On my other blog I am today writing about buying stocks for income...continue...
I do not own this stock of Wajax Corp (TSX-WJX, OTC-WJXFF). TD Waterhouse put out a report on good dividend paying stocks to own in November 2011. This was a stock they named. I had not heard of it before, so I decided to investigate it.
When I look at insider trading I find some insider buying ($0.9M) and no insider selling. Insiders do not seem to have options per se, but they have option like vehicles called Rights Share Ownership Plan and Rights Directors' Deferred Share Unit Plan.
The CEO has shares worth $1.4M and has options worth $0.5M. The CFO has shares worth $0.8M and has options worth $0.1M. An officer has shares worth $0.3M and has options worth $0.2M. A director has some shares and has options worth $0.8M. This is just to give you an idea on insider share ownership and option values.
The 5 year low, median and high median Price/Earnings per Share Ratios are 6.75, 9.25 and 11.67. The current P/E Ratio is 11.6 based on a stock price of $34.57 and 2013 earnings of $2.98. This test suggests that the stock price is within the relatively reasonable range, but on the high side.
I get a Graham Price of $35.01. The 10 year low, median and high median Price/Graham Price Ratios are 0.64, 0.94 and 1.19. The current P/GP Ratio is 1.11 based on a stock price of $34.57. This test suggests also that the stock price is within the relatively reasonable range, but on the high side.
The 10 year median Price/Book Value per Share Ratio is 2.63. The current P/B Ratio is 2.40 based on a stock price of $34.57 and Book Value per Share of $14.38 (1st Quarter of 2013). The current ratio is 91% of the 10 year median ratio. This test suggests that the stock price is relatively reasonable.
The 5 year median dividend yield is 6.62%. The current dividend yield is 6.94%. The current dividend yield is some 4.8% higher than the 5 year median dividend yield based on a stock price of $34.57 and dividends of $2.40. This test suggests that the stock price is relatively reasonable. You like a current dividend yield higher than the 5 year median. The current dividend yield is not that much higher than the 5 year median dividend yield so this puts the stock price in the relatively reasonable range. However, you should note that the dividends have recently been lowered.
When I look at analysts' recommendations, I find Buy and Hold recommendations. Since most recommendations are a Hold, the consensus recommendation would be a Hold. The12 month stock price consensus is $34.10. This implies a 12 month total return of 5.58% with 6.94% from dividends and a capital loss of 1.36%.
G&M has an article about insiders at Wajax going bargain hunting. Another G&M article talks about this stock being cheap.
This stock depends on the oil and gas industries which have been weak for a while. While no one expects another cut to the dividends, no one also seems to expect too much to happen with this stock soon either. The most important stock tests of P/B Ratio and dividend yield show that the stock price is relatively reasonable. However, this is an industrial stock, so the risk level would be rather high. See my spreadsheet at wjx.htm.
This is the second of two parts. The first part was posted on Thursday, August 1st, 2013 and is available here.
Wajax is a leading Canadian distributor and service support provider of mobile equipment, industrial components and power systems. Reflecting a diversified exposure to the Canadian economy, Wajax has three distinct business divisions. The organization's customer base covers core sectors of the Canadian economy mining, oil and gas, forestry, construction, manufacturing, industrial processing, transportation and utilities. Its web site is here Wajax.
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 or StockTwits.
Friday, August 2, 2013
Thursday, August 1, 2013
Wajax Corp
I do not own this stock Wajax Corp (TSX-WJX, OTC-WJXFF). TD Waterhouse put out a report on good dividend paying stocks to own in November 2011. This was a stock they named. I had not heard of it before, so I decided to investigate it.
This company has a rather mixed history for dividends. Dividends were started in 2004 and the company then switched to an Income trust called Wajax Income Fund (TSX-WJX.UN) with a large increase in dividends. In 2009 they started to reduce dividends, but did not complete the conversion to a corporation until January 1, 2011.
They increased the dividends again starting in 2011. There was an increase also in 2012. However, this year, in 2013, they again decreased the dividends. This current decrease was for 25% and reduced dividends back to where they were at the end of 2011. This company has also at times issued special dividend.
Considering all the above, dividends have increased by 44% per year since 2004, over the past 8 years. Dividends are down by 4.8% per year over the past 5 years. The 5 year median Dividend Payout Ratios for earnings is at 78% and for cash flow at 67%. The DPR for earnings in 2013 is expected to be around 92%, but decreasing to 73% in 2014.
Total returns on this stock to the end of 2012 were 14.19% and 46.46% per year over the past 5 and 10 years. The capital gains portion of these returns was 4.91% and 26.44% per year. The dividend portion of these returns was at 9.29% and 20.02% per year over these periods. Current dividends are at 6.9%.
The outstanding shares of this company have increased by marginal amounts over the past 5 and 10 years. The increase in shares seems to be all attributable to stock options. The last two recessions negatively affect revenues, earnings and cash flow for this company. This is an industrial stock so this is not unexpected.
Analysts seem to expect this year, 2013, to be not as good as last year. If you look at the last 12 months including the first quarter of 2013, revenue, earnings and cash flows are all down compared to the 12 months ending in 2012.
If you look at growth in 5 year running averages over the past 5 and 10 years they are quite different from growth over the past 5 and 10 years, so I am looking at them. The growth in revenue, using 5 year running averages over the past 5 and 10 years is at 2.7% and 1.2% per year. This is rather low growth.
The growth in earnings using 5 year running averages over the past 5 and 10 years is quite different than revenue with growth at 7% and 114% per year over these periods. The growth in cash flow using 5 year running averages over the past 5 and 10 years is quite good at 11% and 12.5% per year.
The Return on Equity for the financial year ending in 2012 was 27.3%. The ROE on comprehensive income was close behind at 27%. This is very good as is the 5 year median ROE of 27.4%.
The debt ratios are all good. The current Liquidity Ratio is 2.29. This ratio has a low, but still very good 5 year median value of 1.90. The Debt Ratio is 1.54 and this ratio has an also good 5 year median value of 1.64. The current Leverage and Debt/Equity Ratios are good at 2.78 and 1.78.
It is nice to see some companies retaining the monthly dividends after switching to corporations from income trust. It would be nice to see rising dividends on this stock, but analysts do generally not expect any dividend increases for 2014. A number of old income trust companies are having difficulties in getting the dividend at the correct level when they have become corporations. I think that it would be better if this company had lower Dividend Payout Ratios.
I think this is a good company. The current dividends are still quite high at 6.9%. See my spreadsheet at wjx.htm.
This is the first of two parts. Second part will be posted on Friday, August 2nd, 2013 and will be here.
Wajax is a leading Canadian distributor and service support provider of mobile equipment, industrial components and power systems. Reflecting a diversified exposure to the Canadian economy, Wajax has three distinct business divisions. The organization's customer base covers core sectors of the Canadian economy mining, oil and gas, forestry, construction, manufacturing, industrial processing, transportation and utilities. Its web site is here Wajax.
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 or StockTwits.
This company has a rather mixed history for dividends. Dividends were started in 2004 and the company then switched to an Income trust called Wajax Income Fund (TSX-WJX.UN) with a large increase in dividends. In 2009 they started to reduce dividends, but did not complete the conversion to a corporation until January 1, 2011.
They increased the dividends again starting in 2011. There was an increase also in 2012. However, this year, in 2013, they again decreased the dividends. This current decrease was for 25% and reduced dividends back to where they were at the end of 2011. This company has also at times issued special dividend.
Considering all the above, dividends have increased by 44% per year since 2004, over the past 8 years. Dividends are down by 4.8% per year over the past 5 years. The 5 year median Dividend Payout Ratios for earnings is at 78% and for cash flow at 67%. The DPR for earnings in 2013 is expected to be around 92%, but decreasing to 73% in 2014.
Total returns on this stock to the end of 2012 were 14.19% and 46.46% per year over the past 5 and 10 years. The capital gains portion of these returns was 4.91% and 26.44% per year. The dividend portion of these returns was at 9.29% and 20.02% per year over these periods. Current dividends are at 6.9%.
The outstanding shares of this company have increased by marginal amounts over the past 5 and 10 years. The increase in shares seems to be all attributable to stock options. The last two recessions negatively affect revenues, earnings and cash flow for this company. This is an industrial stock so this is not unexpected.
Analysts seem to expect this year, 2013, to be not as good as last year. If you look at the last 12 months including the first quarter of 2013, revenue, earnings and cash flows are all down compared to the 12 months ending in 2012.
