I bought this bank (NYSE-BCS) in April 2000. It was doing quite well earning a total return of 15% per year in US$ until it started to fall apart at the end of 2007. They cut out the dividend in the first part of 2009 and restore a much smaller dividend at the very end of that year. To date, I have earned a total return of 3.5% on this stock in US$.
I must admit that I have a much harder time finding information on US and other foreign stock than for Canadian stock. Maybe this is because I follow so few non-Canadian stocks. However, a number of sites say that there have been no insider transactions over the past 6 months. Also, apparently insiders own some 10.5% of the outstanding shares.
When I look at 5 year median Price/Earnings Ratios, I get one of 7.53 for the 5 year low and one of 11.68 for the 5 year high. The current one of 9.03 would be close to the 5 year median average of 9.61. I get a Graham Price of $35.66US for 2011 and the current stock price of $19.68US is some 44% lower. Even though the difference between the Graham Price and low Stock price has been 27% on average over the past 10 years, the difference between these two values has recently been higher.
I get a 10 year median Price/Book Value Ratio 1.90 and a current one of 0.63. The current one of 0.63 is some 38% lower than the 10 year median and this show a good current stock price. However, note that the 5 year average P/B Ratio is just 0.67 because this ratio has been low lately.
The current yield on this stock is 3.3%. This stock has a 5 year median yield 4 %. Considering that the dividends were decreased by some 97% in 2009, this is probably not a bad yield for this stock. The dividends, of course, have been increasing lately by substantial amounts.
When I look at analysts recommendations, what I find are some Strong Buy and Hold recommendations. (See my site for information on analyst ratings.) The consensus recommendations would be a Buy. There seems to be a divergence of opinion. Analysts giving Hold recommendations give a 12 month stock price of $22US and those with Strong Buy give a 12 month stock price of $32.32US. I have also noticed that EPS estimates have recently come down for 2011; but they have gone up for 2012.
I found one site talking about Barclays Bank at Financial 8. Also,
Vivalabolsa says Barclays has upside potential to $32.32 over 12 months. See page bottom for remarks on this bank and other banks.
For the present, I will be keeping this stock. However, I am keeping an eye on it.
This is a bank. Barclays is a global financial services provider, engaged in retail and commercial banking, credit cards, investment banking, wealth management and investment management services all over the world. Its web site is here Barclays. See my spreadsheet at bcs.htm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on twitter.
Friday, April 29, 2011
Thursday, April 28, 2011
Barclays Bank PLC ADR
I bought this bank (NYSE-BCS) in April 2000. It was doing quite well earning a total return of 15% per year in US$ until it started to fall apart at the end of 2007. They cut out the dividend in the first part of 2009 and restore a much smaller dividend at the very end of that year. To date, I have earned a total return of 3.5% on this stock in US$.
I have this stock in a US$ account and I only take out money from this account when the US$ to CDN$ is favorable to me. Needless to say, I have not done this lately, as our currency is rather high against the US currency. I have this stock in a US$ account to moderate my currency risk.
When it got into trouble, I paid a lot of attention. I believe that you get out of a stock if it will not survive or that the company is so damaged it can only limp on. However, I kept this because I knew it would survive and come back again. It has been coming back. However, their survival came at a cost. There was a large dilution of the shares of this bank (a 73% increases in shares.)
Also, I know it did not accept government money because it did not want to be told what to do by bureaucrats. One cannot assume that bureaucrats will make better decisions than the company’s officers will. In fact, bureaucrats generally make worse decisions as far as I can see. Government run industries have an awful track record.
I know the reason that the papers gave of management not wanting to give up their peaks and this is why they did not take government money. But the press has a very negative view of business and this would be a typical press remark. And, was the latest crisis the fault of the bankers or us? It was us who could not stop taking out loans (credit or house) which we could never pay back.
If you are investing for the long term, then you are going to have investments where the company gets into trouble at some point. I had a number of companies decrease dividends in 2009. This happens in a recession and/or bear market.
Now, I shall go back to talking about Barclays Bank. According to my spreadsheet, if you had held this stock over the last 5 years you would have lost a lot at a rate of 11.5% per year. If you had this bank for 10 years, you probably would have lost ½ your capital, however, if you include dividend payments, your loss would probably be around 11% or 12%.
It is not all bad news. Revenue for this bank has increased by about 5% per share per year over the past 10 years. Although Book Value per share has decreased since 2008, it is up by 9% per year over the past 5 years and up 6.7% per year over the past 10 years.
Also, even though Barclays’ cash flow and earnings are down significantly, they have not suffered a loss in either over the past few years. The Return on Equity for the end of 2010 was 8.9%.
Currently, I plan to hold on to my Barclay shares.
This is a bank. Barclays is a global financial services provider, engaged in retail and commercial banking, credit cards, investment banking, wealth management and investment management services all over the world. Its web site is here Barclays. See my spreadsheet at bcs.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.
I have this stock in a US$ account and I only take out money from this account when the US$ to CDN$ is favorable to me. Needless to say, I have not done this lately, as our currency is rather high against the US currency. I have this stock in a US$ account to moderate my currency risk.
When it got into trouble, I paid a lot of attention. I believe that you get out of a stock if it will not survive or that the company is so damaged it can only limp on. However, I kept this because I knew it would survive and come back again. It has been coming back. However, their survival came at a cost. There was a large dilution of the shares of this bank (a 73% increases in shares.)
Also, I know it did not accept government money because it did not want to be told what to do by bureaucrats. One cannot assume that bureaucrats will make better decisions than the company’s officers will. In fact, bureaucrats generally make worse decisions as far as I can see. Government run industries have an awful track record.
I know the reason that the papers gave of management not wanting to give up their peaks and this is why they did not take government money. But the press has a very negative view of business and this would be a typical press remark. And, was the latest crisis the fault of the bankers or us? It was us who could not stop taking out loans (credit or house) which we could never pay back.
If you are investing for the long term, then you are going to have investments where the company gets into trouble at some point. I had a number of companies decrease dividends in 2009. This happens in a recession and/or bear market.
