This is a stock (TSX-TIH) I own. I bought this stock first in 2007 and some more in 2008. I have made a return on 6.6% per year with probably 2% per year being from dividends. The company has been raising their dividend each year for sometime and there is no reason to suspect that they will not do so this year also. Their Payout Ratios are reasonable.
When I look at the insider trading I find that there has been some $3.6M Insider Selling over the past year, mainly at the end of 2010 and this seems mostly to be selling of stock options. There has been no Insider Buying. Except for the CFO, insiders have more shares than stock options. The CEO owns some 2.4% of this company. Also, an investment firm owns 9.5% of this company. So, most of this information is positive or nothing to be worried about.
When I look at the Price/Earnings Ratios, I find the 5 year median low to be 11.9 and the 5 year median high to be 16. The current P/E Ratio of 16 is therefore on the high side. The P/E ratios for 2010 ranged from 17.8 to 24.6, with a trailing P/E Ratios of from 12.3 to 17. I get a current Graham Price of $26.19 and the current stock price of $30.52 is 16.6% higher. The 10 year median difference between the Graham Price and the stock price is 27.5%. So this stock price by this measure is better than average.
I get a 10 year median Price/Book Value Ratio of 2.45. The current one at 1.95 is only 80% of this P/B Ratio, so this points to a good current stock price. I get a 5 year median dividend yield of 2.1% and a current year of 2.1%, so this shows a very average type price.
When I look at analysts recommendations, I find Strong Buy, Buy and Hold recommendations. There are just as many Strong Buy as Hold recommendations. The consensus recommendation would be a Buy. (See my site for information on analyst ratings.) Buy recommendations come with a 12 month stock price of $35 and those with a Strong Buy recommendation with a 12 month stock price of $40.
A couple of analysts said that this company did very well during the last 3 months to December 2010. One analyst thought that because of the turmoil in the Middle East our oil patch will do very well, with Toromont profiting from increase in business. See an interesting article about Enerflex and Toromont at Buy Sell Adviser. Toromont has decided, again, to spin off Enerflex. See Marketwire.
I am pleased with my investment in this company and will hold on to the share I have, but I will not be buying more as I have enough of this stock.
There are two sections to this company. The Equipment Group is for Caterpillar dealerships. The Compression Group designs, engineers, fabricate and install compression systems for natural gas, fuel gas and carbon dioxide. This last group also has industrial and recreational refrigeration systems. Its web site is here TransCanada. See my spreadsheet at tih.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
Thursday, March 31, 2011
Wednesday, March 30, 2011
Toromont Industries Ltd
This is a stock (TSX-TIH) I own. I bought this stock first in 2007 and some more in 2008. I have made a return on 6.6% per year with probably 2% per year being from dividends. The total return on this stock over the last 5 years has been low at around 5.8% per year. I reason I have done better is that I bought more stock at the low point in 2008. Over the past 10 years, the return has been much better at around 15% per year.
Still dividends are low and portion of the 10 year return attributable to dividends would be around 2% per year. The current dividend run around 2.1/% and the 5 year average is around 2.1%. However, the dividend growth has been good with 5 and 10 year growth rates at 14% per year. The dividend potential after 10 years at 14% growth would be around 7.8%. However, if you shave around 2% per year off this for inflation, the dividend growth potential in 10 years time would be around 6.5%.
For this stock, the 10 year growth rates are much better than the 5 year growth rates. In fact, the last couple of years have not been kind to this stock. For example, the 5 and 10 year growth rates for revenues are 4% per year and 8% per year, respectively. For cash flows and earnings, there is no 5 year growth, but the 10 year growth figures are 9% per year.
The best growth rates are in book value, and for the 5 and 10 year periods, they have grown at 15% per year. The Return on Equity has generally been good with the ROE for 2010 at 8.2% and the 5 year median ROE at 17.6%.
The last thing to talk about is debt ratios. All these ratios are fine. The Liquidity Ratio is for 2010 is 1.83 and it has a 5 year average of 2.08. The Asset/Liability Ratio is 2.14 and it has a 5 year average of 2.11. What you want to see in these ratios are ones at 1.50 or higher. The Leverage Ratio is 1.88 with a 5 year average of 2.13 and the Debt/Equity Ratio is 0.88 with a 5 year average of 1.13. With these two ratios, lower is better.
I have pleased with my investment in this company. Toromont is on the dividend lists that I follow of Dividend Achievers and Dividend Aristocrats (see indices). The dividend increase last year was 6.7%. This is lower than the 5 year average and the increases have been lower over the last couple of years. I think this is sensible so that Payout Ratios remain sustainable.
There are two sections to this company. The Equipment Group is for Caterpillar dealerships. The Compression Group designs, engineers, fabricate and install compression systems for natural gas, fuel gas and carbon dioxide. This last group also has industrial and recreational refrigeration systems. Its web site is here TransCanada. See my spreadsheet at tih.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
Still dividends are low and portion of the 10 year return attributable to dividends would be around 2% per year. The current dividend run around 2.1/% and the 5 year average is around 2.1%. However, the dividend growth has been good with 5 and 10 year growth rates at 14% per year. The dividend potential after 10 years at 14% growth would be around 7.8%. However, if you shave around 2% per year off this for inflation, the dividend growth potential in 10 years time would be around 6.5%.
For this stock, the 10 year growth rates are much better than the 5 year growth rates. In fact, the last couple of years have not been kind to this stock. For example, the 5 and 10 year growth rates for revenues are 4% per year and 8% per year, respectively. For cash flows and earnings, there is no 5 year growth, but the 10 year growth figures are 9% per year.
The best growth rates are in book value, and for the 5 and 10 year periods, they have grown at 15% per year. The Return on Equity has generally been good with the ROE for 2010 at 8.2% and the 5 year median ROE at 17.6%.
The last thing to talk about is debt ratios. All these ratios are fine. The Liquidity Ratio is for 2010 is 1.83 and it has a 5 year average of 2.08. The Asset/Liability Ratio is 2.14 and it has a 5 year average of 2.11. What you want to see in these ratios are ones at 1.50 or higher. The Leverage Ratio is 1.88 with a 5 year average of 2.13 and the Debt/Equity Ratio is 0.88 with a 5 year average of 1.13. With these two ratios, lower is better.
