positive. Robin Brown on Motley Fool says that this little know stock is now a bargain. A writer on Simply Wall Street says that the higher than 1.00 beta score shows that this stock will rise quicker than the markets in times of optimism, but fall faster in times of pessimism . A writer on Simply Wall Street says that this company has been growing their dividends but has a low payout ratio and this makes it attractive. Ben Hobson reviews this stock for Stockopedia.

Hardwoods Distribution Inc is a Canadian company which operates a network of distribution centers in Canada and the US engaged in the wholesale distribution of hardwood lumber and related sheet goods and specialty products. Its web site is here Hardwoods Distribution Inc.

The last stock I wrote about was about was IA Financial Corp (TSX-IAG, OTC-IDLLF) ... learn more. The next stock I will write about will be Ensign Energy Services (TSX-ESI, OTC-ESVIF) ... learn more on Wednesday, June 06, 2020 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks June 2020.... learn more on Tuesday, June 05, 2020 around 5 pm.

Also, on my book blog I have put a review of the book Inheritors of the Earth by Chris Thomas learn more...

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