On my comment blog is all about how often I am “Updating Stock Info”. See comments blog.
This company called Canadian Helicopters Group (TSX-CHL.A, CHL.B) is in the process of changing its name to HNZ Group Inc. (TSX-HNZ.A, HNZ.B) this month, July 2012. The reason for the two levels of stock is the A shares are common shares and B are variable voting shares. The B variable voting shares are for non-Canadians. I do not own this stock.
This company started out as an income trust (TSX-CHL.UN) and then changed to a corporation on December 31, 2010. The company started off with a good dividend in the 10% to 11% range. The actual dividend has only gone up 1% per year since dividends began. The stock price has risen, so the current dividend, while still good at 3.77% is a lot lower than the starting one.
The median Dividend Payout Ratio was basically good from the start with the DRP for earnings around 61% and for cash flow around 47%. The current 5 year median DPR for earnings is 52% and for cash flow is 42%. The DPR for 2011 is even lower at 29% and 19%, respectively.
A growing company needs to have a low DPR so that it has money to invest in growth. However, I personally would not be interested in this stock until they have a solid record of dividend increases.
Total return over the past 5 and 7 years is 32.56% and 19.81% per year. The dividend portion of this return is 9.14% and 6.45% per year, respectively. The capital gain portion of this return is 23.43% and 13.36% per year, respectively. Dividend income makes up 28% and 33% of the total return over the past 5 and 7 years.
Growth for this company is generally good. Revenue growth is 14% and 10% per year over the past 5 and 9 years. Revenue per share is lower at 9.4% and 7.6% per year, respectively. Earnings per Share are up 21.5% per year over the past 5 years. Cash flow is up 15.2% and 37.4% per year over the past 5 and 6 years. Book Value is up 9.8% and 8.9% per year over the past 5 and 6 years.
The debt ratios are good on this stock. The current Liquidity Ratio is 1.60 and the current Debt Ratio is 2.75. The current Leverage and Debt/Equity Ratios are 1.58 and 0.58. (See my site for further information on Debt Ratios.)
The Return on Equity has generally been quite good for this stock. The ROE for the financial year ending in 2011 is 24% and the 5 year median is 17.5%. ROE based on comprehensive income for the end of 2011 is 24% and the 5 year median is 16.3%. The similar ROEs based on comprehensive income confirm the good ROEs based on net income.
This looks to me like a good stock for investment. However, I would like to see increasing dividends before I would consider investing in this stock. Tomorrow, I will talk about what analysts say about this stock and what my tests say about the current stock price.
HNZ Group Inc. is an international provider of helicopter transportation and related support services with fixed primary operations in Canada, Australia, New Zealand and regions of Southeast Asia. The group also delivers contracted on demand support in Afghanistan and Antarctica. Its web site is here HNZ Group. See my spreadsheet at chl.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, July 5, 2012
Tuesday, July 3, 2012
Canexus Corp 2
First, there will be no blog entry tomorrow, Wednesday June 4, 2012. I will be doing other things tomorrow afternoon. I will do my next blog entry on Thursday, June 5, 2012.
On my comment blog is “Interview by the Loonie Bin Blogger”. See comments blog.
The stock, Canexus Corp. (TSX-CUS) which I will continue to review today is a stock that I do not own. This is a company that converted from an income trust (TSX-CUS.UN) to a corporation (TSX-CUS) in July 2011. They also issued shares for Canexus Limited Partnership. Consequently, there was a big increase in shares in 2011. The problem sometimes with such reorganizations is the lack of continuity in the accounting statements.
When I look at the insider trading report, I find $1.9M of insider selling and $1.5M of insider buying. Most of the insider selling is by CEO, CFO and officers of the company. Selling seems mostly to be that of options. Insiders not only have option, but have Option Bonus Rights. And, there are a lot of both these types of options outstanding.
Most of the insider buying is by directors. Directors seem to have common shares and convertible debentures. They also have Deferred Share units rather than options. However, they have a lot more shares than Deferred Share units.
There are some 31 institutions that own 52% of this company. Over the past 3 months they have had 1 new buyer. However, over the past 3 month institutions have lowered the number of share owned by 4.5%. This is a negative. Of course the problem with selling is that you never know why people are selling.
The 5 year low, median and high Price/Earnings Ratios are 15.14, 18.00 and 20.86. The current P/E at 16.47 is between the low and median ratios and shows a reasonable price.
The 10 year Price/Book Value Ratio is very low at 0.70. This means book value is below the stock price. The current one is very high at 6.46. The problem is that with the reorganization book value fell by some 83%. At the present, I would ignore this except to note it is very high.
I get a Graham price of $3.17. There are problems with this measure also because the Graham price has jumped around quite a bit. (What happens with good stocks is that it tends to rise over time.) The 10 year low, median, and high Price/Graham price ratios are 0.69, 1.00 and 1.12. The current P/Gp Ratio is, at 2.18 quite high and shows the stock price is high.
The 5 year median dividend yield is 12.61% and the current yield is 6.77%. The current yield is some 46% lower than the 5 year median and would suggest a rather high stock price.
The above is all a mixed bag as far as results go. It does not help looking at other ratios. For example, the 5 year median Price/Sales Ratio is 0.41 and the current one is 1.66 a 300% increase in the wrong direction. The Sales part of this ratio is sales per share, which because the shares have been massively increased, but the sales have not, we get a rather high P/S ratios and a very high relative P/S Ratio. If we look at Price/Cash Flow Ratio, we have a 5 year median of 9.16 and a current one of 9.16. This shows us a reasonable current stock price. This is because the Cash Flow per share has increases relative to the increase in the number of shares.
When I look at analysts’ recommendations, I find Strong Buy, Buy and Hold. The consensus recommendation would be a Buy. Analysts have been upgrading this stock over the May and June in both Target Price and recommendations.
A number of analysts like the good dividend yield of 6.7%. Although this is lower than in the past, most ex-income trust corporation have lower than in the past dividend yields. Analysts feel that the company has good growth prospects. Only one mentioned that he thought the current price might be a bit high.
The 12 months consensus stock price is $8.81. Using a current stock price of $8.08, it suggests a 12 months total return of 15.8%. That is a 9.03% increase in stock price and dividend yield of 6.77%. However, note that the stock price is up some 25% so far this year.
I really have not changed my opinion about this stock. It might have good growth going forward, but I do not like the lack of continuity in the accounting statements before and after the reorganization. I will continue to track this stock, but personally, it would be nothing I could get excited about at this point in time.
Canexus Corporation is engaged in the production of sodium chlorate and chlor-alkali products, and operates a hydrocarbon terminal. They have four plants in Canada and two at one site in Brazil. Its web site is here Canexus. See my spreadsheet at cus.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.
On my comment blog is “Interview by the Loonie Bin Blogger”. See comments blog.
The stock, Canexus Corp. (TSX-CUS) which I will continue to review today is a stock that I do not own. This is a company that converted from an income trust (TSX-CUS.UN) to a corporation (TSX-CUS) in July 2011. They also issued shares for Canexus Limited Partnership. Consequently, there was a big increase in shares in 2011. The problem sometimes with such reorganizations is the lack of continuity in the accounting statements.
When I look at the insider trading report, I find $1.9M of insider selling and $1.5M of insider buying. Most of the insider selling is by CEO, CFO and officers of the company. Selling seems mostly to be that of options. Insiders not only have option, but have Option Bonus Rights. And, there are a lot of both these types of options outstanding.
Most of the insider buying is by directors. Directors seem to have common shares and convertible debentures. They also have Deferred Share units rather than options. However, they have a lot more shares than Deferred Share units.
There are some 31 institutions that own 52% of this company. Over the past 3 months they have had 1 new buyer. However, over the past 3 month institutions have lowered the number of share owned by 4.5%. This is a negative. Of course the problem with selling is that you never know why people are selling.
