Reply to Mike about making money currently. See comments blog.
I own this stock of Thomson Reuters Corp (TSX-TRI, NYSE-TRI). I have owned this stock in my trading account since 1985. I have made a return of some 6.83% per year with 3.94% dividend return and 2.89% capital gain. Not a great showing. However, this stock probably should be considered to be an American stock and the S&P 500 is only up 6.66% over this period.
The other problem I have in making money on this stock is that the Canadian currency has risen significantly against the US$. The growth of the CDN$ against the US$ over the past 10 years is a 36% rise. This company has done better in US$ terms than in CDN$ terms, but unfortunately for me it is only CDN$ terms that count.
Currency risk is the problems with investing in foreign stocks, or Canadian stock where most of their money is made outside Canada. This company reports in US$ as this company is making a significant percentage of their returns in US$. They make money in all the continents.
As far as dividends go, I have had 5 and 10 year grow at the rate of 4% and 1.2% per year over the past 5 and 10 years. In US$ terms, and dividend s are paid in US$, the growth in dividends is at 7.1% and 5.9% per year.
Total return over the past 5 and 10 years is negative in CDN$, but in US$ it is only negative for the last 5 years. Over the past 10 years, in US$ terms, the total return would be around 2% per year.
Over the last 5 and 10 years Revenue per share has grown at the rate of 0% and 7.1% per year in CND$ terms, but at the rate of 3.8% and 10% in US$ terms.
Since this company had negative earnings for 2011 there was no growth. However, earnings are expected to return in 2012 and 5 and 10 year growth to be 3.7% and 8% per year by the end of 2012. Also, I have been tracking the EPS since 1992 and this is the first year of negative earnings.
As far as cash flow goes, there has been no growth over the 5 and 10 years in CDN$ and only slight in US$. However, since I have been tracking this stock in a spreadsheet since 1992, there has been no years of negative cash flow.
The current Liquidity Ratio is low 0.85, but not as low as the 5 year median ratio of 0.80. However, the company has strong cash flow to make up for this. The Debt Ratio at 2.07 is very good, but not quite as high as the 5 year median of 2.27. Both the Leverage and Debt/Equity Ratios are good at 1.98 and 0.96, respectively.
There is, of course, no Return on Equity Ratio for this stock as the earnings for 2011 were negative. However, the 5 year median ROE is low at 7%. The ROE based on Comprehensive Income is even lower at a 5 year median of 4.24%
Book value has also grown better in US$ terms than CDN$ terms, with Book Value growth in CDN$ terms at 1% and 0% over the past 5 and 10 years.
I will continue to hold on to my shares in the company. I had bought it for its foreign exposure and therefore for diversification. The need has not gone away and there is no similar company that I like better than this one.
Thomson Reuters Corp is the leading source of intelligent information for businesses and professionals. They combine industry expertise with innovative technology to deliver critical information to leading decision-makers. Through more than 50,000 people in over 100 countries, they deliver this must-have insight to the financial, legal, tax and accounting, healthcare and science and media markets, powered by the world’s most trusted news organization. They derive the majority of our revenues from selling electronic content and services to professionals, primarily on a subscription basis. Thomson and Reuters amalgamated in 2008. Its web site is here Thomson Reuters. See my spreadsheet at tri.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, June 1, 2012
Thursday, May 31, 2012
Ensign Energy Services 2
I do now own this stock (TSX-ESI) as I scraped some money together and got 100 shares. I got this stock from a dividend list that I follow of Dividend Aristocrats (see indices).
Over the past year there has been little insider trading with very minimal insider buying and insider selling. Over the past 4 months, insiders have been retaining their options and this is positive. There are a number of insiders who own millions of dollars in these shares and have maintained or marginally increased their ownership over the past year. One officer owns or controls some $338M in shares at today’s prices.
Yes, they there seems to be a lot of outstanding options. The company also has Rights Deferred Share Units outstanding. Institutions have been behaving differently as they have decreased their ownership in this company by 5% over the past 3 months. There are some 78 institutions that own about 33% of the outstanding shares. (Insiders have marginally increased their ownership over the past 3 months by buying shares under the company plan or retaining options.)
The 5 year median low and high Price/Earnings Ratios are 9.13 and 15.55. The current P/E Ratio is just 8.01. (Note that the 10 year low P/E Ratio is higher than the 5 year one at 10.96.) The test shows a cheap stock price.
I get a Graham Price of $20.96. The current Stock price of $13.30 is some 37% lower than the Graham Price. The 10 year low difference between the Graham Price and Stock price is the Stock price being 12.5% lower. The 10 year median and high difference between the Graham price and the Stock price is the stock price being 11.6% and 38% higher than the Graham Price. This test shows a cheap stock price.
The 10 year median Price/Book Value Ratio is 2.20 and the current P/B Ratio is 1.13. The current Ratio is just 51% of the 10 year median ratio. This test shows a cheap stock price.
The current dividend of 3.16% is some 37% higher than the 5 year median of 2.3%. (The 10 year median dividend yield is even lower at 1.15%). This test shows a cheap stock price.
When I look at analysts’ recommendations I get Strong Buy, Buy and Hold. The overwhelming majority is Hold and the consensus recommendation is a Hold. One analyst says that the first quarterly revenue hit the highest quarterly level ever for this company. However, he has a Hold on this stock because of market uncertainty revolving around rigs moves. He also felt that estimates for 2013 should be moved down because of market uncertainty.
One analysts with a buy said the fundamentals of the company is pretty good. Another thought the whole sector has declined. There is a current article in the G&M that says “For the patient investor, a sector packed with value”, which talks mostly about this industry. The article quotes two analysts with Buy recommendations on this stock. See G&M article. Another analyst recently downgraded this stock from Buy to Hold as he felt its shares are no longer undervalued relative to peers. However, he also said that Ensign remains one of the more defensive stock for North American contract drillers.
Over the last 90 days, estimates have been trending down with EPS for 2012 decreased from $1.80 to $1.66 and 12 months stock price from $20.40 to $18.60. Still, the 12 month consensus stock price at $18.60 implies a total return of 43%. Personally, I can see why prices are trending downward. European debt problems are affecting everyone and there is no present solution for the problems. (Or, really there are no solutions that people are willing to do.)
To me, the positives are the relatively high dividend and the fact that the company recently increased the dividend by 10.5%. I like to buy when companies are relatively cheap. It is also great to buy in a market going down.
I also bought 200 shares of Automodular Corp (TSX-AM) with dividend income from my TFSA. This is a small cap I originally bought to invest bits of money held in my TFSA. See my most recent report on this company and see my spreadsheet at am.htm.
Ensign Energy Services Inc. is an industry leader in the delivery of oilfield services in Canada, the United States and internationally. They are one of the world's leading land-based drilling and well servicing contractors serving crude oil, natural gas and geothermal operators. Its web site is here Ensign. See my spreadsheet at esi.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.
Over the past year there has been little insider trading with very minimal insider buying and insider selling. Over the past 4 months, insiders have been retaining their options and this is positive. There are a number of insiders who own millions of dollars in these shares and have maintained or marginally increased their ownership over the past year. One officer owns or controls some $338M in shares at today’s prices.
Yes, they there seems to be a lot of outstanding options. The company also has Rights Deferred Share Units outstanding. Institutions have been behaving differently as they have decreased their ownership in this company by 5% over the past 3 months. There are some 78 institutions that own about 33% of the outstanding shares. (Insiders have marginally increased their ownership over the past 3 months by buying shares under the company plan or retaining options.)
The 5 year median low and high Price/Earnings Ratios are 9.13 and 15.55. The current P/E Ratio is just 8.01. (Note that the 10 year low P/E Ratio is higher than the 5 year one at 10.96.) The test shows a cheap stock price.
I get a Graham Price of $20.96. The current Stock price of $13.30 is some 37% lower than the Graham Price. The 10 year low difference between the Graham Price and Stock price is the Stock price being 12.5% lower. The 10 year median and high difference between the Graham price and the Stock price is the stock price being 11.6% and 38% higher than the Graham Price. This test shows a cheap stock price.
