Brookfield Asset Management Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Financial. Stock price might be reasonable, but on the high side. Dividend yields are low. DPRs are good. The company is not expected to have a good year in 2020. See my spreadsheet on Brookfield Asset Management Inc.

I do not own this stock of Brookfield Asset Management Inc (TSX-BAM.A, NYSE-BAM). I used to own an earlier version of this stock as Hees International, then Edper Group and then EdperBrascan back in 1987 to 1999.

When I was updating my spreadsheet, I noticed analysts do not expect this company to have a good year in 2020, but a recovery is expected in 2021. For example, analysts expect EPS to drop by 92% in 2020 to $0.14, but then for the EPS to be much better in 2021 at $1.54. Also, in 2020 there was a 3 to 2 split in shares.

The dividend yields are currently low with dividend growth currently moderate. The current dividend yield is low (below 2%) at 1.42%. The 5 and 10 year median dividend yields are low at 1.46% and 1.52%. The historical median dividend yield is moderate (2% to 4% ranges) at 2.09%. Before 2009, the dividend yields were in the moderate range. The dividend growth is moderate (8% to 14% ranges) at 8.79% per year over the past 5 years. The last dividend increase was in 2020 and it was for 12.5%. Dividends are paid in US$.

The Dividend Payout Ratios (DPR) are good. DPR for EPS for 2019 is 24.62% with 5 year coverage at 25%. However, the DPR for 2020 is expected to be 343% before falling back to 31% in 2021. The DPR for CFPS for 2019 is 9% with 5 year coverage at 10%. The DPR for Free Cash Flow for 2019 is 31% with 5 year coverage at 35%.

Debt Ratios are fine. Because this a financial, I look to see if the major debt is covered by assets. The Long Term Debt/Assets Ratio for 2019 is fine at 0.87. The Liquidity Ratio is low 1.11, but generally this is not important to financials. The Debt Ratio is fine at 1.56. The Leverage and Debt/Equity Ratio at 2.77 and 1.77 are a bit high but fine.

The Total Return per year is shown below for years of 5 to 32 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	11.27%	15.57%	14.09%	1.48%
2009	10	8.61%	19.72%	17.01%	2.71%
2004	15	7.16%	15.09%	12.52%	2.57%
1999	20	7.56%	20.27%	16.13%	4.15%
1994	25	6.00%	19.19%	14.82%	4.37%
1989	30	5.12%	10.94%	8.89%	2.05%
1987	32	5.77%	12.33%	9.77%	2.57%

The Total Return per year is shown below for years of 5 to 32 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	8.79%	12.92%	11.58%	1.34%
2009	10	6.32%	17.35%	14.60%	2.75%
2004	15	6.63%	14.90%	12.08%	2.82%
1999	20	8.24%	22.08%	17.19%	4.89%
1994	25	6.33%	19.74%	15.18%	4.57%
1989	30	4.72%	10.47%	8.48%	1.99%
1987	32	5.77%	12.46%	9.77%	2.69%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 14.21, 18.65 and 22.97. The corresponding 10 year ratios are 11.70, 12.90 and 14.86. The corresponding historical ratios are 11.47, 13.67 and 15.44. The current P/E Ratio is 242.01 based on a stock price of $44.52 and EPS estimate for 2020 of $0.18 ($0.14 US$). This stock price testing suggests that the stock price is relatively expensive. This test is done using CDN$.

However, analysts expect the EPS to drop some 92% in 2020. If we use the EPS estimate for 2021 of $2.02 ($1.54 US$) and a current stock price of $44.52, the P/E Ratio is 22.00. If we use the EPS estimate for 2022 of $2.37 ($1.80 US$) we get a P/E Ratio of 18.82. None of these are showing as a reasonable stock price and all are showing the stock price as relatively expensive. This test is done using CDN$.

I get a Graham Price of $10.02. The 10 year low, median, and high median Price/Graham Price Ratios are 0.77, 0.86 and 1.01. The current P/GP Ratio is 4.44 based on a stock price of $44.52. This stock price testing suggests that the stock price is relatively expensive. This test is done using CDN$.

Because the 2020 EPS estimate affects the Graham Price, I will look at the next two years also. The Graham Price for 2021 is $33.25. The P/GP Ratio would be 1.34 based on a stock price of $44.52. The Graham Price for 2022 is $35.94. The P/GP Ratio would be 1.24. None of these are showing as a reasonable stock price and all are showing the stock price as relatively expensive. This test is done using CDN$.

I get a 10 year median Price/Book Value per Share Ratio of 1.32. The current P/B Ratio is 1.83 based on a Book Value of $27,925M, Book Value per Share of $18.47 and a stock price of $33.90. The current P/B Ratio is 39% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This test is done using US$. You will get a similar answer using CDN$.

I get a 10 year median Price/Cash Flow per Share Ratio of 10.29. The current P/CF Ratio is 11.77 based on Cash Flow per Share estimate for 2020 of $2.88, Cash Flow of $4,353M and a stock price of $33.90. The current ratio is 14% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median. This test is done using US$. You will get a similar answer using CDN$.

A drop in CFPS is expected in 2020 of 31%. Because of this I will look at estimate for the next two years. The P/CF Ratio for 2021 is 10.69 based on a stock price of $33.90, Cash Flow per Share of $3.17 and Cash Flow of $4,792M. This P/CF Ratio is 4% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median. This test is done using US$. You will get a similar answer using CDN$.

The P/CF Ratio for 2022 is 8.97 based on a stock price of 33.90, Cash Flow per Share of $3.78 and Cash Flow of $5,714M. This P/CF Ratio is 13% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. This test is done using US$. You will get a similar answer using CDN$.

I get an historical median dividend yield of 2.43%. The current dividend yield is 1.42% based on dividends of $0.63 and a stock price of $44.52. The current dividend yield is 42% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive. This test is done using CDN$.

I get a 10 year median dividend yield of 1.57%. The current dividend yield is 1.42% based on dividends of $0.63 and a stock price of $44.52. The current dividend yield is 10% below the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median. This test is done using CDN$.

