McCoy Global Inc

Sound bite for Twitter and StockTwits is: Small Industrial Stock. The stock price is probably reasonable. Debt Ratios are good. This company has not paid a dividend since 2015. See my spreadsheet on McCoy Global Inc.

Is it a good company at a reasonable price? This company is providing services to the energy business and because of that it has booms and busts. I still find this company interesting, so I will hold on to my shares. However, I have invested much and my investing money came from my fooling around money.

I own this stock of McCoy Global Inc (TSX-MCB, OTC-MCCRF). I decided in 2011 to try out McCoy. They had just restored their dividend. I want to use it as a fuller stock in my TFSA account. For me a fuller stock is one that uses up bits of extra money in an account.

When I was updating my spreadsheet, I noticed my total return of April 30, 2023 is not as bad as last year. This total return is a loss of 2.70% per year. This includes a capital loss of 3.36% and dividends of 6.66%. Last year the loss was 9.40%. I have had this stock for 12 years and it is from my fooling around money in the TFSA.

If you had invested in this company in December 2012, for $1,001.18 you would have bought 226 shares at $4.43 per share. In December 2022, after 10 years you would have received $113.00 in dividends. The stock would be worth $214.70. Your total return would have been $327.70.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$4.43	$1,001.18	226	10	$113.00	$214.70	$327.70

However, if you had invested in this company in December 2019, for $1,000.20 you would have bought 1667 shares at $0.60 per share. In May 2023, after almost 3 years you would have received $0.00 in dividends. The stock would be worth $1,633.66. Your total return would have been $1,633.66.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$0.60	$1,000.20	1,667	3	$0.00	$1,633.66	$1,633.66

This company has not paid a dividend since 2015. I do not know when it might pay a dividend again.

Debt Ratios are good. The Long Term Debt/Market Cap Ratio is good and low at 0.08. The Liquidity Ratio is high and good at 3.01. The Debt Ratio is high and good at 2.98. The Leverage and Debt/Equity Ratios are low and good at 1.50 and 0.50.

The Total Return per year is shown below for years of 5 to 25 to the end of 2022. 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.
2017	5	0.00%	-7.33%	-7.33%	0.00%
2012	10	0.00%	-12.91%	-14.27%	1.36%
2007	15	0.00%	-4.40%	-7.48%	3.08%
2002	20	0.00%	20.56%	6.90%	13.65%
1997	25	0.00%	-2.47%	-4.92%	2.45%

This stock is up some 61% to date. This will change the Total Return over the past 25 years as shown below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2018	5	0.00%	8.88%	8.88%	0.00%
2013	10	0.00%	-13.42%	-13.90%	0.47%
2008	15	0.00%	5.20%	0.84%	4.36%
2003	20	0.00%	19.66%	7.97%	11.69%
1998	25	0.00%	1.39%	-1.07%	2.45%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 2.13, 3.05 and 3.97. The corresponding 10 year ratios are 0.53, 0.78 and 1.04. The corresponding historical ratios are 3.08, 7.31 and 10.09. The current ratio is 4.78 based on a stock price of $1.53 and EPS estimate for the last 12 months of 0.32. The 10 year ratios are low because of earning losses, so I am using the historical median P/E Ratios. The current ratio is below the low and median ratios of the historical median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $3.84 . The 10-year low, median, and high median Price/Graham Price Ratios are 0.37, 0.62 and 0.86. The current P/GP Ratio is 0.40 based on a stock price of $1.53. 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 0.89. The current P/B Ratio is 0.75 based on a stock price of $1.53, Book Value of $52.3M, and a Book Value per Share of $2.05. The current ratio is 16% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10-year median Price/Cash Flow per Share Ratio of 6.32. The current P/CF Ratio is 9.39 based on a stock price of $1.53, Cash Flow per Share of $0.25, and Cash Flow for the last 12 months of $6.33. The current ratio is 49% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. However, the 10 year median ratio is low because of past negative cash flows.

I cannot do any dividend testing as this company has suspended their dividends as of 2015.

The 10-year median Price/Sales (Revenue) Ratio is 0.64. The current P/S Ratio is 0.65 based on Revenue for the last 12 months of $60M, Revenue per Share of $2.37 and a stock price of $1.53. The current ratio is 6% 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 still reasonable. I cannot do dividend yield tests because the stock has suspended dividends. The P/S Ratio test says stock price is reasonable but above the median. Most of the other testing, except for the P/CF says the stock price is reasonable and below the median. There are problems with P/E Ratio and P/CF Ratio testing due to negative values.

When I look at analysts’ recommendations, I find very little in the way of analysts following this stock. The site that seems to be the most up to date is Yahoo and they have a Strong Buy (1). The consensus would be a Strong Buy. Other sites seem to be giving it a Hold (1) recommendation, but some of these seem out of date. But, take these together and you have a Buy consensus.

One site of Investing.com seems to be giving a current 12 months stock price forecast and it is for a decline in price to $1.25. This implies a total loss of 18%, all a capital loss based on a stock price of $1.53. Alpha Spread gives this stock a Relative Value of $1.17 CDN$, and a stock price over valued by 23% based on the current price of $1.53. It also gives a 12 months stock price consensus of $1.25. (However, this stock price looks suspicious like the price given last year!)

When I look at analysts’ recommendations last year, I found a Strong Buy (1) on Yahoo Finance. A Hold (1) on WSJ. Alpha Spread give a Discounted Cash Flow (DCF) Value of $1.46 CDN$ on Alpha Spread. I got a 12 month Stock Price on Alpha Spread of $1.25. This implies a total return of 27.6% all from capital gains based on a stock price of $0.98. What happened was a stock price move to $1.53 and total return of 56%.

Last recommendation on Stock Chase was in October 2022 and it was a Do Not Buy. Brendan Caldwell says energy services will be in demand, but he does not know much about this company. Stock Chase gives this stock 3 stars out of 5. A Bay Street article on Yahoo in April 2023 said that this stock was in play because of its FMS technology. McCoy Global announced on Newswire significant orders for their technology. The company put out a press release on Newswire about their 2022 results.