Now, I shall go back to talking about Barclays Bank. According to my spreadsheet, if you had held this stock over the last 5 years you would have lost a lot at a rate of 11.5% per year. If you had this bank for 10 years, you probably would have lost ½ your capital, however, if you include dividend payments, your loss would probably be around 11% or 12%.
It is not all bad news. Revenue for this bank has increased by about 5% per share per year over the past 10 years. Although Book Value per share has decreased since 2008, it is up by 9% per year over the past 5 years and up 6.7% per year over the past 10 years.
Also, even though Barclays’ cash flow and earnings are down significantly, they have not suffered a loss in either over the past few years. The Return on Equity for the end of 2010 was 8.9%.
Currently, I plan to hold on to my Barclay shares.
This is a bank. Barclays is a global financial services provider, engaged in retail and commercial banking, credit cards, investment banking, wealth management and investment management services all over the world. Its web site is here Barclays. See my spreadsheet at bcs.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, April 27, 2011
Melcor Developments Inc 2
I first bought this stock (TSX-MRD) in July 2008 and some more in August 2008 and April 2009 and July 2009. I have made a total return on this stock of 16%. The return occurred mainly because I got this stock very cheap in 2009. Probably just over 2% of my return is in dividends. I originally bought this stock as it was pointed out as a good one by Mike Higgs when he ran a website on dividend paying growth stocks. This stock is considered often with REITs, as it is a real estate company.
There is a minimum amount of insider buying (just less than $.5M). Insiders have more shares than stock options. Recently the insider’s that received options seem to be retaining them and this is a good sign. The company has recently raised their dividend by a third. This shows managements faith in future earnings and cash flows to cover the increased dividend. Also, the Melton family owns just over half of this company. Also, Melcor has also been buying back shares and they have been reduced by just over 1% per year of the outstanding shares over the past 3 years.
When I look at the 5 year median Price/Earnings Ratios, I get a low P/E of 6.3 and a high P/E of 14.9. I also get an average of 9.2. So the current P/E Ratio of 10 is just over the average for this stock. However, a P/E ratio of 10 is a good one. I get a Graham Price of $20.70. This is some 22% higher than the current stock price of $16.15. The high median difference between the Graham Price and the stock price is 22%. So by this measure, the stock price is relatively high. However, buying a stock at a price less than the Graham Price is considered a good price.
I get a 10 year median Price/Book Value Ratio of 1.04 and a current P/B Ratio of 1.36 and also by this measure, the stock price is relatively high. However, a P/B Ratio of 1.36 is a good ratio. I get a 5 year median yield of 2.78% and a current yield of 2.48%. This also does not show a current good stock price. However, the 10 year median low yield is just 2.2%, so the yield is better than it has sometime been.
The next thing to look at is the analysts’ recommendations. There seems to be two analysts following this stock and they both give a Buy recommendation. Melcor has just recently issued some convertible debentures of $40M. One analyst is impressed that KingSett Capital bought some $18M of these debentures. There are two articles on this issuance of debentures, one at Yahoo Finance and one at KingSett Capital’s site.
I plan to keep the shares I have in this company. I think that this has been a good investment for me.
This company is primarily engaged in the acquisition of land for development and sale of residential communities, multi-family sites and commercial sites. It operates mostly in B.C. and Alberta. The company also develops, owns and manages commercial income properties, as well as two golf courses. Its web site is here Melcor. See my spreadsheet at mrd.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.
There is a minimum amount of insider buying (just less than $.5M). Insiders have more shares than stock options. Recently the insider’s that received options seem to be retaining them and this is a good sign. The company has recently raised their dividend by a third. This shows managements faith in future earnings and cash flows to cover the increased dividend. Also, the Melton family owns just over half of this company. Also, Melcor has also been buying back shares and they have been reduced by just over 1% per year of the outstanding shares over the past 3 years.
When I look at the 5 year median Price/Earnings Ratios, I get a low P/E of 6.3 and a high P/E of 14.9. I also get an average of 9.2. So the current P/E Ratio of 10 is just over the average for this stock. However, a P/E ratio of 10 is a good one. I get a Graham Price of $20.70. This is some 22% higher than the current stock price of $16.15. The high median difference between the Graham Price and the stock price is 22%. So by this measure, the stock price is relatively high. However, buying a stock at a price less than the Graham Price is considered a good price.
I get a 10 year median Price/Book Value Ratio of 1.04 and a current P/B Ratio of 1.36 and also by this measure, the stock price is relatively high. However, a P/B Ratio of 1.36 is a good ratio. I get a 5 year median yield of 2.78% and a current yield of 2.48%. This also does not show a current good stock price. However, the 10 year median low yield is just 2.2%, so the yield is better than it has sometime been.
The next thing to look at is the analysts’ recommendations. There seems to be two analysts following this stock and they both give a Buy recommendation. Melcor has just recently issued some convertible debentures of $40M. One analyst is impressed that KingSett Capital bought some $18M of these debentures. There are two articles on this issuance of debentures, one at Yahoo Finance and one at KingSett Capital’s site.
I plan to keep the shares I have in this company. I think that this has been a good investment for me.
This company is primarily engaged in the acquisition of land for development and sale of residential communities, multi-family sites and commercial sites. It operates mostly in B.C. and Alberta. The company also develops, owns and manages commercial income properties, as well as two golf courses. Its web site is here Melcor. See my spreadsheet at mrd.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, April 26, 2011
Melcor Developments Inc
I first bought this stock (TSX-MRD) in July 2008 and some more in August 2008 and April 2009 and July 2009. I have made a total return on this stock of 16%. The return occurred mainly because I got this stock very cheap in 2009. Probably just over 2% of my return is in dividends.
This stock pays dividend twice each year. They decide each year how much to give in dividends and dividends have not only moved up, but has also moved down. The most recent move down was in 2009, when dividends were decreased by about 40%. They are prudent and this is a good quality to have in management for companies in which you invest. Even so, the 5 year and 10 year growth in dividends over the past 5 and 10 years is 18.5% and 17.5% per year, respectively.
