Artis REIT

Sound bite for Twitter and StockTwits is: Dividend Growth REIT. The stock price is probably reasonable. The dividends are being raised again after being cut, so not a good dividend growth REIT. I worry about the Liquidity Ratio because it is so low. See my spreadsheet on Artis REIT.

Is it a good company at a reasonable price? The stock price is probably reasonable. It is not much of a dividend growth stock. Dividends have been flat and decreased as well as being increased. So, there is no real consistency. You will probably not lose money on this stock. See below what has happened over the past 10 years.

I do not own this stock of Artis REIT (TSX-AX.UN, OTC-ARESF). Early in 2013, this company was mentioned as a good REIT to own. A number of people I correspond with mentioned this REIT. However, my first view of it is not positive. It is also not a dividend growth stock.

When I was updating my spreadsheet, I noticed Revenue expected was $461M and it came in at $419.5M. The Adjusted Funds from Operations (AFFO) expected was $1.02, and it came in at $0.96. The Funds from Operations (FFO) $1.38 and it came in at $1.34. Basically, why EPS went up was because of “Fair value gain (loss) on investment properties”. For REITs the better measurement than EPS is the AFFO and FFO values.

If you had invested in this company in December 2011, $1007.28 you would have bought 72 shares at $13.99 per share. In December 2021, after 10 years you would have received $661.25 in dividends. The stock would be worth $859.68. Your total return would have been $1,520.93.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$13.99	$1,007.28	72	10	$661.25	$859.68	$1,520.93

The dividend yields are good with dividend growth restarting. The current dividend yield is good (5% and 6% ranges) at 5.30%. The 5 year median dividend yield is also good at 5.62%. The 10 year and historical median dividend yields are high (7% and above) at 7.14% and 7.15%. The dividends were flat between 2009 and 2017. The dividends were decreased by 50% in 2018. They were raised in 2021 by 10%. There has been no raise so far in 2022, but analysts do expect an increase in 2022 or 2023.

The Dividend Payout Ratios (DPR) are fine (with DPR from AFFO and FFO the best measure). The DPR for EPS for 2021 is 21% with 5 year coverage at 64%. The DPR for Adjusted Funds from Operations (AFFO) for 2021 is 61% with 5 year coverage at 59%. The DPR for Funds from Operations (FFO) for 2021 is 44% with 5 year coverage at 43%. The DPR for Cash Flow per Share (CFPS) for 2021 is 46% with 5 year coverage at 54%. The DPR for Free Cash Flow (FCF) for 2021 is 62% with 5 year coverage at 61%.

Most Debt Ratios are fine, but I worry about the Liquidity Ratio. The Long Term Debt/Market Cap Ratio for 2021 is 0.70 and is fine. The Debt Ratio is good at 2.16. The Leverage and Debt/Equity Ratios are good at 1.86 and 0.86. The Liquidity Ratio at 0.36 is awful. If you add in Cash Flow after dividends, you are only up to 0.46. If this is below 1.00, it means that current assets cannot cover current liabilities. Only if you add back in the debt payable and credit facilities do you get a good number (2.85). However, if debt and credit facilities cannot be rolled over, then the company could be in trouble. This can sometime happen in recessions.

The Total Return per year is shown below for years of 5 to 17 to the end of 2021. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2016	5	-11.42%	4.99%	-1.23%	2.88%
2011	10	-5.88%	5.64%	-1.57%	2.15%
2006	15	-3.78%	4.83%	-2.07%	2.53%
2004	17	-1.47%	17.33%	3.98%	2.21%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 10.06, 13.19 and 16.33. The corresponding 10 year ratios are 10.23, 12.27 and 13.24. The corresponding historical ratios are 4.07, 4.46 and 4.85. The current P/E Ratio is 2.66 based on a stock price of $11.32 and EPS for the last 12 months of $4.26. This ratio is below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I also have Adjusted Funds from Operations (AFFO) data. The 5 year low, median, and high median P/AFFO are 9.62,11.67 and 13.40. The corresponding 10 year ratios are 10.15, 11.85 and 13.34. The current P/AFFO Ratio is 11.10 based on AFFO estimate for 2022 of $1.02 and a stock price of $11.32. The current ratio is between the low and median of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I also have Funds from Operations (FFO) data. The 5 year low, median, and high median P/FFO are 7.08,836 and 9.70. The corresponding 10 year ratios are 7.82, 9.23 and 10.25. The current P/FFO Ratio is 7.92 based on FFO estimate for 2022 of $1.43 and a stock price of $11.32. The current ratio is between the low and median 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 $42.21. The 10 year low, median, and high median Price/Graham Price Ratios are 0.55, 0.65 and 0.74. The current P/GP Ratio is 0.27 based on a stock price of $11.32. 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 also do the Graham Price calculation using AFFO in the formula instead of EPS. Here I get a Graham Price of $20.65. The 10 year low, median, and high median Price/Graham Price Ratios are 054, 0.64 and 0.74. The current P/GP Ratio is 0.55 based on a stock price of $11.32. 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 10 year median Price/Book Value per Share Ratio of 0.83. The current P/B Ratio is 0.61 based on a Book Value of $2,296M, Book Value per Share of $18.59 and a stock price of $11.32. The current ratio is 27% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median Price/Cash Flow per Share Ratio of 8.43. The current P/CF Ratio is 8.53 based on last 12 month Cash Flow of $164M, Cash Flow per Share of $1.33 and a stock price of $11.32. The current ratio is 1% 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 7.15%. The current dividend yield is 5.30% based on dividends of $0.60 and a stock price of $11.32. The current dividend yield is 26% below the historical dividend yield. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 median dividend yield of 7.14%. The current dividend yield is 5.30% based on dividends of $0.60 and a stock price of $11.32. The current dividend yield is 26% below the 10 year dividend yield. This stock price testing suggests that the stock price is relatively expensive.

The 10 year median Price/Sales (Revenue) Ratio is 3.49. The current P/S Ratio is 3.48 based on a stock price of $11.32, Revenue estimate for 2022 of $402 and Revenue per Share of $3.25. The current ratio is 0.4% 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 based on the P/S Ratio test. The problem with the dividend yield test is the declining dividend. (However, declining dividends are never a good sign.) The P/AFFO test and P/FFO test are better tests than the P/E Test (because this is a REIT). These tests also show a reasonable stock price. Other tests are showing stock from cheap to reasonable.