The 10 year median Price/Book Value Ratio is 2.20 and the current P/B Ratio is 1.13. The current Ratio is just 51% of the 10 year median ratio. This test shows a cheap stock price.
The current dividend of 3.16% is some 37% higher than the 5 year median of 2.3%. (The 10 year median dividend yield is even lower at 1.15%). This test shows a cheap stock price.
When I look at analysts’ recommendations I get Strong Buy, Buy and Hold. The overwhelming majority is Hold and the consensus recommendation is a Hold. One analyst says that the first quarterly revenue hit the highest quarterly level ever for this company. However, he has a Hold on this stock because of market uncertainty revolving around rigs moves. He also felt that estimates for 2013 should be moved down because of market uncertainty.
One analysts with a buy said the fundamentals of the company is pretty good. Another thought the whole sector has declined. There is a current article in the G&M that says “For the patient investor, a sector packed with value”, which talks mostly about this industry. The article quotes two analysts with Buy recommendations on this stock. See G&M article. Another analyst recently downgraded this stock from Buy to Hold as he felt its shares are no longer undervalued relative to peers. However, he also said that Ensign remains one of the more defensive stock for North American contract drillers.
Over the last 90 days, estimates have been trending down with EPS for 2012 decreased from $1.80 to $1.66 and 12 months stock price from $20.40 to $18.60. Still, the 12 month consensus stock price at $18.60 implies a total return of 43%. Personally, I can see why prices are trending downward. European debt problems are affecting everyone and there is no present solution for the problems. (Or, really there are no solutions that people are willing to do.)
To me, the positives are the relatively high dividend and the fact that the company recently increased the dividend by 10.5%. I like to buy when companies are relatively cheap. It is also great to buy in a market going down.
I also bought 200 shares of Automodular Corp (TSX-AM) with dividend income from my TFSA. This is a small cap I originally bought to invest bits of money held in my TFSA. See my most recent report on this company and see my spreadsheet at am.htm.
Ensign Energy Services Inc. is an industry leader in the delivery of oilfield services in Canada, the United States and internationally. They are one of the world's leading land-based drilling and well servicing contractors serving crude oil, natural gas and geothermal operators. Its web site is here Ensign. See my spreadsheet at esi.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, May 30, 2012
Ensign Energy Services
What we did wrong in the good times. See comments blog.
I do not own this stock of Ensign Energy Services (TSX-ESI), but maybe I should. This stock is on the dividend list I follow of Dividend Aristocrats (see indices). This is a great list to go to, to find stocks to investigate for possible investments.
This stock has been paying dividends since 1995 and has increased their dividends every year since then. The dividend growth over the past 5 and 10 years is 6.9% and 14.8% per year. Dividend increases have slowed since the recent crisis, but the most recent one at the end of 2011 was for 10.5%, so it would seem that management is expecting better earnings ahead. The analysts following this stock seem to concur on this.
The Dividend Payout Ratios are low on this stock with 5 year median DPRs of 28% and 16% for earnings and cash flow respectively. However, the 10 year median DPRs are even lower at 20% and 16% for earnings and cash flow. The DPRs hit a high in 2010 and have been tracking lower since then. They were 28% and 16% for earnings and cash for 2011, right on the 5 year median values and are expected to be a bit lower in 2012.
The current dividend yield is 3.2% and this is higher than the 5 year median of 2.3%. It is also quite a bit higher than the 10 year median dividend yield of 1.55%. This is a dividend paying growth stocks which usually has a relatively low dividend yield, but a relatively high dividend growth.
The total return over the past 5 and 10 years was 0% and 11.7% per year, respectively. The dividend portion of this return was 2% and 2.4% respectively. The capital gain over the last 5 and 10 years was negative and 9.3%. Any money you got over the past 5 years was all dividends, but you lost it in capital gain. The dividend portion of the return over the past 10 years was 20%.
This company’s growth over the past 10 is good than over the past 5 years. 5 years growth is anemic or non-existent. Growth over the 5 and 10 years for revenues is 0% and 9% per year. Earnings per share are negative over the past 5 years and up only 7.5% over the past 10 years. However, they have had no year of earnings loss.
Cash Flow per shares over the past 5 and 10 years is 2% and 12% per year. Growth in Book Value per share is 9% and 14% per year and this one is good. There has not been much growth in number of shares outstanding, so there would not be much difference in earnings and revenues compared to earnings per share and revenues per share.
The Liquidity Ratio is often low and for 2011 it is only 0.98 and the current one for March 2012 is a bit lower at 0.96. However, they do have strong cash flow to compensate. The Debt Ratio is good and has always been and is current at 2.35. The current Leverage and Debt/Equity Ratios are good and they are low at 1.74 and 0.74.
The Return on Equity was low over the past two years and improved greatly for 2011. The 2011 ROE is 12.3% and the 5 year median is also 12.3%. The ROE based on comprehensive income confirms the good ROE on net income, coming in at 13.7% with a 5 year median of 13.7%.
This company seems to be recovering from the last recession. Analysts expect it to do even better next year, but a number of analysts are cautious. It looks to me to be a good stock. It is risky as far as dividend payers good, because it is a growth stock. Tomorrow, I will look at the price and more in depth what the analysts say.
Ensign Energy Services Inc. is an industry leader in the delivery of oilfield services in Canada, the United States and internationally. They are one of the world's leading land-based drilling and well servicing contractors serving crude oil, natural gas and geothermal operators. Its web site is here Ensign. See my spreadsheet at esi.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 do not own this stock of Ensign Energy Services (TSX-ESI), but maybe I should. This stock is on the dividend list I follow of Dividend Aristocrats (see indices). This is a great list to go to, to find stocks to investigate for possible investments.
This stock has been paying dividends since 1995 and has increased their dividends every year since then. The dividend growth over the past 5 and 10 years is 6.9% and 14.8% per year. Dividend increases have slowed since the recent crisis, but the most recent one at the end of 2011 was for 10.5%, so it would seem that management is expecting better earnings ahead. The analysts following this stock seem to concur on this.
The Dividend Payout Ratios are low on this stock with 5 year median DPRs of 28% and 16% for earnings and cash flow respectively. However, the 10 year median DPRs are even lower at 20% and 16% for earnings and cash flow. The DPRs hit a high in 2010 and have been tracking lower since then. They were 28% and 16% for earnings and cash for 2011, right on the 5 year median values and are expected to be a bit lower in 2012.
The current dividend yield is 3.2% and this is higher than the 5 year median of 2.3%. It is also quite a bit higher than the 10 year median dividend yield of 1.55%. This is a dividend paying growth stocks which usually has a relatively low dividend yield, but a relatively high dividend growth.
The total return over the past 5 and 10 years was 0% and 11.7% per year, respectively. The dividend portion of this return was 2% and 2.4% respectively. The capital gain over the last 5 and 10 years was negative and 9.3%. Any money you got over the past 5 years was all dividends, but you lost it in capital gain. The dividend portion of the return over the past 10 years was 20%.
This company’s growth over the past 10 is good than over the past 5 years. 5 years growth is anemic or non-existent. Growth over the 5 and 10 years for revenues is 0% and 9% per year. Earnings per share are negative over the past 5 years and up only 7.5% over the past 10 years. However, they have had no year of earnings loss.
Cash Flow per shares over the past 5 and 10 years is 2% and 12% per year. Growth in Book Value per share is 9% and 14% per year and this one is good. There has not been much growth in number of shares outstanding, so there would not be much difference in earnings and revenues compared to earnings per share and revenues per share.
The Liquidity Ratio is often low and for 2011 it is only 0.98 and the current one for March 2012 is a bit lower at 0.96. However, they do have strong cash flow to compensate. The Debt Ratio is good and has always been and is current at 2.35. The current Leverage and Debt/Equity Ratios are good and they are low at 1.74 and 0.74.
The Return on Equity was low over the past two years and improved greatly for 2011. The 2011 ROE is 12.3% and the 5 year median is also 12.3%. The ROE based on comprehensive income confirms the good ROE on net income, coming in at 13.7% with a 5 year median of 13.7%.
This company seems to be recovering from the last recession. Analysts expect it to do even better next year, but a number of analysts are cautious. It looks to me to be a good stock. It is risky as far as dividend payers good, because it is a growth stock. Tomorrow, I will look at the price and more in depth what the analysts say.
