Andrew Peller Ltd

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. The stock price is probably currently on the expensive side. Shareholders have done well with this stock over time. Both the DPRs and the Debt Ratios are fine. EPS growing faster than Revenue. See my spreadsheet on Andrew Peller Ltd.

I do not own this stock of Andrew Peller Ltd (TSX-ADW.A, OTC-ADWPF). This stock was on Mike Higgs' dividend growth stock list. I owned this stock as Andres Wines Ltd between 1996 and 2000.

When I was updating my spreadsheet, I noticed that EPS was growing faster than Revenue over the past 5 years. EPS has grown at 7.87% per year while Revenue per Share has grown at 3.57% per year. Dividends has grown even faster at 9.51% per year over the past 5 years. However, the last dividend increase was lower at 5%. Shareholders have done well with this stock over the years. See chart below.

The dividend yields are currently moderate with dividend growth low. The current dividend yield is moderate (2% to 4% range) at 2.36%. The 5 year median dividend yield is low (below 2%) at 1.50%. The 10 year and historical median dividend yields are moderate at 2.39% and 3.60%. The dividend growth was lower (below 8%) until the last 5 years when dividend grow was moderate (8% to 14% ranges) at 9.51% per year. However, the last dividend increase was low at 5%.

The Dividend Payout Ratios (DPR) are fine. The DPR for EPS for 2020 is 39% with 5 year coverage at 31%. The DPR for CFPS for 2020 is 15% with 5 year coverage at 13%. The DPR for Free Cash Flow for 2020 is high at 111%, but 5 year coverage is good at 73%. Dividend Coverage Ratio for 2020 is 0.90 with the 5 year ratio at 1.36%. (Note: WSJ gives a higher FCF for 2020 and therefore a much better DPR for 2020.)

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2020 is good at 0.27. The Liquidity Ratio at 1.64 and the Debt Ratio at 1.91 for 2020 are good. The Leverage and Debt/Equity Ratios at 2.09 and 1.09 are fine.

The Total Return per year is shown below for years of 5 to 35 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	9.51%	21.18%	18.65%	2.53%
2009	10	6.81%	19.33%	16.34%	2.99%
2004	15	7.52%	11.51%	9.29%	2.22%
1999	20	5.59%	13.47%	10.60%	2.87%
1994	25	4.76%	12.33%	9.31%	3.02%
1989	30	3.95%	13.14%	7.61%	5.54%
1984	35	3.70%	10.21%	6.53%	3.68%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 13.41, 18.90 and 26.44. The corresponding 10 year ratios are 11.21, 14.69 and 17.09. The corresponding historical ratios are 11.07, 13.04 and 14.49. The current P/E Ratio is 13.79 based on a stock price of $9.10 and 2021 EPS estimate of $0.66. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $9.29. The 10 year low, median, and high median Price/Graham Price Ratios are 0.79, 1.06 and 1.29. The current P/GP Ratio is 0.98 based on a stock price of $9.10. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year median Price/Book Value per Share Ratio of 1.64. The current P/B Ratio is 1.56 based on a Book Value of $253.6M, Book Value per Share of $5.82 and a stock price of $9.10. The current ratio is 5% 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 14.04. The current P/CF Ratio is 10.29 based on the last 12 months Cash Flow of $38.6M, Cash Flow per Share of $0.88 and a stock price of $9.10. The current P/CF Ratio is 27% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get an historical median dividend yield of 3.60%. The current dividend yield is 2.36% based on dividends of $0.215 and a stock price of $9.10. The current dividend yield is 34% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 median dividend yield of 2.39%. The current dividend yield is 2.36% based on dividends of $0.215 and a stock price of $9.10. The current dividend yield is 1% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.

The 10 year median Price/Sales (Revenue) Ratio is 0.81. The current P/S Ratio is 1.08 based on 2021 Revenue estimate of $369M, Revenue per Share of $8.46 and a stock price of 9.10. The current ratio is 32% 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 historical dividend yield test says that the stock price is relatively expensive and this is confirmed by the P/S Ratio test. The 10 year test shows the stock price as reasonable but above the median (or really close to the median). A number of tests show that the stock is reasonable and below the median. There is really nothing wrong with these tests.

The problem with the P/S Ratio test is that Sales are expected to drop some 4% in 2021, but then pick up about 4% in 2022. However, it is the Sales that drives other values in the long term and I tend to like the P/S Ratio test.

Is it a good company at a reasonable price? This stock has done well over the years for shareholders and it is growing its dividend. The dividend this year is lower than it has been, but it did grow. It is probably currently on the expensive side, but this is still a good company and a dividend growth stock.

When I look at analysts’ recommendations, I find Strong Buy (2) and Buy (1). The consensus would be a Strong Buy. The 12 month stock price consensus is $14.83. This implies a total return of 65.33% with 62.97% from capital gains and 2.36% from dividends.

There are not many entries on Stock Chase, but the ones there are positive. Daniel Da Costa on Motley Fool says this stock is an undervalued growth stock. A writer on Simply Wall Street says the company’s Net Income growth is higher than its industry’s average. A writer on Simply Wall Street says the fair value for this stock is $9.98. The blogger Dividend Earner has done a recent review of this stock.

Andrew Peller Ltd is a wine producing company. It is engaged in the production and marketing of wine and spirit products in Canada. Its web site is here Andrew Peller Ltd.

The last stock I wrote about was about was BlackBerry Ltd (TSX-BB, NASDAQ-BBRY) ... learn more. The next stock I will write about will be Evertz Technologies (TSX-ET, OTC-EVTZF) ... learn more on Wednesday, August 12, 2020 around 5 pm. Tomorrow on my other blog I will write about Why Dividend Stocks.... learn more on Tuesday, August 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. The last stock I wrote about was about was BlackBerry Ltd (TSX-BB, NASDAQ-BBRY) ... learn more. The next stock I will write about will be Evertz Technologies (TSX-ET, OTC-EVTZF) ... learn more on Wednesday, August 12, 2020 around 5 pm. Tomorrow on my other blog I will write about Why Dividend Stocks.... learn more on Tuesday, August 11, 2020 around 5 pm.

BlackBerry Ltd

Sound bite for Twitter and StockTwits is: Canadian Tech Stock. Stock price would seem to be on the relatively expensive side. Only the P/B Ratio test show stock as relatively cheap. They currently cannot earn a profit and now expected anytime soon. There is currently no long term debt, but Liquidity Ratio is very low. The CEO and CFO has bought shares over the past year. See my spreadsheet on BlackBerry Ltd.

