Keyera Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Utility. The stock price is probably reasonable. As an old income trust company, they still need to get their DPR under control. Outstanding shares are going to quickly. See my spreadsheet on Keyera Corp.

I do not own this stock of Keyera Corp (TSX-KEY, OTC-KEYUF). I started to review some of the stock recommended by Jennifer Dowty from a column she wrote and I reviewed in February 2010 on Dividends and Special Dividends. The title of the article in Investor’s Digest was Dividend Stocks: Buy, Hold and Collect. Jennifer is now a Portfolio Manager for Manulife Asset Management Limited.

When I was updating my spreadsheet, I noticed that earnings are rising much faster than Revenue per Share. Revenue growth over the past 5 and 10 years is at 6.4% and 7.5% per year. However, Revenue per Share growth was at 0.5% and 2.1% per year. The growth in earnings for the past 5 and 10 years is 15.2% and 3.8% per year. The Revenue per Share is low because of increasing outstanding shares. Shares have been increasing by 5.6% and 5.3% per year over the past 5 and 10 years.

The dividend yields are moderate (2% to 4% ranges) to good (5% and above). The current dividend is 5.95% with 5, 10 and historical median dividend yields at 4.00%, 4.37% and 5.08%. The most recent growth in dividends is moderate (8% to 14%) with growth for the past 5 years at 9% per year.

The Dividend Payout Ratios are too high. The DPR for 2018 is 90.5% with 5 year coverage at 104.3%. The DPR for CFPS is 51% with 5 year coverage at 48%. This used to be an income trust. A lot of the past income trust companies are having a hard time getting their DPR down to a good value. The company converted to a corporation in 2010 and the DPR is getting better gradually. According to Morningstar the Free Cash Flow for 2018 is negative.

Debt Ratios are fine but the Liquidity Ratio is a low. The Long Term Debt/Market Cap Ratio for 2018 is 0.39. The Liquidity Ratio for 2018 is 1.00 with 5 year median at 1.09. If you add in cash flow after dividends, the ratio becomes 1.33 for 2018 with a 5 year median of 1.59. The Debt Ratio is good at 1.67 with 5 year median at 1.59. The Leverage and Debt/Equity Ratios for 2018 are 2.48 and 1.48 with 5 year medians at 2.81 and 1.81.

The Total Return per year is shown below for years of 5 to 16 to the end of 2018. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	8.96%	0.93%	-4.19%	5.12%
2008	10	7.56%	20.32%	11.34%	8.98%
2003	15	13.07%	18.58%	9.92%	8.66%
2002	16		19.76%	10.80%	8.96%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 23.26, 29.21 and 35.35. The corresponding 10 year ratios. The corresponding 10 year ratios are 22.41, 25.70 and 28.77. The corresponding historical median ratios are 18.79, 22.58 and 26.37. The current P/E Ratio is 13.79 based on a stock price of $32.26 and 2019 EPS estimate of $2.34. This stock price testing suggests that the stock price is relatively cheap.

The 5 year capital gain is a negative 4.19% per year had a starting P/E Ratio of 34.19. The 10 year capital gain was 11.34% per year had a starting P/E of 6.73. The 15 year capital gain 9.92% per year had a starting P/E 16.45. So, a P/E starting ratio of 13.79 is not bad.

I get a Graham Price of $26.62. The 10 year low, median, and high median Price/Graham Price Ratios are 1.77, 2.11 and 2.47. The current P/GP Ratio is 1.21 based on a stock price of $32.26. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median Price/Book Value per Share Ratio of 3.86. The current P/B Ratio is 2.40 based on a Book Value of $2,882M, Book Value per Share of $13.46 and a stock price of $32.26. The current ratio is 38% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get an historical median dividend yield of 5.08%. The current dividend yield is 5.95% based on dividends of $1.92 and a stock price of $32.26. The current yield is 17% above the historical median yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.

The 10 year median dividend yield is 4.37%. The current dividend yield is 5.95%. The current yield is 36% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively cheap. On the other hand, the most recent dividend increase was 6.7% which is lower than the 5 year growth of 8.96% per year. Dividend increases generally depend on the confidence management has in the future and they are pull back.

The 10 year median Price/Sales (Revenue) Ratio is 1.43. The current P/S Ratio is 1.79 based on 2019 Revenue estimate of $3,867M, Revenue per Share of $18.06 and a stock price of $32.26. The current ratio is 25% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

Results of stock price testing is that the stock price is probably reasonable. The P/S Ratio cannot be ignored. Analysts are projecting a decline in Revenue of 13.6%. At the end of the second quarter the Revenue is down by 8%, so the projection seems reasonable. The P/S Ratio test says that the stock price is expensive because the current ratio is more than 20% above the 10 year ratio.

Is it a good company at a reasonable price? The is a good dividend growth company. The shareholders did not make much money over the past 5 years, because 5 years ago the stock price got too high. The stock price is probably reasonable.

When I look at analysts’ recommendations, I find Strong Buy (3), Buy (9) and Hold (2). The consensus is a Buy. The 12 month stock price consensus is $40.21. This implies a total return of 30.60% with 24.64% from capital gains and 5.95% from dividends based on a stock price of $32.26.