I have pleased with my investment in this company. Toromont is on the dividend lists that I follow of Dividend Achievers and Dividend Aristocrats (see indices). The dividend increase last year was 6.7%. This is lower than the 5 year average and the increases have been lower over the last couple of years. I think this is sensible so that Payout Ratios remain sustainable.
There are two sections to this company. The Equipment Group is for Caterpillar dealerships. The Compression Group designs, engineers, fabricate and install compression systems for natural gas, fuel gas and carbon dioxide. This last group also has industrial and recreational refrigeration systems. Its web site is here TransCanada. See my spreadsheet at tih.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
Tuesday, March 29, 2011
TransCanada Corp 2
I first bought this stock (TSX-TRP) in 2000. I bought more shares of this company in 2006 and my total return to date is 11.5% per year. Approximately 5% of this return would be in dividend income. The growth potential of dividends for this company at a 5% increase would be 7% after 10 years. The current dividend yield is 4.3%.
When I look at Insider Trading, I find net Insider Selling at $25M. Insider buying is so minor that it is not worthwhile to report. All the selling seems to be of stock options. This company’s insiders, except for Directors, have more options than shares. However, this selling is less than .1% of the market value of this stock. This company has just raised their dividend by 5%. It is a cautious move and it still lowers the the expected payout ratios from earnings to 73% from 89% and payout from cash flow to 33% from 36%. It shows the management of this company has faith in the future earnings of this TransCanada.
My spreadsheet gives me an 5 year median low Price/Earnings Ratio of 14 and a 5 year median high P/E of 18. I get a current P/E ratio of 17 based on 2011 expected earnings. For 2011, I get a Graham Price of $35.03 and this is 11% lower than the current stock price of $38.90. Over the past 5 years, the average stock price has been 14% above its applicable Graham Price. (See my site for information on calculating Graham Price.) The P/E Ratio shows a higher than average stock price and the Graham Price comparison show a lower than average stock price.
When I look at the Price/Book Value Ratios, I get a 10 year average of 1.96 and a current one of 1.62. The current P/B Ratio is 83% lower than the 10 year average. This shows a relatively good price. The current yield is 4.3% and the 5 year average is 4%. So this shows a better than average price. All this shows a relatively average price and this is probably the best you can hope when buying a stock.
When I look at analysts recommendations, I find lots of Strong Buy, a few Buy and then fewer Hold recommendations. The consensus recommendations would be a Strong Buy. (See my site for information on analyst ratings.) Analysts saying the stock is a Buy, give a 12 months stock price around $42.25. One analyst recommended buying this company for income and said it was North America’s premier pipeline company.
A number of analysts pointed out that the company has shown very solid results in the 4th quarter for 2010. Another acknowledged that this company has had recent bumpy ride, but feel the company’s future is bright. At Option Matters blogger Richard Croft talks about opportunities for TransCanada. Analysts with Strong Buy recommendations talk about this company being a big blue chip utility and a core holding. An analyst with a Buy recommendation feared there might be some dilution in this stock because of future capital spending. An analyst with a Hold recommendation liked other stocks, like Enbridge (TSX-ENB) and Inter Pipeline (TSX-IPL) better and because he thought TransCanada was expensive at the moment.
TransCanada is a leader in energy infrastructure. Their network of pipeline taps into virtually all major gas supply basins in North America. TransCanada is one of the continent’s largest providers of gas storage and related services. It is a growing independent power producer. Its web site is here TransCanada. See my spreadsheet at trp.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
When I look at Insider Trading, I find net Insider Selling at $25M. Insider buying is so minor that it is not worthwhile to report. All the selling seems to be of stock options. This company’s insiders, except for Directors, have more options than shares. However, this selling is less than .1% of the market value of this stock. This company has just raised their dividend by 5%. It is a cautious move and it still lowers the the expected payout ratios from earnings to 73% from 89% and payout from cash flow to 33% from 36%. It shows the management of this company has faith in the future earnings of this TransCanada.
My spreadsheet gives me an 5 year median low Price/Earnings Ratio of 14 and a 5 year median high P/E of 18. I get a current P/E ratio of 17 based on 2011 expected earnings. For 2011, I get a Graham Price of $35.03 and this is 11% lower than the current stock price of $38.90. Over the past 5 years, the average stock price has been 14% above its applicable Graham Price. (See my site for information on calculating Graham Price.) The P/E Ratio shows a higher than average stock price and the Graham Price comparison show a lower than average stock price.
When I look at the Price/Book Value Ratios, I get a 10 year average of 1.96 and a current one of 1.62. The current P/B Ratio is 83% lower than the 10 year average. This shows a relatively good price. The current yield is 4.3% and the 5 year average is 4%. So this shows a better than average price. All this shows a relatively average price and this is probably the best you can hope when buying a stock.
When I look at analysts recommendations, I find lots of Strong Buy, a few Buy and then fewer Hold recommendations. The consensus recommendations would be a Strong Buy. (See my site for information on analyst ratings.) Analysts saying the stock is a Buy, give a 12 months stock price around $42.25. One analyst recommended buying this company for income and said it was North America’s premier pipeline company.
A number of analysts pointed out that the company has shown very solid results in the 4th quarter for 2010. Another acknowledged that this company has had recent bumpy ride, but feel the company’s future is bright. At Option Matters blogger Richard Croft talks about opportunities for TransCanada. Analysts with Strong Buy recommendations talk about this company being a big blue chip utility and a core holding. An analyst with a Buy recommendation feared there might be some dilution in this stock because of future capital spending. An analyst with a Hold recommendation liked other stocks, like Enbridge (TSX-ENB) and Inter Pipeline (TSX-IPL) better and because he thought TransCanada was expensive at the moment.
TransCanada is a leader in energy infrastructure. Their network of pipeline taps into virtually all major gas supply basins in North America. TransCanada is one of the continent’s largest providers of gas storage and related services. It is a growing independent power producer. Its web site is here TransCanada. See my spreadsheet at trp.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
Monday, March 28, 2011
TransCanada Corp
I first bought this stock (TSX-TRP) in 2000, after they lowered their dividends because of restructuring. They upset a lot of investors and the stock price plummeted. On these shares, I have made a return of 18.6% per year. About 6.4% of that return is dividend income. I bought more shares of this company in 2006 and my total return to date is 11.5% per year. Approximately 5% of this return would be in dividend income.
My total return on the stock I bought in 2006 would be around 7% per year, with approximately 4% of this return in dividend income. As you can see from this, the total return has not been great over the past few years. In fact, Revenue, Earnings and Cash Flow having been declining over the past couple of years (2009 and 2010). However, analysts expect all these items to be much better for the financial year ending in 2011.