I do not own this stock of BlackBerry Ltd (TSX-BB, NYSE-BB). I bought this stock for capital gain. I first bought it in 1999 and then some more in 2000. I sold some in 2006 and 2007 to lock in some profit. I sold the rest of my stock in 2010.

When I was updating my spreadsheet, I noticed they still cannot earn a profit. Analysts do not expect any over the next two years either. Cash flow growth is negative as is Revenue growth. This is true for the last 5 years. There seems to be lots of insider selling, but it is just people getting rid of options. V. Prem Watsa is still involved and still have shares in this company.

The stock has never paid a dividend, so dividend yield information and Dividend Payout Ratios do not apply.

Debt Ratios are good except for the Liquidity Ratio. They currently have no long term debt, so Long Term Debt/Market Cap Ratio is 0.00. The Liquidity Ratio for 2019 is 1.07, even adding in cash flow, the ratio is only 1.09. This is quite low. The Debt Ratio is good at 2.86. The Leverage and Debt/Equity Ratios for 2019 are 1.54 and 0.54 and these are good.

The Total Return per year is shown below for years of 5 to 22 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	0.00%	-8.10%	-8.10%	0.00%
2009	10	0.00%	-19.27%	-19.27%	0.00%
2004	15	0.00%	-8.74%	-8.74%	0.00%
1999	20	0.00%	-1.42%	-1.42%	0.00%
1997	22	0.00%	9.34%	9.34%	0.00%

The Total Return per year is shown below for years of 5 to 22 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	0.00%	-10.18%	-10.18%	0.00%
2009	10	0.00%	-20.97%	-20.97%	0.00%
2004	15	0.00%	-9.24%	-9.24%	0.00%
1999	20	0.00%	-0.90%	-0.90%	0.00%
1997	22	0.00%	9.00%	9.00%	0.00%

The 5 year low, median, and high median Price/Earnings per Share Ratios are negative. The corresponding 10 year ratios are also negative. The corresponding historical ratios are 9.80, 16.77 and 25.54. The current P/S Ratio for 2021 is negative. With negative P/E Ratios, this test cannot be done.

My best guess for a Graham Price is $4.62. The 10 year low, median, and high median Price/Graham Price Ratios are 0.70, 1.03 and 1.34. The current P/GP Ratio is 1.41 based on a stock price of $6.52. This stock price testing suggests that the stock price is relatively expensive. This test is in CDN$.

I get a 10 year median Price/Book Value per Share Ratio of 1.74. The current P/B Ratio is 1.41 based on a Book Value of $1,915M, Book Value per Share of $3.44, and a stock price of $4.87. The current P/B Ratio is 19% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This test is in US$. You will get similar results in CDN$.

I get a 10 year median Price/Cash Flow per Share Ratio of 7.33. The current P/CF Ratio is 34.79 based on Cash Flow per Share estimate for 2021 of $0.14, Cash Flow of $78M and a stock price of $4.87. The current ratio is 375% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This test is in US$. You will get similar results in CDN$.

I cannot do any dividend yield test as this stock has never paid and currently does not pay any dividend.

The 10 year median Price/Sales (Revenue) Ratio is 1.71. The current P/S Ratio is 2.83 based on Revenue estimates for 2021 of $955M, Revenue per Share of $1.72 and a stock price of $4.87. The current ratio is 66% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This test is in US$. You will get similar results in CDN$.

Results of stock price testing is that the stock price is probably relatively expensive. It is showing as cheap using the Price/Book Value Ratio, but others show differently. I think that the P/S Ratio test is a good one and it is showing as relatively expensive. It is sales, after all that run everything else.

Is it a good company at a reasonable price? This stock has not really done much since 2012. It is hard to know if the company as a software company will do good things or not. At the moment I would not be interested in this stock.

When I look at analysts’ recommendations, I find Buy (1), Hold (11) and Sell (1). The consensus would be a Hold. The 12 month stock price consensus would be $7.41 ($5.53 US$). This suggests a total return of 13.69% all from capital gains.

A number of analysts on Stock Chase feel that there are better tech companies to buy. Ryan Vanzo on Motley Fool is very positive about this stock because Vodafone Group has chosen BB for it security system. A writer on Simply Wall Street talks about a negative revision to this company’s forecast. A writer on Simply Wall Street says this stock’s intrinsic value is $9.82 CDN$. Chris MacDonald on Bay Street is rather negative about this stock.

BlackBerry, once known for being the world's largest smartphone manufacturer, is now exclusively a software provider with a stated goal of end-to-end secure communication for enterprises. The firm provides endpoint management and protection to enterprises and embedded software to automotive, medical, and industrial OEMs and suppliers. Its web site is here BlackBerry Ltd.

The last stock I wrote about was about was Stingray Digital Group Inc (TSX-RAY.A, OTC-NONE) ... learn more. The next stock I will write about will be Andrew Peller Ltd (TSX-ADW.A, OTC-ADWPF) ... learn more on Monday, August 10, 2020 around 5 pm.

Note: I am dropping Onex Corp (TSX-ONEX, OTC-ONEXF). I am never going to rebuy this stock and the accounting is complex, hard to follow and there is a disconnect in the accounting statements between 2018 and 2019.

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.

Stingray Digital Group Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. The stock price is relatively cheap. It is getting attention from analysts. Debt Ratios could be improved, but are just below what I like so not a big concern at the present. The Dividend Payout Ratio for EPS is too high, but the other DPRs are good. See my spreadsheet on Stingray Digital Group Inc.

I own this stock of Stingray Digital Group Inc (TSX-RAY.A, OTC-NONE). I was following Newfoundland Capital Corp and Stingray Bought them out. Also, I read the blub on CEO, Eric Boyko. The site says he is an entrepreneur with nearly two decades of experience with start-ups, Mr. Boyko has extensive expertise in early stage business innovations.

When I was updating my spreadsheet, I noticed that there was a lot more estimates (for Revenue, Earnings etc.) that in prior years. This means that analysts are taking notice of this stock. There is a lot of insider buying this year. A lot of this occurred under $6.00 to $3.52 at the bottom in March. This last insider buying at $3.77. These also has been a big increase in share outstanding and they have increased by 16.7% and 14.5% over the past 5 and 6 years.

