Chemtrade Logistics Income Fund

Sound bite for Twitter and StockTwits is: Dividend Paying Materials. The stock price is relatively cheap. However, this would be a risky buy. Both the Dividend Payout Ratios and Debt Ratio need improvement. They are expecting to have negative earnings for the next two years as has happened over the past two years. A positive thing is insider buying at 0.27% of market cap. Anything over 0.1 is good. See my spreadsheet on Chemtrade Logistics Income Fund.

I do not own this stock of Chemtrade Logistics Income Fund (TSX-CHE.UN, OTC-CGIFF). I decided to investigate this stock after reading an article in the G&M in February 2012 about investing in small cap stocks that pay dividends. This was one of the stocks mentioned that I had never heard of before.

When I was updating my spreadsheet, I noticed that the growth in Revenue per Share is so much lower than the growth in Revenue. The 5 and 10 year Revenue growth is 5% and 11%. The 5 and 10 year Revenue per Share growth is negative at 1.2% and 0.7%. This because of the growth in shares. As a shareholder, the figure you want to look at the Revenue per Share.

The dividend yields are high with dividend growth non-existent. The dividend yield is high (7% and above) at 9.87%. The 5, 10 and historical dividend yields are also high at 7.12%, 7.36% and 8.19%. The dividends were cut in 2007 and they have remained flat until this year, 2020, when the dividends were cut again.

The Dividend Payout Ratios (DPR) need improving. I cannot calculate the DPR for EPS because of earning losses. The DPR for CFPS for 2019 is fine at 38% with 5 year coverage at 41%. They still give out Distributional Income, for which the 2019 DPR is 135% with 5 year running average at 98%. The DPR for AFFO for 2019 is 67% with 5 year running average at 60%. The DPR for Free Cash Flow for 2019 is 247.33% with 5 year coverage at 106%.

This company started out as an income fund. However, the legislation of 2006 says that all income trust must pay tax from 2011. This company certainly is currently a tax paying corporation. So, the DPR for EPS counts. They do have the cash flow to cover their dividends. The lack of good coverage of dividends is probably why the dividends were decreased by 50% in 2020. A problem is that they are not expected to make a profit either this year or next.

Debt Ratios need to improve. The Long Term Debt/Market Cap for 2019 is 0.85. The current ratio is 1.43 because of an increase in debt by 8% and a decreased in stock price of 45%. The Liquidity Ratio for 2019 is 1.35. If you add in cash flow after dividends it is 1.43. The Debt Ratio for 2019 is 1.38. Both the Liquidity Ratio and Debt Ratio are low. I prefer them to be at 1.50 or higher. The Leverage and Debt/Equity Ratios are a bit too high at 3.66 and 2.66. I prefer them to be below 3.00 and 2.00.

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	0.00%	-4.41%	-11.83%	7.42%
2009	10	0.00%	10.91%	0.02%	10.89%
2004	15	-0.63%	3.99%	-3.99%	7.97%
2001	18	5.03%	13.26%	-0.35%	13.61%

The 5 year low, median, and high median Price/Earnings per Share Ratios are all negative. The corresponding 10 year ratios are 8.05, 10.01 and 11.85. The corresponding historical ratios are 11.18, 12.11 and 13.28. The current P/E Ratio is negative as is the P/E Ratio for 2021. This test cannot be done.

My best guess for a Graham Price is $16.24. The problem is the negative EPS and EPS is part of the Graham Price calculation. The 10 year low, median, and high median Price/Graham Price Ratios are 0.98, 1.11 and 1.27. The current P/GP Ratio is 0.37 based on a stock price of $6.08. This stock price testing suggests that the stock price is relatively cheap. Possible problem is in the Graham Price calculation.