Ensign Energy Services Inc. is an industry leader in the delivery of oilfield services in Canada, the United States and internationally. They are one of the world's leading land-based drilling and well servicing contractors serving crude oil, natural gas and geothermal operators. Its web site is here Ensign. See my spreadsheet at esi.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, May 29, 2012
Great-West Lifeco Inc 2
I do not own this stock of Great-West Lifeco (TSX-GWO), but a do have stock in Power Financial (TSX-PWF), the parent company. As of December 31, 2011, Power Financial owns 68.2% of this company. This is my first review of this stock after the December 2011 statements have been received.
I looked at insider trading and find a bit of stock bought by a director under insider buying. There was no insider selling. In the last 3 months insider have been retaining their options and this is a positive. Not only do insiders have stock options, but they have Deferred Share Units and Executive Performance Share Units. There are an awful lot of insiders with stock options. Also Paul Desmarais is shown as having some 72% of the outstanding shares.
There are 134 institutions that hold some 6.8% of the outstanding shares. They have bought and sold shares over the past 3 months and they have sold a net of 1% of their holding during this period. However, there were more buyers than sellers. I look at this information as rather neutral.
The 5 year median low and high Price/Earnings Ratios are 12.55 and 16.34. The current price of $21.07 has a P/E Ratio of 10.13 and so this shows a current cheap stock price.
I get a Graham Price of $24.37. The current stock price of $21.07 is some 13.5% lower. The 10 year low, median and high difference between the Graham Price and the stock price is the stock price being 17%, 32% and 49% higher than the Graham price. By this measure the current stock price is cheap.
The 10 year median Price/Book Value Ratio is 2.81. The current P/B Ratio is 1.66 and only 59% of the 10 year median ratio. This low P/B Ratio points to a current cheap stock price.
The current dividend yield is 5.84%. The 5 year median dividend yield is 4.65%, a value which is 25.5% lower. This current high dividend yield also points to a cheap current stock price. (The 10 year median dividend yield is lower at just 3.02%.)
I find analysts’ recommendations of Strong Buy, Buy, Hold and Underperform. Most of the recommendations are a Hold and that is the consensus recommendation. One analyst said he lowered estimates on this company because Q1 of 2012 was weaker than he had expected. Earnings were toward the lower end of the estimates.
Information on the 1st Quarterly results are at the G&M. They did mostly better than the 1st Quarter of 2011.
One analyst with a Hold recommendation has a 12 months stock price of $25.00. The mean target price is $25.60. Here is what the National Bank Financial said about Great-West Lifeco on April 2012 . Peter Routledge thought this company was a less of a risk in the short term than other Life Insurers. Here is what Michael Goldberg, analyst at Desjardins Securities had to say about Great-West Lifeco.
Estimates have been tracking downward over the past 90 days. However, a number of analysts have also said they like this life company better than other ones. Everyone feels that the dividend is safe and it is a very good yield. The stock is cheap, but it would be a long term buy. I am holding on to the parent company’s stock of Power Financial. I expect to do well in this stock for the long term.
Great-West Lifeco is a financial services holding company with interests in the life insurance, health insurance, retirement savings, investment management and reinsurance businesses. The Corporation has operations in Canada, the United States, Europe and Asia through The Great-West Life Assurance Company, London Life Insurance Company, The Canada Life Assurance Company, Great-West Life & Annuity Insurance Company and Putnam Investments, LLC. Lifeco and are members of the Power Financial Corporation group of companies. Its web site is here Great-West Lifeco . See my spreadsheet at gwo.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 looked at insider trading and find a bit of stock bought by a director under insider buying. There was no insider selling. In the last 3 months insider have been retaining their options and this is a positive. Not only do insiders have stock options, but they have Deferred Share Units and Executive Performance Share Units. There are an awful lot of insiders with stock options. Also Paul Desmarais is shown as having some 72% of the outstanding shares.
There are 134 institutions that hold some 6.8% of the outstanding shares. They have bought and sold shares over the past 3 months and they have sold a net of 1% of their holding during this period. However, there were more buyers than sellers. I look at this information as rather neutral.
The 5 year median low and high Price/Earnings Ratios are 12.55 and 16.34. The current price of $21.07 has a P/E Ratio of 10.13 and so this shows a current cheap stock price.
I get a Graham Price of $24.37. The current stock price of $21.07 is some 13.5% lower. The 10 year low, median and high difference between the Graham Price and the stock price is the stock price being 17%, 32% and 49% higher than the Graham price. By this measure the current stock price is cheap.
The 10 year median Price/Book Value Ratio is 2.81. The current P/B Ratio is 1.66 and only 59% of the 10 year median ratio. This low P/B Ratio points to a current cheap stock price.
The current dividend yield is 5.84%. The 5 year median dividend yield is 4.65%, a value which is 25.5% lower. This current high dividend yield also points to a cheap current stock price. (The 10 year median dividend yield is lower at just 3.02%.)
I find analysts’ recommendations of Strong Buy, Buy, Hold and Underperform. Most of the recommendations are a Hold and that is the consensus recommendation. One analyst said he lowered estimates on this company because Q1 of 2012 was weaker than he had expected. Earnings were toward the lower end of the estimates.
Information on the 1st Quarterly results are at the G&M. They did mostly better than the 1st Quarter of 2011.
One analyst with a Hold recommendation has a 12 months stock price of $25.00. The mean target price is $25.60. Here is what the National Bank Financial said about Great-West Lifeco on April 2012 . Peter Routledge thought this company was a less of a risk in the short term than other Life Insurers. Here is what Michael Goldberg, analyst at Desjardins Securities had to say about Great-West Lifeco.
Estimates have been tracking downward over the past 90 days. However, a number of analysts have also said they like this life company better than other ones. Everyone feels that the dividend is safe and it is a very good yield. The stock is cheap, but it would be a long term buy. I am holding on to the parent company’s stock of Power Financial. I expect to do well in this stock for the long term.
Great-West Lifeco is a financial services holding company with interests in the life insurance, health insurance, retirement savings, investment management and reinsurance businesses. The Corporation has operations in Canada, the United States, Europe and Asia through The Great-West Life Assurance Company, London Life Insurance Company, The Canada Life Assurance Company, Great-West Life & Annuity Insurance Company and Putnam Investments, LLC. Lifeco and are members of the Power Financial Corporation group of companies. Its web site is here Great-West Lifeco . See my spreadsheet at gwo.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, May 28, 2012
Great-West Lifeco Inc
For some unknown reason, McAfee Site Advisor is showing all blogspot.ca sites as risky. If you access my site from Canada, you now get it at blogspot.ca. If you access it from the US, you get it at blogspot.com. As a blogspot.com, my site is listed as trustworthy, but as a security risk if you get the site as blogspot.ca. A while ago, Google started to use the ".ca" extension for all persons accessing BlogSpot sites from Canada as blogspot.ca.
I do not own this stock of Great-West Lifeco (TSX-GWO), but a do have stock in Power Financial, the parent company. As of December 31, 2011, Power Financial owns 68.2% of this company. This is my first review of this stock after the December 2011 statements have been received. (See Wikipedia entry. However, this entry has not been kept up to date.)
The last dividend increase for this company was in 2008 which was a 5.8% increase. A lot of insurance companies are in this position. I have tracked this company since 1994 and this is the first period of no dividend increases since then. The 5 and 10 years growth in dividends is at 5.8% and 12.2% respectively. As you can see, the company has had good dividend increases in the past.
The 5 year Dividend Payout Ratios are 70% and 25% for earnings and cash flow, respectively. The 10 year median DPRs are lower at 64% and 24%, respectively. I would suspect that the company would rather have the DPRs for earnings in the 40 to 50% range before increasing dividends.
The current dividend yield on this stock is quite good at 5.8%. This is higher than both the 5 year median dividend yield and the 10 year median dividend yield which is at 4.65 and 3%, respectively. Most analysts expect no dividend increase for 2012. Some expect a small one for 2013 in the range of 2.4%.