The dividend yields are mostly moderate with dividend growth also good. The current dividend yield is good (6% and above) at 6.11%. However, this is because the stock price has plunged. Prior to the current time the dividend was mostly in the low (under 2%) to moderate (2% to 4% ranges). The 4 year and historical median dividend yield is moderate at 2.22%. The last dividend increase was low (below 8%) at 7.1%. Previous dividend increases were higher. See the chart below.

The Dividend Payout Ratios (DPR) for EPS is too high with other coverage good. The DPR for EPS for 2019 is too high at 156% with 5 year coverage at 183%. The DPR for CFPS for 2019 are good at 23% and 5 year coverage at 27%. The DPR for Free Cash Flow are also good 33% with 5 year coverage at 44%. Dividend Coverage Ratio for 2019 is good at 3.02 and 5 year coverage at 2.28.

Debt Ratios need improving. The Long Term Debt/Market Cap Ratio for 2019 is too high at 1.05, but it is better currently at 0.86. The Liquidity Ratio for 2019 is low at 0.86, but if you add in cash flow after dividends it is good better at 1.42. The Debt Ratio is too low at 1.46. I prefer both the Liquidity Ratio and Debt Ratio to be 1.50 and above. Leverage and Debt/Equity Ratios are too high at 3.17 and 2.17. I prefer these to be under 3.00 and under 2.00, respectively.

The Total Return per year is shown below for years of 4 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.
2016	4	22.34%	7.03%	3.72%	3.31%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 21.38, 24.91 and 42.67. The corresponding historical ratios are 21.38, 241.91 and 42.67. The current P/E Ratio is 9.63 based on a stock price of $4.91 and an EPS estimate for 2021 of $0.51. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $6.34. The 5 year low, median, and high median Price/Graham Price Ratios are 2.04, 2.39 and 2.73. The current P/GP Ratio is 0.75 based on a stock price of $4.91. This stock price testing suggests that the stock price is relatively cheap.

I get a 5 year median Price/Book Value per Share Ratio of 3.09. The current P/B Ratio is 1.32 based on a Book Value of $273.9M, Book Value per Share of $3.72 and a stock price of $4.91. The current ratio is 57% below the 5 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get a 5 year median Price/Cash Flow per Share Ratio of 14.19. The current P/CF Ratio is 4.02 based on Cash Flow per Share estimate for 2021 of $1.22, Cash Flow of $89.7M and a stock price of $4.91. The current ratio is 72% below the 5 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get an historical median and 4 year median dividend yield of 2.22%. The current dividend yield is 6.11% based on dividends of $0.26 and a stock price of $4.91. The current dividend yield is 175% above the historical median and 4 year median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

The 5 year median Price/Sales (Revenue) Ratio is 3.50. The current P/S Ratio is 1.31 based on Revenue estimate for 2021 of $276M, Revenue per Share of $3.75 and a stock price of $4.91. The current ratio is 63% below the 5 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 relatively cheap. All the stock price testing points to this. The dividend yield test says the stock is relatively cheap and the P/S Ratio tests confirms this. Note that the stock price would have to move up a lot to get a result of the stock price being reasonable and below the median. For example, for the P/S Ratio test to says this, the stock would have to move above $10.50. The point being that even though the stock price is not at what my testing is at, it will take a big move to change the results of the testing.

Is it a good company at a reasonable price? I still believe in this company and will hold on to my shares and may buy more. I think the current price is relatively cheap. The problem with our current situation, it is hard to know what the future holds. We are not sure what will happen in the fall.

When I look at analysts’ recommendations, I find Strong Buy (2), Buy (5) and Hold (1). The consensus would be a Buy. The 12 months stock price consensus is $7.31. This implies a total return of $54.99% with 48.88% from capital gain and 6.11% from dividends.

Analyst complain about their debt level on Stock Chase. Jed Lloren on Motley Fool believes in this stock. A writer on Simply Wall Street complains about the company’s low ROE and high debt. A writer on Simply Wall Street talks about the company missing its EPS estimate. The Canadian Press via Barrie Today talks about the company’s recent expansion.

Stingray Group Inc is a music, media, and technology company. The company is a provider of curated direct-to-consumer and B2B services, including audio television channels, radio stations, SVOD content, 4K UHD television channels, karaoke products, digital signage, in-store music, and music apps. Its web site is here Stingray Digital Group Inc.

The last stock I wrote about was about was Loblaw Companies Ltd (TSX-L, OTC-LBLCF) ... learn more. The next stock I will write about will be BlackBerry Ltd (TSX-BB, NASDAQ-BBRY) ... learn more on Friday, August 7, 2020 around 5 pm. Tomorrow on my other blog I will write Something to Buy August 2020.... learn more on Thursday, August 06, 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.

Loblaw Companies Ltd

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. Stock price is probably reasonable. Dividend yield is low but Dividend Payout Ratio are good. It would be nice to see an improvement in their debt ratios. See my spreadsheet on Loblaw Companies Ltd.

I do not own this stock of Loblaw Companies Ltd (TSX-L, OTC-LBLCF). I owned it from 1996 to 2007. It was originally a great stock. I sold it in 2007 because it was having problems with its tech upgrade to its supply system and it did not seem that it would be fixed anytime soon.

When I was updating my spreadsheet, I noticed shareholders who bought this stock 15 to 20 years ago have made little in the way of return. The Total Return for the past 15 and 20 years is 3.79% and 3.03% per year. This is because the stock was steadily rising and hit a high of $72.02 in 2004. This is a high that has only been breached again in 2015 and the current stock price is still below this high.

It was at this time that they built a new supply management system that they had lots of trouble with. Earnings fell, the dividends were held steady for 6 years and, of course, the stock price fell. Another thing is that Book Value is down by 0.26% over the past 5 years. This means that net assets have not been growing. This is just not a good sign.

The dividend yields are low with dividend growth low. The current dividend yield is low (under 2%) at 1.82%. The 5, 10 and historical dividend yields are also low at 1.52%, 1.96% and 1.30%. The Dividend growth is currently low (under 8%) at 4.93% per year for the past 5 years. The last dividend increase was in 2019 and it was for 6.8%.

The Dividend Payout Ratios (DPR) are good. The DPR for EPS for 2019 is 43% with 5 year coverage at 44%. The DPR for CFPS for 2019 is 9% with 5 year coverage at 11%. The DPR for Free Cash Flow for 2019 is 17% with 5 year coverage at 21%. Dividend Coverage Ratio is 6.02 with 5 year ratio at 4.84.