I get a 10 year median Price/Book Value per Share Ratio of 1.57. The current P/B Ratio is 0.79 based on a Book Value of $709M, Book Value per Share of $7.66 and a stock price of $6.08. The current ratio is 49% below the 10 year ratio. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median Price/Cash Flow per Share Ratio of 7.06. The current P/CF Ratio is 4.25 based on 2020 Cash Flow per Share estimate of $1.43, Cash Flow of $132M and a stock price of $6.08. The current ratio is 40% 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 8.19%. The current dividend yield is 9.87% based on a stock price of $6.08 and dividends of $0.60. The current dividend is 20% above the historical dividend yield. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 years median dividend yield of 7.38%. The current dividend yield is 9.87% based on a stock price of $6.08 and dividends of $0.60. The current dividend is 34% above the historical dividend yield. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 0.87. The current P/S Ratio is 0.59 based on a stock price of $6.08, 2020 Revenue estimate of $1,447M and Revenue per Share of $15.63. The current ratio is 55% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

Results of stock price testing is that the stock price is probably relatively cheap. Both the dividend yield tests say that the stock price is relatively cheap and this is confirmed by the P/S Ratio test. There is nothing wrong with the P/B Ratio test and the P/CF Ratio tests. These also say that the stock price is relatively cheap.

Is it a good company at a reasonable price? The stock price seems to be cheap. However, I would think that this is a rather risky investment. I think that both the Dividend Payout Ratios and Debt Ratios could be improved. They have no positive EPS over the last two years and analysts do not think that they will over the next two years. There is insider buying.

When I look at analysts’ recommendations, I find Buy (1) and Hold (5). The consensus would be a Hold. The 12 month stock price is $7.18. This implies a total return of 27.96% with 18.09% from capital gain and 9.87% from dividends.

Analyst on Stock Chase think this stock is too risky. Adam Othman on Motley Fool says high yield could add good income for your TFSA. Mat Litalien, on Motley Fool says to approach this high yield stock with caution. Writers on Simply Wall Street seem to have lost interest in this stock as all their reports are from 2018 and before. This company on Globe Newswire announces the recent sale of debentures. The company talks about their second quarterly results for 2020 on Globe Newswire.

Chemtrade Logistics Income Fund provides industrial chemicals and services to customers in North America and around the world. The company organized into four main operating segments: Sulphur Products and Performance Chemicals (SPPC), Water Solutions and Specialty Chemicals (WSSC), Electrochemicals, and Corporate. Its web site is here Chemtrade Logistics Income Fund.

The last stock I wrote about was about was Aecon Group Inc (TSX-ARE, OTC-AEGXF) ... learn more. The next stock I will write about will be Alimentation Couche-Tard Inc (TSX-ATD.B, OTC-ANCUF) ... learn more on Monday, August 24, 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.

Aecon Group Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. The stock price is reasonable and below the median. Current dividend is 4.37% and this is some 67% above the 10 year median dividend yield of 2.62%. See my spreadsheet on Aecon Group Inc.

I do not own this stock of Aecon Group Inc (TSX-ARE, OTC-AEGXF). This will replace Onex Corp (TSX-ONEX, OTC-ONEXF) which I will no longer follow. I will try to find another Financial stock also.

When I was updating my spreadsheet, I noticed that there was a big difference between the Basic EPS and the Diluted EPS. For 2019 it was 6.67% and for 2018 it was 5.05%. Most of this difference is because of convertible debentures. For 2019 the difference in these EPS for Convertible Debentures was 5.28% and for 2018 it was 4.05%. For 2019 the difference in these EPS for Stock Options was 1.38% and for 2018 it was 1.00%.

Also, the shareholder who have held this stock for 10 years, have not made much money. The Total Return for the 10 year period is just 3.80% with a capital gain of 1.57%. The different ratios where not especially high in 2009 (10 years ago). The only thing I noticed is that the stock price increased some 36% in 2009. This might have suggested caution.

The dividend yields are moderate with dividend growth moderate. The current dividend yield is moderate (2% to 4% ranges) at 4.39%. The 5, 10 and historical dividend yields are lower, but still moderate at 2.91%, 2.62% and 2.24%. The Dividend growth over the past 5 years is moderate (8% to 14% ranges) at 9.86% per year. The last dividend increase was this year and it was for 10.34%.

The Dividend Payout Ratios (DPR) are fine. The DPR for 2019 for EPS was 50% with 5 year coverage at 55%. The DPR for CFPS for 2019 was 18% with 5 year coverage also at 18%. The DPR for 2019 for Free Cash Flow is 21% with 5 year coverage at 84%.