Over the past 5 years investors would not have earned any money. The Total Return over the past 5 years is a negative 5.3%. Dividend income is around 4.3% per year. There would have been a capital loss. The Total Return over the past 10 year is better with a positive 6.6% per year return. Dividends would be a large part of this return with them at 4.8% per year and 73% of the total return. Capital gain would have been less than 2% per year.
When you look at growth over the past 5 and 10 years, you can see then the 10 year figures are higher than the 5 year ones. This is true of a lot of companies. The 5 and 10 year growth in Revenue per Share is 1.9% and 3.8%. The growth in Earnings per Share is 0% and 12% per year. The 10 year growth is quite good for EPS.
The 5 and 10 year growth in cash flow per share is 7.3% and 8.6% per year. This is not great, but not bad either. The growth in Book Value per Share is 2.3% and 9.2% per year.
This is a financial company and it is hard to get good current assets/current liabilities figures. The Liquidity Ratio is not much important anyway for financial companies. The Debt Ratio is at 1.07, which is lower than usual for this company. The 5 and 10 year median Debt Ratios are 1.11 and 1.13. However, the assets can cover the liabilities. Cash Flow does not change the Debt Ratios significantly.
For other debt ratios, the current Leverage Debt/Equity Ratio at 20.22 and 18.86 for the end of 2011 are quite high. They are both higher than the 5 year median values of 12.05 and 10.78, respectively. The reason for the higher Ratios is the new accounting rules under which both the assets and debts increased, but the book value did not. The current debt ratios are not better; in fact they are slightly higher.
Information on the 1st Quarterly results are at the G&M.
I will not be buying this stock for the simple fact that I have a fairly large investment in Power Financial that owns some 68.2% of this company. I do have other life insurance companies. I expect that life insurance companies will gradually recover from the financial crisis of 2008, but it will take some time.
Great-West Lifeco is a financial services holding company with interests in the life insurance, health insurance, retirement savings, investment management and reinsurance businesses. The Corporation has operations in Canada, the United States, Europe and Asia through The Great-West Life Assurance Company, London Life Insurance Company, The Canada Life Assurance Company, Great-West Life & Annuity Insurance Company and Putnam Investments, LLC. Lifeco and are members of the Power Financial Corporation group of companies. Its web site is here Great-West Lifeco. See my spreadsheet at gwo.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 do not own this stock of Great-West Lifeco (TSX-GWO), but a do have stock in Power Financial, the parent company. As of December 31, 2011, Power Financial owns 68.2% of this company. This is my first review of this stock after the December 2011 statements have been received. (See Wikipedia entry. However, this entry has not been kept up to date.)
The last dividend increase for this company was in 2008 which was a 5.8% increase. A lot of insurance companies are in this position. I have tracked this company since 1994 and this is the first period of no dividend increases since then. The 5 and 10 years growth in dividends is at 5.8% and 12.2% respectively. As you can see, the company has had good dividend increases in the past.
The 5 year Dividend Payout Ratios are 70% and 25% for earnings and cash flow, respectively. The 10 year median DPRs are lower at 64% and 24%, respectively. I would suspect that the company would rather have the DPRs for earnings in the 40 to 50% range before increasing dividends.
The current dividend yield on this stock is quite good at 5.8%. This is higher than both the 5 year median dividend yield and the 10 year median dividend yield which is at 4.65 and 3%, respectively. Most analysts expect no dividend increase for 2012. Some expect a small one for 2013 in the range of 2.4%.
Over the past 5 years investors would not have earned any money. The Total Return over the past 5 years is a negative 5.3%. Dividend income is around 4.3% per year. There would have been a capital loss. The Total Return over the past 10 year is better with a positive 6.6% per year return. Dividends would be a large part of this return with them at 4.8% per year and 73% of the total return. Capital gain would have been less than 2% per year.
When you look at growth over the past 5 and 10 years, you can see then the 10 year figures are higher than the 5 year ones. This is true of a lot of companies. The 5 and 10 year growth in Revenue per Share is 1.9% and 3.8%. The growth in Earnings per Share is 0% and 12% per year. The 10 year growth is quite good for EPS.
The 5 and 10 year growth in cash flow per share is 7.3% and 8.6% per year. This is not great, but not bad either. The growth in Book Value per Share is 2.3% and 9.2% per year.
This is a financial company and it is hard to get good current assets/current liabilities figures. The Liquidity Ratio is not much important anyway for financial companies. The Debt Ratio is at 1.07, which is lower than usual for this company. The 5 and 10 year median Debt Ratios are 1.11 and 1.13. However, the assets can cover the liabilities. Cash Flow does not change the Debt Ratios significantly.
For other debt ratios, the current Leverage Debt/Equity Ratio at 20.22 and 18.86 for the end of 2011 are quite high. They are both higher than the 5 year median values of 12.05 and 10.78, respectively. The reason for the higher Ratios is the new accounting rules under which both the assets and debts increased, but the book value did not. The current debt ratios are not better; in fact they are slightly higher.
Information on the 1st Quarterly results are at the G&M.
I will not be buying this stock for the simple fact that I have a fairly large investment in Power Financial that owns some 68.2% of this company. I do have other life insurance companies. I expect that life insurance companies will gradually recover from the financial crisis of 2008, but it will take some time.
Great-West Lifeco is a financial services holding company with interests in the life insurance, health insurance, retirement savings, investment management and reinsurance businesses. The Corporation has operations in Canada, the United States, Europe and Asia through The Great-West Life Assurance Company, London Life Insurance Company, The Canada Life Assurance Company, Great-West Life & Annuity Insurance Company and Putnam Investments, LLC. Lifeco and are members of the Power Financial Corporation group of companies. Its web site is here Great-West Lifeco. See my spreadsheet at gwo.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, May 25, 2012
SNC-Lavalin Group Inc 2
I thought it might be useful to sort my dividend paying stocks by Dividend Payment Cycles. See comments blog for information on all stocks I follow. To get new Table of stocks I follow and their Dividend Payment Cycles click here.
I own this stock of SNC-Lavalin (TSX-SNC) and I had for some time. I first bought this stock in 1998. I sold some in 2008 because it had grown so much and was too high a percentage of my portfolio. I have a total return of 27.2% per year on this stock. Some 2.1% per year of this return is dividends and the rest at 25.1% per year is capital gain. Only some 7.8% per year of my return is attributable to dividends.
Over the past year there has been $7.5M of insider selling and $7.5M of net insider selling with a very minimal insider buying. However, all the selling was at the end of last year, a couple of months prior to the drop in the stock that occurred in late February 2012. Over the past month, insiders have been retaining their options and this is a good sign.
There are 130 institutions that hold 42% of the shares of this company. Over the past 3 months they are bought and sold this stock and there were net sellers of 6 (with 104 buyers and sellers). However, overall institutions have lowered their investment in this company by 3%. This is a negative. (You should not read too much into this as institutions tend to trade like a herd sometimes.)
The 5 year median low and high Price/Earnings Ratios are 14.63 and 24.93. The current P/E at 16.2 is just below the 5 year median of 20.50. This would show that the current price is reasonable.
The Graham price is $26.66 and the stock price of $39.72 is less than 1.5% higher. The10 year low, median and high difference between the Graham price and stock price is the stock price being 56%, 96% and 138% higher than the Graham price. (This is a growth stock, and so it is quite usual for the stock price to be higher than the Graham price.) This would indicate that the stock is cheap, especially since it is so close to the Graham price.
The 10 year median Price/Book Value Ratio is 5.06 and the current P/B Ratio is 2.82. The current Ratio is just 60% of the 10 year median ratio and this would point to a cheap stock price.
The 5 year median dividend yield is 1.34%. The current dividend yield is 2.22%, which is some 66% higher. This shows a cheap stock price. (10 year median dividend yield is even lower at 1.09%.)
When I look at analysts’ recommendations I find Strong Buy, Buy and Hold recommendations. There are as many Strong Buys and there are Holds. The consensus recommendation is a Buy.
Consensus 12 months price is $47.50. This implies a 21.8% total 12 month return. A Buy recommendation came with a 12 months stock price of $48.00 and this implies a 23% total 12 month return. Do not forget that most analysts consider this stock a high risk.