When I look at analysts’ recommendations, I find Buy (1) and Hold (7). The consensus would be a Hold. The 12 month stock price consensus is $13.38. This implies a total return of 23.50% with 18.20% from capital gains and 5.30% from dividends.

Some, but not all analysts on Stock Chase like this stock. It is not on the Money Sense list. Stock chase gives this company 4 stars out of 5. Adam Othman on Motley Fool says it is an undervalued dividend stock. Adam Othman on Motley Fool says this stock is a bargain. He has been recommending this stock since at least July 2021. The company released their fourth quarterly 2021 results on Newswire. The company released on Newswire their first quarter of 2022 results.

Simply Wall Street on Yahoo Finance reviews this stock. They like the recent insider buying. Simply Wall Street has two risk warnings of debt is not well covered by operating cash flow and large one-off items impacting financial results

Artis Real Estate Investment Trust is an unincorporated closed-end REIT based in Canada. Artis REIT's portfolio comprises properties located in Central and Western Canada and select markets throughout the United States, including regions such as Alberta, British Columbia, Manitoba, Ontario, Saskatchewan, Arizona, Minnesota, Colorado, New York, and Wisconsin. The properties are divided into three categories: office, retail, and industrial. Its web site is here Artis REIT.

The last stock I wrote about was about was Obsidian Energy Ltd (TSX-OBE, OTC-OBELF) ... learn more. The next stock I will write about will be Dorel Industries Inc (TSX-DII.B, OTC-DIIBF) ... learn more on Wednesday, July 20, 2022 around 5 pm. Tomorrow on my other blog I will write about Life Insurance.... learn more on Tuesday, July 19, 2022 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.

Obsidian Energy Ltd

Sound bite for Twitter and StockTwits is: Resource Sector stock. The stock price is testing expensive, but it could be reasonable. I think that Liquidity is a major problem. Lots of shareholders have lost money on this stock. See my spreadsheet on Obsidian Energy Ltd.

Is it a good company at a reasonable price? The stock price could be relatively expensive or it could be relatively reasonable. I have to wonder about it being cheap. This is a resource stock and I generally do not buy resource stocks because their extreme volatility. I have around 1% of my portfolio in resource stocks and I have then so that I pay attention to resources because they are important to the Canadian economy.

I do not own this stock of Obsidian Energy Ltd (TSX-OBE, NYSE-OBE). I bought this stock as Maximum Energy Trust (MXT.UN) in 1998. In November 2001, there was a stock exchange and the stock became Ultimate Energy Fund. In June 2004 fund changed from Ultimate Energy Income Trust to Petrofund Energy. Petrofund Energy merged with Penn West in July 2006. The company changed its name from Penn West Petroleum Ltd. (TSX-PWT, NYSE-PWE) to Obsidian Energy Ltd (TSX-OBE, NYSE-OBE) in 2017.

When I was updating my spreadsheet, I noticed that this stock is back on the NYSE with the OBE symbol. This occurred at the beginning of 2022. Symbol for the US has gone from OTC-OBELF to NYSE-OBE.

It looks like there is lots of insider selling, but it is insider not keeping all their options. Over the past year, all the insiders I follow have increased the number of shares they hold. This includes the CEO, CFO, an officer, a director, and the Chairman.

If you had invested in this company in December 2011, $1,130.64 you would have bought 8 shares at $141.53 per share. In December 2021, after 10 years you would have received $154.56 in dividends. The stock would be worth $41.68. Your total return would have been $196.24.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$141.53	$1,130.64	8	10	$154.56	$41.68	$196.24

The dividends have been suspended since 2015, so there is no dividend yield or Dividend Payout Ratios.

It is not so much the company has problems with the amount of debt, the problem is with Liquidity. The Long Term Debt/Market Cap Ratio for 2021 is 0.93. Mainly due to the rise in the stock market, the ratio is down to a much better ratio currently at 0.52. The Debt Ratio is 2.15. The Leverage and Debt/Equity Ratios are 1.87 and 0.87.

The Liquidity Ratio is very low at 0.16. If you add in cash flow, it is still very low at 0.54. When under 1.00, it means that current assets cannot cover current liabilities. If you exclude the current portion of their long term debt, it is 2.05. However, the problem is that the company’s debt is short term and with short term debt, they can need money in economic hard times and find no one is willing to lend to them.

The Total Return per year is shown below for years of 5 to 26 to the end of 2021. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2016	5	0.00%	-20.68%	-20.68%	0.00%
2011	10	0.00%	-25.97%	-28.11%	2.14%
2006	15	0.00%	-14.83%	-22.72%	7.89%
2001	20	0.00%	10.98%	-14.99%	25.97%
1996	25	0.00%	11.47%	-13.38%	24.85%
1995	26	0.00%	8.83%	-13.36%	22.19%

The 5 year low, median, and high median Price/Earnings per Share Ratios are negative and useless. The corresponding 10 year ratios are also negative. The corresponding historical ratios are 4.09, 7.24 and 8.63. The problem is a lot of years with earnings losses. You cannot really do a P/E Ratio test. However, the current P/E Ratio is very low at 2.21 based on a stock price of $8.70 and EPS estimate for 2022 of $3.93. Any P/E Ratio below 10 is considered a cheap stock.

I have Funds from Operations (FFO) Data. The 5 year low, median, and high median Price/Earnings per Share Ratios are 0.31, 1.24 and 2.20. The corresponding 10 year ratios are 1.89, 4.67 and 6.66. The current P/FFO Ratio is 2.59 based on a stock price of $8.70 and FFO for last 12 months of $3.36. 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 $29.41. The 10 year low, median, and high median Price/Graham Price Ratios are 1.38, 3.64 and 5.59. (But most of the past P/FP Ratios are just guesses). The current P/GP Ratio is 0.30 based on a stock price of $8.70. This ratio is below he low of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap. A P/GP Ratio below 1.00 is a cheap ratio.

I get a 10 year median Price/Book Value per Share Ratio of 0.35. The current P/B Ratio is 0.89 based on a stock price of $8.70, Book Value of $790M, and Book Value per Share of $9.78. The current P/B Ratio is 153% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

However, any P/B Ratio under 1.50 is considered cheap. A ratio of 0.89 is very low and is pointing to a cheap stock. Another problem is the decline in Book Value per Share, which is down 21% per year over the past 5 years.