The total return over the past 5 and 10 years has been 7.3% and 27.6% per year respectively. The part of this total return that would be dividends is 2.7% and 5% per year, respectively. As you can see, this company has done very well over the past 10 year, but not so well over the past 5 years. However, this 5 year performance is probably better than the market as a whole. The TSX index growth was just 3.6% per year, over the past 5 years.
For this company, most of the 10 year growth figures are better than the 5 year figures. For example, revenue per shares over the past 5 and 10 years has grown at the rate of 4% and 12.3% per year, respectively. The growth in earnings has grown over the past 5 and 10 years at the rate of 1.9% and 15.6% per year, respectively. The place where this is not true is the growth in book value, which for the last 5 and 10 years has been quite consistent. The 5 and 10 year growth is around 14.5% per year.
For this company, the Return on Equity at the end of 2010 is 12.6% and the ROE has a 5 year median value of 13.2%. With the introduction of the new IFRS accounting rules, it has been suggested that we also look at the ROE using the Comprehensive Income for a company. For this company, these values are not significantly different at 12.4% for the end 2010 and a 5 year median value of 13.8%.
Although this stock constitutes a small part my portfolio, I have been pleased with the results I have received via my investment. I plan to hold on to what I have and might consider getting more when I can invest again.
This company is primarily engaged in the acquisition of land for development and sale of residential communities, multi-family sites and commercial sites. It operates mostly in B.C. and Alberta. The company also develops, owns and manages commercial income properties, as well as two golf courses. Its web site is here Melcor. See my spreadsheet at mrd.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.
This stock pays dividend twice each year. They decide each year how much to give in dividends and dividends have not only moved up, but has also moved down. The most recent move down was in 2009, when dividends were decreased by about 40%. They are prudent and this is a good quality to have in management for companies in which you invest. Even so, the 5 year and 10 year growth in dividends over the past 5 and 10 years is 18.5% and 17.5% per year, respectively.
The total return over the past 5 and 10 years has been 7.3% and 27.6% per year respectively. The part of this total return that would be dividends is 2.7% and 5% per year, respectively. As you can see, this company has done very well over the past 10 year, but not so well over the past 5 years. However, this 5 year performance is probably better than the market as a whole. The TSX index growth was just 3.6% per year, over the past 5 years.
For this company, most of the 10 year growth figures are better than the 5 year figures. For example, revenue per shares over the past 5 and 10 years has grown at the rate of 4% and 12.3% per year, respectively. The growth in earnings has grown over the past 5 and 10 years at the rate of 1.9% and 15.6% per year, respectively. The place where this is not true is the growth in book value, which for the last 5 and 10 years has been quite consistent. The 5 and 10 year growth is around 14.5% per year.
For this company, the Return on Equity at the end of 2010 is 12.6% and the ROE has a 5 year median value of 13.2%. With the introduction of the new IFRS accounting rules, it has been suggested that we also look at the ROE using the Comprehensive Income for a company. For this company, these values are not significantly different at 12.4% for the end 2010 and a 5 year median value of 13.8%.
Although this stock constitutes a small part my portfolio, I have been pleased with the results I have received via my investment. I plan to hold on to what I have and might consider getting more when I can invest again.
This company is primarily engaged in the acquisition of land for development and sale of residential communities, multi-family sites and commercial sites. It operates mostly in B.C. and Alberta. The company also develops, owns and manages commercial income properties, as well as two golf courses. Its web site is here Melcor. See my spreadsheet at mrd.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, April 21, 2011
Enbridge Inc 2
I first bought this stock (TSX-ENB) in Jul 2005 and then some more in November 2008 and in January 2009. To date I have made a total return of 16.5% per year. Probably, the dividend portion is around 2.6 to 2.7% per year.
When I look at insider trading, I find Insider Selling at $49.9M. The selling seems to be all stock options, including $22M by the CEO. Everyone, except Directors have lots more stock options than shares. Even for the directors, their stock options are just below the number of shares they own. There is a bit of insider buying, but it is too minor to mention. The management has shown confidence in this company by increasing the dividend for this year by 15.3%.
I get 5 year median low Price/Earning Ratio of 17.7 and a 5 year median high P/E Ratio of 21. So the current P/E ratio of 20.7 is quite close to, but below the 5 year median high. I get a Graham Price of $35.26 and the current stock price of $59.38 is some 68% higher. The 10 year median difference between the Graham Price and the stock price is 38%. So on a relative basis, the stock price is high.
I get a 10 year median Price/Book Value Ratio of 2.69 and a current P/B Ratio of 3.07. The current P/B Ratio is some 14% higher than the 10 year median P/B Ratio. This would also point to a relatively high stock price.
I get a current dividend yield of 3.3% and a 5year median average yield of 3.3%. So this show the stock price is about average.
Another site to get ratios to compare to my spreadsheets would be Reuters. This stock would be at Enbridge. See the summary and financial tabs for applicable ratios. What is interesting is with the financial tab you not only get the ratios for this company, but the average in the particular sector, industry and S&P500. Although this seems orientated towards US stocks, it is still a useful comparison. By the way, TTM means trailing twelve months and MRQ means most recent quarter.
When I look at analysts recommendations, I find Strong Buy, Buy and Hold recommendations. The consensus would be a Buy recommendation. (See my site for information on analyst ratings.)
Analysts with Hold recommendations give a 12 month target for the stock price between $59 and $61. A couple of analysts with hold recommendations thought any price above $57 was too high to pay for this stock. Analysts with Buy recommendations talk about the good dividends and long term capital gains that can be made on this stock. A number of analysts mention that it is a well managed company and that it should be a core holding in any Canadian portfolio.
I am pleased with my investment in this company and will be keeping the stock I currently hold as a core part of my portfolio.
A number of other bloggers have mentioned this stock lately. First, My Own Advisor Blog mentioned Enbridge on April 18th. The Loonie Bin Blogger wrote about Enbridge on February 26, 2011. The passive Income Earner wrote about Enbridge on February 11th, 2011. Also, The Best Green Stocks blogger lists Enbridge as a clean energy stock on April 5th 2011.
On Tuesday, after the holidays, I will be talking about Melcor Developments Inc (TSX-MRD).
