Granite REIT

Sound bite for Twitter and StockTwits is: Dividend Growth REIT. The stock price would seem to be expensive. It has good debt ratios. Recent total returns have been good. See my spreadsheet on Granite REIT.

I do not own this stock of Granite REIT (TSX-GRT.UN, NYSE-GRP.U). I first bought some of this stock in 2003 when it was called MI Developments (TSX-MIM.A). It was a company connected with Frank Stronach and Magna. TD bank also had an Action Buy Call (Strong Buy) on this stock. By the December 2006, it was doing well and my stock was up some 15% per year. I bought some more. The year of 2006 was the last time I did well on this stock. It kept going down and I sold it in 2009; being discourage it would ever do well again.

When I was updating my spreadsheet, I noticed if I had kept my shares, I would have probably made a total return of 9.33% per year. I noticed that it had a mixed record for dividends. Over the past 17 years, dividends went up 13 times, but were cut 4 times.

The dividend yields are moderate with dividend growth low. The current dividend yield is moderate (2% to 4% ranges) at 3.24%. The 5, and 10 median dividend yields were good (5% to 6% ranges) at 5.17% and 5.47%. The historical median dividend yield was moderate at 4.68%. The dividend increases for the past 5 years is in the low range (below 8%) at 4.74% per year.

The Dividend Payout Ratios (DPR) are fine as the important ones for REITS are the DPRs for FFO and AFFO. The DPR for EPS for 2021 is 38% with 5 year coverage at 36%. Since this is a REIT, I also look at the DPR for Funds from Operations (FFO) which is for 2021 is 73% and with 5 year coverage at 76%. I have also looked at the DPR for Adjusted Funds from Operations (AFFO), which for 2021 is 76% with 5 year coverage at 81%. (Basically, for FFO and AFFO, DPRs from 75% to 95% are acceptable.) The DPR for Cash Flow per Share is 66% with 5 year coverage at 71%. The DPR for Free Cash Flow for 2021 and for 5 year coverage are both negative.

Debt Ratios are good. The Long Term Debt/Market Cap Ratio is 0.40. The Liquidity Ratio for 2021 is 2.26. The Debt Ratio for 2021 is 2.39. Leverage and Debt/Equity Ratios for 2021 is 1.72 and 0.72

The Total Return per year is shown below for years of 5 to 18 to the end of 2020 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.
2015	5	4.74%	21.25%	15.46%	5.79%
2010	10	19.27%	16.45%	11.14%	5.30%
2005	15	10.75%	7.43%	4.53%	2.90%
2002	18	11.37%	9.03%	6.11%	2.93%

The Total Return per year is shown below for years of 5 to 18 to the end of 2020 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.
2015	5	6.51%	23.27%	17.33%	5.94%
2010	10	16.39%	13.35%	8.43%	4.92%
2005	15	10.08%	6.91%	3.92%	2.99%
2002	18	11.47%	10.85%	7.38%	3.47%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 5.42, 6.84 and 7.60. The corresponding 10 year ratios are 7.09, 8.28 and 10.21. The corresponding 10 year ratios are 6.48, 7.92 and 9.38. The current P/E Ratio is 12.23 based on a stock price of $92.70 and EPS for last 12 months of $7.23. The current P/E Ratio is above high of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive.

Because this is an REIT, we also need to look at Price/Adjusted Funds from Operations. The 5 year low, median, and high median P/AFFO Ratios are 14.16, 15.85 and 19.03. The corresponding 10 year ratios are 13.26, 15.67 and 17.92. The current P/AFFO is 25.40 based on AFFO estimate for 2021 of $3.65 and a stock price of $92.70. The current P/AFFO ratio is above the high of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive.

Because this is an REIT, we also need to look at Price/ Funds from Operations. The 5 year low, median, and high median P/FFO Ratios are 13.09, 14.73 and 15.99. The corresponding 10 year ratios are 11.49, 13.71 and 15.33. The current P/AFFO is 23.53 based on FFO estimate for 2021 of $3.94 and a stock price of $92.70. The current P/FFO ratio is above the high of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $81.37. The 10 year low, median, and high median Price/Graham Price Ratios are 0.72, 0.79 and 0.88. The current P/GP Ratio is 1.14 based on a stock price of $92.70. The current ratio is 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/Book Value per Share Ratio of 1.05. The current P/B |Ratio is 1.24 based on a Book Value of $4,607M, Book Value per Share of 74.69 and a stock price of $92.70. The current ratio is 18% 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 14.07. The current P/CF Ratio is 22.55 based on Cash Flow for the last 12 months of $253.57, Cash Flow per Share of $6.79 and a stock price of $92.70. The current ratio is 60% 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 4.68%. The current dividend yield is 3.24% based on dividends $3.00 and a stock price of $92.70. The current dividend yield is 31% 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 5.47%. The current dividend yield is 3.24% based on dividends $3.00 and a stock price of $92.70. The current dividend yield is 41% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive.

The 10 year median Price/Sales (Revenue) Ratio is 9.07. The current P/S Ratio is 14.63 based on Revenue estimate for 2021 of $391, Revenue per Share of $6.34 and a stock price of $92.70. The current ratio is 61% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

Note that for the P/S Ratio test to show results of the stock price is relatively reasonable and below the median, the stock price would have to drop around $57.00. At $57.00 then the current ratio would be 0.83% below the 10 year median ratio. Therefore, to get a reasonable price below the median, the stock price would have to fall 38.5%.

Results of stock price testing is that the stock price is a stock price that is expensive. Both the dividend yield test shows this as does the P/S Ratio test. In fact, all the tests show the same thing, a stock price that is relatively expensive.

Is it a good company at a reasonable price? The stock price seems on the expensive side. This REIT seems to be doing much better than when I held it.

When I look at analysts’ recommendations, I find Strong Buy (3) and Buy (8). The current consensus would be a Strong Buy. The 12 month stock price consensus is $97.18. This implies a total return of $8.07% with 4.83% from capital gains and $3.24% from dividends. This is based on a current stock price of $92.70.

Analysts on Stock Chase like this company and say it is a buy. Robin Brown on Motley Fool says this REIT has a great development and acquisition pipeline that should help fuel steady cash flow per share growth. The executive summary on Simply Wall Street gives this stock 3 stars out of 5 and list 3 risks. A writer on Simply Wall Street talks about who owns shares in this company. A writer on Simply Wall Street talks about insider trading.

Granite Real Estate Investment Trust, or Granite, is a real estate investment trust engaged in the acquisition, development, and management of primarily industrial properties in North America and Europe The vast majority of the company's assets are logistics and distribution warehouses and multipurpose buildings split fairly evenly amongst Canadian, Austrian, and U.S. locations. Granite derives nearly all of its revenue in the form of rental income from its properties. The company's largest tenant is Magna International, an automotive parts and systems manufacturer, which accounts for the majority of Granite's lease income. Its web site is here Granite REIT.

