Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. On a number of measures the stock price seems expensive. The only one that shows the stock as cheap is the dividend yield test. The company has had a hard time lately. It is probably cheap, but it would be risky. Also, the stock price is where it was in 2006. There is also insider selling. See my spreadsheet on Pason Systems Inc.
I do not own this stock of Pason Systems Inc. (TSX-PSI, OTC-PSYTF). I read a report on this stock in the Buy and Sell Advisor in September 2013. I had not heard of this dividend growth company before so I decided to investigate it.
The thing I noticed when updating my spreadsheet is that the Chairman of the Board, James Douglas Hill seems to be the only insider with a significant number of shares and he is selling off his shares. When I first looked at this company in October 2013 Mr. Hill has just over 15M shares that were around 19 % of the outstanding shares. Today he has just over 10M which are around 12% of the outstanding shares. He sold shares in 2014, 2015 and 2016 and apparently is set to sell some 1.5M more shares.
James Douglas Hill is also a significant shareholder through J. D. Hill Investments Ltd. This investment does not appear to be changing. J. D. Hill Investments Ltd owns some almost 20M shares which is some 24% of the outstanding shares.
The other thing I noticed is that this company has very good debt ratios. The Liquidity Ratio for 2016 was 8.61 with a 5 year median of 4.08. The Debt Ratio for 2016 was 8.96 with a 5 year median of 6.59. What I like to see is ratios of 1.50 and above. This is way above 1.50. The Leverage and Debt/Equity Ratios are also good at 1.13 and 0.13 for 2016 and 5 year median ratios of 1.21 and 0.21. This company has no long term debt. Good debt ratios mean that a company can weather the bad times.
The last thing I noticed is that the company has just had two rather bad years with earning losses and declining revenue. They service the oil and gas industries which have a challenging time with quite low oil and gas prices. This company has suffered because of the lack of oil and gas drilling.
They have wisely stopped dividend increases. I know that dividend investors do not generally think like I do, but I prefer companies that pay in dividends what they can afford. When they are doing poorly then they could stop increasing dividends or in some cases cut or delete them. For this company no one seems to think that they will cut dividends, but no one sees any increases anytime soon.
Dividends are moderate and the dividend growth is good. The current dividend yield is 3.75% with 5, 10 and historical median dividend yields of 3.19%, 2.44% and 2.19%. The dividend growth for the past 5 and 10 years is at 14.2% and 21.1% per year.
They cannot current cover their dividends. They have had two years of earnings losses. They 5 year cover of dividends is 207% with negative Dividend Payout Ratios in 2015 and 2016. The company is expected to have positive earnings in 2017 and 2018 should this situation should change for the better. Also this company has cash equal to $1.73 per share or 8.8% of the current stock price.
The 5 year low, median and high median Price/Earnings per Share Ratios are 15.86, 21.00 and 26.15. The 10 year ratios are 14.60, 19.90 and 25.15. The Historical ones are 13.14, 18.80 and 23.64. The current P/E Ratio is 39.37 based on a stock price of $18.11 and 2017 EPS estimates of $0.46. This stock price testing suggests that the stock is relatively expensive. However, since earnings are depressed this may not be a good measure.
I get a Graham Price of $6.69. The 10 year low, median and high median Price/Graham Price ratios are 1.37, 2.09 and 2.52. The current P/GP Ratio is 2.71 based on a stock price of $18.11. This stock price testing suggests that the stock is relatively expensive. However, since earnings are depressed this may not be a good measure.
The 10 year median Price/Book Value per Share Ratio is 3.40. The current P/B Ratio is 4.19. The current P/B Ratio is based on Book Value of $365M, BVPS of $4.32 and a stock price of $18.11. The current P/B Ratio is some 23% higher than the 10 year median P/B Ratio. This stock price testing suggests that the stock is relatively expensive. However, the Book Value cannot grow when a company is not earning money. This also may not be a good measure.
The current dividend yield is 3.75%. It is based on dividends of $0.68 and a stock price of $18.11. The historical median dividend yield is 2.19% a value some 71% lower. This stock price testing suggests that the stock price is relatively cheap.
The 10 year median Price/Sales (Revenue) Ratio is 4.41. The current P/S Ratio is 6.20 a value some 41% higher. The current P/S Ratio is based on 2017 Revenue estimate of $247M, Revenue per Share of $2.92 and a stock price of $18.11. This stock price testing suggests that the stock price is relatively expensive.
When I look at analysts' recommendations I find Buy, Hold and Underperform recommendations. The consensus recommendations would be a hold. The 12 month stock price consensus is $20.50. This implies a total return of 16.95% with 13.20% from capital gains and 3.75% from dividends.
An MTNV Staff Contributor on Digital News and Financial Analysis looks at this stock and it ratios seem poor. Kenneth Searles on Melville Review says that the Williams Percent Range says that the stock is neither overbought nor oversold. Matthew Smith on Simply Wall Streetthinks that the stock is overpriced based on his relative valuation model but he feels it has growth potential. See what analysts are saying on Stock Chase. One has shorted this stock and has gone long of Trican Well Services.
Pason is the leading global provider of specialized data management systems for drilling rigs. Their solutions, which include data acquisition, well-site reporting, remote communications, and web-based information management, enable collaboration between the rig and the office. Its web site is here Pason Systems Inc.
The last stock I wrote about was about was North West Company (TSX-NWC, OTC-NWTUF)... learn more. The next stock I will write about will be Molson Coors Canada (TSX-TPX.B, NYSE-TAP)... learn more on Friday, November 3 around 5 pm. Tomorrow on my other blog I will write about Money Show 2017 - Keith Richards.... learn more on Thursday, November 2, 2017 around 5 pm.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Wednesday, November 1, 2017
Monday, October 30, 2017
North West Company
Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. Price seems a bit high but this is a low risk stock. See my spreadsheet on North West Company.
I do not own this stock of . I wanted to review all the income trust stocks touted in the Money Show of 2009. There was a lot of talk at this show about some of the Income Trust being currently good buys with very good yields. This stock changed from an income trust to a corporation in 2011.
This company has lately had mediocre results. It does have good debt ratios which should help it through any trying times. The Liquidly Ratio for January 2017 (the 1996 financial year end) was 2.15 with 5 year median of 2.10. The Debt Ratio for 2017 was 1.84 with a 5 year median of 1.83. I like to see these ratios at 1.50 and above, so these are good.
The Leverage Debt/Equity Ratios are fine at 2.19 and 1.19. The Long Term Debt/Market Cap Ratio is 0.20. Both these ratios are normal for this sort of company, so they are fine. But they are not better than normal like the Liquidity and Debt Ratios are.
The dividend yield is good and the dividend growth is low. The current dividend is 4.06% with 5 and 10 year and historical yields at 4.53%, 4.98% and 5.46%. The dividend growth over the past 5 and 10 years is at 5.3% and 4.5% per year.
Dividend changes have been a bit mixed. There was a large increase in 1998 after being flat for a number of years. There was a decrease in dividends of almost 30% when this company ceased to be an income trust. The last increase was in 2017 and it was for 3.2%. The Dividend Payout Ratio for 1996 is 79% with 5 year coverage of 83%. The DPR for CFPS for 2016 was 35% with 5 year coverage of 37%.
The company has good Return on Equity (ROE) with this ratio being above 10% for each of the past 10 years. The ROE for 2016 is 21% with a 5 year median of $19.9%. The ROE on Comprehensive Income confirms the good ROE on net income with ROE for 2016 of 19% and a 5 year median of 21%.
The only other thing to mention in regards to this is the slow rise in Book Value was has increased by 5.3% and 3.8% per year over the past 5 and 10 years. The book value is the equity part of this ratio. The current P/B Ratio is quite high at 4.18. In other words the ROE might not be quite as good as it first appears.
The 5 year low, median and high median Price/Earnings per Share Ratios are 16.43, 18.54 and 20.66. The 10 year values are 15.02, 16.65 and 18.26. The historical ratios are 9.85, 12.44 and 14.72. The current P/E Ratio is 17.31 based on a stock price of $31.50 and 2018 EPS of $1.82. This stock price testing suggests that the stock price is probably relatively reasonable.
I get a Graham Price of $17.57. The 10 year low, median and high median Price/Graham Price Ratios are 1.45, 1.61 and 1.81. The current P/GP Ratio is 1.79 based on a stock price of $31.50. This stock price testing suggests that the stock price is reasonable but above the median.
I get a 10 year median Price/Book Value per Share Ratio of 3.54. The current P/B Ratio is 4.18 a value some 18% higher. The current P/B Ratio is based on Book Value of $366M, BVPS of $7.54 and a stock price of $31.50. This stock price testing suggests that the stock price is reasonable but above the median.
I get an historical dividend yield of 5.46%. This is quite a high yield. The current Dividend Yield is 4.06% based on dividends of $1.28 and a stock price of $31.50. The current Dividend Yield is some 25.6% lower than the historical one. It is also some 10% and 18% lower than the 5 and 10 year median yields. This stock price testing suggests that the stock price is getting relatively expensive.
When I look at analysts' recommendations, I find Buy Recommendations (2) and Hold Recommendations (5). The consensus recommendation would be a hold. The 12 month stock price consensus would be $33.71. This implies a total return of 11.08% with 7.02% from capital gains and 4.06% from dividends.
The North West Company is a leading retailer of food and everyday products and services to rural communities and urban neighborhoods in Canada, Alaska, the South Pacific and the Caribbean. North West operates 225 stores under the trading names Northern, NorthMart, Giant Tiger, AC Value Center, and Cost-U-Less. Its web site is here North West Company.
DBR Staff at Dasher Business Review says that the stock price is rising and the company has some good ratios like ROE. Staff at Financial Newsweek gives some technical analysis. Will Ashworth of Motley Fool likes this stock. See what analysts are saying about this stock at Stock Chase. They think it is a good company to be bought for its yield.
The last stock I wrote about was about was Equitable Group Inc. (TSX-EQB, OTC-EQGPF)... learn more. The next stock I will write about will be Pason Systems Inc. (TSX-PSI, OTC-PSYTF)... learn more on Wednesday, November 1, 2017 around 5 pm. Tomorrow on my other blog I will write about Money Show 2017 - Benj Gallander.... learn more on Tuesday, October 31, 2017 around 5 pm.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
I do not own this stock of . I wanted to review all the income trust stocks touted in the Money Show of 2009. There was a lot of talk at this show about some of the Income Trust being currently good buys with very good yields. This stock changed from an income trust to a corporation in 2011.
This company has lately had mediocre results. It does have good debt ratios which should help it through any trying times. The Liquidly Ratio for January 2017 (the 1996 financial year end) was 2.15 with 5 year median of 2.10. The Debt Ratio for 2017 was 1.84 with a 5 year median of 1.83. I like to see these ratios at 1.50 and above, so these are good.
The Leverage Debt/Equity Ratios are fine at 2.19 and 1.19. The Long Term Debt/Market Cap Ratio is 0.20. Both these ratios are normal for this sort of company, so they are fine. But they are not better than normal like the Liquidity and Debt Ratios are.
The dividend yield is good and the dividend growth is low. The current dividend is 4.06% with 5 and 10 year and historical yields at 4.53%, 4.98% and 5.46%. The dividend growth over the past 5 and 10 years is at 5.3% and 4.5% per year.
Dividend changes have been a bit mixed. There was a large increase in 1998 after being flat for a number of years. There was a decrease in dividends of almost 30% when this company ceased to be an income trust. The last increase was in 2017 and it was for 3.2%. The Dividend Payout Ratio for 1996 is 79% with 5 year coverage of 83%. The DPR for CFPS for 2016 was 35% with 5 year coverage of 37%.