If you look at growth in 5 year running averages over the past 5 and 10 years they are quite different from growth over the past 5 and 10 years, so I am looking at them. The growth in revenue, using 5 year running averages over the past 5 and 10 years is at 2.7% and 1.2% per year. This is rather low growth.
The growth in earnings using 5 year running averages over the past 5 and 10 years is quite different than revenue with growth at 7% and 114% per year over these periods. The growth in cash flow using 5 year running averages over the past 5 and 10 years is quite good at 11% and 12.5% per year.
The Return on Equity for the financial year ending in 2012 was 27.3%. The ROE on comprehensive income was close behind at 27%. This is very good as is the 5 year median ROE of 27.4%.
The debt ratios are all good. The current Liquidity Ratio is 2.29. This ratio has a low, but still very good 5 year median value of 1.90. The Debt Ratio is 1.54 and this ratio has an also good 5 year median value of 1.64. The current Leverage and Debt/Equity Ratios are good at 2.78 and 1.78.
It is nice to see some companies retaining the monthly dividends after switching to corporations from income trust. It would be nice to see rising dividends on this stock, but analysts do generally not expect any dividend increases for 2014. A number of old income trust companies are having difficulties in getting the dividend at the correct level when they have become corporations. I think that it would be better if this company had lower Dividend Payout Ratios.
I think this is a good company. The current dividends are still quite high at 6.9%. See my spreadsheet at wjx.htm.
This is the first of two parts. Second part will be posted on Friday, August 2nd, 2013 and will be here.
Wajax is a leading Canadian distributor and service support provider of mobile equipment, industrial components and power systems. Reflecting a diversified exposure to the Canadian economy, Wajax has three distinct business divisions. The organization's customer base covers core sectors of the Canadian economy mining, oil and gas, forestry, construction, manufacturing, industrial processing, transportation and utilities. Its web site is here Wajax.
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 or StockTwits.
Wednesday, July 31, 2013
Superior Plus Corp
On my other blog I am today writing about building an Emergency Fund...continue...
I do not own this stock Superior Plus Corp (TSX-SPB, OTC-SUUIF). I started to follow this stock as it was an income trust company that was talked about in the Money Reporter from MPL Communications. This company changed to a corporation from a unit trust (TSX-SPF.UN) in 2009.
In 2011 after this company changed to a corporation, it lowered the dividend by some 63%. Since then the dividend payouts or distributions have not changed. Dividends are down by 17.5% per year and 11% per year over the past 5 and 10 years. Prior to 2011 the dividends did fluctuate, with increases some years and decreases other years.
There were 3 years of negative earnings over the past 10 years. If you add together the EPS for the last 5 years you get a negative value of $0.87. The 5 year running average EPS is a negative $0.17. If you have negative earnings, they are obviously paying out more in dividends then they are earning. The 5 year median Dividend Payout Ratio for cash flow is 76.5%.
The current Liquidity Ratio is good at 1.50, but this is an unusually high ratio for this company. The current Debt Ratio is low at 1.37. The assets can cover the liabilities, but most people want to see a better ratio and one at least at 1.50. The current Leverage and Debt/Equity Ratio are ok at 3.68 and 2.68 (not either high or low).
Revenues per Share are up over the past 5 and 10 years. Using the 5 year running averages, I get growth of 5.5% per year and 8.3% per year over these periods. Earnings are down no matter how you look at them. Cash Flows per Share are down if you look at them over the past 5 and 10 years. However, there is no growth if you use 5 year running averages over the past 5 and 10 years.
When I look at insider trading, I find $7.8M of insider selling and $1.2M of insider buying. Insiders do not have any thing called options, but they have option like vehicles called Rights Business Performance Share Units, Rights Business Restricted Share Units, Rights Performance Share Units, Rights Deferred Share Units and Rights Restricted Share Units. Insiders also own Convertible Debentures with interest rates for around 5.75% to 7.5%. There are very good rates.
The CEO has shares worth $19.2M and has options worth $2M. The CFO has shares worth $3.4M and has options worth $6.3M. An officer has shares worth $2.5M and has options worth $1.6M. A director has shares worth $0.5M and has options worth $0.3M. This is just to give you an idea on insider share ownership and option values.
When I look at analysts' recommendations, I find Buy and Hold recommendations. The consensus recommendation is a Buy recommendation. The 12 month consensus stock price is $13.10. This implies a total return of 7.28% with 4.7% from dividends and 2.58% from capital gains.
The current Price/Earnings Ratio is 12.96 which is not bad. It is close, but higher than the 5 year median high of 12.52. This is based on a stock price of $12.77 and 2013 of $0.99. However, there has been 2 years within the past 5 years that the P/E was negative, so median values may not tell you much.
I get a Graham price of $9.83. The current Price/Graham price Ratio is 1.30. The 10 year median P/GP Ratios are 0.87, 1.19 and 1.62. This put the stock price on the high side, but still in reasonable territory. The 10 year median Price/Book Value per Share Ratio is 2.36 and the current ratio is 24% higher at 2.93. This suggests that the stock price is relatively high. However, the Book Value has been declining over the past 5 and 10 years.
One analyst thought the company was a longer-term turnaround story that has a current good yield of 4.7%. A Forbes article says that looking at a chart of dividends from this company says that you cannot trust the current one to continue. A G&M article talks about this company being a turnaround story.
I still do not like it. Yes, it is paying down its debt. It may make money in the future, but it has not proven it that it can. It has been all over the place with dividends. So, who knows what it might do with dividends in the future. It may have had good reasons to change the dividends the way that it has.
However, I like the way a company like Leon's handle their dividends. If they have extra money, they pay out an extra dividend. They do not raise the based dividends unless they are sure that they can continue with them. This is a better way of handling dividends for shareholders that increasing them in good times and decreasing them when things are not so good.
Yes, it may be a turnaround story, but considering the risks, I cannot image anyone would get a good reward for the turnaround. If I go into a turnaround situation, I want the possibility of a very good return in deed. See my spreadsheet at spb.htm.
Superior Plus Corp. is a group of diversified businesses that operate within three primary divisions. Superior's Energy Services division provides distribution, wholesale procurement and related services in relation to propane, heating oil and other refined fuels throughout Canada and the North Eastern United States. Superior's Specialty Chemicals division is a leading supplier of sodium chlorate and related technology to the pulp and paper sector and a regional Midwest supplier of chloralkali and potassium based products. Superior's Construction Products Distribution division is a leading distributor of walls, ceilings and insulation products to the Canadian and United States construction industry. Its web site is here Superior Plus.
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 or StockTwits.
I do not own this stock Superior Plus Corp (TSX-SPB, OTC-SUUIF). I started to follow this stock as it was an income trust company that was talked about in the Money Reporter from MPL Communications. This company changed to a corporation from a unit trust (TSX-SPF.UN) in 2009.
In 2011 after this company changed to a corporation, it lowered the dividend by some 63%. Since then the dividend payouts or distributions have not changed. Dividends are down by 17.5% per year and 11% per year over the past 5 and 10 years. Prior to 2011 the dividends did fluctuate, with increases some years and decreases other years.
There were 3 years of negative earnings over the past 10 years. If you add together the EPS for the last 5 years you get a negative value of $0.87. The 5 year running average EPS is a negative $0.17. If you have negative earnings, they are obviously paying out more in dividends then they are earning. The 5 year median Dividend Payout Ratio for cash flow is 76.5%.
The current Liquidity Ratio is good at 1.50, but this is an unusually high ratio for this company. The current Debt Ratio is low at 1.37. The assets can cover the liabilities, but most people want to see a better ratio and one at least at 1.50. The current Leverage and Debt/Equity Ratio are ok at 3.68 and 2.68 (not either high or low).
Revenues per Share are up over the past 5 and 10 years. Using the 5 year running averages, I get growth of 5.5% per year and 8.3% per year over these periods. Earnings are down no matter how you look at them. Cash Flows per Share are down if you look at them over the past 5 and 10 years. However, there is no growth if you use 5 year running averages over the past 5 and 10 years.
When I look at insider trading, I find $7.8M of insider selling and $1.2M of insider buying. Insiders do not have any thing called options, but they have option like vehicles called Rights Business Performance Share Units, Rights Business Restricted Share Units, Rights Performance Share Units, Rights Deferred Share Units and Rights Restricted Share Units. Insiders also own Convertible Debentures with interest rates for around 5.75% to 7.5%. There are very good rates.