The last stock I wrote about was about was Alcanna Inc (TSX-CLIQ, OTC-LQSIF) ... learn more. The next stock I will write about will be K-Bro Linen Inc (TSX-KBL, OTC-KBRLF) ... learn more on Wednesday, September 22, 2021 around 5 pm. Tomorrow on my other blog I will write about Money Sense on Debt.... learn more on Tuesday, September 21, 2021 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.

Alcanna Inc

Sound bite for Twitter and StockTwits is: Consumer Sector Stock. The stock price could be cheap as the P/S Ratio test says this. The only other viable test was the P/B Ratio test and it says the stock is relatively expensive. Debt Ratio could be improved. A week balance sheet is especially bad for a small company. See my spreadsheet on Alcanna Inc.

I do not own this stock of Alcanna Inc (TSX-CLIQ, OTC-LQSIF). The idea of following this stock came from a reader of my blog.

When I was updating my spreadsheet, I noticed analysts think that this company will have earnings losses over the next 2 years. However, the second quarterly report shows good earnings. Analysts think that the company will have a loss in 2021 of $0.31, but the EPS to the end of the second quarter is $2.29. However, in the second quarter, the company had an operating loss and only had a profit because of the sale of discontinued business. They also paid off their debts. Analysts are right to suggest that this company will not be making any money from their business this year.

Also, there was only good earnings in 2020 because they sold discontinued business. There was an operating profit, but they used that and the sale of businesses to pay off some of their debt and provide earnings. They sell booze and cannot make money?

This company has a missed record with dividends. They suspended dividends in 2019. They are having a hard time making a profit. Over the past 15 years they have given dividend increases 4 times and have cut dividends 5 times.

Debt Ratios need improving. The Long Term Debt/Market Cap Ratio is good at 0.32. The Liquidity Ratio is 3.19 and that is good. The Debt Ratio is quite low at just 1.36. I prefer this to be at 1.50 or higher. Until the last two years, the Debt Ratio was good. The Leverage and Debt/Equity Ratios are too high at 3.76 and 2.76. I prefer them to be at 3.00 and 2.00 or lower.

The Total Return per year is shown below for years of 5 to 16 to the end of 2020. 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.
2015	5	0.00%	-3.53%	-6.69%	3.16%
2010	10	0.00%	-2.73%	-8.99%	6.25%
2005	15	0.00%	1.65%	-6.97%	8.62%
2004	16	0.00%	4.48%	-5.46%	9.94%

The 5 year low, median, and high median Price/Earnings per Share Ratios are negative and unusable. The corresponding 10 year ratios are 6.44, 7.87 and 9.29. The corresponding historical ratios are 12.45, 16.03 and 17.96. The current P/E Ratio is negative as they are not expected to make a profit this year, nor next year. This company has earning loss 4 of the past 10 years. No testing can be done here.

I estimate a Graham Price of $ 14.74. The 10 year low, median, and high median Price/Graham Price Ratios are 0.76, 1.04 and 1.20. The current P/GP Ratio is 0.56 based on a stock price of $8.28. The current ratio is below the low of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap. It is uncertain how good this test is.

I get a 10 year median Price/Book Value per Share Ratio of 1.25. The current P/B Ratio is 1.96 based on a stock price of 8.28, Book Value of $169, and Book Value per Share of $4.22. The current ratio is 57% 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 9.34. The current P/CF Ratio is 17.93 based on Cash Flow for the past 12 months of $18.5M, Cash Flow per Share of $0.46 and a stock price of $8.28. The current ratio is 92% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I cannot do any dividend yield testing as dividends are suspended.

The 10 year median Price/Sales (Revenue) Ratio is 0.48. The current P/S Ratio is 0.44 based on Revenue estimate for 2021 of $756M, Revenue per Share of $18.88 and a stock price of $8.28. The current ratio is 7.7% 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 possibly reasonable. The P/S Ratio test points to that. However, the P/B Ratio says the stock is expensive. This is because it has not been making any money recently. This are the only tests that a good.

Is it a good company at a reasonable price? This is not a company I would personally be interested in. Shareholders have not made much in this stock. They started to have earnings losses 5 years ago in 2015 and are expected to have earning losses this year and next.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (1) and Hold (1). The consensus would be a Buy (which most of consensus are at). The 12 month stock price consensus is $10.42. This implies a total return of 25.85% based on a current price of $8.28, all from capital gains.

This year an analyst on Stock Chase say the company is a hold. In 2019 they were still saying it is a buy but risky. Christopher Liew on Motley Fool says this company is a screaming buy for a long growth runway. The Executive Summary on Simply Wall Street gives this stock 3 stars out of 5 and list no risks. A writer on Simply Wall Street says the companies intrinsic value is $9.10 but its prospects is negative growth. The company reports second quarterly results on Global Newswire.

Alcanna Inc is a private sector retailer of alcohol in North America and the largest in Canada by number of stores, operating in Alberta and British Columbia under the Wine and Beyond, Ace Liquor Discounters and Liquor Depot banners. The Company's majority-owned subsidiary, Nova Cannabis Inc. cannabis retail stores in Alberta, Ontario, and Saskatchewan. Its web site is here Alcanna Inc.

The last stock I wrote about was about was Great-West Lifeco Inc (TSX-GWO, OTC-GWLIF) ... learn more. The next stock I will write about will be Granite REIT (TSX-GRT.UN, NYSE-GRP.U) ... learn more on Monday, September 20, 2021 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.

Great-West Lifeco Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Insurance. The stock price is cheap to reasonable. In this report, I am looking at dividends on original stock purchase price and how much of the original purchase price would be paid by dividends. See my spreadsheet on Great-West Lifeco Inc.

I do not own this stock of Great-West Lifeco Inc (TSX-GWO, OTC-GWLIF). This stock seems to be a favorite with investors who like solid, stable, dividend paying stock. It was on Mike Higgs' list and it used to be on the dividend lists. I have been following this stock for some time. However, I will not buy it because I have Power Corp. (TSX-POW). Great West Lifeco Inc. is one of the companies under Power Corp. (TSX-POW).

When I was updating my spreadsheet, I noticed what difference there was in Yield after a number of years if people paid the high, median, or low price when stock was bought. So, if this stock was bought 10 years ago and at purchase time the low price 10 years ago was paid, then the current shareholder would be getting a yield of 7.38% on the purchase price.

Years	High Price	Med Price	Low Price
5	4.67%	5.09%	5.60%
10	6.01%	6.62%	7.38%
15	5.73%	6.11%	6.54%
20	9.47%	13.04%	20.91%
25	48.73%	55.62%	64.77%
30	81.25%	115.60%	200.23%

I also noticed the stock price coverage after a number of years if people paid the high, median, or low price when the stock was bought. So, if this stock was bought 10 years ago and at purchase time the low price 10 years ago was paid, then the current shareholder would have covered by dividends 59.15% of the stock price.