Debt Ratios could be improved. The Long Term Debt/Market Cap Ratio for 2019 is good at 0.25. The Liquidity Ratio is low at 1.23, but if you add in cash flow after dividends it is good at 1.61. The Debt Ratio is too low at 1.45. I prefer it to be 1.50 or higher. The Leverage and Debt/Equity Ratios are too high at 3.21 and 2.21. I prefer these to be under 3.00 and under 2.00.

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	4.93%	3.22%	1.51%	1.71%
2009	10	3.97%	9.21%	7.06%	2.15%
2004	15	3.32%	3.79%	-0.48%	4.27%
1999	20	8.56%	3.03%	1.60%	1.43%
1994	25	11.06%	11.66%	8.89%	2.76%
1989	30	10.23%	12.81%	9.96%	2.84%
1988	31	9.89%	13.94%	10.77%	3.16%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 25.56, 28.60 and 31.32. The corresponding 10 year ratios are 19.47, 21.95 and 24.47. The corresponding historical ratios are 17.05, 19.42 and 21.60. The current P/E Ratio is 20.21 based on a stock price of $69.13 and 2020 EPS estimate of $3.42. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $48.46. The 10 year low, median, and high median Price/Graham Price Ratios are 1.31, 1.44 and 1.57. The current P/GP Ratio is 1.43 based on a stock price of $69.13. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year median Price/Book Value per Share Ratio of 1.81. The current P/B Ratio is 2.27 based on a Book Value of $10,988M, Book Value per Share of $30.52 and a stock price of $69.13. The current P/B Ratio is 25% 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 8.47. The current P/CF Ratio is 5.86 based on Cash Flow per Share estimate for 2020 of $11.80, a Cash Flow of $4,249M and a stock price of $69.13. the current cash flow is 31% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get an historical median dividend yield of 1.30%. The current dividend yield is 1.82% based on dividends of $1.26 and a stock price of $69.13. The current dividend yield is 40% 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 1.96%. The current dividend yield is 1.82% based on dividends of $1.26 and a stock price of $69.13. The current dividend yield is 7% below the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively cheap. This stock price testing suggests that the stock price is relatively reasonable but above the median.

The 10 year median Price/Sales (Revenue) Ratio is 0.48. The current P/S Ratio is 0.48 based on Revenue estimate for 2020 o $52,143M, Revenue per Share of $144.82 and a stock price of $69.13. The current ratio is at 0% variation from the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and at the median.

Results of stock price testing is that the stock price is reasonable and at the median. One of the dividend yield tests show the stock price below and one show the stock price above the median. The P/S Ratio test shows the stock price at the median. The other tests vary in the results but none are out of line.

Is it a good company at a reasonable price? This is a good defensive stock. They have a long history of paying dividends. They are currently a dividend growth stock. It is a good company and the current price is reasonable. I must admit I shop at Loblaws, but I own Metro.

When I look at analysts’ recommendations, I find Strong Buy (3), Buy (2) and Hold (6). The consensus would be a Buy. The 12 month stock price consensus is $80.82. This implies a total return of $18.73% with 1.82% from dividends and 16.91% from capital gains.

Analysts opinion of this stock varies on Stock Chase from Top Pick to Don’t Buy.. Stephanie Bedard-Chateauneuf on Motley Fool says this is a good stock for a recession. A writer on Simply Wall Street says that this company is a consistent dividend payer. A writer on Simply Wall Street talks about insider buying at this company. The blogger Dividend Earner says Loblaw’s is a consumer defensive stock and should hold good during times of uncertainty.

Loblaw is one of Canada's largest grocery, pharmacy, and general merchandise retailers. It operates the most expansive store footprint in Ontario and maintains sizable presences in provinces like Quebec and British Columbia. Its web site is here Loblaw Companies Ltd.

The last stock I wrote about was about was Ballard Power Systems Inc (TSX-BLDP, NASDAQ-BLDP) ... learn more. The next stock I will write about will be Stingray Digital Group Inc (TSX-RAY.A, OTC-NONE) ... learn more on Wednesday, August 05, 2020 around 5 pm. Today on my other blog I will write about Dividend Stocks August 2020.... learn more on Tuesday, August 4, 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.

Ballard Power Systems Inc

Sound bite for Twitter and StockTwits is: Industrial Sector Stock. I think it can also be considered a tech stock. The stock price is relatively very high. Whether the dreams of the current investors will come true is anyone guess. They have good debt ratios and the burn rate seems to be under control. See my spreadsheet on Ballard Power Systems Inc.

I do not own this stock of Ballard Power Systems Inc (TSX-BLDP, NASDAQ-BLDP). Back in 1997, I read about Ballard and fell in love with the idea of cars running with fuel cells. I could help save the environment and also make some money. It was very attractive. I sold this stock in 2006 because it had lost its attraction. It did not seem that Ballard fuel cells would be in any car anytime soon. I was ahead in 2000, but the stock started to fall in October 2000 and is just now recovering.

When I was updating my spreadsheet, I noticed if I had kept this stock, after buying in 1997, I would have made a profit of 0.90% per year. This is the first time the stock is above what I paid for it. This is after almost 23 years.

The stock price has taken off. They have positive growth in Revenue, but not growth in Revenue per Share. As a shareholder it is Revenue per Share that counts. The Revenue for the past 5 and 10 year has grown at 9.12% and 8.57% per year. However, the Revenue per Share over the past 5 and 10 years is down by 2.71% and 2.03% per year. EPS and Cash Flow are still negative. The company has raised money by selling shares and outstanding shares are up by 12% and 11% per year over the past 5 and 10 years.

This stock has never paid a dividend, so there is no dividend yield or Dividend Payout Ratios (DPR) are.

Debt Ratios are good. The Long Term Debt/Market Cap Ratio is 0.01 and so is very good and very low. The Liquidity Ratio for 2019 is 3.56 and is very good. The Debt Ratio is 3.78 and is very good. The Leverage and Debt/Equity Ratios at 1.36 and 0.36 are low and good.