Enbridge is focused on three core businesses of crude oil and liquids pipelines, natural gas pipelines, and natural gas distribution. They operate in Canada and US. Its web site is here Enbridge. See my spreadsheet at enb.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 Insider Selling at $49.9M. The selling seems to be all stock options, including $22M by the CEO. Everyone, except Directors have lots more stock options than shares. Even for the directors, their stock options are just below the number of shares they own. There is a bit of insider buying, but it is too minor to mention. The management has shown confidence in this company by increasing the dividend for this year by 15.3%.
I get 5 year median low Price/Earning Ratio of 17.7 and a 5 year median high P/E Ratio of 21. So the current P/E ratio of 20.7 is quite close to, but below the 5 year median high. I get a Graham Price of $35.26 and the current stock price of $59.38 is some 68% higher. The 10 year median difference between the Graham Price and the stock price is 38%. So on a relative basis, the stock price is high.
I get a 10 year median Price/Book Value Ratio of 2.69 and a current P/B Ratio of 3.07. The current P/B Ratio is some 14% higher than the 10 year median P/B Ratio. This would also point to a relatively high stock price.
I get a current dividend yield of 3.3% and a 5year median average yield of 3.3%. So this show the stock price is about average.
Another site to get ratios to compare to my spreadsheets would be Reuters. This stock would be at Enbridge. See the summary and financial tabs for applicable ratios. What is interesting is with the financial tab you not only get the ratios for this company, but the average in the particular sector, industry and S&P500. Although this seems orientated towards US stocks, it is still a useful comparison. By the way, TTM means trailing twelve months and MRQ means most recent quarter.
When I look at analysts recommendations, I find Strong Buy, Buy and Hold recommendations. The consensus would be a Buy recommendation. (See my site for information on analyst ratings.)
Analysts with Hold recommendations give a 12 month target for the stock price between $59 and $61. A couple of analysts with hold recommendations thought any price above $57 was too high to pay for this stock. Analysts with Buy recommendations talk about the good dividends and long term capital gains that can be made on this stock. A number of analysts mention that it is a well managed company and that it should be a core holding in any Canadian portfolio.
I am pleased with my investment in this company and will be keeping the stock I currently hold as a core part of my portfolio.
A number of other bloggers have mentioned this stock lately. First, My Own Advisor Blog mentioned Enbridge on April 18th. The Loonie Bin Blogger wrote about Enbridge on February 26, 2011. The passive Income Earner wrote about Enbridge on February 11th, 2011. Also, The Best Green Stocks blogger lists Enbridge as a clean energy stock on April 5th 2011.
On Tuesday, after the holidays, I will be talking about Melcor Developments Inc (TSX-MRD).
Enbridge is focused on three core businesses of crude oil and liquids pipelines, natural gas pipelines, and natural gas distribution. They operate in Canada and US. Its web site is here Enbridge. See my spreadsheet at enb.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, April 20, 2011
Enbridge Inc
I first bought this stock (TSX-ENB) in Jul 2005 and then some more in November 2008 and in January 2009. To date I have made a total return of 16.5% per year. Probably, the dividend portion is around 2.6 to 2.7% per year. They on the dividend lists that I follow of Dividend Achievers and Dividend Aristocrats (see indices).
This company has consistently raised their dividend since 1995 that I know of. Both the 5 and 10 year growth in dividends has been good at 10.4% each year. On my original investment in 2005, I am earning a yield of 5.5% and overall, I am earning on my investment in this company a yield of 5%. They have just raised the dividend this year by 15.3%. The Payout rates are good at with a 5 year median payout on earnings of 63% and a 5 year median payout on cash flow of 33%.
All the growth rates for revenue, earnings, total return, cash flow and book value are good for this company with the exception of earnings over the last 10 years and that is a little low, but still fine. The 5 and 10 year EPS growth is 9.5% and 7.5% per year, respectively. For the other growth rates, for example, on revenues per share over the 5 and 10 years is 10% and 17% per year, respectively.
As far as debt ratios go, the Liquidity Ratios and the Asset/Liability Ratios are a bit low and the Leverage and Debt/Equity Ratios a bit high. The Liquidity Ratio is 1.12 and the Asset/Liability Ratio is 1.38. The leverage Ratio is 4.05 and the Debt/Equity Ratio 2.94. However, pipelines companies do tend to have high debt loads.
The last thing to look at is the Return on Equity. The ROE is good at 12.9% for the financial year ending in December 2010. The 5 year median ROE is also good at 13.7%. The ROE is usually higher than the current 12.9% rate.
Tomorrow, I will look at what my spreadsheet ratios say about the current price and what analysts have to say about this stock. For me, I believe that my investment in this stock has been a good investment.
Enbridge is focused on three core businesses of crude oil and liquids pipelines, natural gas pipelines, and natural gas distribution. They operate in Canada and US. Its web site is here Enbridge. See my spreadsheet at enb.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.
This company has consistently raised their dividend since 1995 that I know of. Both the 5 and 10 year growth in dividends has been good at 10.4% each year. On my original investment in 2005, I am earning a yield of 5.5% and overall, I am earning on my investment in this company a yield of 5%. They have just raised the dividend this year by 15.3%. The Payout rates are good at with a 5 year median payout on earnings of 63% and a 5 year median payout on cash flow of 33%.
All the growth rates for revenue, earnings, total return, cash flow and book value are good for this company with the exception of earnings over the last 10 years and that is a little low, but still fine. The 5 and 10 year EPS growth is 9.5% and 7.5% per year, respectively. For the other growth rates, for example, on revenues per share over the 5 and 10 years is 10% and 17% per year, respectively.
As far as debt ratios go, the Liquidity Ratios and the Asset/Liability Ratios are a bit low and the Leverage and Debt/Equity Ratios a bit high. The Liquidity Ratio is 1.12 and the Asset/Liability Ratio is 1.38. The leverage Ratio is 4.05 and the Debt/Equity Ratio 2.94. However, pipelines companies do tend to have high debt loads.
The last thing to look at is the Return on Equity. The ROE is good at 12.9% for the financial year ending in December 2010. The 5 year median ROE is also good at 13.7%. The ROE is usually higher than the current 12.9% rate.
