On my other blog I am today writing about by investing experience in TransAlta...continue...
I do not own this stock Chemtrade Logistics Income Fund (TSX-CHE.UN, OTC-CGIFF). I decided to investigate this stock after reading an article in the G&M in February 2012 about investing in small cap stocks that pay dividends. This was one of the stocks mentioned that I had never heard of before.
When I look at insider trading I find a small amount of insider buying ($0.2m) and not insider selling. There does not seem to be much in the way of options or option like vehicles (except one officer has some rights). The CEO has shares worth $3M and has no options. The CFO has shares worth $0.8M and has no options. An officer has shares worth $0.7M and has no options. A director has shares worth $1.1M and has no options. 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 7.40, 9.67 and 12.98. The have been on the rise as with all x-Income Trust companies as their dividend yields decline. The lowest P/E of 2012 was at 15.40. I get a current P/E Ratio of 18.39. This is not unreasonable, but is relatively high for this company. However, this is not a good test because company used to be an Income Trust company.
I get a Graham Price of $12.96. The 10 year low, median and high median Price/Graham Price Ratio are 0.96, 1.11 and 1.27. The current P/GP Ratio is 1.32. This is relatively high for this stock. A stock is considered cheap if the P/GP is 1.00 or lower. So by this measure, this stock is not cheap.
The 10 year median Price/Book Value per Share Ratio is 1.73. The current P/B Ratio at 2.13 is some 23% higher and this test says that the current stock price is on the high side. (A P/B Ratio of 1.50 and lower is considered to show a good stock price.)
The 10 year Price/Cash Flow per Share is 6.39 and the current P/CF Ratio is 5.33 based on $3.21 Cash Flow per Share for 2013 and a stock price of $17.10. The current P/CF Ratio is some 16% lower than the 10 year median value and this suggests that the stock price is cheap.
When I look at analysts' recommendations, I find Buy and Hold recommendations. Most recommendations are a Hold and the consensus recommendation would be a Hold. The consensus 12 month stock price is $18.20. This implies a total return of 13.45% with 7.02% from dividends and 6.43% from capital gains.
Pat McKeough of TSI Network has positive and interesting things to say about Chemtrade. Canadian Dividend Blogger has a interesting and negative take on Chemtrade. He also points out that distributions are not wholly treated as dividends. For example in 2012, 20% was "Other Income" , 48% was dividends and 31% was Foreign Business Income.
Mostly my testing shows that the stock price is currently a little too high. I feel that this is a good company and might buy it if price was lower. See my spreadsheet at che.htm.
This is the second of two parts. The first part was posted on Thursday, August 29th, 2013 and is available here.
The Chemtrade Logistics Income Fund is a global supplier of sulphuric acid, liquid sulphur dioxide and sodium hydrosulphite and a processor of spent acid, particularly in the U.S. Gulf Coast region.
Chemtrade is also a regional supplier of sulphur, sodium chlorate and phosphorus pentasulphide, and also produces zinc oxide at three North American locations. Its web site is here Chemtrade.
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 30, 2013
Thursday, August 29, 2013
Chemtrade Logistics Income Fund
I do not own this stock Chemtrade Logistics Income Fund (TSX-CHE.UN, OTC-CGIFF). I decided to investigate this stock after reading an article in the G&M in February 2012 about investing in small cap stocks that pay dividends. This was one of the stocks mentioned that I had never heard of before.
This company started off as an Income Trust. It is still called an Income Fund and has a UN as part of its TSX symbol. However, Income Trusts lost their tax advantages in 2011. This company stopped raising dividends and started to decrease them in 2007 just after the tax department changed the tax rules on Income Trusts. The dividends were decreased some 17% and they have not changed since.
The Dividend Payout Ratio for earnings has been mostly above 100%, with a 5 year median at 99%. The 5 year median DPR for cash flow is better at 61%. The most recent DPR for earnings was at 128% and for cash flow was at 43% for the financial year of 2012. One analyst thought that the company might start to raise dividends again in 2015.
The 5 year median dividend yield is at 9.57%. However, this yield has been decreasing as the dividend yield has decreased on most old Income Trust stocks. The current dividend yield is still quite high at 7.02%.
The shareholders have so far done quite well with the 5 and 10 year total return at 24.77% and 17.78%. The dividend portion of this total return is at 11.20% and 12.78% per year and the capital gain portion is at 13.56% and 5% per year, respectively. Note that the dividend portion of the total return will probably decrease in future years.
The outstanding shares on this stock have increased by 4.4% and 10% per year over the past 5 and 10 years. They have increased due to Debenture Conversions and Share issues. They have decreased due to buy backs. Revenues and earnings have increased nicely. There is lower growth in cash flows and mediocre growth in book value.
Revenue has increased by 11% and 16% per year over the past 5 and 10 years. For Revenue per Share, looking at 5 year running averages, these have increased by 9.7% and 9.8% per year over the past 5 and 10 years. Earnings per Share, looking again at 5 year running averages, these have increased by 18% and 7% per year over the past 5 and 10 years.
The Cash Flow per Share, using the 5 year running averages, has increased by 7.7% and 4.8% per year over the past 5 and 10 years. The Book Value per Share is up by 4.7% per year over the past 5 years, but down by 7.2% per year over the past 10 years. (Generally speaking, Income Trust tends to have declining book values.)
The Liquidity Ratio has varied over the years. The current ratio is 1.06. However, if you add in cash flows after dividends it gets to a much better one of 1.60. The Liquidity Ratio for 2012 was lower at 0.92 and with the added in cash flows after dividends getting it to just 1.27.
The Debt Ratios tend to be a bit better with the current one at 1.52 and the one for 2012 at 1.47. The Leverage and Debt/Equity Ratios are fine and currently at 2.91 and 1.91.
The current Return on Equity for 2012 was at 12.1% and the 5 year median ROE was at 17.8%. However, the ROE on comprehensive income is coming in generally quite a bit lower and for 2012 was 25% lower with an ROE at 9.1%. This can point to the fact that the quality of the earnings may not be very good. However, in some years, the ROE on comprehensive income is higher than the ROE on net income. It has a 5 year median value of 13.9.
I think that this company is performing quite well. It was expected that the dividend yield on old Income Trust companies would end up by now in the 4% to 5% range. Perhaps this is lagging in this respect because it is a small company and it has not yet got the DPRs for earnings in the right place. See my spreadsheet at che.htm.
This is the first of two parts. Second part will be posted on Friday, August 30th, 2013 and will be here.
Chemtrade Logistics Income Fund is a global supplier of sulphuric acid, liquid sulphur dioxide and sodium hydrosulphite and a processor of spent acid, particularly in the U.S. Gulf Coast region. Chemtrade is also a regional supplier of sulphur, sodium chlorate and phosphorus pentasulphide, and also produces zinc oxide at three North American locations. Its web site is here Chemtrade.
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 started off as an Income Trust. It is still called an Income Fund and has a UN as part of its TSX symbol. However, Income Trusts lost their tax advantages in 2011. This company stopped raising dividends and started to decrease them in 2007 just after the tax department changed the tax rules on Income Trusts. The dividends were decreased some 17% and they have not changed since.
The Dividend Payout Ratio for earnings has been mostly above 100%, with a 5 year median at 99%. The 5 year median DPR for cash flow is better at 61%. The most recent DPR for earnings was at 128% and for cash flow was at 43% for the financial year of 2012. One analyst thought that the company might start to raise dividends again in 2015.
The 5 year median dividend yield is at 9.57%. However, this yield has been decreasing as the dividend yield has decreased on most old Income Trust stocks. The current dividend yield is still quite high at 7.02%.
The shareholders have so far done quite well with the 5 and 10 year total return at 24.77% and 17.78%. The dividend portion of this total return is at 11.20% and 12.78% per year and the capital gain portion is at 13.56% and 5% per year, respectively. Note that the dividend portion of the total return will probably decrease in future years.
The outstanding shares on this stock have increased by 4.4% and 10% per year over the past 5 and 10 years. They have increased due to Debenture Conversions and Share issues. They have decreased due to buy backs. Revenues and earnings have increased nicely. There is lower growth in cash flows and mediocre growth in book value.