Debt Ratios are fine, but could improve. The Long Term Debt/Market Cap Ratio for 2019 is 0.48. Because the stock price has declined some 23% year to date, the current ratio is higher at 0.60. The Liquidity Ratio for 2019 is 1.57. The Debt Ratio is low for 2019 at 1.38. I prefer to see this at 1.50 or higher. The 5 year median is better but still low at 1.44. Leverage and Debt/Equity Ratios for 2019 are high at 3.63 and 2.63. I prefer to see them under 3.00 and under 2.00.

The Total Return per year is shown below for years of 5 to 23 to the end of 2019. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below. Note that the company did not pay dividends from 2003 to 2007.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2014	5	9.86%	13.98%	10.34%	3.64%
2009	10	10.84%	3.80%	1.57%	2.23%
2004	15	n/a	8.93%	6.75%	2.18%
1999	20	9.49%	10.97%	8.79%	2.19%
1996	23		8.84%	7.19%	1.65%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 15.26, 18.26 and 21.26. The corresponding 10 year ratios are 15.15, 18.46 and 21.81. The corresponding historical ratios are 8.39, 12.65 and 18.51. The current P/E Ratio is 29.90 based on a stock price of $14.65 and 2020 EPS estimate of $0.49. This stock price testing suggests that the stock price is relatively expensive.

This test is based on EPS for 2020 that drops some 56% from the EPS of 2019. The P/E Ratio for 2021 is 13.86 based on a stock price of $14.65 and 2021 EPS estimate of $1.02. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $12.42. The 10 year low, median, and high median Price/Graham Price Ratios are 0.84, 1.01 and 1.19. The current P/GP Ratio is 1.18 based on a stock price of $14.65. This stock price testing suggests that the stock price is relatively reasonable but above the median.

The Graham Price formula uses EPS and it would be affected by the big expected drop in earnings in 2020. For 2021, I get a Graham price of $17.92. The P/GP Ratio for 2021 is 0.82 based on a stock price of $14.65. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median Price/Book Value per Share Ratio of 1.22. The current P/B Ratio is 1.05 based on a Book Value of $838M, Book Value per Share of $14.00 and a stock price of $14.65. The current ratio is 15% below the 10 year 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 5.59. The current P/CF Ratio is 4.53 based on last 12 months Cash Flow of $193.7M, Cash Flow per Share of $3.24 and a stock price of $14.65. The current ratio is 19% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get an historical median dividend yield of 2.24%. The current dividend yield is 4.27% based on dividends of $0.64 and a stock price of $14.65. The current yield is 95% 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 2.62%. The current dividend yield is 4.27% based on dividends of $0.64 and a stock price of $14.65. The current yield is 67% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 0.30. The current P/S Ratio is 0.25 based on 2020 Revenue estimate of $3448M, Revenue per share of $57.59 and a stock price of $14.65. The current ratio is 14% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

Results of stock price testing is that the stock price is probably reasonable. Both the dividend yield tests show this stock is cheap, but the P/S Ratio test shows the stock as reasonable and below the median. A potential problem with the P/S Ratio test is that the Revenue is expected to fall a bit in 2020 and then be better in 2021. There are no problems with the P/B Ratio test nor the P/CF Ratio test. Both these test show that the stock price is relatively reasonable and below the median.

Is it a good company at a reasonable price? I think that the stock price is reasonable at the present time. The stock is down by about 16% from 2019. This is a dividend growth company and this is the sort of company I do like. It is currently on the Aristocrats list.

When I look at analysts’ recommendations, I find Strong Buy (6), Buy (4) and Hold (1). The consensus would be a Buy. The 12 month stock price is $19.95. This implies a total return of $40.35% with 36.18% from capital gains and 4.37% from dividends.

The last few entries on Stock Chase for this company thinks that it will do well with Covid. Jitendra Parashar on Motley Fool thinks this is an opportunity buy. A writer on Simply Wall Street says their ROE of 8.5% is at the industry’s average. A writer on Simply Wall Street says this stock’s intrinsic value is $20.79. There is an article on Small Cap Power saying this company could benefit from infrastructure spending by governments in Canada. The Blogger Dividend Earner does a review of this stock. Tom Drake on Maple Money has this stock as one of the top 100 Canadian Stocks.