Tomorrow, I will look at what my spreadsheet ratios say about the current price and what analysts have to say about this stock. For me, I believe that my investment in this stock has been a good investment.
Enbridge is focused on three core businesses of crude oil and liquids pipelines, natural gas pipelines, and natural gas distribution. They operate in Canada and US. Its web site is here Enbridge. See my spreadsheet at enb.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, April 19, 2011
BCE Inc 2
I first bought BCE (TSX-BCE) in 1982. I have only tracked this stock on Quicken from 1987 and since then I have had a return of 12.7% per year in total returns. This total return figure includes Nortel and Bell Aliant, both of which BCE has spin off over the years. It is hard to value the return from this stock. Not only has BCE spin-off other stocks, but they tended to do this at high prices.
When I look at the Insider Trading report, I find that the CEO sold off $43.7M shares. A number of directors bought shares to the tune of $4M. There is net selling of $39.7M. The CEO seemed to be selling off his options. All insiders, except directors have more options that stock. The CEO, after his sell off of options in March now has more shares than options.
Insiders often look at options as part of their salary. Unfortunately, this sell off tells us nothing about what the CEO thinks of this company. I guess it points out what sort of money the CEO is making and it is a lot. The company has shown confidence in the earning ability of BCE by their recent dividend increase of just over 13%.
If you are interested in purchasing any stock I follow, you can, at any time look at the spreadsheet to compare historical values to current values. For this stock, you will find Price/Earning (both forward and trailing), and Price/Book Ratios at Yahoo Canada. You should look at Key Statistics tab. Or, you can go to Globe and Mail at G&M. The Globe and Mail summary will give you P/E (Trailing), Forward P/E and the yield.
For Price/Earnings Ratios, I get a 5 year median low of 9.69 and a 5 year median high of 12.62. You can compare this to the Forward P/E on Yahoo and today it is 11.45. As you can see, it is between these two rates. You can also look at my P/E ratio for an Average of the H/L prices and this has a 5 year median P/E of 11.15. So you can see that the current P/E ratio for this stock is between the high and low marks and is close to the average.
On sites that give you a Trailing P/E Ratio (or use last 10 months of earnings to determine the P/E Ratio, you should compare this to my Trailing P/E Ratio. This is always the 2nd P/E Ratio that I show. On Yahoo today you can get a Trailing P/E Ratio of 12.37. I get a 5 year median Low Trailing P/E Ratio of 12.95 and a 5 year median High Trailing P/E Ratio of 17.05. Here you can see that the current ratio is just below my Low Trailing P/E ratio. Do not forget that the Trailing P/E Ratio is based on actual earnings. The Forward P/E Ratio is based on expected earnings.
I haven’t found any site that gives you the difference between the Graham Price and the current Price. However, you can find the Graham price on my site and do the comparison yourself. In this case, I get a current Graham price $35.75, which is very close to the current stock price of $35.46. You can see from my spreadsheet that, on average, the stock price is 13.87% above the Graham Price. So, this stock being close to the Graham Price is good.
Next, look at the Price/Book Value Ratio. Yahoo has a P/B Ratio of 1.85. I have a 10 year median P/B Ratio of 1.95. You can see that the current one is lower than the 10 year median ratio, so this shows a relatively good stock price. A really good stock price would have a P/B Ratio at 80% lower than the 10 year median ratio. For BCE, the difference is that the current P/B Ratio is 96% of the 10 year median P/B Ratio.
If you look at dividend yield, you will see that G&M gives a current one 5.6%. On my spreadsheet, I give a 5 year median yield on the Average H/L price of 5.45%. This shows that the stock price is just better than average and therefore a good price.
The next thing I look at is Analysts Recommendations. I generally look at the Globe and Mail site at G&M, The Daily Buy and Sell Adviser’s Morning Call, and the Financial Post Report, which I get via my broker. These sites you a good idea what is being recommended. To get comments of analysts, you can go to Stock Chase online. I also look at various analysts reports I have. Stocks Reports are available at Advise for Investors. Go to the “Research Tab”. Where it says “Buy-Sell Research Report”, insert the stock symbol. The stock symbol for this stock is “BCE”. Reports are often available for $4.95.
When I look at Analysts Recommendations, I see Strong Buy, Buy and Hold. There is more Strong Buy than Buy recommendations. However, there are an awful lot of Hold recommendations. The consensus recommendations would be a Hold. (See my site for information on analyst ratings.)
Even though my spreadsheets shows a relatively good current price, analysts giving Hold recommendations give a 12 month stock price between $35 and $37.50. They are giving Hold recommendations, as they do not expect much movement in price over the next 12 months. The analysts with Buy recommendations give their reason because of the good dividend yield. They think you should buy this stock for the dividends.
A number of blogs have recently mentioned this stock. The Dividend Ninja mentions BCE as a good one to invest in on April 15, 2011 and Passive Income Earner has a blog entry on BCE, dated April 14, 2011 and Loonie Bin talks about buying BCE on December 10, 2010.
BCE is Canada's largest communications company, providing the most comprehensive and innovative suite of communication services to residential and business customers in Canada. Operating under the Bell and Bell Aliant brands, the Company's services include Bell Home phone local and long distance services, Bell Mobility, Virgin Mobile and Solo Mobile wireless, high-speed Bell Internet, Bell TV direct-to-home satellite and VDSL television, IP-broadband services and information and communications technology (ICT) services. Its web site is here BCE. See my spreadsheet at bce.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 the CEO sold off $43.7M shares. A number of directors bought shares to the tune of $4M. There is net selling of $39.7M. The CEO seemed to be selling off his options. All insiders, except directors have more options that stock. The CEO, after his sell off of options in March now has more shares than options.
Insiders often look at options as part of their salary. Unfortunately, this sell off tells us nothing about what the CEO thinks of this company. I guess it points out what sort of money the CEO is making and it is a lot. The company has shown confidence in the earning ability of BCE by their recent dividend increase of just over 13%.