The 5 year low, median and high Price/Earnings Ratios are 15.14, 18.00 and 20.86. The current P/E at 16.47 is between the low and median ratios and shows a reasonable price.
The 10 year Price/Book Value Ratio is very low at 0.70. This means book value is below the stock price. The current one is very high at 6.46. The problem is that with the reorganization book value fell by some 83%. At the present, I would ignore this except to note it is very high.
I get a Graham price of $3.17. There are problems with this measure also because the Graham price has jumped around quite a bit. (What happens with good stocks is that it tends to rise over time.) The 10 year low, median, and high Price/Graham price ratios are 0.69, 1.00 and 1.12. The current P/Gp Ratio is, at 2.18 quite high and shows the stock price is high.
The 5 year median dividend yield is 12.61% and the current yield is 6.77%. The current yield is some 46% lower than the 5 year median and would suggest a rather high stock price.
The above is all a mixed bag as far as results go. It does not help looking at other ratios. For example, the 5 year median Price/Sales Ratio is 0.41 and the current one is 1.66 a 300% increase in the wrong direction. The Sales part of this ratio is sales per share, which because the shares have been massively increased, but the sales have not, we get a rather high P/S ratios and a very high relative P/S Ratio. If we look at Price/Cash Flow Ratio, we have a 5 year median of 9.16 and a current one of 9.16. This shows us a reasonable current stock price. This is because the Cash Flow per share has increases relative to the increase in the number of shares.
When I look at analysts’ recommendations, I find Strong Buy, Buy and Hold. The consensus recommendation would be a Buy. Analysts have been upgrading this stock over the May and June in both Target Price and recommendations.
A number of analysts like the good dividend yield of 6.7%. Although this is lower than in the past, most ex-income trust corporation have lower than in the past dividend yields. Analysts feel that the company has good growth prospects. Only one mentioned that he thought the current price might be a bit high.
The 12 months consensus stock price is $8.81. Using a current stock price of $8.08, it suggests a 12 months total return of 15.8%. That is a 9.03% increase in stock price and dividend yield of 6.77%. However, note that the stock price is up some 25% so far this year.
I really have not changed my opinion about this stock. It might have good growth going forward, but I do not like the lack of continuity in the accounting statements before and after the reorganization. I will continue to track this stock, but personally, it would be nothing I could get excited about at this point in time.
Canexus Corporation is engaged in the production of sodium chlorate and chlor-alkali products, and operates a hydrocarbon terminal. They have four plants in Canada and two at one site in Brazil. Its web site is here Canexus. See my spreadsheet at cus.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 29, 2012
Canexus Corp
I do not own this stock (TSX-CUS). This stock is part of Sentry Small/Mid Cap Income Fund. It is a small cap that pays good dividends. See stocks in this fund on G&M. Sentry home site. This stock is also mentioned by Michael Decter . Michael Decter is president and CEO of LDIC Inc.
This was also a company that converted from an income trust (TSX-CUS.UN) to a corporation (TSX-CUS) in July 2011. They also bought out Canexus Limited Partnership. Consequently, there was a big increase in shares in 2011.
As an x-income trust, the dividend is still very good at 6.8%. Dividends have been inconsistent in that they decreased then in 2008, when they had an earnings loss. They have been level since that time. It looks from the spreadsheet that they decreased dividends in 2011 and increased then in 2012, but what happened is that they changed distributions timing from 12 dividends per year to 4 dividends per year.
I look at what is actually received, not what is declared. However, dividends declared in 2011 was $.55 per year as is the dividends declared in 2010 and 2012. However, as far as I can see, shareholders only got $.46 per share in 2011, but will get $.55 in 2012.
Also, like most x-income trust companies, this company has very high Dividend Payout Ratios. The 5 year median DPR for earnings is 126%and for cash flow is 102%. The DPR for earnings for 2011 was still 126%, but it is coming down. It is expected to be 112% in 2012 and 82% in 2013. The DPR for cash flow was 53% in 2012.
As far as total return goes, the 5 and 7 year returns are 7.9% and 1% per year, respectively. The problem is that the stock price has come down since this stock was issued 7 years ago. The dividends portion of total return is 9% and 7% per year over the past 5 and 7 years. Capital loss is 1% and 6% per year over the past 5 and 7 years. So basically you got to keep some of the dividends declared.
Cash Flow has at least been positive. It has not grown over the past 5 years but is down 4% per year, but is up 19% over the past 6 years. This is because 2005 (6 years ago) cash flow was low. Cash Flow was good in 2006 and 2007, but then dropped off. It is just now picking up again.
Book Value has gone down a lot. It is down 33% per year and 30% per year over the past 5 and 6 years. A big portion of this is because of large increase in shares due to the Limited Partnership buy out. Book Value went down 84% alone in 2011. However, it was also going down because when it was an income trust, it paid out more than earnings in dividends. This occurs for all income trust stocks.
The Return on Equity for 2011 is showing as 30% and this is confirmed by the ROE on comprehensive income for 2011. However, ROE, except for 2009 was very low. The 5 year median ROE is just 1.9%.
The Liquidity Ratio has always been low, but the current one at 1.41 is the highest it has even been. In the 2011 financial year it was lower 1.15, but with a strong cash flow. When this ratio is below 1.00, it means that current assets cannot cover current liabilities.
The debt ratio on this stock was very good in the past; however the current one and the one for 2011 was 1.23. With the purchase of the Limited Partnership units, debt has increased substantially. The Leverage and Debt/Equity Ratios are also very high and are currently at 5.29 and 4.29 respectively.
This stock has a very good dividend which seems sustainable. However, since we are in uncertain economic times, I would prefer to see better debt ratios and better growth. I will keep an eye on this stock and see how it does over the next couple of years. If it is a good stock, it will be also a good stock in a couple of years.
Analysts are expecting revenue and earnings to grow over the next couple of years. I would also like to see this growth and see growth in cash flow. I would say, nice dividend, but a bit risky.
Canexus Corporation is engaged in the production of sodium chlorate and chlor-alkali products, and operates a hydrocarbon terminal. They have four plants in Canada and two at one site in Brazil. Its web site is here Canexus. See my spreadsheet at cus.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 was also a company that converted from an income trust (TSX-CUS.UN) to a corporation (TSX-CUS) in July 2011. They also bought out Canexus Limited Partnership. Consequently, there was a big increase in shares in 2011.
As an x-income trust, the dividend is still very good at 6.8%. Dividends have been inconsistent in that they decreased then in 2008, when they had an earnings loss. They have been level since that time. It looks from the spreadsheet that they decreased dividends in 2011 and increased then in 2012, but what happened is that they changed distributions timing from 12 dividends per year to 4 dividends per year.
I look at what is actually received, not what is declared. However, dividends declared in 2011 was $.55 per year as is the dividends declared in 2010 and 2012. However, as far as I can see, shareholders only got $.46 per share in 2011, but will get $.55 in 2012.
Also, like most x-income trust companies, this company has very high Dividend Payout Ratios. The 5 year median DPR for earnings is 126%and for cash flow is 102%. The DPR for earnings for 2011 was still 126%, but it is coming down. It is expected to be 112% in 2012 and 82% in 2013. The DPR for cash flow was 53% in 2012.
As far as total return goes, the 5 and 7 year returns are 7.9% and 1% per year, respectively. The problem is that the stock price has come down since this stock was issued 7 years ago. The dividends portion of total return is 9% and 7% per year over the past 5 and 7 years. Capital loss is 1% and 6% per year over the past 5 and 7 years. So basically you got to keep some of the dividends declared.