See what analysts are saying on Stock Chase. Most analysts think it is a buy. Christopher Liew on Motley Fool thinks this is a good dividend stock. A writer on Simply Wall Street thinks this company’s P/E Ratio is too high.. A writer on Simply Wall Street talks about the lack of return for this stock over the past 5 years. The company talks about their third quarterly results on Newswire.

Keyera operates as a midstream energy business in western Canada. Its primary operations consist of gathering, processing, and fractionation of natural gas in western Canada; storage and transportation of crude oil and natural gas byproducts; and marketing of natural gas liquids. Its web site is here Keyera Corp.

The last stock I wrote about was about was Dollarama Inc. (TSX-DOL, OTC-DLMAF) ... learn more. The next stock I will write about will be Cenovus Energy Inc. (TSX-CVE, NYSE-CVE) ... learn more on November 11, 2019 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.

Dollarama Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. The stock price is probably expensive. The book value is negative, the dividends are very low and there is insider selling with the company borrowing money to buy back shares. This means lots of risk. The return, so far, has been good. See my spreadsheet on Dollarama Inc .

I do not own this stock of Dollarama Inc (TSX-DOL, OTC-DLMAF). I belong to an investment club and this was a stock I volunteered to look at. I had, of course, heard of this stock before and people have mentioned that it is doing very well for shareholders.

When I was updating my spreadsheet, I noticed they do not make things easy for analysis. They have a changing financial year data and kept changing the date of dividends within each year. They still have a shareholder deficit and yet they are still buying back shares. A shareholder deficit means that the breakup value of the company is negative.

There is lots of insider selling. The Net Insider Selling is 0.86% of market cap. This figure you expect to be around 0.01%. The CEO since last year has sold over 7M shares. The chairman has also sold some shares.

Dividend yields are in the low range (less than 2%). They are all below 1%, with the current yield at 0.38%, and the 5 and 7 year median yields at 0.44% and 0.46%. The dividend growth rate is moderate (under 15%) at 12% and 14.7% per year over the past 5 and 7 years. I generally do not buy stock with dividends under 1%. It takes too long to make a decent yield in dividends even a good (15% and above) rate of growth.

The Dividend Payout Ratios are good. The DPR for EPS for 2018 is 17% with 5 year coverage at 12.5%. The DPR for CFPS for 2018 is 13% with 5 year coverage at 10%.

Debt Ratios are awful. I am especially referring to the Debt Ratio. I would not buy a company with a negative book value. The Long Term Debt/Market Cap Ratio for 2018 a low at 0.17. The Liquidity Ratio for 2018 is 2.46. However, last year it was 0.76 and currently it is 1.18. So, this can fluctuate a lot. The Debt Ratio for 2018 is 0.90. This means that the assets cannot cover the liabilities. Leverage and Debt/Equity Ratios are not calculable because of the negative book value.

The Total Return per year is shown below for years of 5 to 10 to the end of 2018. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	12.15%	27.01%	26.25%	2.88%
2008	10	14.70%	17.89%	17.17%	2.15%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 19.13, 25.31, and 31.11. The corresponding 10 year ratios are 17.65, 22.23 and 26.77. The corresponding historical ratios are 17.65, 22.23 and 26.77. The current P/E Ratio is 25.56 based on a stock price of $46.00 and 2019 EPS estimate of $1.80. This stock price testing suggests that the stock price is relatively reasonable but above the median the median.

I get a Graham Price of $3.43. However, this is fudged because of the negative Book Value. It is really no calculable. The 10 year low, median, and high median Price/Graham Price Ratios are 2.15, 2.70 and 3.26. The current P/GP Ratio is 13.41 based on a stock price of $46.00. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year median Price/Book Value per Share Ratio of 3.66. The current P/B Ratio is negative 136.54 based on a Book Value of negative $106M, Book Value per Share of negative $0.34 and a stock price of $46.00. The current ratio is some 3827% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I get an historical median dividend yield of 0.46%. The current dividend yield is 0.68% based on dividends of $0.18 and a stock price of $46.00. The current yield is 16.8% below the historical median yield. This stock price testing suggests that the stock price is relatively reasonable but above the median the median.

The 10 year median Price/Sales (Revenue) Ratio is 2.67. The current P/S Ratio is 3.81 based on 2019 Revenue estimate of $3,804M, Revenue per Share of $12.09 and a stock price of $46.00. The current ratio is 42.6% above the 10 year median. This stock price testing suggests that the stock price is relatively expensive.

Results of stock price testing is that the stock price is probably expensive. The only tests really worth anything are the P/S Ratio and Dividend yield. I find the P/E Ratios rather high for a consumer stock, but I must admit this is not a favourite test of mine. Both the P/GP Ratio and P/B Ratios are nonsense as the Book Value is negative.

Is it a good company at a reasonable price? There is lots I do not like about this company. This starts with the negative book value. This means that the breakup value of the company is less than zero. I do not like very low dividend yields. You might as well not have dividends when they are lower than 1%. They are borrowing money to buy back shares while giving out stock options. There is currently lots of insider selling. I also think that the stock price is too high.