There are a lot of negative comments on this stock. Some analysts are worried that the company was making too much money in the Middle East and this may have to be replaced. Others are worried about the company getting new contracts. However, there are two recent G&M articles about the company getting new contracts. See SNC-Lavalin-LED joint venture awarded contract to execute EPCM services on Cobre Panama project article. Also see SNC-Lavalin/Cintra Awarded 407 East Highway Project in Ontario article.
One analyst thought that you should only buy this stock if you have a long term horizon on the stock. Another analyst said it is a great opportunity if you are looking growth over the next 1 to 3 years. Another problem the company has is that it must find a new CEO.
There was a sell off this stock because of problems the company was having. I think that these problems will be overcome and that SNC will continue to be a growth company. (Growth companies have higher P/E ratios and higher P/B Ratios.) I am probably not the only one to think this way as one site indicated that the short selling activity on this stock is low.
See dividend watchdog’s take of the dividends on this stock at his site.
My SNC stock is all currently all in my Pension account. On a long term basis, I am selling stock and moving money to my Trading account. SNC is still a stock I want for the long term. Today, I bought just 100 shares of this stock for my Trading Account. I do not have much spare cash at this point. I put money together from my Line of Credit, my ING account and cash in my trading account.
My long term goal is to move these shares from my Pension account to my Trading account. I do not need money current in my Pension account, so I can sell what I have there at a better price (hopefully). I know that the stock was lower just recently, but $39.46 is still a good price.
Now this is not your normal dividend paying stock. The dividend yield is usually quite low, but so are the Dividend Payout Ratios. This stock is a dividend paying growth stock. The growth in dividends has been great at over 20% over the past 5 and 10 years. I like a mix of low, median and high dividend payers, and a mix of low, median and high dividend growers. This stock fits nicely into what I want.
Please note that this year, the increase was only 4.8% and analysts do not expect any more for 2013. I expect dividend increases will again pick up when the company overcomes their current problems.
SNC-Lavalin are involved with engineering and construction work around the world, this includes infrastructure and Buildings; infrastructure and construction; power (nuclear, thermal, hydro etc); chemicals and petroleum; environmental projects; mining and metallurgy projects. They have offices and Canada and around the world, from Algeria to Vietnam, including Australia, Europe, Russia, Africa, Middle East, Asia, South America, USA. Its web site is here SNC. See my spreadsheet at snc.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 own this stock of SNC-Lavalin (TSX-SNC) and I had for some time. I first bought this stock in 1998. I sold some in 2008 because it had grown so much and was too high a percentage of my portfolio. I have a total return of 27.2% per year on this stock. Some 2.1% per year of this return is dividends and the rest at 25.1% per year is capital gain. Only some 7.8% per year of my return is attributable to dividends.
Over the past year there has been $7.5M of insider selling and $7.5M of net insider selling with a very minimal insider buying. However, all the selling was at the end of last year, a couple of months prior to the drop in the stock that occurred in late February 2012. Over the past month, insiders have been retaining their options and this is a good sign.
There are 130 institutions that hold 42% of the shares of this company. Over the past 3 months they are bought and sold this stock and there were net sellers of 6 (with 104 buyers and sellers). However, overall institutions have lowered their investment in this company by 3%. This is a negative. (You should not read too much into this as institutions tend to trade like a herd sometimes.)
The 5 year median low and high Price/Earnings Ratios are 14.63 and 24.93. The current P/E at 16.2 is just below the 5 year median of 20.50. This would show that the current price is reasonable.
The Graham price is $26.66 and the stock price of $39.72 is less than 1.5% higher. The10 year low, median and high difference between the Graham price and stock price is the stock price being 56%, 96% and 138% higher than the Graham price. (This is a growth stock, and so it is quite usual for the stock price to be higher than the Graham price.) This would indicate that the stock is cheap, especially since it is so close to the Graham price.
The 10 year median Price/Book Value Ratio is 5.06 and the current P/B Ratio is 2.82. The current Ratio is just 60% of the 10 year median ratio and this would point to a cheap stock price.
The 5 year median dividend yield is 1.34%. The current dividend yield is 2.22%, which is some 66% higher. This shows a cheap stock price. (10 year median dividend yield is even lower at 1.09%.)
When I look at analysts’ recommendations I find Strong Buy, Buy and Hold recommendations. There are as many Strong Buys and there are Holds. The consensus recommendation is a Buy.
Consensus 12 months price is $47.50. This implies a 21.8% total 12 month return. A Buy recommendation came with a 12 months stock price of $48.00 and this implies a 23% total 12 month return. Do not forget that most analysts consider this stock a high risk.
There are a lot of negative comments on this stock. Some analysts are worried that the company was making too much money in the Middle East and this may have to be replaced. Others are worried about the company getting new contracts. However, there are two recent G&M articles about the company getting new contracts. See SNC-Lavalin-LED joint venture awarded contract to execute EPCM services on Cobre Panama project article. Also see SNC-Lavalin/Cintra Awarded 407 East Highway Project in Ontario article.
One analyst thought that you should only buy this stock if you have a long term horizon on the stock. Another analyst said it is a great opportunity if you are looking growth over the next 1 to 3 years. Another problem the company has is that it must find a new CEO.
There was a sell off this stock because of problems the company was having. I think that these problems will be overcome and that SNC will continue to be a growth company. (Growth companies have higher P/E ratios and higher P/B Ratios.) I am probably not the only one to think this way as one site indicated that the short selling activity on this stock is low.
See dividend watchdog’s take of the dividends on this stock at his site.
My SNC stock is all currently all in my Pension account. On a long term basis, I am selling stock and moving money to my Trading account. SNC is still a stock I want for the long term. Today, I bought just 100 shares of this stock for my Trading Account. I do not have much spare cash at this point. I put money together from my Line of Credit, my ING account and cash in my trading account.
My long term goal is to move these shares from my Pension account to my Trading account. I do not need money current in my Pension account, so I can sell what I have there at a better price (hopefully). I know that the stock was lower just recently, but $39.46 is still a good price.
Now this is not your normal dividend paying stock. The dividend yield is usually quite low, but so are the Dividend Payout Ratios. This stock is a dividend paying growth stock. The growth in dividends has been great at over 20% over the past 5 and 10 years. I like a mix of low, median and high dividend payers, and a mix of low, median and high dividend growers. This stock fits nicely into what I want.
Please note that this year, the increase was only 4.8% and analysts do not expect any more for 2013. I expect dividend increases will again pick up when the company overcomes their current problems.
SNC-Lavalin are involved with engineering and construction work around the world, this includes infrastructure and Buildings; infrastructure and construction; power (nuclear, thermal, hydro etc); chemicals and petroleum; environmental projects; mining and metallurgy projects. They have offices and Canada and around the world, from Algeria to Vietnam, including Australia, Europe, Russia, Africa, Middle East, Asia, South America, USA. Its web site is here SNC. See my spreadsheet at snc.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, May 24, 2012
SNC-Lavalin Group Inc
Dividend Payment Cycles are important so you know when you will get dividends. See comments blog for information on all stocks I follow.
I own this stock of SNC-Lavalin (TSX-SNC) and I had for some time. I first bought this stock in 1998. I sold some in 2008 because it had grown so much and was too high a percentage of my portfolio. I have a total return of 27.2% per year on this stock. Some 2.1% per year of this return is dividends and the rest at 25.1% per year is capital gain. Only some 7.8% per year of my return is attributable to dividends. This is another dividend growth company.
My above return includes the recent 30% drop in stock price. The G&M has a recent article on “Don’t count SNC-Lavalin out just yet.” See G&M article. The company is missing money and there are questions about their activities in Libya. However, this company is into hundreds of countries and, unfortunately, there are a lot of badly run countries. No wonder they hit a snag. Personally, I am not much worried. I feel the company will right itself.
Dividend yield on this stock is low with a 5 year median of 1.34% and with an even lower 10 year median of 1.09%. However, the growth in dividends is great with 5 and 10 years growth at 23% and 24% per year, respectively. I have had this stock for 14 years and my dividends have grown 1000% and the yield I get on my original investment is 25.9%. This is the value of investing in companies with low dividends and high dividend increases.