Cash Flow has at least been positive. It has not grown over the past 5 years but is down 4% per year, but is up 19% over the past 6 years. This is because 2005 (6 years ago) cash flow was low. Cash Flow was good in 2006 and 2007, but then dropped off. It is just now picking up again.
Book Value has gone down a lot. It is down 33% per year and 30% per year over the past 5 and 6 years. A big portion of this is because of large increase in shares due to the Limited Partnership buy out. Book Value went down 84% alone in 2011. However, it was also going down because when it was an income trust, it paid out more than earnings in dividends. This occurs for all income trust stocks.
The Return on Equity for 2011 is showing as 30% and this is confirmed by the ROE on comprehensive income for 2011. However, ROE, except for 2009 was very low. The 5 year median ROE is just 1.9%.
The Liquidity Ratio has always been low, but the current one at 1.41 is the highest it has even been. In the 2011 financial year it was lower 1.15, but with a strong cash flow. When this ratio is below 1.00, it means that current assets cannot cover current liabilities.
The debt ratio on this stock was very good in the past; however the current one and the one for 2011 was 1.23. With the purchase of the Limited Partnership units, debt has increased substantially. The Leverage and Debt/Equity Ratios are also very high and are currently at 5.29 and 4.29 respectively.
This stock has a very good dividend which seems sustainable. However, since we are in uncertain economic times, I would prefer to see better debt ratios and better growth. I will keep an eye on this stock and see how it does over the next couple of years. If it is a good stock, it will be also a good stock in a couple of years.
Analysts are expecting revenue and earnings to grow over the next couple of years. I would also like to see this growth and see growth in cash flow. I would say, nice dividend, but a bit risky.
Canexus Corporation is engaged in the production of sodium chlorate and chlor-alkali products, and operates a hydrocarbon terminal. They have four plants in Canada and two at one site in Brazil. Its web site is here Canexus. See my spreadsheet at cus.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, June 28, 2012
Saputo Inc 2
On my comment blog, “Is Quebec losing Head Offices?” See comments blog.
I own this stock Saputo Inc. (TSX-SAP). ). I first bought this stock in 2006 and then some more, twice in 2007. To the end of May 2012, I have a return of 17.5%, with 2.24% coming from dividends and 15.26% coming from capital gain. Some 12.8% of my return is from dividends.
Over the past year the insider trading report shows 2.9M of Insider selling and net insider selling at $2.2M. The company gives out stock options, so this is not surprising. Not only do insiders have stock options, but they now have Performance Units Shares for non-directors and Participation Units for Directors.
The Saputo family owns just over 35% of the outstanding shares (Emanuele Saputo). The CFO, most officers and most directors have more options than shares. Still there are several people who own shares worth more than $1M. Saputo has been busy buying back shares on the open market. However, they seem to be only buying enough to basically cover stock options granted. The shares outstanding over the past 5 and 10 years haven’t changed.
There are 172 institutions that own 16.26% of the shares of this company. Over the last 3 months they have decreased their investment by 7%. However, over the past 10 days, they have increased their investment by 1%.
The 5 year low, median and high Price/Earnings ratios are 14.44, 18.01and 21.59. The current P/E ratio of 15.47 on a Stock price of $41.46 is between the low and median values and therefore shows a relatively reasonable stock price.
I get a Graham price of $25.26. The 10 year low, median and high Price/Graham price ratios are 1.18, 1.45 and 1.70. The current P/GP ratio of 1.64 shows relatively high stock price. However, the price is not unreasonable high.
The 10 year Price/Book Value ratio is 2.96. The current P/B Ratio is 3.92, some 32% higher. This shows a rather high current stock price.
The 5 year median dividend yield is 1.80% and the current dividend yield is 1.83%. The current is only 1.8% higher than the 5 year median. What you want is a current dividend yield above the 5 year median when you buy a stock. This shows that the current stock price is reasonable as the dividend yield is higher, but not much higher than the 5 year median dividend yield.
The 10 year median dividend yield is 1.81 and the 10 year median high dividend yield is 2.19%. The stock has seen better relative prices, but the current price is at a reasonable price by this measure.
When I look at analysts’ recommendations I find Buy, Hold and Sell. The vast majority is in the Hold category and the consensus is a Hold. The consensus 12 month’s stock price is $45.10. This implies a 10.6% total return over the next year.
One analyst said that dairy demand remains stagnant in North America with the strong milk supply keeping competitive pressures high and restricting margin expansion. However, other analysts do feel that Saputo is a solid company. This is a retail company and these things happen. Saputo recently (Q4) took a $125M goodwill impairment charge.
A couple of analysts feel that the stock price is too high currently. Certainly, these analysts do not see much in the way of future growth in this company. Buy analysts on the other hand see this as a Saputo as a great company with solid management and a decent dividend.
This stock is talked about in a G&M article called How to build a winning portfolio. See G&M article.
My stock price testing gives mixed results. It depends what you look at. With mixed results, I tend to look at the P/B Ratios and the dividend yield. These also give mixed results with the P/B Ratios showing the price as a bit high and the dividend yield showing the price reasonable. Generally, I go with the dividend yield, unless there is a good reason not to. For this stock, I would go with the dividend yield and say the price is reasonable as it is basically at a median relative price.
This is a retail stock and I bought it for diversification. I am pleased with this stock and will continue to hold my shares. I will not be buying more for the simple fact that I already have enough shares. I never let anyone stock represent too high a percentage of my portfolio.
Saputo produces, markets, and distributes a wide array of products of the utmost quality, including cheese, fluid milk, yogurt, dairy ingredients and snack-cakes. Saputo is the twelfth largest dairy processor in the world, the largest in Canada, the third largest in Argentina and among the top three cheese producers in the United States. Our products are sold in more than 50 countries under well-known brand names. Its web site is here Saputo. See my spreadsheet at sap.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 Saputo Inc. (TSX-SAP). ). I first bought this stock in 2006 and then some more, twice in 2007. To the end of May 2012, I have a return of 17.5%, with 2.24% coming from dividends and 15.26% coming from capital gain. Some 12.8% of my return is from dividends.
Over the past year the insider trading report shows 2.9M of Insider selling and net insider selling at $2.2M. The company gives out stock options, so this is not surprising. Not only do insiders have stock options, but they now have Performance Units Shares for non-directors and Participation Units for Directors.
The Saputo family owns just over 35% of the outstanding shares (Emanuele Saputo). The CFO, most officers and most directors have more options than shares. Still there are several people who own shares worth more than $1M. Saputo has been busy buying back shares on the open market. However, they seem to be only buying enough to basically cover stock options granted. The shares outstanding over the past 5 and 10 years haven’t changed.
There are 172 institutions that own 16.26% of the shares of this company. Over the last 3 months they have decreased their investment by 7%. However, over the past 10 days, they have increased their investment by 1%.
The 5 year low, median and high Price/Earnings ratios are 14.44, 18.01and 21.59. The current P/E ratio of 15.47 on a Stock price of $41.46 is between the low and median values and therefore shows a relatively reasonable stock price.
I get a Graham price of $25.26. The 10 year low, median and high Price/Graham price ratios are 1.18, 1.45 and 1.70. The current P/GP ratio of 1.64 shows relatively high stock price. However, the price is not unreasonable high.
The 10 year Price/Book Value ratio is 2.96. The current P/B Ratio is 3.92, some 32% higher. This shows a rather high current stock price.
The 5 year median dividend yield is 1.80% and the current dividend yield is 1.83%. The current is only 1.8% higher than the 5 year median. What you want is a current dividend yield above the 5 year median when you buy a stock. This shows that the current stock price is reasonable as the dividend yield is higher, but not much higher than the 5 year median dividend yield.
The 10 year median dividend yield is 1.81 and the 10 year median high dividend yield is 2.19%. The stock has seen better relative prices, but the current price is at a reasonable price by this measure.