The company has good Return on Equity (ROE) with this ratio being above 10% for each of the past 10 years. The ROE for 2016 is 21% with a 5 year median of $19.9%. The ROE on Comprehensive Income confirms the good ROE on net income with ROE for 2016 of 19% and a 5 year median of 21%.
The only other thing to mention in regards to this is the slow rise in Book Value was has increased by 5.3% and 3.8% per year over the past 5 and 10 years. The book value is the equity part of this ratio. The current P/B Ratio is quite high at 4.18. In other words the ROE might not be quite as good as it first appears.
The 5 year low, median and high median Price/Earnings per Share Ratios are 16.43, 18.54 and 20.66. The 10 year values are 15.02, 16.65 and 18.26. The historical ratios are 9.85, 12.44 and 14.72. The current P/E Ratio is 17.31 based on a stock price of $31.50 and 2018 EPS of $1.82. This stock price testing suggests that the stock price is probably relatively reasonable.
I get a Graham Price of $17.57. The 10 year low, median and high median Price/Graham Price Ratios are 1.45, 1.61 and 1.81. The current P/GP Ratio is 1.79 based on a stock price of $31.50. This stock price testing suggests that the stock price is reasonable but above the median.
I get a 10 year median Price/Book Value per Share Ratio of 3.54. The current P/B Ratio is 4.18 a value some 18% higher. The current P/B Ratio is based on Book Value of $366M, BVPS of $7.54 and a stock price of $31.50. This stock price testing suggests that the stock price is reasonable but above the median.
I get an historical dividend yield of 5.46%. This is quite a high yield. The current Dividend Yield is 4.06% based on dividends of $1.28 and a stock price of $31.50. The current Dividend Yield is some 25.6% lower than the historical one. It is also some 10% and 18% lower than the 5 and 10 year median yields. This stock price testing suggests that the stock price is getting relatively expensive.
When I look at analysts' recommendations, I find Buy Recommendations (2) and Hold Recommendations (5). The consensus recommendation would be a hold. The 12 month stock price consensus would be $33.71. This implies a total return of 11.08% with 7.02% from capital gains and 4.06% from dividends.
The North West Company is a leading retailer of food and everyday products and services to rural communities and urban neighborhoods in Canada, Alaska, the South Pacific and the Caribbean. North West operates 225 stores under the trading names Northern, NorthMart, Giant Tiger, AC Value Center, and Cost-U-Less. Its web site is here North West Company.
DBR Staff at Dasher Business Review says that the stock price is rising and the company has some good ratios like ROE. Staff at Financial Newsweek gives some technical analysis. Will Ashworth of Motley Fool likes this stock. See what analysts are saying about this stock at Stock Chase. They think it is a good company to be bought for its yield.
The last stock I wrote about was about was Equitable Group Inc. (TSX-EQB, OTC-EQGPF)... learn more. The next stock I will write about will be Pason Systems Inc. (TSX-PSI, OTC-PSYTF)... learn more on Wednesday, November 1, 2017 around 5 pm. Tomorrow on my other blog I will write about Money Show 2017 - Benj Gallander.... learn more on Tuesday, October 31, 2017 around 5 pm.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Friday, October 27, 2017
Equitable Group Inc.
Sound bite for Twitter and StockTwits is: Dividend Growth Financial. Price is reasonable and below the median. This suggests a good time to buy if you are interested in this stock. See my spreadsheet on Equitable Group Inc.
I do not own this stock of Equitable Group Inc. (TSX-EQB, OTC-EQGPF). I had read a glowing report on investing on this company in 2013, so I decided to check it out. It was interesting as it was loaning money to new immigrants, a class of people who generally have a difficult time getting loans and mortgages from our regular banks. It sounded intriguing.
The dividends are low and the dividend growth is moderate. The current dividend is 1.65% and it has a historical yield of 1.44%. The growth over the past 5 and 10 years is at 13.8% and 8% per year. The can afford their dividends as the Dividend Payout Ratio for 2016 is 9.7% with 5 year coverage at 9.8%. Note that mostly cash flow is ignored for banks as is the DPR for cash flow.
This bank has good growth in Revenue, Earnings and book value. For example, the growth in Revenue per Share over the past 5 and 10 years is at 13.8% and 14.7% per year. The growth in EOS is at 17% and 14.2% per year over the past 5 and 10 years.
The Return on Equity (ROE) is good and above 10% since 2003. Both the Book Value (Equity) and Net Income are rising. This is the best sort of ROE to have. The ROE for 2016 was 14.2% with a 5 year median of 15.2%. The ROE on Comprehensive Income is close with an ROE of 14.9% for 2016 with a 5 year median of 14.9% also.
The 5 year low, median and high median Price/Earnings per Share Ratios are 5.67, 7.20 and 8.43. The corresponding 10 year values are 5.58, 6.96 and 8.40. The historical ones are 6.07, 7.20 and 8.72. The current P/E Ratio is 6.40 based on 2017 EPS estimate of $9.07 and a current stock price of $58.08. These are quite low P/E Ratios. Some of the banks have low P/E Ratios but this seems to have the lowest. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a Graham Price of $110.63. The 10 year low, median and high median Price/Graham Price Ratios are 0.46, 0.58 and 0.70. The current P/GP Ratio is 0.52 based on a stock price of $58.08. This stock price testing suggests that the stock price is relatively reasonable and below the median.
The 10 year median Price/Book Value per Share Ratio is 1.08. The current P/B Ratio is 0.97 a value some 10.5% lower. The current P/B Ratio is based on a Book Value of $988M, BVPS of $59.98 and a stock price of $58.08. When the P/B Ratio is below 1.00 this means that the stock is selling below its theoretical breakup value. This stock price testing suggests that the stock price is relatively reasonable and below the median.
The historical dividend yield is 1.44%. The current dividend yield is 1.65% a value some 14.8% higher. The current dividend yield is based on dividends of $0.96 and a stock price of $58.08. This stock price testing suggests that the stock price is relatively reasonable and below the median.
The 10 year median Price/Sales (Revenue) Ratio is 3.65. The current P/S Ratio is 3.08 a value some 15.8% lower. The current P/S Ratio is based on 2017 Revenue estimate of $311M, Revenue per Share of $18.87 and a stock price of $58.08. This stock price testing suggests that the stock price is relatively reasonable and below the median.
When I look at analysts' recommendations I find Buy and Hold recommendations, with a consensus of Buy. The 12 month stock price is $67.18. This implies a total return of 17.32% with 15.67% from capital gains and 1.65% from dividends based on a current price of $58.08.
Ambrose O'Callaghan of Motley Fool likes this stock. Rob Logan on Ledger Gazette says National Bank raised their Q3 EPS estimate for Equitable. Financial Newsweek Staff on Financial Newsweek gives some technical analysis and also talk about Equitable's low Price to Book Ratio. See what analysts are saying about this stock on Stock Chase.
Equitable Group Inc. is a niche mortgage lender. The company's primary business is first charge mortgage financing, which offer through company's wholly owned subsidiary, Equitable Bank (formerly The Equitable Trust Company). Equitable Bank is a Schedule I bank pursuant to the Bank Act; it actively originates mortgages across Canada and serves single family, small & large commercial borrowers. Its web site is here Equitable Group Inc.
The last stock I wrote about was about was Medtronic Inc. (NYSE-MDT)... learn more. The next stock I will write about will be North West Company (TSX-NWC, OTC-NWTUF)... learn more on Monday November 30, 2017 around 5 pm.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures
I do not own this stock of Equitable Group Inc. (TSX-EQB, OTC-EQGPF). I had read a glowing report on investing on this company in 2013, so I decided to check it out. It was interesting as it was loaning money to new immigrants, a class of people who generally have a difficult time getting loans and mortgages from our regular banks. It sounded intriguing.
The dividends are low and the dividend growth is moderate. The current dividend is 1.65% and it has a historical yield of 1.44%. The growth over the past 5 and 10 years is at 13.8% and 8% per year. The can afford their dividends as the Dividend Payout Ratio for 2016 is 9.7% with 5 year coverage at 9.8%. Note that mostly cash flow is ignored for banks as is the DPR for cash flow.
This bank has good growth in Revenue, Earnings and book value. For example, the growth in Revenue per Share over the past 5 and 10 years is at 13.8% and 14.7% per year. The growth in EOS is at 17% and 14.2% per year over the past 5 and 10 years.
The Return on Equity (ROE) is good and above 10% since 2003. Both the Book Value (Equity) and Net Income are rising. This is the best sort of ROE to have. The ROE for 2016 was 14.2% with a 5 year median of 15.2%. The ROE on Comprehensive Income is close with an ROE of 14.9% for 2016 with a 5 year median of 14.9% also.
The 5 year low, median and high median Price/Earnings per Share Ratios are 5.67, 7.20 and 8.43. The corresponding 10 year values are 5.58, 6.96 and 8.40. The historical ones are 6.07, 7.20 and 8.72. The current P/E Ratio is 6.40 based on 2017 EPS estimate of $9.07 and a current stock price of $58.08. These are quite low P/E Ratios. Some of the banks have low P/E Ratios but this seems to have the lowest. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a Graham Price of $110.63. The 10 year low, median and high median Price/Graham Price Ratios are 0.46, 0.58 and 0.70. The current P/GP Ratio is 0.52 based on a stock price of $58.08. This stock price testing suggests that the stock price is relatively reasonable and below the median.
The 10 year median Price/Book Value per Share Ratio is 1.08. The current P/B Ratio is 0.97 a value some 10.5% lower. The current P/B Ratio is based on a Book Value of $988M, BVPS of $59.98 and a stock price of $58.08. When the P/B Ratio is below 1.00 this means that the stock is selling below its theoretical breakup value. This stock price testing suggests that the stock price is relatively reasonable and below the median.
The historical dividend yield is 1.44%. The current dividend yield is 1.65% a value some 14.8% higher. The current dividend yield is based on dividends of $0.96 and a stock price of $58.08. This stock price testing suggests that the stock price is relatively reasonable and below the median.
The 10 year median Price/Sales (Revenue) Ratio is 3.65. The current P/S Ratio is 3.08 a value some 15.8% lower. The current P/S Ratio is based on 2017 Revenue estimate of $311M, Revenue per Share of $18.87 and a stock price of $58.08. This stock price testing suggests that the stock price is relatively reasonable and below the median.
When I look at analysts' recommendations I find Buy and Hold recommendations, with a consensus of Buy. The 12 month stock price is $67.18. This implies a total return of 17.32% with 15.67% from capital gains and 1.65% from dividends based on a current price of $58.08.
Ambrose O'Callaghan of Motley Fool likes this stock. Rob Logan on Ledger Gazette says National Bank raised their Q3 EPS estimate for Equitable. Financial Newsweek Staff on Financial Newsweek gives some technical analysis and also talk about Equitable's low Price to Book Ratio. See what analysts are saying about this stock on Stock Chase.
Equitable Group Inc. is a niche mortgage lender. The company's primary business is first charge mortgage financing, which offer through company's wholly owned subsidiary, Equitable Bank (formerly The Equitable Trust Company). Equitable Bank is a Schedule I bank pursuant to the Bank Act; it actively originates mortgages across Canada and serves single family, small & large commercial borrowers. Its web site is here Equitable Group Inc.
The last stock I wrote about was about was Medtronic Inc. (NYSE-MDT)... learn more. The next stock I will write about will be North West Company (TSX-NWC, OTC-NWTUF)... learn more on Monday November 30, 2017 around 5 pm.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures
Wednesday, October 25, 2017
Medtronic PLC
Sound bite for Twitter and StockTwits is: Dividend Growth Health Care. By most tests the stock price seems to be relatively reasonable and below the median. I did not like that they seem to make it difficult for me to find basic information. See my spreadsheet on Medtronic PLC.