Because of the recent declines in revenue, the 5 and 10 year growth figures are poor with revenue per share growth being negative for the last 5 years and at just 3% per year for the last 10 years. The earnings per share have likewise been poor with negative growth for the last 5 years and at just 2% per year for the last 10 year.
The cash flow per share has been better. The 5 year growth is at 5.2% per year. The only reason that the 10 year growth rate is negative is because the cash flow 10 years ago was higher than usual. Without this higher than usual cash flow 10 years ago, the growth would be in the 6% range. The growth in book value is fine with the 5 and 10 year growth at 8% per year.
When looking at debt ratios, I find that the Liquidity Ratio is low, but it has a tendency to be low on this type of company. The Liquidity Ratio for 2010 is 0.57. The Asset/Liability Ratio is much better at 1.62. The Leverage Ratio at 2.79 and the Debt/Equity Ratio of 1.72 are both fine. The Return on Equity for 2010 is ok at 7.3% and the 5 year average is better at 10.5%.
I am happy with my investment in this company. They are on the dividend lists that I follow of Dividend Achievers and Dividend Aristocrats (see indices).
TransCanada is a leader in energy infrastructure. Their network of pipeline taps into virtually all major gas supply basins in North America. TransCanada is one of the continent’s largest providers of gas storage and related services. It is a growing independent power producer. Its web site is here TransCanada. See my spreadsheet at trp.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
My total return on the stock I bought in 2006 would be around 7% per year, with approximately 4% of this return in dividend income. As you can see from this, the total return has not been great over the past few years. In fact, Revenue, Earnings and Cash Flow having been declining over the past couple of years (2009 and 2010). However, analysts expect all these items to be much better for the financial year ending in 2011.
Because of the recent declines in revenue, the 5 and 10 year growth figures are poor with revenue per share growth being negative for the last 5 years and at just 3% per year for the last 10 years. The earnings per share have likewise been poor with negative growth for the last 5 years and at just 2% per year for the last 10 year.
The cash flow per share has been better. The 5 year growth is at 5.2% per year. The only reason that the 10 year growth rate is negative is because the cash flow 10 years ago was higher than usual. Without this higher than usual cash flow 10 years ago, the growth would be in the 6% range. The growth in book value is fine with the 5 and 10 year growth at 8% per year.
When looking at debt ratios, I find that the Liquidity Ratio is low, but it has a tendency to be low on this type of company. The Liquidity Ratio for 2010 is 0.57. The Asset/Liability Ratio is much better at 1.62. The Leverage Ratio at 2.79 and the Debt/Equity Ratio of 1.72 are both fine. The Return on Equity for 2010 is ok at 7.3% and the 5 year average is better at 10.5%.
I am happy with my investment in this company. They are on the dividend lists that I follow of Dividend Achievers and Dividend Aristocrats (see indices).
TransCanada is a leader in energy infrastructure. Their network of pipeline taps into virtually all major gas supply basins in North America. TransCanada is one of the continent’s largest providers of gas storage and related services. It is a growing independent power producer. Its web site is here TransCanada. See my spreadsheet at trp.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
Friday, March 25, 2011
RioCan Real Estate 2
I first bought this stock (TSX-REI.UN) for my RRSP account in January 1998 then I bought some for my Trading account in April 2000 and some more in January 2002. In June 2006, and in December 2010, I bought this stock for the Locked-in Pension account. I have made a total return on this stock of 17.1% per year.
When I look at Insider Trading, I find $10m of Insider Selling and $.5M of Insider Buying for a net Insider Selling of $9.5M. Insider selling seems to be of options and some gifting. Insiders’ own some shares, but have far more options than shares. The number of shares owned by insiders really hasn’t changed at all over the past year. No insider owns a significant number of shares.
The 5 year median low Price/Earnings Ratio is 21.1 and the 5 year median high P/E Ratio is 31.5. The current P/E Ratio of 18.1 is relatively low, but not low on an absolute basis. I get a Graham Price of $15.62. The current stock price of $23.69 is 52% above this. On average, the stock price has been some 40% above the Graham Price. On average, the high stock prices have been some 62% above the Graham Price. So this shows a relatively big difference, but not an extreme one for this stock.
I get a 5 and 10 year average Price/Book Value Ratio of 2.55 and 2.20, respectively. The current P/B Ratio at 2.86 is some 12% higher than the 5 year average and 30% higher than the 10 year average. This is unsurprising, as the Book Value has not grown over the past 5 and 10 years. The current yield is 5.83%. The 5 year average yield is 6.9%. The 5 year average low yield is 5.75%. So this points to a higher than average price, but not quite to a relatively high stock price.
When I look at the Price/Funds from Operation Ratio, I get a current one of 15.59, a 5 year average of 14.20 and a 5 year average high of 16.83. Here again, it shows that the current price is higher than average, but not quite to a relatively high price.
When I looked at analysts recommendations, I find Strong Buy, Buy and Hold. The consensus is probably a Buy. There are, however, lots of Hold recommendations. (See my site for information on analyst ratings.)
It would seem that analysts with a Hold rating feel that this stock is overpriced. A number of analysts, no matter what their recommendations, feel that this company has excellent manager. They also feel that the company will benefit from Target coming to Canada. The advantages to REITs are the high tax efficient yield and the ability of the REITS to grow distributions, at minimum, in line with inflation.
I have done very well in this stock. The stock I bought in 1998 is giving me a current 13% yield on my original money and stock I bought in 2000, some 11 years ago, is giving me a current return on my original investment of 17.2%. This stock has a Beta of .742 (according to the Globe and Mail). This means that the stock is less volatile that the market (TSX). I feel that this stock has given me a nice income over the years and has also given me some portfolio diversification.
I know that this stock had a rough year in 2009, but overall, I am pleased with my investment.
For a blog entry talking about this company and Target see Iewy News. For a blog talking about this stock in connection with technical analysis see Trade Online.ca.