Revenue has increased by 11% and 16% per year over the past 5 and 10 years. For Revenue per Share, looking at 5 year running averages, these have increased by 9.7% and 9.8% per year over the past 5 and 10 years. Earnings per Share, looking again at 5 year running averages, these have increased by 18% and 7% per year over the past 5 and 10 years.
The Cash Flow per Share, using the 5 year running averages, has increased by 7.7% and 4.8% per year over the past 5 and 10 years. The Book Value per Share is up by 4.7% per year over the past 5 years, but down by 7.2% per year over the past 10 years. (Generally speaking, Income Trust tends to have declining book values.)
The Liquidity Ratio has varied over the years. The current ratio is 1.06. However, if you add in cash flows after dividends it gets to a much better one of 1.60. The Liquidity Ratio for 2012 was lower at 0.92 and with the added in cash flows after dividends getting it to just 1.27.
The Debt Ratios tend to be a bit better with the current one at 1.52 and the one for 2012 at 1.47. The Leverage and Debt/Equity Ratios are fine and currently at 2.91 and 1.91.
The current Return on Equity for 2012 was at 12.1% and the 5 year median ROE was at 17.8%. However, the ROE on comprehensive income is coming in generally quite a bit lower and for 2012 was 25% lower with an ROE at 9.1%. This can point to the fact that the quality of the earnings may not be very good. However, in some years, the ROE on comprehensive income is higher than the ROE on net income. It has a 5 year median value of 13.9.
I think that this company is performing quite well. It was expected that the dividend yield on old Income Trust companies would end up by now in the 4% to 5% range. Perhaps this is lagging in this respect because it is a small company and it has not yet got the DPRs for earnings in the right place. See my spreadsheet at che.htm.
This is the first of two parts. Second part will be posted on Friday, August 30th, 2013 and will be here.
Chemtrade Logistics Income Fund is a global supplier of sulphuric acid, liquid sulphur dioxide and sodium hydrosulphite and a processor of spent acid, particularly in the U.S. Gulf Coast region. Chemtrade is also a regional supplier of sulphur, sodium chlorate and phosphorus pentasulphide, and also produces zinc oxide at three North American locations. Its web site is here Chemtrade.
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, August 28, 2013
Calloway Real Estate Investment Trust
On my other blog I am today writing about investing in a few good companies again...continue...
I do not own this stock Calloway Real Estate Investment Trust (TSX-CWT.UN, OTC-CWYUF). In June 2009 I was looking at the dividend achievers list to find good stocks to review. This stock was on that this at that time. However, the problem with such lists is that the constituents of it can chance. This company stopped raising dividends in 2008 and in consequence is no longer on this list.
Because REITs give quite good dividend yields, you generally would expect the growth in dividends to be at or just above inflation. According to the Bank of Canada, Canada's inflation is running close to 1.5%. The dividend growth for this stock is at 0.37% and 3.35% per year over the past 5 and 10 years.
The current dividends are at a 6.27% yield with a stock price of $24.70. The 5 year median dividend yield is higher at 6.96%. The 5 year median Dividend Payout Ratio for AFFO is 94%. The 5 year DPR for cash flow is high at 102%. However, this has been coming down and the DPR for cash flow for 2012 was 84%.
Outstanding shares have increased by 7.5% and 36% per year over the past 5 and 10 years. Shares have increased due to stock options, DRIP, conversion of Debentures and exchange of deferred shares. Mitchell Goldhar, a director, owns 45% of the outstanding shares, including special voting shares (with 20 votes each) and all his shares are worth around $1.5B.
Revenue per Share, when looking at 5 year running averages has increased by 9.2% and 8% per year over the past 5 and 10 years. EPS seems to have increased a lot because it was up by 378% for 2012. This is probably because of the new accounting rules. The AFFO (Adjusted Funds from Operations) is not up by very much and this is generally how REITs are judged.
Even looking at the 5 year running averages for which I only have a 4 year growth, the AFFO is up by only 1.7% per year. This is a very low value. The FFO is not much better with 5 year running averages over the past 5 years up by only 2% per year. (Of course, the problem with FFO is that how it is calculated has changed over the years.)
The story is brighter if you look at what stockholders have earned over the past 5 and 10 years. The total return over the past 5 and 10 years is at 9.34% and 21.33% with 5.94% and 9.77% per year from distributions and 3.4% and 11.55% per year from capital gains.
According to the financial statements, the Liquidity Ratio is just 0.10. That means that the current assets come nowhere near the current liabilities. Even adding in cash flow after dividends, this value rises to just 0.13. However, you should also look at my remarks below on this subject. The Debt Ratio is very good at 2.26.
The stock price tests I can use for this REIT says the stock price is reasonable to cheap. The 10 year median Price/Book Value per Share Ratio is 1.54 and the current one is 1.01 a value some 65% lower. This test says the stock price is very low. This is based on a stock price of $24.70.
If you look at Price/AFFO Ratio, I get a 5 year median P/AFFO Ratio of 14.44 and a current ratio of 15.06, which is only 4% higher. The 5 year median Price/Cash Flow per Share is 15.52 and the current P/CF Ratio is 16.89, a value only 9% higher. (However, it is above the 5 year median high P/CF Ratio of 16.81.) The 5 year dividend yield is 6.96% and the current dividend yield is 6.27% a value only 10% higher. All these tests suggest that the stock price is in the reasonable range.
When I look at analysts' recommendations, I find Buy and Hold recommendations. Most of the recommendations are in the Hold category and the consensus would be a Hold. The 12 month consensus stock price is $28.60. This implies a total return of 22.06% with 6.27% from distributions and 15.76% from capital gains.
Zolmax has commented on a few analysts' rating changes for Calloway. I cannot find much in the way of comments on this stock except that one analyst feels that Calloway will again raise the distributions in 2014.
What I do not like about this stock is the complicated ownership structure. Sometimes it might be worth it for superior returns for the ordinary shareholder, but I do not see this happening here, especially at present. Although I must admit that over the past 10 years with a total return of 21.33% that the company is close to superior returns. However, this is not true over the past 5 year.
Also, the company's statements might be more complex than they originally appear. My general attitude is that if the accounting records are hard to understand, I do not want to invest. You got to ask yourself, what are they trying to hide?
For example, for current assets, G&M gets $239.86 and for current liabilities gets $100.28, for a Liquidity Ratio of 239. The Balance Sheet in the annual statements gives values of $38.8 and $120.6 for a Liquidity Ratio of 0.39. In the notes they do talk about other receivables, but I cannot replicate G&M figures and it is hard to tease out exactly what some of the notes mean. See G&M's site. Google Finance on their site get the same values as I do. Why invest in a company that makes it difficult for you to figure out their financial statements?
I do not like the complex ownership nor the not easy to decipher accounting. There are other REITs to buy. See my spreadsheet at cwt.htm.
Calloway REIT is the largest owner of large-format unenclosed retail properties in Canada. Its web site is here Calloway.
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 Calloway Real Estate Investment Trust (TSX-CWT.UN, OTC-CWYUF). In June 2009 I was looking at the dividend achievers list to find good stocks to review. This stock was on that this at that time. However, the problem with such lists is that the constituents of it can chance. This company stopped raising dividends in 2008 and in consequence is no longer on this list.
Because REITs give quite good dividend yields, you generally would expect the growth in dividends to be at or just above inflation. According to the Bank of Canada, Canada's inflation is running close to 1.5%. The dividend growth for this stock is at 0.37% and 3.35% per year over the past 5 and 10 years.
The current dividends are at a 6.27% yield with a stock price of $24.70. The 5 year median dividend yield is higher at 6.96%. The 5 year median Dividend Payout Ratio for AFFO is 94%. The 5 year DPR for cash flow is high at 102%. However, this has been coming down and the DPR for cash flow for 2012 was 84%.
Outstanding shares have increased by 7.5% and 36% per year over the past 5 and 10 years. Shares have increased due to stock options, DRIP, conversion of Debentures and exchange of deferred shares. Mitchell Goldhar, a director, owns 45% of the outstanding shares, including special voting shares (with 20 votes each) and all his shares are worth around $1.5B.
Revenue per Share, when looking at 5 year running averages has increased by 9.2% and 8% per year over the past 5 and 10 years. EPS seems to have increased a lot because it was up by 378% for 2012. This is probably because of the new accounting rules. The AFFO (Adjusted Funds from Operations) is not up by very much and this is generally how REITs are judged.