The CEO has shares worth $19.2M and has options worth $2M. The CFO has shares worth $3.4M and has options worth $6.3M. An officer has shares worth $2.5M and has options worth $1.6M. A director has shares worth $0.5M and has options worth $0.3M. This is just to give you an idea on insider share ownership and option values.
When I look at analysts' recommendations, I find Buy and Hold recommendations. The consensus recommendation is a Buy recommendation. The 12 month consensus stock price is $13.10. This implies a total return of 7.28% with 4.7% from dividends and 2.58% from capital gains.
The current Price/Earnings Ratio is 12.96 which is not bad. It is close, but higher than the 5 year median high of 12.52. This is based on a stock price of $12.77 and 2013 of $0.99. However, there has been 2 years within the past 5 years that the P/E was negative, so median values may not tell you much.
I get a Graham price of $9.83. The current Price/Graham price Ratio is 1.30. The 10 year median P/GP Ratios are 0.87, 1.19 and 1.62. This put the stock price on the high side, but still in reasonable territory. The 10 year median Price/Book Value per Share Ratio is 2.36 and the current ratio is 24% higher at 2.93. This suggests that the stock price is relatively high. However, the Book Value has been declining over the past 5 and 10 years.
One analyst thought the company was a longer-term turnaround story that has a current good yield of 4.7%. A Forbes article says that looking at a chart of dividends from this company says that you cannot trust the current one to continue. A G&M article talks about this company being a turnaround story.
I still do not like it. Yes, it is paying down its debt. It may make money in the future, but it has not proven it that it can. It has been all over the place with dividends. So, who knows what it might do with dividends in the future. It may have had good reasons to change the dividends the way that it has.
However, I like the way a company like Leon's handle their dividends. If they have extra money, they pay out an extra dividend. They do not raise the based dividends unless they are sure that they can continue with them. This is a better way of handling dividends for shareholders that increasing them in good times and decreasing them when things are not so good.
Yes, it may be a turnaround story, but considering the risks, I cannot image anyone would get a good reward for the turnaround. If I go into a turnaround situation, I want the possibility of a very good return in deed. See my spreadsheet at spb.htm.
Superior Plus Corp. is a group of diversified businesses that operate within three primary divisions. Superior's Energy Services division provides distribution, wholesale procurement and related services in relation to propane, heating oil and other refined fuels throughout Canada and the North Eastern United States. Superior's Specialty Chemicals division is a leading supplier of sodium chlorate and related technology to the pulp and paper sector and a regional Midwest supplier of chloralkali and potassium based products. Superior's Construction Products Distribution division is a leading distributor of walls, ceilings and insulation products to the Canadian and United States construction industry. Its web site is here Superior Plus.
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 or StockTwits.
Tuesday, July 30, 2013
Newfoundland Capital Corp 2
I do not own this stock Newfoundland Capital Corp (TSX-NCC.A, TSX-NCC.B). I started to follow this stock as it was suggested as a decent dividend paying stock for investment purposes. It is not on any dividend lists that I follow. This is probably because dividends have been inconsistent.
When I look at insiders trading, I find a small amount of insider buying and no insider selling. There are two classes of shares, the subordinate voting shares of Class A and the multiple voting shares of Class B. One officer of the company has practically all the Class B shares. There are no only options under this company but other option like vehicles called Share Appreciation Rights.
The CEO has shares worth $7.5M and has options worth $4.3M. The CFO has shares worth $0.2M and has options worth $0.2M. An officer has shares worth $0.3M and has options worth $1.4M. Another officer has shares worth $132.4M of Class A Shares and almost all the Class B shares worth $32Mand has options worth $6.4M. A director has shares worth $4 M and has options worth $0.8M. This is just to give you an idea on insider share ownership and option values.
The 5 year low, median and high median Price/Earnings per Share Ratios are 12.56, 15.81 and 19.07. The current P/E Ratio is 12.88 based on a stock price of $8.50 and 2013 earnings estimate of $0.66. By this measure the stock is relatively cheap.
I get a Graham Price of $7.86. The 10 year low, median and high median Price/Graham Price Ratios are 1.07, 1.24 and 1.41. The current P/GP Ratio is 1.08. This suggests also that the stock is relatively cheap.
The 10 year median Price/Book Value per Share Ratio is 2.08. The current ratio is 2.04 a value some 98% of the 10 year ratio. This ratio suggests that the stock price is relatively reasonable.
The current dividend yield is 2.12% and the 5 year median dividend yield is 1.66%. The current dividend yield is some 28% higher than the 5 year medina yield. This test suggests that the stock price is cheap. (Note that the 10 year median dividend yield is a bit lower at 1.61%.)
When I look at analysts' recommendations, I find only one analyst following this stock and the recommendation is a Hold. The 12 month stock price is given as $10.00 and this implies a total return of 19.76% with 2.12% from Dividends and $17.65% from capital gains. (To me the recommendation of a Hold and a 12 months total return of almost 20% do not match up. You would think that a Hold recommendation would have a much lower 12 month total return.)
If you look at the last 12 months which includes the most recent quarterly report of March 2013, compared the 12 month ending at the end of 2012, EPS are up by 14%. However, if you look at revenues and cash flow, the growth is marginal. The estimates for 2013 do show that growth in EPS would greatly outstrip growth in Revenues and Cash Flow (89% growth compared to 4.5% and 8.7% growth, respectively).
The stock price spiked over 25% in April 2013. However, I cannot find any reason for this. There is not much coverage for this stock. Above, I could only find one analysts giving this stock a rating. I find this an interesting company. You would buy it for diversifications purposes.
I cannot see why the one analyst gives this stock a Hold rating. Perhaps this is because EPS were down last year. However, EPS tend to fluctuate quite a bit for this stock. Also perhaps if you look at the P/E using last 12 month's earnings (to March 2013), the P/E would be 21.25, a relatively high P/E for this company. Also, the estimates given last year, only the Revenue estimates were close. The estimates for EPS and CFPS were quite a bit off.
However, I think that the test that is the best is the dividend yield one and this is signally a cheap price. The P/B Ratio is signaling a reasonable price and I think that these two tests are the best to use. The company has a reasonable dividend and does raise dividends, although not consistently, but dividend growth is good. The company has decent growth and the balance sheet is fine. The ROE is good. I do not see why it is not given a buy rating. See my spreadsheet at ncc.htm.
This is the second of two parts. The first part was posted on Monday, July 29th, 2013 and is available here.
Newfoundland Capital Corporation Limited also owns and operates Newcap Radio. Newcap Radio is one of Canada's leading radio broadcasters with 79 licenses across Canada. The Company reaches millions of listeners each week through a variety of formats and is a recognized industry leader in radio programming, sales and networking. The Company has 58 FM and 21 AM licenses spanning the country employing over 800 radio professionals in Canada. Newfoundland Capital Corporation Limited also owns and operates the Glynmill Inn, Corner Brook, Newfoundland and Labrador. Its web site is here Newfoundland Capital Corp.
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 or StockTwits.
When I look at insiders trading, I find a small amount of insider buying and no insider selling. There are two classes of shares, the subordinate voting shares of Class A and the multiple voting shares of Class B. One officer of the company has practically all the Class B shares. There are no only options under this company but other option like vehicles called Share Appreciation Rights.
The CEO has shares worth $7.5M and has options worth $4.3M. The CFO has shares worth $0.2M and has options worth $0.2M. An officer has shares worth $0.3M and has options worth $1.4M. Another officer has shares worth $132.4M of Class A Shares and almost all the Class B shares worth $32Mand has options worth $6.4M. A director has shares worth $4 M and has options worth $0.8M. This is just to give you an idea on insider share ownership and option values.
The 5 year low, median and high median Price/Earnings per Share Ratios are 12.56, 15.81 and 19.07. The current P/E Ratio is 12.88 based on a stock price of $8.50 and 2013 earnings estimate of $0.66. By this measure the stock is relatively cheap.
I get a Graham Price of $7.86. The 10 year low, median and high median Price/Graham Price Ratios are 1.07, 1.24 and 1.41. The current P/GP Ratio is 1.08. This suggests also that the stock is relatively cheap.
The 10 year median Price/Book Value per Share Ratio is 2.08. The current ratio is 2.04 a value some 98% of the 10 year ratio. This ratio suggests that the stock price is relatively reasonable.
The current dividend yield is 2.12% and the 5 year median dividend yield is 1.66%. The current dividend yield is some 28% higher than the 5 year medina yield. This test suggests that the stock price is cheap. (Note that the 10 year median dividend yield is a bit lower at 1.61%.)