RioCan is Canada's largest real estate investment trust. It owns and manages Canada's largest portfolio of shopping centers. RioCan owns an 80% interest in 31 grocery anchored and new format retail centers in the United States through various joint venture arrangements. In addition, RioCan owns a 14% equity interest in Cedar Shopping Centers, Inc., a real estate investment trust focused on supermarket-anchored shopping centers and drug store-anchored convenience centers located predominantly in the Northeastern United States. This stock is rated STA-2M by DBRS. Its web site is here RioCan. See my spreadsheet at rei.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
When I look at Insider Trading, I find $10m of Insider Selling and $.5M of Insider Buying for a net Insider Selling of $9.5M. Insider selling seems to be of options and some gifting. Insiders’ own some shares, but have far more options than shares. The number of shares owned by insiders really hasn’t changed at all over the past year. No insider owns a significant number of shares.
The 5 year median low Price/Earnings Ratio is 21.1 and the 5 year median high P/E Ratio is 31.5. The current P/E Ratio of 18.1 is relatively low, but not low on an absolute basis. I get a Graham Price of $15.62. The current stock price of $23.69 is 52% above this. On average, the stock price has been some 40% above the Graham Price. On average, the high stock prices have been some 62% above the Graham Price. So this shows a relatively big difference, but not an extreme one for this stock.
I get a 5 and 10 year average Price/Book Value Ratio of 2.55 and 2.20, respectively. The current P/B Ratio at 2.86 is some 12% higher than the 5 year average and 30% higher than the 10 year average. This is unsurprising, as the Book Value has not grown over the past 5 and 10 years. The current yield is 5.83%. The 5 year average yield is 6.9%. The 5 year average low yield is 5.75%. So this points to a higher than average price, but not quite to a relatively high stock price.
When I look at the Price/Funds from Operation Ratio, I get a current one of 15.59, a 5 year average of 14.20 and a 5 year average high of 16.83. Here again, it shows that the current price is higher than average, but not quite to a relatively high price.
When I looked at analysts recommendations, I find Strong Buy, Buy and Hold. The consensus is probably a Buy. There are, however, lots of Hold recommendations. (See my site for information on analyst ratings.)
It would seem that analysts with a Hold rating feel that this stock is overpriced. A number of analysts, no matter what their recommendations, feel that this company has excellent manager. They also feel that the company will benefit from Target coming to Canada. The advantages to REITs are the high tax efficient yield and the ability of the REITS to grow distributions, at minimum, in line with inflation.
I have done very well in this stock. The stock I bought in 1998 is giving me a current 13% yield on my original money and stock I bought in 2000, some 11 years ago, is giving me a current return on my original investment of 17.2%. This stock has a Beta of .742 (according to the Globe and Mail). This means that the stock is less volatile that the market (TSX). I feel that this stock has given me a nice income over the years and has also given me some portfolio diversification.
I know that this stock had a rough year in 2009, but overall, I am pleased with my investment.
For a blog entry talking about this company and Target see Iewy News. For a blog talking about this stock in connection with technical analysis see Trade Online.ca.
RioCan is Canada's largest real estate investment trust. It owns and manages Canada's largest portfolio of shopping centers. RioCan owns an 80% interest in 31 grocery anchored and new format retail centers in the United States through various joint venture arrangements. In addition, RioCan owns a 14% equity interest in Cedar Shopping Centers, Inc., a real estate investment trust focused on supermarket-anchored shopping centers and drug store-anchored convenience centers located predominantly in the Northeastern United States. This stock is rated STA-2M by DBRS. Its web site is here RioCan. See my spreadsheet at rei.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
Thursday, March 24, 2011
RioCan Real Estate
I first bought this stock (TSX-REI.UN) for my RRSP account in January 1998 then I bought some for my Trading account in April 2000 and some more in January 2002. In June 2006, and in December 2010, I bought this stock for the Locked-in Pension account. I have made a total return on this stock of 17.1% per year. Probably 7 to 8% of my total return is in distributions.
A potential problem with this stock in my Trading Account is that part of the yearly distributions is considered return of capital. This return of capital is subtracted from your Adjusted Cost Basis (ACB) each year. Once your ACB is at zero, you have to include any further return of capital in your capital gain calculations. The result is that you would have to pay capital gain tax on return of capital distributions when your ACB gets to zero. Currently, on any return of capital distribution, I pay no tax at all. I do not really feel this is a problem, so I will continue to hold some of this stock in my Trading Account.
RioCan says its purpose is to deliver to its unitholders stable and reliable cash distributions that will increase over the long term. They had been criticized for keeping their payout ratios high. Their 5 year average payout ratio against Funds from Operations (FFO) is 96% compared to CDN REIT’s (REF.UN) 61%. However, this payout ratio has been declining, as they have not raised their distributions since the last part of 2008. The FFO Payout Ratio is expected to be 91% in 2011 and 87% in 2012 if there is no change in distributions.
The 5 year growth in distributions is at 1.6% compared to 5 year growth in inflation of 1.8%. The 10 year growth in distributions is better at 2.6% compared to 10 year growth in inflation of 2%. Their last increase in distributions in 2008 was at 2.2%. Most of their increases just prior to 2008 were around this value. Total Return is better for the last 10 years than for the last 5.
Total Return has grown, over the past 5 and 10 years at the rate of 6% and 18.5% per year, respectively. The problem is that the stock price has really not changed over the past 5 years and the total return is all distributions.
For this company, 10 year growth is generally better than the 5 year growth. There is one exception and that is for earnings. The 5 and 10 year earnings growth for this company is at 12.4% per year and 2.8% per year, respectively. The book value has not grown at all over the past 5 and 10 years.
Revenue per share and cash flow per share have not grown much. Revenue per share has grown over the past 5 and 10 years at the rate of 1.9% and 4.9% per year, respectively. Cash Flow from Operations per share has grown at the 1.2% and 4.1% per year, respectively.
Debt Ratios are ok on this stock. The Liquidity Ratio is at 1.65 with a 5 year average of 2.30. The Asset/Liability Ratio is 1.47, with a 5 year average of 1.49. For both this ratios, you would want them at 1.50 or better. The Leverage Ratio is 3.19 (which is a little high), with a better 10 year average of 2.72. The problem is that this ratio has been increasing lately. The Debt/Equity Ratio is better at 2.17, with a 10 year average of 1.72. It has also been increasing. The problem is the lack of growth in book value.
The financial year ending in December 2010 was a good one for this stock. Return on Equity was good for 2010 at 14.1%. This is better than the 5 year average of 9.9%. Revenue per share grew at the rate of 9%; earnings grew 149%; and cash flow by 26%. Book Value in 2010 grew at the rate of 8% after a number of years of negative growth.