Even looking at the 5 year running averages for which I only have a 4 year growth, the AFFO is up by only 1.7% per year. This is a very low value. The FFO is not much better with 5 year running averages over the past 5 years up by only 2% per year. (Of course, the problem with FFO is that how it is calculated has changed over the years.)
The story is brighter if you look at what stockholders have earned over the past 5 and 10 years. The total return over the past 5 and 10 years is at 9.34% and 21.33% with 5.94% and 9.77% per year from distributions and 3.4% and 11.55% per year from capital gains.
According to the financial statements, the Liquidity Ratio is just 0.10. That means that the current assets come nowhere near the current liabilities. Even adding in cash flow after dividends, this value rises to just 0.13. However, you should also look at my remarks below on this subject. The Debt Ratio is very good at 2.26.
The stock price tests I can use for this REIT says the stock price is reasonable to cheap. The 10 year median Price/Book Value per Share Ratio is 1.54 and the current one is 1.01 a value some 65% lower. This test says the stock price is very low. This is based on a stock price of $24.70.
If you look at Price/AFFO Ratio, I get a 5 year median P/AFFO Ratio of 14.44 and a current ratio of 15.06, which is only 4% higher. The 5 year median Price/Cash Flow per Share is 15.52 and the current P/CF Ratio is 16.89, a value only 9% higher. (However, it is above the 5 year median high P/CF Ratio of 16.81.) The 5 year dividend yield is 6.96% and the current dividend yield is 6.27% a value only 10% higher. All these tests suggest that the stock price is in the reasonable range.
When I look at analysts' recommendations, I find Buy and Hold recommendations. Most of the recommendations are in the Hold category and the consensus would be a Hold. The 12 month consensus stock price is $28.60. This implies a total return of 22.06% with 6.27% from distributions and 15.76% from capital gains.
Zolmax has commented on a few analysts' rating changes for Calloway. I cannot find much in the way of comments on this stock except that one analyst feels that Calloway will again raise the distributions in 2014.
What I do not like about this stock is the complicated ownership structure. Sometimes it might be worth it for superior returns for the ordinary shareholder, but I do not see this happening here, especially at present. Although I must admit that over the past 10 years with a total return of 21.33% that the company is close to superior returns. However, this is not true over the past 5 year.
Also, the company's statements might be more complex than they originally appear. My general attitude is that if the accounting records are hard to understand, I do not want to invest. You got to ask yourself, what are they trying to hide?
For example, for current assets, G&M gets $239.86 and for current liabilities gets $100.28, for a Liquidity Ratio of 239. The Balance Sheet in the annual statements gives values of $38.8 and $120.6 for a Liquidity Ratio of 0.39. In the notes they do talk about other receivables, but I cannot replicate G&M figures and it is hard to tease out exactly what some of the notes mean. See G&M's site. Google Finance on their site get the same values as I do. Why invest in a company that makes it difficult for you to figure out their financial statements?
I do not like the complex ownership nor the not easy to decipher accounting. There are other REITs to buy. See my spreadsheet at cwt.htm.
Calloway REIT is the largest owner of large-format unenclosed retail properties in Canada. Its web site is here Calloway.
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, August 27, 2013
Badger Daylighting Ltd 2
I do not own this stock Badger Daylighting Ltd (TSX-BAD, OTC-BADFF). ). I started to follow this stock after reading a couple of articles in February 2012 in the G&M that talked about the company. The first article looked at what the pros who manage small-cap funds are buying. Badger was one of 10 stocks mentioned and it looked like an interesting stock. It is a dividend paying small cap. The second article looked at what stocks might appeal to a conservative investor looking for income.
When I look at insider trading, I find no insider buying and no insider selling. Insiders do not have options per se, but have what they call deferred shares.
The CEO has shares worth $25.8M and has options worth $2.4M. The CFO has shares worth $3.7M and has options worth $1.3M. An officer has shares worth $0.9M and has options worth $0.9M. A director has shares worth $7.7M and has options worth $0.2M. 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 7.60, 9.38 and 11.17. The current P/E Ratio is 18.78 based on a stock price of $55.60 and 2013 earnings of $2.96. This test implies that the stock price is relatively high. The 5 year median values are fairly low ones and 18.78 is not that high for an industrial stock, but the stock has recently had a very good run increasing some 30% last year and 80% so far this year.
I get a Graham Price of $28.76. The 10 year low, median and high median Price/Graham Price Ratios are 0.86, 1.12 and 1.32. These are reasonable ratios as it is basically felt that a P/GP Ratio of 1.00 or lower is pointing to a cheap stock price. The current P/GP Ratio is 1.93 and this test suggests that the stock price is both relatively high and absolutely high.
The 10 year Price/Book Value per Share is 2.72. The current P/B Ratio is 4.48, a value some 64% higher. This test suggests that the stock price is relatively high.
The dividend yield test will not provide any insight as dividends have been decreased on the company that used to be an Income Trust. It was felt that when Income Trusts turned into corporation that their dividends would decrease probably to the 4 to 5% range.
I looked at the Price/Cash Flow per Share Ratios. The 10 year P/CF Ratio is 5.60. The current P/CF Ratio is 10.45 based on a stock price of $55.60 and Cash Flow per Share for 2013 of $5.32. This test suggests that the stock price is relatively high. (What is considered to be a good P/CF Ratio is in the 5.00 range.)
There are only two analysts following this stock as far as I can see and their recommendations are Strong Buy and Buy. The consensus would be a Buy. The 12 month stock price is $63.00. This implies a total return of 15.25% with 13.31% from capital gains and 1.94% from dividends.
A Financial Post article talks about shareholders rejecting an buy offer just over two years ago. The company has done very well since then. Investment Diary gives clip of Jean-Francois Tardif talking about Badger Daylighting on BNN. The stuff on Badger Daylighting comes at the 4.30 mark in this video.
I think that this is a great company, but I feel that the stock price is just too high to buy at present. See my spreadsheet at bad.htm.
This is the second of two parts. The first part was posted on Monday, August 26th, 2013 and is available here.
Badger is North America's largest provider of non-destructive excavating services. Badger traditionally works for contractors and facility owners in the utility and petroleum industries. Badger's business model involves the provision of excavating services through two distinct entities: the Operating Partners (franchisees in the United States and agents in Canada), and Badger Corporate. Its web site is here Badger Daylighting.
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 insider trading, I find no insider buying and no insider selling. Insiders do not have options per se, but have what they call deferred shares.
The CEO has shares worth $25.8M and has options worth $2.4M. The CFO has shares worth $3.7M and has options worth $1.3M. An officer has shares worth $0.9M and has options worth $0.9M. A director has shares worth $7.7M and has options worth $0.2M. 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 7.60, 9.38 and 11.17. The current P/E Ratio is 18.78 based on a stock price of $55.60 and 2013 earnings of $2.96. This test implies that the stock price is relatively high. The 5 year median values are fairly low ones and 18.78 is not that high for an industrial stock, but the stock has recently had a very good run increasing some 30% last year and 80% so far this year.
I get a Graham Price of $28.76. The 10 year low, median and high median Price/Graham Price Ratios are 0.86, 1.12 and 1.32. These are reasonable ratios as it is basically felt that a P/GP Ratio of 1.00 or lower is pointing to a cheap stock price. The current P/GP Ratio is 1.93 and this test suggests that the stock price is both relatively high and absolutely high.
The 10 year Price/Book Value per Share is 2.72. The current P/B Ratio is 4.48, a value some 64% higher. This test suggests that the stock price is relatively high.
The dividend yield test will not provide any insight as dividends have been decreased on the company that used to be an Income Trust. It was felt that when Income Trusts turned into corporation that their dividends would decrease probably to the 4 to 5% range.
I looked at the Price/Cash Flow per Share Ratios. The 10 year P/CF Ratio is 5.60. The current P/CF Ratio is 10.45 based on a stock price of $55.60 and Cash Flow per Share for 2013 of $5.32. This test suggests that the stock price is relatively high. (What is considered to be a good P/CF Ratio is in the 5.00 range.)
There are only two analysts following this stock as far as I can see and their recommendations are Strong Buy and Buy. The consensus would be a Buy. The 12 month stock price is $63.00. This implies a total return of 15.25% with 13.31% from capital gains and 1.94% from dividends.