The 10 year median Price/Sales (Revenue) Ratio is 1.13. The current P/S Ratio is 0.93 based on Revenue estimate for 2020 of $55,221M, Revenue per Share of $36.53 and a stock price of $33.90. The current ratio is 18% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. This test is done using US$. You will get a similar answer using CDN$.

Results of stock price testing suggest that the stock price might be reasonable. Both the 10 year median dividend yield test and the P/S Ratio tests show this, but the dividend yield is showing the stock price above the median with the P/S Ratio test showing the stock price below the median. There are problems with a number of tests, but the P/B Ratio test. The P/B Ratio test is good and it is showing the stock price as relatively expensive.

Is it a good company at a reasonable price? The stock price would seem to be reasonable, but it is on the high side. A lot of people like this company and it is a dividend growth company. However, I do worry about the complexity of this company.

When I look at analysts’ recommendations, I find Strong Buy, (4), Buy (6) and Hold (2). The consensus would be a Buy. The 12 month stock price is $46.98 ($35.75 US$). This implies a total return of $6.93 with 1.42% from dividends and 5.52% from capital gains.

Some analysts like this company and some do not on Stock Chase. Robin Brown on Motley Fool thinks this is a stock to buy and hold forever in your TFSA. The executive overview gives this stock 5 stars out of 5 on Simply Wall Street. American Equity Investment Life Holding Co and Brookfield team up according to a Bloomberg article. The blogger Dividend Earner has reviewed this stock and likes it.

Brookfield Asset Management Inc owns and manages commercial property, power, and infrastructure assets. Located around the world, its assets are concentrated in the United States, Canada, Brazil, and Australia. Its web site is here Brookfield Asset Management Inc.

The last stock I wrote about was about was Molson Coors Canada (TSX-TPX.B, NYSE-TAP) ... learn more. The next stock I will write about will be CCL Industries Inc (TSX-CCL.B, OTC-CCDBF) ... learn more on Wednesday, October 28, 2020 around 5 pm. Tomorrow on my other blog I will write about Magna International.... learn more on Tuesday, October 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.

Molson Coors Canada

Sound bite for Twitter and StockTwits is: Dividend Paying Consumer. The stock price is cheap. The company has suspended dividends. See my spreadsheet on Molson Coors Canada.

I do not own this stock of Molson Coors Canada (TSX-TPX.B, NYSE-TAP). In 2008 I did a spreadsheet on this stock as it has recently been recommended and generally, beer companies make good money. Labatt’s was one of the original companies that I purchased and I did very well with it before it was bought out.

When I was updating my spreadsheet, I noticed that this stock hit a peak in 2016 and has been going down ever since. The company suspended the dividend this year of 2020. However, analysts expect that the dividend will be reinstated in 2021.

The dividend yields have been moderate to low but dividends are currently suspended, although analysts expect that they will reinstated next year. The dividend yield was moderate (2% to 4%) at 3.64% before the dividend was suspended. The 5, and 10 median dividend yields are moderate at 2.05% and 2.07%. The historical median dividend yield is low (below 2%) at 1.88%. After dividends being flat for a few years, the company had raised the dividends by 39% in early 2020 before suspending the dividends. Analysts expect dividends to come in at a lower level when they are reinstated.

The Dividend Payout Ratios (DPR) were fine, but dividends are suspended. The DPR for EPS for 2019 was 176% with 5 year coverage at 34%. 2019 was not a good year for the company. The DPR for CFPS for 2019 was 20% with 5 year coverage also at 20%. The DPR for Free Cash Flow for 2019 was 33% with 5 year coverage at 32%.

Debt Ratios could be improved, especially, the Liquidity Ratio. The Long Term Debt/Market Cap Ratio for 2019 was 0.67. The current ratio is 1.01. This is because of a drop in the stock price. The stock has dropped 35% this year, but it has been dropping since 2016. The Liquidity Ratio for 2019 is 0.59. If you add in cash flow after dividends it is just 0.98. If you add back in the current portion of the long term debt you get to 1.22. This ratio is not good. The Debt Ratio at 1.90 is good, however. The Leverage and Debt/Equity Ratios are fine at 2.15 and 1.13.

The Total Return per year is shown below for years of 5 to 23 to the end of 2019 and symbol TPX.B. 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	8.20%	-0.92%	-3.72%	2.81%
2009	10	10.22%	7.39%	4.34%	3.05%
2004	15	8.23%	6.60%	3.19%	3.41%
1999	20	8.48%	13.18%	8.28%	4.90%
1996	23	6.73%	10.29%	6.52%	3.77%

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

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2014	5	5.78%	-3.66%	-6.27%	2.61%
2009	10	7.86%	4.91%	1.90%	3.01%
2004	15	10.99%	4.98%	2.37%	2.61%
1999	20	9.44%	6.13%	3.69%	2.44%
1994	25	8.59%	11.10%	7.73%	3.37%
1990	29	7.36%	8.52%	5.89%	2.63%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 12.01, 14.12 and 16.61. The corresponding 10 year ratios are 12.30, 14.76 and 17.41. The corresponding historical ratios are 11.92, 14.18 and 16.64. The current P/E Ratio is 13.55 based on a stock price of $47.02 and EPS estimate for 2020 of $3.47 ($2.63 US$). This stock price testing suggests that the stock price is relatively reasonable and below the median. This is in CDN$.

I get a Graham Price of $77.01. The 10 year low, median, and high median Price/Graham Price Ratios are 0.82, 0.92 and 1.05. The current P/GP Ratio is 0.61 based on a stock price of $47.02. This stock price testing suggests that the stock price is relatively cheap. This is in CDN$.

I get a 10 year median Price/Book Value per Share Ratio of 1.13. The current P/B Ratio is 0.61 based on a Book Value of $13,003M, Book Value per Share of $57.59 and a stock price of $35.40. The current ratio is 56% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This is in US$. You will get a similar result using CDN$.