I plan to hold onto the shares I own in this company. I will probably not buy anymore as I have enough.
RioCan is Canada's largest real estate investment trust. It owns and manages Canada's largest portfolio of shopping centers. RioCan owns an 80% interest in 31 grocery anchored and new format retail centers in the United States through various joint venture arrangements. In addition, RioCan owns a 14% equity interest in Cedar Shopping Centers, Inc., a real estate investment trust focused on supermarket-anchored shopping centers and drug store-anchored convenience centers located predominantly in the Northeastern United States. This stock is rated STA-2M by DBRS. Its web site is here RioCan. See my spreadsheet at rei.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
A potential problem with this stock in my Trading Account is that part of the yearly distributions is considered return of capital. This return of capital is subtracted from your Adjusted Cost Basis (ACB) each year. Once your ACB is at zero, you have to include any further return of capital in your capital gain calculations. The result is that you would have to pay capital gain tax on return of capital distributions when your ACB gets to zero. Currently, on any return of capital distribution, I pay no tax at all. I do not really feel this is a problem, so I will continue to hold some of this stock in my Trading Account.
RioCan says its purpose is to deliver to its unitholders stable and reliable cash distributions that will increase over the long term. They had been criticized for keeping their payout ratios high. Their 5 year average payout ratio against Funds from Operations (FFO) is 96% compared to CDN REIT’s (REF.UN) 61%. However, this payout ratio has been declining, as they have not raised their distributions since the last part of 2008. The FFO Payout Ratio is expected to be 91% in 2011 and 87% in 2012 if there is no change in distributions.
The 5 year growth in distributions is at 1.6% compared to 5 year growth in inflation of 1.8%. The 10 year growth in distributions is better at 2.6% compared to 10 year growth in inflation of 2%. Their last increase in distributions in 2008 was at 2.2%. Most of their increases just prior to 2008 were around this value. Total Return is better for the last 10 years than for the last 5.
Total Return has grown, over the past 5 and 10 years at the rate of 6% and 18.5% per year, respectively. The problem is that the stock price has really not changed over the past 5 years and the total return is all distributions.
For this company, 10 year growth is generally better than the 5 year growth. There is one exception and that is for earnings. The 5 and 10 year earnings growth for this company is at 12.4% per year and 2.8% per year, respectively. The book value has not grown at all over the past 5 and 10 years.
Revenue per share and cash flow per share have not grown much. Revenue per share has grown over the past 5 and 10 years at the rate of 1.9% and 4.9% per year, respectively. Cash Flow from Operations per share has grown at the 1.2% and 4.1% per year, respectively.
Debt Ratios are ok on this stock. The Liquidity Ratio is at 1.65 with a 5 year average of 2.30. The Asset/Liability Ratio is 1.47, with a 5 year average of 1.49. For both this ratios, you would want them at 1.50 or better. The Leverage Ratio is 3.19 (which is a little high), with a better 10 year average of 2.72. The problem is that this ratio has been increasing lately. The Debt/Equity Ratio is better at 2.17, with a 10 year average of 1.72. It has also been increasing. The problem is the lack of growth in book value.
The financial year ending in December 2010 was a good one for this stock. Return on Equity was good for 2010 at 14.1%. This is better than the 5 year average of 9.9%. Revenue per share grew at the rate of 9%; earnings grew 149%; and cash flow by 26%. Book Value in 2010 grew at the rate of 8% after a number of years of negative growth.
I plan to hold onto the shares I own in this company. I will probably not buy anymore as I have enough.
RioCan is Canada's largest real estate investment trust. It owns and manages Canada's largest portfolio of shopping centers. RioCan owns an 80% interest in 31 grocery anchored and new format retail centers in the United States through various joint venture arrangements. In addition, RioCan owns a 14% equity interest in Cedar Shopping Centers, Inc., a real estate investment trust focused on supermarket-anchored shopping centers and drug store-anchored convenience centers located predominantly in the Northeastern United States. This stock is rated STA-2M by DBRS. Its web site is here RioCan. See my spreadsheet at rei.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
Wednesday, March 23, 2011
Canadian Real Estate Investment Trust 2
I bought this stock (TSX-REF.UN) in September 2006. I have made a total return of 10.1% per year on this stock. I estimate that the dividend portion of my total yearly return would be between 5% and 5.5%. I feel that this stock has been a decent investment for me and has provided me with some good income and a good rate of return.
When I look at the Insider Trading report, I find that there has been a bit of Insider Selling and a bit of Insider Buying. There is a net to insider selling. All the buying seems to be by the directors under the company’s stock buying plan. All the selling was by the CFO. This company has recently raised their income by 2.2%, which for this company is a good increase. The other thing to note is that insiders do own shares, but no one has any stock options.
I get a 5 year median low Price/Earnings Ratio of 17.7 and a 5 year median high P/E Ratio of 24.6. I get a current P/E of 26.7. This is because analysts that are quoting next year’s earnings think that it will be significantly lower than for 2010. The P/E based on last year earnings is just 13. However, the Price/Cash Flow Ratio average is 13 and the current P/CF is 14. These ratios are much closer. Looking at Price/Funds from Operations Ratio, I get a current one of 13.7 and with a 5 year average high of 14.5 and a 5 year average low of 10.5. These other ratios do not look as bad as the current P/E ratio does.
Since the Graham Price is based on estimated earnings for 2011, it is way below the current stock price of $32.28 by 74%, as it is only $18.59. The 10 year average Price/Book Value Ratio is 2.04 and the 5 year P/B Ratio is 2.54. The current P/B Ratio of 2.54 is the same as the 5 year average, but below the 10 year average by 25%. Because this is an Income Trust, Book Values grow slowly.
When looking at the yield, the current one of 4.4% is below the 5 year average of 5%. Please note that some people think that the only stock price comparison you should use is the yield. By this measure, the stock price is a bit high. Also, note that the 10 year average high yield is 6% and the 5 year average low yield is 4.2%.
I did not look at the debt ratios yesterday and I will cover this today. The debt ratios are all fine. The Liquidity Ratio tends to bob around quite a bit, but all values are rather small. The Asset/Debt ratios are good with a current one of 1.65 and a 5 year average of 1.52. The Leverage Ratio is 2.56 and the Debt/Equity Ratio is 1.55. Both these are fine.