A Financial Post article talks about shareholders rejecting an buy offer just over two years ago. The company has done very well since then. Investment Diary gives clip of Jean-Francois Tardif talking about Badger Daylighting on BNN. The stuff on Badger Daylighting comes at the 4.30 mark in this video.
I think that this is a great company, but I feel that the stock price is just too high to buy at present. See my spreadsheet at bad.htm.
This is the second of two parts. The first part was posted on Monday, August 26th, 2013 and is available here.
Badger is North America's largest provider of non-destructive excavating services. Badger traditionally works for contractors and facility owners in the utility and petroleum industries. Badger's business model involves the provision of excavating services through two distinct entities: the Operating Partners (franchisees in the United States and agents in Canada), and Badger Corporate. Its web site is here Badger Daylighting.
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, August 26, 2013
Badger Daylighting Ltd
On my other blog I am today writing about investing in a few good companies...continue...
I do not own this stock Badger Daylighting Ltd (TSX-BAD, OTC-BADFF). I started to follow this stock after reading a couple of articles in February 2012 in the G&M that talked about the company. The first article looked at what the pros who manage small-cap funds are buying. Badger was one of 10 stocks mentioned and it looked like an interesting stock. It is a dividend paying small cap. The second article looked at what stocks might appeal to a conservative investor looking for income.
This company used to be an income trust. It changed to a corporation in 2010 and reduced the dividends by some 19%. This was after the dividends had been held flat since 2008. In 2012 they raised the dividend by 5.9%. This is a very good sign that they have started to raise dividends again. The dividend raise was at the end of 2012 and so far there has been no raise of dividends in 2013.
The Dividend Payout Ratios, after peaking in 2010 have been declining. The 5 year median DPR for earnings is 69% and for cash flow is 35%. For 2012 these ratios were at 43% for earnings and at 25% for cash flow.
The dividend yield has been fall dramatically. The company has a 5 year median dividend yield of 6.67%. The current dividend yield is 1.94%. This is because the stock price is up some 80% this year.
The total return over the past 5 and 10 years is at 12.11% and 50.48% per year. The capital gains portion of this return is 7.32% and 33.47% per year and the dividend portion of this return is 4.08% and 17.01% per year, respectively. Going forward it would appear that there would be far less return from dividends and more from capital gains.
The outstanding shares have increased by 2.8% and 2.1% per year over the past 5 and 10 years. The increase in outstanding shares has occurred because of stock options and shares issues. This company has had good growth over the past 5 and 10 years.
Revenues have grown at 15% and 17% per year over the past 5 and 10 years. Revenue per Share has grown at 12% and 15% per year over the past 5 and 10 years. Earnings are up by 9% and 44% per year over the past 5 and 10 years. However, if you look at 5 year running averages, the growth over the past 5 and 10 years is at 10% and 29% per year for earnings.
For cash flow per share, using the 5 year running averages, the growth is at 10% and 15% per year over the past 5 and 10 years. Book Value has also grown well with growth at 16% and 13% per year over the past 5 and 10 years.
The Return on Equity for this company is at 20.1% for the financial year ending in 2012. The ROE on comprehensive income is not far behind, with the ROE at 19.2%. If you look at ROE for the last 12 months ending at June 2013, the ROE is 20.4% for both net income and comprehensive income.
The debt ratios are currently very good on this stock. The current Liquidity Ratio is 2.68 and the current Debt Ratio is 2.42. The current Leverage and Debt/Equity Ratios are also very good at 1.70 and 0.70.
This company is doing very well. They have very good growth and they have started to raise their dividends again. See my spreadsheet at bad.htm.
This is the first of two parts. Second part will be posted on Tuesday, August 27th, 2013 and will be here.
Badger is North America's largest provider of non-destructive excavating services. Badger traditionally works for contractors and facility owners in the utility and petroleum industries. Badger's business model involves the provision of excavating services through two distinct entities: the Operating Partners (franchisees in the United States and agents in Canada), and Badger Corporate. Its web site is here Badger Daylighting.
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 Badger Daylighting Ltd (TSX-BAD, OTC-BADFF). I started to follow this stock after reading a couple of articles in February 2012 in the G&M that talked about the company. The first article looked at what the pros who manage small-cap funds are buying. Badger was one of 10 stocks mentioned and it looked like an interesting stock. It is a dividend paying small cap. The second article looked at what stocks might appeal to a conservative investor looking for income.
This company used to be an income trust. It changed to a corporation in 2010 and reduced the dividends by some 19%. This was after the dividends had been held flat since 2008. In 2012 they raised the dividend by 5.9%. This is a very good sign that they have started to raise dividends again. The dividend raise was at the end of 2012 and so far there has been no raise of dividends in 2013.
The Dividend Payout Ratios, after peaking in 2010 have been declining. The 5 year median DPR for earnings is 69% and for cash flow is 35%. For 2012 these ratios were at 43% for earnings and at 25% for cash flow.
The dividend yield has been fall dramatically. The company has a 5 year median dividend yield of 6.67%. The current dividend yield is 1.94%. This is because the stock price is up some 80% this year.
The total return over the past 5 and 10 years is at 12.11% and 50.48% per year. The capital gains portion of this return is 7.32% and 33.47% per year and the dividend portion of this return is 4.08% and 17.01% per year, respectively. Going forward it would appear that there would be far less return from dividends and more from capital gains.
The outstanding shares have increased by 2.8% and 2.1% per year over the past 5 and 10 years. The increase in outstanding shares has occurred because of stock options and shares issues. This company has had good growth over the past 5 and 10 years.
Revenues have grown at 15% and 17% per year over the past 5 and 10 years. Revenue per Share has grown at 12% and 15% per year over the past 5 and 10 years. Earnings are up by 9% and 44% per year over the past 5 and 10 years. However, if you look at 5 year running averages, the growth over the past 5 and 10 years is at 10% and 29% per year for earnings.
For cash flow per share, using the 5 year running averages, the growth is at 10% and 15% per year over the past 5 and 10 years. Book Value has also grown well with growth at 16% and 13% per year over the past 5 and 10 years.
The Return on Equity for this company is at 20.1% for the financial year ending in 2012. The ROE on comprehensive income is not far behind, with the ROE at 19.2%. If you look at ROE for the last 12 months ending at June 2013, the ROE is 20.4% for both net income and comprehensive income.
The debt ratios are currently very good on this stock. The current Liquidity Ratio is 2.68 and the current Debt Ratio is 2.42. The current Leverage and Debt/Equity Ratios are also very good at 1.70 and 0.70.
This company is doing very well. They have very good growth and they have started to raise their dividends again. See my spreadsheet at bad.htm.
This is the first of two parts. Second part will be posted on Tuesday, August 27th, 2013 and will be here.
Badger is North America's largest provider of non-destructive excavating services. Badger traditionally works for contractors and facility owners in the utility and petroleum industries. Badger's business model involves the provision of excavating services through two distinct entities: the Operating Partners (franchisees in the United States and agents in Canada), and Badger Corporate. Its web site is here Badger Daylighting.
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 23, 2013
Telus Corp
I do not own this stock Telus Corp (TSX-T, NYSE-TU). I started to follow this stock because people I liked reading liked this stock. John Sartz talked about it in 2008 and then at the 2009 and 2010 Aaron Dunn of KeyStone Financial Publishing Corp talked about this stock. This will be a one day report as I have too many stocks on my list to cover to do two day reports on them all.
This stock has not done badly by investors as far as dividends go. I have dividend information going back to 1994 and in most years, with some exceptions, they have increased their dividends. They, as did all telecom stocks, had a rough time with the 2000 bear market and recession. In 2000, dividends were flat; they were decreased in 2001 and then remained flat until 2004. The drop in dividends was around 60% in 2001. However, when increases started again in 2005, dividends were increased by 33% and then by 37% in 2006.
The 5 and 10 year growth in dividends is at 9.67% and 17.2% per year. The most recent dividend increase was in 2013 for 6.3%. However, this is the second increase for 2013 and total increase for 2013 is at 11.5%. The current dividend is at 4.27%, which is a good dividend and the 5 year growth rate of 9.67% is very good also.