When I look at analysts' recommendations, I find only one analyst following this stock and the recommendation is a Hold. The 12 month stock price is given as $10.00 and this implies a total return of 19.76% with 2.12% from Dividends and $17.65% from capital gains. (To me the recommendation of a Hold and a 12 months total return of almost 20% do not match up. You would think that a Hold recommendation would have a much lower 12 month total return.)
If you look at the last 12 months which includes the most recent quarterly report of March 2013, compared the 12 month ending at the end of 2012, EPS are up by 14%. However, if you look at revenues and cash flow, the growth is marginal. The estimates for 2013 do show that growth in EPS would greatly outstrip growth in Revenues and Cash Flow (89% growth compared to 4.5% and 8.7% growth, respectively).
The stock price spiked over 25% in April 2013. However, I cannot find any reason for this. There is not much coverage for this stock. Above, I could only find one analysts giving this stock a rating. I find this an interesting company. You would buy it for diversifications purposes.
I cannot see why the one analyst gives this stock a Hold rating. Perhaps this is because EPS were down last year. However, EPS tend to fluctuate quite a bit for this stock. Also perhaps if you look at the P/E using last 12 month's earnings (to March 2013), the P/E would be 21.25, a relatively high P/E for this company. Also, the estimates given last year, only the Revenue estimates were close. The estimates for EPS and CFPS were quite a bit off.
However, I think that the test that is the best is the dividend yield one and this is signally a cheap price. The P/B Ratio is signaling a reasonable price and I think that these two tests are the best to use. The company has a reasonable dividend and does raise dividends, although not consistently, but dividend growth is good. The company has decent growth and the balance sheet is fine. The ROE is good. I do not see why it is not given a buy rating. See my spreadsheet at ncc.htm.
This is the second of two parts. The first part was posted on Monday, July 29th, 2013 and is available here.
Newfoundland Capital Corporation Limited also owns and operates Newcap Radio. Newcap Radio is one of Canada's leading radio broadcasters with 79 licenses across Canada. The Company reaches millions of listeners each week through a variety of formats and is a recognized industry leader in radio programming, sales and networking. The Company has 58 FM and 21 AM licenses spanning the country employing over 800 radio professionals in Canada. Newfoundland Capital Corporation Limited also owns and operates the Glynmill Inn, Corner Brook, Newfoundland and Labrador. Its web site is here Newfoundland Capital Corp.
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 or StockTwits.
Monday, July 29, 2013
Newfoundland Capital Corp
On my other blog I am today writing about why people should have an Emergency Fund...continue...
I do not own this stock Newfoundland Capital Corp (TSX-NCC.A, TSX-NCC.B). I started to follow this stock as it was suggested as a decent dividend paying stock for investment purposes. It is not on any dividend lists that I follow. This is probably because dividends have been inconsistent.
As far as I can see, they started paying dividends in 1997, but then paid none between 2000 and 2002, inclusive. Dividends were restarted in 2003. The growth in dividends over the past 5 and 9 years is 12.5% and 20.6% per year. However, a lot of years did not have dividend increases. The most recent dividend increase was in 2011 for a 50% increase. There has been no increase since.
The Dividend Payout Ratios are good, with the 5 year median DPR for earnings at 22.2% and the DPR for cash flow at 21.7%. The DPR for 2012 was almost 52%, but this is expected to move down to 27% in 2013. Some analysts expect slight dividend increases in 2014 or 2015. The current dividend yield is 2.12% and the 5 year median is 1.66%.
Investors of this stock have done well over the past 5 and 10 years with total returns at 8.87% and 14.23% per year over these periods. The dividend portion of these returns is at 1.66% and 1.92% per year, respectively and the capital gain portion is at 7.21% and 12.81% per year, respectively.
Outstanding shares have declined over the past 5 and 10 years at the rate of 2.6% and 1.8% per year. The decline has been in the Class A shares, which are subordinate voting shares. Class B shares are multiple voting shares. Shares have increased due to stock options and decreased due to Buy Backs. Mostly, the 5 year running growth over the past 5 and 10 years has been better than the 5 and 10 year growth.
Revenue has grown at 5.8% per year and 9.7% per year over the past 5 and 10 years. Revenue per Share has grown at 8.7% and 10.7% per year over the past 5 and 10 years. The 5 and 10 years growth using 5 year running averages is similar. Growth in Revenue has been rather smooth.
There is a big difference in the 5 year running growth of EPS over the past 5 and 10 years compared to the 5 and 10 year growth. The 5 and 10 year 5 year running growth in EPS is at 3% and 17% per year over the past 5 and 10 years. EPS over the past 5 years is down by 10% per year and over the past 10 years up by 3.4% per year. Earnings do fluctuate year by year.
Cash Flow per Share has grown over the past 5 and 10 years no matter how you measure it. The CFPS growth over the past 5 and 10 years is at 16.4% and 7.4% per year, respectively. If you look at the 5 year running average growth over the past 5 and 10 years, you get growth at 12% and 10% per year, respectively.
Return on Equity has fluctuated over the years and the 5 year median ROE is just over 10% at 10.5%. The ROE for 2012 financial year is 9.1%. The ROE based on Comprehensive Income is better at 10.1%, a value 10% high than the ROE based on net income. This is a positive.
The Liquidity Ratio is low coming in at just 0.97. This means that current assets cannot cover current liabilities. It needs the cash flow to move this ratio into decent territory and it is still rather low at 1.44. The Debt Ratio is much better at 2.05. The Leverage and Debt/Equity Ratios are low and therefore quite good at 1.95 and 0.95.
You would buy this stock for diversification purposes. You would have to be able to put up with fluctuating earnings, but you might get some very good dividend yields on your initial purchase price over the longer term. Also, dividends are only paid semi-annually, not in the general quarterly manner. See my spreadsheet at ncc.htm.
This is the first of two parts. Second part will be posted on Tuesday, July 30th, 2013 and will be here.
Newfoundland Capital Corporation Limited also owns and operates Newcap Radio. Newcap Radio is one of Canada's leading radio broadcasters with 79 licenses across Canada. The Company reaches millions of listeners each week through a variety of formats and is a recognized industry leader in radio programming, sales and networking. The Company has 58 FM and 21 AM licenses spanning the country employing over 800 radio professionals in Canada. Newfoundland Capital Corporation Limited also owns and operates the Glynmill Inn, Corner Brook, Newfoundland and Labrador. Its web site is here Newfoundland Capital Corp.
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 or StockTwits.
I do not own this stock Newfoundland Capital Corp (TSX-NCC.A, TSX-NCC.B). I started to follow this stock as it was suggested as a decent dividend paying stock for investment purposes. It is not on any dividend lists that I follow. This is probably because dividends have been inconsistent.
As far as I can see, they started paying dividends in 1997, but then paid none between 2000 and 2002, inclusive. Dividends were restarted in 2003. The growth in dividends over the past 5 and 9 years is 12.5% and 20.6% per year. However, a lot of years did not have dividend increases. The most recent dividend increase was in 2011 for a 50% increase. There has been no increase since.
The Dividend Payout Ratios are good, with the 5 year median DPR for earnings at 22.2% and the DPR for cash flow at 21.7%. The DPR for 2012 was almost 52%, but this is expected to move down to 27% in 2013. Some analysts expect slight dividend increases in 2014 or 2015. The current dividend yield is 2.12% and the 5 year median is 1.66%.
Investors of this stock have done well over the past 5 and 10 years with total returns at 8.87% and 14.23% per year over these periods. The dividend portion of these returns is at 1.66% and 1.92% per year, respectively and the capital gain portion is at 7.21% and 12.81% per year, respectively.
Outstanding shares have declined over the past 5 and 10 years at the rate of 2.6% and 1.8% per year. The decline has been in the Class A shares, which are subordinate voting shares. Class B shares are multiple voting shares. Shares have increased due to stock options and decreased due to Buy Backs. Mostly, the 5 year running growth over the past 5 and 10 years has been better than the 5 and 10 year growth.
Revenue has grown at 5.8% per year and 9.7% per year over the past 5 and 10 years. Revenue per Share has grown at 8.7% and 10.7% per year over the past 5 and 10 years. The 5 and 10 years growth using 5 year running averages is similar. Growth in Revenue has been rather smooth.