When I look at analysts’ recommendations, I find Strong Buy (2), Buy (3) and Hold (8). The consensus would be a Buy. The 12 month stock price consensus is $50.92. This implies a total return of $11.08% with 0.38% from dividends and 10.70% from capital gains.

See what analysts are saying on Stock Chase. They like the stock but feel the price is high. Daniel Da Costa on Motley Fool says if you value investing, getting passive income with compounding and growth stock investing, then look to this stock. A writer on Simply Wall Street says he is not concerned about insider selling. A writer on Simply Wall Street says this is a stock than has gone zoom. Ambrogio Visconti on Global Legal Chronicle talks about Dollarama buying 50.1% interest in Latin American value retailer Dollarcity. Ploutos Investing on Seeking Alpha talks about this stock.

Dollarama Inc is a Canada-based company principally engaged in operating discount retail stores. The company's stores are throughout Canada, generally located in convenient locations, such as metropolitan areas, midsize cities, and small towns. All the stores are owned and operated by the company. Its web site is here Dollarama Inc.

The last stock I wrote about was about was Encana Corp (TSX-ECA, NYSE-ECA) ... learn more. The next stock I will write about will be Keyera Corp (TSX-KEY, OTC-KEYUF) ... learn more on November 8, 2019 around 5 pm. Tomorrow on my other blog I will write about Something to Buy November 2019.... learn more on November 7, 2019 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.

Encana Corp

Sound bite for Twitter and StockTwits is: Dividend Paying Energy. It is currently cheap. They are moving to the US and changing their name. Getting funding and getting product to market is a problem currently in Canada. Debt Ratios are not good after the third quarter of 2019.See my spreadsheet on Encana Corp.

I do not own this stock of Encana Corp (TSX-ECA, NYSE-ECA) but I used to. I had held this stock previously as Alberta Energy Company from April 2000 until August 2002 and made some 18% total returns per year. I had EnCana Corp from February 2006 to November 2009 and made a 9.54% per year total return. I sold this stock in 2009 because I only had 100 shares and the stock was going to split into two companies. I would have ended up with small investment in two companies.

As you can see, I do not look on oil companies as a long term buy. Also, please note that my spreadsheet following this company starts with Alberta Energy Company and follows this company into the formation of EnCana in 2002. It was in 2002 EnCana was formed with the merger of AEC and PanCanadian Energy Corporation. Company split into EnCana Corp and Cenovus Energy Inc in 2009, Oil with Cenovus and gas with EnCana.

When I was updating my spreadsheet, I noticed that the company intends to domicile in the US and change the company name to Ovintiv Inc. There will also be at that time a consolidation of stock on a 1 to 5 basis. See the News Release. Well what do we expect. Canada is not open to development of our resources. For oil and gas, we cannot get pipelines built.

For this stock, long term shareholders have a stock where the current price is below that of 15 years ago and barely higher than it was 20 years ago. For shareholders with this stock for 20 years have only made a profit because of dividends.

After debt declining for a number of years, the debt has gone up in 2019. Debt to the end of the third quarter is up by 90%. This debt ratios are not good at the end of the third quarter, with Long Term Debt/Market Cap at 1.30. Also, the Liquidity Ratio was deteriorated to 0.82 from 1.35 at the end of 2018. This is caused by an increase in Accounts payable and accrued liabilities.

Talk about dividends yields and growth. Dividend are paid in US$. The dividend yields are low (below 2%). The current dividend yield is 1.68%, with 5, 10 and historical yields are 0.75%, 2.72% and 1.45%. Yields are gone up and down over time. As this is an energy company, dividends have both gone up and down and have sometimes been flat. There has not be much growth over the years. See chart below.

The Dividend Payout Ratios are too high for EPS but ok for CFPS. The DPR for EPS for 2018 was 5.4%. I cannot calculate the 5 year coverage as they paid out more than they earned over the past 5 years. The DPR for CFPS is much better 2.7% for 2018 with 5 year coverage at 7.6%. The dividends paid are 50% of Free Cash Flow.

Debt Ratios have some problems concerting liquidity and Long Term Debt/Market Cap Ratio. Debt has been going down for a number of years, but for the third quarter 2019 it is up 90%. The Long Term Debt/Market Ratio for 2018 was 0.67, but it is now 1.30. Debt Ratio is good in 2018 at 1.94 and is only down to 1.87 currently. Leverage and Debt/Equity Ratios are fine at 2.06 and 1.06 in 2018 and current at 2.15 and 1.15.