This means potentially after 10 years, if this continues, you could be earnings come 10.7% return on money invested today. If you look at history, people who invested 10 years ago are earnings around 12.9% on their investment. However, if you look at what people who invested 15 years ago are earning, it is lower at 6%. This is because 15years ago the stock price was higher than what it was 10 years ago.
The Dividend Payout Ratios for this stock are good with the 5 year median DPR for earnings at 59% and the 5 year median DPR for cash flow at23.5%. The DPR for the last financial year was similar and for 2013 the DPRs are expected to be a bit higher at 63% for earnings and 27% for cash flow.
As with utility stocks, this company relies on cash flow to get to a Liquidity Ratio of more than 1.00. The current Liquidity Ratio is 0.70 and this means that current assets cannot cover current liabilities. If you add in the cash flow after dividends you get a Liquidity Ratio of 1.38. (I prefer to see this ratio at 1.50.)
The Debt Ratio is better and the current one is at 1.56. The current Leverage and Debt/Equity Ratios are ok at 2.78 and 1.78.
When you look at growth, I find that EPS is growing a lot faster than revenue or cash flow. Looking at 5 year running averages growth, I find over the past 10 years Revenue per Share has grown at 3.2% per year, cash flow per share at 3.6% per year, but EPS at 17.2% per year. Earnings do tend to fluctuate on this stock.
The Return on Equity is good coming in at 17.1% for the 2012 financial year. However, this is quite a bit higher than the ROE on comprehensive income which was lower by some 28% at 12.3%. If you look at ROE on net income and comprehensive income over the past 12 months to the end of June 2013, there is still a big spread of 25%. (The problem with divergence of net income and comprehensive income is that the earnings may not be as good as they may appear to be.)
When I look at my stock tests, I find that the Price/EPS Ratio test, the Price/Graham Price test (GP at $23.21) and the Price/Book Value Test (with 10 year P/B Ratio at 2.08) all show that the stock price is rather high. For example, the 5 year low median and high P/E Ratios are 10.10, 12.46 and 14.81. The current P/E Ratio is 15.25 and suggests that the stock price is relatively high. The current P/E is based on a stock price is $31.88 and 2013 earnings of $2.09.
However, the Dividend Yield test suggests that the stock price is reasonable. The current dividend yield is 4.27% and the 5 year median dividend yield is 4.42%. The current dividend yield is just 3.5% lower than the 5 year median.
When I look at the analysts' recommendations, I find Strong Buy, Buy, Hold and Underperform recommendations. The consensus recommendation would be a Buy. The 12 month stock price consensus is at $34.90. This implies a total return of 13.74% with 4.27% from dividends and 9.47% from capital gains.
Insider Monkey talks about Hedge funds being bullish about this stock and insiders being neutral about this stock. The blogger Sunny talks about the recent split in Telus' stock. And, lastly, Pro Active Investors bloggers talk about Telus' second quarter.
What I have not talked about and it is what most news for the telecoms is about, is the current sale of wireless spectrum by the Canadian Government. I do not think anyone knows how this is going affect the telecoms in the long run.
Currently I think that an investment in a Telecom company at present is rather risky. It has not been a favourite sector of mine for a while. Telecom rates are high in Canada, so there has to be some sort of shake out sometime in the future. See my spreadsheet at tel.htm.
Telus is a national telecommunications company in Canada. Telus provides a wide range of communications products and services including data, Internet protocol (IP), voice, entertainment and video. Its web site is here Telus.
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 stock has not done badly by investors as far as dividends go. I have dividend information going back to 1994 and in most years, with some exceptions, they have increased their dividends. They, as did all telecom stocks, had a rough time with the 2000 bear market and recession. In 2000, dividends were flat; they were decreased in 2001 and then remained flat until 2004. The drop in dividends was around 60% in 2001. However, when increases started again in 2005, dividends were increased by 33% and then by 37% in 2006.
The 5 and 10 year growth in dividends is at 9.67% and 17.2% per year. The most recent dividend increase was in 2013 for 6.3%. However, this is the second increase for 2013 and total increase for 2013 is at 11.5%. The current dividend is at 4.27%, which is a good dividend and the 5 year growth rate of 9.67% is very good also.
This means potentially after 10 years, if this continues, you could be earnings come 10.7% return on money invested today. If you look at history, people who invested 10 years ago are earnings around 12.9% on their investment. However, if you look at what people who invested 15 years ago are earning, it is lower at 6%. This is because 15years ago the stock price was higher than what it was 10 years ago.
The Dividend Payout Ratios for this stock are good with the 5 year median DPR for earnings at 59% and the 5 year median DPR for cash flow at23.5%. The DPR for the last financial year was similar and for 2013 the DPRs are expected to be a bit higher at 63% for earnings and 27% for cash flow.
As with utility stocks, this company relies on cash flow to get to a Liquidity Ratio of more than 1.00. The current Liquidity Ratio is 0.70 and this means that current assets cannot cover current liabilities. If you add in the cash flow after dividends you get a Liquidity Ratio of 1.38. (I prefer to see this ratio at 1.50.)
The Debt Ratio is better and the current one is at 1.56. The current Leverage and Debt/Equity Ratios are ok at 2.78 and 1.78.
When you look at growth, I find that EPS is growing a lot faster than revenue or cash flow. Looking at 5 year running averages growth, I find over the past 10 years Revenue per Share has grown at 3.2% per year, cash flow per share at 3.6% per year, but EPS at 17.2% per year. Earnings do tend to fluctuate on this stock.
The Return on Equity is good coming in at 17.1% for the 2012 financial year. However, this is quite a bit higher than the ROE on comprehensive income which was lower by some 28% at 12.3%. If you look at ROE on net income and comprehensive income over the past 12 months to the end of June 2013, there is still a big spread of 25%. (The problem with divergence of net income and comprehensive income is that the earnings may not be as good as they may appear to be.)
When I look at my stock tests, I find that the Price/EPS Ratio test, the Price/Graham Price test (GP at $23.21) and the Price/Book Value Test (with 10 year P/B Ratio at 2.08) all show that the stock price is rather high. For example, the 5 year low median and high P/E Ratios are 10.10, 12.46 and 14.81. The current P/E Ratio is 15.25 and suggests that the stock price is relatively high. The current P/E is based on a stock price is $31.88 and 2013 earnings of $2.09.
However, the Dividend Yield test suggests that the stock price is reasonable. The current dividend yield is 4.27% and the 5 year median dividend yield is 4.42%. The current dividend yield is just 3.5% lower than the 5 year median.
When I look at the analysts' recommendations, I find Strong Buy, Buy, Hold and Underperform recommendations. The consensus recommendation would be a Buy. The 12 month stock price consensus is at $34.90. This implies a total return of 13.74% with 4.27% from dividends and 9.47% from capital gains.
Insider Monkey talks about Hedge funds being bullish about this stock and insiders being neutral about this stock. The blogger Sunny talks about the recent split in Telus' stock. And, lastly, Pro Active Investors bloggers talk about Telus' second quarter.
What I have not talked about and it is what most news for the telecoms is about, is the current sale of wireless spectrum by the Canadian Government. I do not think anyone knows how this is going affect the telecoms in the long run.
Currently I think that an investment in a Telecom company at present is rather risky. It has not been a favourite sector of mine for a while. Telecom rates are high in Canada, so there has to be some sort of shake out sometime in the future. See my spreadsheet at tel.htm.
Telus is a national telecommunications company in Canada. Telus provides a wide range of communications products and services including data, Internet protocol (IP), voice, entertainment and video. Its web site is here Telus.
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, August 22, 2013
ATCO Ltd 2
I do not own this stock ATCO Ltd (TSX-ACO.X, OTC-ACLLF). This is a utility stock that gives a rather low dividend for a utility, but it has reasonable growth in dividends at just over 8% per year. This is a dividend paying stock that is on everyone's list. This stock is on the Dividend Achievers list, the Dividend Aristocrats list and was also on Mike Higgs' list.
I think the important thing to mention here is insider ownership. Ronald D. Southern owns about 85% of the Class II voting shares. He seems to be handing the operation of this company over to his daughter Nancy Southern. There are other insiders having some Class II shares, but quite small amounts. Also, because this company owns around 50% of Canadian Utilities (TSX-CU), you probably would not want to own both companies.