I get a 10 year median Price/Cash Flow per Share Ratio of 4.76. The current P/CF Ratio is 1.35 based on Cash Flow per Share estimate for 2022 of $6.44, Cash Flow of $520M and a stock price of $8.70. The current ratio is 72% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. Analysts are also expecting the cash flow to go up some 162%. This is rather high increase. However, even the P/CF Ratio for 2021 at 2.12 is pointing to a cheap price.

There are currently no dividends, so I can do no dividend yield tests.

The 10 year median Price/Sales (Revenue) Ratio is 0.76. The current P/S Ratio is 1.10 based on Revenue estimate for 2022 of $637M, Revenue per Share of $7.89 and a stock price of $8.70. The current ratio is 46% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. However, any P/S Ratio below 1.00 is low and 1.10 is a good ratio.

Results of stock price testing is that the stock price is probably expensive, but it could also be reasonable. This is based on the P/S Ratio and P/B Ratio tests. I hesitate to say it is expensive because the ratios are low. The very low ratios are pointing to a cheap stock price. Like for P/S Ratio, a ratio of 1.10 is low even though the test results say the stock is expensive. It is interesting that the P/FFO test is showing the stock price as reasonable and below the median. This may be the best test.

Last year I said the results of stock price testing is that the stock price is probably cheap. I think that there is only two valid tests of the P/B Ratio and the P/S Ratio and both these say that the stock is current relatively cheap.

When I look at analysts’ recommendations, I find Buy (2), Hold (1), and Underperform (1). The consensus would be a Hold. The 12 month stock price is $15.50. This implies a total return of 78.16% with it all coming from capital gain based on a stock price of $8.70.

When I look at analysts’ recommendations last year, I found Hold (1), and Underperform (1). The consensus was an Underperform. The 12 months stock price consensus was $3.63. This implies a total loss of 13.98% all from a capital loss based on a current stock price of $4.22. What happened was a price increase to 8.70 and a total return of 106.16% all from capital gains.

The last two analysts on Stock Chase say Do Not Buy. They do not like current management. Stock Chase gives this stock 3 stars out of 5. Amy Legate-Wolfe on Motley Fool says this stock is now a growth stock. Christopher Liew on Motley Fool says this company will profit if oil prices rise to $150. The company put out a Press Release on their fourth quarterly results. The company put out a Press Release on their first quarter 2022 results.

Simply Wall Street has reviewed this stock on Yahoo Finance. Simply Wall Street lists 5 warnings signs on this company of earnings are forecast to decline by an average of 53.3% per year for the next 3 years; high level of non-cash earnings; has a high level of debt; significant insider selling over the past 3 months; and Shareholders have been diluted in the past year.

Obsidian Energy Ltd, is an intermediate-sized oil and gas producer with strategic assets in Alberta. It operates in a single reporting segment that is exploration, development and holding an interest in oil and natural gas properties and related production infrastructure in the Western Canada Sedimentary Basin. The company generates the majority of the revenue from the Crude oil sale. Its web site is here Obsidian Energy Ltd.

The last stock I wrote about was about was TMX Group Ltd (TSX-X, OTC-TMXXF) ... learn more. The next stock I will write about will be Artis REIT (TSX-AX.UN, OTC-ARESF) ... learn more on Monday, July 18, 2022 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.

TMX Group Ltd

Sound bite for Twitter and StockTwits is: Dividend Growth Financial. The stock price would seem to be reasonable, but above the median. I do not like the debt ratios. However, I still do not like to debt ratios. However, this is a financial stock and they generally have lower Debt Ratios than other sectors. The financial year of 2021 did not meet analyst expectations. See my spreadsheet on TMX Group Ltd.

Is it a good company at a reasonable price? The stock price seems to be reasonable, but above the median. In a correction, you would hope to buy some stock that are relatively cheap. This stock is not cheap. I must admit that shareholders have done reasonably well in this stock over the years. Moderate dividends with moderate growth works out the best for shareholders and this is what this stock is providing.

I do not own this stock of TMX Group Ltd (TSX-X, OTC-TMXXF). I looked at this stock in 2008 after I found it on a list of Strongest Dividend Growth stocks. I am interested in such stocks.

When I was updating my spreadsheet, I noticed both Revenue and AEPS came differently than expect. Expected Revenue was $968M and it came in at $981M. Adjusted Earnings per Share (AEPS) was $6.57 and it came in at $7.10.

If you had invested in this company in December 2011, $1000.56 you would have bought 24 shares at $41.69 per share. In December 2021, after 10 years you would have received $490.80 in dividends. The stock would be worth $3,078.00. Your total return would have been $3,568.80.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$41.69	$1,000.56	24	10	$490.80	$3,078.00	$3,568.80

TMX Group Welcomes SEC Approval of BOX as National Securities Exchange and Self-Regulatory Organization (SRO) and takes an 40% economic and 20% voting interest in this new SRO. See information on Newswire. There is an increase in EPS for TMX in March 2022 quarter because of this. Analysts expect higher earnings in 2022 ($9.38) and then expects a drop of in earnings of some 24% ($7.16).

The dividend yields are moderate with dividend growth moderate. The current dividend yield is moderate (2% to 4% ranges) at 2.58%. The 5 year, 10 year and historical median dividend yields are also moderate at 2.62%, 2.88% and 2.94%. The dividend growth over the past 5 years was moderate (8% to 14% ranges) at 12.78% per year. The last dividend increase was in 2022 and it was low (below 8%) at 7.8%.

The Dividend Payout Ratios (DPR) are fine. The DPR for EPS for 2021 was 50% with 5 year coverage at 46%. The DPR for Adjusted Earnings per Share (AEPS) for 2021 was 42% with 5 year coverage at 46%. The DPR for Cash Flow per Share was 29% with 5 year coverage also at 29%. The DPR for Free Cash Flow (FCF) for 2021 was 43% with 5 year coverage at 44%.

Debt Ratios need improving. The Long Term Debt/Market Cap Ratio is 0.14. It is fine and low. The Liquidity Ratio is very low at 1.00 and if you add in cash flow after dividends is it just 1.01. It is right on the end. If below 1.00, it means that the current assets cannot cover the current liabilities. It is preferable if this ratio is 1.50 or higher. The Debt to Cash Flow in years is 2.26 and it is better if this is at 3.00. The Debt Ratio is also low at 1.06. It is preferrable if this is 1.50 or higher.