Aecon Group Inc is a Canada-based company that operates in two major segments: Construction and Concessions. Its web site is here Aecon Group Inc.

The last stock I wrote about was about was Badger Daylighting Ltd (TSX-BAD, OTC-BADFF) ... learn more. The next stock I will write about will be Chemtrade Logistics Income Fund (TSX-CHE.UN, OTC-CGIFF) ... learn more on Friday, August 21, 2020 around 5 pm. Tomorrow on my other blog I will write about Stantec Inc.... learn more on Thursday, August 20, 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.

Badger Daylighting Ltd

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. The stock price is probably reasonable. The Dividend Payout Ratios are good. There is insider buying by the CEO, CFO and Chairman. See my spreadsheet on Badger Daylighting Ltd.

I do not own this stock of Badger Daylighting Ltd (TSX-BAD, OTC-BADFF). I started to follow this stock after reading a couple of articles in February 2012 in the G&M that talked about the company. The first article looked at what the pros who manage small-cap funds are buying. Badger was one of 10 stocks mentioned and it looked like an interesting stock. It is a dividend paying small cap. The second article looked at why stocks might appeal to a conservative investor looking for income.

When I was updating my spreadsheet, I noticed using the 12 month data from the second quarter of 2019, the Revenue had gone up to $655.1M or up 6.5%. The estimate for 2019 was $688M an increase of 11.8%. What happened was an increase to $654.3M or an increase of 6.3%. So, the estimate showed the right direction, but was off on how much the Revenue would increase. For EPS, the 12 month data showed an EPS for $1.83 which was no change from 2018. The EPS estimate was for $1.79, a decrease of 2.2%. What happened was an EPS for 2019 of $1.67 a decrease of 8.7%. Here the estimate also shows the right direction, but was also off on how much the EPS would decrease.

The dividend yields are low with dividend growth moderate. The current dividend yield is low (under 2%) at 1.65%. The 5 and 10 year median dividend yield are also low at 1.45% and 1.66%. The historical dividend yield is moderate (2% to 4% ranges) at 4.00%. This historical yield is higher because this stock used to be an income trust. The dividends have grown at a moderate rate (8% to 14% ranges) 9.34% per year over the past 5 years. However, the last dividends increase in 2020 was low (under 8%) at 5.3%.

The Dividend Payout Ratios (DPR) are good. The DPR for EPS for 2019 is 34% with 5 year coverage at 31%. The DPR for CFPS for 2019 is 12% with 5 year coverage at 13%. The DPR for Free Cash Flow for 2019 cannot be calculated because the FCF is negative in 2019. The 5 year coverage is 58%. The 5 year Dividend Coverage Ratio is 1.72.

Debt Ratios are fine. The Long Term Debt/Market Cap is very low and good at just 0.05. The Liquidity Ratio is good at 1.67. The Debt Ratio is also good at 1.98. The Leverage and Debt/Equity Ratios are fine at 2.02 and 1.02

The Total Return per year is shown below for years of 5 to 22 to the end of 2019. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From Years Div. Gth Tot Ret Cap Gain Div. 2014 5 9.34% 7.33% 5.85% 1.49% 2009 10 2.96% 26.19% 22.15% 4.05% 2004 15 7.83% 16.31% 12.77% 3.54% 1999 20 16.77% 13.83% 2.94% 1997 22 12.28% 10.38% 1.90%
The 5 year low, median, and high median Price/Earnings per Share Ratios are 17.3.5, 23.06 and 27.78. The corresponding 10 year ratios are 12.41, 17.23 and 23.59. The corresponding historical ratios are 9.25, 11.39 and 14.26. The current P/E Ratio is 37.88 based on a stock price of $36.36 and 2020 EPS estimate of $0.96. This stock price testing suggests that the stock price is relatively expensive.

Part of the reason that the stock is expensive for 2020 is that analysts expect the EPS to drop some 42% in 2020. If you look at the P/E Ratio for 2021 when EPS is expected to recover, the P/E Ratio is 19.55 based on a stock price of $36.36 and 2021 EPS estimate of $1.86. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a Graham Price of $14.54. The 10 year low, median, and high median Price/Graham Price Ratios are 1.15, 1.71 and 2.13. The current P/GP Ratio is 2.50 based on a stock price of $36.36. This stock price testing suggests that the stock price is relatively expensive.