There is a big difference in the 5 year running growth of EPS over the past 5 and 10 years compared to the 5 and 10 year growth. The 5 and 10 year 5 year running growth in EPS is at 3% and 17% per year over the past 5 and 10 years. EPS over the past 5 years is down by 10% per year and over the past 10 years up by 3.4% per year. Earnings do fluctuate year by year.
Cash Flow per Share has grown over the past 5 and 10 years no matter how you measure it. The CFPS growth over the past 5 and 10 years is at 16.4% and 7.4% per year, respectively. If you look at the 5 year running average growth over the past 5 and 10 years, you get growth at 12% and 10% per year, respectively.
Return on Equity has fluctuated over the years and the 5 year median ROE is just over 10% at 10.5%. The ROE for 2012 financial year is 9.1%. The ROE based on Comprehensive Income is better at 10.1%, a value 10% high than the ROE based on net income. This is a positive.
The Liquidity Ratio is low coming in at just 0.97. This means that current assets cannot cover current liabilities. It needs the cash flow to move this ratio into decent territory and it is still rather low at 1.44. The Debt Ratio is much better at 2.05. The Leverage and Debt/Equity Ratios are low and therefore quite good at 1.95 and 0.95.
You would buy this stock for diversification purposes. You would have to be able to put up with fluctuating earnings, but you might get some very good dividend yields on your initial purchase price over the longer term. Also, dividends are only paid semi-annually, not in the general quarterly manner. See my spreadsheet at ncc.htm.
This is the first of two parts. Second part will be posted on Tuesday, July 30th, 2013 and will be here.
Newfoundland Capital Corporation Limited also owns and operates Newcap Radio. Newcap Radio is one of Canada's leading radio broadcasters with 79 licenses across Canada. The Company reaches millions of listeners each week through a variety of formats and is a recognized industry leader in radio programming, sales and networking. The Company has 58 FM and 21 AM licenses spanning the country employing over 800 radio professionals in Canada. Newfoundland Capital Corporation Limited also owns and operates the Glynmill Inn, Corner Brook, Newfoundland and Labrador. Its web site is here Newfoundland Capital Corp.
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 or StockTwits.
Friday, July 26, 2013
Evertz Technologies 2
On my other blog I am today writing about a silly anti-capitalist statement ...continue...
I own this stock of Evertz Technologies (TSX-ET, OTC-EVTZF). This company was founded in 1966, but it only went public in 2006. They started to pay dividends in 2008. I bought this stock in October 2011for my trading account. I have made a total return of 14.23% per year with 4.79% from dividends and with 9.44% from capital gains.
When I look at insider trading, I find $2M of insider selling and no insider buying. The CEO has shares worth $335.7M and has no options. The CFO has shares worth $0.1M and has options worth $0.6M. An officer has shares worth $32M and has options worth $1.4M. Another officer has shares worth $336.4M and has no options. A director has shares worth $0.4M and has options worth $0.6M. This is just to give you an idea on insider share ownership and option values. As you can see, there is a lot of insider ownership by a few insiders.
The 5 year low, median and high median Price/Earnings Ratios are 13.84, 16.47 and 19.02. The current P/E Ratio is 17.19. This ratio suggests that the current price is relatively reasonable. This is based on a stock price of $13.92 and EPS for 2013 of $0.81.
I get a Graham Price of $10.03. The 10 year low, median and high median Price/Graham Price Ratios are 1.30, 1.67 and 2.03. The current P/GP Ratio would be 1.39. This ratio also suggests a relatively reasonable price.
The 10 year Price/Book Value per Share Ratio is 3.46 and the current P/B Ratio is 2.52 a value some 73% of the 10 year ratio. This suggests a relatively cheap stock price. However, a P/B Ratio is not particularly low, so stock price might be considered to be reasonable.
The 5 year median dividend yield is 2.27% and the current dividend yield at 4.6% is 102% higher. This suggests that the stock price is very cheap. The dividends have been increasing faster than the stock price. Generally, stock prices tend to increase at the dividend increase rate. However, in this case, the dividend increases has coincided with increasing Dividend Payout Ratios. The DPR for earnings has increased by 30% and for cash flow by 26%. So the increase in dividend yield may not be as good as it first appears. So we might be back to a reasonable stock price.
When I look at the analysts' recommendations, I find Buy and Hold Recommendations. There are more Hold recommendations, so the consensus recommendation is a Hold. The 12 month stock price consensus is $15.40. This implies a total return of 15.23% with 4.6% from dividends and 10.63% from capital gains.
There are comments on this stock by blogger FSYard. A couple of analysts issued downgrades for this stock. CanTech has also recently commented on Evertz. Joe Zaller of Devoncroft comments on the most recent financial results.
I plan to hold on to my current shares. I expect to do well in the longer term on this tech stock. I feel that the current price is a reasonable one. See my spreadsheet at et.htm.
This is the second of two parts. The first part was posted on Thursday, July 25, 2013 and is available here.
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.
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 or StockTwits.
I own this stock of Evertz Technologies (TSX-ET, OTC-EVTZF). This company was founded in 1966, but it only went public in 2006. They started to pay dividends in 2008. I bought this stock in October 2011for my trading account. I have made a total return of 14.23% per year with 4.79% from dividends and with 9.44% from capital gains.
When I look at insider trading, I find $2M of insider selling and no insider buying. The CEO has shares worth $335.7M and has no options. The CFO has shares worth $0.1M and has options worth $0.6M. An officer has shares worth $32M and has options worth $1.4M. Another officer has shares worth $336.4M and has no options. A director has shares worth $0.4M and has options worth $0.6M. This is just to give you an idea on insider share ownership and option values. As you can see, there is a lot of insider ownership by a few insiders.
The 5 year low, median and high median Price/Earnings Ratios are 13.84, 16.47 and 19.02. The current P/E Ratio is 17.19. This ratio suggests that the current price is relatively reasonable. This is based on a stock price of $13.92 and EPS for 2013 of $0.81.
I get a Graham Price of $10.03. The 10 year low, median and high median Price/Graham Price Ratios are 1.30, 1.67 and 2.03. The current P/GP Ratio would be 1.39. This ratio also suggests a relatively reasonable price.
The 10 year Price/Book Value per Share Ratio is 3.46 and the current P/B Ratio is 2.52 a value some 73% of the 10 year ratio. This suggests a relatively cheap stock price. However, a P/B Ratio is not particularly low, so stock price might be considered to be reasonable.
The 5 year median dividend yield is 2.27% and the current dividend yield at 4.6% is 102% higher. This suggests that the stock price is very cheap. The dividends have been increasing faster than the stock price. Generally, stock prices tend to increase at the dividend increase rate. However, in this case, the dividend increases has coincided with increasing Dividend Payout Ratios. The DPR for earnings has increased by 30% and for cash flow by 26%. So the increase in dividend yield may not be as good as it first appears. So we might be back to a reasonable stock price.
When I look at the analysts' recommendations, I find Buy and Hold Recommendations. There are more Hold recommendations, so the consensus recommendation is a Hold. The 12 month stock price consensus is $15.40. This implies a total return of 15.23% with 4.6% from dividends and 10.63% from capital gains.
There are comments on this stock by blogger FSYard. A couple of analysts issued downgrades for this stock. CanTech has also recently commented on Evertz. Joe Zaller of Devoncroft comments on the most recent financial results.
I plan to hold on to my current shares. I expect to do well in the longer term on this tech stock. I feel that the current price is a reasonable one. See my spreadsheet at et.htm.
This is the second of two parts. The first part was posted on Thursday, July 25, 2013 and is available here.
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.
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 or StockTwits.
Thursday, July 25, 2013
Evertz Technologies
I own this stock of Evertz Technologies (TSX-ET, OTC-EVTZF). I got the idea to investigate this stock from a G&M article. It is a small cap tech company with a very good dividend (4.6%) and strong balance sheet (Liquidity Ratio of 8.92).
This company was founded in 1966, but it only went public in 2006. They started to pay dividends in 2008. I bought this stock in October 2011for my trading account. I have made a total return of 14.23% per year with 4.79% from dividends and with 9.44% from capital gains.
Dividends are good, as I have said, with the current dividend is quite good at 4.6%. However, the 5 year median dividend yield is lower at 2.27%. The growth in dividends over the past 5 year is 23.73% per year. The most recent dividend increase was in 2013 with an increase at 14.3%. The Dividend Payout Ratios are quite good with the 5 year median DPR for earnings at 39% and for cash flow at 30%.