I do not own this stock of Medtronic Inc. (NYSE-MDT). In 2009 I was looking for a good US stock for my US$ account. I had heard good things about this stock and also it is in Health Care sector which is a weak sector in Canada. This is one of the few US stocks that I follow.
First this company is making it very difficult to find things. I had to google to find the Board of Directors on their site. Then I had difficulty find the latest annual report. What I was looking for was the statements of course. They have an annual type report but not statements that I could find.
I looked at Morningstar but I could not figure of the format of the report. It came up on a web page but was so hard to manage. So I googled for their annual report and found it. I am not sure what site I got. It might have been part of the Medtronic site. I do not know. This was all so frustrating. The thing is that more information is not necessarily better information. People do not always understand that. Sometimes more information just gives you more crap you have to go thought to find the information you want.
Current dividends are moderate as is the dividend growth. The current dividend yield is 2.35% with a 5 and 10 year median dividend yield of 2.06% and 2.08%. The dividend growth over the past 5 and 10 years is at 12.1% and 14.6% per year.
The dividends used to be lower with higher dividend growth until around 2009. The historical median dividend yield is just 0.73%. This historical dividend growth is 17.4% per year. The historical median dividend yield to 2009 is 0.66% and the historical dividend growth to 2009 is 20.3% per year.
They can afford their dividends. The Dividend Payout Ratio for EPS for 2017 is 59.5% with 5 year coverage at 46.7%. The DPR for CFPS is 34.9% and with 5 year coverage of 31.5%.
Currently Canadian investors would be making money on this stock. For the 5 years ending in April 2017 the total return would have been 25.19% per year. From 2014 to 2016 the 5 year total returns would have been 13.18%, 17.37% and 22.49% per year.
However from 2005 to 2012 inclusive Canadian investors would have lost money for each 5 year period prior. For example, for the 5 year period ending in 2012 the total return would have been a loss of 6.73% per year. For the 5 year period ending in 2012 the total return would have been 0.6% per year.
In US$ terms the total return for the past 5 and 10 years ending in the financial period of April 2017 is at 19.31% and 6.18% per year.
The debt ratios are good. The Liquidity Ratio for the financial year ending in April 2017 is 1.75 with a 5 year median of 3.36. The Debt Ratio for 2017 is 2.02 with a 5 year ratio of 2.05. The Leverage and Debt/Equity Ratios for 2017 is 1.98 and 0.98, respectively.
For the last 3 years the Return on Equity was been below 10%. The ROE for 2017 was 8% with a 5 year median of 8%. There is a problem with falling equity (or book value) for the past 2 years. Also, the quality of the earnings may not be there because the ROE on Comprehensive Income for 2017 is 6.5% with a 5 year median of 6.5%. Basically you want the ROE on Comprehensive Income to be the same as for Net Income and this confirms the quality of the earnings. If it is lower it suggests possible lower quality of earnings. (Or in other words the earnings may not be what they seem.)
The outstanding shares have increased by 5.7% and 1.8% per year over the past 5 and 10 years. This means that to see the actual growth you have to look at per share values especially over the past 5 years. This can sometimes matter a lot. For example in this case the 5 and 10 year growth in Revenue per Share is at 6.8% and 7.3% per year. The Revenue has grown at 12.95 and 9.2% per year. The real growth is the per share growth.
The 5 year low, median and high median Price/Earnings per Share Ratios are 24.39, 28.63 and 30.77. The 10 year values are 14.04, 19.50 and 24.95. The historical ratios are 20.98, 26.28 and 31.28. It would seem that the recent move up in P/E Ratios has more to do with Price than Earnings. The current P/E Ratio is 21.16 based on a stock price of $79.25 and 2018 EPS estimate of $3.28. This stock price testing suggests that the stock price is relatively reasonable and probably around the median.
I get a Graham Price of $52.26. The 10 year low, median and high median Price/Graham Price Ratios are 1.19, 1.51 and 1.73. The current P/GP Ratio is 1.52 based on a stock price of $79.25. This stock price testing suggests that the stock price is relatively reasonable and around the median.
The 10 year median Price/Book Value per Share Ratio is 2.37. The current P/B Ratio is 2.14 based on a stock price of $79.25, Book Value of $50672M and BVPS of $37.01. The BVPS has been declining slightly for the past two years, but the 5 and 10 year growth is at 17.4% and 14.4% per year. The current P/B Ratio is some 9.5% lower than the 10 year value. This stock price testing suggests that the stock price is relatively reasonable and below the median.
The historical median dividend yield is 0.73%. The current dividend yield is 2.32% based on dividends of $1.84 and stock price of $79.25. The current dividend yield is some 218% higher than the historical one. This stock price testing suggests that the stock price is relatively cheap. The 5 year median dividend yield is much higher at 2.06%. The current dividend yield is some 13% higher than the 5 year median yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.
The 10 year Price/Sales (Revenue) Ratio is 3.15. The current P/S Ratio is 3.71 a value some 18% higher. The current P/S Ratio is based on Revenue estimate for 2018 of $29,262M, Revenue per Share of $21.37 and a stock price of $79.25. This stock price testing suggests that the stock is relatively reasonable but above the median.
When I look at analysts' recommendations I find Strong Buy, Buy and Hold recommendations. The consensus recommendation would be a Buy. The 12 month stock price consensus is $89.97. This implies a total return of 15.855 with 13.53% from capital gains and 2.32% from dividends based on a current stock price of $79.25.
Hot Earnings on Post Analyst says that the consensus calls are at 2.3 which is a buy recommendations from 18 analysts with 6 Buys and 12 Holds and 0 Sells. David Galor at Oracle Examiner gives some technical analysis on this stock. Vick Brown on Economics and Money says that the Relative Strength Index shows that the stock is neither overbought nor oversold. See what analysts are saying about this company on Stock Chase. The reviews for this stock are mixed.
Medtronic is the world's leading medical technology company, pioneering device-based therapies that restore health, extend life and alleviate pain. Primary products include those for bradycardia pacing, tachyarrhythmia management, atrial fibrillation management, among others. Medtronic operates its business in one reportable segment, that of manufacturing and selling device-based medical therapies. The company does business in more than 120 countries. The company's product lines include cardiac rhythm management, neurological and spinal, vascular and cardiac surgery. Its web site is here Medtronic PLC.
The last stock I wrote about was about was Canadian Pacific Railway (TSX-CP, NYSE-CP)... learn more. The next stock I will write about will be Equitable Group Inc. (TSX-EQB, OTC-EQGPF)... learn more on Friday, October 27, 2017 around 5 pm. Tomorrow on my other blog I will write about Money Show 2017 - Ryan Irvine 4.... learn more on Thursday, October 26, 2017 around 5 pm.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
I do not own this stock of Medtronic Inc. (NYSE-MDT). In 2009 I was looking for a good US stock for my US$ account. I had heard good things about this stock and also it is in Health Care sector which is a weak sector in Canada. This is one of the few US stocks that I follow.
First this company is making it very difficult to find things. I had to google to find the Board of Directors on their site. Then I had difficulty find the latest annual report. What I was looking for was the statements of course. They have an annual type report but not statements that I could find.
I looked at Morningstar but I could not figure of the format of the report. It came up on a web page but was so hard to manage. So I googled for their annual report and found it. I am not sure what site I got. It might have been part of the Medtronic site. I do not know. This was all so frustrating. The thing is that more information is not necessarily better information. People do not always understand that. Sometimes more information just gives you more crap you have to go thought to find the information you want.
Current dividends are moderate as is the dividend growth. The current dividend yield is 2.35% with a 5 and 10 year median dividend yield of 2.06% and 2.08%. The dividend growth over the past 5 and 10 years is at 12.1% and 14.6% per year.
The dividends used to be lower with higher dividend growth until around 2009. The historical median dividend yield is just 0.73%. This historical dividend growth is 17.4% per year. The historical median dividend yield to 2009 is 0.66% and the historical dividend growth to 2009 is 20.3% per year.
They can afford their dividends. The Dividend Payout Ratio for EPS for 2017 is 59.5% with 5 year coverage at 46.7%. The DPR for CFPS is 34.9% and with 5 year coverage of 31.5%.
Currently Canadian investors would be making money on this stock. For the 5 years ending in April 2017 the total return would have been 25.19% per year. From 2014 to 2016 the 5 year total returns would have been 13.18%, 17.37% and 22.49% per year.
However from 2005 to 2012 inclusive Canadian investors would have lost money for each 5 year period prior. For example, for the 5 year period ending in 2012 the total return would have been a loss of 6.73% per year. For the 5 year period ending in 2012 the total return would have been 0.6% per year.
In US$ terms the total return for the past 5 and 10 years ending in the financial period of April 2017 is at 19.31% and 6.18% per year.
The debt ratios are good. The Liquidity Ratio for the financial year ending in April 2017 is 1.75 with a 5 year median of 3.36. The Debt Ratio for 2017 is 2.02 with a 5 year ratio of 2.05. The Leverage and Debt/Equity Ratios for 2017 is 1.98 and 0.98, respectively.
For the last 3 years the Return on Equity was been below 10%. The ROE for 2017 was 8% with a 5 year median of 8%. There is a problem with falling equity (or book value) for the past 2 years. Also, the quality of the earnings may not be there because the ROE on Comprehensive Income for 2017 is 6.5% with a 5 year median of 6.5%. Basically you want the ROE on Comprehensive Income to be the same as for Net Income and this confirms the quality of the earnings. If it is lower it suggests possible lower quality of earnings. (Or in other words the earnings may not be what they seem.)
The outstanding shares have increased by 5.7% and 1.8% per year over the past 5 and 10 years. This means that to see the actual growth you have to look at per share values especially over the past 5 years. This can sometimes matter a lot. For example in this case the 5 and 10 year growth in Revenue per Share is at 6.8% and 7.3% per year. The Revenue has grown at 12.95 and 9.2% per year. The real growth is the per share growth.
The 5 year low, median and high median Price/Earnings per Share Ratios are 24.39, 28.63 and 30.77. The 10 year values are 14.04, 19.50 and 24.95. The historical ratios are 20.98, 26.28 and 31.28. It would seem that the recent move up in P/E Ratios has more to do with Price than Earnings. The current P/E Ratio is 21.16 based on a stock price of $79.25 and 2018 EPS estimate of $3.28. This stock price testing suggests that the stock price is relatively reasonable and probably around the median.
I get a Graham Price of $52.26. The 10 year low, median and high median Price/Graham Price Ratios are 1.19, 1.51 and 1.73. The current P/GP Ratio is 1.52 based on a stock price of $79.25. This stock price testing suggests that the stock price is relatively reasonable and around the median.
The 10 year median Price/Book Value per Share Ratio is 2.37. The current P/B Ratio is 2.14 based on a stock price of $79.25, Book Value of $50672M and BVPS of $37.01. The BVPS has been declining slightly for the past two years, but the 5 and 10 year growth is at 17.4% and 14.4% per year. The current P/B Ratio is some 9.5% lower than the 10 year value. This stock price testing suggests that the stock price is relatively reasonable and below the median.
The historical median dividend yield is 0.73%. The current dividend yield is 2.32% based on dividends of $1.84 and stock price of $79.25. The current dividend yield is some 218% higher than the historical one. This stock price testing suggests that the stock price is relatively cheap. The 5 year median dividend yield is much higher at 2.06%. The current dividend yield is some 13% higher than the 5 year median yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.
The 10 year Price/Sales (Revenue) Ratio is 3.15. The current P/S Ratio is 3.71 a value some 18% higher. The current P/S Ratio is based on Revenue estimate for 2018 of $29,262M, Revenue per Share of $21.37 and a stock price of $79.25. This stock price testing suggests that the stock is relatively reasonable but above the median.