Years	High Price	Med Price	Low Price
5	20.82%	22.70%	24.95%
10	48.12%	53.07%	59.15%
15	64.43%	68.64%	73.45%
20	122.18%	168.18%	269.73%
25	660.53%	753.84%	877.86%
30	1120.16%	1593.63%	2760.40%

The dividend yields are moderate with dividend growth low. The current dividend yield is moderate (2% to 4% ranges) at 4.49%. The 5, 10 and historical median dividend yields are also moderate at 4.97%, 4.62% and 3.57%. The dividend increases are low (below 8%). The dividend increases for the past 5 years is at 6.08% per year. The last dividend increase was in 2020 and it was for 6.01%. There has not been an increase in dividends in 2021. This company has increased dividends in 22 of the last 32 years.

The Dividend Payout Ratios (DPR) are fine. The DPR for EPS for 2020 is 55% with 5 year coverage at 58%. The DPR for Cash Flow per Share is 16% with 5 year coverage at 21%. The DPR for Free Cash Flow is 17% with 5 year coverage at 21%.

Debt Ratios are fine. The Long Term Debt/Asset Coverage Ratio is 1.00 for 2020 and is better currently at 0.91. You want long term debt to be cover (i.e., ratio at 1.00 or less) by long term assets. Also, the Liquidity Ratio is not important for financial, but I have calculated it anyway at 1.73. The Debt Ratio is 1.05 and this is fine for a financial.

The Total Return per year is shown below for years of 5 to 32 to the end of 2020. 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.
2015	5	6.08%	2.20%	-2.55%	4.74%
2010	10	3.60%	6.32%	1.40%	4.92%
2005	15	5.28%	4.11%	-0.08%	4.19%
2000	20	8.79%	6.91%	2.48%	4.42%
1995	25	11.32%	16.55%	8.91%	7.64%
1990	30	11.75%	18.25%	10.47%	7.78%
1988	32	10.98%	16.61%	9.85%	6.76%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 11.07, 12.39 and 13.72. The corresponding 10 year ratios are 10.80, 12.36 and 13.43. The corresponding historical ratios are 11.07, 12.43 and 13.91. The current P/E Ratio is 12.01 based on EPS estimate for 2021 of $3.25 and a stock price of $39.04. The current ratio is between the low and median value of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median. This is a good test because the P/E Ratios have not changed that much during time.

I get a Graham Price of $41.67. The 10 year low, median, and high median Price/Graham Price Ratios are 0.85, 0.97 and 1.07. The current P/GP Ratio is 0.94 based on a stock price of $39.04. The current ratio is between the low and median 10 year median ratios. 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 1.72. The current P/B Ratio is 1.64 based on a Book Value of $22,031M, Book Value per Share of $23.74 and a stock price of $39.04. The current ratio is 4% 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 4.98. The current P/CF Ratio is 3.99 based on the last 12 months Cash Flow of $9,077M, Cash Flow per Share of $9.78 and a stock price of 39.04. The current ratio is 19.8% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get an historical median dividend yield of 3.57%. The current dividend yield is 4.49% based on a stock price of $39.04 and dividends of $1.75. The current dividend yield is 25.7% below the historical median yield. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median dividend yield of 4.62%. The current dividend yield is 4.49% based on a stock price of $39.04 and dividends of $1.75. The current dividend yield is 4.6% below the 10 year median yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.

The 10 year median Price/Sales (Revenue) Ratio is 0.74. The current P/S Ratio is 0.54 based on a stock price of $39.04, Revenue estimate for 2021 of $66,951M and Revenue per Share of $72.16. The current ratio is 26% 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 cheap to reasonable and below the median. One dividend yield test says cheap and the other reasonable and below the median. The P/S Ratio says it is cheap. Most of the other testing is say the stock price is reasonable and below the median.

Is it a good company at a reasonable price? I think that the stock price is reasonable. I also think it is a good company, but until we have more normal interest rates, it is hard for Life Insurance companies to provide a good return. However, dividends have been good during these trying times. First interest rates sky rocketed and Life Insurance companies had to change the way they did business and now the interest rates are lower than they have ever been historically.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (1), and Hold (9). The consensus would be a Hold. The 12 month stock price consensus is $40.00. This implies a total return of 6.95% based on a stock price of $39.04 with 2.46% from capital gains and 4.49% from dividends.

The last entry on Stock Chase the analyst thinks that you should do a partial sell if you own this stock. Other entries say the stock is a buy. Amy Legate-Wolfe on Motley Fool thinks this is a good dividend stock to buy now. The executive summary on Simply Wall Street lists one risk and 3 rewards with this company. A writer on Simply Wall Street is disappointed in the lack of growth in earnings but thinks the stock has positive factors. A writer on Simply Wall Street talks about insider trading at this company.

Great-West Lifeco is one of the three big Canadian life insurance firms. With just under half of the firm's profit and revenue in Canada, Great-West also operates in the U.S. and Europe. Its web site is here Great-West Lifeco Inc.

The last stock I wrote about was about was Trican Well Service Ltd (TSX-TCW, OTC-TOLWF) ... learn more. The next stock I will write about will be Alcanna Inc (TSX-CLIQ, OTC-LQSIF) ... learn more on Friday, September 17, 2021 around 5 pm. Tomorrow on my other blog I will write about Successful Investing.... learn more on Thursday, September 16, 2021 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.

Trican Well Service Ltd

Sound bite for Twitter and StockTwits is: Industrial Sector Stock. The stock price is cheap to reasonable. It is a good sign that analysts have not lost interest in this stock. Debt Ratios are very good. They have no long term debt. It is debt more than anything that does companies in. So, they will probably survive. The question is, though, will it thrive? See my spreadsheet on Trican Well Service Ltd.

I do not own this stock of Trican Well Service Ltd (TSX-TCW, OTC-TOLWF). I was following Canyon Services Group Inc. and Trican Well Services Ltd. had a plan of arrangement with Canyon Shareholders. I used to get a newsletter weekly from MPL Communications called Advice Hotline. They wrote up this stock on July 19, 2012 and I was impressed with it so I did a spreadsheet.

When I was updating my spreadsheet, I noticed even though this stock has done badly lately, analysts have not lost interest in it. You can see this because of the number of estimates that are available for the next 3 years. They also expect positive EPS starting in 2022.

I am following this stock from Canyon Services Group and their merger arrangement with Trican Well Service Ltd in 2017. Canyon Services Group started dividends in 2011 but they were never well covered because of so many years of earning losses. Dividends were stopped in 2016 by Canyon Services. It would seem that Trican Well Services stopped dividends in 2014. Their first dividend would have been paid in 2005.

Debt Ratios are very good. The company has paid off its long term debt. Also, Intangibles and Goodwill has decreased by 86% and the Intangibles/Market Cap Ratio is very low at 0.06. The Liquidity Ratio for 2020 is 2.02. The Debt Ratio is 7.94. For both these ratios a ratio of 1.50 is a good one, so these ratios are excellent. The Leverage and Debt/Equity Ratios are good and low at just 1.14 and 0.14.