Simply Wall Street via Yahoo Finance reviews this stock in May 2023. Simply Wall Street via Yahoo Finance looked at this stock in March 2023. Simply Wall Street gives 2 warnings on this stock of high level of non-cash earnings; and does not have a meaningful market cap (CA$45M).

McCoy Global Inc is a provider of equipment and technologies to support tubular running operations, enhance wellbore integrity and assist with collecting critical data for the global energy industry. It is engaged in the design, production and distribution of capital equipment to support tubular running operations, enhance wellbore integrity and to support capital equipment sales through aftermarket products and services such as technical support, consumables and replacement parts. Its web site is here McCoy Global Inc.

The last stock I wrote about was about was Thomson Reuters Corp (TSX-TRI, NYSE-TRI) ... learn more. The next stock I will write about will be Power Corp of Canada (TSX-POW, OTC-PWCDF) ... learn more on Monday, May 15, 2023 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 site for an index to these blog entries and for stocks followed. 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Thomson Reuters Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. Stock Price would seem relatively expensive. Debt Ratios are fine, but they should improve the Liquidity Ratio. The Dividend Payout Ratios (DPR) are fine. The current dividend yield is low with dividend growth low. See my spreadsheet on Thomson Reuters Corp.

Is it a good company at a reasonable price? I bought this company for diversification. It has mostly performed fine. It is doing quite well for the past 5 and 10 years. I plan to keep this stock in my portfolio. The stock price seems relatively expensive at this point.

I own this stock of Thomson Reuters Corp (TSX-TRI, NYSE-TRI). I bought this stock in 1985 so I have had it for a very long time, almost 38 years. I bought stock to give portfolio some balance as I had too many financial stocks. Performance has often been mediocre.

When I was updating my spreadsheet, I noticed that I have had this stock for 37 years (since 1985) and I have made 9.29% per year with 6.91% from capital gains and 2.38% from dividends. This is in my Trading Account. I also had this stock in my RRSP account from 1998 to 2000 and made 14.30% per year with 11.84% from capital gains and 2.46% from dividends. I sold this because I had quite a lot invested in this stock.

If you had invested in this company in December 2012, for $1,007.30 you would have bought 35 shares at $28.78 per share. In December 2022, after 10 years you would have received $631.80. in dividends. The stock would be worth $5,406.10. Your total return would have been $6,037.90.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$28.78	$1,007.30	35	10	$631.80	$5,406.10	$6,037.90

The current dividend yield is low with dividend growth low. The current dividend yield is low (below 2% at 1.61%. The 5, 10 and historical dividend yields are moderate (2% to 4% ranges) at 2.13%, 2.95% and 2.84%. The dividend growth has been low (below 8% per year) at 5.6% per year over the past 5 years.

The Dividend Payout Ratios (DPR) are fine. The DPR for EPS for 2022 is 65% with 5 year coverage at 30%. The DPR for Adjusted Earnings per Share (ARPS) for 2022 is 70% with 5 year coverage at 106%. The DPR for Cash Flow per Share (CFPS) for 2022 is 43% with 5 year coverage at 48%. The DPR for Free Cash Flow (FCF) for 2022 is 55% with 5 year coverage at 69%.

Item	Cur	5 Years
EPS	64.73%	30.35%
AEPS	69.53%	106.21%
CFPS	42.53%	47.98%
FCF	55.30%	68.50%

Debt Ratios are fine, but they should improve the Liquidity Ratio. The Long Term Debt/Market Cap Ratio for 2022 is good and low at 0.06. The Liquidity Ratio is very low at 0.57. If you add in Cash Flow after dividends it is just 0.79. The current assets cannot cover the current liabilities. It is only when you add back the current portion of the long term debt, that the ratio is above 1.00 and then it is still low at 1.17. The 5 year median for this ratio is 1.33. It is low, but acceptable. The Debt Ratio is good at 2.21.

The Total Return per year is shown below for years of 5 to 37 to the end of 2022 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.
2017	5	5.56%	25.51%	23.03%	2.48%
2012	10	6.32%	21.45%	18.30%	3.16%
2007	15	5.39%	11.51%	9.37%	2.14%
2002	20	3.73%	8.64%	6.73%	1.92%
1997	25	4.22%	7.51%	5.66%	1.85%
1992	30	4.89%	11.28%	8.21%	3.07%
1987	35	5.36%	8.91%	6.59%	2.32%
1985	37	5.79%	9.02%	6.66%	2.36%

The Total Return per year is shown below for years of 5 to 32 to the end of 2022 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.
2017	5	5.22%	23.63%	21.17%	2.46%
2012	10	3.35%	17.58%	14.71%	2.87%
2007	15	4.06%	9.20%	7.10%	2.10%
2002	20	4.74%	10.68%	7.54%	3.14%
1997	25	4.52%	8.33%	5.88%	2.45%
1992	30	4.67%	13.40%	9.08%	4.32%
1990	32	5.37%	9.51%	6.62%	2.89%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 15.64, 19.68 and 23.72. The corresponding 10 year ratios are 18.11, 21.15 and 24.19. The corresponding historical ratios are 18.13, 19.66 and 23.96. The current P/E Ratio is 34.50 based on a stock price of $168.14 and EPS estimate for 2023 of $4.87 ($6.34 US$). The current ratio is above the high ratio of the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in CDN$.

I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Earnings per Share Ratios are 36.33, 46.37 and 56.40. The corresponding 10 year ratios are 23.93, 30.04 and 35.68. The current P/AEPS Ratio is 38.31 based on a AEPS estimate for 2023 of $3.28 and a stock price of $125.67. The current ratio is above the high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. You will get a similar answer in CDN$.