The Total Return per year is shown below for years of 5 to 19 to the end of 2021. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2016	5	12.78%	15.11%	12.39%	2.72%
2011	10	6.52%	14.82%	11.89%	2.92%
2006	15	5.65%	9.54%	7.03%	2.50%
2002	19	12.70%	21.09%	13.99%	7.10%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 16.06, 21.64 and 23.71. The corresponding 10 year ratios are 17.06, 21.69 and 24.25. The corresponding historical ratios are 16.71, 21.69 and 25.02. The current P/E Ratio is 13.71 based on a stock price of $128.58 and EPS estimate for 2022 of 9.38. 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 have Adjusted Earnings per Share (AEPS) data. The 5 year low, median, and high median Price/Earnings per Share Ratios are 15.08, 18.56 and 20.00. The corresponding 10 year ratios are 13.74, 15.49 and 17.25. The current P/AEPS Ratio is 17.81 based on a stock price of $128.58 and AEPS estimate for 2022 of $7.22. The current ratio is above the high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $121.14. The 10 year low, median, and high median Price/Graham Price Ratios are 0.87, 1.07 and 1.24. The current ratio is 1.06 based on a stock price of $128.58. 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 10 year median Price/Book Value per Share Ratio of 1.14. The current P/B Ratio is 1.85 based on a stock price of $128.58, Book Value of $3885M and Book Value per Share of $69.53. The current ratio is 62% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I also have a Book Value per Share estimate for 2022. This estimate produces a ratio of 1.79 for 2022, based on a Book Value per Share estimate for 2022 of $71.80, Book Value of $4012M and a stock price of $128.58. This ratio for 2022 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 12.30. The current P/CF Ratio is 10.54 based on Cash Flow per Share estimate for 2022 of 12.20, Cash Flow of $682M and a stock price of $128.58. The current ratio is 14% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get an historical median dividend yield of 2.94%. The current dividend yield is 2.58% based on a stock price of $128.58 and dividends of $3.32. The current dividend yield is 12% 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 2.88%. The current dividend yield is 2.58% based on a stock price of $128.58 and dividends of $3.32. 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.

The 10 year median Price/Sales (Revenue) Ratio is 5.57. The current P/S Ratio is 6.17 based on Revenue estimate for 2022 of $1,165M, Revenue per Share of $20.85 and a stock price of $128.58. The current ratio is 11% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable above the median.

Results of stock price testing is that the stock price is reasonable, but above the median. Both the dividend yield tests and the P/S Ratio test says this. Other tests vary from expensive to cheap and in between. The price of this stock, after some ups and downs, is basically back to where it started at the beginning of the year. We seem to be in a stock market correction. So, it would be nice to pick up some cheap stock, but this stock is not cheap.

Last year, the results of my stock price testing were that the stock price would seem to be on the expensive side currently. Both the dividend yield tests say this and it is confirmed by the P/S Ratio test. All the other tests say the same thing except for the P/S Ratio test which says the stock price is still reasonable, but above the median.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (2). and Hold (4). The consensus is a Buy. The 12 month stock price consensus is $151.29. This implies a total return of 20.24% with 17.66% from capital gains and 2.58% from dividends based on a stock price of $128.58.

When I look at analysts’ recommendations last year, I found Strong Buy (1), Buy (2), and Hold (4) recommendations. The consensus was Buy. The 12 months stock price consensus is $150.00. This implies at total return of 17.59% with 15.23% from capital gains and 2.37% from dividends based on a stock price of $130.18. What happened was a total return of 1.14% with a capital loss of 1.23% and dividend of 2.37%.

Analysts vary on their views of this company on Stock Chase. Stock Chase gives it 3 stars out of 5. Money Sense rates the company a C. Christopher Liew on Motley Fool reviews this stock. Says that 2022 may not be a good a year as 2021 was for this company. The company is part of the list of Top TSX stocks for May 2022 on Motley Fool. The company reports on Newswire its fourth quarter results. The company reports on TMX their first quarterly results of 2022. .

Simply Wall Street reviews this stock via Yahoo Finance. Simply Wall Street has one warning on this stock of earnings are forecast to decline by an average of 13.6% per year for the next 3 years

TMX Group Ltd is a company that operates several global markets to provide investment opportunities for its clients. TMX Group's key operations include Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange, The Canadian Depository for Securities, Montreal Exchange, Canadian Derivatives Clearing Corporation, and Trayport. TMX Group operates offices across North America (Montreal, Calgary, Vancouver, and New York), as well as in key international markets including London and Singapore. Its web site is here TMX Group Ltd.

The last stock I wrote about was about was LifeWorks Inc (TSX-LWRK, OTC-MSIXF) ... learn more. The next stock I will write about will be Obsidian Energy Ltd (TSX-OBE, NYSE-OBE) ... learn more on Friday, July 15, 2022 around 5 pm. Tomorrow on my other blog I will write about Buy Good Companies and Hold.... learn more on Thursday, July 14, 2022 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.

LifeWorks Inc

Sound bite for Twitter and StockTwits is: Dividend Paying Financial. The stock price is currently expensive. This is due to the Buyout that is to occur by the end of 2022. I see no point in holding this stock or buying it for individuals. See my spreadsheet on LifeWorks Inc .

Is it a good company at a reasonable price? I would not like this company as it is not a dividend growth company. However, shareholders have done well in total return. When I have held a stock that is going to be bought out, I have sold after the initial price increase due to the buyout. You gain little if you hold on to a stock waiting for the buyout. If the buyout is not completed, the price of the stock will drop, often significantly.

I do not own this stock of LifeWorks Inc (TSX-LWRK, OTC-MSIXF). Every once in a while, I go through the stocks that my brokerage, TD Waterhouse, is recommending to find promising new stocks. In February 2013 this stock was rated a buy by TD Waterhouse. It was under Diversified Financials.

When I was updating my spreadsheet, I noticed Telus Corp (TSX-T, NYSE-TU) will buy out this company in June of 2022 and the closing of the transaction is to occur in the fourth quarter of 2022. See the News Release.