When I look at analysts’ recommendations I find Buy, Hold and Sell. The vast majority is in the Hold category and the consensus is a Hold. The consensus 12 month’s stock price is $45.10. This implies a 10.6% total return over the next year.
One analyst said that dairy demand remains stagnant in North America with the strong milk supply keeping competitive pressures high and restricting margin expansion. However, other analysts do feel that Saputo is a solid company. This is a retail company and these things happen. Saputo recently (Q4) took a $125M goodwill impairment charge.
A couple of analysts feel that the stock price is too high currently. Certainly, these analysts do not see much in the way of future growth in this company. Buy analysts on the other hand see this as a Saputo as a great company with solid management and a decent dividend.
This stock is talked about in a G&M article called How to build a winning portfolio. See G&M article.
My stock price testing gives mixed results. It depends what you look at. With mixed results, I tend to look at the P/B Ratios and the dividend yield. These also give mixed results with the P/B Ratios showing the price as a bit high and the dividend yield showing the price reasonable. Generally, I go with the dividend yield, unless there is a good reason not to. For this stock, I would go with the dividend yield and say the price is reasonable as it is basically at a median relative price.
This is a retail stock and I bought it for diversification. I am pleased with this stock and will continue to hold my shares. I will not be buying more for the simple fact that I already have enough shares. I never let anyone stock represent too high a percentage of my portfolio.
Saputo produces, markets, and distributes a wide array of products of the utmost quality, including cheese, fluid milk, yogurt, dairy ingredients and snack-cakes. Saputo is the twelfth largest dairy processor in the world, the largest in Canada, the third largest in Argentina and among the top three cheese producers in the United States. Our products are sold in more than 50 countries under well-known brand names. Its web site is here Saputo. See my spreadsheet at sap.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, June 27, 2012
Saputo Inc
On my comment blog today, I am talking about the place companies I follow have their Head Office. See comments blog.
I own this stock (TSX-SAP). I first bought this stock in 2006 and then some more, twice in 2007. To the end of May 2012, I have a return of 17.5%, with 2.24% coming from dividends and 15.26% coming from capital gain. Some 12.8% of my return is from dividends.
This is a stock with a rather low dividend. The 5 year median dividend yield is just 1.8%. Dividend growth over the past 5 and 10 years is 13.4% and 33.8% per year. Increases have been fairly low since 2006, although last year’s increase was quite good at 18.8%.
Since the last financial year ended on March 2012, there has been no dividend increase. Usually, it is the July dividend that shows the increase, but they have announced July dividend at old rate. The analysts’ consensus on dividends is that they will be no increase until the financial year ending March 2014. They expect the next increase to be around 18%. If this is true, this would be the first time since 2001 that Saputo has not done had an annual dividend raise.
The Dividend Payout Ratio is and has always been quite good. The 5 year DPR for earnings is 33% and for cash flow is 34%. The ones for the financial year ending March 2012 were 39% and 28%, respectively. This sort of company would have a low dividend yield and low DPRs because it would need money for expansion. It would be considered a dividend growth company.
The total return under this stock over the past 5 and 10 years is at 14.8% and 11.92% per year. The dividend portion of this return is 1.97% and 1.66% per year, respectively. That is dividends made up 13.33% and 13.96% per year of the total return. The capital gain portion of the total return was 12.82% and 10.26% per year, respectively.
Growth has mostly been good for this stock. The 5 and 10 year growth in revenue per share is 7.6% and 12.5% per year, respectively. Growth in EPS is 9% and 10% per year, respectively. Growth in cash flow is 9.7% and 13.7% per year, respectively. Growth in book value is 7% and 9% per year, respectively.
Debt ratios are good to very good. The current Liquidity Ratio is 1.55. The current Debt Ratio is very good at 2.41. Both the current Leverage and Debt/Equity Ratios are quite good at 1.71 and 0.71, respectively.
The last thing to talk about is the Return on Equity. The ROE for the financial year ending in March 2012 is 18.1% and just above the good range of 10 to 15%. The 5 year median ROE is at the same place at 18.1%. The ROE based on comprehensive income confirms the very good ROE coming in at 18.6% for the financial year ending March 2012. It has a 5 year median ratio of 18.6%.
I am pleased with my investment in the company and will currently hold on to my shares. I will not be buying any more as they compose just over 6% of my portfolio.
Saputo produces, markets, and distributes a wide array of products of the utmost quality, including cheese, fluid milk, yogurt, dairy ingredients and snack-cakes. Saputo is the twelfth largest dairy processor in the world, the largest in Canada, the third largest in Argentina and among the top three cheese producers in the United States. Our products are sold in more than 50 countries under well-known brand names. Its web site is here Saputo. See my spreadsheet at sap.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 (TSX-SAP). I first bought this stock in 2006 and then some more, twice in 2007. To the end of May 2012, I have a return of 17.5%, with 2.24% coming from dividends and 15.26% coming from capital gain. Some 12.8% of my return is from dividends.
This is a stock with a rather low dividend. The 5 year median dividend yield is just 1.8%. Dividend growth over the past 5 and 10 years is 13.4% and 33.8% per year. Increases have been fairly low since 2006, although last year’s increase was quite good at 18.8%.
Since the last financial year ended on March 2012, there has been no dividend increase. Usually, it is the July dividend that shows the increase, but they have announced July dividend at old rate. The analysts’ consensus on dividends is that they will be no increase until the financial year ending March 2014. They expect the next increase to be around 18%. If this is true, this would be the first time since 2001 that Saputo has not done had an annual dividend raise.
The Dividend Payout Ratio is and has always been quite good. The 5 year DPR for earnings is 33% and for cash flow is 34%. The ones for the financial year ending March 2012 were 39% and 28%, respectively. This sort of company would have a low dividend yield and low DPRs because it would need money for expansion. It would be considered a dividend growth company.
The total return under this stock over the past 5 and 10 years is at 14.8% and 11.92% per year. The dividend portion of this return is 1.97% and 1.66% per year, respectively. That is dividends made up 13.33% and 13.96% per year of the total return. The capital gain portion of the total return was 12.82% and 10.26% per year, respectively.
Growth has mostly been good for this stock. The 5 and 10 year growth in revenue per share is 7.6% and 12.5% per year, respectively. Growth in EPS is 9% and 10% per year, respectively. Growth in cash flow is 9.7% and 13.7% per year, respectively. Growth in book value is 7% and 9% per year, respectively.
Debt ratios are good to very good. The current Liquidity Ratio is 1.55. The current Debt Ratio is very good at 2.41. Both the current Leverage and Debt/Equity Ratios are quite good at 1.71 and 0.71, respectively.
The last thing to talk about is the Return on Equity. The ROE for the financial year ending in March 2012 is 18.1% and just above the good range of 10 to 15%. The 5 year median ROE is at the same place at 18.1%. The ROE based on comprehensive income confirms the very good ROE coming in at 18.6% for the financial year ending March 2012. It has a 5 year median ratio of 18.6%.
I am pleased with my investment in the company and will currently hold on to my shares. I will not be buying any more as they compose just over 6% of my portfolio.
Saputo produces, markets, and distributes a wide array of products of the utmost quality, including cheese, fluid milk, yogurt, dairy ingredients and snack-cakes. Saputo is the twelfth largest dairy processor in the world, the largest in Canada, the third largest in Argentina and among the top three cheese producers in the United States. Our products are sold in more than 50 countries under well-known brand names. Its web site is here Saputo. See my spreadsheet at sap.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, June 26, 2012
Evertz Technologies 2
I own this stock (TSX-ET). I bought this stock in November 2011. I have a total return of 17.74% per year, with 3.81 of this return from dividends and 13.93% from capital gain. The dividends comprise of 21.5% of my total return. These values are to the end of May 2012.