However, the big drop in expected EPS for 2020 will also affect the Graham Price. The Graham Price for 2021 is 20.24. This would have a P/GP Ratio of 1.80 based on a stock price of $36.36. 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 3.35. The current P/B Ratio is 3.72 based on a stock price of $36.36, Book Value of $341.7M, and Book Value per Share of $9.78. The current P/B Ratio is 11% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a 10 year median Price/Cash Flow per Share Ratio of 10.88. The current P/CF Ratio is 9.28 based on a stock price of $36.36, Cash Flow per Share estimate for 2020 of $3.92 and Cash Flow of 136.9M. The current P/CF Ratio is 15% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get an historical median dividend yield of 4.00%. The current dividend yield is 1.65% based on dividends of $0.60 and a stock price of $36.36. The current dividend yield is 59% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year median dividend yield of 1.66%. The current dividend yield is 1.65% based on dividends of $0.60 and a stock price of $36.36. The current dividend yield is 0.8% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and at the median.

The 10 year median Price/Sales (Revenue) Ratio is 2.15. The current P/S Ratio is 2.16 based on a Revenue estimate for 2020 of $589M, Revenue per Share of $16.87 and a stock price of $36.36. Analysts expect a 10% drop in Revenue which is a lot less than the drop expected in EPS. The current P/S Ratio is 0.07% above the 10 year median P/S Ratio. This stock price testing suggests that the stock price is relatively reasonable and at the median.

Results of stock price testing is that the stock price is probably reasonable and at the median. The 10 year dividend yield test and the P/S Ratio test both show a stock price that is relatively reasonable and at the median. This stock used to be an income trust, so past dividend yields would be very high. So, I would think that the 10 year median dividend yield test is better than the historical median yield test. There is nothing wrong with the P/B Ratio or P/CF Ratio testing. There are problems with the P/E Ratio and P/GP testing as indicated above.

Is it a good company at a reasonable price? This is a dividend growth stock. It did cut dividends in the past, but that was to move from an income trust company to a corporation. I think that the stock price is reasonable. I do think that this is a worthwhile dividend growth stock to invest in.

When I look at analysts’ recommendations, I find Strong Buy (2), Buy (2), and Hold (4). The consensus would be a Buy. The 12 month stock price consensus is $38.88. This implies a total return of 8.58% with 6.93% from capital gains and 1.65% from dividends.

Most analysts seem to like to this stock on Stock Chase. Ambrose O'Callaghan on Motley Fool thinks this can do better in the future. A writer on Simply Wall Street criticizes the stock for cutting dividends in the past. However, this stock used to be an income trust and this stock had to cut dividends when they became corporations. A writer on Simply Wall Street says the intrinsic value of this stock is $31.62 which is lower than the current price of the stock. The company announces its second quarterly results on Global Newswire.

Badger Daylighting is a Canada-based company that provides nondestructive hydrovac excavation services based on its core technology, the Badger Hydrovac System. The Badger Hydrovac System is an excavation unit that is used primarily for digging in areas with buried pipes and cables. Its web site is here Badger Daylighting Ltd.

The last stock I wrote about was about was Superior Plus Corp (TSX-SPB, OTC-SUUIF) ... learn more. The next stock I will write about will be Aecon Group Inc (TSX-ARE, OTC-AEGXF) ... learn more on Wednesday, August 19, 2020 around 5 pm. Tomorrow on my other blog I will write about Women’s Earning Power.... learn more on Tuesday, August 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.

Superior Plus Corp

Sound bite for Twitter and StockTwits is: Dividend Paying Industrial. The stock price is probably relatively expensive. Main problem is analysts do not think this company will do very well in the short term. They do not seem to be able to grow their Revenue. The DPR for EPS needs to be improved. Debt Ratios could be improved. See my spreadsheet on Superior Plus Corp.

I do not own this stock of Superior Plus Corp (TSX-SPB, OTC-SUUIF). I started to follow this stock as it was an income trust company that was talked about in the Money Reporter from MPL Communications. This company changed to a corporation from Unit Trust (TSX-SPF.UN) in 2009.