If you had invested in this company in December 2011, $1002.24 you would have bought 96 shares at $10.44 per share. In December 2021, after 10 years you would have received $748.80 in dividends. The stock would be worth $2,642.88. Your total return would have been $3,391.68.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$10.44	$1,002.24	96	10	$748.80	$2,642.88	$3,391.68

The dividend yields are moderate with dividend growth non-existent. The current dividend yield is moderate (2% to 4% ranges) at 2.52%. The 5 year, 10 year and historical median dividend yields are also moderate at 2.60%, 4.20% and 4.95%. (This stock was an income trust before changing to a corporation in 2011.) The dividend rate has not changed since 2012.

The Dividend Payout Ratios (DPR) could be improved. The DPR for EPS for 2021 cannot be calculated because of an earnings loss. The 5 year coverage is 227%. The DPR for Cash Flow per Share is 31% with 5 year coverage at 34%. This is a good rate and dividends are covered well by cash flow. The DPR for Free Cash Flow is 85% with 5 year coverage at 95%. However, there is a large discrepancy in what different site say for FCF and I picked the lowest one.

Debt Ratios are fine, but Liquidity Ratio needs improvement. The Long Term Debt/Market Cap Ratio for 2021 is low and good at 0.18. The Liquidity Ratio is too low at 0.94. This means that the current assets cannot cover the current liabilities. If you add in Cash Flow after dividends, it is still low at 1.23 and I prefer this to be at least 1.50 (or higher). The Debt Ratio is good at 1.67. The Leverage and Debt/Equity Ratios for 2021 are fine at 2.49 and 1.49.

The Total Return per year is shown below for years of 5 to 17 to the end of 2021. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2016	5	0.00%	11.04%	7.48%	3.55%
2011	10	-0.62%	15.38%	10.18%	5.20%
2006	15	-0.41%	12.40%	6.70%	5.70%
2004	17	-0.39%	11.37%	6.14%	5.23%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 30.78, 37.46 and 44.15. The corresponding 10 year ratios are 30.23, 36.06 and 42.80. The corresponding historical ratios are 27.88, 34.66 and 37.88. The current P/E Ratio is 41.29 based on a stock price of $30.97 and EPS estimate of $0.75. The current ratio is between the median and high ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a Graham Price of $11.89. The 10 year low, median, and high median Price/Graham Price Ratios are 1.94, 2.32 and 2.67. The current P/GP Ratio is 2.61 based on a stock price of $30.97. The current ratio is between the median and high ratios of the 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 2.64. The current ratio is 3.70 based on a Book Value of $580.47, Book Value per Share of $8.37 and a stock price of $30.97. The current ratio is 40% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I also have Book Value per Share estimate for 2022. This estimate is $8.32. From this I get a ratio of 3.72 based on the Book Value per Share estimate of $8.32, Book Value of $577M, and a stock price of $30.97. This ratio is 41% 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 15.29. The current ratio 20.07 based on last 12 months Cash Flow of $107M, Cash Flow per Share of $1.54 and a stock price of $30.97. The current ratio is 31% 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 4.95%. The current dividend yield is 2.52% based on dividends of 0.78 and a stock price of $30.97. The current dividend yield is 49% above the historical dividend yield. This stock price testing suggests that the stock price is relatively expensive. The problem with this test is this company used to be an income trust and income trusts had high dividend yields. The dividends have been flat since 2012.

I get a 10 year median dividend yield of 4.20%. The current dividend yield is 2.52% based on dividends of 0.78 and a stock price of $30.97. The current dividend yield is 40% above the 10 year dividend yield. This stock price testing suggests that the stock price is relatively expensive. The problem with this test is that the dividends have been flat since 2012.

The 10 year median Price/Sales (Revenue) Ratio is 1.64. The current ratio is 2.02 based on Revenue estimate for 2022 of $1,063M, Revenue per Share of $15.34 and a stock price of $30.97. The current ratio is 23% 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. That is not surprising as the stock price increased significantly went it was to be bought out at a premium. The P/S Ratio test is saying the stock price is expensive. The 10 year dividend yield test is often good for old income trust companies, but this company has had a flat dividend since 2012.

When I look at analysts’ recommendations, I find Buy (1), Hold (1), Sell (1). The consensus would be a Hold. The 12 month target price of $30.50. This implies a total return of 1.00%, with a capital loss of 1.52% and dividends of 2.52% based on a current stock price of $30.97.

There are two recommendations on Stock Chase of Do Not Buy and Buy on Weakness. Stock Chase gives this stock 3 stars out of 5. Christopher Liew on Motley Fool talks about the takeover of this company by Telus. Adam Othman on Motley Fool in June thought this company was due for a breakout. The company talks about on Newswire their First Quarter 2022 results.

LifeWorks Inc is engaged in delivering technology-enabled solutions that help clients support the total wellbeing of their people and build organizational resiliency. Its solutions span employee and family assistance, health and wellness, recognition, pension and benefits administration, retirement consulting, actuarial and investment services. Its web site is here LifeWorks Inc .

The last stock I wrote about was about was Suncor Energy Inc (TSX-SU, NYSE-SU) ... learn more. The next stock I will write about will be TMX Group Ltd (TSX-X, OTC-TMXXF) ... learn more on Wednesday, July 13, 2022 around 5 pm. Tomorrow on my other blog I will write about Young People in the City.... learn more on Tuesday, July 12, 2022 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.

Suncor Energy Inc

I could not post yesterday because I use Rogers and my internet etc. was down all day.

Sound bite for Twitter and StockTwits is: Dividend Growth Resource. The stock price would seem to be cheap. Analyst expect this company to do well in 2022. The company seems to expect this as well with their recent dividend increase. The Dividend Payout Ratios (DPR) are high in 2021, but expected to be good in 2022. See my spreadsheet on Suncor Energy Inc.

Is it a good company at a reasonable price? The price would seem to be cheap. At least that is what is expected because of the analysts estimates. Also, the company just raised the dividends, so the company thinks that they will do well in 2022. Personally, I invest little into resource stocks because of volatility and I think you get better long term results from other sectors. I have a bit in resources, just so that I will pay attention to this sector as it is an important sector for the TSX.

I do not own this stock of Suncor Energy Inc (TSX-SU, NYSE-SU). I started following this stock as Petro-Canada (TSX-PCA). It was on Mike Higgs' list of dividend growth stocks. This was also a key stock for the Investment Reporter. My spreadsheet follows PCA into SU. PCA and SU merged in 2009.

When I was updating my spreadsheet, I noticed both Revenue and EPS came in higher than analysts had anticipated. Revenue expected was 35,975M and it came in at $39,101. EPS expected was $1.99 and it came in at $2.77.