The Total Return per year is shown below for years of 5 to 14 to the end of 2020. 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.
2015	5	0.00%	-6.69%	-6.84%	0.15%
2010	10	0.00%	-9.44%	-12.50%	3.06%
2006	14		0.28%	-3.85%	4.13%

The 5 year low, median, and high median Price/Earnings per Share Ratios are negative and therefore useable. The corresponding 10 year ratios are also negative and useable. The corresponding historical ratios are negative and useable. The current P/E Ratio negative and useable. The P/E Ratio for 2022 and 2024 are 29.33 and 9.43. The one for 2022 is high and suggests a stock price that is relatively expensive. The one for 2023 at 9.43 suggests a stock price that is relatively cheap. This ratio is based on a stock price of $2.64 and EPS estimate for 2023 of $0.28.

I estimate a Graham Price for 2021 of $2.09. I get a Graham Price of $2.09 for 2022. The 10 year low, median, and high median Price/Graham Price Ratios are 0.61, 1.03 and 1.25. The current P/GP Ratio is 1.26 based on a stock price of $2.64. This ratio is above high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive, but just into the expensive range.

I get a 10 year median Price/Book Value per Share Ratio of 1.28. The current P/B Ratio is 1.22 based on a Book Value of $552M, Book Value per Share of $2.16 and a stock price of $2.64. The current ratio is 4% 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 9.72. The current P/CF Ratio is 7.34 based on a stock price of $2.64, Cash Flow per Share estimate for 2021 of $0.38 and Cash Flow of $97.2M. The current ratio is 24% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

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

The 10 year median Price/Sales (Revenue) Ratio is 1.59. The current P/S Ratio is 1.21 based on Revenue estimate for 2021 of $560M, Revenue per Share of $2.19and a stock price of $2.64. The current ratio is 24% 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 to reasonable. The P/S Ratio test says the stock price is cheap. The rest are a mixed bag of results. However, the P/B Ratio test is a good one and it says the stock price is reasonable and below the median.

Is it a good company at a reasonable price? The price seems reasonable. This company services the oil and gas industry and so is risky. They seem to be trying to diversify a bit. This is good. Eventually the oil and gas industry will dry up and it is very hard to say when. If history is any guide, it may take 20 years. These things take longer than you ever image, but when change comes, it usually comes quickly (a tipping point). So, this stock is risky, but it could eventually be a winner. I do not know.

When I look at analysts’ recommendations, I find Strong Buy (3), Buy (4) and Hold (3). The consensus would be a Buy. The 12 month stock price consensus is $3.38. This implies a total return of 28.03%, all from capital gains based on a current stock price of $2.64.

There is one review on Stock Chase in 2021 (February) and it is a Do No Buy recommendation. Christopher Liew on Motley Fool says that this company made a turnaround this year and so has good growth prospects. The executive summary on Simply Wall Street gives this company 4 stars out of 5 and lists no risks, but two possible rewards. A writer on Simply Wall Street expects this company to break even in one year’s time. A writer on Simply Wall Street says that the stock price is up strongly over the past 12 months.

Trican Well Service Ltd is an equipment services company. It provides products, equipment, services, and technology for use in the drilling, completion, stimulation, and reworking of oil and gas wells primarily through its continuing pressure pumping operations in Canada. The company offers services related to coiled tubing, pipeline service, cementing, fracturing and reservoir solution. Its web site is here Trican Well Service Ltd.

The last stock I wrote about was about was Wajax Corp (TSX-WJX, OTC-WJXFF) ... learn more. The next stock I will write about will be Great-West Lifeco Inc (TSX-GWO, OTC-GWLIF) ... learn more on Wednesday, September 15, 2021 around 5 pm. Tomorrow on my other blog I will write about Best Canadian Stocks.... learn more on Tuesday, September 14, 2021 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.

Wajax Corp

Sound bite for Twitter and StockTwits is: Dividend Paying Industrial. The stock price seems reasonable. There currently is no dividend growth but EPS is growing. Dividends will be a lower portion of the total return in the future. They have mucked around a lot with the dividends and it has been flat for the past 5 years. See my spreadsheet on Wajax Corp.

I do not own this stock of Wajax Corp (TSX-WJX, OTC-WJXFF). TD Waterhouse put out a report on good dividend paying stocks to own in November 2011. This was a stock they named. I had not heard of it before, so I decided to investigate it.

When I was updating my spreadsheet, I noticed if you look at Dividend Yields compared to Total Returns for the 5, 10, 15, 20, 25, 30 and 34 year periods, I find the following. For example, total return over the past 5 years is 6.27% per year, the starting Dividend yield (the one from 5 years ago) was 7.05%. From the point of view of this chart, the highest dividend yields generally got the highest total return. Unfortunately for this stock there were years of no dividends (and therefore no dividend yields).

Year	Tot Return	Start Div
5	6.27%	7.05%
10	-1.05%	4.89%
15	6.85%	4.05%
20	28.30%	0.00%
25	9.47%	0.00%
30	10.24%	7.54%
34	5.67%	5.60%

The dividend yields are moderate with dividend growth non-existent. The current dividend yield is moderate at 4.18%. The 5 and 10 year median dividend yields are good (5% and 6% ranges) at 5.12% and 5.90%. This company used to be an income trust. (2005 to 2011). Income Trust companies tend to have higher dividend yields than corporations. The historical dividend yield is moderate at 4.50%. The historical dividend yield since becoming a corporation is higher at 5.90%. This is because this company paid no dividends from 1992 to 2003.

This company cut dividends in 2009 and then cut them again in 2013 and 2015. The dividends have been flat since 2016. It is hard to tell if the company will become a dividend growth company again or not. However, it would seem that there will be no dividend increases in the near term.

The Dividend Payout Ratios (DPR) are fine. The DPR for EPS for 2020 is 63% with 5 year coverage at 68%. The DPR for CFPS for 2020 is 18% with 5 year coverage at 22%. The DPR for Free Cash Flow for 2020 is 19% with 5 year coverage at 76%. Sites I look at for FCF do not agree on what it is. This is a problem when looking at FCF.

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2020 is 0.50 and is lower in 2021 at 0.29 due to lower debt and higher market cap. The Liquidity Ratio is very good at 2.34. The Debt Ratio is good at 1.50. The Leverage and Debt/Equity Ratios are too high at 3.01 and 2.01, but just above what I like. I prefer them to be below 3.00 and below 2.00