If you are interested in purchasing any stock I follow, you can, at any time look at the spreadsheet to compare historical values to current values. For this stock, you will find Price/Earning (both forward and trailing), and Price/Book Ratios at Yahoo Canada. You should look at Key Statistics tab. Or, you can go to Globe and Mail at G&M. The Globe and Mail summary will give you P/E (Trailing), Forward P/E and the yield.
For Price/Earnings Ratios, I get a 5 year median low of 9.69 and a 5 year median high of 12.62. You can compare this to the Forward P/E on Yahoo and today it is 11.45. As you can see, it is between these two rates. You can also look at my P/E ratio for an Average of the H/L prices and this has a 5 year median P/E of 11.15. So you can see that the current P/E ratio for this stock is between the high and low marks and is close to the average.
On sites that give you a Trailing P/E Ratio (or use last 10 months of earnings to determine the P/E Ratio, you should compare this to my Trailing P/E Ratio. This is always the 2nd P/E Ratio that I show. On Yahoo today you can get a Trailing P/E Ratio of 12.37. I get a 5 year median Low Trailing P/E Ratio of 12.95 and a 5 year median High Trailing P/E Ratio of 17.05. Here you can see that the current ratio is just below my Low Trailing P/E ratio. Do not forget that the Trailing P/E Ratio is based on actual earnings. The Forward P/E Ratio is based on expected earnings.
I haven’t found any site that gives you the difference between the Graham Price and the current Price. However, you can find the Graham price on my site and do the comparison yourself. In this case, I get a current Graham price $35.75, which is very close to the current stock price of $35.46. You can see from my spreadsheet that, on average, the stock price is 13.87% above the Graham Price. So, this stock being close to the Graham Price is good.
Next, look at the Price/Book Value Ratio. Yahoo has a P/B Ratio of 1.85. I have a 10 year median P/B Ratio of 1.95. You can see that the current one is lower than the 10 year median ratio, so this shows a relatively good stock price. A really good stock price would have a P/B Ratio at 80% lower than the 10 year median ratio. For BCE, the difference is that the current P/B Ratio is 96% of the 10 year median P/B Ratio.
If you look at dividend yield, you will see that G&M gives a current one 5.6%. On my spreadsheet, I give a 5 year median yield on the Average H/L price of 5.45%. This shows that the stock price is just better than average and therefore a good price.
The next thing I look at is Analysts Recommendations. I generally look at the Globe and Mail site at G&M, The Daily Buy and Sell Adviser’s Morning Call, and the Financial Post Report, which I get via my broker. These sites you a good idea what is being recommended. To get comments of analysts, you can go to Stock Chase online. I also look at various analysts reports I have. Stocks Reports are available at Advise for Investors. Go to the “Research Tab”. Where it says “Buy-Sell Research Report”, insert the stock symbol. The stock symbol for this stock is “BCE”. Reports are often available for $4.95.
When I look at Analysts Recommendations, I see Strong Buy, Buy and Hold. There is more Strong Buy than Buy recommendations. However, there are an awful lot of Hold recommendations. The consensus recommendations would be a Hold. (See my site for information on analyst ratings.)
Even though my spreadsheets shows a relatively good current price, analysts giving Hold recommendations give a 12 month stock price between $35 and $37.50. They are giving Hold recommendations, as they do not expect much movement in price over the next 12 months. The analysts with Buy recommendations give their reason because of the good dividend yield. They think you should buy this stock for the dividends.
A number of blogs have recently mentioned this stock. The Dividend Ninja mentions BCE as a good one to invest in on April 15, 2011 and Passive Income Earner has a blog entry on BCE, dated April 14, 2011 and Loonie Bin talks about buying BCE on December 10, 2010.
BCE is Canada's largest communications company, providing the most comprehensive and innovative suite of communication services to residential and business customers in Canada. Operating under the Bell and Bell Aliant brands, the Company's services include Bell Home phone local and long distance services, Bell Mobility, Virgin Mobile and Solo Mobile wireless, high-speed Bell Internet, Bell TV direct-to-home satellite and VDSL television, IP-broadband services and information and communications technology (ICT) services. Its web site is here BCE. See my spreadsheet at bce.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, April 18, 2011
BCE Inc
I first bought BCE (TSX-BCE) in 1982. I have only tracked this stock on Quicken from 1987 and since then I have had a return of 12.7% per year in total returns. This total return figure includes Nortel and Bell Aliant, both of which BCE has spin off over the years. It is hard to value the return from this stock. Not only has BCE spin-off other stocks, but they tended to do this at high prices.
I was lucky to sell half of my Nortel in 2000 when it was still worth something. And, looking Bell Aliant alone, I have lost 4.8% per year between the time of the spin-off in 2006 and when I sold the stock in 2008. I did not get much in the spin off and it was not a stock I wanted to hold. According to Quicken, I have made a total return of 8.6% per year over the past 5 years. This includes the Bell Aliant spin-off.
I guess the first thing to talk about is dividends. The yield on this stock is quite good at 5.6%. The growth in dividends has been over the past 5 and 10 years at 5.6% and 3.4% per year, respectively. However, BCE has been inconsistent in dividend increases. They have good increases when they do an increase, but there are lots of years with no increases, and some with decreases. The 10 year growth rate is not much better than the long term background inflation rate of 3%.
There has been limited growth in revenue over the past 5 and 10 years. Cash Flow growth is not much better. The growth in Earnings is better, with 5 and 10 year growth at 6.9% and 8.5% per year, respectively. Book Value growth over the past 5 and 10 years at 6.4% and 0% per year respectively is nothing to write home about.
When I look at the debt ratios, I find the Liquidity Ratio low at 0.60; however, it is usually low. The Asset/Liability Ratio is good 1.86. The Leverage Ratio at 2.72 and the Debt/Equity Ratio at 1.46 are pretty normal. There is nothing remarkable in these debt ratios for this company.
Looking at the Return on Equity, I find that the ROE for the financial year ending in 2010 at 15%. The 5 year median ROE is also 15%. Both these ROEs are good and the ROE for 2010 is also normal for this company.
I sometimes wonder if I should not sell the rest of my BCE shares. They are just under 1% of my portfolio and I have not been interested, when I have money to invest, in buying anymore. Problem, of course, is that my ACB is very low on this stock.