The Total Return per year is shown below for years of 5 to 26 to the end of 2018 in CDN$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	-35.13%	-15.04%	-16.30%	1.26%
2008	10	-22.22%	-9.74%	-12.32%	2.59%
2003	15	-3.20%	0.96%	-3.40%	4.36%
1998	20	0.78%	6.62%	1.56%	5.06%
1993	25	1.16%	8.59%	3.62%	4.97%
1992	26	1.12%	8.99%	4.00%	4.99%

The Total Return per year is shown below for years of 5 to 26 to the end of 2018 in US$. I do not have as much US$ data as I do CDN$ data.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	-38.28%	-19.26%	-20.37%	1.11%
2008	10	-23.05%	-10.22%	-13.25%	3.04%
2003	15	-3.54%	-4.28%	-7.91%	3.64%
2002	17	1.40%	-1.57%	-4.44%	2.86%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 2.55, 3.78 and 5.02. The corresponding 10 year ratios are 6.71, 9.65 and 12.58. The corresponding historical ratios are 10.05, 12.01 and 15.43. there has been 3 earnings losses and therefore negative ratios in the past 7 years. This accounts for some of the low ratios. The current P/E Ratio is 14.37 based on a stock price of $5.86 and EPS of $0.41 ($0.31 US$). This stock price testing suggests that the stock price is relatively reasonable and probably above the median. This is in CDN$.

I get a Graham Price of $9.60. The 10 year low, median, and high median Price/Graham Price Ratios are 0.68, 0.99 and 1.34. The current P/GP Ratio is 0.61 based on a stock price of $5.86. This stock price testing suggests that the stock price is relatively cheap. This is in CDN$.

I get a 10 year median Price/Book Value per Share Ratio of 1.39. The current P/B Ratio is 0.58 based on Book Value of $9, 921M, Book Value per Share of $7.64 and a stock price $4.41. The current ratio is some 58% below the 10 year ratio. This stock price testing suggests that the stock price is relatively cheap. This is in US$. You would get a similar result in CDN$.

I get an historical median dividend yield of 1.45%. The current dividend yield is 1.68% based on Dividends of $0.10 ($0.08 US$) and a stock price of $5.86. The current dividend yield is 16% above the historical median. This stock price testing suggests that the stock price is relatively reasonable and below the median.

Some people use the 10 year median dividend yield for this test which is 2.27% US$. The current dividend yield is 1.70% based on Dividends of $0.08 and a stock price of $4.41. The current yield is 25% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively expensive. This is in US$. You would get a similar result in CDN$. Problem is they have been cutting the dividends lately.

The 10 year median Price/Sales (Revenue) Ratio is 2.31. The current P/S Ratio 0.81 based on 2019 Revenue estimate of $7,075M, Revenue per Share of $5.45 and a stock price of $4.41. The current ratio is 65% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This is in US$. You would get a similar result in CDN$.

Results of stock price testing is that the stock price is relatively cheap. The best tests are the P/S Ratio, the P/B Ratio, and the P/GP Ratio tests. All these tests say the stock price is relatively cheap. The problem with the P/E Ratio is the recent negative ratio because of earnings losses. The problem with the dividend yield tests is recent dividend cuts, but also the past history of big increases and decreases.

Is it a good company at a reasonable price? This company is a resource company and so is a high risk. It is certainly cheap. Some wonder about the recent purchase of Newfield Exploration. See notice of this here. I personally limit my investment in resources because these stocks are volatile and currently in Canada, they cannot get their product to market.

When I look at analysts’ recommendations, I find Strong Buy (8), Buy (11), Hold (10) and Sell (2). The consensus would be a Buy. The 12 months stock price is $9.38 ($7.13 US$). This implies a total return of 61.77% with 60.08% from capital gains and 1.68% from dividends based on a stock price of $5.86.

See what analysts are saying on Stock Chase. They agree that it is cheap, but risky. Brian Pacampara on Motley Fool says stock is cheap but more research is needed. A writer on Simply Wall Street says the stock is cheap based on fundamentals. A writer on Simply Wall Street thinks the stock is mispriced and a buy opportunity. Kevin Orland on Financial Post talks about the company moving to US and change its name to Ovintiv Inc.

EnCana Corporation is one of the world's largest independent natural gas producers and gas storage operators. Its web site is here Encana Corp.

The last stock I wrote about was about was CCL Industries Inc (TSX-CCL.B, OTC-CCDBF) ... learn more. The next stock I will write about will be Dollarama Inc. (TSX-DOL, OTC-DLMAF) ... learn more on Wednesday, November 06, 2019 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks November 2019.... learn more on November 05, 2019 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.

CCL Industries Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Materials. The stock price is probably still expensive. It has done well lately, but also seems to be slowing down. At least the current dividend yield is above 1%. See my spreadsheet on CCL Industries Inc.

I do not own this stock of CCL Industries Inc (TSX-CCL.B, OTC-CCDBF). In 2009 I read a favorable report on this stock of which I had also heard before. This is also a dividend paying stock and in 2009 it was on Dividend Achievers list.

When I was updating my spreadsheet, I noticed that the company had a 2018 EPS estimate of $2.87, but the EPS for 2018 came in at $2.61. The estimates for 2019 and 2020 have been lowered. The old ones were $3.25 and $3.52 and the new ones are $2.77 and $3.14. This company has done well for their shareholders especially lately.

Dividend yields are low (below 1%) or barely moderate (2% to 4% ranges). The current dividend is 1.24%. The 5, 10 and historical yields are 0.89%, 1.20% and 2.09%. The current yields are better than when I looked at this stock last year with current yield under 1% at 0.91%.

The dividend growth is good. The dividend growth used to be moderate (8% to 14% ranges), but lately has been in the good range (15% and above). The growth for the last 5 years, per year, is 24.8%. The last increase was this year and was for 30.8%.