According to the insider trading report, there is very minimal of insider buying and no insider selling over the past year. Looking at just the biggest insider holdings, the insider ownership comes 72%.
There are 25 institutions that own 6.41% of the outstanding stock of this company. Over the past 3 months their investment has gone up 0.8%. However, since I last looked at this stock 10 days ago, the institutional investment in this company has gone up 1.3%. These are modest amounts, but they do show confidence in this stock. However, do not forget that institutions have sold and well as bought this stock over the past 3 months.
The 5 year low, median and high Price/Earnings ratios are 11.85, 17.70 and 20.48. The current P/E ratio is 12.61 on a stock price of $12.86. This is between the low and median ratios and shows a reasonable stock price.
I get a Graham price of $9.64 and the 10 year low, median, and high Price/Graham Price Ratios are 1.36, 1.68 and 2.12. The current P/GP Ratio of 1.33 on a stock price of $12.86 shows a very good stock price because it is below the 10 year median low.
The 10 year median Price/Book Value Ratio is 4.03. The current P/B Ratio is 3.17 and only 78% of the 10 year median. When the current P/B Ratio is at 80% of less of the 10 year ratio, it means that the current stock price is very good.
The 5 year median dividend yield is 2.17% and the current one is 4.35%. The current one is double the 5 year median and shows a very good stock price. However, I think that I should point out a couple of things here. First the dividend has increased a lot since it was first issued.
The other thing is that when insiders hold a lot of shares and they have a strong balance sheet, such as the situation on this stock, the dividends may not be safe. If earnings falter, dividends could retreat until better times. I am not saying the earnings will falter and dividends will be cut. I am just saying this is a possibility.
We are in uncertain times and we may be going into another recession. I think that this is a good company and that the management will act prudentially for the long term health of this company. Analysts following this stock do not expect further dividend increases beyond $.56 for year ending April 30, 2013. (Dividends are ready up 21% from 2012).
When I look at analysts’ recommendations, I find Strong Buy, Buy, Hold and Underperform. The consensus recommendation would be a Buy. Consensus 12 months stock price is $15.50. This implies a 12 months total return of 24.88%.
In Dividends and a dollop of growth: Mix well, Ian McGugan of Number Cruncher mentions this stock at G&M. There is also a March 2012 report by Raymond Jones Ltd.
Market Watch gives a review of April 30, 2012 results, together with financial statements on their blog. The site Seeking Alpha has a February 1st article on this company called “Evertz Technologies: Potential Catalysts, A Healthy Dividend Yield”. See their site.
It would appear that the current price is relatively good. I am pleased with my investment in this company and would be probably buying more in the future when I have some cash.
Evertz Technologies Limited designs, manufactures and markets video and audio infrastructure equipment for the production, post production, broadcast and internet protocol television ("IPTV") industry. Its web site is here Evertz. See my spreadsheet at et.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.
According to the insider trading report, there is very minimal of insider buying and no insider selling over the past year. Looking at just the biggest insider holdings, the insider ownership comes 72%.
There are 25 institutions that own 6.41% of the outstanding stock of this company. Over the past 3 months their investment has gone up 0.8%. However, since I last looked at this stock 10 days ago, the institutional investment in this company has gone up 1.3%. These are modest amounts, but they do show confidence in this stock. However, do not forget that institutions have sold and well as bought this stock over the past 3 months.
The 5 year low, median and high Price/Earnings ratios are 11.85, 17.70 and 20.48. The current P/E ratio is 12.61 on a stock price of $12.86. This is between the low and median ratios and shows a reasonable stock price.
I get a Graham price of $9.64 and the 10 year low, median, and high Price/Graham Price Ratios are 1.36, 1.68 and 2.12. The current P/GP Ratio of 1.33 on a stock price of $12.86 shows a very good stock price because it is below the 10 year median low.
The 10 year median Price/Book Value Ratio is 4.03. The current P/B Ratio is 3.17 and only 78% of the 10 year median. When the current P/B Ratio is at 80% of less of the 10 year ratio, it means that the current stock price is very good.
The 5 year median dividend yield is 2.17% and the current one is 4.35%. The current one is double the 5 year median and shows a very good stock price. However, I think that I should point out a couple of things here. First the dividend has increased a lot since it was first issued.
The other thing is that when insiders hold a lot of shares and they have a strong balance sheet, such as the situation on this stock, the dividends may not be safe. If earnings falter, dividends could retreat until better times. I am not saying the earnings will falter and dividends will be cut. I am just saying this is a possibility.
We are in uncertain times and we may be going into another recession. I think that this is a good company and that the management will act prudentially for the long term health of this company. Analysts following this stock do not expect further dividend increases beyond $.56 for year ending April 30, 2013. (Dividends are ready up 21% from 2012).
When I look at analysts’ recommendations, I find Strong Buy, Buy, Hold and Underperform. The consensus recommendation would be a Buy. Consensus 12 months stock price is $15.50. This implies a 12 months total return of 24.88%.
In Dividends and a dollop of growth: Mix well, Ian McGugan of Number Cruncher mentions this stock at G&M. There is also a March 2012 report by Raymond Jones Ltd.
Market Watch gives a review of April 30, 2012 results, together with financial statements on their blog. The site Seeking Alpha has a February 1st article on this company called “Evertz Technologies: Potential Catalysts, A Healthy Dividend Yield”. See their site.
It would appear that the current price is relatively good. I am pleased with my investment in this company and would be probably buying more in the future when I have some cash.
Evertz Technologies Limited designs, manufactures and markets video and audio infrastructure equipment for the production, post production, broadcast and internet protocol television ("IPTV") industry. Its web site is here Evertz. See my spreadsheet at et.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, June 25, 2012
Evertz Technologies
I am putting up today a new, updated index spreadsheet, see comments blog.
I own this stock (TSX-ET). I bought this stock in November 2011. I have a total return of 17.74% per year, with 3.81 of this return from dividends and 13.93% from capital gain. The dividends comprise of 21.5% of my total return. These values are to the end of May 2012. The actual capital gain is 8.1%. IRR (or internal rate of return) can be a bit misleading for short periods of time. With the recent drop in price, capital gain is just 1.1%. I expect this stock to do well in the long term, but no one knows what the short term will be.
The current dividend is very good at 4.35%. This is higher than the 5 year median of 2.17%. Dividends have been increasing at the rate of 23% over the past 5 years that the company has been issuing dividends. The last dividend increases was for 16.7%. However, the total increase over the past year was 21.7%. This is because dividends were raised twice in the last financial year.
The Dividend Payout Ratio for the last 5 years is good with a median DPR of 35% for earnings and 30% for Cash Flow (using CF excluding non-cash items). However DPRs have been increasing and the values for the financial year ending in April 2012 were 57% and 40% for earnings and cash flow. The DPR for earnings is expected to be around 55% for 2013.
This stock went public in 2006. It has done well over the past 6 or 7 years that I have statistics for and not so well over the past 5 years. However, a lot of companies have not done well over the past 5 years. This is mainly because the last recession started to bit since 2010. Just as it looks like we might be coming out of the recession, it now looks like we might just be going back into another one.
Growth was great until 2009 and then it has dropped off. The 10 year revenue per share grow is at 26% per year, but the 5 year revenue per share growth is just 7.6%. The same is true for EPS which is at 56% per year over the past 10 years, but 0% over the past 5 years. Cash Flow per share is also up great over the past 10 years at 56% per year, but only at 5.7% per year over the past 5 years.
The only good growth over the past 5 years is in book value that this is up 21% per year over this period. However, the 10 year grow in book value is a lot higher at 74% per year.