BCE is Canada's largest communications company, providing the most comprehensive and innovative suite of communication services to residential and business customers in Canada. Operating under the Bell and Bell Aliant brands, the Company's services include Bell Home phone local and long distance services, Bell Mobility, Virgin Mobile and Solo Mobile wireless, high-speed Bell Internet, Bell TV direct-to-home satellite and VDSL television, IP-broadband services and information and communications technology (ICT) services. Its web site is here BCE. See my spreadsheet at bce.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.
I was lucky to sell half of my Nortel in 2000 when it was still worth something. And, looking Bell Aliant alone, I have lost 4.8% per year between the time of the spin-off in 2006 and when I sold the stock in 2008. I did not get much in the spin off and it was not a stock I wanted to hold. According to Quicken, I have made a total return of 8.6% per year over the past 5 years. This includes the Bell Aliant spin-off.
I guess the first thing to talk about is dividends. The yield on this stock is quite good at 5.6%. The growth in dividends has been over the past 5 and 10 years at 5.6% and 3.4% per year, respectively. However, BCE has been inconsistent in dividend increases. They have good increases when they do an increase, but there are lots of years with no increases, and some with decreases. The 10 year growth rate is not much better than the long term background inflation rate of 3%.
There has been limited growth in revenue over the past 5 and 10 years. Cash Flow growth is not much better. The growth in Earnings is better, with 5 and 10 year growth at 6.9% and 8.5% per year, respectively. Book Value growth over the past 5 and 10 years at 6.4% and 0% per year respectively is nothing to write home about.
When I look at the debt ratios, I find the Liquidity Ratio low at 0.60; however, it is usually low. The Asset/Liability Ratio is good 1.86. The Leverage Ratio at 2.72 and the Debt/Equity Ratio at 1.46 are pretty normal. There is nothing remarkable in these debt ratios for this company.
Looking at the Return on Equity, I find that the ROE for the financial year ending in 2010 at 15%. The 5 year median ROE is also 15%. Both these ROEs are good and the ROE for 2010 is also normal for this company.
I sometimes wonder if I should not sell the rest of my BCE shares. They are just under 1% of my portfolio and I have not been interested, when I have money to invest, in buying anymore. Problem, of course, is that my ACB is very low on this stock.
BCE is Canada's largest communications company, providing the most comprehensive and innovative suite of communication services to residential and business customers in Canada. Operating under the Bell and Bell Aliant brands, the Company's services include Bell Home phone local and long distance services, Bell Mobility, Virgin Mobile and Solo Mobile wireless, high-speed Bell Internet, Bell TV direct-to-home satellite and VDSL television, IP-broadband services and information and communications technology (ICT) services. Its web site is here BCE. See my spreadsheet at bce.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, April 15, 2011
IGM Financial Inc 2
I bought this stock (TSX-IGM) in 2006 and my total return to date is 5.4%. My dividend portion is probably around 4.4% and the rest is capital gain. This is a mutual fund company and mutual fund companies have not done well lately. The total return over the last 5 and 10 years for this company is around 4% and 10% per year. The dividend portion is probably around 4.5%.
When I look at Insider Trading, I find net Insider Selling of $3.4M. There is a minimal amount insider buying. As far as I can see, all insider but directors have lots more stock options than shares. There are lots of insider who are not executives or officers of the company that have stock options. IGM is also buying back stocks on the open market for cancellation. Over the past few years, the number of shares outstanding has gone down, but only by less than 1% per year.
I get a 5 year median low Price/Earnings Ratio of 13.3 and a 5 year high P/E Ratio of 17.4. The current P/E ratio of 15.4 is pretty close to an average. I get a Graham Price of $34.63 and a current stock price of $49.18. The stock price is some 42% higher than the Graham Price. This is pretty average for this company. This is a growth company, and these companies seldom have a stock price at the Graham Price.
I get a 10 year median Price/Book Value Ratio of 2.97 and a current P/B Ratio of 2.95. The current ratio is 99% of the 10 year median. When I look at the yield, I get a current one of 4.2% and a 5 year median at 5%. So by this measure, the price is higher than average, but there has been no dividend increase since 2009. By most of these measures, except yield, shows an rather average price.
When I look at analysts’ recommendations, I see Strong Buy, Buy, Underperform and Sell. There are at least 2 sells, but only 1 Underperform recommendation. There are more Strong Buy recommendations than any other recommendation. The consensus is a Buy. (See my site for information on analyst ratings.)
It is interesting that I find no Hold recommendations. One analyst’s said the stock was attractively priced. The 12 month stock price is at just $50.75 for those analysts that rate this stock a buy. (That would be a 12 month total return of just over 7 %.) Another buy recommendation comes with a 12 month price of $53.00. This will give a total return close to 12%.
One analyst with a sell recommendation says that it is a sell because there is not much growth in this stock at present. A number of analysts remark that it is a very solid company. Do not forget that analysts give rating depending on their views of why you should or should not buy a company. As far as I can see, the price on this stock is relatively an average price. It is not a great price.
As I said yesterday, I will retain the shares I have but I will not be buying more as I also have an investment in Power Financial.
This is a premier mutual fund, managed asset and personal financial services company. The company has three operating units, Investors Group, Mackenzie Financial Corporation and Investment Planning Counsel Inc. IGM Financial Inc. is a member of the Power Financial Corporation group of companies. Its web site is here IGM. See my spreadsheet at igm.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 of $3.4M. There is a minimal amount insider buying. As far as I can see, all insider but directors have lots more stock options than shares. There are lots of insider who are not executives or officers of the company that have stock options. IGM is also buying back stocks on the open market for cancellation. Over the past few years, the number of shares outstanding has gone down, but only by less than 1% per year.
I get a 5 year median low Price/Earnings Ratio of 13.3 and a 5 year high P/E Ratio of 17.4. The current P/E ratio of 15.4 is pretty close to an average. I get a Graham Price of $34.63 and a current stock price of $49.18. The stock price is some 42% higher than the Graham Price. This is pretty average for this company. This is a growth company, and these companies seldom have a stock price at the Graham Price.