I get a Graham Price of $57.54 . The 10-year low, median, and high median Price/Graham Price Ratios are 1.72, 2.05 and 2.33. The current P/GP Ratio is 2.92 based on a stock price of $168.14. The current ratio is above the high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive. This testing is in CDN$.

I get a 10-year median Price/Book Value per Share Ratio of 2.47. The current P/B Ratio is 4.12 based on a stock price of $125.67, Book Value of $14,515M, and Book Value per Share of $30.49. The current ratio is 67% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. You will get a similar answer in CDN$.

I also have Book Value per Share estimate for 2023 of $25.50. This implies a ratio of 4.93 based on a stock price of $125.67, and a Book Value of $12,140M. This ratio is 100% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. You will get a similar answer in CDN$.

I get a 10-year median Price/Cash Flow per Share Ratio of 14.51. The current P/CF Ratio is 24.35 based on Cash Flow per Share estimate for 2023 of $5.16, Cash Flow of $2,456M and a stock price of $125.67. The current ratio is 68% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. You will get a similar answer in CDN$.

I get an historical median dividend yield of 3.05%. The current dividend yield is 1.56% based on dividends of $1.96 and a stock price of $125.67. The current dividend yield is 49% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. You will get a similar answer in CDN$.

I get a 10 year median dividend yield of 3.07%. The current dividend yield is 1.56% based on dividends of $1.96 and a stock price of $125.67. The current dividend yield is 49% below the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. You will get a similar answer in CDN$.

The 10-year median Price/Sales (Revenue) Ratio is 3.46. The current P/S Ratio is 8.75 based on Revenue estimate for 2023 of $6,839M, Revenue per Share of $14.37 and a stock price of $125.67. The current ratio is 153% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. You will get a similar answer in CDN$.

Results of stock price testing is that the stock price is relatively expensive. The dividend yield tests say this and it is confirmed by the P/S Ratio test. All the testing says the same thing. I did the testing mostly in US$ because this company reports in US$ and the estimates are given in US$.

When I look at analysts’ recommendations, I find Strong Buy (2), Buy (4), Hold (8), Underperform (2) and Sell (2). The consensus is a Hold. The 12 month stock price consensus is $177.56 ($132.61 US$). This implies a total return of 7.16% with 5.61% from capital gains and 1.56% from dividends. An Do Not Buy on Stock Chase by Robert Gill says that it is a tremendous business model on paper, but profitability is tepid and has an eye popping P/E.

The company has mixed reviews on Stock Chase. Stock Chase gives this stock 3 stars out of 5. This stock is 82 on the Money Sense list. It is on the Aristocrat list. Robin Brown on Motley Fool says this is a safe dividend stock. Christopher Liew on Motley Fool says to buy this stock for passive income. The company put out a press release on Newswire about their 2022 results. The company put out a press release on Newswire about their 2023 first quarter results.

Simply Wall Street via Yahoo Finance put out a review on this stock. Simply Wall Street put out 2 warnings on this stock of profit margins (16.5%) are lower than last year (25.9%); and significant insider selling over the past 3 months.

Thomson Reuters is the result of the megamerger of Canada's Thomson and the United Kingdom's Reuters Group in 2008. In 2021, Thomson Reuters completed the sale of Refinitiv to LSE Group. Thomson Reuters' three largest segments are its legal professionals, Tax and accounting, and corporates segments. Its web site is here Thomson Reuters Corp.

The last stock I wrote about was about was WSP Global Inc (TSX-WSP, OTC-WSPOF) ... learn more. The next stock I will write about will be McCoy Global Inc (TSX-MCB, OTC-MCCRF) ... learn more on Friday, May 12, 2023 around 5 pm. Tomorrow on my other blog I will write about Investing and Volatility .... learn more on May 11, 2023 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 site for an index to these blog entries and for stocks followed. 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

WSP Global Inc

Sound bite for Twitter and StockTwits is: Dividend Paying Industrial. Debt Ratios are fine. The stock price seems to be currently expensive. The Dividend Payout Ratios (DPR) are fine, but not particularly low considering how low the dividend yield is. The current dividend yield is low with dividend growth non-existent. See my spreadsheet on WSP Global Inc.

Is it a good company at a reasonable price? I own this stock and I still like it. However, I must wonder if it is truly a dividend stock because the dividend yield is so low at just 0.48%. If they do not do any dividend increases soon, I might just sell it. The stock price seems expensive currently.

I own this stock of WSP Global Inc (TSX-WSP, OTC-WSPOF). This company used to be called Genivar. Genivar was in an article I read so I investigated it and decided to buy.

When I was updating my spreadsheet, I noticed I have done well with this stock. My Total Return is 24.23% per year with 21.29% from capital gains and 2.94% from dividends. I have had this stock for 12 years.

The growth rate on this stock seems to be slowing. See chart below on 5 and 10 year growth rates.

Year	Item	Tot. Growth	Per Year
5	Revenue Growth	71.89%	11.44%
5	AEPS Growth	152.19%	20.32%
5	Net Income Growth	102.44%	15.15%
5	Cash Flow Growth	110.65%	16.07%
5	Dividend Growth	0.00%	0.00%
5	Stock Price Growth	162.21%	21.26%
10	Revenue Growth	848.94%	25.23%
10	AEPS Growth	400.00%	17.46%
10	Net Income Growth	832.61%	25.02%
10	Cash Flow Growth	748.75%	23.84%
10	Dividend Growth	0.00%	0.00%
10	Stock Price Growth	719.03%	23.40%

< If you had invested in this company in December 2012, for $1,016.54 you would have bought 53 shares at $19.18 per share. In December 2022, after 10 years you would have received $795.90. in dividends. The stock would be worth $8,325.80. Your total return would have been $9,120.77.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$19.18	$1,016.54	53	10	$795.00	$8,325.77	$9,120.77

If you had invested in this company in December 2005 when this stock was first issued, for $1,000.00 you would have bought 100 shares at $10.00 per share. In December 2022, after 17 years you would have received $2,395.20. in dividends. The stock would be worth $15,709.80. Your total return would have been $18,104.20.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$10.00	$1,000.00	100	17	$2,395.20	$15,709.00	$18,104.20

The current dividend yield is low with dividend growth non-existent. The current dividend is low (below 2%) at 0.84%. The 5 year median dividend yield is also low at 1.60%. The 10 year and historical median dividend yields are moderate (2% to 4%) at 2.58% and 4.31%. The dividends have been flat since 2009. The problem is that this company started out as an Income Trust and such company paid high dividends. At this point I wonder about even calling this stock a dividend stock.