The Total Return per year is shown below for years of 5 to 24 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	0.00%	31.39%	31.39%	0.00%
2009	10	0.00%	16.65%	16.65%	0.00%
2004	15	0.00%	0.96%	0.96%	0.00%
1999	20	0.00%	-7.13%	-7.13%	0.00%
1995	24	0.00%	2.61%	2.61%	0.00%

The Total Return per year is shown below for years of 5 to 24 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	0.00%	29.39%	29.39%	0.00%
2009	10	0.00%	14.28%	14.28%	0.00%
2004	15	0.00%	0.38%	0.38%	0.00%
1999	20	0.00%	-6.52%	-6.52%	0.00%
1995	24	0.00%	2.86%	2.86%	0.00%

The 5 year low, median, and high median Price/Earnings per Share Ratios are negative. The corresponding 10 year ratios are negative. The corresponding historical ratios are also negative. The current P/E Ratio is negative. The company has not made any profit. It is impossible to a P/E Ratio test.

My best guess at a Graham Price is $0.61. The 10 year low, median, and high median Price/Graham Price Ratios are 1.96, 3.45 and 4.81. The current P/GP Ratio is 31.26 based on a stock price of $19.06. This stock price testing suggests that the stock price is relatively expensive. This is in CDN$.

I get a 10 year median Price/Book Value per Share Ratio of 2.68. The current P/B Ratio is 11.56 based on a stock price of $14.23, Book Value of $289M and Book Value per Share of $1.23. The current ratio is 331% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This is in US$. You will get a similar result in CDN$.

I cannot do a Price/Cash Flow per Share Ratio test as the cash flow is negative and so the ratios are negative. I cannot do any dividend yield tests because there are no dividends.

The 10 year median Price/Sales (Revenue) Ratio is 3.59. The current P/S Ratio is 28.04 based on 2020 Revenue estimate of $119M, Revenue per Share of $0.51 and a stock price of $14.23. The current ratio is 680% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This is in US$. You will get a similar result in CDN$.

Results of stock price testing is that the stock price is that the stock price is relatively expensive. This stock has recently taken off like a rocket.

Is it a good company at a reasonable price? This is a highly speculative stock. It still remains to be seen if it will be a success or not. I bought it 1997 because I fell in love with the idea of what it was trying to do. I gave up on it in 2006 because I lost faith in the company. It is still a great idea. Whether or not it will be successful I think is still unknown. I do not regret having this stock as I still think it has great ideas. However, I will probably not invest in it again.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (4) and Hold (3). The consensus would be a Buy. The 12 month stock price consensus is $27.22 ($20.28 US$). This implies a total return of $42.80% all from capital gains.

Analyst on Stock Chase are negative about his stock. Christopher Liew on Motley Fool talks about Ballard being a top performer. A writer on Simply Wall Street talks about the big increase in share price and that share price is rising faster than revenue. A writer on Simply Wall Street talks about why he is not worried about the company’s cash burn. Zacks Equity Research on Yahoo Finance says the company is expected to beat earning estimates.

Ballard Power Systems Inc is a clean energy growth company. The company is engaged in proton exchange membrane fuel cell development and commercialization. The company's main business is the design, development, manufacture, sale, and service of fuel cell products for a variety of applications, focusing on motive power (material handling and buses) and stationary power (back-up power, supplemental power, and distributed generation). Its web site is here Ballard Power Systems Inc.

The last stock I wrote about was about was Savaria Corporation (TSX-SIS, OTC-SISXF) ... learn more. The next stock I will write about will be Loblaw Companies Ltd (TSX-L, OTC-LBLCF) ... learn more on Tuesday, August 4, 2020 around 5 pm.

Also, on my book blog I have put a review of the book Feeding the People by Rebecca Earle 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.

Savaria Corporation

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. Stock price is probably reasonable, but maybe a bit high. Revenue, Earnings and Cash Flow are growing, but so is the outstanding shares. Dividend growth may decline. Debt Ratios are good. See my spreadsheet on Savaria Corporation.

I do not own this stock of Savaria Corporation (TSX-SIS, OTC-SISXF). I got this stock off the Dividend Blogger site that no longer exists. I am always interested in dividend growth small cap stock. The first few years of accounting were rather confusing, but I think I figured them out in the end.

When I was updating my spreadsheet, I noticed that the company has been doing well with rising Revenue, Earnings and Cash Flow. For example, EPS has gone up by 18% and 19% per year over the past 5 and 10 years. However, for some reason analysts think that EPS will decrease this year, but the first quarter points to a slight increase in EPS for 2020.

Their web site does not show top management. I have not seen any other side not to show this information. A negative is the increasing number of outstanding shares. Outstanding shares have been increasing by 11.4% and 8.6% per year over the past 5 and 10 years.

The dividend yields are moderate with dividend growth good. The current dividend is moderate (2% to 4% ranges) at 3.47%. The 5, 10 and historical dividend yields are also moderate at 2.49%, 3.43% and 3.54%. The dividend growth has been over all good (15% per year and over) with dividend growing at 27% per year over the past 5 years. See chart below. The last dividend increase was in 2019 and it was for 16.7%. They have also paid out special dividends. But they have cut dividends in the past when the DPRs got too high.

The Dividend Payout Ratios (DPR) are too high and need improving. The DPR for EPS for 2019 is 81% with 5 year coverage at 73%. The DPR for CFPS for 2019 is 44% with 5 year coverage also at 44%. The DPR for Free Cash Flow for 2019 is 102% with 5 year coverage at 96%. Dividend Coverage Ratio for 2019 is 0.98 and the 5 year ratio is 1.04. The increase for 2019 was lower than it has been and this is a good step forward.

Debt Ratios are very good. The Long Term Debt/Market Cap Ratio for 2019 is 0.07 and this is very good. The Liquidity Ratio for 2019 is 2.45 and this is also very good. The Debt Ratio is 2.54 and very good. The Leverage and Debt/Equity Ratios for 2019 are 1.63 and 0.63 and are very good.

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	27.02%	30.27%	26.25%	4.02%
2009	10	30.50%	39.22%	32.29%	6.93%
2004	15	22.53%	17.69%	15.11%	2.58%
2001	18		18.73%	16.45%	2.28%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 20.19, 25.40 and 36.53. The corresponding 10 year ratios are 14.54, 18.92 and 22.88. The corresponding historical ratios are 14.26, 17.97 and 21.11. The current P/E Ratio is 29.47 based on a stock price of $13.26, EPS estimate for 2020 o $0.45. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $7.44. The 10 year low, median, and high median Price/Graham Price Ratios are 1.17, 1.54 and 1.81. The current P/GP Ratio is 1.78 based on a stock price of $13.26. 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 2.74. The current P/B Ratio is 2.42 based on a stock price of $13.26, Book Value of 277M, and Book Value per Share of $5.47. The current P/B 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.