This company’s insiders hold a lot of the outstanding shares. As is usual for such companies, the debt ratios are extremely good. The current Liquidity Ratio is 8.63. Not as high as last year, but right on the 5 year median. The current Debt Ratio is also very high at 8.32. Both the current Leverage and Debt/Equity Ratios are also good at 1.47 and 0.17, respectively.
The Return on Equity is also very good with one for the last financial year ending April 2012 at 20.2%. The 5 year median ROE is 20.8%. ROE has been dropping lately. The ROE using comprehensive income confirms the good ROE on net income with an ROE of 19.7%.
One of the problems in investing this stock is that the company does not publish their financial statements on their site. You have to look at news articles and sites like G&M to get financial information. G&M only shows what the financials are. Other sites provide a copy of the financial statements (sites like Hot Stocked).
Evertz Technologies Limited designs, manufactures and markets video and audio infrastructure equipment for the production, post production, broadcast and internet protocol television ("IPTV") industry. Its web site is here Evertz. See my spreadsheet at et.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 (TSX-ET). I bought this stock in November 2011. I have a total return of 17.74% per year, with 3.81 of this return from dividends and 13.93% from capital gain. The dividends comprise of 21.5% of my total return. These values are to the end of May 2012. The actual capital gain is 8.1%. IRR (or internal rate of return) can be a bit misleading for short periods of time. With the recent drop in price, capital gain is just 1.1%. I expect this stock to do well in the long term, but no one knows what the short term will be.
The current dividend is very good at 4.35%. This is higher than the 5 year median of 2.17%. Dividends have been increasing at the rate of 23% over the past 5 years that the company has been issuing dividends. The last dividend increases was for 16.7%. However, the total increase over the past year was 21.7%. This is because dividends were raised twice in the last financial year.
The Dividend Payout Ratio for the last 5 years is good with a median DPR of 35% for earnings and 30% for Cash Flow (using CF excluding non-cash items). However DPRs have been increasing and the values for the financial year ending in April 2012 were 57% and 40% for earnings and cash flow. The DPR for earnings is expected to be around 55% for 2013.
This stock went public in 2006. It has done well over the past 6 or 7 years that I have statistics for and not so well over the past 5 years. However, a lot of companies have not done well over the past 5 years. This is mainly because the last recession started to bit since 2010. Just as it looks like we might be coming out of the recession, it now looks like we might just be going back into another one.
Growth was great until 2009 and then it has dropped off. The 10 year revenue per share grow is at 26% per year, but the 5 year revenue per share growth is just 7.6%. The same is true for EPS which is at 56% per year over the past 10 years, but 0% over the past 5 years. Cash Flow per share is also up great over the past 10 years at 56% per year, but only at 5.7% per year over the past 5 years.
The only good growth over the past 5 years is in book value that this is up 21% per year over this period. However, the 10 year grow in book value is a lot higher at 74% per year.
This company’s insiders hold a lot of the outstanding shares. As is usual for such companies, the debt ratios are extremely good. The current Liquidity Ratio is 8.63. Not as high as last year, but right on the 5 year median. The current Debt Ratio is also very high at 8.32. Both the current Leverage and Debt/Equity Ratios are also good at 1.47 and 0.17, respectively.
The Return on Equity is also very good with one for the last financial year ending April 2012 at 20.2%. The 5 year median ROE is 20.8%. ROE has been dropping lately. The ROE using comprehensive income confirms the good ROE on net income with an ROE of 19.7%.
One of the problems in investing this stock is that the company does not publish their financial statements on their site. You have to look at news articles and sites like G&M to get financial information. G&M only shows what the financials are. Other sites provide a copy of the financial statements (sites like Hot Stocked).
Evertz Technologies Limited designs, manufactures and markets video and audio infrastructure equipment for the production, post production, broadcast and internet protocol television ("IPTV") industry. Its web site is here Evertz. See my spreadsheet at et.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 22, 2012
Reitmans (Canada) Ltd. 2
I do not own this stock (TSX-RET.A). I have been following this stock for some time. It is one that I picked up off of a list of good companies to invest in by The Investment Reporter. This is a MPL publication. See their site.
When I look at insider trading I find $4.4M of insider selling and net insider selling of $4.4M. There is a minimal amount of insider buying. Most of the insider selling was by officers and directors and they seem to be cashing in stock options. There was also some insider selling by the CFO and this also seemed to be cashing in stock options. This mostly occurred in January 2012 and before. There were also some stock options for May and they seemed to be retained.
Most officers and the CFO have more options than shares. Some directors also have more options than shares. I looked at the two biggest insider holds, the CEO and an Officer (Stephen Reitman) and they each hold around 5% of the outstanding shares. They have both common and Class A non-voting shares. Sherlex Investments Inc. (Reitman family) owns 50% of the common shares and 12.5% of outstanding shares. The Reitman family does control the company.
There are some 48 institutions that hold 42% of the outstanding shares of this company. Over the past 3 months they have increased their investment in this company by 4%. This is a positive.
The 5 year low, median and high Price/Earnings Ratios are 9.76, 12.97 and 16.57. The current P/E Ratio of 13.97 is close to the median so it points to the current stock price of $12.43 as higher than the median, but reasonable.
I get a Graham Price of $12.10. The 10 year low, median and high Price/Graham Price Ratios are 0.79, 1.06 and 1.38. The current P/GP is 1.03 and so a bit below the median and points to a current reasonable stock price.
The 10 year median Price/Book Value Ratio is 2.29. The current P/B Ratio is 1.70 and only 74% of the 10 year median. This low P/B Ratio points to a very good current stock price.
The 5 year median Dividend Yield is 5% and the current dividend yield is 6.44%. The current year is some 28% higher than the 5 year median and also points to a good current stock price. The 10 year median high dividend yield is 3.78%. Recent dividend yields have been higher than usual lately, especially since 2009.
When I look at analysts’ recommendations I find Buy and Hold recommendations. There are mostly hold recommendations and the consensus recommendation would be a Hold. With the Hold recommendation the 12 month stock price is $14.30. This implies a 21.48% total return over the next 12 months. Analysts all seem to mention that retail is a tough place to be currently. The dividend is thought to be very good.
There is an article in G&M about how Reitmans will be challenged to keep growing. See G&M. These head winds include competition, high cotton prices and Canadians with less money to spend.
Analysts think that the dividend is safe. My dividend records go back to 1995. They have not lowered dividends in the past, but have kept them steady for a number of years at a time. Their balance sheet is strong, so they have the ability to weather any coming bad times.
I think that we are probably heading into another recession and this will cause problems for retailers. The dividend yield is very good on this stock and you would be paid some 6.4% to hold this stock. However, the price of the stock is reasonable rather than cheap. If we head into another bear market and recession it could probably be picked up cheaper in the future, but who knows for sure. It is a calculated risk.
Reitmans (Canada) Limited operates a network of clothing stores specializing in women's & men's fashions and accessories. The company operates stores under the names Reitmans, Smart Set, Pennington Superstores, RW & Co., Thyme Maternity, Addition-Elle, and Cassis. Its web site is here Reitmans. See my spreadsheet at ret.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 $4.4M of insider selling and net insider selling of $4.4M. There is a minimal amount of insider buying. Most of the insider selling was by officers and directors and they seem to be cashing in stock options. There was also some insider selling by the CFO and this also seemed to be cashing in stock options. This mostly occurred in January 2012 and before. There were also some stock options for May and they seemed to be retained.
Most officers and the CFO have more options than shares. Some directors also have more options than shares. I looked at the two biggest insider holds, the CEO and an Officer (Stephen Reitman) and they each hold around 5% of the outstanding shares. They have both common and Class A non-voting shares. Sherlex Investments Inc. (Reitman family) owns 50% of the common shares and 12.5% of outstanding shares. The Reitman family does control the company.
There are some 48 institutions that hold 42% of the outstanding shares of this company. Over the past 3 months they have increased their investment in this company by 4%. This is a positive.