The Dividend Payout Ratios (DPR) are fine, but not particularly low considering how low the dividend yield is. The DPR for EPS for 2022 is 37% with 5 year coverage at 48%. The DPR for Adjusted Earnings per Share (AEPS) for 2022 is 26% with 5 year coverage at 40%. The DPR for Cash Flow per Share (CFPS) is 15% with 5 year coverage at 18%. The DPR for Free Cash Flow (FCF) for 2022 is 29% with 5 year coverage at 15%.

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio is good and low at 0.14. The Liquidity Ratio is low at 1.09 and still low at 1.23 if you had in cash flow after dividends. The Debt Ratio is good at 1.68. The Leverage and Debt/Equity Ratios are fine at 2.47 and 1.47.

The Total Return per year is shown below for years of 5 to 17 to the end of 2022. 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.
2017	5	0.00%	23.04%	21.26%	1.78%
2012	10	0.00%	27.20%	23.40%	3.80%
2007	15	2.77%	15.66%	12.65%	3.00%
2005	17	6.88%	22.92%	17.59%	5.33%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 24.65, 36.77 and 44.61. The corresponding 10 year ratios are 22.50, 27.48 and 32.50. The corresponding historical ratios are 16.51, 20.60 and 24.55. Lately there has been a big run up in P/E Ratios. The current P/E Ratio is 35.13 based on a stock price of $178.81, and EPS estimate for 2023 of $5.09. 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 also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 20.22, 26.14 and 31.42. The corresponding 10 year ratios are 18.69, 23.56 and 27.88. The current P/AEPS Ratio is 27.51 based on a stock price of $178.81 and AEPS estimate for 2023 of $6.50. 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 $84.01. The 10-year low, median, and high median Price/Graham Price Ratios are 1.18, 1.49 and 1.69. The current P/GP Ratio is 1.99 based on a stock price of $178.81. This 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 10-year median Price/Book Value per Share Ratio of 1.96. The current P/B Ratio is 3.71 based on a Book Value of $6,006M, Book Value per Share of $3.50 and a stock price of $178.81. The current ratio is 89% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I get a 10-year median Price/Cash Flow per Share Ratio of 12.48. The current P/CF Ratio is 18.25 based on a Cash Flow per Share estimate for 2023 of $9.80, Cash Flow of $1,220M and a stock price of $178.81. The current ratio is 46% 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 4.31%. The current dividend yield is 0.84% based on dividends of $1.50 and a stock price of $178.81. The current dividends are 81% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive. Problem is that the company used to be an income trust with high dividends and they have not raised the dividends since 2009.

I get a 10 year median dividend yield of 2.58%. The current dividend yield is 0.84% based on dividends of $1.50 and a stock price of $178.81. The current dividends are 68% below the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively expensive. Problem is that the company used to be a income trust with high dividends and they have not raised the dividends since 2009.

The 10-year median Price/Sales (Revenue) Ratio is 1.14. The current P/S Ratio is 2.12 based on Revenue estimate for 2023 of $10,518M, Revenue per Share of $84.51 and a stock price of $178.81. The current ratio is 68% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

Results of stock price testing is that the stock price is relatively expensive. The dividend yield testing should probably be excluded because of lack of dividend increases since 2009. However, the P/S Ratio test say the stock price is relatively expensive and so do almost all the stock price testing.

When I look at analysts’ recommendations, I find Strong Buy (3), Buy (8), Hold (1) and Sell (1). The consensus would be a Buy. Ross Healy on Stock Chase says that the stock is selling above its Fair Market Value (FMV) and it is expensive. He thinks there will be setback in price. In January 2023, Simply Wall Street via Yahoo Finance gave a FMV of $155.51 CDN$.

Analysts on Stock Chase believe this stock is a buy. Stock Chase gives this stock 5 stars out of 5. Adam Othman on Motley Fool thinks you can use this stock to build your nest egg. Aditya Raghunath on Motley Fool thinks that this company is a current smart buy. The company put out a Press Release on their 2022 results.

Simply Wall Street put out a report on this stock via Yahoo Finance. Simply Wall Street has 3 warnings of has a high level of debt; large one-off items impacting financial results; and shareholders have been diluted in the past year. Simply Wall Street gives this stock 3 and one half stars out of 5.

WSP Global Inc provides engineering and design services to clients in the Transportation and Infrastructure, Property and Buildings, Environment, Power and Energy, Resources, and Industry sectors. It also offers strategic advisory services. The firm operates through four reportable segments namely, Canada, Americas (US and Latin America), EMEIA (Europe, Middle East, India, and Africa), and APAC (Asia Pacific, comprising Australia, New Zealand and Asia). Its web site is here WSP Global Inc.

The last stock I wrote about was about was Algoma Central Corporation (TSX-ALC, OTC-AGMJF) ... learn more. The next stock I will write about will be Thomson Reuters Corp (TSX-TRI, NYSE-TRI) ... learn more on Wednesday, May 10, 2023 around 5 pm. Tomorrow on my other blog I will write about The Psychology of Money.... learn more on Tuesday, May 9, 2023 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 site for an index to these blog entries and for stocks followed. 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Algoma Central Corporation

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. The stock price is reasonable and may even be cheap. Debt Ratios are good The Dividend Payout Ratios (DPR) are fine. The current dividend yield is moderate with dividend growth good. See my spreadsheet on Algoma Central Corporation.