I get a 10 year median Price/Cash Flow per Share Ratio of 12.82. The current P/CF Ratio is 20.09 based on Cash Flow per Share estimate of $0.66, Cash Flow of $33.4M and a stock price of $13.26. This stock price testing suggests that the stock price is relatively expensive.

I get an historical median dividend yield of 3.54%. The current dividend yield is 3.47% based on dividends of $0.46 and a stock price of $13.26. The current yield is 2% below the historical 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 3.43%. The current dividend yield is 3.47% based on dividends of $0.46 and a stock price of $13.26. The current yield is 1% above the historical dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.

The 10 year median Price/Sales (Revenue) Ratio is 1.53. The current P/S Ratio is 1.82 based on Revenue estimate for 2020 of $368M, Revenue per Share of $7.27 and a stock price of $13.26. The current ratio is 19% above the 10 year median 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. The dividend yield tests show that the stock price is around the median. The P/S Ratio test show that it is above the median. The P/B Ratio test show the stock price below the median.

Is it a good company at a reasonable price? They have increasing Revenue, Earnings and Cash Flow, but are also increases outstanding shares. I think that the company is good, but growth maybe uneven. Dividend increases may decline. However, I suspect that they will do well long term.

When I look at analysts’ recommendations, I find Strong Buy (2) and Buy (4). The consensus would be a Buy. The 12 month stock price consensus is $15.39. This implies a total return of 19.53% with 16.06% from capital gains and 3.47% from dividends.

Analysts on Stock Chase think the company has growth potential. Ambrose O'Callaghan on Motley Fool thinks this company is a great small cap for your TFSA. A writer on Simply Wall Street says that increases in outstanding shares is likely hurt its dividend prospects. A writer on Simply Wall Street says the stock is selling below its intrinsic value of $17.55 but there is high uncertainty for this company in the near term. The company announces two new contracts on Globe Newswire.

Savaria Corp designs, engineers, and manufactures products for personal mobility. Its products include home elevators, wheelchair lifts, commercial elevators, ceiling lifts, stair lifts, and van conversions. The company's operating segments are the Accessibility, the Adapted Vehicles, and the Patient Handling divisions. Its web site is here Savaria Corporation.

The last stock I wrote about was about was TECSYS Inc (TSX-TCS, OTC-TCYSF) ... learn more. The next stock I will write about will be Ballard Power Systems Inc (TSX-BLDP, NASDAQ-BLDP) ... learn more on Friday, July 31, 2020 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks for 2020.... learn more on Thursday, July 30, 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.

TECSYS Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. Stock price is relatively expensive. It is also a tech stock. The dividend is very low at present. I do not buy stocks with dividends under 1% because it takes too long to get a good return no matter on the increases. It would be a buy if dividend goes over 1%. This stock started to rise again in 2012, after its meteoric rise and fall with the 2000 tech market. See my spreadsheet on TECSYS Inc.

I own this stock of TECSYS Inc (TSX-TCS, OTC-TCYSF). I came across this stock when I was looking for a dividend paying small cap stock as a filler stock. I consider a filler stock to be one to soak up small amounts of investment money that I have left over in my account, especially in the TFSA after I have made my main purchase for the year. This is a small cap dividend paying stock that I like.

When I was updating my spreadsheet, I noticed David Brereton is the founder and Chair. He has been selling off some of his shares each year and has been doing this for awhile. Of the ones I looked at, the only one buying was the CFO, Mark Joseph Bentler. He is not a Brereton as there are a few Brereton’s at this company. The Debt Ratios are good.

The dividend yields are low with dividend growth good. The dividend yields have often been low (below2%), with the current yield at 0.80% and 5, 10 and historical yields at 1.28%, 1.42% and 1.53%. In the past the dividend increases have been good. See chart below.

The Dividend Payout Ratios (DPR) are currently a bit too high, but I expect this will be corrected. The DPR for EPS for 2020 is 128% with 5 year coverage at 66%. The DPR for 2020 is 45% with 5 year coverage at 47%. The DPR for Free Cash Flow for 2020 is 34% with 5 year coverage at 44%. Dividend Coverage Ratio is 2.95 with 5 year coverage at 2.30.

Debt Ratios are good. The Long Term Debt/Market Cap for 2020 is 0.03. The Liquidity Ratio for 2020 is 1.56. The Debt Ratio for 2020 is 1.97. The Leverage and Debt/Equity Ratios are 2.04 and 1.04.

The Total Return per year is shown below for years of 5 to 21 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.

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From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2014	5	20.64%	23.10%	21.71%	1.38%
2009	10	16.49%	28.27%	26.42%	1.86%
2004	15	15.69%	20.59%	19.38%	1.21%
1999	20		5.67%	5.27%	0.40%
1998	21		9.94%	9.46%	0.48%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 16.67, 20.68 and 24.69. The corresponding 10 year ratios are 20.68, 27.23 and 33.78. The corresponding historical ratios are 11.24, 13.24 and 16.46. The current P/E Ratio is 136.36 based on a stock price of $30.00 and 2021 EPS estimate of $0.22. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $4.58. The 10 year low, median, and high median Price/Graham Price Ratios are 1.50, 1.98 and 2.52. The current P/GP Ratio is 6.55 based on a stock price of $30.00. 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 3.74. The current P/B Ratio is 7.08 based on a Book Value of $61M, Book Value per Share of $4.24 and a stock price of $30.00. The current P/B Ratio is 89% 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 20.73. The current P/CF Ratio is 43.22 based on Cash Flow for the last 12 months of $10M, Cash Flow per Share of $0.69 and a stock price of $30.00. The current ratio is 109% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I get an historical median dividend yield of 1.53%. The current dividend yield is 0.80% based on dividends $0.24 and a stock price of $30.00. The current yield is 48% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive.

I get an historical median dividend yield of 1.42%. The current dividend yield is 0.80% based on dividends $0.24 and a stock price of $30.00. The current yield is 44% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive.

The 10 year median Price/Sales (Revenue) Ratio is 1.60. The current P/S Ratio is 3.73 based on a stock price of $30.00, 2021 Revenue estimate of $116M, and Revenue per Share of $8.05. The current ratio is 133% 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 relatively expensive. The Dividend Yield tests show this and are confirmed by the P/S Ratio test. All the test, in fact, show the same thing. I can find no fault with them. However, a lot of the ratios are quite high, relatively speaking.