I get a 10 year median Price/Cash Flow per Share Ratio of 9.68. The current P/CF Ratio is 8.89 based on Cash Flow per Share estimate for 2020 of $3.98, Cash Flow of 898.7M and a stock price of $35.40. The current ratio is 8% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. This is in US$. You will get a similar result using CDN$.

Problem with the P/CF Ratio test is that analysts expect a big drop in Cash Flow for 2020 of some 53%. They expect the Cash Flow to recover in 2021. If you use the P/CF Ratio for 2021 of 4.38, the ratio drops by 55%. This stock price testing suggests that the stock price is relatively cheap. This is in US$. You will get a similar result using CDN$.

I cannot do an historical median dividend yield test because the dividends have been suspended.

The 10 year median Price/Sales (Revenue) Ratio is 2.30. The current P/S Ratio is 0.83 based on Revenue estimate for 2020 of $9,678M, Revenue per Share of $42.86 and a stock price of $35.40. The current ratio is 64% below the 10 year ratio. This stock price testing suggests that the stock price is relatively cheap. This is in US$. You will get a similar result using CDN$.

Results of stock price testing is that the stock price is probably cheap. The P/S Ratio test, which is a favourite of mine says the stock price is cheap. The P/B Ratio test is also a good one and it says the stock is cheap. The other tests mostly show the stock price as reasonable and below the median.

Is it a good company at a reasonable price? The stock price is relatively cheap. This company used to be a dividend growth company and it will probably be that again. However, it does have problems with debt and it has had a hard time growing since the 2008 recession from which there been a long slow recovery. A lot of companies are having this problem.

When I look at analysts’ recommendations, I find Strong Buy (7), Hold (8), Underperform (3) and Sell (1). The consensus would be a Buy. The 12 month stock price is $58.26 ($44.16 US$). This implies a total return of 23.90% in CDN$ and 24.75 %

There is not many analysts following this stock and the latest entry on Stock Chase is negative. Vishesh Raisinghani on Motley Fool thought last year they it was trading below its book value and so was a bargain. The site Simply Wall Street gives this stock 2 stars out of 5 and says a negative is declining earnings. A writer on Simply Wall Street thinks the company has too much debt.

Molson Coors Canada Inc is a large global brewer that produces and sells beer and other malt beverages. Major brands include Coors Light, Molson Canadian, Staropramen, Carling, Miller Lite, Keystone, Creemore Springs, Cobra and Doom Bar, Blue Moon, and Leinenkugel. Most of the firm's revenue is generated in the United States. Molson's other large markets are Canada, Central and Eastern Europe, and the United Kingdom. Its web site is here Molson Coors Canada.

The last stock I wrote about was about was Pason Systems Inc (TSX-PSI, OTC-PSYTF) ... learn more. The next stock I will write about will be Brookfield Asset Management Inc (TSX-BAM.A, NYSE-BAM) ... learn more on Monday, October 26, 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.

Pason Systems Inc

Sound bite for Twitter and StockTwits is: Dividend Paying Industrial. The stock price seems cheap. Debt Ratios are very good and this is very positive for the long term survival of this company. They are having trouble covering their dividends. However, they have not completely cancelled the dividend so management must feel that they can cover this dividend adequately in the near future. Analysts also believe that the dividends will not fall any further. It used to be a dividend growth company and it maybe that again. See my spreadsheet on Pason Systems Inc.

I do not own this stock of Pason Systems Inc (TSX-PSI, OTC-PSYTF). I read a report on this stock in the Buy and Sell Advisor in September 2013. I had not heard of this dividend growth company before so I decided to investigate it.

When I was updating my spreadsheet, I noticed that they just cut their dividend this year by 74%. This means that the dividend growth for years 5, 10 and 15 years is -21.71%, -3.97% and 6.30% per year. If you take into account the almost 60% drop in the stock price this year, the chart of dividends and total return to date, can look different from the one to the end of 2019 below. It appears that shareholders who have been invested over 20 years, have still make money. However, it is not surprising this stock has been hit as it services the oil industry.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2014	5	-21.71%	-17.07%	-22.79%	5.72%
2009	10	-3.97%	-2.65%	-9.20%	6.55%
2004	15	6.30%	-1.33%	-6.44%	5.11%
1999	20		13.88%	6.09%	7.79%
1996	24		17.76%	10.04%	7.71%

The dividend yields are moderate with dividend growth currently stopped. The current dividend yield is moderate (2% to 4% ranges) at 3.76%. The 5, 10 and historical dividend yields are also moderate at 3.58%, 3.30% and 2.44%. The dividends were getting high before the stock tanked, but the company also has recently cut the dividend by 74% this year so the yield is still moderate.

The Dividend Payout Ratios (DPR) are much too high. The DPR for EPS for 2019 is 117% with 5 year coverage at 345%. The company has not been able to cover the dividends by EPS since 2014. The DPR for CFPS for 2019 is 56% with 5 year coverage at 66%. However, analysts do not think this company will be able to cover their dividends with cash flow in 2020 as the expected coverage for 2020 is 141%. The DPR for Free Cash Flow for 2019 is 75% with 5 year coverage at 92%. Analysts do not think that this company will be covering the dividend with FCF in 2020 as expected ratio for 2020 is 145%.

Debt Ratios are very good. The company does not have much debt. The Long Term Debt/Market Cap for 2019 is 0.01 and it is the same currently. The Liquidity Ratio for 2019 is 4.15. The Debt Ratio for 2019 is 4.79. These are both very good and very high. The Leverage and Debt/Equity Ratios are low and good at 1.26 and 0.26.

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	3.94%	-5.83%	-9.74%	3.92%
2009	10	11.92%	5.74%	1.19%	4.55%
2004	15	18.23%	5.91%	2.35%	3.56%
1999	20		15.73%	11.23%	4.50%
1996	23		19.72%	14.92%	4.80%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 20.02, 26.77 and 30.95. The corresponding 10 year ratios are 21.30, 26.79 and 32.12. The corresponding historical ratios are 13.59, 19.77 and 24.74. The current R/E Ratio is negative 106.40 and so this test cannot be done. The P/E Ratio for 2021 is negative 53.20 so this is not help.