Is it a good company at a reasonable price? This is an interesting company and shareholders have done well. However, it is a small company with few analysts following it. The risk level would be relatively high. However, they do have good debt ratios and this counts a lot for small companies. The stock price seems rather cheap by the dividend growth testing.

I do not own this stock of Algoma Central Corporation (TSX-ALC, OTC-AGMJF). I got the name of the internet. The description was that Algoma Central Corporation is a Canadian shipping company. It operates Canadian flag fleet of dry and liquid bulk carriers operating on the Great Lakes. The company operates its business through six segments that are Domestic Dry-Bulk, Product Tankers, Ocean Self Unloaders, Corporate, Investment Properties, and Global Short Sea Shipping.

When I was updating my spreadsheet, I noticed this company has done well for its shareholders over the longer term. See chart on Total Return below. Also, the company gave out a special dividend of $2.65 per share in 2021 and has given out another special dividend in 2023 of $1.35 per share. This company is not well followed. It is a relatively small cap worth around $583M.

The chart below shows that they have had relatively good growth over the past 5 years.

Year	Item	Tot. Growth	Per Year
5	Revenue Growth	50.30%	8.49%
5	AEPS Growth	192.68%	23.96%
5	Net Income Growth	113.48%	16.38%
5	Cash Flow Growth	112.11%	16.23%
5	Dividend Growth	112.50%	16.27%
5	Stock Price Growth	43.78%	7.53%
10	Revenue Growth	20.98%	1.92%
10	AEPS Growth	118.18%	8.11%
10	Net Income Growth	173.78%	10.60%
10	Cash Flow Growth	58.08%	4.69%
10	Dividend Growth	209.09%	11.95%
10	Stock Price Growth	63.33%	5.03%

If you had invested in this company in December 2012, for $1,003.98 you would have bought 90 shares at $11.16 per share. In December 2022, after 10 years you would have received $675.90. in dividends. The stock would be worth $1,639.80. Your total return would have been $2,315.70.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$11.16	$1,003.98	90	10	$675.90	$1,639.80	$2,315.70

If you had invested in this company in December 1992, for $1,000.44 you would have bought 1013 shares at $0.99 per share. In December 2022, after 30 years you would have received $9,909.17. in dividends. The stock would be worth $18,456.86. Your total return would have been $28,366.03.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$0.99	$1,000.44	1,013	30	$9,909.17	$18,456.86	$28,366.03

The current dividend yield is moderate with dividend growth good. The current dividend yield is moderate (2% to 4% ranges) at 4.71%. The 5, 10 year and historical median dividend yields are moderate at 4.04%, 3.31% and 2.65%. The dividends have increased at a good rate (15% and over) at 16.3% per year over the past 5 years.

The Dividend Payout Ratios (DPR) are fine. The DPR for EPS for 2022 is 24% with 5 year coverage at 76%. The DPR for Adjusted Earnings per Share (AEPS) for 2022 is 28% with 5 year coverage at 36%. The DPR for Cash Flow per Share (CFPS) is 23% with 5 year coverage at 36%. The DPR for Free Cash Flow (FCF) for 2022 is 40% with 5 year coverage at 107%. There is disagreement on what the FCF is.

Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2022 is 0.57 and is fine. The Liquidity Ratio for 2022 is good and high at 1.66. The Debt Ratio is good and high at 2.15. The Leverage and Debt/Equity Ratios are good and low at 1.87 and 0.87.

The Total Return per year is shown below for years of 5 to 34 to the end of 2022. 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.
2017	5	16.27%	15.37%	7.53%	7.83%
2012	10	11.95%	9.64%	5.03%	4.62%
2007	15	11.11%	6.93%	3.58%	3.35%
2002	20	10.06%	12.40%	8.51%	3.89%
1997	25	7.97%	7.21%	4.61%	2.61%
1992	30	0.00%	14.65%	10.20%	4.45%
1988	34	7.40%	10.14%	7.34%	2.80%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 6.91, 8.42 and 9.65. The corresponding 10 year ratios are 8.12, 9.17 and 11.28. The corresponding historical ratios are 7.01, 8.34 and 9.98. The current P/E Ratio is 8.01 based on a stock price of $15.30 and EPS estimate for 2023 of $1.91. The current ratio is below the low ratio for the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.

I also have Adjusted Earnings per Share (AEPS) Ratios. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 8.76, 10.21 and 11.02. The corresponding 10 year ratios are 9.73, 10.82 and 12.24. The current PAEPS Ratio is 8.01 based on a stock price of $15.30 and AEPS estimate for 2023 of $1.91. This 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 Graham Price of $28.09. The 10-year low, median, and high median Price/Graham Price Ratios are 0.53, 0.60 and 0.67. The current P/GP Ratio is 0.54 based on a stock price of $15.30. 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 0.69. The current P/B Ratio is 0.83 based on a stock price of $15.30, Book Value of $729M and Book Value per Share of $18.36. The current ratio is 21% above the 10 year 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 5.58. The current P/CF Ratio is 4.44 based on a stock price of $15.30, Cash Flow per Share $3.45 and Cash Flow for the last 12 months of $133M. The current ratio is 3% 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 2.65%. The current dividend yield is 4.71% based on dividends of $0.72 and a stock price of $15.30. The current dividend yield is 78% above the historical median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median dividend yield of 3.31%. The current dividend yield is 4.71% based on dividends of $0.72 and a stock price of $15.30. The current dividend yield is 42% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

The 10-year median Price/Sales (Revenue) Ratio is 0.95. The current P/S Ratio is 0.84 based on Revenue estimate for 2023 of $703M, Revenue per Share of $18.21 and a stock price of $15.30. The current ratio is 11% 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 reasonable and probably even cheap. The dividend yield tests are saying that the stock price is cheap. A problem maybe that the dividend growth is quite fast. The P/S Ratio testing is saying the stock price is reasonable and below the median. Most of the rest of the testing of stock price is either say the stock price is cheap or reasonable and below the median.