Is it a good company at a reasonable price? I own this stock and think it is a great company. I know that it is overpriced but I will not be selling. I do not sell a good company because it gets over price. I do not time the market. Although, neither will I be buying more at the present time.

When I look at analysts’ recommendations, I find Strong Buy (1), and Buy (3). The consensus would be a Buy. The 12 month stock price consensus is $34.50. This implies a total return of 15.80% with 0.80% from dividends and 15% from capital gains.

The last entry shows this company as a top pick, but few analysts follow this company on Stock Chase. Brian Paradza, on Motley Fool says this company could be the next Shopify. A writer on Simply Wall Street says he is worried about declining net income. A writer on Simply Wall Street says that earnings cannot cover dividends, but they are affordable from a cash perspective. A report on Newswire talks about this company earning over $100M for the first time..

TECSYS Inc is engaged in the development and sale of enterprise supply chain management software for distribution, warehousing, transportation logistics, point-of-use, and order management. Geographically, it derives a majority of revenue from the United States and also has a presence in Canada and other Countries. Its web site is here TECSYS Inc.

The last stock I wrote about was about was Pulse Seismic Inc (TSX-PSD, OTC-PLSDF) ... learn more. The next stock I will write about will be Savaria Corporation (TSX-SIS, OTC-SISXF) ... learn more on Wednesday, July 29, 2020 around 5 pm. Tomorrow on my other blog I will write about Visual Capitalist.... learn more on Tuesday, July 28, 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.

Pulse Seismic Inc

Sound bite for Twitter and StockTwits is: Industrial Sector Stock. The stock price is cheap. There is insider buying. It is highly speculative. It has a mixed record in records to dividends and basically pays them when affordable. See my spreadsheet on Pulse Seismic Inc.

I do not own this stock of Pulse Seismic Inc (TSX-PSD, OTC-PLSDF). I wanted to invest some extra money in a dividend paying small cap. I went to the Globe and Mail site of G&M and from Globe Investor section I selected the Stock Filter. I asked for companies that were priced between $1 and $5.50 and had a yield between 4% and 20%. Pulse Seismic Inc. was one of the companies that were returned. This is not a stock I chose to invest in but I found it of interest so I am following it.

When I was updating my spreadsheet, I noticed that there is lots of insider buying. There is buying by the CEO, CFO and Chairman. It used to be a dividend growth stock, but cut its dividends in 2015 because of lack of earnings. However, they did give out a special dividend in 2017 when they made a profit. Problem is that they service the energy business in the west so they are currently not earning much. The stock peaked in 2013 and has been going south ever since.

They have a very mixed record in regards to dividends. Dividend have gone up and down. They were suspended in 2015, but this was not the first time. They also made a special dividend in 2017 because they made a profit that year.

The Dividend Payout Ratios (DPR) show a mixed record. However, they have suspended dividends when they would not afford them. In 2017 they made a profit so gave out a dividend that was 74% DPR of EPS and 19% of CFPS. Morningstar and Wall Street Journal do not agree on what the Free Cash Flow is, however, according to Morningstar they paid out 29% of FCF in 2017.

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2019 is 0.29 and that is good. It is still good at 0.57 for a current value. Debt went down, but so did the stock price. The Liquidity Ratio for 2019 is 1.11 and if you add in cash flow after dividends it is 2.72. The current Liquidity Ratio is 0.79 and with cash flow is 1.65. The Debt Ratio for 2019 is 1.85. Leverage and Debt/Equity Ratio for 2019 is 2.18 and 1.18 and these are also fine.

The Total Return per year is shown below for years of 5 to 21 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%	-5.88%	-7.92%	2.04%
2009	10	0.00%	7.97%	4.58%	3.39%
2004	15	0.00%	5.08%	0.73%	4.35%
1999	20		10.02%	4.87%	5.15%
1998	21		13.88%	7.50%	6.38%

The 5 year low, median, and high median Price/Earnings per Share Ratios are negative. The corresponding 10 year ratios are also negative. The corresponding historical ratios are 2.83, 4.57 and 5.71. The current P/E Ratio is 3.03 based on a stock price of $0.91 and 2020 EPS estimate of 0.30. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $2.11. The 10 year low, median, and high median Price/Graham Price Ratios are 1.13, 1.35 and 1.59. The current P/GP Ratio is 0.43 based on a stock price of $0.91. 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 3.40. The current P/B Ratio is 1.38 based on a stock price of $0.91, Book Value of $35.475M, and Book Value per Share of $0.66. The current ratio is 59% 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 5.38. The current P/CF Ratio is 8.28 based on last 12 months Cash Flow of $5.9M, Cash Flow per Share of $0.11 and a stock price of $0.91. The current ratio is 54% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I cannot do any dividend yield testing as the dividends have been suspended.

The 10 year median Price/Sales (Revenue) Ratio is 5.25. The current P/S Ratio is 4.08 based on 2020 Revenue estimate of $12M, Revenue per Share of $0.22 and a stock price of $0.91. The current ratio is 22% 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 relatively cheap. The P/S Ratio test shows this and it is confirmed by the P/B Ratio test. The P/CF test shows this as well. The problem with the P/E Ratio testing is all the years of earning losses. This would also affect the Graham Price as some guessing goes into its calculation so it might be off.

Is it a good company at a reasonable price? First, the stock price is relatively cheap. I still think this is an interesting company and if resources ever pick up again it will do well. However, it is highly speculative.

When I look at analysts’ recommendations, I find Buy (1). The consensus would be a buy. The 12 month target price is $1.40. This implies a total return of 53.85% all from capital gains.

This is a small company and there is only old comments on Stock Chase. Stock is not well followed. See the executive overview on Simply Wall Street. A writer on Simply Wall Street is a bit worried about the debt of this company. A writer on Simply Wall Street says the consensus on this stock has turned bearish. A writer on Simply Wall Street says that the CEO is being paid more then the median for this size of a company. The company reports on the Second Quarter of 2020 on Global News Wire

Pulse Seismic Inc is a Canadian company which acts as a provider of seismic data to the energy sector in western Canada. The company is engaged in the acquisition, marketing, and licensing of 2D and 3D seismic data to the energy sector. Its web site is here Pulse Seismic Inc .