When I look at analysts' recommendations I find Strong Buy, Buy and Hold recommendations. The consensus recommendation would be a Buy. The 12 month stock price consensus is $89.97. This implies a total return of 15.855 with 13.53% from capital gains and 2.32% from dividends based on a current stock price of $79.25.
Hot Earnings on Post Analyst says that the consensus calls are at 2.3 which is a buy recommendations from 18 analysts with 6 Buys and 12 Holds and 0 Sells. David Galor at Oracle Examiner gives some technical analysis on this stock. Vick Brown on Economics and Money says that the Relative Strength Index shows that the stock is neither overbought nor oversold. See what analysts are saying about this company on Stock Chase. The reviews for this stock are mixed.
Medtronic is the world's leading medical technology company, pioneering device-based therapies that restore health, extend life and alleviate pain. Primary products include those for bradycardia pacing, tachyarrhythmia management, atrial fibrillation management, among others. Medtronic operates its business in one reportable segment, that of manufacturing and selling device-based medical therapies. The company does business in more than 120 countries. The company's product lines include cardiac rhythm management, neurological and spinal, vascular and cardiac surgery. Its web site is here Medtronic PLC.
The last stock I wrote about was about was Canadian Pacific Railway (TSX-CP, NYSE-CP)... learn more. The next stock I will write about will be Equitable Group Inc. (TSX-EQB, OTC-EQGPF)... learn more on Friday, October 27, 2017 around 5 pm. Tomorrow on my other blog I will write about Money Show 2017 - Ryan Irvine 4.... learn more on Thursday, October 26, 2017 around 5 pm.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Monday, October 23, 2017
Canadian Pacific Railway
Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. I think that the current stock price by all my testing is pointing to a current expensive price. See my spreadsheet on Canadian Pacific Railway.
I do not own this stock of Canadian Pacific Railway (TSX-CP, NYSE-CP), but I used to. It is a stock I held from 1987 to 1999 so I am following it. I also held it 2006 to 2011. I decided in 2011 to have only one railway stock and chose CN as my railway stock.
What I noticed in updating my spreadsheet was that the Return on Equity (ROE) was quite high at 34.6%. Remember that the ROE has too parts. It is using Net Income and Book Value or Equity. A rising ROE is good if it is because of rising earnings. It is best when both book value and earnings are going up. However, in this case it is high because of dropping book value or equity. However earnings did go up.
Book Value change over the past 3 years is -16.53%, -7.19% and 0.87%. The changes to Net Income (or earnings) over the past 3 years is 68.69%, -8.40% and 18.27%. This is not the best situation. But it points to the fact that ROE is not as good as it first appears to be.
The other thing to point to is that earnings not as good as they might seem because of lower ROE on Comprehensive Income. For 2016 ROE on Comprehensive Income is at 27.6%. This is a lot lower than the 35% ROE on Net Income. What is best is when the Comprehensive Income is nearly the same as Net Income. It then confirms the quality of the Net Income. It is lower it is suggesting that the Net Income may not be a good as it appears.
Another thing is that the company is buying back shares. I must admit I am not a fan of this move. If they cannot think of anything to invest in, I would rather than pay a special dividend rather than buy back shares. Shares have decrease by 2.96% and 0.61% over the past 5 and 10 years.
This means you should look at things like Revenue and not Revenue per share. For example, Revenue is up by 3.78% and 3.12% over the past 5 and 10 years. Revenue per Share is up by 6.94% and 3.75% per year over the past 5 and 10 years. The real growth is showing in Revenue.
Buying back shares tends to make the EPS look better than it actually is. EPS is up by 26.1% and 7.8% per year over the past 5 and 10 years. The growth in net income is up by 22.9% and 7.2% per year over the past 5 and 10 years. The growth is still good, but not quite as good as it seems. The other point is that earnings are up just recently. If you compared 5 year running growth over the past 5 and 10 years, the growth in EPS is up by 11% and 7.8% per year. The growth in Net Income is up by 11.2% and 8.1% per year over the past 5 and 10 years.
The 5 year low, median and high median Price/Earnings per Share Ratios are 20.13, 24.52 and 28.92. The corresponding 10 year values are 13.97, 17.01 and 20.06. The historical ones are 11.38, 13.79 and 16.67. It would seem that a lot of the recent growth in stock price is due to rising P/E Ratios. The current P/E Ratio is 17.93 based on a stock price of $224.16 and 2017 EPS estimate of $12.50. This stock price testing would suggest that the stock price could still be reasonable.
I get a Graham Price of $103.90. The 10 year low, median and high median Price/Graham Price Ratios are 1.28, 1.63 and 1.94. The current P/GP Ratio is 2.16 based on a stock price of $224.16. This stock price testing suggests that the stock price is relatively expensive.
The 10 year median Price/Book Value per Share Ratio is 2.50. The current P/B Ratio is 5.84 a value some 133% higher. The current P/B Ratio is based on Book Value of $5,563M, BVPS of $38.38 and a stock price of $224.16. This stock price testing suggests that the stock price is relatively expensive. Note that a P/B Ratio is 5.84 is a high one.
The historical median dividend yield is 1.47%. The current dividend yield is 1 % based on dividends of $2.25 and a stock price of $224.16. The current dividend yield is 31.7% lower than the historical one. This stock price testing suggests that the stock price is relatively expensive.
The 10 year median Price/Sales (Revenue) Ratio is 2.67. The current P/S Ratio is 4.98 based on 2017 Revenue estimate of $6,531M, Revenue per Share of $45.04 and a stock price of $224.16. The current P/S Ratio is some 86% higher than the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
When I look at analysts' recommendations I find Strong Buy, Buy and Hold recommendations. The consensus would be a Buy. The 12 months stock price target is $235.00. This implies a total return of 5.84% with 4.84% from capital gains and 1% from dividends based on a current price of $224.16.
David Jagielski on Motley Fool say that the company's good results was due to currency exchange and currency exchange gains in one quarter and show up as a loss in the next. Charles Fournier on Seeking Alpha does a report on this stock and thinks it remains an attractive long-term investment. Erica Schwartz on Dispatch Tribunal talks about recent analysts research. She noted some upgrades and some downgrades. See what analysts are saying on Stock Chase.
This company is a transcontinental railway operating in Canada and the U.S. Its rail network serves the principal centers of Canada, from Montreal to Vancouver and the U.S. Northeast and Midwest regions Alliances with other carriers extend its market reach throughout the U.S. and into Mexico. Canadian Pacific Solutions provides logistics and supply chain expertise. Its web site is here Canadian Pacific Railway.
The last stock I wrote about was about was Trigon Metals Inc. (TSX-TM, OTC-PNTZF)... learn more. The next stock I will write about will be Medtronic Inc. (NYSE-MDT)... learn more on Wednesday 25, 20157 around 5 pm. Tomorrow on my other blog I will write about Money Show 2017 - Ryan Irvine.3.... learn more on Tuesday, October 24, 2017 around 5 pm.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
I do not own this stock of Canadian Pacific Railway (TSX-CP, NYSE-CP), but I used to. It is a stock I held from 1987 to 1999 so I am following it. I also held it 2006 to 2011. I decided in 2011 to have only one railway stock and chose CN as my railway stock.
What I noticed in updating my spreadsheet was that the Return on Equity (ROE) was quite high at 34.6%. Remember that the ROE has too parts. It is using Net Income and Book Value or Equity. A rising ROE is good if it is because of rising earnings. It is best when both book value and earnings are going up. However, in this case it is high because of dropping book value or equity. However earnings did go up.
Book Value change over the past 3 years is -16.53%, -7.19% and 0.87%. The changes to Net Income (or earnings) over the past 3 years is 68.69%, -8.40% and 18.27%. This is not the best situation. But it points to the fact that ROE is not as good as it first appears to be.
The other thing to point to is that earnings not as good as they might seem because of lower ROE on Comprehensive Income. For 2016 ROE on Comprehensive Income is at 27.6%. This is a lot lower than the 35% ROE on Net Income. What is best is when the Comprehensive Income is nearly the same as Net Income. It then confirms the quality of the Net Income. It is lower it is suggesting that the Net Income may not be a good as it appears.
Another thing is that the company is buying back shares. I must admit I am not a fan of this move. If they cannot think of anything to invest in, I would rather than pay a special dividend rather than buy back shares. Shares have decrease by 2.96% and 0.61% over the past 5 and 10 years.
This means you should look at things like Revenue and not Revenue per share. For example, Revenue is up by 3.78% and 3.12% over the past 5 and 10 years. Revenue per Share is up by 6.94% and 3.75% per year over the past 5 and 10 years. The real growth is showing in Revenue.
Buying back shares tends to make the EPS look better than it actually is. EPS is up by 26.1% and 7.8% per year over the past 5 and 10 years. The growth in net income is up by 22.9% and 7.2% per year over the past 5 and 10 years. The growth is still good, but not quite as good as it seems. The other point is that earnings are up just recently. If you compared 5 year running growth over the past 5 and 10 years, the growth in EPS is up by 11% and 7.8% per year. The growth in Net Income is up by 11.2% and 8.1% per year over the past 5 and 10 years.
The 5 year low, median and high median Price/Earnings per Share Ratios are 20.13, 24.52 and 28.92. The corresponding 10 year values are 13.97, 17.01 and 20.06. The historical ones are 11.38, 13.79 and 16.67. It would seem that a lot of the recent growth in stock price is due to rising P/E Ratios. The current P/E Ratio is 17.93 based on a stock price of $224.16 and 2017 EPS estimate of $12.50. This stock price testing would suggest that the stock price could still be reasonable.
I get a Graham Price of $103.90. The 10 year low, median and high median Price/Graham Price Ratios are 1.28, 1.63 and 1.94. The current P/GP Ratio is 2.16 based on a stock price of $224.16. This stock price testing suggests that the stock price is relatively expensive.
The 10 year median Price/Book Value per Share Ratio is 2.50. The current P/B Ratio is 5.84 a value some 133% higher. The current P/B Ratio is based on Book Value of $5,563M, BVPS of $38.38 and a stock price of $224.16. This stock price testing suggests that the stock price is relatively expensive. Note that a P/B Ratio is 5.84 is a high one.
The historical median dividend yield is 1.47%. The current dividend yield is 1 % based on dividends of $2.25 and a stock price of $224.16. The current dividend yield is 31.7% lower than the historical one. This stock price testing suggests that the stock price is relatively expensive.
The 10 year median Price/Sales (Revenue) Ratio is 2.67. The current P/S Ratio is 4.98 based on 2017 Revenue estimate of $6,531M, Revenue per Share of $45.04 and a stock price of $224.16. The current P/S Ratio is some 86% higher than the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
When I look at analysts' recommendations I find Strong Buy, Buy and Hold recommendations. The consensus would be a Buy. The 12 months stock price target is $235.00. This implies a total return of 5.84% with 4.84% from capital gains and 1% from dividends based on a current price of $224.16.
David Jagielski on Motley Fool say that the company's good results was due to currency exchange and currency exchange gains in one quarter and show up as a loss in the next. Charles Fournier on Seeking Alpha does a report on this stock and thinks it remains an attractive long-term investment. Erica Schwartz on Dispatch Tribunal talks about recent analysts research. She noted some upgrades and some downgrades. See what analysts are saying on Stock Chase.
This company is a transcontinental railway operating in Canada and the U.S. Its rail network serves the principal centers of Canada, from Montreal to Vancouver and the U.S. Northeast and Midwest regions Alliances with other carriers extend its market reach throughout the U.S. and into Mexico. Canadian Pacific Solutions provides logistics and supply chain expertise. Its web site is here Canadian Pacific Railway.
The last stock I wrote about was about was Trigon Metals Inc. (TSX-TM, OTC-PNTZF)... learn more. The next stock I will write about will be Medtronic Inc. (NYSE-MDT)... learn more on Wednesday 25, 20157 around 5 pm. Tomorrow on my other blog I will write about Money Show 2017 - Ryan Irvine.3.... learn more on Tuesday, October 24, 2017 around 5 pm.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Friday, October 20, 2017
Trigon Metals Inc.