The Total Return per year is shown below for years of 5 to 34 to the end of 2020. 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.
2015	5	-3.31%	6.27%	0.35%	5.92%
2010	10	-5.71%	-1.05%	-7.39%	6.34%
2005	15	-1.45%	6.85%	-3.83%	10.68%
2000	20	0.00%	28.30%	7.53%	20.76%
1995	25	0.00%	9.47%	1.64%	7.83%
1990	30	2.41%	10.24%	3.27%	6.97%
1986	34	1.72%	5.67%	0.48%	5.19%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 8.76, 12.23 and 15.69. The corresponding 10 year ratios are 9.38, 11.99 and 14.61. The corresponding historical ratios are 8.71, 11.01 and 13.52. The current P/E Ratio is 9.80 based on EPS estimate for 2021 of $2.44 and a stock price of $23.90. The current ratio is between the low and median ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $30.99. The 10 year low, median, and high median Price/Graham Price Ratios are 0.92, 1.14 and 1.34. The current P/GP Ratio is 0.77 based on a stock price of $23.90. The current ratio is below the low ratio of the 10 year median ratios. 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 1.61. The current P/B Ratio is 1.37 based on a Book Value of $375M, Book Value per Share of $17.50, and a stock price of $23.90. The current 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 a 10 year median Price/Cash Flow per Share Ratio of 6.83. The current P/CF Ratio is 2.60 based on a stock price of $23.90, Cash Flow for the last 12 months of $196.8M, and Cash Flow per Share of $9.19. The current ratio is 62% 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 4.50%. The current dividend yield is 4.18% based on dividends of $1.00 and a stock price of $23.90. The current ratio is 7% below the historical median ratio. 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 5.90%. The current dividend yield is 4.18% based on dividends of $1.00 and a stock price of $23.90. The current ratio is 29% below the historical median ratio. This stock price testing suggests that the stock price is relatively expensive.

The 10 year median Price/Sales (Revenue) Ratio is 0.36. The current P/S Ratio is 0.31 based on Revenue estimate for 2021 of $1,670M, Revenue per Share of $78.00 and a stock price of 23.90. 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.

Results of stock price testing is that the stock price is probably reasonable. The P/S Ratio test is good and it says the stock price is reasonable and below the median. They have mucked around a lot with the dividends and it has been flat for the past 5 years. The dividend tests work best with dividend growth stocks. The P/B Ratio test is a good one and it says the stock price is reasonable and below the median.

Is it a good company at a reasonable price? The stock price seems reasonable. This has not been a good dividend stock. I prefer dividend growth stocks. It was an income trust that had to change to a corporation. A lot of these companies have had difficulty getting the dividend payouts right. The EPS is expected to grow in the future and this is good.

When I look at analysts’ recommendations, I find Buy (2) and Hold (1). The consensus is a Buy. The 12 month stock price consensus is $28.23. This implies a total return of 22.30% with 18.12% from capital gains and 4.18% from dividends.

The two latest analysts say on Stock Chase that this stock is their top pick. Nikhil Kumar on Motley Fool thinks that this is a company to buy and hold for the long term. The executive summary on Simply Wall Street gives this stock 2 stars out of 5 and list 4 risks. A writer on Simply Wall Street thinks this stock should be considered because EPS are growing. A writer on Simply Wall Street says the ROE for this company is 10% and that is at the average for the company’s industry. The company on Cision talks about the results for the second quarter of 2021. A writer on Simply Wall Street is worried about the debt of this company.

Wajax Corp is a Canadian distributor of industrial components. Its core business is the sale of parts and service support of equipment, power systems, and industrial components through a network of branches in Canada. Its web site is here Wajax Corp.

The last stock I wrote about was about was Telus Corp (TSX-T, NYSE-TU) ... learn more. The next stock I will write about will be Trican Well Service Ltd (TSX-TCW, OTC-TOLWF) ... learn more on Monday, September 13, 2021 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.

Telus Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Telecom. The stock price would seem to be in the reasonable range. I would like to see the DPRs and Debt Ratios improved, but it seems no worse than BCE which I hold. See my spreadsheet on Telus Corp.

I do not own this stock of Telus Corp (TSX-T, NYSE-TU). I started to follow this stock because of a list of stock John Sartz talked about in 2008. At the Toronto Money Shows in 2009 and 2010 Aaron Dunn from KeyStone Financial Publishing Corp talked about having recommended this stock. Aaron Dunn says he likes companies with resilient business models, which are profitable and are growing their earnings. He also like companies with strong management teams, health balance sheets and compelling valuations. They look at the P/E and the Price/Cash Flow ratios. Telus Corp (TSX-T) was one of three stocks he recommended in 2009.

When I was updating my spreadsheet, I noticed that the revenue went up, but earnings were down. The problem was extra expenses. They also only are giving values only in the millions. This annoys me. For example, last they said the number of outstanding shares in 2019 was 655M. They did a 2 for 1 split in 2020. My spreadsheet gives the current outstanding shares as 1210M. However, their statements for 2020 says that the outstanding shares for 2019 was 1209M. So, my calculation of shares is 1M out? What about other previous years?

The dividend yields are moderate with dividend growth moderate. The current dividend yield is moderate (2% to 4% ranges) at 4.33%. The 5, 10 and historical dividend yields are also moderate at 4.48%, 4.22% and 3.96%. The dividend growth over the past 5 years is moderate (below 8%) at 7.28% per year. The last dividend increase was in 2021 and it was for 7.3%. Dividend growth has varied a lot over the past 30 years. See chart below.

The Dividend Payout Ratios (DPR) need improving. The DPR for EPS for 2020 is 124% with 5 year coverage at 86%. Analysts do not expect the DPR will be below 100% until 2023 and some analysts think this will happen later. The DPR for Cash Flow per Share is 35% with 5 year coverage at 32%. Any DPR for CFPS at or below 40% is good. The DPR for Free Cash Flow for 2020 is 53% with 5 year coverage at 130%. There is disagreement among the sites as to what the FCF is.

Debt Ratios could be improved, but probably fine. The Long Term Debt/Market Cap Ratio for 2020 is 0.58. The Liquidity Ratio for 2020 is 0.79. If you add in cash flow after dividends it is still low at 1.31. The Debt Ratio for 2020 is 1.41. For both these ratios I prefer them to be at 1.50 or higher. However, they have been lower than what I like for a long time and in the case of the Liquidity Ratio it has seldom been at or above 1.50. The Leverage and Debt/Equity Ratios for 2020 are 3.44 and 2.44. I prefer these to be lower than 3.00 and 2.00, but again these have been too high for a while, since 2014.

The Total Return per year is shown below for years of 5 to 30 to the end of 2020. 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.
2015	5	7.28%	10.50%	5.67%	4.82%
2010	10	19.14%	13.36%	8.29%	5.07%
2005	15	12.47%	8.90%	5.10%	3.81%
2000	20	6.20%	7.61%	4.53%	3.07%
1995	25	5.47%	9.83%	5.95%	3.88%
1990	30	10.71%	9.69%	5.68%	4.01%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 17.20,18.51 and 19.83. The corresponding 10 year ratios are 16.15, 17.37 and 18.82. The corresponding historical ratios are 13.87, 16.76 and 18.69. The current P/E Ratio is 28.33 based on a stock price of $29.18 and EPS estimate of $.1.03. The current ratio is above the high of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $16.28. The 10 year low, median, and high median Price/Graham Price Ratios are 1.40, 1.52 and 1.65. The current P/GP Ratio is 1.79 based on a stock price of $29.18. The current ratio is above the high of the 10 year median ratios. 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 2.76. The current P/B Ratio is 2.55 based on a stock price of $29.18, Book Value of $14,756M and Book Value per Share of $11.43. The current P/B Ratio is 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 6.88. The current P/CF Ratio is 8.82 based on Cash Flow per Share estimate for 2021 of $3.31, Cash Flow of $4,273M and a stock price of $29.18. The current ratio is 28% above the 10 year median ratio. This stock price testing suggests that the stock price is expensive.