When I look at analysts’ recommendations, I find on Investing.com Buy (3) recommendations. The Consensus is a Buy. The 12 month consensus stock price is $23.25. This implies a total return of 56.67% with 51.96% from capital gains and 4.71% from dividends.

This stock is not much followed on Stock Chase. Stock Chase gives this stock 4 stars out 5. There is one recommendation of Buy for 2023. This stock is not well followed. Ambrose O'Callaghan on Motley Fool thought this stock was a buy in February 2022. The company put out a Press Release on their 2022 results via Business Wire. The company put out a Press Release on Business Wire about their first quarter of 2023.

Simply Wall Street via Yahoo Finance talks about this company’s dividends. Simply Wall Street via Yahoo Finance reviews this stock and think it deserves investor’s attention. Simply Wall Street gives 4 warnings of has a high level of debt; unstable dividend track record; large one-off items impacting financial results; and shareholders have been diluted in the past year. Note: this stock only has an unstable dividend track record if you are receiving dividends in US$ because dividends are paid in CDN$. For Canadians, the dividend track record is not unstable. Also, note that company do Adjusted Earnings per Share (AEPS) to handle the problem of large one-off items affecting financial results.

Algoma Central Corp owns and operates a fleet of dry and liquid bulk carriers operating on the Great Lakes, St. Lawrence Waterway. The company's Canadian flag fleet consists of self-unloading dry-bulk carriers, gearless dry-bulk carriers, and product tankers. Its web site is here Algoma Central Corporation.

The last stock I wrote about was about was Fortis Inc (TSX-FTS, OTC-FRTSF) ... learn more. The next stock I will write about will be WSP Global Inc (TSX-WSP, OTC-WSPOF) ... learn more on Monday, May 8, 2023 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 site for an index to these blog entries and for stocks followed. 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Fortis Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Utility. Results of stock price testing is that the stock price is probably reasonable. Debt Ratios are fine, but debt is high. The Dividend Payout Ratios (DPR) are fine. The current dividend yield is moderate with dividend growth low. See my spreadsheet on Fortis Inc .

Is it a good company at a reasonable price? I have done well with most of my utility stocks over time. I still think that this is a good utility stock. I plan to hold on to my shares, but I will not buy more as I have enough of this company in my portfolio. The stock price is reasonable.

I own this stock of Fortis Inc (TSX-FTS, OTC-FRTSF). I bought this stock as Newfoundland Light and Power Co. Ltd. Class A shares in 1987. I bought more in 1995, 1998 and 2005.

When I was updating my spreadsheet, I noticed I first bought this stock 35 years ago and then made a few other purchases over the years, the last being in 2005. I have earned a total return of 12.86% per year with 7.48% from capital gains and 5.38% from dividends.

If you had invested in this company in December 2012, for $1,026.60 you would have bought 30 shares at $34.22 per share. In December 2022, after 10 years you would have received $503.25. in dividends. The stock would be worth $1,625.40. Your total return would have been $2,128.65.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$34.22	$1,026.60	30	10	$503.25	$1,625.40	$2,128.65

The current dividend yield is moderate with dividend growth low. The current dividend yield is moderate (2% to 4% ranges) at 3.73%. The 5, 10 and historical dividend yields are also moderate at 3.34%, 3.34% and 3.71%. The dividend increases are low (below 8% per year) at 6% per year over the past 5 years.

The Dividend Payout Ratios (DPR) are fine. The DPR for EPS for 2022 is 78% with 5 year coverage at 73%. The DPR for Adjusted Earnings per Share (AEPS) for 2022 is 78% with 5 year coverage at 75%. The DPR for Adjusted Funds from Operations (AFFO) for 2022 is 58%, with 5 year coverage at 65%. The DPR for Cash Flow per Share (CFPS) for 2022 is 29% with 5 year coverage at 29%. The DPR for Free Cash Flow (FCF) cannot be calculated because of negative FCF.

Debt Ratios are fine, but debt is high. The Long Term Debt/Market Cap Ratio for 2022 is high at 0.99. However, utilities tend to have high debt levels. The Liquidity Ratio for 2022 is low at 0.65. If you add on Cash Flow after dividends it only gets to 0.95%. This means that the current assets cannot cover the current liabilities when the ratio is below 1.00. If you add back the current portion of the Long Term Debt, you get a ratio of 1.52. You need to ensure that debt can be rolled over in this case. The Debt Ratio is for 2022 is good at 1.55.