The Dividend Payout Ratios are good. The DPR for EPS for 2018 was 20% with 5 year coverage at 19%. The DPR for EPS for 2018 was 9% with 5 year coverage also at 9%.

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2018 was good at 0.27. The Liquidity Ratio for 2018 is fine at 1.58 with a 5 year median at 1.42. The Debt Ratio is good at 1.61 with a 5 year median also at 1.61. The Leverage and Debt/Equity Ratios for 2018 is 2.63 and 1.63. The 5 year median ratios are 2.20 and 1.20.

The Total Return per year is shown below for years of 5 to 31 to the end of 2018. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	24.77%	27.32%	25.87%	1.45%
2008	10	16.59%	27.56%	25.91%	1.65%
2003	15	14.09%	20.31%	18.94%	1.37%
1998	20	11.79%	15.24%	14.15%	1.10%
1993	25	9.32%	14.86%	13.58%	1.28%
1988	30	8.27%	12.19%	11.06%	1.13%
1987	31		13.47%	12.04%	1.43%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 17.77, 22.16 and 25.86. The corresponding 10 year ratios are 14.31, 19.62 and 23.79. The corresponding historical ratios are 11.69, 14.34 and 19.64. The current P/E Ratio is 19.78 based on a stock price of $54.78 and 2019 EPS estimate of $2.77. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a Graham Price of $31.05. The 10 year low, median, and high median Price/Graham Price Ratios are 1.05, 1.46 and 1.88. The current P/GP Ratio is 1.76 based on a stock price of $54.78. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a 10 year median Price/Book Value per Share Ratio of 2.56. The current P/B Ratio is 3.54 based on Book Value of $2,749M, Book Value per Share of $12.41 and a stock price of $54.78. The current ratio is 38% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I get an historical median dividend yield of 2.09%. The current yield is 1.24% based on dividends of $0.68 and a stock price of $54.78. The current dividend yield is 41% below the historical dividend yield. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year median dividend yield of 1.20%. The current yield is 1.24% based on dividends of $0.68 and a stock price of $54.78. The current dividend yield is 4% below the historical dividend yield. 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 1.28. The current P/S Ratio is 1.79 based on 2019 Revenue estimate of $5,444M, Revenue per Share of $30.63 and a stock price of $54.78. The current ratio is 40% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

Results of stock price testing is that the stock price is probably expensive. Most of my testing is show the stock price as relatively above the median or expensive. The P/S Ratio, the historical dividend yield, and the P/B Ratio tests all show this. At least the dividend yield is over 1% at 1.24%.

Is it a good company at a reasonable price? This stock has certainly done well for shareholder, especially lately. A few analysts think that it is slowing down. Judging by the second quarterly results, this seems so. For the 12 months ending at the end of the second quarter compared to 2018, Revenue is up just 4% and EPS 1.2%. The 5 year growth in Revenue was 22% per year and the 5 year growth in EPS is 34% per year to the end of 2018. So, the analysts seem to be right. It is not as overpriced as it was last year, but price is still high.

When I look at analysts’ recommendations, I find Strong Buy (2), Buy (6) and Hold (2). The consensus would be a Buy. The 12 month stock price is $68.69. This implies a total return of $26.63% with 1.24% from dividends and 23.39% from capital gains.

See what analysts are saying on Stock Chase. They like the company but some have concerns. Chen Liu on Motley Fool likes this company for its worldwide dominance and strong financials. A writer on Simply Wall Street thinks this stock is a smart choice for dividend investors. A writer on Simply Wall Street thinks the ROCE for this company is good . Staff at Market Exclusive talks about CIBC lowering its target price on this stock.

CCL Industries Inc manufactures and sells packaging and packaging-related products. The company operates through various segments which include The CCL segment, which generates the majority of revenue, sells pressure sensitive and extruded film materials used for labels on consumer packaging, healthcare, automotive, and consumer durable products. Its web site is here CCL Industries Inc.

The last stock I wrote about was about was Brookfield Asset Management Inc. (TSX-BAM.A, NYSE-BAM) ... learn more. The next stock I will write about will be Encana Corp (TSX-ECA, NYSE-ECA) ... learn more on Monday, November 4, 2019 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.

Brookfield Asset Management Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Financial. Stock price is probably cheap to reasonable. Stock price testing is showing the stock price from cheap to expensive. A negative is the lower increase for 2019 in dividends at 6.67% than for the last 5 years at 8.81% per year. The company has a complex structure. See my spreadsheet on Brookfield Asset Management Inc.

I do not own this stock of Brookfield Asset Management Inc (TSX-BAM.A, NYSE-BAM). I used to own an earlier version of this stock as Hees International, then Edper Group and then EdperBrascan back in 1987 to 1999. I bought this stock as Hees International in 1987 and more in 1988, 1989 and 1990. At first dividends were semi-annual and there was some good dividend increases. There was a much lower dividend increase in 1991. Between 1991 and when I sold in 1999 there was no dividend increases. The stock was going nowhere at that time, so I sold. There have been a lot of name changes and amalgamations since I had this stock.