I estimate a Graham Price of $7.57. I have to estimate because of the earning losses. The 10 year low, median, and high median Price/Graham Price Ratios are 1.85, 2.24 and 2.71. The current P/GP Ratio is 0.70 based on a stock price of $5.32. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median Price/Book Value per Share Ratio of 3.96. The current P/B Ratio is 1.32 based on a Book Value of $341.35M, Book Value per Share of $4.04 and a stock price of $5.32. The current ratio is 67% 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 13.06. The current P/CF Ratio is 15.65 based on Cash Flow per Share estimate for 2020 of $0.34, Cash Flow of $28.7M and as stock price of $5.32. The current ratio is 19.8% above the 10 year ratio. This stock price testing suggests that the stock price is relatively expensive.

The problem with the P/CF Ratio is that analysts expect the Cash Flow per Share to drop 74% in 2020. If we use the Cash Flow per Share estimate for 2021 of $0.41, the P/CF Ratio is 12.98 and .6% below the 10 year median. If we use the Cash Flow per Share estimate for 2022 of $0.76, the P/CF Ratio of 2022 is 25% below the 10 year median ratio.

I get an historical median dividend yield of 2.44%. The current dividend yield, even with the 74% drop in dividends, is 3.76%, based on dividends of $0.20 and a stock price of $5.32. The current dividend yield is 54% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median dividend yield of 3.30%. The current dividend yield, even with the 74% drop in dividends, is 3.76%, based on dividends of $0.20 and a stock price of $5.32. The current dividend yield is 14% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.

The 10 year median Price/Sales (Revenue) Ratio is 4.77. The current P/S Ratio is 3.00 based on Revenue estimate for 2020 of $150M, Revenue per Share of $1.77 and a stock price of $5.32. The current ratio is 37% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

Results of stock price testing is that the stock price is probably cheap. The stock price has fallen 60% this year. There are problems with some of the tests as noted above. Only the P/S Ratio and the P/B Ratio tests have no problems and both these tests show the stock price as cheap.

Is it a good company at a reasonable price? The stock price seems to be cheap. Since this industrial serves the oil industry, it is risky. I do not personally invest in oil and gas stocks, but I have invested in some that services the oil and gas industry. What I like about this company is the very conservative debt ratios. This sets up the company to survive a lot of difficult conditions. Todays conditions for such a company is certainly difficult.

When I look at analysts’ recommendations, I find only Hold (6) recommendations. The consensus would be a Hold. The 12 month stock price is $6.83. This implies a total return of 32.14% with 28.38% from capital gains and 3.76% from dividends.

Analysts seem to have lost interest in this company on Stock Chase as last entries are dated in 2019. Aditya Raghunath on Motley Fool thinks this company has great upside potential . A writer on Simply Wall Street thinks this is not a good dividend stock. . .

Pason Systems Inc is an oilfield specialist with fully integrated drilling data solutions. A host of products allow customers to collect, manage, report, and analyze drilling data for performance optimization and cost control. The company operates in three geographic segments: Canada, the United States, and International (Latin America, Offshore, the Eastern Hemisphere, and the Middle East). Its web site is here Pason Systems Inc.

The last stock I wrote about was about was North West Company (TSX-NWC, OTC-NWTUF) ... learn more. The next stock I will write about will be Molson Coors Canada (TSX-TPX.B, NYSE-TAP) ... learn more on Friday, October 23, 2020 around 5 pm. Tomorrow on my other blog I will write about Best Stocks I Follow 3.... learn more on Thursday, October 22, 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.

North West Company

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. The stock price is probably reasonable and at the median. This is an interesting company because of the market it serves. It has done well for shareholders over the longer term. See my spreadsheet on North West Company.

I do not own this stock of North West Company (TSX-NWC, OTC-NWTUF). I wanted to review all the income trust stocks touted in the Money Show of 2009. There was a lot of talk at this show about some of the Income Trust being currently good buys with very good yields. This stock changed from an income trust to a corporation in 2011.

When I was updating my spreadsheet, I noticed that this stock’s price is higher now that before the March crash. The stock price is the highest it has ever been. It is up 121.8% since the March low. It is up 32.2% since prior to March crash. It has a financial year ending in January each year so the last year’s financial statements are for January 31, 2020. This is an interesting stock that has provided a decent return for shareholders over the longer term.

The dividend yields are moderate with dividend growth low. The current dividend yield is moderate (2% to 4% ranges) at 4.16%. The 5, 10 and historical median dividend yields are moderate at 4.36%, 4.51% and 4.78%. The dividend growth is current low with the growth over the past 5 years are 2.62% per year. The last increase was in 2020 and it was for 9.09%, which is a moderate rate. The company increased the dividends when it became an income trust and then decreased them when it became a corporation again. Income trust going to corporations have had a hard time getting the DPR for EPS under control.

The Dividend Payout Ratios (DPR) are fine. The DPR for EPS for 2020 is 79%, with 5 year coverage at 81%. The DPR for CFPR for 2020 is 31% with 5 year coverage at 35%. The DPR for Free Cash Flow using values from Morningstar is 121% with 5 year coverage 128%. None of the sites I looked at agree on FCF, but they seem to agree that the DPR is too high. However, they also seem to agree that the coverage will be good for 2021.

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2020 is 0.30 and is good. The Liquidity Ratio for 2020 is 2.06. The current one is lower at 1.37, but with cash flow after dividends it is 1.89. The current Liquidity Ratio is low because of current long term debt due. The Debt Ratio for 2020 is 1.54 with the current one being 1.64. These ratios are good. The Leverage and Debt/Equity Ratios 2.94 and 1.91 are fine.

The Total Return per year is shown below for years of 5 to 29 to the end of 2019. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below. (I have more years of data on dividends than stock price.)