The last stock I wrote about was about was Dorel Industries Inc (TSX-DII.B, OTC-DIIBF) ... learn more. The next stock I will write about will be TECSYS Inc (TSX-TCS, OTC-TCYSF) ... learn more on Monday, July 27, 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.

Dorel Industries Inc

Sound bite for Twitter and StockTwits is: Consumer Sector Stock. The stock price is relatively cheap. There is insider buying. They have too much debt and dividends have recently been suspended because of lack of af any earnings. See my spreadsheet on Dorel Industries Inc.

I do not own this stock of Dorel Industries Inc (TSX-DII.B, OTC-DIIBF). I am following this stock because I used to own it. I am always curious about what happens to stocks after I no longer hold them. I held this stock for 7 years between 1999 and 2006 and had a total loss of 1.21% with a capital loss of 1.22% and dividends of 0.01%. If I still had this stock today, I would have broken even.

When I was updating my spreadsheet, I noticed that Stock Price has gone almost straight south since 2018. Earnings peaked in 2012. Sales are not growing much. They have too much debt. Also, the Goodwill and Intangible assets are too high. In 4 of the past 6 years they had earning losses. On a positive note, insiders are buying.

This stock used to be a dividend growth stock, but it is that no longer. Dividends used to be in the moderate range (2% to 4% ranges). The 5 10 and historical median dividend yields are 4.84%, 3.92% and 3.00%. However, it recently cut the dividends because they could no longer afford them. There were no dividend increases between 2014 and 2018 inclusive.

The Dividend Payout Ratios (DPR) for EPS was not good, so dividend has been cut. Other coverages were fine. The DPR for EPS for 2019 was a negative as was the 5 year coverage. The DPR for CFPS for 2019 was 9.62% with 5 year coverage at 22.66%. The DPR for Free Cash Flow for 2019 was 30.56% with 5 year coverage at 64.12%.

Debt Ratios need to be improved. The Long Term Debt/Market Cap Ratio for 2019 was 2.78 with the current one at 2.80. For 2019 it was the drop in stock price that caused the high ratio. For the current one, they have increased debt by 26%. The Liquidity Ratio for 2019 is 1.61 and this is good. The Debt Ratio for 2019 is 1.40. I prefer to see this at 1.50 or above. The Leverage and Debt/Equity Ratios for 2019 are 3.48 and 2.48, moving up to 4.03 and 3.03 currently. These are too high. I prefer them to be under 3.00 and under 2.00, respectively.

The Total Return per year is shown below for years of 5 to 27 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	-15.93%	-24.60%	-31.93%	7.33%
2009	10	1.11%	-7.76%	-15.77%	8.01%
2004	15	1.41%	-6.18%	-12.22%	6.04%
1999	20		-1.79%	-7.19%	5.40%
1994	25		7.88%	1.66%	6.22%
1992	27		5.52%	0.23%	5.30%

The Total Return per year is shown below for years of 5 to 27 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	-17.81%	-26.49%	-33.15%	6.66%
2009	10	-1.05%	-9.88%	-17.42%	7.54%
2004	15	-0.87%	-6.40%	-12.54%	6.14%
1999	20		-0.66%	-6.48%	5.83%
1994	25		8.73%	2.04%	6.69%
1992	27		7.26%	1.38%	5.88%

The 5 year low, median, and high median Price/Earnings per Share Ratios are negative. The corresponding 10 year ratios are 7.00, 8.77 and 10.27. The corresponding historical ratios are 8.77, 11.31 and 14.45. The current P/E Ratio is negative, so I cannot test with that. The P/E Ratio for 2021 is 13.96 based on a stock price of $7.77. This would imply that the stock price is relatively expensive. This is in CDN$.

I get a Graham Price of $15.39, but this is a guess because the number of earning losses. The 10 year low, median, and high median Price/Graham Price Ratios are 0.69, 0.87 and 1.06. The current P/GP Ratio is 0.50 based on a stock price of $7.77. This stock price testing suggests that the stock price is relatively cheap. This is in CDN$.

I get a 10 year median Price/Book Value per Share Ratio of 0.80. The current P/B Ratio is 0.35 based on a Book Value of $452.5M, Book Value per Share of $13.93 and a stock price of $5.79. The current ratio is 48% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This is in US$ and you will get similar results in CDN$.

I get a 10 year median Price/Cash Flow per Share Ratio of 8.86. The current P/CF Ratio is 1.34 based on 2020 CFPS estimate of $4.31, cash flow of $140M and a stock price of $5.79. The current ratio is 85% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This is in US$ and you will get similar results in CDN$.

I cannot do any dividend yield tests as dividends have been suspended.

The 10 year median Price/Sales (Revenue) Ratio is 0.36. The current P/S Ratio is 0.07 based on 2020 Revenue estimate of $2,524, Revenue per Share of $77.71 and a stock price of $5.79. The current ratio is 79% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This is in US$ and you will get similar results in CDN$.

Results of stock price testing is that the stock price is relatively cheap. The results of the P/S Ratio testing say this and it is confirmed by the P/B Ratio testing. The other testing says the same thing except for the P/E Ratio test. The problem with the P/E Ratio test is that there are earnings losses and so negative P/E Ratios.

Is it a good company at a reasonable price? First the price is cheap. This might be a turn-around situation. Insider are buying. However, the track record for this company has not been good lately.

When I look at analysts’ recommendations, I find only Hold (3) recommendations. The consensus would be a Hold. The 12 month stock price consensus is $3.62 ($3.40 US$). This implies a total loss of 40.60%.

The last entry in 2019 says sell on Stock Chase. Chen Liu on Motley Fool was positive on this stock back in December 2019. The executive overview on Simply Wall Street says the firm is unprofitable and not forecast to become profitable over the next 3 years. A writer on Simply Wall Street says the company is not reinvesting funds back into the business and returns are not growing. A writer on Simply Wall Street says insiders are buying so it might be a turn-around situation..

Dorel Industries Inc. is a Canadian company that sells juvenile products, bicycles, and furniture. The company operates across North America, East and South Asia, Europe, Oceania, Israel, and South America. Its web site is here Dorel Industries Inc.

The last stock I wrote about was about was Artis REIT (TSX-AX.UN, OTC-ARESF) ... learn more. The next stock I will write about will be Pulse Seismic Inc (TSX-PSD, OTC-PLSDF) ... learn more on Friday, July 24, 2020 around 5 pm. Tomorrow on my other blog I will write about Adam Mayers, Blogger.... learn more on Thursday, July 23, 2020 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

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