When I was updating my spreadsheet, I noticed that the estimates I got last year showed that Revenue and Earnings would be lower in 2018, but they went higher. The 12 month Revenue and Earnings I got by using the second quarterly results of 2018 showed increasing Revenue and Earnings. For 2017, the 12 month Revenue was $40,786M and Earnings was $1.34. Estimates for 2018 for Revenue was $34,197M and Earnings was $1.50. Revenue came in at $56,771M and earnings at $3.40. The 12 month Revenue was $51,248 and Earnings was $2.65. So, the estimates were way off, but the 12 month values to the end of the second quarter showed the right way.

I have tracked dividends on this stock for some 31 years. They started off good (5% and above), then went to moderate (2 to 5% ranges) and now are low (under 2%). The current dividend is 1.15%, with 5, 10 and historical median dividend yields at 1.46%, 1.61% and 2.01%. These yields are in US$.

Dividend growth has been low (under 8%) to Moderate (8% to 14% ranges) over the years. It has been moderate over the past 5 years at 8.8% per year. The last increase was lower at 6.7% and it was for 2019. You can see from the following charts that increases are higher but yields are lower. The company has been reporting in US$ since 2002, so it is only in the earliest 5 years that the reporting was in CDN$ for these charts.

The Dividend Payout Ratios are good. As the yields have come down and the increases have gone up, the DPR has gone down. The DPR for EPS for 2018 is 18% with 5 year coverage at 22%. The DPR for CFPS for 2018 is 9% with 5 year coverage at 11%.

Debt Ratios are all fine. The Long Term Debt/Market Cap Ratio for 2018 is good at 0.17. The Liquidity Ratio at 1.61 for 2018 is good. The Debt Ratio at 1.61 is good. Leverage and Debt/Equity Ratios at 2.64 and 1.64 are fine.

The Total Return per year is shown below for years of 5 to 31 to the end of 2018 in CDN$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	14.37%	15.65%	13.74%	1.91%
2008	10	7.00%	18.19%	15.36%	2.83%
2003	15	10.37%	16.53%	13.48%	3.05%
1998	20	5.32%	16.97%	13.43%	3.54%
1993	25	4.23%	16.39%	12.02%	4.36%
1988	30	4.13%	11.15%	8.19%	2.97%
1987	31	4.53%	12.39%	8.83%	3.56%

The Total Return per year is shown below for years of 5 to 31 to the end of 2018 in US$.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	8.81%	9.89%	8.18%	1.71%
2008	10	5.84%	19.13%	15.60%	3.53%
2003	15	9.97%	16.65%	13.10%	3.55%
1998	20	5.97%	18.20%	14.08%	4.12%
1993	25	4.11%	16.28%	11.89%	4.39%
1988	30	3.67%	10.65%	7.70%	2.95%
1987	31	4.37%	12.44%	8.66%	3.78%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 12.61, 14.02 and 15.44. The corresponding 10 year ratios are 11.70, 12.90 and 14.86. The historical ratios are 11.14, 13.24 and 15.18. The current P/E Ratio is 27.63 based on a stock price of $72.27 and 2019 EPS estimate of $2.63 ($2.03 U$). This stock price testing suggests that the stock price is relatively expensive. This testing is in CDN$.

I get a Graham Price of $76.80. The 10 year low, median, and high median Price/Graham Price Ratios are 0.77, 0.86 and 1.01. The current P/GP Ratio is 0.95 based on a stock price of $73.27. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in CDN$.

I get a 10 year median Price/Book Value per Share Ratio of 1.32. The current P/B Ratio is 0.74 based on a Book Value of $72,324M, Book Value per Share of $75.66 and a stock price of $55.67. The current ratio is 44% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$. You get similar results in CDN$.

I get an historical median dividend yield of 2.01%. The current dividend is 1.15% based on dividends of $0.64 and a stock price of $55.67. The current yield is 42% below the historical ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. You get similar results in CDN$.

However, since the long term trend is a lower yield, it is interesting to look at the 10 year median yield which is 1.61%. The current yield at 1.15% is still much lower at 29% lower. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. You get similar results in CDN$.

The 10 year median Price/Sales (Revenue) Ratio is 1.13. The current P/S Ratio is 0.88 based on 2019 Revenue estimate of $60.237M, Revenue per Share of $63.02 and a stock price of $55.67. The current P/S Ratio is some 22% below the 10 year median. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$. You get similar results in CDN$.

Results of stock price testing is that the stock price is probably cheap to reasonable. The best test is the P/S Ratio test and it is showing here as cheap (but just over the line to cheap). The P/B Ratios testing is showing this stock as cheap. A good test generally is the dividend yield test. This is showing the stock price as expensive, but there is a downward trend to a lower yield. However, a negative is that the latest increase, which is for 2019, is lower at 6.67% than the 5 year increase per year at 8.81%.

Is it a good company at a reasonable price? A lot of people like this company and their spin offs. I must say that their set up seems quite complex and I find this a negative. However, they have delivered a fair return to their shareholders over time. The analysts’ recommendation of Strong Buy certainly conflicts with a stock price loss over the next year.