However, the recent dividend increase was just 4.8% and this is the lowest increases for as long as I have held this stock. The other low was in 1998 when the increase was 5%. Total return over the past 5 and 10 years is 11.69% and 19.77% per year, respectively. The dividend portion of this total return is 1.59% and 1.9% per year and the capital gain is 10.17% and 18.15% per year, respectively. The portion of the return attributable to dividends is 13% and 8% per year.
Growth on this stock is generally quite good and usually better over the past 10 years than over the past 5 years. Revenues and earnings are the lowest in growth. Revenue per share has grown over the past 5 and 10 years at 7% and 11.9% per year, respectively. EPS has grown at the rate of 4.5% and 30% per year, respectively.
Cash flow per share growth is better at 16.8% and 17.3% per year over the past 5 and 10 years. Book Value per share has been growth at just over 15% per year for both these time periods.
Debt ratios on this company have been ok, but never great and have fluctuated. The current Liquidity Ratio is just 0.98 and the cash flow coverage is ok. The current Debt Ratio is low, but ok at 1.30. The current Leverage and Debt/Equity Ratio are rather typical for this sort of company at 4.38 and 3.37, respectively.
The Return on Equity for 2011 is 20.6% and the 5 year median is 25.1%. The ROE for comprehensive income was lower at 17.6% and the 5 year median is 22.6%. You want both these ROEs at about the same level as the ROE on comprehensive income confirms the quality of the ROE on net income. In this case, all the ROEs are very good, but there is a significant difference between the ones for 2011. On the other hand, the good range for ROE is 10% to 15% and these ROEs are higher.
I am pleased with this stock and intend to continue to hold it. It really has performed the way I have expected it to.
SNC-Lavalin are involved with engineering and construction work around the world, this includes infrastructure and Buildings; infrastructure and construction; power (nuclear, thermal, hydro etc); chemicals and petroleum; environmental projects; mining and metallurgy projects. They have offices and Canada and around the world, from Algeria to Vietnam, including Australia, Europe, Russia, Africa, Middle East, Asia, South America, USA. Its web site is here SNC. See my spreadsheet at snc.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 own this stock of SNC-Lavalin (TSX-SNC) and I had for some time. I first bought this stock in 1998. I sold some in 2008 because it had grown so much and was too high a percentage of my portfolio. I have a total return of 27.2% per year on this stock. Some 2.1% per year of this return is dividends and the rest at 25.1% per year is capital gain. Only some 7.8% per year of my return is attributable to dividends. This is another dividend growth company.
My above return includes the recent 30% drop in stock price. The G&M has a recent article on “Don’t count SNC-Lavalin out just yet.” See G&M article. The company is missing money and there are questions about their activities in Libya. However, this company is into hundreds of countries and, unfortunately, there are a lot of badly run countries. No wonder they hit a snag. Personally, I am not much worried. I feel the company will right itself.
Dividend yield on this stock is low with a 5 year median of 1.34% and with an even lower 10 year median of 1.09%. However, the growth in dividends is great with 5 and 10 years growth at 23% and 24% per year, respectively. I have had this stock for 14 years and my dividends have grown 1000% and the yield I get on my original investment is 25.9%. This is the value of investing in companies with low dividends and high dividend increases.
However, the recent dividend increase was just 4.8% and this is the lowest increases for as long as I have held this stock. The other low was in 1998 when the increase was 5%. Total return over the past 5 and 10 years is 11.69% and 19.77% per year, respectively. The dividend portion of this total return is 1.59% and 1.9% per year and the capital gain is 10.17% and 18.15% per year, respectively. The portion of the return attributable to dividends is 13% and 8% per year.
Growth on this stock is generally quite good and usually better over the past 10 years than over the past 5 years. Revenues and earnings are the lowest in growth. Revenue per share has grown over the past 5 and 10 years at 7% and 11.9% per year, respectively. EPS has grown at the rate of 4.5% and 30% per year, respectively.
Cash flow per share growth is better at 16.8% and 17.3% per year over the past 5 and 10 years. Book Value per share has been growth at just over 15% per year for both these time periods.
Debt ratios on this company have been ok, but never great and have fluctuated. The current Liquidity Ratio is just 0.98 and the cash flow coverage is ok. The current Debt Ratio is low, but ok at 1.30. The current Leverage and Debt/Equity Ratio are rather typical for this sort of company at 4.38 and 3.37, respectively.
The Return on Equity for 2011 is 20.6% and the 5 year median is 25.1%. The ROE for comprehensive income was lower at 17.6% and the 5 year median is 22.6%. You want both these ROEs at about the same level as the ROE on comprehensive income confirms the quality of the ROE on net income. In this case, all the ROEs are very good, but there is a significant difference between the ones for 2011. On the other hand, the good range for ROE is 10% to 15% and these ROEs are higher.
I am pleased with this stock and intend to continue to hold it. It really has performed the way I have expected it to.
SNC-Lavalin are involved with engineering and construction work around the world, this includes infrastructure and Buildings; infrastructure and construction; power (nuclear, thermal, hydro etc); chemicals and petroleum; environmental projects; mining and metallurgy projects. They have offices and Canada and around the world, from Algeria to Vietnam, including Australia, Europe, Russia, Africa, Middle East, Asia, South America, USA. Its web site is here SNC. See my spreadsheet at snc.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, May 23, 2012
Richelieu Hardware Ltd 2
I have updated yesterday’s blog entry. Whether you are currently making any money may depend on your point of view at comments blog.
I own this stock of Richelieu Hardware Ltd. (TSX-RCH). I first bought this stock in 2007 and then some more in 2009. Since this stock is in two separate accounts, I can see how each purchase has done. For the stock purchased in 2007, I have made a return of 7.6% per year. For the stock I purchased in 2009, I have made a return of 24.9% per year. I realized that the stock was quite low in 2009 when I bought it and that is just why I bought it then.
When I look at insider trading, I find some $1.7M of net insider selling and very little insider buying. However, $1.7M is a very small portion of the market cap of this stock (that is less than 1%). Over the past month a number of officers have purchased small number of shares via the company’s plan at $32.55 and one officer has cash in his options. Insiders have options and also Action Deferred Units and Subscription Rights Actions Deferred Units.
The CFO and officers have more options than shares. The directors may not have more options than shares, but they have lots of Deferred Units, which are a sort of option. The CEO has around 1.4M shares in this company worth around $49M.
QV Investors still seem to have shares in this company and they talk about their investment in a recent report dated January 2012. Some 22 institutions own 45% of this company. In the last 3 months they have increased their investment in this company by 15%. This is a positive.
I get 5 year median low and high Price/Earnings Ratios of 12.05 and 16.65. With the current stock price of $31.84, the current P/E ratio is 15.38 and this is between the median P/E of 14.37 and high P/E of 16.65. It shows the price is reasonable, if a bit on the high side.
I get a Graham price of $23.96 and the current stock price of $31.84 is 33% above it. The 10 year low, median and high difference between the Graham price and the stock price is the stock price being some 12.5%, 41% and 52% above the Graham price. This put the stock price between the low and median values and shows a reasonable stock price.
I get a 10 year median Price/Book Value Ratio of 2.74. The current P/B Ratio is 2.58, which is 94% of the 10 year ratio and shows a reasonable stock price. (If you are looking at this report more than a few weeks after I have published it, you can get the current P/B Ratio if you go to the Reuters stock site and use symbol of RCH.TO where it says to search for a stock. Click on the “Financials” tab to get the current P/B Ratio.)
The 5 year median dividend yield is 1.58% and the current yield at 1.51% is some 5% lower. This put stock price still in a reasonable category, but a bit on the high side.
There seems to be only a couple of analysts following this stock and the recommendations seem to be Buy and Hold, with a consensus recommendation of Buy. The Buy recommendation comes with a 12 month stock price of 35.00. The consensus 12 months stock price of $34.30 implies a total return over the next 12 months of 9.2%.
A globe and mail article calls this stock a buy-and-forget stock for conservative investors.
I will retain what I have in this company. I am not looking for a stock which has the characteristics of this stock currently, but if I was this would be a stock I would consider. It is only just over 1% of my portfolio so I do have room to buy more of it. (Stock characteristics are low dividend, good dividend increases.)