The 5 year low, median and high Price/Earnings Ratios are 9.76, 12.97 and 16.57. The current P/E Ratio of 13.97 is close to the median so it points to the current stock price of $12.43 as higher than the median, but reasonable.
I get a Graham Price of $12.10. The 10 year low, median and high Price/Graham Price Ratios are 0.79, 1.06 and 1.38. The current P/GP is 1.03 and so a bit below the median and points to a current reasonable stock price.
The 10 year median Price/Book Value Ratio is 2.29. The current P/B Ratio is 1.70 and only 74% of the 10 year median. This low P/B Ratio points to a very good current stock price.
The 5 year median Dividend Yield is 5% and the current dividend yield is 6.44%. The current year is some 28% higher than the 5 year median and also points to a good current stock price. The 10 year median high dividend yield is 3.78%. Recent dividend yields have been higher than usual lately, especially since 2009.
When I look at analysts’ recommendations I find Buy and Hold recommendations. There are mostly hold recommendations and the consensus recommendation would be a Hold. With the Hold recommendation the 12 month stock price is $14.30. This implies a 21.48% total return over the next 12 months. Analysts all seem to mention that retail is a tough place to be currently. The dividend is thought to be very good.
There is an article in G&M about how Reitmans will be challenged to keep growing. See G&M. These head winds include competition, high cotton prices and Canadians with less money to spend.
Analysts think that the dividend is safe. My dividend records go back to 1995. They have not lowered dividends in the past, but have kept them steady for a number of years at a time. Their balance sheet is strong, so they have the ability to weather any coming bad times.
I think that we are probably heading into another recession and this will cause problems for retailers. The dividend yield is very good on this stock and you would be paid some 6.4% to hold this stock. However, the price of the stock is reasonable rather than cheap. If we head into another bear market and recession it could probably be picked up cheaper in the future, but who knows for sure. It is a calculated risk.
Reitmans (Canada) Limited operates a network of clothing stores specializing in women's & men's fashions and accessories. The company operates stores under the names Reitmans, Smart Set, Pennington Superstores, RW & Co., Thyme Maternity, Addition-Elle, and Cassis. Its web site is here Reitmans. See my spreadsheet at ret.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, June 21, 2012
Reitmans (Canada) Ltd.
Want to be a better investor? Take responsibility for your investments. See comments blog.
I do not own this stock (TSX-RET.A). I have been following this stock for some time. It is one that I picked up off of a list of good companies to invest in by The Investment Reporter. This is a MPL publication. See their site. This is a great newsletter for an investor just starting out.
This is great Canadian dividend paying stock. Their 5 year median dividend yield is 5%. The 5 and 10 years growth in dividends is at 6.6% and 23% per year. Dividend increases have really slowed down lately. They, as have all retail companies, have been hit by the latest recession. They also did not increase their dividends in the financial year ending in January 2012. The last dividend increase in 2011 was an 11% increase.
Dividend Payout Ratios are good with 5 year median Ratios of 60.47% for earnings and 35.14% for cash flow. The DPRs peaked in 2012 at 111% for earnings and 54% for cash flow. The DPR for earnings is expected to be around 90% for 2013. (The financial years end in January each year so the last financial report was dated January 2012.)
The total returns over the past 5 years were a negative 4.83% per year. This was ameliorated by dividends of 3.85% per year. The capital loss was at 8.68%. However, the 10 year returns are quite good at 23% per year, with dividends accounting for 6.62% of the return per year and 29% of the total returns per year. The capital gain was 16.46% per year.
On this stock, all the 10 year growth rates are much better than the 5 year growth rates. Unfortunately, this is true of a lot of our companies. The last 5 years have been tough ones for a lot of companies, especially those in retail.
Revenues are up 0% and 6% per year over the past 5 and 10 years. Revenues per share are up 1.2% and 6.6% per year over the past 5 and 10 years. The discrepancy comes because Reitmans have been buying back stocks. Outstanding shares are down by 0.2% and 4.5% per year over the past 5 and 10 years.
Earnings per share are down by 12.6% per year over the past 5 years. The EPS is up 6% per year over the past 10 years. Analysts following this stock think that earnings will grow over the next 3 years.
Cash flow is down 3% per year over the past 5 years. It is up 11.8% per year over the past 10 years. Book Value is up 4% per year over the past 5 years and up 8.6% per year over the past 10 years.
This is a company with a strong balance sheet. The current Liquidity Ratio is 3.93 and the current Debt Ratio is 4.46. Having a strong balance sheet really helps companies weather a lot of market volatility and recessions. The current Leverage and Debt/Equity Ratios are also quite good at 1.29 and 0.29. The company does not have much in the way of debt.
The Return on Equity was a bit low for the financial year ending in January 2012 at 9.6%. It did not quite make it into the good zone of 10% to 15%. However, the 5 year median ROE is very good at 16.4%. The ROE on comprehensive income coming in at 9.2% for the end of January 2012 and at 15.1% for the 5 year median rate confirms the ROE based on net income.
This has been quite a good stock for its investors. This is a retail store out of Montreal, as was Le Chateau I reviewed yesterday.
Reitmans (Canada) Limited operates a network of clothing stores specializing in women's & men's fashions and accessories. The company operates stores under the names Reitmans, Smart Set, Pennington Superstores, RW & Co., Thyme Maternity, Addition-Elle, and Cassis. Its web site is here Reitmans. See my spreadsheet at ret.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 (TSX-RET.A). I have been following this stock for some time. It is one that I picked up off of a list of good companies to invest in by The Investment Reporter. This is a MPL publication. See their site. This is a great newsletter for an investor just starting out.
This is great Canadian dividend paying stock. Their 5 year median dividend yield is 5%. The 5 and 10 years growth in dividends is at 6.6% and 23% per year. Dividend increases have really slowed down lately. They, as have all retail companies, have been hit by the latest recession. They also did not increase their dividends in the financial year ending in January 2012. The last dividend increase in 2011 was an 11% increase.
Dividend Payout Ratios are good with 5 year median Ratios of 60.47% for earnings and 35.14% for cash flow. The DPRs peaked in 2012 at 111% for earnings and 54% for cash flow. The DPR for earnings is expected to be around 90% for 2013. (The financial years end in January each year so the last financial report was dated January 2012.)
The total returns over the past 5 years were a negative 4.83% per year. This was ameliorated by dividends of 3.85% per year. The capital loss was at 8.68%. However, the 10 year returns are quite good at 23% per year, with dividends accounting for 6.62% of the return per year and 29% of the total returns per year. The capital gain was 16.46% per year.
On this stock, all the 10 year growth rates are much better than the 5 year growth rates. Unfortunately, this is true of a lot of our companies. The last 5 years have been tough ones for a lot of companies, especially those in retail.
Revenues are up 0% and 6% per year over the past 5 and 10 years. Revenues per share are up 1.2% and 6.6% per year over the past 5 and 10 years. The discrepancy comes because Reitmans have been buying back stocks. Outstanding shares are down by 0.2% and 4.5% per year over the past 5 and 10 years.
Earnings per share are down by 12.6% per year over the past 5 years. The EPS is up 6% per year over the past 10 years. Analysts following this stock think that earnings will grow over the next 3 years.
Cash flow is down 3% per year over the past 5 years. It is up 11.8% per year over the past 10 years. Book Value is up 4% per year over the past 5 years and up 8.6% per year over the past 10 years.
This is a company with a strong balance sheet. The current Liquidity Ratio is 3.93 and the current Debt Ratio is 4.46. Having a strong balance sheet really helps companies weather a lot of market volatility and recessions. The current Leverage and Debt/Equity Ratios are also quite good at 1.29 and 0.29. The company does not have much in the way of debt.