As you can see in the section below, it can pay to buy dividend paying stocks. The 10 year total return is 2.40% per year, with a capital loss of 1.59% per year and dividends of 3.99% per year. I have seen this a lot in dividend paying stock, where shareholders do not have a total loss because of the dividend payments.

If you had invested in this company in December 2011, $1028.30 you would have bought 35 shares at $29.38 per share. In December 2021, after 10 years you would have received $388.33 in dividends. The stock would be worth $876.05. Your total return would have been $1,264.38.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$29.38	$1,028.30	35	10	$388.33	$876.05	$1,264.38

The dividend yields are moderate with dividend growth restarting. The current dividend yield is moderate (2% to 4% ranges) at 4.34%. The 5 year, 10 year dividend yields are also moderate at 3.95% and 3.14%. The historical dividend yield is low (less than 2%) at 0.87%. Dividends were decreased in 2020 and 2021. The dividends were increased by 12% in 2022. The decrease in dividends was for 50% in 2020, and the increase was 100% in 2021. In the end, current dividends are around 9% higher in 2022 than they were in 2019.

The Dividend Payout Ratios (DPR) are high in 2021, but expected to be good in 2022. The DPR for EPS for 2021 is 38% with 5 year coverage at 101%. The DPR for EPS is expected to be around 22% in 2022 with a 5 year coverage at 59%. The DPR for Cash Flow per Share for 2022 is 15% with 5 year coverage at 23%. The DPR for Free Cash Flow for 2021 is 36% with 5 year coverage at 67%. The DPR for FCF in 2022 is expected to be 20% with 5 year coverage at 44%.

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2021 is 0.39 and this is fine. The Liquidity Ratio for 2021 is 1.06. If you had in cash flow after dividends, it is 2.04. The Debt Ratio for 2021 is 1.78. The Leverage and Debt/Equity Ratios for 2021 are 2.29 and 1.29 and they are fine.

The Total Return per year is shown below for years of 5 to 26 to the end of 2021 for Suncor. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2016	5	-1.97%	-6.92%	-10.63%	3.71%
2011	10	9.34%	2.40%	-1.59%	3.99%
2006	15	13.85%	-1.47%	-3.96%	2.50%
2001	20	13.39%	6.20%	3.26%	2.94%
1996	25	10.85%	11.78%	8.14%	3.64%
1995	26		12.88%	8.99%	3.90%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 13.63, 15.44, and 17.25. The corresponding 10 year ratios are 14.47, 16.71 and 18.95. The corresponding historical ratios are 18.22, 22.38 and 27.33. The current P/E Ratio is 5.30 based on a stock price of $43.32 and EPS estimate for 2022 of $8.17. 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 Graham Price of $69.87. The 10 year low, median, and high median Price/Graham Price Ratios are 0.87, 1.01 and 1.16. The current P/GP Ratio is 0.62 based on a stock price of $43.32. The current ratio is below the low ratio of the 10 year median ratio. 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 1.36. The current P/B Ratio is 1.63 based on a stock price of $43.32, Book Value of $38,274 and Book Value per Share of $26.56. The current ratio is 20.2% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This is based on last 12 months of data, not estimate for 2022, which most of the other tests are based on.

I get a 10 year median Price/Cash Flow per Share Ratio of 6.55. The current ratio is 3.19 based on Cash Flow per Share estimate for 2022 of $13.60, Cash Flow of $19,601M and a stock price of $43.32. The current ratio is 51% 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 0.87%. The current dividend yield is 4.34% based on a stock price of $43.32 and dividends of $1.83. The current dividend yield is 38% 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 3.14%. The current dividend yield is 4.34% based on a stock price of $43.32 and dividends of $1.83. The current dividend yield is 399% 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 1.71. The current P/S Ratio is 1.09 based on a stock price of $43.35, Revenue estimate for 2022 of $57,536 and Revenue per Share of $39.92. 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 dividend yield tests point to this as does the P/S Ratio test. All the other point to this as well except for the P/B Ratio test. Most of the other testing, except for the P/B Ratio test is based on estimate for 2022 and analysts expect a very good year for this stock in 2022.

When I look at analysts’ recommendations, I find Strong Buy (5), Buy (9) and Hold (6). The consensus would be a Buy. The 12 month stock price consensus is $58.53. This implies a total return of 39.45% with 35.11% from capital gains and 4.34% from dividends based on a stock price of $43.32.

The last 5 recommendations on Stock Chase is 3 Hold and 2 Buys. Stock Chase gives this stock 5 stars out of 5. Money Sense has rated this stock as a B or C in recent years. Adam Othman on Motley Fool says that this company remained profitable in 2022 while a lot of stocks were pushed down. Andrew Button on Motley Fool says Suncor is a former Buffett favourite that has remained cheap. Suncor reports via Yahoo Finance its fourth quarter results for 2021. Suncor reports its first quarter 2022 results via BOE Report. Suncor is one of Zacks best buy for July 2022.

Suncor Energy Inc is an integrated energy company. The company's operations include oil sands development, production and upgrading, offshore oil and gas, petroleum refining in Canada and the U.S. and the company's PetroCanada retail and wholesale distribution networks. Its web site is here Suncor Energy Inc.

The last stock I wrote about was about was Premium Brands Holdings Corp (TSX-PBH, OTC-PRBZF) ... learn more. The next stock I will write about will be LifeWorks Inc (TSX-LWRK, OTC-MSIXF) ... learn more on Monday, July 11, 2022 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.

Premium Brands Holdings Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. The stock price at $95.98 is probably reasonable. Dividend Payout Ratios (DPR) are too high, but they are expected to improve. The Debt Ratios are fine. See my spreadsheet on Premium Brands Holdings Corp.

Is it a good company at a reasonable price? The current stock price is probably reasonable. The last dividend increase was in 2022 and it was for 10%, so this is a positive sign. This company has done well for shareholders over a long time.

I do not own this stock of Premium Brands Holdings Corp (TSX-PBH, OTC-PRBZF). I was looking for another stock to follow and I found this is one of the top stocks in TD Bank's Canadian Equity Fund.

When I was updating my spreadsheet, I noticed analysts expected the Revenue to increase by 14% to $4,638M, but it increased by 21% to 4,932M. However, EPS was expected to increase by 98% to 4.26, but it only increased by 41% to $3.04. It would seem the reason for the lower EPS was due to a Change in Fair Value of option Liabilities and Provision for Income Taxes. Also, the Diluted and Average outstanding shares increased by 12%.