Sound bite for Twitter and StockTwits is: Penny Mining Stock. I am following this for fun. I have not recommendation. See my spreadsheet on Trigon Metals Inc .
I own this stock of Kombat Copper Inc. (TSX-KBT, OTC-PNTZF) which is now Trigon Metals Inc. (TSX-TM, OTC-PNTZF). I am following this stock because I own it. I am following it because I am interested in how it all will turn out.
The first thing to notice is shares have increased at an astounding rate. Over the past 5 and 10 years outstanding shares have increase by 45 and 31% per year or in total 4075% and 2585%. In 2017 outstanding shares grew by 25% and have g5rowth by almost 9% so far this year. The stock has been consolidated twice.
I bought this stock as Tathacus Resources Ltd (TSX-TTC). In 2011 there was a reverse takeover and company was Pan Terra Industries Inc. May 2, 2012 the name was changed from Pan Terra Industries (TSX-PNT) to Kombat Copper Inc. (TSX-KBT). On December 22, 2016 the stock changed its name and from Kombat Copper Inc. (TSX-KBT, OTC-PNTZF) to Trigon Metals Inc. (TSX-TM, OTC-PNTZF). The reason I have not sold is that the stock is worth so little. The current value of my shares is $2.10.
This company has not had any revenue since 2010. Most of the years they have had earning losses and all the previous 10 years there are earning losses. There is no positive cash flow. About the only good thing is that there is a positive book value.
Debt ratios have varied. It has mostly had reasonable Liquidity Ratios expect for 2009 when it was 0.22. It has to be at 1.00 for current assets to cover current liabilities. The Liquidity Ratio for the last financial year ending in March 2017 was 1.49. The Debt Ratios has also varied a lot, but the most recent annual statement it was 2.50. Leverage and Debt/Equity Ratios are also reasonable with the one for the last financial year at 1.66 and 0.66 respectively.
The only check to make on price is the Price/Book Value per Share Ratio. The 10 year median ratio is 3.24 and the current one is 18.10. The current one is some 458% higher than the 10 year ratio. However, both ratios are high. A ratio of 18.10 is extraordinarily high. The P/B Ratio of 18.10 is based on a Book Value of .449M, BVPS of $ 0.02 and a stock price of $0.41. This test would say that the stock price is relatively expensive; however this is a penny stock in mining.
There does not seem to be any analysts following this stock. This can hardly be a surprise. It is a penny stock in mining in Africa. So far it probably has not made any profit for investors. Whether it ever will is up for grabs.
Stephan Theron reports in Junior Mining Network that the company has received the environmental approvals required to commence exploration on the area targeted for open pit mining. Lockport Staff on Lockport Press gives some technical analysis of this company. From the new rooms at Market Wired we see that this company completed a non-brokered private placement financing of up to 3,333,333 units at a price of $0.30 per Unit for gross proceeds of up to $1,000,000.
Trigon Metals Inc. is engaged in acquisition, maintenance, exploration and development of mines and mineral properties in Namibia. Its web site is here Trigon Metals Inc .
The last stock I wrote about was about was Logistec Corp (TSX- LGT.B, OTC-LTKBF)... learn more. The next stock I will write about will be Canadian Pacific Railway (TSX-CP, NYSE-CP)... learn more on Monday, October 23, 2017 around 5 pm. Today on my other blog I will write about Money Show 2017 - Ryan Irvine 2... learn more on Friday, October 20, 2017 around 5 pm
Also, on my book blog I have put a review of the book Maximum Canada by Doug Saunders learn more...
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
I own this stock of Kombat Copper Inc. (TSX-KBT, OTC-PNTZF) which is now Trigon Metals Inc. (TSX-TM, OTC-PNTZF). I am following this stock because I own it. I am following it because I am interested in how it all will turn out.
The first thing to notice is shares have increased at an astounding rate. Over the past 5 and 10 years outstanding shares have increase by 45 and 31% per year or in total 4075% and 2585%. In 2017 outstanding shares grew by 25% and have g5rowth by almost 9% so far this year. The stock has been consolidated twice.
I bought this stock as Tathacus Resources Ltd (TSX-TTC). In 2011 there was a reverse takeover and company was Pan Terra Industries Inc. May 2, 2012 the name was changed from Pan Terra Industries (TSX-PNT) to Kombat Copper Inc. (TSX-KBT). On December 22, 2016 the stock changed its name and from Kombat Copper Inc. (TSX-KBT, OTC-PNTZF) to Trigon Metals Inc. (TSX-TM, OTC-PNTZF). The reason I have not sold is that the stock is worth so little. The current value of my shares is $2.10.
This company has not had any revenue since 2010. Most of the years they have had earning losses and all the previous 10 years there are earning losses. There is no positive cash flow. About the only good thing is that there is a positive book value.
Debt ratios have varied. It has mostly had reasonable Liquidity Ratios expect for 2009 when it was 0.22. It has to be at 1.00 for current assets to cover current liabilities. The Liquidity Ratio for the last financial year ending in March 2017 was 1.49. The Debt Ratios has also varied a lot, but the most recent annual statement it was 2.50. Leverage and Debt/Equity Ratios are also reasonable with the one for the last financial year at 1.66 and 0.66 respectively.
The only check to make on price is the Price/Book Value per Share Ratio. The 10 year median ratio is 3.24 and the current one is 18.10. The current one is some 458% higher than the 10 year ratio. However, both ratios are high. A ratio of 18.10 is extraordinarily high. The P/B Ratio of 18.10 is based on a Book Value of .449M, BVPS of $ 0.02 and a stock price of $0.41. This test would say that the stock price is relatively expensive; however this is a penny stock in mining.
There does not seem to be any analysts following this stock. This can hardly be a surprise. It is a penny stock in mining in Africa. So far it probably has not made any profit for investors. Whether it ever will is up for grabs.
Stephan Theron reports in Junior Mining Network that the company has received the environmental approvals required to commence exploration on the area targeted for open pit mining. Lockport Staff on Lockport Press gives some technical analysis of this company. From the new rooms at Market Wired we see that this company completed a non-brokered private placement financing of up to 3,333,333 units at a price of $0.30 per Unit for gross proceeds of up to $1,000,000.
Trigon Metals Inc. is engaged in acquisition, maintenance, exploration and development of mines and mineral properties in Namibia. Its web site is here Trigon Metals Inc .
The last stock I wrote about was about was Logistec Corp (TSX- LGT.B, OTC-LTKBF)... learn more. The next stock I will write about will be Canadian Pacific Railway (TSX-CP, NYSE-CP)... learn more on Monday, October 23, 2017 around 5 pm. Today on my other blog I will write about Money Show 2017 - Ryan Irvine 2... learn more on Friday, October 20, 2017 around 5 pm
Also, on my book blog I have put a review of the book Maximum Canada by Doug Saunders learn more...
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Wednesday, October 18, 2017
Logistec Corp
Sound bite for Twitter and StockTwits is: Dividend growth Industrial. On a relative basis the current stock price is expensive. This could be cured if EPS rises strongly again. The stock price has been in a $35 to $45 range since mid-2014. See my spreadsheet on Logistec Corp.
I do not own this stock of Logistec Corp (TSX- LGT.B, OTC-LTKBF). I got this stock from Dividend Growth Investing and Retirement blogger's all-star spreadsheet for March 2017. I needed a new stock to follow as I have lost a number this year with stocks merging like Veresen Inc. with Pembina or like Canadian Oil Sands being bought by Suncor, and with stocks like Canam Group Inc. (TSX: CAM) going private.
One thing to mention is that I cannot find any analysts following this stock. This is good and bad. This stock has a market cap of less than 500M. It makes it a small cap. It is not in the TSX Composite Index. Small caps have room to grow and you can make money on them, especially around the time they do get noticed and do get into the TSX Composite Index.
First shares have been declining by 1.4% and .8% per year over the past 5 and 10 years. So per share growth looks better than it actually is. For example, Revenue has grown by 8.9% and 4.7% per year over the past 5 and 10 years but Revenue per Share has grown by 10.4% and 5.6% per year over the past 5 and 10 years.
The most important one of EPS has not grown was well as it might appear. Growth in Net Income is 1.4% and 5.9% per year over the past 5 and 10 years. What you compare this to is growth in Basic EPS (not diluted) where growth is 2.8% and 6.8% per year. By the way, growth in Diluted EPS is 1.9% and 6.4% per year over the past 5 and 10 years.
The other thing to mention about earnings is that the 5 year running growth is at 14.6 and 14.9% per year over the past 5 and 10 years. What this tells you is that the in the case of the 5 year running over the past 5 years that the last 5 years had overall better growth than 6 to 10 years ago. EPS has been depressed lately. EPS fell 4.9% and 36.9% in the last 2 years. Growth seems to be up in the first two quarters of 2017 with a 12 month EPS of $1.66 to the end of the second quarter. This is some 12% higher than last year.
This is a dividend growth company. They have not raised the dividends every year, but most years, especially in later years. Since 2005 they have only not increased their dividends in only one year and that was in 2009.
Dividends have been low to moderate and growth in dividends has been moderate. The current dividend yield is just 0.95%. The 5 year, 10 year and historical median yields are 0.85%, 1.62% and 2.10%. Dividend yields have been higher in the past than now. The dividend growth over the past 5 years is at 11.8% and 8.8% per year. The most recent increase was for 9.9% and it was in 2017.
This stock has two classes. The main one on the TSX is Class B. The two classes are Class A Common Shares with 30 votes per share, convertible into Class B Subordinate Voting Shares at the holder's discretion and Class B Subordinate Voting Shares, with one vote per share, entitling their holders to receive a dividend equal to 110% of any dividend declared on each Class A Common Share.
This stock has good debt ratios. The Liquidity Ratio for 2016 is 2.51 with a 5 year median of 2.25. The Debt Ratio for 2016 is 2.33 with a 5 year median of 2.67. The Leverage and Debt/Equity Ratios for 2016 are 1.77 and 0.76 with 5 year medians of 1.73 and 0.64 respectively. Good debt ratios are important for small companies, especially if earnings can be volatile.
The Return on Equity was below 10% once in the past 5 years and twice in the past 10 years. The year of 2016 was not good for this company with an ROE of 9.4%. The 5 year median ROE is 15.4%. The Comprehensive Income is close with a 2016 ROE of 9.1% and a 5 year median of 18.5%.
The 5 year low, median and high median Price/Earnings per Share Ratios are 9.86, 13.23 and 16.60. The 10 year corresponding ratios are 7.08, 8.85 and 11.62. The Historical ones are 7.49, 10.15 and 12.16. Small caps often have low P/E Ratios. The current P/E Ratio is 22.19 based on a stock price of $39.06 and latest 12 month EPS of $1.66. This stock price testing suggests that the stock price is relatively expensive. While a P/E Ratio of 22 is high for a small cap, it is rather a median one for a large cap.
I get a Graham Price of $24.75. The 10 year low, median and high median Price/Graham Price Ratios are 0.58, 0.80 and 1.02. The current P/GP Ratio is 1.58 based on a stock price of $39.06. This stock price testing suggests that the stock price is relatively expensive. A P/GP Ratio of 1.58 is high ratio for any stock.
The 10 year median Price/Book Value per Share Ratio is 1.46. The current P/B Ratio is 2.52 a value some 73% higher. The current ratio is based on Book Value of $199M, BVPS of $16.43 and a stock price of $39.06. This stock price testing suggests that the stock price is relatively expensive. On an absolute basis, a P/E Ratio of 1.46 is a good one, but one of 2.52 is a high one.