When I look at analysts’ recommendations, I find Strong Buy (3), Buy (6) and Hold (1). The consensus would be a Strong Buy. The 12 months stock price is $59.96 ($45.90 US$). This implies a total loss of 17.02% with a capital loss of 18.16% and dividends of 1.14%.

See what analysts are saying on Stock Chase. Some say it is at a record high. Reuben Gregg Brewer on Motley Fool says to buy Brookfield for growth not for its dividend. A writer on Simply Wall Street talks about institutional ownership of this company at 66%. Data on Market Stock Alerts says this stock has a Buy Signal. Kenny Obasanjo on Mitchell Messenger talks about AdvisorNet Financial Inc buying more shares in this company.

Brookfield Asset Management Inc owns and manages commercial property, power, and infrastructure assets. Its investment focus includes Real Estate, Infrastructure, Renewable Power and Private Equity. Located around the world, its assets are concentrated in the United States, Canada, Brazil, and Australia. Its web site is here Brookfield Asset Management Inc.

The last stock I wrote about was about was Molson Coors Canada (TSX-TPX.B, NYSE-TAP) ... learn more. The next stock I will write about will be CCL Industries Inc (TSX-CCL.B, OTC-CCDBF) ... learn more on Friday, November 1, 2019 around 5 pm. Tomorrow on my other blog I will write about Money Show 2019 – David Rosenberg.... learn more on Thursday, October 31, 2019 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.

Molson Coors Canada

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. The positive is a recent big hike in dividends. This shows the management has a positive view of the future. However, I do worry about the debt and also the high ratio of intangible and goodwill assets. See my spreadsheet on Molson Coors Canada.

I do not own this stock of Molson Coors Canada (TSX-TPX.B, NYSE-TAP). In 2008 I did a spreadsheet on this stock as it has recently been recommended and generally, beer companies make good money. Labatt’s was one of the original companies that I purchased and I did very well with it before it was bought out.

When I was updating my spreadsheet, I noticed that they had a very big increase in dividends this year of 39% after 3 years of no increases. This is a positive result. A negative is that the Intangible Assets/Market Cap ratio is high. For 2018 it is 1.06 and at present is 1.07. If you add Goodwill with Intangible Assets you get an Intangible Assets/Market Cap Ratio of 1.70. This is not good.

Dividends are paid in US$ and this means for Canadian investors, the dividends will fluctuate with changes in currency exchange rates. The dividend yield for this stock is in the moderate range (2% to 4% ranges). In CDN$, the current dividend yield is 4.00%, with 5, 10 and historical yields at 2.09%, 2.32% and 2.13%.

As you can see from the charts below, the dividend growth in CDN$ is generally higher, especially in the later time periods, than the US$ dividend growth. This has to do with currency exchange rates. Dividend growth is low (under 8%) to Moderate (8% to 14% range).

The Dividend Payout Ratios are good. The DPR for EPS in 2018 in US$ is 32% with 5 year coverage at 31%. The DPR for CFPS for 2018 in US$ is 15% with 5 year coverage at 21%. I did this in US$ as the statement reporting currency is US$.

Debt Ratios are of a mixed quality. I think the Liquidity Raito is far too low. Lately, the long term debt has been going down, but the Long Term Debt/Market Cap Ratio has been going up. This is because the stock price is falling. The ratio for 2018 is 0.70 with a current one of 0.68. The Liquidity Ratio for 2018 is 0.64. This means that current assets cannot cover current liabilities. If you add in Cash Flow after dividends it is still quite low at 1.10. The Debt Ratio is good at 1.84. The Leverage and Debt/Equity Ratios are 2.23 and 1.21. These are fine.

The Total Return per year is shown below for years of 5 to 22 to the end of 2018 in CDN$ for TPX.B. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	10.45%	8.77%	5.62%	3.15%
2008	10	9.19%	5.47%	3.07%	2.39%
2003	15	9.38%	6.48%	3.50%	2.97%
1998	20	7.78%	11.92%	7.97%	3.95%
1996	22	7.05%	10.78%	7.24%	3.54%

The Total Return per year is shown below for years of 5 to 25 to the end of 2018 in US$ for TAP.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	5.08%	2.86%	0.00%	2.86%
2008	10	7.99%	4.46%	1.79%	2.67%
2003	15	9.68%	7.43%	4.73%	2.69%
1998	20	8.86%	5.62%	3.50%	2.12%
1993	25	7.81%	11.44%	8.25%	3.19%
1990	28	6.95%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 12.01, 14.12 and 16.61. The corresponding 10 year ratios are 11.50, 13.90 and 16.42. The corresponding historical ratios are 12.01, 15.11 and 18.21. The current P/E Ratio is 12.87 based on a stock price of $73.07 and 2019 EPS estimate of $5.82 ($4.43 US$). This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in CDN$.

I get a Graham Price of $102.86. The 10 year low, median, and high median Price/Graham Price Ratios are 0.75, 0.87 and 1.02. The current P/GP Ratio is 0.73 based on a stock price of $73.07. This stock price testing suggests that the stock price is relatively cheap. This testing is in CDN$.

I get a 10 year median Price/Book Value per Share Ratio of 1.13. The current P/B Ratio is 0.90 based on Book Value of $13,899M, Book Value of $61.56 and a stock price of $55.64. The current ratio is some 20% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$. You get a simpler result in CDN$.