I get a 10 year median Price/Book Value Ratio of 2.97 and a current P/B Ratio of 2.95. The current ratio is 99% of the 10 year median. When I look at the yield, I get a current one of 4.2% and a 5 year median at 5%. So by this measure, the price is higher than average, but there has been no dividend increase since 2009. By most of these measures, except yield, shows an rather average price.
When I look at analysts’ recommendations, I see Strong Buy, Buy, Underperform and Sell. There are at least 2 sells, but only 1 Underperform recommendation. There are more Strong Buy recommendations than any other recommendation. The consensus is a Buy. (See my site for information on analyst ratings.)
It is interesting that I find no Hold recommendations. One analyst’s said the stock was attractively priced. The 12 month stock price is at just $50.75 for those analysts that rate this stock a buy. (That would be a 12 month total return of just over 7 %.) Another buy recommendation comes with a 12 month price of $53.00. This will give a total return close to 12%.
One analyst with a sell recommendation says that it is a sell because there is not much growth in this stock at present. A number of analysts remark that it is a very solid company. Do not forget that analysts give rating depending on their views of why you should or should not buy a company. As far as I can see, the price on this stock is relatively an average price. It is not a great price.
As I said yesterday, I will retain the shares I have but I will not be buying more as I also have an investment in Power Financial.
This is a premier mutual fund, managed asset and personal financial services company. The company has three operating units, Investors Group, Mackenzie Financial Corporation and Investment Planning Counsel Inc. IGM Financial Inc. is a member of the Power Financial Corporation group of companies. Its web site is here IGM. See my spreadsheet at igm.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, April 14, 2011
IGM Financial Inc
I bought this stock (TSX-IGM) in 2006 and my total return to date is 5.4%. My dividend portion is probably around 4.4% and the rest is capital gain. As you can see, I have not made much in capital gain. This is a mutual fund company and mutual fund companies have not done well lately. The total return over the last 5 and 10 years for this company is around 4% and 10% per year. The dividend portion is probably around 4.5%. Long term holders have done much better than those holding this stock for a shorter period have.
This stock is no longer on the dividend lists that I follow. In fact, these lists have gotten much shorter lately because so many companies stopped increasing their dividends since our last stock market crisis. However, this company does have a good record of increases and the dividend growth over the past 5 and 10 years is at 9% and 13% per year. I expect that this company will again start increasing their dividends.
However, they have not stated when this would happen as far as I can see. If they make the expected earnings and cash flow as given by analysts, the Payout Ratios should be good enough for the restarting of dividend increases. I must admit that analyst’s expected earnings and cash flows are not terribly accurate.
For this company, in general, the 10 year growth rates are better than the 5 year growth rates. For example, the 5 and 10 year growth for revenue is 2.2% and 8% per year, respectively. The 5 and 10 year growth for earnings is 1.5% and 7.5% per year, respectively. Cash flow has growth over the past 5 and 10 years at the rate of 5% and 7.7% per year, respectively.
The Liquidity Ratio at 2.95, with a 5 year median of 2.31 is very good. The Asset/Liability Ratio at 2.01 and with a 5 year median of 2.05 is also very good. The Leverage Ratio and the Debt/Equity Ratios are also good with the Leverage Ratio at 2.06 and the Debt/Equity Ratio at 1.02.
The Return on Equity using the net income is good for this company at 16.8%, with a 5 year median at 17.7%. The ROE using the Comprehensive Income is not much different, with a value of 16.8 for the year ending in December 2010. With the change in account rules to IFRS account in Canada, it is expected that analysts should start looking at ROE based on Comprehensive Income. I have added this to my spreadsheets.
I think that this has been a good investment for me. I will not be buying more as I also have an investment in Power Financial. I expect that this company will recover in time, as will all our insurance companies.
This is a premier mutual fund, managed asset and personal financial services company. The company has three operating units, Investors Group, Mackenzie Financial Corporation and Investment Planning Counsel Inc. IGM Financial Inc. is a member of the Power Financial Corporation group of companies. Its web site is here IGM. See my spreadsheet at igm.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.
This stock is no longer on the dividend lists that I follow. In fact, these lists have gotten much shorter lately because so many companies stopped increasing their dividends since our last stock market crisis. However, this company does have a good record of increases and the dividend growth over the past 5 and 10 years is at 9% and 13% per year. I expect that this company will again start increasing their dividends.
However, they have not stated when this would happen as far as I can see. If they make the expected earnings and cash flow as given by analysts, the Payout Ratios should be good enough for the restarting of dividend increases. I must admit that analyst’s expected earnings and cash flows are not terribly accurate.
For this company, in general, the 10 year growth rates are better than the 5 year growth rates. For example, the 5 and 10 year growth for revenue is 2.2% and 8% per year, respectively. The 5 and 10 year growth for earnings is 1.5% and 7.5% per year, respectively. Cash flow has growth over the past 5 and 10 years at the rate of 5% and 7.7% per year, respectively.
The Liquidity Ratio at 2.95, with a 5 year median of 2.31 is very good. The Asset/Liability Ratio at 2.01 and with a 5 year median of 2.05 is also very good. The Leverage Ratio and the Debt/Equity Ratios are also good with the Leverage Ratio at 2.06 and the Debt/Equity Ratio at 1.02.
The Return on Equity using the net income is good for this company at 16.8%, with a 5 year median at 17.7%. The ROE using the Comprehensive Income is not much different, with a value of 16.8 for the year ending in December 2010. With the change in account rules to IFRS account in Canada, it is expected that analysts should start looking at ROE based on Comprehensive Income. I have added this to my spreadsheets.
I think that this has been a good investment for me. I will not be buying more as I also have an investment in Power Financial. I expect that this company will recover in time, as will all our insurance companies.
This is a premier mutual fund, managed asset and personal financial services company. The company has three operating units, Investors Group, Mackenzie Financial Corporation and Investment Planning Counsel Inc. IGM Financial Inc. is a member of the Power Financial Corporation group of companies. Its web site is here IGM. See my spreadsheet at igm.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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