The current dividend yield is 0.93%. The historical dividend yield is 2.10% a value some 56% higher. The current Dividend Yield is based on dividends of $0.36 and a stock price of $39.06. This stock price testing suggests that the stock price is relatively expensive. I generally would not buy a stock with a dividend yield less than 1%.
The 10 year median Price/Sales (Revenue) Ratio is 0.65. The current P/S Ratio is 1.40 a value some 115% higher. The current P/S Ratio is based last 12 months Revenue of $360M, Revenue per Share of 29.68 and a stock price of $39.06. This stock price testing suggests that the stock price is relatively expensive.
There is a new release on Cision about this company acquiring a 51% of the shares of FER-PAL Construction Ltd. Patrick M. Pritchard on Seeking Alpha gives a review of this company. He also thinks that it is currently overpriced.
Logistec Corporation provides cargo handling and other services to a range of marine, industrial and municipal customers. The Company operates through two segments: marine services and environmental services.. Its web site is here Logistec Corp.
The last stock I wrote about was about was Teck Resources Ltd. (TSX-TCK.B, NYSE-TCK)... learn more. The next stock I will write about will be Trigon Metals Inc. (TSX-TM, OTC-PNTZF)... learn more on Friday, October 20, 2017 around 5 pm. Tomorrow on my other blog I will write about Money Show 2017 - Ryan Irvine... learn more on Thursday, October 17, 2017 around 5 pm
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
I do not own this stock of Logistec Corp (TSX- LGT.B, OTC-LTKBF). I got this stock from Dividend Growth Investing and Retirement blogger's all-star spreadsheet for March 2017. I needed a new stock to follow as I have lost a number this year with stocks merging like Veresen Inc. with Pembina or like Canadian Oil Sands being bought by Suncor, and with stocks like Canam Group Inc. (TSX: CAM) going private.
One thing to mention is that I cannot find any analysts following this stock. This is good and bad. This stock has a market cap of less than 500M. It makes it a small cap. It is not in the TSX Composite Index. Small caps have room to grow and you can make money on them, especially around the time they do get noticed and do get into the TSX Composite Index.
First shares have been declining by 1.4% and .8% per year over the past 5 and 10 years. So per share growth looks better than it actually is. For example, Revenue has grown by 8.9% and 4.7% per year over the past 5 and 10 years but Revenue per Share has grown by 10.4% and 5.6% per year over the past 5 and 10 years.
The most important one of EPS has not grown was well as it might appear. Growth in Net Income is 1.4% and 5.9% per year over the past 5 and 10 years. What you compare this to is growth in Basic EPS (not diluted) where growth is 2.8% and 6.8% per year. By the way, growth in Diluted EPS is 1.9% and 6.4% per year over the past 5 and 10 years.
The other thing to mention about earnings is that the 5 year running growth is at 14.6 and 14.9% per year over the past 5 and 10 years. What this tells you is that the in the case of the 5 year running over the past 5 years that the last 5 years had overall better growth than 6 to 10 years ago. EPS has been depressed lately. EPS fell 4.9% and 36.9% in the last 2 years. Growth seems to be up in the first two quarters of 2017 with a 12 month EPS of $1.66 to the end of the second quarter. This is some 12% higher than last year.
This is a dividend growth company. They have not raised the dividends every year, but most years, especially in later years. Since 2005 they have only not increased their dividends in only one year and that was in 2009.
Dividends have been low to moderate and growth in dividends has been moderate. The current dividend yield is just 0.95%. The 5 year, 10 year and historical median yields are 0.85%, 1.62% and 2.10%. Dividend yields have been higher in the past than now. The dividend growth over the past 5 years is at 11.8% and 8.8% per year. The most recent increase was for 9.9% and it was in 2017.
This stock has two classes. The main one on the TSX is Class B. The two classes are Class A Common Shares with 30 votes per share, convertible into Class B Subordinate Voting Shares at the holder's discretion and Class B Subordinate Voting Shares, with one vote per share, entitling their holders to receive a dividend equal to 110% of any dividend declared on each Class A Common Share.
This stock has good debt ratios. The Liquidity Ratio for 2016 is 2.51 with a 5 year median of 2.25. The Debt Ratio for 2016 is 2.33 with a 5 year median of 2.67. The Leverage and Debt/Equity Ratios for 2016 are 1.77 and 0.76 with 5 year medians of 1.73 and 0.64 respectively. Good debt ratios are important for small companies, especially if earnings can be volatile.
The Return on Equity was below 10% once in the past 5 years and twice in the past 10 years. The year of 2016 was not good for this company with an ROE of 9.4%. The 5 year median ROE is 15.4%. The Comprehensive Income is close with a 2016 ROE of 9.1% and a 5 year median of 18.5%.
The 5 year low, median and high median Price/Earnings per Share Ratios are 9.86, 13.23 and 16.60. The 10 year corresponding ratios are 7.08, 8.85 and 11.62. The Historical ones are 7.49, 10.15 and 12.16. Small caps often have low P/E Ratios. The current P/E Ratio is 22.19 based on a stock price of $39.06 and latest 12 month EPS of $1.66. This stock price testing suggests that the stock price is relatively expensive. While a P/E Ratio of 22 is high for a small cap, it is rather a median one for a large cap.
I get a Graham Price of $24.75. The 10 year low, median and high median Price/Graham Price Ratios are 0.58, 0.80 and 1.02. The current P/GP Ratio is 1.58 based on a stock price of $39.06. This stock price testing suggests that the stock price is relatively expensive. A P/GP Ratio of 1.58 is high ratio for any stock.
The 10 year median Price/Book Value per Share Ratio is 1.46. The current P/B Ratio is 2.52 a value some 73% higher. The current ratio is based on Book Value of $199M, BVPS of $16.43 and a stock price of $39.06. This stock price testing suggests that the stock price is relatively expensive. On an absolute basis, a P/E Ratio of 1.46 is a good one, but one of 2.52 is a high one.
The current dividend yield is 0.93%. The historical dividend yield is 2.10% a value some 56% higher. The current Dividend Yield is based on dividends of $0.36 and a stock price of $39.06. This stock price testing suggests that the stock price is relatively expensive. I generally would not buy a stock with a dividend yield less than 1%.
The 10 year median Price/Sales (Revenue) Ratio is 0.65. The current P/S Ratio is 1.40 a value some 115% higher. The current P/S Ratio is based last 12 months Revenue of $360M, Revenue per Share of 29.68 and a stock price of $39.06. This stock price testing suggests that the stock price is relatively expensive.
There is a new release on Cision about this company acquiring a 51% of the shares of FER-PAL Construction Ltd. Patrick M. Pritchard on Seeking Alpha gives a review of this company. He also thinks that it is currently overpriced.
Logistec Corporation provides cargo handling and other services to a range of marine, industrial and municipal customers. The Company operates through two segments: marine services and environmental services.. Its web site is here Logistec Corp.
The last stock I wrote about was about was Teck Resources Ltd. (TSX-TCK.B, NYSE-TCK)... learn more. The next stock I will write about will be Trigon Metals Inc. (TSX-TM, OTC-PNTZF)... learn more on Friday, October 20, 2017 around 5 pm. Tomorrow on my other blog I will write about Money Show 2017 - Ryan Irvine... learn more on Thursday, October 17, 2017 around 5 pm
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Monday, October 16, 2017
Teck Resources Ltd
Sound bite for Twitter and StockTwits is: Dividend paying material stock. I would think that this stock price is relative cheap at this point. However this stock has had a lot of ups and down in price and it may be more at a median price. It is a materials stock so it is risky. See my spreadsheet on Teck Resources Ltd.
I do not own this stock of Teck Resources Ltd. (TSX-TECK.B, NYSE-TECK). The time to buy this stock is when it cuts its dividend. For example, I bought this stock in 2008 and sold in 2009. I bought this stock because the company purchased Fording Canadian Coal Trust at exactly the wrong time and got into financial difficulties and the stock price dropped off a cliff as they had to cut dividends. When the stock recovered somewhat in 2009, I sold for a profit.
Dividends on this stock have swung wildly. They have been suspended as in 2009 and have also been increased by 200% as in 2011. Lately they have been on their way down again with a decrease in 77.8% in 2015, but then they are up some 50% in 2017. However, the dividend to be paid in September 2017 is 50% of that paid in June 2017. They are certainly not dividends you can count on. Every time they cut or suspend the dividend the share price crashes. Then it pops right back up when dividends are restarted or increased.
The company had a good year in 2016 and is expected to have an even better year in 2017. The second quarterly report seems to support this. For example the EPS was $1.78 in 2016 up by 141% from a loss of $4.29 in 2015. For 2014 is expected to up another162% to $4.66. The 12 month EPS to the end of the second quarter is $3.55. It seems well on its way to a good 2017 in EPS.
This company has very good debt ratios. The Liquidity Ratio for 2016 is 2.16 and the 5 year median is 2.67. The Debt Ratio is 3.64 with a 5 year median of 2.08. Leverage and Debt/Equity Ratios are 1.38 and 0.38 with 5 year median of 1.92 and 0.92. Good debt ratios can get a company though the bad times. These are good ratios for a material type stock to have as this business does have its ups and downs.
The 5 year low, median and high median Price/Earnings per Share Ratios are 12.76, 17.78 and 22.80. The 10 year corresponding ratios are 7.89, 13.19 and 19.68. The historical ratios are 9.52, 13.19 and 19.68. The current P/E Ratio is 6.15 based on 2017 EPS estimate of $4.66 and a stock price of $28.66. This stock price testing suggests that the stock price is relatively cheap.
I get a Graham price of $57.90. The 10 year low, median and high median Price/Graham Price Ratio is 0.56, 0.91 and 1.26. The current P/GP Ratio is 0.49 based on a stock price of $28.66. This stock price testing suggests that the stock price is relatively cheap.
The 10 year Price/Book Value per Share Ratio is 1.03. The current P/B Ratio is 0.90 based on a stock price of $28.66, Book Value of $18,476M and BVPS of $31.98. The current P/B Ratio is some 13% below the 10 year ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. Also note that a stock is considered cheap if it is selling below the book value; that is with a P/B Ratio of less than 1.00
The historical dividend yield is 1.58%. The current dividend yield is 0.52% a value some 67% lower. The current dividend yield is based on dividends of $0.15 and a stock price of $28.66. This stock price testing suggests that the stock price is relatively expensive. The problem with this test is that the dividends varied a lot over time. They have declined by some 30% per year over the past 5 years. This may not be a good test for this stock at this time.
When I look at analysts' recommendations, I find Strong Buy, Buy, Hold and Underperform recommendations. The consensus is a Buy. The 12 month stock price consensus is $34.57. This implies a total return of 21.14% with 20.62% from capital gains and 0.52% from dividends based on a current price of $28.66.
The 10 year median Price/Sales (Revenue) Ratio is 1.89. The current P/S Ratio is 1.40 a values some 26% lower. The current P/S Ratio is based on Revenue estimate for 2017 of $11,386M, Revenue per Share of $20.48 and a stock price of $28.66. This stock price testing suggests that the stock price is relatively cheap.
Jason Phillips on Motley Fool likes this stock. The Canadian Press has an article on CBC News about Teck being fined for polluting a B.C. Waterway. Edgar Ambartsoumian on Seeking Alpha does an analysis of this stock. He talks about using it as an option play. See what analysts are saying about this stock on Stock Chase. They have mixed views.
Teck is a diversified resource company involved in mining and mineral development with major business units focused on copper, metallurgical coal, zinc, gold and energy. This company has interests in several oil sands developments. The company explores for resources in the Americas, the Asia Pacific Region, Europe and Africa. Its web site is here Teck Resources Ltd.