When I was updating my spreadsheet, I noticed that they cannot seem to grow their revenue. Revenue is down by 6.4% per year over the past 5 years. Revenue per Share is down even more at 12.3%. Also, they have not been able to bring their Dividend Payout Ratio for EPS under control. They have decreased dividends and kept them flat. They have been flat since 2015. But 2019 has been the only year with a decent DPR for EPS, but in 2020 the EPS is not expected to cover the dividends again. Analysts expect they will be able to cover the dividend again in 2021.

The dividend yields are good with dividend growth non-existent. The current dividend yield is good (5% and 6% ranges) at 5.86%. The 5, and 10 dividend yields are also good at 6.15% and 6.22%. The historical dividend yield is high (7% and above) at 9.22%. This stock used to be an income trust and as an income trusts had very high dividend yields. The dividends have been flat since 2015. However, analysts do not expect any cuts at this point over the next two years.

The Dividend Payout Ratios (DPR) need to be improved for the EPS. The DPR for EPS for 2019 is 88% with 5 year coverage at 138%. As an income trust they could pay out more than the EPS, but when it became a corporation, it needs to get the DPR for EPS under control. The company is not expected to make much in earnings this year. The DPR for CFPS for 2019 is 26% with 5 year coverage at 36%. These are good ratios. The DPR for Free Cash Flow for 2019 is 44% with 5 year coverage at 72%. The current DPR for FCF is good, but the 5 year coverage is too high.

Debt Ratios could be improved. The Long Term Debt/Market Cap Ratio for 2019 is 0.77. This is fine, but it would be nice if it was lower than 0.50. The Liquidity Ratio for 2019 is low at 0.99. It means that the current assets cannot cover the current liabilities. However, if you add in Cash Flow after dividends, it is 1.54. The Debt Ratio for 2019 is 1.40 and this is low. I prefer it to be 1.50 or higher. Leverage and Debt/Equity Ratios at 3.50 and 2.50 are rather high. I prefer these to be below 3.00 and below 2.00, respectively.

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

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2014	5	3.37%	6.83%	0.93%	5.90%
2009	10	-7.79%	4.68%	-1.53%	6.21%
2004	15	-7.85%	-0.05%	-5.64%	5.60%
1999	20	-3.67%	12.40%	-0.25%	12.65%
1996	23	-1.42%	11.00%	-0.38%	11.37%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 4.24, 5.34 and 6.43. The corresponding 10 year ratios are 5.71, 7.59 and 9.48. The corresponding historical ratios are 12.46, 15.32 and 18.86. The current P/E Ratio is 409.67 based on a stock price of $12.29 and 2020 EPS estimate of $0.03. This stock price testing suggests that the stock price is relatively expensive.

The above makes no sense at all. There were a number of EPS losses leading to negative P/E Ratio and so very low P/E Ratios for the past 5 and 10 years. The EPS for 2020 is a drop in EPS of over 96%. The P/E Ratio for 2021 is more reasonable at 15.96, but on the high side. This testing should not be considered for this stock in determining if the stock price is reasonable or not.

I get a Graham Price of $2.03. The 10 year low, median, and high median Price/Graham Price Ratios are 1.01, 1.18 and 1.46. The current P/GP Ratio is 6.07 based on a stock price of $12.29. This stock price testing suggests that the stock price is relatively expensive.

However, the current P/GP Ratios is greatly affected the big drop in EPS for 2020. The Graham Price for 2021 is 10.26, a more reasonable value. The P/GP Ratio for 2021 is 1.20. This stock price testing suggests that the stock price is relatively reasonable but above the median. You have to wonder about this test also.