The 5 year low, median and high median Price/Earnings per Share Ratios are 8.94, 10.49 and 11.73. The current P/E Ratio is 12.80 based on a stock price of $43.40 and EPS estimate for 2013 of $3.39. This test suggests that the stock price is relatively high.
I get a Graham Price of $41.69. The 10 year low, median and high median Price/Graham Price Ratios are 0.72, 084 and 0.92. The current P/GP Ratio is 1.04 based on a stock price of $43.40. This test suggests that the stock price is relatively high.
I get a 10 year median Price/Book Value per Share ratio of 1.58. The current P/B Ratio is 1.90, a value 20% higher. This test also suggests that the stock price is relatively high.
The 5 year median dividend yield is 2.01%. The current dividend yield is 1.73% a value some 14% lower. This test also suggests that the current stock price is relatively high.
There are not that many analysts following this stock. However, the analysts' recommendations are split between Buy and Hold and the consensus recommendation would be a Buy. The 12 months stock price is $48.00. This implies a total return of 12.33% with 1.73 from Dividends and 10.60% from capital gains. A 12% total return from a Utility is a good return.
Winnipeg Free Press reports on ATCO's second quarterly results. There is an interesting article on Ronald Southern at Business World Magazine. Pat McKeough talks about this stock on TSI Network. And lastly, My Own Advisor blogger has an interesting take on TSI Network, including this stock.
As with a lot of utility stocks, I think that this one's stock price is too high. There will be future times to buy at relatively better prices. See my spreadsheet at aco.htm.
This is the second of two parts. The first part was posted on Wednesday, August 21st, 2013 and is available here.
ATCO LTD. is a management holding company with operating subsidiaries in electric and natural gas utility operations, independent power operations, production, storage, processing, gathering, delivery of natural gas, technical facilities management for the industrial, defense and transportation sectors, the manufacture, sale and leasing of industrial shelters and industrial noise abatement technologies. Its web site is here ATCO.
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 think the important thing to mention here is insider ownership. Ronald D. Southern owns about 85% of the Class II voting shares. He seems to be handing the operation of this company over to his daughter Nancy Southern. There are other insiders having some Class II shares, but quite small amounts. Also, because this company owns around 50% of Canadian Utilities (TSX-CU), you probably would not want to own both companies.
The 5 year low, median and high median Price/Earnings per Share Ratios are 8.94, 10.49 and 11.73. The current P/E Ratio is 12.80 based on a stock price of $43.40 and EPS estimate for 2013 of $3.39. This test suggests that the stock price is relatively high.
I get a Graham Price of $41.69. The 10 year low, median and high median Price/Graham Price Ratios are 0.72, 084 and 0.92. The current P/GP Ratio is 1.04 based on a stock price of $43.40. This test suggests that the stock price is relatively high.
I get a 10 year median Price/Book Value per Share ratio of 1.58. The current P/B Ratio is 1.90, a value 20% higher. This test also suggests that the stock price is relatively high.
The 5 year median dividend yield is 2.01%. The current dividend yield is 1.73% a value some 14% lower. This test also suggests that the current stock price is relatively high.
There are not that many analysts following this stock. However, the analysts' recommendations are split between Buy and Hold and the consensus recommendation would be a Buy. The 12 months stock price is $48.00. This implies a total return of 12.33% with 1.73 from Dividends and 10.60% from capital gains. A 12% total return from a Utility is a good return.
Winnipeg Free Press reports on ATCO's second quarterly results. There is an interesting article on Ronald Southern at Business World Magazine. Pat McKeough talks about this stock on TSI Network. And lastly, My Own Advisor blogger has an interesting take on TSI Network, including this stock.
As with a lot of utility stocks, I think that this one's stock price is too high. There will be future times to buy at relatively better prices. See my spreadsheet at aco.htm.
This is the second of two parts. The first part was posted on Wednesday, August 21st, 2013 and is available here.
ATCO LTD. is a management holding company with operating subsidiaries in electric and natural gas utility operations, independent power operations, production, storage, processing, gathering, delivery of natural gas, technical facilities management for the industrial, defense and transportation sectors, the manufacture, sale and leasing of industrial shelters and industrial noise abatement technologies. Its web site is here ATCO.
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, August 21, 2013
ATCO Ltd
On my other blog I am today writing about space again and Mars...continue...
I do not own this stock ATCO Ltd (TSX-ACO.X, OTC-ACLLF). This is a utility stock that gives a rather low dividend for a utility, but it has reasonable growth in dividends at just over 8% per year. It had higher growth in dividends prior to 2003 so that people that bought this stock at a median price 15 years ago is getting around 8.7% return on their original purchase price. If bought today at current increases that return would be around 8.9%.
The reason to buy dividend growth companies is because you will get good growth in dividends but accept a current lower dividend yield. This is why you might want to take a look at dividend yields on an original stock purchase price. Because I have a combination of low dividend yield and high dividend grow companies and high dividend yield but low dividend yield companies and some in between I have a portfolio that has grown my dividend income by just over 100% over the past 10 years.
The Dividend Payout Ratios are low for this company coming in at a 5 year median DPRs for earnings at 20% and for cash flow at 5.8%. Low DPRs can affect the viability of dividends and therefore can be seen as a good thing.
The total return on this stock is also quite good with 5 and 10 years total returns at 9.58% and 16.52% per year with 7.89% and 14.14% per year from capital gains and 1.68 and 2.38% per year from dividends.
Outstanding share have decreased by marginal amounts over the past 5 and 10 years. Outstanding shares were increased by stock options and decreased by buy backs. There is sometimes value in using 5 year running averages. Revenue per share has grown over the past 5 and 10 years at 8.6% and 3.5% per year. However, if you look at 5 year running average growth over these periods, they are much lower at 3.2% and 2.6% per year.
The growth in Earnings per Share is better with growth over the past 5 and 10 years at 8.7% and 9.2% per year. Growth in Cash Flow per Share is also quite good at 14.9% and 12.5% per year over the past 5 and 10 years. The growth in Book Value per Share is also good at 8.6% and 8.9% per year over the past 5 and 10 years.
The Return on Equity for the financial year ending in 2012 is good at 13.8%. However, it is usually lower and the ROE has a 5 year median value of just 7.3%. The ROE on Comprehensive Income seems to be consistently lower with the ROE for 2012 at 10.2% and the 5 year median value at just 7.0%.
Utility companies generally have big debt loads and they often rely on cash flow to get to a decent Liquidity Ratio. The Liquidity Ratio on this company has varied a lot over time. The ratio for 2012 is 1.36 and the current one is even lower at 0.90. However, when you add in cash flow after dividends these ratios are 2.68 and 1.66, respectively.
The Debt Ratio for this company is generally good with the one for 2012 at 1.52 and the current one at 1.63. The current Leverage and Debt/Equity Ratios are fine at 2.58 and 1.58.
This utility has provided its shareholders with a good return over the years. The dividend yield has always been a bit low. The dividends have been increasing since 1993 when data in my spreadsheet starts. It is on a number of dividend growth stock lists. This is why I follow this stock. I have not bought it because I already possess enough utility stocks.
It is a good dividend growth utility stock. See my spreadsheet at aco.htm.
This is the first of two parts. Second part will be posted on Thursday, August 22nd, 2013 and will be here.
ATCO LTD. is a management holding company with operating subsidiaries in electric and natural gas utility operations, independent power operations, production, storage, processing, gathering, delivery of natural gas, technical facilities management for the industrial, defense and transportation sectors, the manufacture, sale and leasing of industrial shelters and industrial noise abatement technologies. Its web site is here ATCO.
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 ATCO Ltd (TSX-ACO.X, OTC-ACLLF). This is a utility stock that gives a rather low dividend for a utility, but it has reasonable growth in dividends at just over 8% per year. It had higher growth in dividends prior to 2003 so that people that bought this stock at a median price 15 years ago is getting around 8.7% return on their original purchase price. If bought today at current increases that return would be around 8.9%.
The reason to buy dividend growth companies is because you will get good growth in dividends but accept a current lower dividend yield. This is why you might want to take a look at dividend yields on an original stock purchase price. Because I have a combination of low dividend yield and high dividend grow companies and high dividend yield but low dividend yield companies and some in between I have a portfolio that has grown my dividend income by just over 100% over the past 10 years.