I get an historical median dividend yield of 3.96%. The current dividend yield is 4.33% based on dividends of $1.2548, and a stock price of $29.18. The current yield is 9.5% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year median dividend yield of 4.22%. The current dividend yield is 4.33% based on dividends of $1.2548, and a stock price of $29.18. The current yield is 2.7% above the historical 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 1.97. The current P/S Ratio is 2.23 based on Revenue estimate for 2021 of $16,901M, Revenue per Share of $13.09 and a stock price of $29.18. The current ratio is 13% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

Results of stock price testing is that the stock price is probably reasonable. The dividend yield tests say it is below the median and the P/S Ratio test says it is above the median. The P/B Ratio test says it is reasonable, but other tests say it is expensive.

Is it a good company at a reasonable price? The stock price would seem to be reasonable. I do wonder about the telecom sector on whether there might be future disruptions due new technology. This business has changed a lot over the past few years and I do not expect this to stop. I have no plans to buy in this sector, but I will retain the BCE shares that I have.

When I look at analysts’ recommendations, I find Strong Buy (5), Buy (7) and Hold (5). This stock price testing suggests that the stock price is relatively reasonable and below the median. The consensus would be a Buy. The 12 month stock price consensus is $30.18. This implies a total return of 7.76% with 3.43% from capital gains and 4.33% from dividends.

Analysts on Stock Chase have very different opinions on this stock. Nicholas Dobroruka on Motley Fool says this company offers growth and passive income. The executive summary on Simply Wall Street gives this stock 3 stars out of 5 and list 3 risks. A Canadian Press article in the Moose Jaw Today is interesting as this company with BCE is complaining about Quebecor’s purchase of 5G spectrum in Western Canada . Kwhen Finance Editors via the Nasdaq site talks about some indicators on this stock.

Telus Corp is one of the big three wireless service providers in Canada. It is also the ILEC (incumbent local exchange carrier; the legacy telephone provider) in the western Canadian provinces of British Columbia and Alberta, where it provides Internet, television, and landline phone services. It also has a small wireline presence in eastern Quebec. Telus' other businesses participate in the international business services, health, security, and agriculture industries. Its web site is here Telus Corp.

The last stock I wrote about was about was Accord Financial Corp (TSX-ACD, OTC-ACCFF) ... learn more. The next stock I will write about will be Wajax Corp (TSX-WJX, OTC-WJXFF) ... learn more on Friday, September 10, 2021 around 5 pm. Tomorrow on my other blog I will write about Something to Buy September 2021.... learn more on Thursday, September 09, 2021 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.

Accord Financial Corp

Sound bite for Twitter and StockTwits is: Dividend Paying Financial. Stock price is cheap to reasonable. A dividend cut signals caution by the company for the near future. They are still paying a dividend, so that is good. This stock would, of course, be risky. See my spreadsheet on Accord Financial Corp.

I do not own this stock of Accord Financial Corp (TSX-ACD, OTC-ACCFF). If I was looking for a small cap financial stock, I would consider this stock. It has had some problems recently, but a lot of companies are with this long drawn out recover. As with all small cap stocks there is low trading volume.

When I was updating my spreadsheet, I noticed that in 2020 they cut their dividends by 44%. A cut in dividend signals that management feels that the near future is not going to be good for the company.

The dividend yields are moderate with dividend growth stopping. The current dividend yield is moderate (2% to 4% range) at 2.34%. The 5, 10 and historical dividend yields are also moderate at 3.86%, 3.88% and 2.63%. They have been raising their dividends since 1990, but in 2020 the dividend was cut. The median dividend increase for the past 10 years is 2.99%. So, increases were low. It did have some good dividend increases before the financial crisis of 2008.

The Dividend Payout Ratios (DPR) are fine. The DPR for EPS for 2020 was 480% with 5 year coverage at 47%. The EPS were very low in 2020. The DPR for EPS is expected to be around 28% in 2021. The DPR for CFPS for 2020 was 186% with 5 year coverage at 20%. The DPR for Free Cash Flow for 2020 was 8.8% with 5 year coverage at 5.75%.

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2020 is 3.68. Because it is a Financial, I looked also at Long Term Debt/Current Asset Ratio which is 0.59 and that is a good ratio. I calculate the Liquidity Ratio to be 12.05, but this is generally not important for Financials. The Debt Ratio is fine for a financial at 1.32.

The Total Return per year is shown below for years of 5 to 28 to the end of 2020. 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.
2015	5	-7.27%	-2.92%	-6.94%	4.02%
2010	10	-1.53%	3.47%	-1.12%	4.59%
2005	15	1.94%	3.90%	-0.34%	4.24%
2000	20	0.92%	6.66%	0.90%	5.76%
1995	25	0.73%	9.97%	3.48%	6.49%
1992	28	8.64%	11.61%	4.81%	6.80%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 11.05. 12.34 and 13.19. The corresponding 10 year ratios are 9.01, 10.63 and 11.95. The corresponding historical ratios are 8.57, 10.59 and 11.94. The current P/E Ratio is 11.88 based on a stock price of $8.55 and EPS estimate for 2021 of $0.72. The P/E Ratio is between the median and high 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.

However, I only got one estimate for EPS. I have a value for the last 12 months for EPS and it is for $0.89. The P/E Ratio with a stock price of $8.55 would be 9.61. This P/E Ratio is between the low and median 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $13.32. The 10 year low, median, and high median Price/Graham Price Ratios are 0.64, 0.73 and 0.79. The current P/GP Ratio is 0.64 based on a stock price of $8.55. This ratio is at the low ratio of the 10 year median ratios. 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 1.11. The current P/B Ratio is current ratio is 0.78 based on a stock price of $8.55, Book Value of $93.8M, and a Book Value per Share of 10.96. The current ratio is 29% 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 2.69. The current P/CF Ratio is 1.20 based on the last 12 month’s cash flow of $61.2M, Cash Flow per Share of $7.15 and a stock price of 8.55. The current ratio is 56% 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 2.63%. The current dividend yield is 2.34% based on a stock price of $8.55 and dividends of $0.20. This dividend yield is 11% above the historical year median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and above the median.

I get a 10 year median dividend yield of 3.88%. The current dividend yield is 2.34% based on a stock price of $8.55 and dividends of $0.20. This dividend yield is 40% above the historical year median dividend yield. This stock price testing suggests that the stock price is relatively expensive.

The 10 year median Price/Sales (Revenue) Ratio is 2.32. The current P/S Ratio is 1.35 based on Revenue for the last 12 months of $54.1M, Revenue per Share of $6.32 and a stock price of $8.55. The current ratio is 42% 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 to reasonable. The P/S Ratio testing shows this this stock as cheap as does the P/CF test. The dividend yield tests show the stock from reasonable to expensive, however, since dividends were cut by 44%, the dividend tests are not good. It is only one dividend test that show the stock as expensive.