The Total Return per year is shown below for years of 5 to 41 to the end of 2022. 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.
2017	5	5.95%	7.21%	3.28%	3.93%
2012	10	6.10%	8.61%	4.70%	3.90%
2007	15	6.70%	7.94%	4.26%	3.69%
2002	20	7.78%	11.88%	7.35%	4.53%
1997	25	6.59%	10.95%	6.78%	4.16%
1992	30	6.05%	12.50%	7.54%	4.97%
1987	35	5.77%	12.35%	7.20%	5.15%
1982	40	6.04%	13.61%	7.50%	6.11%
1981	41	6.19%	13.31%	7.37%	5.94%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 17.63, 20.14 and 22.63. The corresponding 10 year ratios are 17.64, 19.75 and 21.83. The corresponding historical ratios are 13.08, 15.04 and 16.82. The current P/E Ratio is 18.71 based on a stock price of $60.67 and EPS estimate for 2023 of $2.96. 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 also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 17.63, 20.38 and 22.89. The corresponding 10 year ratios are 17.22, 19.49 and 21.49. The current P/AEPS Ratio is 20.57 based on a stock price of $60.67 and AEPS estimate for 2023 of $2.95. 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 also have Adjusted Funds from Operations (AFFO) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 15.75, 17.21 and 19.04. The corresponding 10 year ratios are 15.30, 17.08 and 19.10. The current P/AFFO Ratio is 16.22 based on a stock price of $60.67 and AFFO estimate for 2023 of $3.74. The current ratio is 5.7% 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 Graham Price of $51.54. The 10-year low, median, and high median Price/Graham Price Ratios are 0.96, 1.11 and 1.22. The current P/GP Ratio is 1.18 based on a stock price of $60.67. 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 1.41. The current P/B Ratio is 1.52 based on a Book Value of $19,407, Book Value per Share of $40.25 and a stock price of $60.67. The current ratio is above the 10 year median ratio by 7%. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I also have a Book Value per Share estimate for 2023 of $42.00. Because for this estimate, the Book Value is calculated differently than mine, the current P/B Ratio would be 1.20. The estimate would imply a Book Value of $20,252M, and a ratio of 1.44 with a stock price of $60.67. This current ratio of 1.44 is 20.1% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I get a 10-year median Price/Cash Flow per Share Ratio of 8.70. The current P/CF Ratio is 8.44 based on a stock price of $60.67, Cash Flow per Share estimate for 2023 of $7.19 and a Cash Flow of $3,467M. The current ratio is 3% 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 3.71%. The current dividend yield is 3.73% based on a stock price of $60.67 and dividends of $2.26. The current dividend yield is 0.4% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year median dividend yield of 3.34%. The current dividend yield is 3.73% based on a stock price of $60.67 and dividends of $2.26. The current dividend yield is 11.5% 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 2.32. The current P/S Ratio is 2.59 based on a stock price of $60.67, Revenue estimate for 2023 of $11,274M and Revenue per Share of $23.38. The current ratio is 12% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

Results of stock price testing is that the stock price is probably reasonable. The dividend yield tests show the price as reasonable and below the median, and the P/S Ratio test shows the stock price as reasonable, but above the median. The other tests, except for the P/B Ratio estimate test, shows the stock price as reasonable and above or below the median.

When I look at analysts’ recommendations, I find Strong Buy (2), Buy (2), Hold (10), Underperform (1) and Sell (2). The consensus is a hold. The 12 month stock price consensus is $58.04. This implies a Total Return of a loss of 0.61% with a capital loss of 4.33% and dividends of 3.73%. Late last year Stan Wong gave a Do Not Buy recommendations because he said there was a negative total return over the last 12 months. That is the only negative I saw.

Analysts in 2023 on Stock Chase says this stock is a buy. Stock Chase gives this stock 5 stars out of 5. It is on the Money Sense list at 79. Motley Fool says this stock is a retiree staple stock. Andrew Button on Motley Fool says if we have an recession, investors are better off with non-cyclical stocks. The company put out a Press Release about their 2022 results.

Simply Wall Street reviews this stock via Yahoo Finance. Simply Wall Street gives this stock 2 and one half starts out of 5. Simply Wall Street has w warnings of interest payments are not well covered by earnings; and dividend of 3.8% is not well covered.

Fortis owns and operates eight utility transmission and distribution subsidiaries in Canada and the United States, serving more than 3.4 million electricity and gas customers. The company has smaller stakes in electricity generation and several Caribbean utilities. Its web site is here Fortis Inc .

The last stock I wrote about was about was SNC-Lavalin Group Inc (TSX-SNC, OTC-SNCAF) ... learn more. The next stock I will write about will be Algoma Central Corporation (TSX-ALC, OTC-AGMJF) ... learn more on Friday, May 05 around 5 pm. Tomorrow on my other blog I will write about Something to Buy May 2023.... learn more on Thursday, May 4, 2023 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 site for an index to these blog entries and for stocks followed. 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

SNC-Lavalin Group Inc

Sound bite for Twitter and StockTwits is: Dividend Paying Industrial. The stock price seems reasonable. Debt Ratios need improving, especial the Liquidity Ratio. The Dividend Payout Ratios (DPR) are fine and expected to improve. The current dividend yield is low with dividend growth non-existent. See my spreadsheet on SNC-Lavalin Group Inc.

Is it a good company at a reasonable price? The stock price is probably reasonable. Given that dividends have been cut to a very low level and the stock price is still around 47% below its peak in 2010, for me it would take a very cheap price for me even to consider this stock again. A good sign to me would be an increase in dividends and would show that the company has confidence in their future. Currently the dividends are so low, I wonder about calling it a dividend paying stock. Also, I do not like their debt ratios. This is a big negative for me.

I do not own this stock of SNC-Lavalin Group Inc (TSX-SNC, OTC-SNCAF). I sold my stock in SNC-Lavalin (TSX-SNC, OTC-SNCAF) om 2019. I had given up hope that there will be any sort of resolution for this company anytime soon. I live off my dividends and they have cut the dividends twice this year. In 2019 the Investment Reporter has removed this stock from their Key Stock List and Issued a sell on the stock.

Also, in 2019 the largest shareholder and a shareholder for lots of Quebec companies of Caisse de Depot et Placement du Quebec seems to be losing patience with this stock also.

When I was updating my spreadsheet, I noticed I had earned a total return of 23.16% with 19.73% from capital gains and 3.43% from dividends for this stock when I sold in 2019. My good return had more to do with my sale of some of my stock in 2008 at $55.76. I had a low ACB because I bought most of my stock in 1998.

If you had invested in this company in December 2012, for $1,008.00 you would have bought 25 shares at $40.32 per share. In December 2022, after 10 years you would have received $166.00. in dividends. The stock would be worth $596.50. Your total return would have been $762.50.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$40.32	$1,008.00	25	10	$166.00	$596.50	$762.50

The current dividend yield is low with dividend growth non-existent. The current dividend yield is low (below 2%) at just 0.25%. The 5, 20 and historical median dividend yields are also low at 0.29%1.35% and 1.46%. The company started to decrease the dividends in 2019. Now, the current dividend is some 93% below the 2018 dividend. Analysts think that the company might start to raise the dividends again in 2025. However, last year analysts thought the dividends would be raised in 2023 and that has not happened.