The Return on Equity was a bit low for the financial year ending in January 2012 at 9.6%. It did not quite make it into the good zone of 10% to 15%. However, the 5 year median ROE is very good at 16.4%. The ROE on comprehensive income coming in at 9.2% for the end of January 2012 and at 15.1% for the 5 year median rate confirms the ROE based on net income.
This has been quite a good stock for its investors. This is a retail store out of Montreal, as was Le Chateau I reviewed yesterday.
Reitmans (Canada) Limited operates a network of clothing stores specializing in women's & men's fashions and accessories. The company operates stores under the names Reitmans, Smart Set, Pennington Superstores, RW & Co., Thyme Maternity, Addition-Elle, and Cassis. Its web site is here Reitmans. See my spreadsheet at ret.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, June 20, 2012
Le Chateau Inc. 2
I do not own this stock (TSX-CTU.A). As I said yesterday, I picked up this stock from a column Jennifer Dowty wrote in 2010 on Dividend Paying stocks. The title of the article in Investor’s Digest was Dividend Stocks: Buy, Hold and Collect. It was about stocks that paid dividends and special Dividends.
When I look at insider trading, I find no trading at all. Barry Gruman became an insider and bought more shares of Le Chateau in May of 2012. See Press release. As far as I can see, Barry Gruman was an analyst at First Marathon Securities Ltd. This did not have much effect on the stock.
There are still outstanding options, but except for officers, insiders have more shares than options. Gruman and the two biggest insider share holdings account for some 48% of the outstanding shares. Also, there are two levels of shares with Class B shares having multiple votes.
There are some 8 institutions that own 37% of the outstanding shares. Over the past 3 months they have reduced their shares by almost 16%.
Before the earnings loss for the financial year ending January 2012, the 5 year low, median and high P/E Ratios were 8.83, 10.86 and 12.89. However, you cannot get a fix on the Price/Earnings Ratios because there are no earnings. The one analyst following this stock feels earnings will be negative for the next two years.
I also cannot get a fix on the Graham price as this is partially based on earnings and again, there are none and unlikely to be any soon. For Dividend yield comparison, since they have totally cut dividend, I cannot get any sort of fix on this either.
What sort of price comparisons can I do? I can still look at the Price/Book Value Ratio. First, the 10 year median P/B Ratio is 1.74. The current P/B Ratio at 0.21 is only about 12% of that so this shows a relatively very low stock price. One good thing is that the price is below the book value as the P/B Ratio is below 1.00. A piece of bad news is that the Book Value was decreased by 5.8% between the end of financial year and the end of the 1st quarter. This is not good.
One positive value is the cash flow, so we can look at Price/CFPS. Before the recent annual period, the 5 year median P/CFPS Ratio was running at 6.89. Using the last 12 month CFPS value of $0.66, I get a current P/CFPS Ratio of 1.75 and this is low. (Or, in other words, the stock price is good.) There are three problems that I see here. One is that the 12 month cash flow is less than the cash flow for the last financial year by 21%. The next one is that the CFPS has been dropping for the last 3 years. Over this period it has dropped by 71%.
The final problem is that the company has no cash at the end of the 1st quarter. Cash at the end of the financial period ending January 2012 was $7M and at the end of the 1st quarter it is a negative $14M. The company seems to be rapidly going through money. They have to raise money and they have. As at April 28, 2012, the Company had a 3-year committed asset based credit facility of $70.0 million as well as an import line of credit of $25.0 million.
So, the company has assets and they still have cash flow. They have been able to raise cash via debt for the next 3 years. Can they turn the company around in this period of time? The company feels that they can and insiders are motivated by the fact they own a lot of shares in this company.
I can only find one analysts that follows this stock. The recommendation was changed from a Hold to a Sell after the most recent quarterly report for April 2012. I see also a couple of analysts give this stock a “Don’t Buy”. The Hold rating had come with a 12 months stock price of $1.10, which is lower than the current price. The Sell recommendation comes with a 12 months stock price of $0.50.
This is a very risky stock. However, you could earn good capital gains if the stock is turned around.
Tomorrow, I will review another clothing stock of Reitmans Ltd.
Le Château is a Canadian specialty retailer and manufacturer of contemporary fashion apparel, accessories, and footwear at value pricing for style-conscious women and men of all ages. The Company has 231 retail locations, of which 227 are located in Canada and 2 in the New York City area. They also have 7 stores under license in the Middle East. Its web site is here Le Chateau. See my spreadsheet at ctu.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 no trading at all. Barry Gruman became an insider and bought more shares of Le Chateau in May of 2012. See Press release. As far as I can see, Barry Gruman was an analyst at First Marathon Securities Ltd. This did not have much effect on the stock.
There are still outstanding options, but except for officers, insiders have more shares than options. Gruman and the two biggest insider share holdings account for some 48% of the outstanding shares. Also, there are two levels of shares with Class B shares having multiple votes.
There are some 8 institutions that own 37% of the outstanding shares. Over the past 3 months they have reduced their shares by almost 16%.
Before the earnings loss for the financial year ending January 2012, the 5 year low, median and high P/E Ratios were 8.83, 10.86 and 12.89. However, you cannot get a fix on the Price/Earnings Ratios because there are no earnings. The one analyst following this stock feels earnings will be negative for the next two years.
I also cannot get a fix on the Graham price as this is partially based on earnings and again, there are none and unlikely to be any soon. For Dividend yield comparison, since they have totally cut dividend, I cannot get any sort of fix on this either.
What sort of price comparisons can I do? I can still look at the Price/Book Value Ratio. First, the 10 year median P/B Ratio is 1.74. The current P/B Ratio at 0.21 is only about 12% of that so this shows a relatively very low stock price. One good thing is that the price is below the book value as the P/B Ratio is below 1.00. A piece of bad news is that the Book Value was decreased by 5.8% between the end of financial year and the end of the 1st quarter. This is not good.
One positive value is the cash flow, so we can look at Price/CFPS. Before the recent annual period, the 5 year median P/CFPS Ratio was running at 6.89. Using the last 12 month CFPS value of $0.66, I get a current P/CFPS Ratio of 1.75 and this is low. (Or, in other words, the stock price is good.) There are three problems that I see here. One is that the 12 month cash flow is less than the cash flow for the last financial year by 21%. The next one is that the CFPS has been dropping for the last 3 years. Over this period it has dropped by 71%.
The final problem is that the company has no cash at the end of the 1st quarter. Cash at the end of the financial period ending January 2012 was $7M and at the end of the 1st quarter it is a negative $14M. The company seems to be rapidly going through money. They have to raise money and they have. As at April 28, 2012, the Company had a 3-year committed asset based credit facility of $70.0 million as well as an import line of credit of $25.0 million.
So, the company has assets and they still have cash flow. They have been able to raise cash via debt for the next 3 years. Can they turn the company around in this period of time? The company feels that they can and insiders are motivated by the fact they own a lot of shares in this company.
I can only find one analysts that follows this stock. The recommendation was changed from a Hold to a Sell after the most recent quarterly report for April 2012. I see also a couple of analysts give this stock a “Don’t Buy”. The Hold rating had come with a 12 months stock price of $1.10, which is lower than the current price. The Sell recommendation comes with a 12 months stock price of $0.50.
This is a very risky stock. However, you could earn good capital gains if the stock is turned around.
Tomorrow, I will review another clothing stock of Reitmans Ltd.
Le Château is a Canadian specialty retailer and manufacturer of contemporary fashion apparel, accessories, and footwear at value pricing for style-conscious women and men of all ages. The Company has 231 retail locations, of which 227 are located in Canada and 2 in the New York City area. They also have 7 stores under license in the Middle East. Its web site is here Le Chateau. See my spreadsheet at ctu.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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