I get a 10 year median Price/Book Value per Share Ratio of 2.40. The current P/B Ratio is 2.02 based on a Book Value of $1069.8M, Book Value per Share of $6.08 and a stock price of $12.29. The current P/B Ratio is 16% 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 7.35. The current P/CF Ratio is 6.15 based on 2020 Cash Flow per Share estimate of $2.00, Cash Flow of $352M and a stock price of $12.29. The current ratio is 16% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get an historical median dividend yield of 9.22%. The current dividend yield is 5.86% based on dividends of $0.72 and a stock price of $12.29. The current yield is 36% 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 6.22%. The current dividend yield is 5.86% based on dividends of $0.72 and a stock price of $12.29. The current yield is 5.9% below 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 0.47. The current P/S Ratio is 0.84 based on 2020 Revenue estimate of $2,587M, Revenue per Share of $14.70 and a stock price of $12.29. The current ratio is 78% 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 expensive because the company is not expected to do well in the short term in terms of Revenue and Earnings. The stock price is probably relatively high for this company. The tests that I find no problems with are the P/S Ratio, the P/B Ratio, and the P/CF Ratio tests. The rest all have problems. The Dividend Yield problem is the lack the dividend growth and also yields used to be very high in the past as this company used to be an income trust.

Is it a good company at a reasonable price? I do not think the price is reasonable at this time. I hope this company will do better in the future, but it is hard to tell if it will.

When I look at analysts’ recommendations, I find Strong Buy (2), Buy (6), Hold (3). The consensus would be a Buy. The 12 month stock price consensus is $13.33. This implies a total return of 14.32% with 8.46% from capital gains and 5.86% from dividends.

Several analysts on Stock Chase says this stock is their top pick. Robin Brown on Motley Fool thinks this is a top dividend stock. A writer on Simply Wall Street thinks that this stock is not a good bet because earnings are expected to decline over the near term. A writer on Simply Wall Street says the intrinsic value of the stock is $19.38 which is above the current price. The company talks about the second quarterly results on the Financial Post via Newswire.

Superior Plus is a Canadian-based company that distributes energy and specialty chemicals. The company is organized into three business segments: Canadian propane distribution, U.S. propane distribution, and specialty chemicals. Its web site is here Superior Plus Corp.

The last stock I wrote about was about was Evertz Technologies (TSX-ET, OTC-EVTZF) ... learn more. The next stock I will write about will be Badger Daylighting Ltd (TSX-BAD, OTC-BADFF) ... learn more on Monday, August 17 around 5 pm.

Also, on my book blog I have put a review of the book The Storm Before the Calm by George Friedman 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.

Evertz Technologies Ltd

Sound bite for Twitter and StockTwits is: Dividend Paying Tech. The stock price is probably reasonable at the present time. It may be cheap. They recently cut their dividends so it is no longer, at present, a dividend growth stock, but I hope it will be one again in the future. It has very good Debt Ratios. The DPRs will be under control soon. See my spreadsheet on Evertz Technologies .

I do own this stock of Evertz Technologies (TSX-ET, OTC-EVTZF). I got the idea to investigate this stock from a G&M Article. It looked like something I might want to try out. This stock came up in a stock screen filter article that was looking for reliable dividend payers. That is companies that have reliable profits big enough to comfortably cover their dividend payments. This was in 2011.

When I was updating my spreadsheet, I noticed that this stock is down almost 30% this year. It at first recovered from March 2020 decline, but has decline again since then. This company has the end of their financial year as April 30.

The dividend yields are moderate with dividend growth currently stopped. The current dividend yield is moderate (2% to 4% range) at 2.87%. The 5, 10 and historical dividend yields are higher, but still in the moderate range at 4.40%, 4.10% and 4.00%. The dividends stopped growing in 2017 and went flat. This year, the dividends were cut by 50%.

The Dividend Payout Ratios (DPR) are too high but are expected to fall. The DPR for 2020 is 180% with 5 year coverage at 125%. The DPR for CFPS for 2020 is 120% with 5 year coverage at 84%. The DPR for Free Cash Flow for 2020 is 125% with 5 year coverage at 107%.

The DPRs are expected to fall for the next financial year of 2021 and continue to fall in 2022. For example, the DPR for EPS for 2021 is expected to be 60% in 2021 and 40% in 2022. Also, the reason for the very high DPRs for 2020 is because of a special dividend paid in 2020 of $0.90 a share. Without this special payment the DPRs would have been lower. For example, the DPR for EPS would have be 80% rather than 180%.

Debt Ratios are all very good. The company paid off their long term debt in 2020 so the Long Term Debt/Market Cap Ratio is currently 0.00. The Liquidity Ratio for 2020 is 2.85. The Debt Ratio for 2020 is 3.03. Leverage and Debt/Equity Ratios for 2020 are 1.49 and 0.49.