Is it a good company at a reasonable price? The stock price would be cheap to reasonable. However, a big dividend cut in 2020 does signal that managements feels negative or uncertain about the near future. It may not be a good time to buy this company.

When I look at analysts’ recommendations, I find a Buy (1) recommendation. The consensus would be a Buy. The 12 month stock price is $8.80. This implies a total return of 5.26% with 2.92% from capital gains and 2.34% from dividends.

The analysts on this site have made positive remarks about this company in the past on Stock Chase but none have commented since 2014. Motley Fool has no comments on this company. The executive summary on Simply Wall Street gives this stock 3 stars out of 5 and lists 5 risks. A writer on Simply Wall Street is concerned for the dividends because of shrinking earnings. A writer on Simply Wall Street talks about insider trading. The company posted on Newswire their second quarterly results for 2021.

Accord Financial Corp is a provider of asset-based financial services to businesses. Its asset-based financial services include asset-based lending, including factoring, lease financing, working capital financing, credit protection and receivables management, and supply chain financing for importers. Geographically, it derives a majority of revenue from the United States. Its web site is here Accord Financial Corp.

The last stock I wrote about was about was Just Energy Group Inc (TSX-JE, NYSE-JE) ... learn more. The next stock I will write about will be Telus Corp (TSX-T, NYSE-TU) ... learn more on Wednesday, September 8, 2021 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks September 2021 .... learn more on Tuesday, August 3, 2021 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.

Just Energy Group Inc

Sound bite for Twitter and StockTwits is: Canadian Utility Stock. The stock price would seem to be cheap. It would be a highly risky buy. The company has filed for bankruptcy protection in Canada and US. It has a negative book value. See my spreadsheet on Just Energy Group Inc.

I do not own this stock of Just Energy Group Inc (TSX-JE, NYSE-JE). I started to follow this is July 2010. It was one of the high yield income trusts that people were talking about, so I decided to check it out. Their financial year ends March 31 each year.

When I was updating my spreadsheet, I noticed this first statement on the site that said on March 9, 2021, Just Energy filed for protection under the Companies’ Creditors Arrangement Act (Canada) and under Chapter 15 of the Bankruptcy Code in the United States.

The second thing is they changed how they reported last year’s results because of the consolidation of the stocks and the fact that they exchanged the Preferred Shares into common shares in 2021. The results of 2020 in the 2021 report showed the Preferred Shares number as part of the outstanding shares and the basic and diluted share number. This, of course, among other things, changed the EPS for 2020 in the 2021 report. This very much complicates updating my spreadsheets.

The people holding debt also got shares in the company to replace their debt. The current shareholders were also able to buy more shares at a low price. As often happens in bankruptcy, the debt holders end up with shares in the company and current shareholders can lose out.

Dividends are no longer being paid under this company. They were cancelled in 2020. The company started as an income fund and as such paid out a lot in dividends. Dividend yields were often very high which was usual with income trusts (or funds). It became a corporation in 2011. All income trust had to be converted to corporation.

The Dividend Payout Ratios (DPR) have been too high. They did not cut the dividends on becoming a corporation, but did start cutting dividends in 2014. They never got the DPRs under control. Income Trusts can pay out a bigger portion of their funds than Corporation can. Income Trust pay out based on Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO). Corporation can only pay out dividends based on EPS and Cash Flow and some say Free Cash Flow. The last year of dividend payments, the DPR for EPS for 5 years ending in March 2021 was 191%. The DPR for Cash Flow for 5 years ending in March 2021 was 74%. Also, for the financial year ending March 2021, only 2 dividend payments were made.

Debt Ratios are awful. The Long Term Debt/Market Cap Ratio in March 2020 was 4.91. The Long Term Debt/Market Cap Ratio in March 2021 is 0.02. The creditor got shares in the company for their debts. The Liquidity Ratio for 2021 is 0.47. This cannot be improved to 1.00. Even after the consolidation and recapitalization of this stock, the Debt Ratio is just 0.65. They have a negative book value.

The Total Return per year is shown below for years of 5 to 19 to the end of 2020. 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.
2015	5	-34.43%	-42.31%	-55.07%	12.76%
2010	10	-26.05%	-16.89%	-35.70%	18.81%
2005	15	-16.46%	-5.62%	-26.59%	20.97%
2001	19	-8.07%	19.13%	-15.67%	34.80%

The 5 year low, median, and high median Price/Earnings per Share Ratios are all negative and so useless. The corresponding 10 year ratios are 0.71, 0.57 and 0.52. These are so low as to be useless also. The corresponding historical ratios are 4.32, 5.23 and 6.14. These are also quite low. The current P/E Ratio is negative and so useless for testing. The P/E Ratio for 2023 is 1.17 based on a stock price of $1.19 and EPS share of $1.02. This is a really low P/E Ratio. This stock price testing suggests that the stock price is cheap.

I estimate a Graham Price of $0.48. The 10 year low, median, and high median Price/Graham Price Ratios are 0.92, 1.17 and 1.42. However, most of the Graham Prices I have, have been estimates. The current P/GP is 2.48. This stock price testing suggests that the stock price is relatively expensive. However, this is not a good test as there are so many estimate points.

I cannot get a 10 year median Price/Book Value per Share Ratio because of the negative book value. So, this test cannot be done.

I get a 10 year median Price/Cash Flow per Share Ratio of 8.97. The current P/CF Ratio is 1.67 based a stock price of $1.19, Cash Flow for last 12 months of $34.3M, and Cash Flow per Share of $0.71. The current P/CF Ratio is 81% below the 10 year median ratio. This stock price testing suggests that the stock price is cheap.

I cannot do a dividend yield test because the dividends have been cancelled or suspended.

The 10 year median Price/Sales (Revenue) Ratio is 0.25. The current P/S Ratio is 0.02 based on Revenue estimate for 2022 of $2756M, Revenue per Share of $57.31 and a stock price of $1.19. The current ratio is 92% 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. There are a few tests that cannot be done, but P/S Ratio test is good and it says the stock price is cheap. The P/CF test is a good test and it also says the stock price is cheap.

Is it a good company at a reasonable price? The stock price is cheap. However, this is a high risk stock because it is in bankruptcy protection. Shareholders are losers because the creditors have now been given shares to replace their debts. It remains to be seen if the company will recover.

When I look at analysts’ recommendations, I find Sell (1) recommendation. The consensus would be a Sell. The 12 month stock price consensus is $1.38. This implies a total return of $15.97 based on a stock price of $1.19, all from capital gains.

There was a number of entries in 2018 on Stock Chase saying Do Not Buy. Amy Legate-Wolfe on Motley Fool says that this company is a risky choice at present but she sees a turnaround in a year to two. The executive summary on Simply Wall Street gives this stock one star out of 5 and list 4 risks. In February 2021, a writer on Simply Wall Street talks about insider buying. A Reuters article published by the Globe and Mail says the company hopes to collect $100-million in costs related to the Texas winter storm.