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2014	5	2.62%	5.58%	0.85%	4.74%
2009	10	0.00%	9.19%	3.70%	5.49%
2004	15	5.40%	15.15%	7.19%	7.96%
1999	20	6.15%	20.19%	9.75%	10.44%
1994	25	9.66%	16.88%	8.83%	8.05%
1990	29	8.98%	17.75%	9.67%	8.08%
1988	31	8.68%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 16.43, 18.12 and 20.66. The corresponding 10 year ratios are 15.94, 18.09 and 20.12. The corresponding historical ratios are 9.98, 12.97 and 15.36. The current P/E Ratio is 13.11 based on a stock price of $34.60 and 2021 EPS estimate of $2.64. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $23.74. The 10 year low, median, and high median Price/Graham Price Ratios are 1.50, 1.71 and 1.87. The current P/GP Ratio is 1.46 based on a stock price of $34.60. 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 3.58. The current P/B Ratio is 3.63 based on a stock price of $34.60, Book Value of $462.4M and Book Value per Share of $9.48. The current P/B Ratio is 1.8% 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 9.94. The current P/CF Ratio is 7.65 based on Cash Flow per Share estimate for 2021 of $4.52, Cash Flow of $220.4M and a stock price of $34.60. The current ratio is 23% below the 10 year ratio. This stock price testing suggests that the stock price is relatively cheap.

I get an historical median dividend yield of 4.78%. The current dividend yield is 4.16% based on dividends of $1.44 and a stock price of $34.60. The current dividend is 13% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a 10 year median dividend yield of 4.51%. The current dividend yield is 4.16% based on dividends of $1.44 and a stock price of $34.60. The current dividend is 8% 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 71. The current P/S Ratio is 0.72 based on Revenue estimate for 2021 of $2,347M, Revenue per Share of $48.14 and a stock price of $34.60. This stock price testing suggests that the stock price is relatively reasonable but at the median.

Results of stock price testing is that the stock price is probably reasonable but at or above the median. Both dividend yield tests show the stock price as reasonable but above the median. However, this test could be considered to be compromised by the fast that this company spent time as an income trust. The P/S Ratio test show the stock price reasonable and at the median. Others, expect for the P/B Ratio test, show the stock price as cheap.

Is it a good company at a reasonable price? The company probably has a reasonable stock price. This is an interesting company because of the market it serves. However, it is a dividend growth company and have provided solid returns for shareholders over the longer term.

When I look at analysts’ recommendations, I find Buy (1) and Hold (4) recommendations. The consensus would be a Hold. The 12 month stock price is $36.00. This implies a total return of 8.21% with 4.16% from dividends and 4.05% from capital gains.

A couple of analysts on Stock Chase talk about how they have an monopoly in the markets they serve . Daniel Da Costa on Motely Fool says this is a top defensive stock. A writer on Simply Wall Street says that even after the last jump on the stock value, the P/E Ratio of 15.8 is lower than the market’s 16.00 P/E Ratio. A writer on Simply Wall Street says that although the company has a high ROE, its earnings growth is disappointing. Allan Tong on Stock Chase names this stock as one of the 5 best dividend stocks for Canadians.

The North West Co Inc is a Canada-based company that is principally engaged in retail business in underserved rural communities and urban neighborhoods. The company operates business in Northern Canada, Western Canada, rural Alaska, the South Pacific islands, and the Caribbean, with around two thirds of the company's total revenue coming from the Canadian market. Its web site is here North West Company.

The last stock I wrote about was about was Equitable Group Inc (TSX-EQB, OTC-EQGPF) ... learn more. The next stock I will write about will be Pason Systems Inc (TSX-PSI, OTC-PSYTF) ... learn more on Wednesday, October 21, 2020 around 5 pm. Tomorrow on my other blog I will write about Four Dividend Paying Tech Stocks.... learn more on Tuesday, October 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.

Equitable Group Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Financial. This stock’s price seems to be reasonable and below the median. The stock has not recovered fully from the March lows and is 27.8% down this year. DPR rates are good. Dividend yield low, but increases moderate. This stock is riskier than most Canadian banks because of its clientele. See my spreadsheet on Equitable Group Inc.

I do not own this stock of Equitable Group Inc (TSX-EQB, OTC-EQGPF). I had read a glowing report on investing on this company in 2013, so I decided to check it out. It was interesting as it was loaning money to new immigrants, a class of people who generally have a difficult time getting loans and mortgages from our regular banks. It sounded intriguing.

When I was updating my spreadsheet, I noticed that the stock price has fallen a lot this year by some 27.8%. Because of this, the Total Return to date is lower than the Total Return to the end of last year. This company hit its highest every level in November 2019 at $118.98.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2014	5	13.07%	10.69%	8.93%	1.76%
2009	10	11.80%	14.06%	12.20%	1.86%
2004	15	11.45%	9.57%	8.09%	1.48%
2003	16		8.81%	7.48%	1.33%

The dividend yields are low with dividend growth moderate. The current dividend yield is low (below 2%) at 1.87%. The 5, 10 and historical dividend yields are also low at 1.50%, 1.55% and 1.47%. The dividend growth is moderate (8% to 14% range) with the last 5 years increase at 13.07% per year. The most recent increase was for 2020 and it was for 5.7%. In the past they have had more than one increase in a year. The first increase in 2020 was for 6.1%.

The Dividend Payout Ratios (DPR) are good. The DPR for EPS for 2019 is 10% with 5 year coverage also at 10%. The DPR for CFPS for 2019 is 7% with 5 year coverage at 5%. The DPR for Free Cash Flow for 2019 is 9% with 5 year coverage at 10%.

Debt Ratios are fine but Leverage and Debt/Equity Ratios could be improved. Because this is a financial, I am looking at Cash and Investment Coverage of the long term Debt. The Ratio is fine at 0.93. I get a Liquidity Ratio of 5.97, but this is basically unimportant for a financial. The Debt Ratio for 2019 is 1.05 and that is fine for a financial. The Leverage and Debt/Equity Ratios at 19.34 and 18.34 are a bit high even for a bank.