The Dividend Payout Ratios are low for this company coming in at a 5 year median DPRs for earnings at 20% and for cash flow at 5.8%. Low DPRs can affect the viability of dividends and therefore can be seen as a good thing.
The total return on this stock is also quite good with 5 and 10 years total returns at 9.58% and 16.52% per year with 7.89% and 14.14% per year from capital gains and 1.68 and 2.38% per year from dividends.
Outstanding share have decreased by marginal amounts over the past 5 and 10 years. Outstanding shares were increased by stock options and decreased by buy backs. There is sometimes value in using 5 year running averages. Revenue per share has grown over the past 5 and 10 years at 8.6% and 3.5% per year. However, if you look at 5 year running average growth over these periods, they are much lower at 3.2% and 2.6% per year.
The growth in Earnings per Share is better with growth over the past 5 and 10 years at 8.7% and 9.2% per year. Growth in Cash Flow per Share is also quite good at 14.9% and 12.5% per year over the past 5 and 10 years. The growth in Book Value per Share is also good at 8.6% and 8.9% per year over the past 5 and 10 years.
The Return on Equity for the financial year ending in 2012 is good at 13.8%. However, it is usually lower and the ROE has a 5 year median value of just 7.3%. The ROE on Comprehensive Income seems to be consistently lower with the ROE for 2012 at 10.2% and the 5 year median value at just 7.0%.
Utility companies generally have big debt loads and they often rely on cash flow to get to a decent Liquidity Ratio. The Liquidity Ratio on this company has varied a lot over time. The ratio for 2012 is 1.36 and the current one is even lower at 0.90. However, when you add in cash flow after dividends these ratios are 2.68 and 1.66, respectively.
The Debt Ratio for this company is generally good with the one for 2012 at 1.52 and the current one at 1.63. The current Leverage and Debt/Equity Ratios are fine at 2.58 and 1.58.
This utility has provided its shareholders with a good return over the years. The dividend yield has always been a bit low. The dividends have been increasing since 1993 when data in my spreadsheet starts. It is on a number of dividend growth stock lists. This is why I follow this stock. I have not bought it because I already possess enough utility stocks.
It is a good dividend growth utility stock. See my spreadsheet at aco.htm.
This is the first of two parts. Second part will be posted on Thursday, August 22nd, 2013 and will be here.
ATCO LTD. is a management holding company with operating subsidiaries in electric and natural gas utility operations, independent power operations, production, storage, processing, gathering, delivery of natural gas, technical facilities management for the industrial, defense and transportation sectors, the manufacture, sale and leasing of industrial shelters and industrial noise abatement technologies. Its web site is here ATCO.
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, August 20, 2013
MacDonald, Dettwiler & Associates 2
I do not own this stock MacDonald, Dettwiler & Associates (TSX-MDA, OTC-MDDWF). I read about this stock in MPL Communication's Advice Hotline dated October 10, 2012. CanTech likes it also and it is a Tech stock with dividends.
When I look at insider trading, I find insider selling at $1.2M and no insider buying. The insiders do have options per se, but have option like vehicles called Deferred Share Unit (DSU), Share Appreciation Rights (SAR) and Deferred Restricted Share Units (DRSU). There is some insider ownership, but not that much. For example, the CEO has shares worth $3.3M and the CFO has shares worth $2.2M. Both these add up to only 0.2% of the company.
The 5 year low, median and high median Price/Earnings per Share Ratios are 13.45, 18.62 and 22.51. The current P/E Ratios is 15.00 based on 2013 earnings estimates of $5.28 and a current stock price of $79.20. Since earnings for the first 6 months are down by 1.5%, you have to wonder about the estimates. Based on earnings for the year to June 2013, the P/E ratio would be 29.66 based on earnings of $2.67 and stock price of $79.20.
The current Graham Price has some of the same problems as the P/E Ratio with the Graham Price of $47.20 partly based on high expected earnings by analysts. The current Price/Graham Price Ratio is 1.68. The 10 year low, median and high median P/GP Ratios of 1.61, 1.89 and 2.25 this tests shows the price is reasonable.
A test based on the Price/Book Value per Share Ratio however, shows the same thing, that the stock price is relatively reasonable. The 10 year P/B Ratio is 3.94 and the current P/B Ratio of 4.22 is just some 7% higher and points to a reasonable stock price. However, a P/B Ratio of 4.22 is rather high.
The dividend yield test is the only one to show something different. Since dividends have only been paid for two years, this is not a great test. The 2 year median dividend yield is 2.29% and the current one is 1.64%, showing that the current dividend yield is some 28% lower than the 2 year dividend yield and suggests a rather high price.
Looking at other stock price tests, like Price/Cash Flow per Share Ratio shows a relatively reasonable stock price, but here again, the P/CF ratio is rather high. The 10 year median P/CF Ratio is 11.25 and the current one is 11.73 which is only some 4% higher and points to a relatively reasonable stock price.
If you look at the Price/Sales per Share Ratio, this shows that the price is good. The 10 year median P/S Ratio is 1.54 and the current one is 1.35 based on sales estimates. Even if you use the sales for the last year to June 2013, the current P/S Ratio is 1.79 and only 17% higher.
The thing also to consider is that Ratios tend to be higher on tech stocks than some other types of stocks. For this stock most of the stock tests point to a relatively reasonable current stock price.
When you look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. The vast majority of the recommendations are a Buy. The consensus recommendation would be a Buy. However, the 12 month stock price consensus is just $83.00. This consensus price gives a 12 month total return of just 6.44% with 4.8% from Capital Gains and 1.64% from Dividends. This is rather a low total return on a Tech stock.
CanTech has a positive review of this stock in August 2013. Donville Kent Asset Management covers this stock in their July 2013 issue.
The stock price may be relatively reasonable, but the easy money on this tech stock has already been made. Since the end of last year this stock has rallied around 60%. I would like to see another dividend increase before looking at this stock again. See my spreadsheet at mda.htm.
This is the second of two parts. The first part was posted on Monday, August 19th, 2013 and is available here.
MacDonald, Dettwiler & Associates Ltd. provides solutions that capture and process large amounts of data, produce essential information and improve the decision making and operational performance of business and government organizations worldwide. Its web site is here MacDonald, Dettwiler and Associates.
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 insider trading, I find insider selling at $1.2M and no insider buying. The insiders do have options per se, but have option like vehicles called Deferred Share Unit (DSU), Share Appreciation Rights (SAR) and Deferred Restricted Share Units (DRSU). There is some insider ownership, but not that much. For example, the CEO has shares worth $3.3M and the CFO has shares worth $2.2M. Both these add up to only 0.2% of the company.
The 5 year low, median and high median Price/Earnings per Share Ratios are 13.45, 18.62 and 22.51. The current P/E Ratios is 15.00 based on 2013 earnings estimates of $5.28 and a current stock price of $79.20. Since earnings for the first 6 months are down by 1.5%, you have to wonder about the estimates. Based on earnings for the year to June 2013, the P/E ratio would be 29.66 based on earnings of $2.67 and stock price of $79.20.
The current Graham Price has some of the same problems as the P/E Ratio with the Graham Price of $47.20 partly based on high expected earnings by analysts. The current Price/Graham Price Ratio is 1.68. The 10 year low, median and high median P/GP Ratios of 1.61, 1.89 and 2.25 this tests shows the price is reasonable.
A test based on the Price/Book Value per Share Ratio however, shows the same thing, that the stock price is relatively reasonable. The 10 year P/B Ratio is 3.94 and the current P/B Ratio of 4.22 is just some 7% higher and points to a reasonable stock price. However, a P/B Ratio of 4.22 is rather high.
The dividend yield test is the only one to show something different. Since dividends have only been paid for two years, this is not a great test. The 2 year median dividend yield is 2.29% and the current one is 1.64%, showing that the current dividend yield is some 28% lower than the 2 year dividend yield and suggests a rather high price.
Looking at other stock price tests, like Price/Cash Flow per Share Ratio shows a relatively reasonable stock price, but here again, the P/CF ratio is rather high. The 10 year median P/CF Ratio is 11.25 and the current one is 11.73 which is only some 4% higher and points to a relatively reasonable stock price.
If you look at the Price/Sales per Share Ratio, this shows that the price is good. The 10 year median P/S Ratio is 1.54 and the current one is 1.35 based on sales estimates. Even if you use the sales for the last year to June 2013, the current P/S Ratio is 1.79 and only 17% higher.