The Total Return per year is shown below for years of 5 to 13 to the end of 2019. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2014	5	1.15%	6.57%	0.29%	6.28%
2009	10	8.45%	8.90%	2.84%	6.06%
2006	13	11.26%	6.87%	2.12%	4.75%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 14.54, 16.68 and 19.45. The corresponding 10 year ratios are 14.51, 17.19 and 20.26. The corresponding historical ratios are 14.47, 17.70 and 20.21. The current P/E Ratio is 20.93 based on a stock price of $12.56 and 2021 EPS estimate of $0.60. This stock price testing suggests that the stock price is relatively expensive.

A problem is that analysts expect the EPS for 2021 to drop 53% in 2021 and then go back up in 2022. The EPS expected in 2022 is $0.91 and here the P/E Ratio would be 13.80. This would suggest that the stock price is relatively cheap.

I get a Graham Price of $12.56. The 10 year low, median, and high median Price/Graham Price Ratios are 1.37, 1.66 and 1.93. The current P/GP Ratio is 1.74 based on a stock price of $12.56. 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 3.54. The current P/B Ratio is 3.25 based on a stock price of $12.56, Book Value of $295M and a Book Value per Share of $3.86. The current ratio is 8% 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 14.69. The current P/CF Ratio is 18.47 based on a stock price of $12.56, Cash Flow per Share estimate for 2021 of $0.68 and Cash Flow of $52M. The current ratio is 26% above the 10 year ratio. This stock price testing suggests that the stock price is relatively expensive.

A problem is that analysts expect the Cash Flow per Share to drop by 52% in 2021, but go back up in 2021 to $0.87 with a Cash Flow of $66.5M. This will give a P/CF Ratio of 14.44 and this is 2% below the 10 year median of 14.69. This would suggest that the stock price is relatively reasonable.

I get an historical median dividend yield of 4.00%. The current dividend yield is 2.87% based on dividends of $0.36 and a stock price of $12.56. The current yield is 28% below he historical dividend yield. This stock price testing suggests that the stock price is relatively expensive.

I get an historical median dividend yield of 4.10%. The current dividend yield is 2.87% based on dividends of $0.36 and a stock price of $12.56. The current yield is 30% below he historical dividend yield. This stock price testing suggests that the stock price is relatively expensive.

The 10 year median Price/Sales (Revenue) Ratio is 3.41. The current P/S Ratio is 2.47 based on a stock price of $12.56, Revenue estimate for 2021 of $388M, and Revenue per Share of $5.08. The current ratio is 27% 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 reasonable. The P/S Ratio testing says the stock price is relatively cheap. The P/B Ratio says that the stock is relatively reasonable and below the median. The problem with the dividend yield tests is that the dividends were recently cut by 50%. There is nothing wrong with the P/S Ratio test or the P/B Ratio test. The problems with the P/E test and P/CF tests are noted above.

Is it a good company at a reasonable price? I think that the stock price for this company is reasonable, if not getting into the cheap range. It seems to be having some problems at present but I still believe in this stock and will continue to own it. I am not planning additional buys at this time.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (2) and Hold (1). The consensus would be a Buy. The 12 month stock price consensus is $14.50. This implies a total return of 18.31% with 15.45% from capital gains and 2.87% from dividends.

The last three analysts on Stock Chase give it a Hold rating, but like the stock. Motley Fool Staff on Motley Fool name this stock in their top 10 tech stocks for Millennials. A writer on Simply Wall Street says the P/E Ratio is high considering the weak earnings lately of this company. A writer on Simply Wall Street talks about analysts downgrades. The April 2020 Annual report is highlighted on Newsfile Corp.

Evertz Technologies Ltd is a Canadian provider of telecommunications equipment and technology solutions to the television broadcast and new-media industries. Its web site is here Evertz Technologies .

The last stock I wrote about was about was Andrew Peller Ltd (TSX-ADW.A, OTC-ADWPF) ... learn more. The next stock I will write about will be Superior Plus Corp (TSX-SPB, OTC-SUUIF) ... learn more on Friday, August 14, 2020 around 5 pm. Tomorrow on my other blog I will write about Dividend Growth Stock.... learn more on Thursday, August 13, 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.

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.