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

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2014	5	13.07%	11.90%	10.74%	1.16%
2009	10	11.80%	19.36%	17.80%	1.56%
2004	15	11.45%	12.41%	11.19%	1.21%
2003	16		11.25%	10.18%	1.07%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 5.41, 6.43 and 7.70. The 10 year corresponding ratios are 5.46, 6.88 and 8.03. The corresponding historical ratios are 5.58, 7.10 and 8.57. The current P/E Ratio is 7.31 based on a stock price of $79.00 and 2020 EPS estimate of 10.80. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a Graham Price of $143.63. The 10 year low, median, and high median Price/Graham Price Ratios are 0.45, 0.55 ad 0.66. The current P/GP Ratio is 0.55 based on a stock price of $79.00. This stock price testing suggests that the stock price is relatively reasonable and at the median.

I get a 10 year median Price/Book Value per Share Ratio of 1.03. The current P/B Ratio is 0.93 based on a Book Value of $1,426.83, Book Value per Share of $84.89 and a stock price of $79.00. The current ratio is 9.7% 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 0.48 (because of years with negative. If you only look at positive figures, the P/CF Ratio is 6.04. The current ratio is P/CF Ratio 3.24. The current ratio is 46% below the 10 year median ratio of positive values. This stock price testing suggests that the stock price is relatively

I get an historical median dividend yield of 1.47%. The current dividend yield is 1.87% based on a stock price of $79 and dividends of $1.48. The current dividend yield is 27% 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 1.55%. The current dividend yield is 1.87% based on a stock price of $79 and dividends of $1.48. The current dividend yield is 20.8% 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 3.24. The current P/S Ratio is 2.69 based on Revenue estimate for 2020 of $493M, Revenue per Share of $29.33 and a stock price of $79.00. The current ratio is 16.8% 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 and below the median. Both the dividend yield tests are showing the stock price as relatively cheap, but this is not confirmed by the P/S Ratio test which is showing the stock price as relatively reasonable and below the median. There are not problems with the other tests.

Is it a good company at a reasonable price? I think that the stock price is currently reasonable. This financial stock is riskier that other Canadian Banks, but might have a place in a dividend growth stock portfolio as long as people understand the risk.

When I look at analysts’ recommendations, I find Buy (4), Hold (2) and Underperform (1). The consensus would be a Buy. The 12 month stock price is $91.25. This implies a total return of 17.38% with 1.87% from dividends and 15.51% from capital gains.

The latest entry says Buy on Stock Chase but Stock Chase gives it only 3 stars out of 5. Jed Lloren Motley Fool thinks this stock should be part of a dividend growth portfolio. The site Simply Wall Street gives this stock 4 starts out of 5. A writer on Simply Wall Street talks about the CEO’s remuneration. CEO talks about his company on BNN Bloomberg. You have to sit through two short commercials first, but it is worth hearing what the CEO has to say.

Equitable Group Inc is a Canadian company that operates business through Equitable Bank, the company's subsidiary. It owns several business lines, including single-family lending services, commercial lending services; securitization financing, and deposit services, and deposit notes. The company also runs a digital bank under the EQ Bank brand. The company operates business across Canada, with the majority of mortgage principal coming from Ontario, Alberta, and Quebec. Its web site is here Equitable Group Inc.

The last stock I wrote about was about was Medtronic PLC (NYSE-MDT) ... learn more. The next stock I will write about will be North West Company (TSX-NWC, OTC-NWTUF) ... learn more on Monday, October 19, 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.

Medtronic PLC

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. The stock price would seem to be expensive at the present time. the stock has had its ups and downs over the years, but seems to be doing fine at present. The company has good debt ratios. See my spreadsheet on Medtronic PLC.

I do not own this stock of Medtronic PLC (NYSE-MDT). In 2009 I was looking for a good US stock for my US$ account. I had heard good things about this stock and also it is in Health Care sector which is a weak sector in Canada. This is one of the few US stocks that I follow.

When I was updating my spreadsheet, I noticed on my spreadsheet, that the 5 year Internal Rate of Return (IRR) calculations ending between 2005 and 2012 for Canadian were negative. Prior to that the IRR was positive and after 2012 they were again positive. For example, the 5 year IRR ending in 2012 was negative 6.73% total return. The 5 year IRR ending in 2020 was 10.76%. These IRR are in Canadian currency. However, you get a similar result in US$.

Also, over the past couple of years, the earnings are going up, but revenue is not. The cash flow is going up but the Book Value is not. Earnings are up 50.22% and 3.81 for the past couple of years. Revenue is up by 2.02 and down by 5.38% over the past 2 years. Cash Flow is up 49.59% and 3.24% over the past two years. Book Value is down by 0.24% and up by 1.26% over the past two years.

The dividend yields are low to moderate with dividend growth moderate. The current dividend yield is moderate (2% to 4% ranges) at 2.32%. The 5 and 10 year median dividend yields are moderate (2% to 4% ranges) at 2.22% and 2.22%. The historical median dividend yield is low at just 0.91%. The dividend increases for the past 5 years is moderate (8% to 14% ranges) at 12.10% per year. The most recent dividend increase is low (below 8%) at 7.4% and the increase was made in 2020.

The Dividend Payout Ratios (DPR) are fine but are going higher. The DPR for EPS for 2019 is 61% with 5 year coverage at 63%. The DPR for CFPS for 2019 is 40% with 5 year coverage at 38%. The DPR for Free Cash Flow 48% with 5 year coverage at 50%. The Dividend Coverage Ratio for 2019 is 2.08 with 5 year coverage at 2.01. The is agreement on what the FCF is.

Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2019 is 0.17 and is good. The Liquidity Ratio for 2019 is good at 2.13. The Debt Ratio is good at 2.28. Leverage and Debt/Equity Ratios at 1.79 and 0.78 are also good.