This company is a distributor, importer and manufacturer of specialty hardware and complementary products. Its products are kitchen and bathroom cabinets, furniture, and window and door. It is also involved with residential and commercial woodworking industry. It has a large customer base of hardware retailers. Its web site is here Richelieu. See my spreadsheet at rch.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 own this stock of Richelieu Hardware Ltd. (TSX-RCH). I first bought this stock in 2007 and then some more in 2009. Since this stock is in two separate accounts, I can see how each purchase has done. For the stock purchased in 2007, I have made a return of 7.6% per year. For the stock I purchased in 2009, I have made a return of 24.9% per year. I realized that the stock was quite low in 2009 when I bought it and that is just why I bought it then.
When I look at insider trading, I find some $1.7M of net insider selling and very little insider buying. However, $1.7M is a very small portion of the market cap of this stock (that is less than 1%). Over the past month a number of officers have purchased small number of shares via the company’s plan at $32.55 and one officer has cash in his options. Insiders have options and also Action Deferred Units and Subscription Rights Actions Deferred Units.
The CFO and officers have more options than shares. The directors may not have more options than shares, but they have lots of Deferred Units, which are a sort of option. The CEO has around 1.4M shares in this company worth around $49M.
QV Investors still seem to have shares in this company and they talk about their investment in a recent report dated January 2012. Some 22 institutions own 45% of this company. In the last 3 months they have increased their investment in this company by 15%. This is a positive.
I get 5 year median low and high Price/Earnings Ratios of 12.05 and 16.65. With the current stock price of $31.84, the current P/E ratio is 15.38 and this is between the median P/E of 14.37 and high P/E of 16.65. It shows the price is reasonable, if a bit on the high side.
I get a Graham price of $23.96 and the current stock price of $31.84 is 33% above it. The 10 year low, median and high difference between the Graham price and the stock price is the stock price being some 12.5%, 41% and 52% above the Graham price. This put the stock price between the low and median values and shows a reasonable stock price.
I get a 10 year median Price/Book Value Ratio of 2.74. The current P/B Ratio is 2.58, which is 94% of the 10 year ratio and shows a reasonable stock price. (If you are looking at this report more than a few weeks after I have published it, you can get the current P/B Ratio if you go to the Reuters stock site and use symbol of RCH.TO where it says to search for a stock. Click on the “Financials” tab to get the current P/B Ratio.)
The 5 year median dividend yield is 1.58% and the current yield at 1.51% is some 5% lower. This put stock price still in a reasonable category, but a bit on the high side.
There seems to be only a couple of analysts following this stock and the recommendations seem to be Buy and Hold, with a consensus recommendation of Buy. The Buy recommendation comes with a 12 month stock price of 35.00. The consensus 12 months stock price of $34.30 implies a total return over the next 12 months of 9.2%.
A globe and mail article calls this stock a buy-and-forget stock for conservative investors.
I will retain what I have in this company. I am not looking for a stock which has the characteristics of this stock currently, but if I was this would be a stock I would consider. It is only just over 1% of my portfolio so I do have room to buy more of it. (Stock characteristics are low dividend, good dividend increases.)
This company is a distributor, importer and manufacturer of specialty hardware and complementary products. Its products are kitchen and bathroom cabinets, furniture, and window and door. It is also involved with residential and commercial woodworking industry. It has a large customer base of hardware retailers. Its web site is here Richelieu. See my spreadsheet at rch.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, May 22, 2012
Richelieu Hardware Ltd
Posted blog entry on whether I am currently making any money and on dividend payers at comments blog.
I own this stock of Richelieu Hardware Ltd. (TSX-RCH). I first bought this stock in 2007 and then some more in 2009. Since this stock is in two separate accounts, I can see how each purchase has done. For the stock purchased in 2007, I have made a return of 7.6% per year. For the stock I purchased in 2009, I have made a return of 24.9% per year. I realized that the stock was quite low in 2009 when I bought it.
Over all I have made a return of 19% per year. 1.7% of my return is from dividends and 17.3% of my return is from capital gain. Only some 9% of my return is from dividend income. This purchasing also shows the value of purchasing shares over time rather all at once.
Dividends are low on this stock which has a 5 year median dividend yield of 1.58%. However, dividends in recent years have been higher than historically as the 10 year median dividend yield is lower at just 1.18%. Dividends were only started on this stock in 2002, so this stock has not been a dividend payer for long.
The stock has an inconsistent record when it comes to dividend raises. There was one year when dividends where flat and one year when they declined, but the rest had increases. The 5 and 9 year growth in dividends is quite good at 12.9% and 16.7% per year, respectively. This stock would be considered to be a dividend growth stock.
I started to following this stock initially because it was on the Investment Reporter list from MPL Communications. Their site is called Advise for Investors. They sometimes cover this stock in their Advice Hotline email for which you can get a free subscription from their site. You can get their latest advice on this stock from their site if you ask for a quote on symbol RCH, click on profile tab and then click on Advice tab.
The growth on this stock is mainly quite good, with the 10 year growth figures better than the 5 year ones. Revenues per share have grown at the rate of 8.5% and 9.6% per year over the past 5 and 10 years. EPS has grown at the rate of 6.5% and 10.7% per year over the past 5 and 10 years. Cash Flow has grown at the rate of 8.7% and 11.8% per year over past 5 and 10 years. Book Value has grown 10.3% and 13.9% per year over the past 5 and 10 years.
The debt ratios are quite good also. The Liquidity Ratio has always been very good with a current ratio of 4.20 and a 5 year median of 4.00. The Debt Ratio extremely good with a current ratio of 5.32 and a 5 year median of 5.49. The current Leverage and Debt/Equity Ratios are also good at 1.25 and 0.23, respectively.
The Return on Equity is in the good range of 10% to 15% at 14.3%. The 5 year median ROE is a bit better at 15.5%. The Return on Equity based on comprehensive income is in the same range with an ROE of 14.3% and a 5 year median value of 14.3% also.
Richelieu has also done well in their first quarter of 2012 and news is mostly good. See G&M article.
Personally, I think that a dividend paying portfolio should have stocks with a range of dividend yields. This is because low dividend yields often come with good dividend growth and good capital gain growth. This would also be a suitable stock when you are growing your stock portfolio as lower dividends mean lower taxes.
This company is a distributor, importer and manufacturer of specialty hardware and complementary products. Its products are kitchen and bathroom cabinets, furniture, and window and door. It is also involved with residential and commercial woodworking industry. It has a large customer base of hardware retailers. Its web site is here Richelieu. See my spreadsheet at rch.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 own this stock of Richelieu Hardware Ltd. (TSX-RCH). I first bought this stock in 2007 and then some more in 2009. Since this stock is in two separate accounts, I can see how each purchase has done. For the stock purchased in 2007, I have made a return of 7.6% per year. For the stock I purchased in 2009, I have made a return of 24.9% per year. I realized that the stock was quite low in 2009 when I bought it.
Over all I have made a return of 19% per year. 1.7% of my return is from dividends and 17.3% of my return is from capital gain. Only some 9% of my return is from dividend income. This purchasing also shows the value of purchasing shares over time rather all at once.
Dividends are low on this stock which has a 5 year median dividend yield of 1.58%. However, dividends in recent years have been higher than historically as the 10 year median dividend yield is lower at just 1.18%. Dividends were only started on this stock in 2002, so this stock has not been a dividend payer for long.
The stock has an inconsistent record when it comes to dividend raises. There was one year when dividends where flat and one year when they declined, but the rest had increases. The 5 and 9 year growth in dividends is quite good at 12.9% and 16.7% per year, respectively. This stock would be considered to be a dividend growth stock.
I started to following this stock initially because it was on the Investment Reporter list from MPL Communications. Their site is called Advise for Investors. They sometimes cover this stock in their Advice Hotline email for which you can get a free subscription from their site. You can get their latest advice on this stock from their site if you ask for a quote on symbol RCH, click on profile tab and then click on Advice tab.