The thing also to consider is that Ratios tend to be higher on tech stocks than some other types of stocks. For this stock most of the stock tests point to a relatively reasonable current stock price.
When you look at analysts' recommendations, I find Strong Buy, Buy and Hold recommendations. The vast majority of the recommendations are a Buy. The consensus recommendation would be a Buy. However, the 12 month stock price consensus is just $83.00. This consensus price gives a 12 month total return of just 6.44% with 4.8% from Capital Gains and 1.64% from Dividends. This is rather a low total return on a Tech stock.
CanTech has a positive review of this stock in August 2013. Donville Kent Asset Management covers this stock in their July 2013 issue.
The stock price may be relatively reasonable, but the easy money on this tech stock has already been made. Since the end of last year this stock has rallied around 60%. I would like to see another dividend increase before looking at this stock again. See my spreadsheet at mda.htm.
This is the second of two parts. The first part was posted on Monday, August 19th, 2013 and is available here.
MacDonald, Dettwiler & Associates Ltd. provides solutions that capture and process large amounts of data, produce essential information and improve the decision making and operational performance of business and government organizations worldwide. Its web site is here MacDonald, Dettwiler and Associates.
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, August 19, 2013
MacDonald, Dettwiler & Associates
On my other blog I am today writing about space...continue...
I do not own this stock MacDonald, Dettwiler & Associates (TSX-MDA, OTC-MDDWF). I read about this stock in MPL Communication's Advice Hotline dated October 10, 2012. CanTech likes it also and it is a Tech stock with dividends.
Dividends are a recent addition to this stock as they were started only in 2011. They are also only paying them semi-annually rather than the normal timing of quarterly. They started off with their dividends around 2%. There was a 30% increase in dividends in 2012, but no increase in 2013. The current dividend yield is just 1.6%. Mainly we have lower dividends as this stock in currently on a tear upwards.
The dividend Payout Ratios are good with the ratio for earnings being some 25% in 2011 and 48% in 2012. The DPR for cash flow was also quite good at 24% for 2011 and 29% or 2012.
Total Return over the past 5 and 10 years has been at 6.92% and 10.01% with 6.03% and 9.54% from capital gains and 0.88% and 0.46% from dividends. (There were only dividends during the last 2 years of these periods.)
The outstanding shares have declined over the past 5 and 10 years with the decline being at 4.8% and 1.5% per year over these periods. The shares have increased due to stock options, employee purchase plan and share issues. The shares have decreased due to buy backs.
No matter how you look at the statistics on revenues, the last 5 years have had no growth. Revenue is down by 6% per year over the past 5 years and up by only 4.4% per year over the past 10 years. The Revenue per share, if you look at the 5 year running averages is only up by 1.8% per year over the past 5 years and by 7.8% per year over the past 10 years. However, analysts expect good growth over the next few years. The latest financial shows that year over year revenues are up by 60% to the end of June 2013.
Earnings have had better growth with the 5 and 10 year growth, using 5 year running averages, up by 7% and 14.6% per year, respectively. Analysts are also expecting growth in earnings for the next few years, but looking at the latest report of June 2013, year over year earnings are down by 1.5%.
The cash flow per share has also grown well and the 5 and 10 year growth, using 5 year running averages is up by 9.9% and 16.6% per year. The analysts expect good growth here too and looking at the latest report of June 2013, year over year cash flow is up by 39%.
The Return on Equity has generally been quite good with the ROE at the end of last year at 32.4% with a 5 year median value of 20.3%. The comprehensive income has varied from net income. Comprehensive income was higher in 2011. It was then lower in 2012. If you look the year ending in June 2013, it is again higher (by some 27%).
They have recently been going into debt to buy assets so debt ratios were not great for the financial year ending in 2012. However, they have been improving with the current Liquidity Ratio at 0.92 up from 0.75. However, if you take off the current portion of long term debt and add in cash flow after dividends, the ratio can get to 1.24. Not great, but not that bad.
The Debt Ratio has improved since the end of last year, with the current ratio at 1.31, up from 1.13. The Leverage and Debt/Equity Ratios were rather high at the end of last year coming in at 8.70 and 7.70. They have now improved to 4.24 and 3.24, respectively. Still a little higher than I would like.
I have always had a soft spot for tech companies. This just might be a candidate for a stock to replace Shoppers that I sold from my TFSA. Tomorrow I will look at what my stock price tests tell me and also what others are saying about this stock. See my spreadsheet at mda.htm.
This is the first of two parts. Second part will be posted on Tuesday, August 20th, 2013 and will be here.
MacDonald, Dettwiler & Associates Ltd. provides solutions that capture and process large amounts of data, produce essential information and improve the decision making and operational performance of business and government organizations worldwide. Its web site is here MacDonald, Dettwiler and Associates.
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 MacDonald, Dettwiler & Associates (TSX-MDA, OTC-MDDWF). I read about this stock in MPL Communication's Advice Hotline dated October 10, 2012. CanTech likes it also and it is a Tech stock with dividends.
Dividends are a recent addition to this stock as they were started only in 2011. They are also only paying them semi-annually rather than the normal timing of quarterly. They started off with their dividends around 2%. There was a 30% increase in dividends in 2012, but no increase in 2013. The current dividend yield is just 1.6%. Mainly we have lower dividends as this stock in currently on a tear upwards.
The dividend Payout Ratios are good with the ratio for earnings being some 25% in 2011 and 48% in 2012. The DPR for cash flow was also quite good at 24% for 2011 and 29% or 2012.
Total Return over the past 5 and 10 years has been at 6.92% and 10.01% with 6.03% and 9.54% from capital gains and 0.88% and 0.46% from dividends. (There were only dividends during the last 2 years of these periods.)
The outstanding shares have declined over the past 5 and 10 years with the decline being at 4.8% and 1.5% per year over these periods. The shares have increased due to stock options, employee purchase plan and share issues. The shares have decreased due to buy backs.
No matter how you look at the statistics on revenues, the last 5 years have had no growth. Revenue is down by 6% per year over the past 5 years and up by only 4.4% per year over the past 10 years. The Revenue per share, if you look at the 5 year running averages is only up by 1.8% per year over the past 5 years and by 7.8% per year over the past 10 years. However, analysts expect good growth over the next few years. The latest financial shows that year over year revenues are up by 60% to the end of June 2013.
Earnings have had better growth with the 5 and 10 year growth, using 5 year running averages, up by 7% and 14.6% per year, respectively. Analysts are also expecting growth in earnings for the next few years, but looking at the latest report of June 2013, year over year earnings are down by 1.5%.
The cash flow per share has also grown well and the 5 and 10 year growth, using 5 year running averages is up by 9.9% and 16.6% per year. The analysts expect good growth here too and looking at the latest report of June 2013, year over year cash flow is up by 39%.
The Return on Equity has generally been quite good with the ROE at the end of last year at 32.4% with a 5 year median value of 20.3%. The comprehensive income has varied from net income. Comprehensive income was higher in 2011. It was then lower in 2012. If you look the year ending in June 2013, it is again higher (by some 27%).
They have recently been going into debt to buy assets so debt ratios were not great for the financial year ending in 2012. However, they have been improving with the current Liquidity Ratio at 0.92 up from 0.75. However, if you take off the current portion of long term debt and add in cash flow after dividends, the ratio can get to 1.24. Not great, but not that bad.
The Debt Ratio has improved since the end of last year, with the current ratio at 1.31, up from 1.13. The Leverage and Debt/Equity Ratios were rather high at the end of last year coming in at 8.70 and 7.70. They have now improved to 4.24 and 3.24, respectively. Still a little higher than I would like.
I have always had a soft spot for tech companies. This just might be a candidate for a stock to replace Shoppers that I sold from my TFSA. Tomorrow I will look at what my stock price tests tell me and also what others are saying about this stock. See my spreadsheet at mda.htm.
This is the first of two parts. Second part will be posted on Tuesday, August 20th, 2013 and will be here.
MacDonald, Dettwiler & Associates Ltd. provides solutions that capture and process large amounts of data, produce essential information and improve the decision making and operational performance of business and government organizations worldwide. Its web site is here MacDonald, Dettwiler and Associates.
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.
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