When I look at analysts recommendations, I find Strong Buy, Buy and Hold recommendations. There are lots of Strong Buys and Holds. The consensus is probably a Buy. (See my site for information on analyst ratings.) The 12 month target for Hold is $34 and the 12 month target for a buy is $35.75. Analysts talk about this company having good occupancy rates.
One analyst says that this company has good properties and it is well managed. Another analyst mentions its low payout ratio compared to cash flow. This Payout Ratio is currently at 61% and the 5 year average is just 68%. It also has a low Payout Ratio compared to the FFO and this is running at around 61%. One analyst is rating this a Hold because he thinks it is a little pricey at the moment.
As I said yesterday, I have been pleased with my investment in this company and I will continue to hold the shares that I own.
I have one final remark. I know that the past couple of weeks have been part exciting and part harrowing, what with the problems in Libya (and the rest of the Middle East) and Japan. I have been though such weeks before and I am not worried about my investments because in the long term they will be just fine. I certainly hope that the people of the Middle East will be able to get the sort of governments they desire. I also pray for all those in Japan and I hope their problems are over soon.
Canadian Real Estate Investment Trust is an equity real estate trust, which acquires and owns a portfolio of income-producing properties. It specializes in the acquisition and ownership of community shopping centers, industrial and office properties across Canada. This company owns office, industrial, retail properties and some miscellaneous items such as apartment buildings. This stock is rated STA-3M by DBRS. Its web site is here CDN Real Estate. See my spreadsheet at ref.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
When I look at the Insider Trading report, I find that there has been a bit of Insider Selling and a bit of Insider Buying. There is a net to insider selling. All the buying seems to be by the directors under the company’s stock buying plan. All the selling was by the CFO. This company has recently raised their income by 2.2%, which for this company is a good increase. The other thing to note is that insiders do own shares, but no one has any stock options.
I get a 5 year median low Price/Earnings Ratio of 17.7 and a 5 year median high P/E Ratio of 24.6. I get a current P/E of 26.7. This is because analysts that are quoting next year’s earnings think that it will be significantly lower than for 2010. The P/E based on last year earnings is just 13. However, the Price/Cash Flow Ratio average is 13 and the current P/CF is 14. These ratios are much closer. Looking at Price/Funds from Operations Ratio, I get a current one of 13.7 and with a 5 year average high of 14.5 and a 5 year average low of 10.5. These other ratios do not look as bad as the current P/E ratio does.
Since the Graham Price is based on estimated earnings for 2011, it is way below the current stock price of $32.28 by 74%, as it is only $18.59. The 10 year average Price/Book Value Ratio is 2.04 and the 5 year P/B Ratio is 2.54. The current P/B Ratio of 2.54 is the same as the 5 year average, but below the 10 year average by 25%. Because this is an Income Trust, Book Values grow slowly.
When looking at the yield, the current one of 4.4% is below the 5 year average of 5%. Please note that some people think that the only stock price comparison you should use is the yield. By this measure, the stock price is a bit high. Also, note that the 10 year average high yield is 6% and the 5 year average low yield is 4.2%.
I did not look at the debt ratios yesterday and I will cover this today. The debt ratios are all fine. The Liquidity Ratio tends to bob around quite a bit, but all values are rather small. The Asset/Debt ratios are good with a current one of 1.65 and a 5 year average of 1.52. The Leverage Ratio is 2.56 and the Debt/Equity Ratio is 1.55. Both these are fine.
When I look at analysts recommendations, I find Strong Buy, Buy and Hold recommendations. There are lots of Strong Buys and Holds. The consensus is probably a Buy. (See my site for information on analyst ratings.) The 12 month target for Hold is $34 and the 12 month target for a buy is $35.75. Analysts talk about this company having good occupancy rates.
One analyst says that this company has good properties and it is well managed. Another analyst mentions its low payout ratio compared to cash flow. This Payout Ratio is currently at 61% and the 5 year average is just 68%. It also has a low Payout Ratio compared to the FFO and this is running at around 61%. One analyst is rating this a Hold because he thinks it is a little pricey at the moment.
As I said yesterday, I have been pleased with my investment in this company and I will continue to hold the shares that I own.
I have one final remark. I know that the past couple of weeks have been part exciting and part harrowing, what with the problems in Libya (and the rest of the Middle East) and Japan. I have been though such weeks before and I am not worried about my investments because in the long term they will be just fine. I certainly hope that the people of the Middle East will be able to get the sort of governments they desire. I also pray for all those in Japan and I hope their problems are over soon.
Canadian Real Estate Investment Trust is an equity real estate trust, which acquires and owns a portfolio of income-producing properties. It specializes in the acquisition and ownership of community shopping centers, industrial and office properties across Canada. This company owns office, industrial, retail properties and some miscellaneous items such as apartment buildings. This stock is rated STA-3M by DBRS. Its web site is here CDN Real Estate. See my spreadsheet at ref.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
Tuesday, March 22, 2011
Canadian Real Estate Investment Trust
I bought this stock (TSX-REF.UN) in September 2006. I have made a total return of 10.1% per year on this stock. I estimate that the dividend portion of my total yearly return would be between 5% and 5.5%. This company is on one of the dividend lists that I follow of Dividend Achievers .
They have raised their dividend each year since 2002. The growth in distributions for the last 5 and 10 years is 1.90% and 1.77% each year, respectively. According to the Bank of Canada, core inflation has grown over the last 5 and 10 years at the rate of 1.78% and 1.87% per year, respectively. Also, Total Inflation has grown over the last 5 and 10 years at the rate of 1.78% and 1.97% per year, respectively. So from this you can see that distributions have done slightly better than inflation over the past 5 years and slightly worse than inflation over the past 10 years.
The current distribution yield is 4.4% and the 5 year average is 5%. This is a Real Estate Investment Trust type of company and what you can expect from it is a good yield, but your increases will be about the rate of inflation. In my portfolio, I have this type of stock, plus stock with lower yields, but higher rates of increases. Overall, my growth in dividends is above the rate of inflation, or even background inflation. Note that long term background inflation is considered to be at the rate of 3% per year.
When you look at growth figures for this company, the worse is for Book Value. Over the past 5 and 10 years, the book value has grown at the rate of 3.7% and 2% per year, respectively. This is rather typical for an Income Trust company. Do not forget that in the calculation of Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO), the replacements for the older Distributable Income, you include depreciation and amortization expenses.