The growth on this stock is mainly quite good, with the 10 year growth figures better than the 5 year ones. Revenues per share have grown at the rate of 8.5% and 9.6% per year over the past 5 and 10 years. EPS has grown at the rate of 6.5% and 10.7% per year over the past 5 and 10 years. Cash Flow has grown at the rate of 8.7% and 11.8% per year over past 5 and 10 years. Book Value has grown 10.3% and 13.9% per year over the past 5 and 10 years.
The debt ratios are quite good also. The Liquidity Ratio has always been very good with a current ratio of 4.20 and a 5 year median of 4.00. The Debt Ratio extremely good with a current ratio of 5.32 and a 5 year median of 5.49. The current Leverage and Debt/Equity Ratios are also good at 1.25 and 0.23, respectively.
The Return on Equity is in the good range of 10% to 15% at 14.3%. The 5 year median ROE is a bit better at 15.5%. The Return on Equity based on comprehensive income is in the same range with an ROE of 14.3% and a 5 year median value of 14.3% also.
Richelieu has also done well in their first quarter of 2012 and news is mostly good. See G&M article.
Personally, I think that a dividend paying portfolio should have stocks with a range of dividend yields. This is because low dividend yields often come with good dividend growth and good capital gain growth. This would also be a suitable stock when you are growing your stock portfolio as lower dividends mean lower taxes.
This company is a distributor, importer and manufacturer of specialty hardware and complementary products. Its products are kitchen and bathroom cabinets, furniture, and window and door. It is also involved with residential and commercial woodworking industry. It has a large customer base of hardware retailers. Its web site is here Richelieu. See my spreadsheet at rch.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, May 18, 2012
Manitoba Telecom Services Inc 2
I own this stock (TSX-MBT). I bought some of this stock for all three of my accounts of Trading, RRSP and Pension Locked-in in 2006. I was looking for a save dividend payer and TD Waterhouse was recommending it. In 2010, I was giving hope of earnings much from this stock and sold all from my Trading and Pension Accounts and some from my RRSP. I still have some in my RRSP account.
When I look at insider trading I find very, very little of insider buying and no insider selling. The insider’s not only have options, but option-like things like Rights Performance Share Units and Rights Restricted Share Units. Directors also have Rights Director Compensation Units. These new options-like vehicles seem to be replacing old options in some cases. Everyone has more options or options-like vehicles than shares. The CEO does own shares worth just under $3.4M at today’s prices. Otherwise there is not much share ownership by insiders, but there is a bit.
Some 68 companies own almost 24% of the shares in this company. Over the past 3 months they have bought and sold shares. Their ownership in shares is down by just over 9%. There were the same number of buyers and sellers. This is a bit of a negative.
I get 5 year median low and high Price/Earnings Ratios of 16.19 and 19.48. (The corresponding 10 year median values are 13.26 and 17.50). In any case, the current P/E Ratio of 13.40 on a price of $34.03 would suggest that the stock price is relatively low.
I get a Graham price of $26.16. The 10 year median low, median and high difference between the Graham price and the stock price is the stock price being 0%, 15% and 32% above the Graham Price. With the current stock price being 30% above the Graham price it would seem that the stock price is relatively high.
The 10 year median Price/Book Value Ratio is 2.05 and the current P/B Ratio is 2.84. The current ratio at 2.84 i8s some 36% higher than the 10 year median ratio and would suggest a relatively high stock price. The main reason for the relatively high stock price showing in the last two tests is because the book value has been tracking down over the past while. It has been tracking down because the company has paid out too high a portion of their earnings in dividends.
The current dividend yield is 5% and the 5 year median dividend yield is some 38% higher at 6.9%. This would also suggest a relatively high current stock price. The tests I use show mixed results, but mostly show that the stock price may be relatively high currently.
The analysts’ recommendations are all over the place, with Strong Buy, Buy, Hold, Underperform and Sell. However, the most recommendations are in the Hold category and the consensus recommendation would be a Hold. The Hold recommendations either like other Telecom stocks better, or feel that you cannot expect much beyond dividends on this stock. Only a capital gain is visualized if new telecom legislation allows in foreign companies and then it or Allstream might be sold at a profit.
One analyst has a 12 month stock price of $40 as they expect that the Allstream division will be sold after the Federal budget of June changes the rules about foreign telecom ownership. They give this stock a Strong Buy. (The loosening of the telecom market was announced on May 14th, 2012. The Federal government scrapped foreign ownership rules on carries with less than 10% of the market.)
One site gives the consensus 12 month stock price of $33.90 and another as $35.00. The first one is lower than what the price is today. Everyone expects the dividend to be safe. No one expects any dividend increases in 2012 or 2013.
Some analysts a worried that their pension plans insolvency will again become a problem in 2013. Last week a couple of analysts downgraded this stock from Buys to Holds after the company posted positive results for the first quarter and stock rose some 3%. See article in the G&M.
I think I will still look for an exit point and try to decide what I should replace this with. Maybe I should buy Ag Growth International (TSX-AFN).
This company is a full-service communications company. It serves residential and business customers in Manitoba. Their Allstream division serves national business consumers. Its web site is here Manitoba Telecom. See my spreadsheet at mbt.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 very, very little of insider buying and no insider selling. The insider’s not only have options, but option-like things like Rights Performance Share Units and Rights Restricted Share Units. Directors also have Rights Director Compensation Units. These new options-like vehicles seem to be replacing old options in some cases. Everyone has more options or options-like vehicles than shares. The CEO does own shares worth just under $3.4M at today’s prices. Otherwise there is not much share ownership by insiders, but there is a bit.
Some 68 companies own almost 24% of the shares in this company. Over the past 3 months they have bought and sold shares. Their ownership in shares is down by just over 9%. There were the same number of buyers and sellers. This is a bit of a negative.
I get 5 year median low and high Price/Earnings Ratios of 16.19 and 19.48. (The corresponding 10 year median values are 13.26 and 17.50). In any case, the current P/E Ratio of 13.40 on a price of $34.03 would suggest that the stock price is relatively low.
I get a Graham price of $26.16. The 10 year median low, median and high difference between the Graham price and the stock price is the stock price being 0%, 15% and 32% above the Graham Price. With the current stock price being 30% above the Graham price it would seem that the stock price is relatively high.
The 10 year median Price/Book Value Ratio is 2.05 and the current P/B Ratio is 2.84. The current ratio at 2.84 i8s some 36% higher than the 10 year median ratio and would suggest a relatively high stock price. The main reason for the relatively high stock price showing in the last two tests is because the book value has been tracking down over the past while. It has been tracking down because the company has paid out too high a portion of their earnings in dividends.
The current dividend yield is 5% and the 5 year median dividend yield is some 38% higher at 6.9%. This would also suggest a relatively high current stock price. The tests I use show mixed results, but mostly show that the stock price may be relatively high currently.
The analysts’ recommendations are all over the place, with Strong Buy, Buy, Hold, Underperform and Sell. However, the most recommendations are in the Hold category and the consensus recommendation would be a Hold. The Hold recommendations either like other Telecom stocks better, or feel that you cannot expect much beyond dividends on this stock. Only a capital gain is visualized if new telecom legislation allows in foreign companies and then it or Allstream might be sold at a profit.
One analyst has a 12 month stock price of $40 as they expect that the Allstream division will be sold after the Federal budget of June changes the rules about foreign telecom ownership. They give this stock a Strong Buy. (The loosening of the telecom market was announced on May 14th, 2012. The Federal government scrapped foreign ownership rules on carries with less than 10% of the market.)
One site gives the consensus 12 month stock price of $33.90 and another as $35.00. The first one is lower than what the price is today. Everyone expects the dividend to be safe. No one expects any dividend increases in 2012 or 2013.
Some analysts a worried that their pension plans insolvency will again become a problem in 2013. Last week a couple of analysts downgraded this stock from Buys to Holds after the company posted positive results for the first quarter and stock rose some 3%. See article in the G&M.
I think I will still look for an exit point and try to decide what I should replace this with. Maybe I should buy Ag Growth International (TSX-AFN).
This company is a full-service communications company. It serves residential and business customers in Manitoba. Their Allstream division serves national business consumers. Its web site is here Manitoba Telecom. See my spreadsheet at mbt.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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