However, total return has not been so great especially for the last 5 years. The 5 year total return is a loss of 1.51% per year, with a capital loss of 3.81% and with dividends at 2.3%. The 7 year total return is better with the return at 7.47% per year and capital gain at 5.17% per year and dividends at 2.3%.
The outstanding shares have marginally increased over the past 5 and 8 years at 0.37% and 1.61% per year, respectively. Outstanding shares have increased due to stock options and decreased due to Buy Backs. In most cases, the growth in 5 year running averages is higher than for exactly 5 or 10 years of growth. This mostly occurs because exactly 5 or 10 years ago were great financial years.
The 5 and 7year growth in Revenue per Share using 5 year running averages is at 13% and 20% per year. The 5 and 10 year growth is 2.6% and 21% per year. The 7 year growth is at 10.5% per year. EPS is down over the past 5 year at 5.5% per year, but up over the past 5 year using the 5 year running averages at 13.4%. The 10 year growth in EPS runs at 90% per year because 10 years ago, profits were tiny. EPS has fluctuated over the years.
There is no growth in Cash Flow over the past 5, with Cash Flow per Share down by 2% per year. The 8 year growth in CFPS runs at 48.2% per year. The 5 year running average 5 year growth in CFPS is 8.3% per year. Cash Flow has fluctuated quite a bit over the years.
The Return on Equity is good with the ROE for the financial year ending in April 2013 at 16% and the 5 year median higher at 20.2%. The ROE on comprehensive income also comes in at 16% for the April 2013 financial year. The 5 year median ROE on comprehensive income is close at 19.2%.
The Balance Sheet is very strong and has been since 2007. The current Liquidity Ratio is 8.92, and the 5 year median ratio is also 8.92. The Debt Ratio is 8.37 and this ratio has a 5 year median also of 8.37. The Leverage and Debt/Equity Ratios are very low at 1.17 and 0.14, respectively. The company has little debt.
One problem with this stock is finding financial statements. The company does not have them on their site. The company issues press releases with financial data (but these too are not on the company's site). I found the financial statements for 2013 on the Morningstar site.
The article I read said it was looking for stocks with dividends, a strong dose of safety and a dash of growth potential. This stock does have a strong balance sheet with dividends increasing faster than the stock price. I expect to do well by this stock in the longer term, but you have to keep an eye on such stocks. See my spreadsheet at et.htm.
This is the first of two parts. Second part will be posted on July 26, 2013 and will be here.
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.
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 or StockTwits.
This company was founded in 1966, but it only went public in 2006. They started to pay dividends in 2008. I bought this stock in October 2011for my trading account. I have made a total return of 14.23% per year with 4.79% from dividends and with 9.44% from capital gains.
Dividends are good, as I have said, with the current dividend is quite good at 4.6%. However, the 5 year median dividend yield is lower at 2.27%. The growth in dividends over the past 5 year is 23.73% per year. The most recent dividend increase was in 2013 with an increase at 14.3%. The Dividend Payout Ratios are quite good with the 5 year median DPR for earnings at 39% and for cash flow at 30%.
However, total return has not been so great especially for the last 5 years. The 5 year total return is a loss of 1.51% per year, with a capital loss of 3.81% and with dividends at 2.3%. The 7 year total return is better with the return at 7.47% per year and capital gain at 5.17% per year and dividends at 2.3%.
The outstanding shares have marginally increased over the past 5 and 8 years at 0.37% and 1.61% per year, respectively. Outstanding shares have increased due to stock options and decreased due to Buy Backs. In most cases, the growth in 5 year running averages is higher than for exactly 5 or 10 years of growth. This mostly occurs because exactly 5 or 10 years ago were great financial years.
The 5 and 7year growth in Revenue per Share using 5 year running averages is at 13% and 20% per year. The 5 and 10 year growth is 2.6% and 21% per year. The 7 year growth is at 10.5% per year. EPS is down over the past 5 year at 5.5% per year, but up over the past 5 year using the 5 year running averages at 13.4%. The 10 year growth in EPS runs at 90% per year because 10 years ago, profits were tiny. EPS has fluctuated over the years.
There is no growth in Cash Flow over the past 5, with Cash Flow per Share down by 2% per year. The 8 year growth in CFPS runs at 48.2% per year. The 5 year running average 5 year growth in CFPS is 8.3% per year. Cash Flow has fluctuated quite a bit over the years.
The Return on Equity is good with the ROE for the financial year ending in April 2013 at 16% and the 5 year median higher at 20.2%. The ROE on comprehensive income also comes in at 16% for the April 2013 financial year. The 5 year median ROE on comprehensive income is close at 19.2%.
The Balance Sheet is very strong and has been since 2007. The current Liquidity Ratio is 8.92, and the 5 year median ratio is also 8.92. The Debt Ratio is 8.37 and this ratio has a 5 year median also of 8.37. The Leverage and Debt/Equity Ratios are very low at 1.17 and 0.14, respectively. The company has little debt.
One problem with this stock is finding financial statements. The company does not have them on their site. The company issues press releases with financial data (but these too are not on the company's site). I found the financial statements for 2013 on the Morningstar site.
The article I read said it was looking for stocks with dividends, a strong dose of safety and a dash of growth potential. This stock does have a strong balance sheet with dividends increasing faster than the stock price. I expect to do well by this stock in the longer term, but you have to keep an eye on such stocks. See my spreadsheet at et.htm.
This is the first of two parts. Second part will be posted on July 26, 2013 and will be here.
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.
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 or StockTwits.
Wednesday, July 24, 2013
ONEX Corp
On my other blog I am today writing about Bubbles ...continue...
I do not own this stock ONEX Corp (TSX-OCX, OTC-ONEXF), but I used. I bought it at the end of 2001 and sold in April of 2008. I made some 5.9% return including dividends. I mistook this stock for a Dividend Paying stock. Sometimes it is a good idea to review the sort of stock that we should not buy.
Why I say I mistook it for a dividend paying stock is because they pay a dividend. However, if you look at the spreadsheet, you will see that there has been no growth. In fact, dividends were the same from 1995 until this year. They are currently paying out some 1% of its cash flow in dividends. The current yield at 0.30% is way below 1%. This yield includes the big dividend rise of 2013. I seriously do not know why they even bother to pay a dividend.
It is really hard to say where they are going with dividends, as they just recently raised dividends by some 36%. However, this is not much to get excited about as dividend yield is just 0.3%. I still do not know why they bother with a dividend.
This stock is sort of like a hedge fund in that it buys or invests in companies to make money. It seemed to be a good idea when I bought it. Unfortunately, this company was a growth company until 2001. I really bought it at the wrong time. It was making some headway by 2008 and then came the second bear market and then it has been recovering ever since.
Total Returns over the past 5 and 10 years is at 3.95% and 10.56% with 0.31% and 0.43% from dividends and 3.66% and 10.10% from capital gains. This is really not a growth stock. However, the stock is up almost 20% this year and 31 % year over year, which is in growth stock territory.
The company only has had good growth in cash flow. If you look at the 5 year running averages over the past 5 and 10 years you get growth at 16% and 13% per year. Revenue growth using 5 year running averages over the past 5 and 10 years gets you growth of 10% and 7% per year.
There is no growth in earnings, but earnings fluctuate a lot. 2011 was a great year for Earnings, but they had a loss in 2012. There is also a loss in the 1st quarter of 2013. An interesting thing about earnings for 2012 is that there is a negative EPS, but there is positive net income for the company. This is because all the profits went to the non-control interest.
The Liquidity Ratios are good, with 5 year median ratio at 1.70. The Debt Ratio is low with a 5 year median at just 1.43 and a current one lower at 1.16. (I would like to see this at 1.50 or above.) The Leverage and Debt/Equity Ratios are very high with current ratios at 29.55 and 25.40, respectively.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. Most of the recommendations are a Hold and the consensus recommendation would be a Hold. The 12 month consensus stock price is $51.10. This implies a 12 month return of 2.77%, with 0.30% from dividends and 2.47% from capital gains.
Proactive Investor site talks positively about Onex Corp. There is an interesting article in Rehub Canada about Carestream Health Inc. raising debt money to give to shareholders, including ONEX Corp.
I would not invest in this company today. It is not a growth company and it is not a dividend paying company, so for me I would not see any point in the investment. See my spreadsheet at ocx.htm.
Onex is one of North America's oldest investment firm committed to acquiring and building high-quality businesses in partnership with talented management teams. Onex manages investment platforms focused on private equity, real estate and credit securities. Gerald Schwartz is a major owner Its web site is here ONEX.