The Dividend Payout Ratios (DPR) are fine and expected to improve. The DPR for EPS for 2022 is 89%. I do not have a 5 year coverage because of earnings losses over the past 5 years. The DPR for Adjusted Earnings per Share (AEPS) for 2022 is 13% with 5 year coverage at 67%. The DPR for Cash Flow per Share (CFPS) for 2022 is 15% with 5 year coverage at 61%. The DPR for Free Cash Flow for 2022 cannot be calculated because of negative FCF. I cannot calculate the DPR for 5 year coverage because of negative FCF. However, analysts expect the DPR to improve this year and next.

Debt Ratios need improving, especial the Liquidity Ratio. The Long Term Debt/Market Cap Ratio for 2022 is good and low at 0.36. The Liquidity Ratio is too low at 0.85. It does not improve if you add in Cash Flow after dividends. If you add back the current portion of the long term debt you just get to 0.99. It is best if this ratio is 1.50 or better for safety reasons. If it is below 1.00, it means that current liabilities cannot be covered by current assets. The Debt Ratio is fine at 1.44, but I prefer this to be 1.50 or better. The Leverage and Debt/Equity Ratios are too high at 3.29 and 2.29. I prefer these to be less than 3.00 and 2.00.

The Total Return per year is shown below for years of 5 to 34 to the end of 2022. 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.
2017	5	-40.71%	-15.40%	-16.00%	0.60%
2012	10	-21.32%	-3.16%	-5.11%	1.96%
2007	15	-10.02%	-2.68%	-4.57%	1.89%
2002	20	-2.14%	7.25%	3.78%	3.46%
1997	25	0.73%	12.35%	7.88%	4.47%
1992	30	4.73%	9.85%	6.61%	3.24%
1988	34	4.93%	19.02%	12.46%	6.55%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 8.29, 17.11 and 25.94. The corresponding 10 year ratios are 17.65, 20.25 and 25.55. The corresponding historical ratios are 14.05, 20.50 and 24.93. The current P/E Ratio is 24.96 based a stock price of $31.45 and EPS estimate for 2023 of $1.26. The current P/E 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 and above the median.

I also have Adjusted Earnings per Share Ratios. The 5-year low, median, and high median Price/Earnings per Share Ratios are 24.33, 40.15 and 46.43. The corresponding 10 year ratios are 19.51, 26.99 and 33.87. The current P/AEPS Ratio is 22.46 based on a stock price of $31.45 and a AEPS estimate for 2023 of $1.40. 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 $22.69. The 10-year low, median, and high median Price/Graham Price Ratios are 1.15, 1.70 and 2.11. The current P/GP Ratio is 1.39 based on a stock price of $31.45. 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 1.82. The current P/B Ratio is 1.92 based on a stock price of $31.45, Book Value of $2,870M and Book Value per Share of $16.35. The current ratio is 6% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I also have a Book Value per Share estimate for 2023 of $19.90. This implies a ratio of 1.58 with a stock price of $31.45 and Book Value of $3,494M. This ratio is 13% below the 10 year median ration. 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 24.34. The current P/CF Ratio is 30.24 based on a stock price of $31.45, Cash Flow per Share estimate for 2023 of $1.40 and Cash Flow of $183M. The current ratio is 24% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable expensive.

I get an historical median dividend yield of 1.46%. The current dividend yield is $0.25% based on a stock price of $31.45 and dividends of $0.08. The current dividend yield is 83% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year median dividend yield of 1.35%. The current dividend yield is $0.25% based on a stock price of $31.45 and dividends of $0.08. The current dividend yield is 81% below the 10 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 0.78. The current P/S Ratio is 0.73 based on a stock price of $31.45, Revenue estimate for 2023 of $7,533 and Revenue per Share of $42.91. The current ratio is 6% 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 says this. The dividend yield tests say expensive and this is because of the drop in dividends. Of course, a drop in dividends is a bad sign so there is some logic at looking at these tests. Most of the other tests says the stock is reasonable and either above or below the median.

When I look at analysts’ recommendations, I find Strong Buy (4), Buy (6) and Hold (2). The consensus would be a Buy. The 12 months stock price consensus is $36.67. This implies a total return of $16.85% with 16.60% from capital gains and 0.25% from dividends.

All the analysts’ recommendations in 2023 on Stock Chase say Do not Buy. They are critical of the company and think it is overbought. Stock Chase gives this stock 3 stars out of 5. It is not on the Money Sense list. Last year Andrew Button on Motley Fool say the company was cheap but came with risks. Last year Andrew Button also on Motley Fool says that the company was once plagued by Scandal, but it is doing fine now. The company put out a press release on Newswire about their 2022 results.

Simply Wall Street report on Yahoo Finance says that this company is still selling below its intrinsic value. Simply Wall Street has four warnings on this stock of interest payments are not well covered by earnings; large one-off items impacting financial results; profit margins (0.2%) are lower than last year (1.4%); and significant insider selling over the past 3 months. Simply Wall Street gives this stock 2 and one half stars out of 5.

Based in Montreal, SNC-Lavalin is a fully integrated professional services and project management firm that offers a wide range of services, including financing, consulting, engineering and construction, procurement, and operations and maintenance. The firm serves clients in the infrastructure, nuclear, and engineering design and project management industries. Additionally, the company owns infrastructure projects through its capital segment. Its web site is here SNC-Lavalin Group Inc.

The last stock I wrote about was about was Barclays PLC ADR (LSE-BARC, NYSE-BCS) ... learn more. The next stock I will write about will be Fortis Inc (TSX-FTS, OTC-FRTSF) ... learn more on Wednesday, May 3, 2023 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks May 2023.... learn more on Tuesday, May 2, 2023 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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