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

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2014	5	12.10%	11.58%	9.46%	2.12%
2009	10	10.17%	11.99%	9.94%	2.05%
2004	15	13.12%	7.09%	5.66%	1.43%
1999	20	13.90%	7.08%	5.85%	1.23%
1994	25	16.12%	10.25%	8.87%	1.38%
1989	30	16.43%	18.15%	15.51%	2.63%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 26.02, 29.02 and 32.17. The corresponding 10 year ratios are 22.02, 26.87 and 29.97. The corresponding historical ratios are 21.91, 26.57 and 31.72. The current P/E Ratio is 36.97 based on a stock price of $108.68 and EPS estimate for 2021 of $2.94. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $49.77. The 10 year low, median, and high median Price/Graham Price Ratios are 1.32, 1.56 and 1.75. The current P/GP Ratio is 2.18 based on a stock price of $108.68. 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 2.28. The current P/B Ratio is 2.90 based on a Book Value of $50,296M, Book Value per Share of $37.44 and a stock price of $108.68. The current P/B Ratio is 27% 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 18.02. The current P/CF Ratio is 37.48 based on Cash Flow per Share estimate for 2020 of $2.90, Cash Flow of $3,896M and a stock price of $108.68. The current ratio is 108% 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 0.91%. The current dividend yield is 2.13% based on dividends of $2.32 and a stock price of $108.68. The current dividend is 135% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

I get an historical median dividend yield of 2.22%. The current dividend yield is 2.13% based on dividends of $2.32 and a stock price of $108.68. The current dividend is 4% 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 3.62. The current P/S Ratio is 5.02 based on Revenue estimate for 2021 of $29,086M, Revenue per Share of $21.65 and a stock price of $108.68. The current P/S Ratio is 39% 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 stock price shows the best with the dividend yield tests. However, that testing was not confirmed by the P/S Ratio test. In 2009, the dividends were increased by 50% and this led to higher dividend yields. Prior to 2009, dividend yields were mostly 1% and under and after 2009 they were in the 2% range. DPRs have been climbing. For example, the DPR for EPS in 2016 was 39% and in 2020 was 61% and is expected to be 79% in 2021. All the other tests are showing the stock price as expensive.

Is it a good company at a reasonable price? It would appear that the current stock price is on the expensive side. Analysts expect the company to recover in 2022, but you have to wonder if this will make up for overpaying for the stock now. If you buy for the long term as I do, paying too much can really affect your long term return on a company. I think that this is a good health care company to invest in, but I think that now may not be the time to buy.

When I look at analysts’ recommendations, I find Strong Buy (16), Buy (6), Hold (4), and Underperform (1). The consensus would be a Buy. The 12 month stock price consensus is $118.00. This implies a total return of $10.71% with 8.58% from capital gains and 2.13% from dividends.

The analysts seem to like this stock on Stock Chase. Prosper Junior Bakiny on Motley Fool says this company’s stock will be volatile in the short term but it is a good time to buy. A writer on Simply Wall Street says that the P/E of this company at 25.62 is lower than the industry average of 44.7. A writer on Simply Wall Street says that the interest on this company’s debt is only covered by EBIT by 6.5 times. Ken Faulkenberry on Dividend Value Builder rates this stock a B.

Medtronic Public Limited Company, headquartered in Dublin, Ireland, is among the world's largest medical technology, services, and solutions companies - alleviating pain, restoring health, and extending life for millions of people around the world. Its web site is here Medtronic PLC .

The last stock I wrote about was about was Canadian Pacific Railway (TSX-CP, NYSE-CP) ... learn more. The next stock I will write about will be Equitable Group Inc (TSX-EQB, OTC-EQGPF) ... learn more on Friday, October 16, 2020 around 5 pm. Tomorrow on my other blog I will write about Best Stocks I Follow 2.... learn more on Thursday, October15, 2020 around 5 pm.

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

See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Canadian Pacific Railway

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. I think that this stock price is currently expensive. I also do not buy any stock which has a yield less than 1%. It has done well for its shareholders over time. DPRs are good. See my spreadsheet on Canadian Pacific Railway.

I do not own this stock of Canadian Pacific Railway (TSX-CP, NYSE-CP). It is a stock I held from 1987 to 1999 so I am following it. I also held it 2006 to 2011. I decided in 2011 to have only one railway stock and chose CN as my railway stock.

When I was updating my spreadsheet, I noticed that the stock price on this company has really taken off, especially from 2016. Dividend increases has also been high since 2016.

The dividend yields are low with dividend growth good. The current dividend yield is quite low at just 0.92%. The 5, 10 and historical dividend yields also low at 0.96%, 1.02% and 1.53%. The current dividend increases are good (15% and above) at 16.2% per year over the past 5 years. Historically the growth in dividends went from low to moderate to the good current range.

The Dividend Payout Ratios (DPR) are good. The DPR for EPS for 2019 is 17%, with 5 year coverage at 16%. The DPR for CFPS for 2019 is 13% with 5 year coverage at 12%. The DPR for Free Cash Flow for 2019 is 31% with 5 year coverage at 30%. Dividend Coverage Ratio for 2019 is 3.26 with a 5 year ratio of 3.35. The three sites I looked at agree on FCF amounts over the years.

Debt Ratios are fine. The Long Term Debt Market Cap Ratio for 2019 is 0.18 and is low and therefore good. The Liquidity Ratio for 2019 is 0.53. If you add cash flow after dividends it is a good one at 1.66. The Debt Ratio for 2019 is a little low at 1.46. This ratio has always been low. I prefer the last two ratios to be 1.50 or higher. The Leverage and Debt/Equity Ratios for 2019 are 3.16 and 2.16 and are a bit high and I prefer them to be under 3.00 and under 2.00. This have been high for sometime with 5 year ratios at 3.08 and 2.08.