If you had invested in this company in December 2011, $1015.65 you would have bought 61 shares at $16.65 per share. In December 2021, after 10 years you would have received $1,019.55 in dividends. The stock would be worth $7,712.84. Your total return would have been $8,732.39.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$16.65	$1,015.65	61	10	$1,019.55	$7,712.84	$8,732.39

The dividend yields are moderate with dividend growth moderate. The current dividend yield is moderate (2% to 4% ranges) at 2.92%. The 5 and 10 year median dividend yields are also moderate at 2.24% and 2.71%. The historical median dividend yield is good (5% to 6% ranges). This historical dividend yield is so high because this company used to be an income trusts that switched to a corporation in 2009. The dividend growth is currently moderated (8% to 14% ranges) at 10.82% per year for the past 5 years. The last dividend increase was in 2022 and it was for 10.2%

Some Dividend Payout Ratios (DPR) are too high, but they are expected to improve. The DPR for EPS for 2021 are 82% with 5 year coverage at 77.61%. This is too high. Analysts expect the DPR for EPS to be over 100% this year then falling to 44% in 2023. The DPR for Cash Flow per Share for 2021 is 35% with 5 year coverage at 37%. For CFPS, a rate 40% or less is fine. The DPR for Free Cash Flow for 2021 is not calculable because of a negative FCF. The 5 year coverage at 151%. This is too high. Analysts expect DPR for FCF to be around 41% in 2022.

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2021 is 0.19 but rising to 0.29 in the first quarter of 2022. However, any ratio below 0.50 is good. The Liquidity Ratio is good at 2.09. The Debt Ratio is good at 1.91. The Leverage and Debt/Equity Ratios are fine at 2.49 and 1.30.

The Total Return per year is shown below for years of 5 to 26 to the end of 2021. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2016	5	10.82%	15.21%	12.89%	2.88%
2011	10	7.76%	26.73%	22.47%	2.15%
2006	15	5.11%	23.88%	18.27%	2.53%
2001	20	4.78%	16.13%	12.86%	2.21%
1996	25		11.72%	9.88%	2.21%
1995	26		14.69%	12.44%	2.21%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 29.60, 36.05, and 41.86. The corresponding 10 year ratios are 29.17, 34.81 and 41.20. The corresponding historical ratios are 15.29, 22.02 and 24.89. The current P/E Ratio is 18.01 based on a stock price of $95.98 and EPS estimate for 2022 of $5.33. 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. However, the 5 and 10 year median ratios are high.

I get a Graham Price of $68.82. The 10 year low, median, and high median Price/Graham Price Ratios are 1.75, 2.18 and 2.55. The current P/GP Ratio is 1.39 based on a stock price of $95.98. 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. Here again, the ratios are rather high.

I get a 10 year median Price/Book Value per Share Ratio of 2.82. The current P/B Ratio is 2.43 based on a Book Value of $1762M, Book Value per Share of $39.50 and a stock price of $95.98. The current ratio is 14% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year median Price/Cash Flow per Share Ratio of 21.35. The current ratio is 10.46 based on Cash Flow per Share estimate for 2022 of $9.18, Cash Flow of $409M and a stock price of $95.98. The current ratio is 51% 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 6.12%. The current dividend yield is 2.92% based on a dividend of $2.80 and a stock price of $95.98. The current dividend yield is 52% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive.

I get an historical median dividend yield of 2.71%. The current dividend yield is 2.92% based on a dividend of $2.80 and a stock price of $95.98. The current dividend yield is 7.7% 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 0.86. The current P/S Ratio is 0.74 based on Revenue estimate for 2022 of $5,761M, Revenue per Share of $129.17 and a stock price of $95.98. The current ratio is 14% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

Results of stock price testing is that the stock price is probably reasonable. Both the 10 year median dividend yield test and the P/S Ratio test says this. Because this stock used to be an income trust, the historical median dividend yield test says it is expensive, but income trust had much higher dividends than corporations. The P/B Ratio is a good one and it says the stock price is reasonable.

There are problems with some of the other tests again this year. Analysts was expecting the CFPS to be around $9.26 for 2021 and it came in at 1.49. Most of the recent CFPS have come in, in the $4.00 and $5.00 ranges. The ratios for the P/E Ratio and P/GP Ratio tests are rather high.

Last year I said that the results of stock price testing were that the stock price is relatively expensive. The dividend yield testing was showing the stock as expensive and this is confirmed by the P/S Ratio test. The P/B Ratio test also says that this stock is relatively expensive.

Last year, I also said that there were problems with a number of these stock price tests. There are problems with the dividend yield test as this company was, until 2009 an income trust, which had high dividends. However, even the 5 year median dividend yield is lower than the other median dividend yields at 2.43%, which is still higher than the current one by 16%. I had wondered above the estimate for EPS and Cash Flow as these do seem out of line. However, the first quarterly EPS and Cash Flow per Share do show improvement over the year end values.

When I look at analysts’ recommendations, I find Buy (8) and Hold (2). The consensus would be a Buy. The 12 month consensus stock price is $139.10. This implies a total return of 47.87% with 44.93% from capital gains and 2.92% from dividends based on a stock price of $95.98.

When I look at analysts’ recommendations last year, I found Buy (8), Hold (2) and Sell (1). The consensus was a Buy. The recommendations are rather mixed. The 12 month stock price consensus is $133.00. This implies a total return of 8.32% with 6.29% from capital gains and 2.03% from dividends based on a stock price of $125.13. What happened was a move to a stock price of $95.98 and a loss of 21.27% with a capital loss of 23.30% and dividends of 2.03%.

The last recommendation on Stock Chase was in 2009. Stock Chase gives this stock 3 stars out of 5. The last time it was listed on Money Sense’s 100 best dividend stocks was 2020 and it was rated D. Adam Othman on Motley Fool says restaurants are returning to normal and you can capitalize on this bullish phase. Christopher Liew on Motley Fool thinks this is a underperforming stock ready to bounce back. A report by Simply Wall Street on Yahoo Finance that this company is priced above its peers so now may not be a good time to buy. The company on newswire talks about their fourth quarterly results. The company reports on Newswire their first quarterly results for 2022.