The last stock I wrote about was about was HNZ Group Inc. (TSX-HNZ, OTC- CDHPF)... learn more. The next stock I will write about will be Logistec Corp (TSX- LGT.B, OTC-LTKBF)... learn more on Wednesday, October 18, 2017 around 5 pm. Tomorrow on my other blog I will write about Money Show 2017 - Peter Hodson... learn more on Thursday, October 17, 2017 around 5 pm.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
I do not own this stock of Teck Resources Ltd. (TSX-TECK.B, NYSE-TECK). The time to buy this stock is when it cuts its dividend. For example, I bought this stock in 2008 and sold in 2009. I bought this stock because the company purchased Fording Canadian Coal Trust at exactly the wrong time and got into financial difficulties and the stock price dropped off a cliff as they had to cut dividends. When the stock recovered somewhat in 2009, I sold for a profit.
Dividends on this stock have swung wildly. They have been suspended as in 2009 and have also been increased by 200% as in 2011. Lately they have been on their way down again with a decrease in 77.8% in 2015, but then they are up some 50% in 2017. However, the dividend to be paid in September 2017 is 50% of that paid in June 2017. They are certainly not dividends you can count on. Every time they cut or suspend the dividend the share price crashes. Then it pops right back up when dividends are restarted or increased.
The company had a good year in 2016 and is expected to have an even better year in 2017. The second quarterly report seems to support this. For example the EPS was $1.78 in 2016 up by 141% from a loss of $4.29 in 2015. For 2014 is expected to up another162% to $4.66. The 12 month EPS to the end of the second quarter is $3.55. It seems well on its way to a good 2017 in EPS.
This company has very good debt ratios. The Liquidity Ratio for 2016 is 2.16 and the 5 year median is 2.67. The Debt Ratio is 3.64 with a 5 year median of 2.08. Leverage and Debt/Equity Ratios are 1.38 and 0.38 with 5 year median of 1.92 and 0.92. Good debt ratios can get a company though the bad times. These are good ratios for a material type stock to have as this business does have its ups and downs.
The 5 year low, median and high median Price/Earnings per Share Ratios are 12.76, 17.78 and 22.80. The 10 year corresponding ratios are 7.89, 13.19 and 19.68. The historical ratios are 9.52, 13.19 and 19.68. The current P/E Ratio is 6.15 based on 2017 EPS estimate of $4.66 and a stock price of $28.66. This stock price testing suggests that the stock price is relatively cheap.
I get a Graham price of $57.90. The 10 year low, median and high median Price/Graham Price Ratio is 0.56, 0.91 and 1.26. The current P/GP Ratio is 0.49 based on a stock price of $28.66. This stock price testing suggests that the stock price is relatively cheap.
The 10 year Price/Book Value per Share Ratio is 1.03. The current P/B Ratio is 0.90 based on a stock price of $28.66, Book Value of $18,476M and BVPS of $31.98. The current P/B Ratio is some 13% below the 10 year ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. Also note that a stock is considered cheap if it is selling below the book value; that is with a P/B Ratio of less than 1.00
The historical dividend yield is 1.58%. The current dividend yield is 0.52% a value some 67% lower. The current dividend yield is based on dividends of $0.15 and a stock price of $28.66. This stock price testing suggests that the stock price is relatively expensive. The problem with this test is that the dividends varied a lot over time. They have declined by some 30% per year over the past 5 years. This may not be a good test for this stock at this time.
When I look at analysts' recommendations, I find Strong Buy, Buy, Hold and Underperform recommendations. The consensus is a Buy. The 12 month stock price consensus is $34.57. This implies a total return of 21.14% with 20.62% from capital gains and 0.52% from dividends based on a current price of $28.66.
The 10 year median Price/Sales (Revenue) Ratio is 1.89. The current P/S Ratio is 1.40 a values some 26% lower. The current P/S Ratio is based on Revenue estimate for 2017 of $11,386M, Revenue per Share of $20.48 and a stock price of $28.66. This stock price testing suggests that the stock price is relatively cheap.
Jason Phillips on Motley Fool likes this stock. The Canadian Press has an article on CBC News about Teck being fined for polluting a B.C. Waterway. Edgar Ambartsoumian on Seeking Alpha does an analysis of this stock. He talks about using it as an option play. See what analysts are saying about this stock on Stock Chase. They have mixed views.
Teck is a diversified resource company involved in mining and mineral development with major business units focused on copper, metallurgical coal, zinc, gold and energy. This company has interests in several oil sands developments. The company explores for resources in the Americas, the Asia Pacific Region, Europe and Africa. Its web site is here Teck Resources Ltd.
The last stock I wrote about was about was HNZ Group Inc. (TSX-HNZ, OTC- CDHPF)... learn more. The next stock I will write about will be Logistec Corp (TSX- LGT.B, OTC-LTKBF)... learn more on Wednesday, October 18, 2017 around 5 pm. Tomorrow on my other blog I will write about Money Show 2017 - Peter Hodson... learn more on Thursday, October 17, 2017 around 5 pm.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Friday, October 13, 2017
HNZ Group Inc.
Sound bite for Twitter and StockTwits is: Cheap Industrial Stock. The stock is probably cheap but there is risk here. A fact in their favour is their good debt position. See my spreadsheet on HNZ Group Inc.
I do not own this stock of HNZ Group Inc. (TSX-HNZ, OTC-CDHPF). Canadian Helicopters Group Inc. has come up in Daily Buy and Sell Advisor of MPL Communications. Dividend Ninja Blogger also mentioned this stock in a blog entry talking about High Yield Canadian Stocks on his Blog. Richard Morrison wrote about small caps in the Financial Post in February 2011. He was screening financially healthy, profitable, reasonably valued small companies. He got 18 of them, many were former income trusts. One of the 18 stocks was this stock.
Dividends have been suspended by the company. However, the company gives as its aim to provide shareholders with growth and dividends. So I expect dividends to be reintroduced at some point in the future. They probably cannot afford them at this time.
They are well situated with debt. They have no long term debt. The Liquidity Ratio for 2016 is 2.44 and it has a 5 year median of 2.15. The current ratio is 1.98. The Debt Ratio for 2016 is 4.48 with a 5 year median of 4.46 and a current one of 3.87. Leverage and Debt/Equity Ratios for 2016 are 1.29 and 0.29 with a 5 year median of 1.35 and 0.35 and current ones of $1.35 and 0.35. Good debt ratios can carry companies through the bad times.
The 5 year low, median and high median Price/Earnings per Share Ratios are 13.23, 14.60 and 15.96. The 10 year ratios are 4.45, 6.46 and 8.70. The current P/E Ratio is 116.36 based on a stock price of $12.80 and 2017 EPS estimate of $1.11. It is obvious that you cannot judge this stock price by this test. However, if you look at 2019 the EPS estimate is $0.99 and the P/E for a price of $12.80 is 12.93. This says the current price is relatively cheap.
I get a current Graham Price of $6.63. The 10 year low, median and high median Price/Graham Price Ratios are 0.48, 0.64 and 0.83. The current P/GP Ratio is 1.93 based on a stock price of $12.80. However, by 2019 the Graham Price is expected to be around $19.90 and that puts the current ratio at 0.64. By 2019 reckoning the stock price becomes reasonable and around the median.
The 10 year median Price/Book Value per Share Ratio is 1.01. The current P/B Ratio is 0.72 based on a Book Value of 430M, BVPS of $17.78 and a stock price of $12.80. This stock price testing suggests that the stock price is relatively cheap. This is probably the best way to judge this stock's price. Also, when the P/B Ratio is below 1.00 it means that the stock is selling below is theoretical breakup price.
The 10 year median Price/Sales (Revenue) Ratio is 1.02. The current P/S Ratio is 0.74 based on 2017 Revenue of $225M, Revenue per Share of $17.36 and a stock price of $12.80. The current P/S Ratio is some 28% lower than the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
Looking at estimates and ratios a few years in the future, like in 2019 as I have done is fraught with danger. The further in the future you use estimates the more likely they are to be wrong. However, the company is going through a tough time and the future should be better. We just do not know how much better.
When I look at analysts' recommendations, I find Buy (2) and Hold (2) recommendations. The consensus would be a Buy. The 12 month stock price is $15.63. This implies a total return of 22.11% all from capital gain as dividends have been suspended. This is based on a current stock price of $12.80.
Financial News Staff at Financial News Review says that the ROE is low, but the Liquidity Ratio is good. PR staff at Piedmont Register give some technical information on this stock. The RSI is at 45.01 which show it is neither overbought nor oversold. Last year Gary Lamphier wrote in the Edmonton Journal a good article about this company and its CEO Don Wall. This company is not well followed so there is limited analyst information on it.
HNZ Group Inc. is an international provider of helicopter transportation and related support services with fixed primary operations in Canada, Australia, New Zealand and regions of Southeast Asia. The group also delivers contracted on demand support in Afghanistan and Antarctica. Its web site is here HNZ Group Inc.
The last stock I wrote about was about was Enbridge Income Fund Holdings Inc. (TSX-ENF, OTC-EBGUF)... learn more. The next stock I will write about will be Teck Resources Ltd. (TSX-TCK.B, NYSE-TCK)... learn more on Monday, October 16, 2017 around 5 pm.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
I do not own this stock of HNZ Group Inc. (TSX-HNZ, OTC-CDHPF). Canadian Helicopters Group Inc. has come up in Daily Buy and Sell Advisor of MPL Communications. Dividend Ninja Blogger also mentioned this stock in a blog entry talking about High Yield Canadian Stocks on his Blog. Richard Morrison wrote about small caps in the Financial Post in February 2011. He was screening financially healthy, profitable, reasonably valued small companies. He got 18 of them, many were former income trusts. One of the 18 stocks was this stock.
Dividends have been suspended by the company. However, the company gives as its aim to provide shareholders with growth and dividends. So I expect dividends to be reintroduced at some point in the future. They probably cannot afford them at this time.
They are well situated with debt. They have no long term debt. The Liquidity Ratio for 2016 is 2.44 and it has a 5 year median of 2.15. The current ratio is 1.98. The Debt Ratio for 2016 is 4.48 with a 5 year median of 4.46 and a current one of 3.87. Leverage and Debt/Equity Ratios for 2016 are 1.29 and 0.29 with a 5 year median of 1.35 and 0.35 and current ones of $1.35 and 0.35. Good debt ratios can carry companies through the bad times.
The 5 year low, median and high median Price/Earnings per Share Ratios are 13.23, 14.60 and 15.96. The 10 year ratios are 4.45, 6.46 and 8.70. The current P/E Ratio is 116.36 based on a stock price of $12.80 and 2017 EPS estimate of $1.11. It is obvious that you cannot judge this stock price by this test. However, if you look at 2019 the EPS estimate is $0.99 and the P/E for a price of $12.80 is 12.93. This says the current price is relatively cheap.
I get a current Graham Price of $6.63. The 10 year low, median and high median Price/Graham Price Ratios are 0.48, 0.64 and 0.83. The current P/GP Ratio is 1.93 based on a stock price of $12.80. However, by 2019 the Graham Price is expected to be around $19.90 and that puts the current ratio at 0.64. By 2019 reckoning the stock price becomes reasonable and around the median.
The 10 year median Price/Book Value per Share Ratio is 1.01. The current P/B Ratio is 0.72 based on a Book Value of 430M, BVPS of $17.78 and a stock price of $12.80. This stock price testing suggests that the stock price is relatively cheap. This is probably the best way to judge this stock's price. Also, when the P/B Ratio is below 1.00 it means that the stock is selling below is theoretical breakup price.
The 10 year median Price/Sales (Revenue) Ratio is 1.02. The current P/S Ratio is 0.74 based on 2017 Revenue of $225M, Revenue per Share of $17.36 and a stock price of $12.80. The current P/S Ratio is some 28% lower than the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
Looking at estimates and ratios a few years in the future, like in 2019 as I have done is fraught with danger. The further in the future you use estimates the more likely they are to be wrong. However, the company is going through a tough time and the future should be better. We just do not know how much better.