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	16.15%	62.63%	59.87%	2.76%
2009	10	11.57%	20.59%	19.28%	1.31%
2004	15	12.29%	16.20%	14.98%	1.22%
1999	20	12.51%	17.52%	16.00%	1.52%
1994	25	12.38%	16.26%	14.83%	1.43%
1989	30	6.73%	12.60%	11.51%	1.09%
1988	31	7.23%	13.16%	11.88%	1.27%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 14.10, 16.78 and 19.46. The corresponding 10 year ratios are 14.98, 17.90 and 20.94. The corresponding historical ratios are 11.11, 13.94 and 15.50. The current P/E Ratio is 24.24 based on a stock price of $412.11 and EPS estimate for 2020 of $17.00. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $144.37. The 10 year low, median, and high median Price/Graham Price Ratios are 1.63, 2.01 and 2.37. The current P/GP Ratio is 2.85 based on a stock price of $412.11. 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 5.05. The current P/B Ratio is 7.56 based on a Book Value of $7,465M, Book Value per Share of $54.49 and stock price of $412.11. The current ratio is 50% 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 13.09. The current P/CF Ratio is 18.00 based on Cash Flow per Share estimate for 2020 of $22.90, Cash Flow of $3,137M and a stock price of $412.11. The current ratio is 38% above 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 0.92% based on dividends of $3.80 and a stock price of $412.11. The current dividend yield is 40% 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 1.02%. The current dividend yield is 0.92% based on dividends of $3.80 and a stock price of $412.11. The current dividend yield is 10% below the 10 year 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 4.55. The current P/S Ratio is 7.42 based on Revenue estimate for 2020 of $7,609M, Revenue per Share of $55.54 and a stock price of $412.11. The current ratio is 63% 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. One of the dividends yield tests (historical) says the stock is expensive and the other (10 year) says reasonable but above the median. However, the P/S Ratio test does not confirm the second test results and says the stock price is expensive. All the other rest says the stock price is expensive.

Is it a good company at a reasonable price? I think that it is a good company and it has done well for its shareholders. If I was holding it, I would not sell, but I think it is expensive, so I would not buy anymore at this time.

When I look at analysts’ recommendations, I find Strong Buy (11), Buy (8), Hold (9), Underperform (1) and Sell (1). The consensus would be a Buy. The 12 month stock price consensus is $396.05. This implies a total loss of 2.97% with a capital loss of $3.90% and dividends of $0.92%.

Analyst like this stock on Stock Chase. Site give it 5 stars out of 5. Jed Lloren on Motley Fool thinks this stock provides an excellent investment opportunity. A writer on Simply Wall Street thought in July 2020 that the P/E of 19.7 was too high. A writer on Simply Wall Street talks about the dividends being well covered by earnings and cash flow. The blogger Dividend Earner has written a blog on this company.

Canadian Pacific Railway Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada and the United States. Its web site is here Canadian Pacific Railway.

The last stock I wrote about was about was Trigon Metals Inc (TSX-TM, OTC-PNTZF) ... learn more. The next stock I will write about will be Medtronic PLC (NYSE-MDT) ... learn more on Wednesday, October 14, 2020 around 5 pm. Today on my other blog I will write about RioCan REIT.... learn more on Tuesday, October 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.

Trigon Metals Inc

Sound bite for Twitter and StockTwits is: Materials Sector Stock. See my spreadsheet on Trigon Metals Inc.

I own this stock of Trigon Metals Inc (TSX-TM, OTC-PNTZF). I originally brought this stock in 2000 as Tathacus Resources Ltd. because it was doing interesting things. It was part of a basket of small caps that I was buying at that time. There was a reverse takeover (RTO) of this company on April 28, 2011 by Pan Terra Industries Inc. Symbol PNT. On May 2, 2012 there was a name change from Pan Terra Industries (PNT) to Kombat Copper Inc. (KBT). September 2016 there was a name change to Trigon Metals Inc.

When I was updating my spreadsheet, I noticed that they have been selling shares by private placement. Outstanding shares have grown by 44% per year over the past 5 years. This stock still has no revenue, earnings, or cash flow. Any green on my spreadsheet just shows the results that are less bad, not that they are good.

This stock does not pay a dividend.

Debt Ratios are currently good. The Long Term Debt/Market Cap Ratio is low at just 0.05. The Liquidity Ratio is good at 2.68. The Debt Ratio is good at 3.09 and this is a good improvement on the last few years when the Debt Ratio was below 1.00. The Leverage and Debt/Equity Ratios are also currently goo at 1.48 and 0.48. The debt ratios have varied a lot over time.

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	0.00%	-21.99%	-21.99%	0.00%
2009	10	0.00%	-12.60%	-12.60%	0.00%
2004	15	0.00%	-26.24%	-26.24%	0.00%
1999	20	0.00%	-26.56%	-26.56%	0.00%
1997	22	0.00%	-15.29%	-15.29%	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 negative. The current P/E Ratio is negative. So, there is no way a test can be done for this stock.

I estimate a Graham Price of $0.07. The estimated 10 year low, median, and high median Price/Graham Price Ratios are 6.12, 6.72 and 10.60. The current P/GP Ratio is 5.67 based on a stock price of $0.33. 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 4.80. The current P/B Ratio is 19.57 based on a Book Value of $1,710M, Book Value per Share of $0.02 and a stock price of $0.33. The current ratio is 308% higher than 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 that is negative. The current P/FC Ratio is negative. This test cannot be done. There is not dividend and there is no revenue, so these tests cannot be done.

Results of stock price testing is that the stock price is anyone’s guess. The P/GP Ratio test says cheap and the P/B Ratio test says expensive. The P/GP Ratio is just an estimate but the book value has been going down by 23% per year over the past 5 years.

Is it a good company at a reasonable price? I do not sell this because it is worth less than $10. There has been two consolidations and I have ended up with just 6 shares from an initial 300 shares. I still track this stock because I am interested in how everything will turn out.

When I look at analysts’ recommendations, I find no analyst following this stock. This is hardly surprising.

There are no entries on Stock Chase, but this is not a surprise as this is a penny mining stock. There is an executive overview on Simply Wall Street. It is given two stars out of five. An announcement on Junior Mining talks about Eric Sprott buying shares through a private placement. A writer on Simply Wall Street talks about insider buying at this company. A writer on Simply Wall Street talks about who owns shares in this company.

Trigon Metals Inc together with its subsidiaries engages in the acquisition, exploration, development, and maintenance of mines and mineral properties in the African country of Namibia. Its web site is here Trigon Metals Inc.

The last stock I wrote about was about was Logistec Corp (TSX-LGT.B, OTC-LTKBF) ... learn more. The next stock I will write about will be Canadian Pacific Railway (TSX-CP, NYSE-CP) ... learn more on Tuesday, October 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.

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