Premium Brands Holdings Corp is engaged in specialty food manufacturing, premium food distribution, and wholesale businesses with operations in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Nevada, and Washington State. Its web site is here Premium Brands Holdings Corp.

The last stock I wrote about was about was Empire Company Ltd (TSX-EMP.A, OTC-EMLAF) ... learn more. The next stock I will write about will be Suncor Energy Inc (TSX-SU, NYSE-SU) ... learn more on Friday, July 8, 2022 around 5 pm. Tomorrow on my other blog I will write about Something to Buy July 2022.... learn more on Thursday, July 7, 2022 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.

Empire Company Ltd

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. The stock price is probably reasonable. Dividend Payout Ratios are good, but the Debt Ratios could improve. See my spreadsheet on Empire Company Ltd.

Is it a good company at a reasonable price? The stock price is probably reasonable. The basic holding of this company is Sobeys, so it is like Metro or Loblaws. It is good to have at least one stock of these 3 grocery stocks. The company has provided reasonable returns over the long term.

I do not own this stock of Empire Company Ltd (TSX-EMP.A, OTC-EMLAF). I have known about this stock for some time before I decided to follow it.

When I was updating my spreadsheet, I noticed the company met expectations on revenue which was 29,536M and it came in at 30,162M. EPS was expected at $2.72 and came in at $2.80. The financial year I am reviewing is dated May 22, 2022. The financial year ends after April 30 each year.

If you had invested in this company in December 2011, $1,004.70 you would have bought 51 shares at $19.70 per share. In December 2021, after 10 years you would have received $218.11 in dividends. The stock would be worth $2,034.39. Your total return would have been $2,183.65.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$19.70	$1,004.70	51	10	$218.11	$2,034.39	$2,183.65

The dividend yields are low with dividend growth low. The current dividend yield is low (below 2%) at 1.65%. The 5, 10 and historical dividend yields are also low at 1.56%, 1.56% and 1.15%. The dividend growth is low at 7.9% per year over the past 5 years. The last dividend increase was for 10% and it was done in 2022.

The Dividend Payout Ratios (DPR) are fine. The DPR for EPS for 2022 21% with 5 year coverage at 26%. The DPR for Cash Flow per Share is 7% with 5 year coverage at 8%. The DPR for Free Cash Flow is 9% with 5 year coverage at 12%.

Debt Ratios are not the best. The Long Term Debt/Market Cap is good and low at 0.05. The Liquidity Ratio is low at 0.76. If you add in Cash Flow after dividends, you only get to 1.22 and I prefer this to be at 1.50 or higher. The Debt Ratio is also low at 1.45 and I prefer this to be 1.50 or higher. The Leverage and Debt/Equity Ratios are too high at 3.31 and 2.29. I prefer these to be under 3.00 and 2.00, respectively.

The Total Return per year is shown below for years of 5 to 37 to the end of 2021. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2016	5	7.91%	21.82%	19.64%	2.18%
2011	10	7.18%	8.52%	6.94%	1.58%
2006	15	7.60%	8.70%	7.10%	1.60%
2001	20	11.24%	10.34%	8.56%	1.78%
1996	25	11.83%	14.53%	12.11%	2.42%
1991	30	10.94%	12.20%	10.36%	1.83%
1986	35	9.95%	10.10%	8.70%	1.40%
1984	37	9.89%	15.02%	12.34%	2.67%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 13.18, 14.74 and 17.38. The corresponding 10 year ratios are 13.74, 17.32 and 20.70. The corresponding historical ratios are 11.25, 13.03 and 14.21. The current P/E Ratio is 13.04 based on a stock price of $38.89 and EPS estimate for 2023 of $3.06. 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 Graham Price of $36.04. The 10 year low, median, and high median Price/Graham Price Ratios are 1.00, 1.18 and 1.37. The current P/GP Ratio is 1.11 based on a stock price of $39.89. This 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 10 year median Price/Book Value per Share Ratio of 1.74. The current ratio is 2.11 based on a Book Value of $5,009M, Book Value per Share of $18.87 and a stock price of $39.89. The current ratio is 21.7% 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 6.64. The current P/CF Ratio is 5.73 based on a stock price of $39.89, Cash Flow per Share estimate for 2023 of $6.96 and Cash Flow of $1848M. The current ratio is 14% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get an historical median dividend yield of 1.45%. The current dividend yield is 1.65% based on a stock price of $39.89 and dividends of $0.66. The current dividend yield is 14% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year median dividend yield of 1.56%. The current dividend yield is 1.65% based on a stock price of $39.89 and dividends of $0.66. The current dividend yield is 6% 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 0.30. The current P/S Ratio is 0.34 based on a stock price of $39.89, Revenue estimate for 2023 of $30,342 and Revenue per Share of $115.81. The current ratio is 15% 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 reasonable and below the median and the P/S Ratio test says it is reasonable and above the median. Except for the P/B Ratio test, which says the stock price is expensive and the P/E Ratio test says the stock price is cheap, the other tests say the stock price is reasonable and below the median.

When I look at analysts’ recommendations, I find Strong Buy (3), Buy (4) and Hold (2). The consensus would be a Buy. The 12 month stock price consensus is $46.33. This implies a total return of 17.80% with 16.14% from capital gains and 1.65% from dividends.

There are no recent comments on Stock Chase by analysts. They do think it is a safe stock. Stock Chase gives it 3 stars out of 5. Money Sense gives it a C rating. Ambrose O'Callaghan on Motley Fool likes the low P/E on this stock. Christopher Liew Motley Fool says that although a Bear Market is just 6% away, this company has held steady. The company has put out a News Release on their fourth quarterly results. A Simply Wall Street report on Yahoo Finance says that this stock is selling just below its fair market value of $40.90.

Empire Co Ltd key businesses are food retailing, investments, and other operations. The company's investment and other operations segment include the investment in Crombie REIT, which is an open-ended Canadian real estate investment trust, as well as the Genstar Development Partnership. Sobeys and represents nearly all of the company's income. Its web site is here Empire Company Ltd.

The last stock I wrote about was about was Saputo Inc (TSX-SAP, OTC-SAPIF) ... learn more. The next stock I will write about will be Premium Brands Holdings Corp (TSX-PBH, OTC-PRBZF) ... learn more Wednesday, July 6, 2022 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks July 2022 .... learn more on Tuesday July 5, 2022 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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