When I look at analysts' recommendations, I find Buy (2) and Hold (2) recommendations. The consensus would be a Buy. The 12 month stock price is $15.63. This implies a total return of 22.11% all from capital gain as dividends have been suspended. This is based on a current stock price of $12.80.
Financial News Staff at Financial News Review says that the ROE is low, but the Liquidity Ratio is good. PR staff at Piedmont Register give some technical information on this stock. The RSI is at 45.01 which show it is neither overbought nor oversold. Last year Gary Lamphier wrote in the Edmonton Journal a good article about this company and its CEO Don Wall. This company is not well followed so there is limited analyst information on it.
HNZ Group Inc. is an international provider of helicopter transportation and related support services with fixed primary operations in Canada, Australia, New Zealand and regions of Southeast Asia. The group also delivers contracted on demand support in Afghanistan and Antarctica. Its web site is here HNZ Group Inc.
The last stock I wrote about was about was Enbridge Income Fund Holdings Inc. (TSX-ENF, OTC-EBGUF)... learn more. The next stock I will write about will be Teck Resources Ltd. (TSX-TCK.B, NYSE-TCK)... learn more on Monday, October 16, 2017 around 5 pm.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Wednesday, October 11, 2017
Enbridge Income Fund Holdings Inc.
Sound bite for Twitter and StockTwits is: Utility Income Fund. I would not invest in this fund. It is too complicated, the Income Fund has a negative Book Value and I own Enbridge Inc. which has an investment in this fund. Price would seem reasonable using my normal stock price testing, but I would not guarantee I values are the correct ones. See my spreadsheet on Enbridge Income Fund Holdings Inc.
I do not own this stock of Enbridge Income Fund Holdings Inc. (TSX-ENF, OTC-EBGUF). I have followed this stock for some time but I have not owned it. I do own Enbridge Inc. (TSX-ENB, NYSE-ENB). You would not want to invest in both this stock and Enbridge Inc. as Enbridge Inc. is invested in the fund this stock is invested in.
What I hate about this fund is that it is difficult to analyze. I am not the only one. I noticed in Morningstar they give Basic number of shares at 116 and diluted as 741. They really do not say what the diluted shares are but if you divide the diluted EPS by Net Income it is around 117. The Morningstar page is here. Actually the annual statements do say that the diluted is 741, but also give basic as 74 and 1585.
I am very focused on what I want from a stock's statements, but this one makes life difficult. It makes me spend far too much time trying to figure what where the information is that I want. Looking the 2017 quarterly statement they give a description of the changes to the outstanding units. Why cannot they not just tell you the final result?
When looking at this stock you not only have to look at the statements for Enbridge Income Fund Holdings, but also the underlying fund that it is invested in and this is the Enbridge Income Fund. As far as I can see it does not matter that Enbridge Income Fund Holdings Inc. has great debt ratios. It does matter that Enbridge Income Fund has awful ones. However, I do not believe the book value on the income fund is really negative.
For example, the Liquidity Ratio for ENF is 4.90 and the Debt Ratio is 26.29.The Liquidity Ratio for the Fund is 0.41 and the Debt Ratio is 0.81. This means that the current assets cannot cover the current liabilities and that the assets cannot over the liabilities. The Fund has a negative book value. A negative book value means that they have paid out more than they have earned.
There is also Enbridge Income Partnership LP and the Enbridge Commercial Trust. It is also very confusing. I do not like investments that complicated. It is too easy to misjudge or make a mistake when analyzing complicated stocks.
Not everyone thinks about this stock as I do. TD Securities recently put out a report saying that ENF has a relatively low-risk business model and it would be a good one for income oriented investors. They gave it a Buy rating.
Dividends are good. The current dividend yield is 6.44% based on dividends of $2.05 and a stock price of $31.88. The historical dividend yield is 6.96% and the 5 and 10 year median dividend yields are 5.46% and 6.25% respectively.
The Dividend Payout Ratio for this fund is 86.54% with 5 year coverage of 86.00%. But this means nothing as the dividends payouts are really paid for by Enbridge Income Fund. As far as I can tell they paid out 101% of their distributable cash in 2016 with 5 year coverage of 91.8%. However it is difficult to find this information and I am not entirely sure of it.
Dividend growth is low with growth of dividends at 9.8% and 7.2% per year over the past 5 and 10 years. The last dividend increase was in 2017 and it was for 10%.
The 5 year low, median and high median Price/Earnings per Share Ratios are 14.52, 15.81 and 17.10. The corresponding 10 year values are 14.59, 17.23 and 20.24. The corresponding historical values are 14.75, 18.78 and 22.69. The current P/E Ratio is 14.76 based on a stock price of $31.88 and 2017 EPS estimate of $2.16. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a Graham Price of $37.17. The 10 year median Price/Graham Price Ratios are 0.79, 0.93 and 1.12. The current P/GP Ratio is 0.86 based on a stock price of $31.88. This stock price testing suggests that the stock price is relatively reasonable and below the median.
The 10 year median Price/Book Value per Share Ratio is 1.06. The current P/B Ratio is 1.12 based on Book Value of $4,173M, BVPS of $28.43 and a stock price of $31.88. The current P/B Ratio is some 5.6% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.
The historical median dividend yield is 6.96%. The current dividend yield is 6.44% based on dividends of $2.05 and a stock price of $31.88. The current dividend yield is 7.5% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.
When I look at analysts' recommendations I find Buy (3) and Hold (10) recommendations. The consensus recommendation is a Hold. The 12 month stock price s $35.85. This implies a total return of 18.89% with 12.45% from capital gains and 6.44% from dividends with a current price of $31.88. The Hold consensus does not match the future possible stock price. That shows a rather high total return for a Hold recommendation.
Ivanka Thompson on Bangalore Weekly says that last month both Desjardins and Dundee reduced their ratings on this stock to a Hold. A Staff Writer at Akron Register says that the company has a low value Piotroski F-Score of 3. Juan de la Hoz on Seeking Alpha has done a recent analysis of this income fund company. See what analysts are saying about this stock at Stock Chase. Some like the parent company of Enbridge Inc. better.
Enbridge Income Fund Holdings Inc., through its investment in Enbridge Income Fund, holds energy infrastructure assets. Its web site is here Enbridge Income Fund Holdings Inc.
The last stock I wrote about was about was Linamar Corporation (TSX-LNR, OTC-LIMAF) ... learn more. The next stock I will write about will HNZ Group Inc. (TSX-HNZ, OTC- CDHPF)... learn more on Friday, October 13 around 5 pm. Tomorrow on my other blog I will write about Money Show 2017 - John Collier... learn more on Thursday, October 12, 2017 around 5 pm.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
I do not own this stock of Enbridge Income Fund Holdings Inc. (TSX-ENF, OTC-EBGUF). I have followed this stock for some time but I have not owned it. I do own Enbridge Inc. (TSX-ENB, NYSE-ENB). You would not want to invest in both this stock and Enbridge Inc. as Enbridge Inc. is invested in the fund this stock is invested in.
What I hate about this fund is that it is difficult to analyze. I am not the only one. I noticed in Morningstar they give Basic number of shares at 116 and diluted as 741. They really do not say what the diluted shares are but if you divide the diluted EPS by Net Income it is around 117. The Morningstar page is here. Actually the annual statements do say that the diluted is 741, but also give basic as 74 and 1585.
I am very focused on what I want from a stock's statements, but this one makes life difficult. It makes me spend far too much time trying to figure what where the information is that I want. Looking the 2017 quarterly statement they give a description of the changes to the outstanding units. Why cannot they not just tell you the final result?
When looking at this stock you not only have to look at the statements for Enbridge Income Fund Holdings, but also the underlying fund that it is invested in and this is the Enbridge Income Fund. As far as I can see it does not matter that Enbridge Income Fund Holdings Inc. has great debt ratios. It does matter that Enbridge Income Fund has awful ones. However, I do not believe the book value on the income fund is really negative.
For example, the Liquidity Ratio for ENF is 4.90 and the Debt Ratio is 26.29.The Liquidity Ratio for the Fund is 0.41 and the Debt Ratio is 0.81. This means that the current assets cannot cover the current liabilities and that the assets cannot over the liabilities. The Fund has a negative book value. A negative book value means that they have paid out more than they have earned.
There is also Enbridge Income Partnership LP and the Enbridge Commercial Trust. It is also very confusing. I do not like investments that complicated. It is too easy to misjudge or make a mistake when analyzing complicated stocks.
Not everyone thinks about this stock as I do. TD Securities recently put out a report saying that ENF has a relatively low-risk business model and it would be a good one for income oriented investors. They gave it a Buy rating.
Dividends are good. The current dividend yield is 6.44% based on dividends of $2.05 and a stock price of $31.88. The historical dividend yield is 6.96% and the 5 and 10 year median dividend yields are 5.46% and 6.25% respectively.
The Dividend Payout Ratio for this fund is 86.54% with 5 year coverage of 86.00%. But this means nothing as the dividends payouts are really paid for by Enbridge Income Fund. As far as I can tell they paid out 101% of their distributable cash in 2016 with 5 year coverage of 91.8%. However it is difficult to find this information and I am not entirely sure of it.
Dividend growth is low with growth of dividends at 9.8% and 7.2% per year over the past 5 and 10 years. The last dividend increase was in 2017 and it was for 10%.
The 5 year low, median and high median Price/Earnings per Share Ratios are 14.52, 15.81 and 17.10. The corresponding 10 year values are 14.59, 17.23 and 20.24. The corresponding historical values are 14.75, 18.78 and 22.69. The current P/E Ratio is 14.76 based on a stock price of $31.88 and 2017 EPS estimate of $2.16. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a Graham Price of $37.17. The 10 year median Price/Graham Price Ratios are 0.79, 0.93 and 1.12. The current P/GP Ratio is 0.86 based on a stock price of $31.88. This stock price testing suggests that the stock price is relatively reasonable and below the median.
The 10 year median Price/Book Value per Share Ratio is 1.06. The current P/B Ratio is 1.12 based on Book Value of $4,173M, BVPS of $28.43 and a stock price of $31.88. The current P/B Ratio is some 5.6% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.
The historical median dividend yield is 6.96%. The current dividend yield is 6.44% based on dividends of $2.05 and a stock price of $31.88. The current dividend yield is 7.5% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.
When I look at analysts' recommendations I find Buy (3) and Hold (10) recommendations. The consensus recommendation is a Hold. The 12 month stock price s $35.85. This implies a total return of 18.89% with 12.45% from capital gains and 6.44% from dividends with a current price of $31.88. The Hold consensus does not match the future possible stock price. That shows a rather high total return for a Hold recommendation.
Ivanka Thompson on Bangalore Weekly says that last month both Desjardins and Dundee reduced their ratings on this stock to a Hold. A Staff Writer at Akron Register says that the company has a low value Piotroski F-Score of 3. Juan de la Hoz on Seeking Alpha has done a recent analysis of this income fund company. See what analysts are saying about this stock at Stock Chase. Some like the parent company of Enbridge Inc. better.
Enbridge Income Fund Holdings Inc., through its investment in Enbridge Income Fund, holds energy infrastructure assets. Its web site is here Enbridge Income Fund Holdings Inc.
The last stock I wrote about was about was Linamar Corporation (TSX-LNR, OTC-LIMAF) ... learn more. The next stock I will write about will HNZ Group Inc. (TSX-HNZ, OTC- CDHPF)... learn more on Friday, October 13 around 5 pm. Tomorrow on my other blog I will write about Money Show 2017 - John Collier... learn more on Thursday, October 12, 2017 around 5 pm.
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. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
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