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 or StockTwits.
I do not own this stock ONEX Corp (TSX-OCX, OTC-ONEXF), but I used. I bought it at the end of 2001 and sold in April of 2008. I made some 5.9% return including dividends. I mistook this stock for a Dividend Paying stock. Sometimes it is a good idea to review the sort of stock that we should not buy.
Why I say I mistook it for a dividend paying stock is because they pay a dividend. However, if you look at the spreadsheet, you will see that there has been no growth. In fact, dividends were the same from 1995 until this year. They are currently paying out some 1% of its cash flow in dividends. The current yield at 0.30% is way below 1%. This yield includes the big dividend rise of 2013. I seriously do not know why they even bother to pay a dividend.
It is really hard to say where they are going with dividends, as they just recently raised dividends by some 36%. However, this is not much to get excited about as dividend yield is just 0.3%. I still do not know why they bother with a dividend.
This stock is sort of like a hedge fund in that it buys or invests in companies to make money. It seemed to be a good idea when I bought it. Unfortunately, this company was a growth company until 2001. I really bought it at the wrong time. It was making some headway by 2008 and then came the second bear market and then it has been recovering ever since.
Total Returns over the past 5 and 10 years is at 3.95% and 10.56% with 0.31% and 0.43% from dividends and 3.66% and 10.10% from capital gains. This is really not a growth stock. However, the stock is up almost 20% this year and 31 % year over year, which is in growth stock territory.
The company only has had good growth in cash flow. If you look at the 5 year running averages over the past 5 and 10 years you get growth at 16% and 13% per year. Revenue growth using 5 year running averages over the past 5 and 10 years gets you growth of 10% and 7% per year.
There is no growth in earnings, but earnings fluctuate a lot. 2011 was a great year for Earnings, but they had a loss in 2012. There is also a loss in the 1st quarter of 2013. An interesting thing about earnings for 2012 is that there is a negative EPS, but there is positive net income for the company. This is because all the profits went to the non-control interest.
The Liquidity Ratios are good, with 5 year median ratio at 1.70. The Debt Ratio is low with a 5 year median at just 1.43 and a current one lower at 1.16. (I would like to see this at 1.50 or above.) The Leverage and Debt/Equity Ratios are very high with current ratios at 29.55 and 25.40, respectively.
When I look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. Most of the recommendations are a Hold and the consensus recommendation would be a Hold. The 12 month consensus stock price is $51.10. This implies a 12 month return of 2.77%, with 0.30% from dividends and 2.47% from capital gains.
Proactive Investor site talks positively about Onex Corp. There is an interesting article in Rehub Canada about Carestream Health Inc. raising debt money to give to shareholders, including ONEX Corp.
I would not invest in this company today. It is not a growth company and it is not a dividend paying company, so for me I would not see any point in the investment. See my spreadsheet at ocx.htm.
Onex is one of North America's oldest investment firm committed to acquiring and building high-quality businesses in partnership with talented management teams. Onex manages investment platforms focused on private equity, real estate and credit securities. Gerald Schwartz is a major owner Its web site is here ONEX.
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 or StockTwits.
Tuesday, July 23, 2013
Loblaw Companies Ltd 2
On my other blog I am today writing about Australia Investing by Dividend Ninja ...continue...
I do not own this stock Loblaw Companies Ltd (TSX-L, OTC-LBLCF), but I used to. I bought this stock in 1996 because it was doing great. It was on Mike Higgs' dividend growth stocks list. However, I sold in 2007 because of problems it was having with its tech upgrade to its supply system. I made a return of 10.14% per year on this stock, with 8.23% from capital gains and 1.91% from dividends.
When I look at insider trading, I find $4.2M of insider selling and $4.1M of net insider selling. The insider buying is minimal. Insiders not only have options, but option like vehicles called Performance Share Units, Restricted Share Units and Rights - Deferred Share Units.
The CEO has shares worth $13.9M and has options worth $66.6M. The CFO has shares worth $0.3M and has options worth $15.4M. An officer has few shares and has options worth $1.7M. Another officer has shares worth $0.2M and has options worth $19.3M. A director has shares worth $0.8M and a few options. George Weston Limited has shares worth $8.5B and W. Galen Weston has shares worth $179M. This is just to give you an idea on insider share ownership and option values.
The 5 year low, median and high median Price/Earnings per Share Ratios are 13.20, 15.79 and 17.79. The current P/E Ratio at 18.46 suggests that the stock price is a bit high. This P/E is based on a stock price if $47.80 and 2013 earnings of $2.59.
I get a Graham Price of $36.79 for 2013 and the current Price/Graham Price Ratio is 1.30. The 10 year low, median and high median P/GP Ratios are 1.15, 1.36 and 1.52. The current P/GP Ratio of 1.30 suggests that the stock price is reasonable.
I get a 10 year median Price/Book Value per Share of 1.82. The current P/B Ratio is higher at 2.06. However it is only some 12% higher and this suggests the stock price is reasonable.
The 5 year median dividend yield is 2.31% and the current dividend yield is 2.01%, a value some 13% lower. Although for a good price you would want the current dividend yield to be higher than the 5 year dividend yield, the current dividend yield is only 13% lower and suggests that the stock price is reasonable.
When I look at analysts' recommendations, I find Buy, Hold and Underperform recommendations. The vast majority of the recommendations are a Buy and the consensus recommendation would be a buy. The 12 month consensus stock price if $53.10. This implies a total return of 13.1%, with 2.01 from dividends and 11.09% from capital gains.
A couple of things are happening with Loblaw. One is the spin-off of its real estate into a REIT. See a financial post article on this spin-off. The other thing is the bid to buy Shoppers Drug Mart.
The Motley Fool reviews this stock. However, this report basically tells people who own Shoppers what their options are. I have Shoppers (TSX-SC) and I will probably sell. A Globe & Mail article from 2012 says that Loblaw is not expected to benefit from its tech updates until 2014.
The stock price would appear relatively reasonable at this time. The stock of Loblaw may once again be a dividend growth stock. However, a lot is happening and therefore it has higher risk. See my spreadsheet at lob.htm.
This is the second of two parts. The first part was posted on Monday, July 22, 2013 and is available here.
Loblaw Companies Limited, a subsidiary of George Weston Limited, is Canada's largest food retailer and a leading provider of drugstore, general merchandise and financial products and services. Loblaw offers Canada's strongest control (private) label program, including the unique President's Choice, no name and Joe Fresh brands. In addition, the Company makes available to consumers President's Choice financial services and offers the PC point loyalty program. Its web site is here Loblaw.
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 or StockTwits.
I do not own this stock Loblaw Companies Ltd (TSX-L, OTC-LBLCF), but I used to. I bought this stock in 1996 because it was doing great. It was on Mike Higgs' dividend growth stocks list. However, I sold in 2007 because of problems it was having with its tech upgrade to its supply system. I made a return of 10.14% per year on this stock, with 8.23% from capital gains and 1.91% from dividends.
When I look at insider trading, I find $4.2M of insider selling and $4.1M of net insider selling. The insider buying is minimal. Insiders not only have options, but option like vehicles called Performance Share Units, Restricted Share Units and Rights - Deferred Share Units.
The CEO has shares worth $13.9M and has options worth $66.6M. The CFO has shares worth $0.3M and has options worth $15.4M. An officer has few shares and has options worth $1.7M. Another officer has shares worth $0.2M and has options worth $19.3M. A director has shares worth $0.8M and a few options. George Weston Limited has shares worth $8.5B and W. Galen Weston has shares worth $179M. This is just to give you an idea on insider share ownership and option values.
The 5 year low, median and high median Price/Earnings per Share Ratios are 13.20, 15.79 and 17.79. The current P/E Ratio at 18.46 suggests that the stock price is a bit high. This P/E is based on a stock price if $47.80 and 2013 earnings of $2.59.
I get a Graham Price of $36.79 for 2013 and the current Price/Graham Price Ratio is 1.30. The 10 year low, median and high median P/GP Ratios are 1.15, 1.36 and 1.52. The current P/GP Ratio of 1.30 suggests that the stock price is reasonable.
I get a 10 year median Price/Book Value per Share of 1.82. The current P/B Ratio is higher at 2.06. However it is only some 12% higher and this suggests the stock price is reasonable.
The 5 year median dividend yield is 2.31% and the current dividend yield is 2.01%, a value some 13% lower. Although for a good price you would want the current dividend yield to be higher than the 5 year dividend yield, the current dividend yield is only 13% lower and suggests that the stock price is reasonable.