The amount available for distribution has grown over the past 5 and 10 years at the rate of 10.4% and 6.8% per year, respectively. However, the way to calculate this value has been changing. Earnings have been growing well, with the growth over the past 5 and 10 years at 19% and 7.6% per year, respectively. Total Return has grown over the past 5 and 10 years at the rate of 12% and 18.5% per year, respectively.
Revenue growth per share is rather low having only grown, over the past 5 and 10 years at the rate of 3% and 3.8% per year, respectively. Cash Flow from Operations is better over the past 5 and 10 years, growing at the rate of 10% and 9.6% per year, respectively.
Overall, I am pleased with my investment in this company. Tomorrow, I will talk about what the analysts say about this company and what my spreadsheet says about its current stock price.
Canadian Real Estate Investment Trust is an equity real estate trust, which acquires and owns a portfolio of income-producing properties. It specializes in the acquisition and ownership of community shopping centers, industrial and office properties across Canada. This company owns office, industrial, retail properties and some miscellaneous items such as apartment buildings. This stock is rated STA-3M by DBRS. Its web site is here CDN Real Estate . See my spreadsheet at ref.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
They have raised their dividend each year since 2002. The growth in distributions for the last 5 and 10 years is 1.90% and 1.77% each year, respectively. According to the Bank of Canada, core inflation has grown over the last 5 and 10 years at the rate of 1.78% and 1.87% per year, respectively. Also, Total Inflation has grown over the last 5 and 10 years at the rate of 1.78% and 1.97% per year, respectively. So from this you can see that distributions have done slightly better than inflation over the past 5 years and slightly worse than inflation over the past 10 years.
The current distribution yield is 4.4% and the 5 year average is 5%. This is a Real Estate Investment Trust type of company and what you can expect from it is a good yield, but your increases will be about the rate of inflation. In my portfolio, I have this type of stock, plus stock with lower yields, but higher rates of increases. Overall, my growth in dividends is above the rate of inflation, or even background inflation. Note that long term background inflation is considered to be at the rate of 3% per year.
When you look at growth figures for this company, the worse is for Book Value. Over the past 5 and 10 years, the book value has grown at the rate of 3.7% and 2% per year, respectively. This is rather typical for an Income Trust company. Do not forget that in the calculation of Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO), the replacements for the older Distributable Income, you include depreciation and amortization expenses.
The amount available for distribution has grown over the past 5 and 10 years at the rate of 10.4% and 6.8% per year, respectively. However, the way to calculate this value has been changing. Earnings have been growing well, with the growth over the past 5 and 10 years at 19% and 7.6% per year, respectively. Total Return has grown over the past 5 and 10 years at the rate of 12% and 18.5% per year, respectively.
Revenue growth per share is rather low having only grown, over the past 5 and 10 years at the rate of 3% and 3.8% per year, respectively. Cash Flow from Operations is better over the past 5 and 10 years, growing at the rate of 10% and 9.6% per year, respectively.
Overall, I am pleased with my investment in this company. Tomorrow, I will talk about what the analysts say about this company and what my spreadsheet says about its current stock price.
Canadian Real Estate Investment Trust is an equity real estate trust, which acquires and owns a portfolio of income-producing properties. It specializes in the acquisition and ownership of community shopping centers, industrial and office properties across Canada. This company owns office, industrial, retail properties and some miscellaneous items such as apartment buildings. This stock is rated STA-3M by DBRS. Its web site is here CDN Real Estate . See my spreadsheet at ref.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
Monday, March 21, 2011
Canadian Pacific Railway 3
I bought this stock (TSX-CP) in October 2006. I have made a total return on this stock of 5.8%. Just over 2% of the total annual return would be due to dividends. This stock is on the dividend lists that I follow of Dividend Achievers and Dividend Aristocrats (see indices).
In looking at the Insider Trading Report, there is minimal insider buying and insider selling. All insiders, including directors have more stock options than shares. Dividends were raised in 2010, so this shows that the management has confidence in the ability of the company to earn a profit in the next while.
I get a 5 year low median Price/Earnings Ratio of 9.9 and a 5 year high median P/E Ratio of 15.8. My current P/E Ratio of 14.1 is closer to the high rather than the low P/E Ratio. I get a current Graham Price of $53.55. The current stock price of $63.03 is some 17.7% higher. The average high 10 year difference between the Graham Price and the stock price is 14%. So this shows a rather high current stock price.
I get a 10 year average Price/Book Value Ratio of 1.71. The current P/B Ratio is 2.21, which is some 30% higher. So this also points to a rather high stock price. The only measure to show a reasonable stock price is the yield. The current yield is 1.71% and the 5 year average is 1.67%. These yields are very close.
When I look at analysts’ recommendations, I find Strong Buy, Buy, Hold and Sell. There is only one Sell recommendation, but there are lots of Hold recommendations. The consensus recommendation would be a Buy. This is common when you get both Strong Buy and Hold recommendations on a stock. (See my site for information on analyst ratings.)
One analyst thought that for the financial year ending in December 2010, CP delivered a solid performance, with revenue increasing across all lines of business. Another analyst thinks that exports are increasing in Canada due to Asian appetite for our resources. He feels that both CPR and CNR will benefit from this. One analyst states that CPR will benefit from increased fertilizer sales because one of the things CPR ships is fertilizer. Another feels that CPR is reducing its costs and that therefore there will be more upside in stock. I do not know why there is one sell recommendation.
Here is one bloggers analysis of this stock which recommends a Hold at Stock Pick Bloggers. Also, here is a slightly older report recommending a Hold from Daily Markets.
This company is a transcontinental railway operating in Canada and the U.S. Its rail network serves the principal centers of Canada, from Montreal to Vancouver and the U.S. Northeast and Midwest regions. Alliances with other carriers extend its market reach throughout the U.S. and into Mexico. Canadian Pacific Solutions provides logistics and supply chain expertise. Its web site is here CPR. See my spreadsheet at cp.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
In looking at the Insider Trading Report, there is minimal insider buying and insider selling. All insiders, including directors have more stock options than shares. Dividends were raised in 2010, so this shows that the management has confidence in the ability of the company to earn a profit in the next while.
I get a 5 year low median Price/Earnings Ratio of 9.9 and a 5 year high median P/E Ratio of 15.8. My current P/E Ratio of 14.1 is closer to the high rather than the low P/E Ratio. I get a current Graham Price of $53.55. The current stock price of $63.03 is some 17.7% higher. The average high 10 year difference between the Graham Price and the stock price is 14%. So this shows a rather high current stock price.