Just Energy Group Inc is a retail energy provider specializing in electricity and natural gas commodities and bringing energy efficient solutions and renewable energy options to customers. Geographically, the company is operating in the United States and Canada, Just Energy serves residential and commercial customers. Its web site is here Just Energy Group Inc.

The last stock I wrote about was about was SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF) ... learn more. The next stock I will write about will be Accord Financial Corp (TSX-ACD, OTC-ACCFF) ... learn more on Tuesday, September 7, 2021 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.

SmartCentres REIT

Sound bite for Twitter and StockTwits is: Dividend Growth Real Estate. The stock price would seem to be reasonable. See my spreadsheet on SmartCentres REIT.

I own this stock of SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF). Once you have 5 or 6 stocks, you might want to consider a REIT for diversification. REITs are an easy way to investment in real estate. I am therefore following a few REIT stocks and in 2009 I decided to look at a few on the Dividend Achiever's List. Between 2009 and now it was taken from the list and added back to this list.

When I was updating my spreadsheet, I noticed that the stock price seemed to stall in 2015. Then it was $30.15. The stock fell in 2020 by 26% for covid and has recovered to $30.65

The dividend yields are good with dividend growth low. The current dividend yield is good (5% to 6% ranges) at 6.04%. The 5, 10 and historical dividend yields are also good at 5.50%, 5.60% and 5.88%. The dividends have been increasing by 2.8% per year over the past 5 years. However, the last dividend increase was in 2019 and it was for 2.8%.

The Dividend Payout Ratios (DPR) are fine. The DPR for EPS for 2020 is 425% with 5 year coverage at 97%. Because this is a REIT, we need to look at the DPR for Funds from Operations (FFO), which is more important than the one for EPS. The DPR for FFO for 2020 is 87% with 5 year coverage at 80%. The DPR for Adjusted Funds from Operations (AFFO) is 87% with 5 year coverage at 83%. The DPR for FFO and AFFO are fine between 75% and 95%. The DPR for FCF for 2020 is 88% with 5 year coverage at 59%.

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2020 is too high at 1.11, but is better currently at 0.81. This movement lower has to do mostly with the stock price recovery. The stock took a dive for covid and this is not unusual. The Liquidity Ratio for 2020 is 0.92. If you take into account Cash Flow less Dividends Paid in Cash and the current portion of the Long Term Debt the ratio becomes 4.32. The Debt Ratio is 1.93. The Leverage and Debt/Equity Ratios for 2020 are 2.08 and 1.08.

The Total Return per year is shown below for years of 5 to 23 to the end of 2020. 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.
2015	5	2.83%	1.22%	-5.23%	6.45%
2010	10	1.80%	6.93%	-0.12%	7.05%
2005	15	2.02%	6.58%	-0.19%	6.77%
2000	20	2.83%	14.19%	4.90%	9.29%
1997	23		26.95%	12.05%	14.90%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 13.65, 14.63 and 15.61. The corresponding 10 year ratios are 12.92, 13.98 and 15.29. The corresponding historical ratios are 14.54, 16.89 and 20.96. The current P/E Ratio is 16.30 based on a stock price of $30.65 and EPS estimate for 2021 of $1.88. The current is above the high of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive.

Because this is a REIT, we need also look at the Price/Funds from Operations Ratios. The 5 year low, median, and high median P/FFO Ratios are 13.01, 14.37 and 15.51. The corresponding 10 year ratios are 13.12, 14.51 and 15.77. The current P/FFO Ratio is 14.46 based on a stock price of $30.65 and FFO for 2021 of 2.12. The current ratio is between the median and high 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.

Because this is a REIT, we need also look at the Price/Adjusted Funds from Operations Ratios. The 5 year low, median, and high median P/AFFO Ratios are 13.88, 15.13 and 16.33. The corresponding 10 year ratios are 13.88, 15.19 and 16.46. The current P/AFFO Ratio is 17.12 based on a stock price of $30.65 and AFFO for 2021 of 1.79. The current is above the high of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $34.80. The 10 year low, median, and high median Price/Graham Price Ratios are 0.82, 0.86 and 0.96. The current P/GP Ratio is 0.88 based on a stock price of $30.65. The current ratio is between the median and high 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median

I get a 10 year median Price/Book Value per Share Ratio of 1.23. The current P/B Ratio is 1.21 based on a stock price of $30.65, Book Value of $4,316M and Book Value per Share of $25.39. The current ratio is 2% 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 15.58. The current P/CF Ratio is 16.69 based on Cash Flow for the last 12 months of $312M, Cash Flow per Share of $1.84 and a stock price of $30.65. The current P/CF Ratio is 7% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get an historical median dividend yield of 5.88%. The current dividend yield is 6.04% based on dividends of $1.85 and a stock price of $30.65. The current dividend yield is 2.7% above the historical dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get an historical median dividend yield of 5.60%. The current dividend yield is 6.04% based on dividends of $1.85 and a stock price of $30.65. The current dividend yield is 7.8% above the historical dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.

The 10 year median Price/Sales (Revenue) Ratio is 6.57. The current P/S Ratio is 6.62 based on a stock price of $30.65, Revenue estimate for 2021 of $787M, and Revenue per Share of $4.63. The current ratio is 0.8% above the 10 year median. 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 or below the median. The P/S Ratio testing shows the stock price at the median and the dividend yield tests show it below the median. The various tests show different results, but ones that show the stock price as expensive, do not show the stock that far into the expensive range.

Is it a good company at a reasonable price? The stock price would seem reasonable. Because this is a REIT, you would expect to earn your return mostly from dividends. There seems to be vastly different views by analysts of this company. I made a small purchase using my TFSA money, which is my fooling around money.

When I look at analysts’ recommendations, I find Strong Buy (2), Buy (1) and Hold (5). The consensus would be a Buy. The 12 month stock price consensus is $31.63. This implies a total return of 9.23% with 3.20% from Capital gains and 6.04% from dividends.

Analysts on Stock Chase like the company, but they disagree if it is buy or not. Joey Frenette on Motley Fool says this is a great passive investment stock to buy now. The Executive Summary on Simply Wall Street list 3 risks. The company put out a press release on Global Newswire about their second quarter of 2021. Canada Stock Channel via Nasdaq Site names this stock as a Top 25 Dividend Stock.

SmartCentres Real Estate Investment Trust is a Canadian open-ended mutual fund trust. The company principally generates revenue from property leasing operations. Smart REIT comprises two groups of properties: retail and mixed-use. Its web site is here SmartCentres REIT.

The last stock I wrote about was about was High Liner Foods (TSX-HLF, OTC-HLNFF) ... learn more. The next stock I will write about will be Just Energy Group Inc (TSX-JE, NYSE-JE) ... learn more on Friday, September 3, 2021 around 5 pm. Tomorrow on my other blog I will write about Canadian REITs.... learn more on Thursday, September 2, 2021 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.