When I look at analysts' recommendations, I find Buy, Hold and Underperform recommendations. The vast majority of the recommendations are a Buy and the consensus recommendation would be a buy. The 12 month consensus stock price if $53.10. This implies a total return of 13.1%, with 2.01 from dividends and 11.09% from capital gains.
A couple of things are happening with Loblaw. One is the spin-off of its real estate into a REIT. See a financial post article on this spin-off. The other thing is the bid to buy Shoppers Drug Mart.
The Motley Fool reviews this stock. However, this report basically tells people who own Shoppers what their options are. I have Shoppers (TSX-SC) and I will probably sell. A Globe & Mail article from 2012 says that Loblaw is not expected to benefit from its tech updates until 2014.
The stock price would appear relatively reasonable at this time. The stock of Loblaw may once again be a dividend growth stock. However, a lot is happening and therefore it has higher risk. See my spreadsheet at lob.htm.
This is the second of two parts. The first part was posted on Monday, July 22, 2013 and is available here.
Loblaw Companies Limited, a subsidiary of George Weston Limited, is Canada's largest food retailer and a leading provider of drugstore, general merchandise and financial products and services. Loblaw offers Canada's strongest control (private) label program, including the unique President's Choice, no name and Joe Fresh brands. In addition, the Company makes available to consumers President's Choice financial services and offers the PC point loyalty program. Its web site is here Loblaw.
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 or StockTwits.
Monday, July 22, 2013
Loblaw Companies Ltd
On my other blog I am today writing about my politics ...continue...
I do not own this stock Loblaw Companies Ltd (TSX-L, OTC-LBLCF), but I used to. I bought this stock in 1996 because it was doing great. It was on Mike Higgs' dividend growth stocks list. However, I sold in 2007 because of problems it was having with its tech upgrade to its supply system. I made a return of 10.14% per year on this stock, with 8.23% from capital gains and 1.91% from dividends. In 2007, it was the second year of no dividend increase.
This stock just might be changing back into a dividend growth stock. For the first time since 2005, the company has raised their dividends in 2012 by 4.8%. They have also raised their dividends in 2013 by 9.1%. Prior to 2005, this company had a good reputation of for increasing dividends. The dividend growth back then was around 17.5% per year.
The Dividend Payout Ratios today are not as good as they were prior to 2005 in regards to earnings. Prior to 2005, the DPR for earnings was below 20%. The DPR for earnings was 37% for 2012. It is expected to be around 36% for 2013. The DPR for Cash Flow was always quite low and it is roughly the same with a 5 year DPR rate of 15% with the DPR for CF the same for 2012. Stock prices are still almost 35% below those reached in 2004.
However, shareholders would seem to be again earning money on this stock with the total return at 6.57% per year over the past 5 years. The dividends would be some 2.28% per year of that return and the capital gains would be some 4.28% of that return. Over the past 10 years, shareholders would probably have just broken even.
The outstanding shares have increased marginally (less than 1% per year) over the past 5 and 10 years. They have increased due to DRIP and stock options and decreased due to buy backs. Mostly over the past 5 and 10 years there has been growth in revenue, earnings and cash flow. Some growth is better than others.
The Revenue has increased by 1.5% and 3.2% per year over the past 5 and 10 years. Revenue per Share has increased by 1% and 3% per year over the past 5 and 10 years. Earnings per Share is up by 13.7% over the past 5 years, but down by 1.5% per year over the past 10 years. However, earnings are rather volatile and using the 5 year running averages, I get EPS growth of 4% and 3% per year over the past 5 and 10 years.
The Cash Flow per Share has grown by 5% and 3% per year over the past 5 and 10 years. Book Value per Share has grown at the rate of 2.4% and 4.3% per year over the past 5 and 10 years.
Return on Equity has most years been good with a 5 year median of 10.5%. The ROE for the financial year ending in 2012 was 10.1%. The ROE on comprehensive income is close behind, but below 10% at 9.8% for 2012 and for the 5 year median.
The balance sheet is ok, but not that strong. The Liquidity Ratio is current at 1.27. If you add in expected cash flow less dividends you get to a decent 1.58. The Debt Ratios are fine, with a current one at 1.60. The Leverage and Debt/Equity Ratios are also fine and currently at 2.67 and 1.67.
It certainly is a good sign that the company feels confident enough to raise the dividends in 2012 and 2013. It seems like there is a turnaround in place for this company. Also most view the purchase of Shopper Drug Mart as a positive. See my spreadsheet at lob.htm.
This is the first of two parts. Second part will be posted on Tuesday, July 23rd, 2013 and will be here.
Loblaw Companies Limited, a subsidiary of George Weston Limited, is Canada's largest food retailer and a leading provider of drugstore, general merchandise and financial products and services. Loblaw offers Canada's strongest control (private) label program, including the unique President's Choice, no name and Joe Fresh brands. In addition, the Company makes available to consumers President's Choice financial services and offers the PC point loyalty program. Its web site is here Loblaw.
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 or StockTwits.
I do not own this stock Loblaw Companies Ltd (TSX-L, OTC-LBLCF), but I used to. I bought this stock in 1996 because it was doing great. It was on Mike Higgs' dividend growth stocks list. However, I sold in 2007 because of problems it was having with its tech upgrade to its supply system. I made a return of 10.14% per year on this stock, with 8.23% from capital gains and 1.91% from dividends. In 2007, it was the second year of no dividend increase.
This stock just might be changing back into a dividend growth stock. For the first time since 2005, the company has raised their dividends in 2012 by 4.8%. They have also raised their dividends in 2013 by 9.1%. Prior to 2005, this company had a good reputation of for increasing dividends. The dividend growth back then was around 17.5% per year.
The Dividend Payout Ratios today are not as good as they were prior to 2005 in regards to earnings. Prior to 2005, the DPR for earnings was below 20%. The DPR for earnings was 37% for 2012. It is expected to be around 36% for 2013. The DPR for Cash Flow was always quite low and it is roughly the same with a 5 year DPR rate of 15% with the DPR for CF the same for 2012. Stock prices are still almost 35% below those reached in 2004.
However, shareholders would seem to be again earning money on this stock with the total return at 6.57% per year over the past 5 years. The dividends would be some 2.28% per year of that return and the capital gains would be some 4.28% of that return. Over the past 10 years, shareholders would probably have just broken even.
The outstanding shares have increased marginally (less than 1% per year) over the past 5 and 10 years. They have increased due to DRIP and stock options and decreased due to buy backs. Mostly over the past 5 and 10 years there has been growth in revenue, earnings and cash flow. Some growth is better than others.
The Revenue has increased by 1.5% and 3.2% per year over the past 5 and 10 years. Revenue per Share has increased by 1% and 3% per year over the past 5 and 10 years. Earnings per Share is up by 13.7% over the past 5 years, but down by 1.5% per year over the past 10 years. However, earnings are rather volatile and using the 5 year running averages, I get EPS growth of 4% and 3% per year over the past 5 and 10 years.
The Cash Flow per Share has grown by 5% and 3% per year over the past 5 and 10 years. Book Value per Share has grown at the rate of 2.4% and 4.3% per year over the past 5 and 10 years.
Return on Equity has most years been good with a 5 year median of 10.5%. The ROE for the financial year ending in 2012 was 10.1%. The ROE on comprehensive income is close behind, but below 10% at 9.8% for 2012 and for the 5 year median.
The balance sheet is ok, but not that strong. The Liquidity Ratio is current at 1.27. If you add in expected cash flow less dividends you get to a decent 1.58. The Debt Ratios are fine, with a current one at 1.60. The Leverage and Debt/Equity Ratios are also fine and currently at 2.67 and 1.67.
It certainly is a good sign that the company feels confident enough to raise the dividends in 2012 and 2013. It seems like there is a turnaround in place for this company. Also most view the purchase of Shopper Drug Mart as a positive. See my spreadsheet at lob.htm.
This is the first of two parts. Second part will be posted on Tuesday, July 23rd, 2013 and will be here.
Loblaw Companies Limited, a subsidiary of George Weston Limited, is Canada's largest food retailer and a leading provider of drugstore, general merchandise and financial products and services. Loblaw offers Canada's strongest control (private) label program, including the unique President's Choice, no name and Joe Fresh brands. In addition, the Company makes available to consumers President's Choice financial services and offers the PC point loyalty program. Its web site is here Loblaw.
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 or StockTwits.
Subscribe to:
Posts (Atom)