I get a 10 year average Price/Book Value Ratio of 1.71. The current P/B Ratio is 2.21, which is some 30% higher. So this also points to a rather high stock price. The only measure to show a reasonable stock price is the yield. The current yield is 1.71% and the 5 year average is 1.67%. These yields are very close.
When I look at analysts’ recommendations, I find Strong Buy, Buy, Hold and Sell. There is only one Sell recommendation, but there are lots of Hold recommendations. The consensus recommendation would be a Buy. This is common when you get both Strong Buy and Hold recommendations on a stock. (See my site for information on analyst ratings.)
One analyst thought that for the financial year ending in December 2010, CP delivered a solid performance, with revenue increasing across all lines of business. Another analyst thinks that exports are increasing in Canada due to Asian appetite for our resources. He feels that both CPR and CNR will benefit from this. One analyst states that CPR will benefit from increased fertilizer sales because one of the things CPR ships is fertilizer. Another feels that CPR is reducing its costs and that therefore there will be more upside in stock. I do not know why there is one sell recommendation.
Here is one bloggers analysis of this stock which recommends a Hold at Stock Pick Bloggers. Also, here is a slightly older report recommending a Hold from Daily Markets.
This company is a transcontinental railway operating in Canada and the U.S. Its rail network serves the principal centers of Canada, from Montreal to Vancouver and the U.S. Northeast and Midwest regions. Alliances with other carriers extend its market reach throughout the U.S. and into Mexico. Canadian Pacific Solutions provides logistics and supply chain expertise. Its web site is here CPR. See my spreadsheet at cp.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
Friday, March 18, 2011
Canadian Pacific Railway 2
I bought this stock (TSX-CP) in October 2006. I had wanted some more railway stock and I thought that Canadian National Railway (TSX-CN) was too pricey. I have made a total return on this stock of 5.8%. If I had bought some more CNR, I would have had a total return of 13% in this same time period. It was probably not my best decision to buy CP. I had owned CP previously between 1987 and 1999 and my total return on the stock in this period was 5.4%.
The dividend growth has been ok over the past 5 years at 12% per year. I do not have a growth figure for 10 years, as this stock was a spin off from Canadian Pacific Limited in 2001. However, 8 year growth of dividends is a respectable 9.3%. Total return on this stock has been around 17% and 13% per year over the past 5 and 10 years. About 2% of this total return is due to dividends.
Where growth has not been good is for revenues, earnings, cash flow and book value. The earnings growth has probably been the best, where the 5 and 10 year growth figures are 2.6% and 9.7% per year, respectively. Because we are coming out a recession a lot of companies do not have good growth over the past 5 years, but you would hope that the 10 year growth is decent.
Revenue growth per share over the past 5 and 10 years is 1.5% and 2.5% per year, respectively. No matter how you look at cash flow growth, it is negative. It is negative for 5 and 10 year periods and for cash flow excluding changes in working capital. For book value, there is no growth over the past 5 years and the growth for the 10 year period is just 2.6% per year. I also dealt with changes in account for book value in my post of yesterday.
The Return on Equity has been good for this stock. The ROE for the financial year ending in December 2010 was 11.8%. The 5 year average ROE is 12.8%. However, the Accrual Ratios is a bit high at 5.7%. The problem is that the Net Income is higher than the Cash Flow from Operations. What you want to see is the Cash Flow from Operations higher than the Net Income.
The last thing to talk about is debt ratios. The Liquidity Ratio is 0.93. Part of the reason is the inclusion of the current portion of long term debt. Without this inclusion, the Liquidity Ratio is still a bit low at 1.19. The company has a history of low Liquidity Ratios. The Leverage Ratio is 2.83 and the Debt/Equity Ratio at 1.83 are both fine.
On Monday, I will talk about what my spreadsheet says about the current price and what the analysts say about this stock.
This company is a transcontinental railway operating in Canada and the U.S. Its rail network serves the principal centers of Canada, from Montreal to Vancouver and the U.S. Northeast and Midwest regions. Alliances with other carriers extend its market reach throughout the U.S. and into Mexico. Canadian Pacific Solutions provides logistics and supply chain expertise. Its web site is here CPR. See my spreadsheet at cp.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
The dividend growth has been ok over the past 5 years at 12% per year. I do not have a growth figure for 10 years, as this stock was a spin off from Canadian Pacific Limited in 2001. However, 8 year growth of dividends is a respectable 9.3%. Total return on this stock has been around 17% and 13% per year over the past 5 and 10 years. About 2% of this total return is due to dividends.
Where growth has not been good is for revenues, earnings, cash flow and book value. The earnings growth has probably been the best, where the 5 and 10 year growth figures are 2.6% and 9.7% per year, respectively. Because we are coming out a recession a lot of companies do not have good growth over the past 5 years, but you would hope that the 10 year growth is decent.
Revenue growth per share over the past 5 and 10 years is 1.5% and 2.5% per year, respectively. No matter how you look at cash flow growth, it is negative. It is negative for 5 and 10 year periods and for cash flow excluding changes in working capital. For book value, there is no growth over the past 5 years and the growth for the 10 year period is just 2.6% per year. I also dealt with changes in account for book value in my post of yesterday.
The Return on Equity has been good for this stock. The ROE for the financial year ending in December 2010 was 11.8%. The 5 year average ROE is 12.8%. However, the Accrual Ratios is a bit high at 5.7%. The problem is that the Net Income is higher than the Cash Flow from Operations. What you want to see is the Cash Flow from Operations higher than the Net Income.
The last thing to talk about is debt ratios. The Liquidity Ratio is 0.93. Part of the reason is the inclusion of the current portion of long term debt. Without this inclusion, the Liquidity Ratio is still a bit low at 1.19. The company has a history of low Liquidity Ratios. The Leverage Ratio is 2.83 and the Debt/Equity Ratio at 1.83 are both fine.
On Monday, I will talk about what my spreadsheet says about the current price and what the analysts say about this stock.
This company is a transcontinental railway operating in Canada and the U.S. Its rail network serves the principal centers of Canada, from Montreal to Vancouver and the U.S. Northeast and Midwest regions. Alliances with other carriers extend its market reach throughout the U.S. and into Mexico. Canadian Pacific Solutions provides logistics and supply chain expertise. Its web site is here CPR. See my spreadsheet at cp.htm.
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. See my website for stocks followed and investment notes. Follow me on twitter.
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