I get an historical median dividend yield of 1.88%. The current dividend yield is 4.10% based on dividends of $2.28 and a stock price of $55.64. The current yield is 118% above the historical median yield. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$. You get a simpler result in CDN$.

The 10 year median Price/Sales (Revenue) Ratio is 2.43. The current P/S Ratio is 1.19 based on 2019 Revenue estimate of $10,397M, Revenue per Share of $46.93 and a stock price of $55.64. The current ratio is 51% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$. You get a simpler result in CDN$.

Results of stock price testing is that the stock price is that the stock price is cheap to below the median. All my testing is showing the stock price from cheap to below the median. It would seem like a good price. I did some testing using US$ as this stock is mostly a US stock and it reports in US$.

Is it a good company at a reasonable price? It is probably a defensive stock. However, I do worry about the debt level and the beer market is probably a mature market. It is getting into cannabis products but lots of companies are doing this. They are not all going to be successful in this endeavor.

When I look at analysts’ recommendations, I find Strong Buy (5), Buy (3), Hold (7), Underperform (2) and Sell (4). The consensus would be a Hold. The 12 months stock price if $59.00 US$. This implies a total return of $10.14% with 4.10% from dividends and 6.04% from capital gains.

The recommendations are certainly all over the place. It probably depends on how you look at this stock as either a defensive stock or if you are looking for growth. It is probably a defensive stock, but it will not probably not be a growth stock. I am using the current currency exchange rate of 1.3132 US$ to CDN$. There is a difference in prices and yield and this is probably because of low trading value for the CDN stock.

See what analysts are saying on Stock Chase. Analysts seem negative about stock. Andrew Button on Motley Fool says this is a good defensive stock to have in a recession. A writer on Simply Wall Street says information I do not have. He says they had it had an earning in the past year which I cannot find. He also said that there was a dividend cut in the past which I cannot find and I have some 28 years of data. Because dividends are paid in US$, they can fluctuate because of current exchange. Daniel Strauss on Market Insider talks about a drop in stock price because of missed earnings call. Armina Ligaya on CTV News talks about a joint venture with pot producer Hexo Corp.

Molson Coors Brewing Company, as one of the largest global brewers, Molson Coors works to deliver extraordinary brands that delight the world's beer drinkers. From Coors Light, Miller Lite, Carling, Staropramen and Sharp's Doom Bar to Leinenkugel's Summer Shandy, Blue Moon Belgian White, Hop Valley, Creemore Springs Premium Lager and Crispin Cider, Molson Coors offers a beer for every beer lover. Molson Coors operates through Molson Coors Canada, MillerCoors, Molson Coors Europe and Molson Coors International. Its web site is here Molson Coors Canada.

The last stock I wrote about was about was Pason Systems Inc (TSX-PSI, OTC-PSYTF) ... learn more. The next stock I will write about will be Brookfield Asset Management Inc. (TSX-BAM.A, NYSE-BAM) ... learn more on Wednesday, October 29, 2019 around 5 pm. Tomorrow on my other blog I will write about Money Show 2019 – Kevin Prins.... learn more on Tuesday, October 29, 2019 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.

Pason Systems Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. They have good debt ratios. The company seems to see better times as they raised the dividends 1918 and this year after two years of flat dividends. A negative is the lack of growth in the Book Value. 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.

When I was updating my spreadsheet, I noticed both revenue and EPS are higher than estimates. Revenue estimate was $297M and it came in as $306M. EPS estimate was $0.60 and it came in as $0.73. However, the estimates for Revenue for 2019 and 2020 were $319M and $344M last year, but have been lowered this year to $296M and $291M. The estimates for EPS have also been lowered. Last year estimates for 2019 and 2020 were of $0.77and $1.01. This year estimates for 2019 and 2020 are $0.76 and $0.86.

This stock has very good debt ratios which is very good. A negative is the non-existent growth in Book Value. They started to raise the dividends again in 2018.

This company started to pay dividends in 2003. They did a 50% increase in 2013. Since then, there has been no increase or low increases. The most recent increase was for 5.6% and it occurred in 2019. See dividend increases per year in chart below for the 5, 10 and 15 year periods.

The dividend yields in the past were low (under2%), but recently they have been moderate (2% to 4% ranges). The current dividend yield is 4.96%, with 5, 10 and historical dividend yields at 3.56%, 2.98% and 2.38%.

The Dividend Payout Ratios are currently too high, but are improving. The DPR for EPS for 2018 is 96% with 5 year coverage at 195%. The DPR for 2019 is expected to be 97%. The DPR for CFPS for 2018 is 47% with 5 year coverage at 50%.

Debt Ratios are very good. The Long Term Debt/Market Cap Ratio for 2018 is 0.00. (It is too low to get a ratio.). The Liquidity Ratio for 2018 is 5.82 with 5 year median also at 5.82. The Debt Ratio for 2018 is 6.10 with 5 year median at 7.82. The Leverage and Debt/Equity Ratios for 2018 are 1.20 and 0.20 respectively with 5 year medians at the same value.

The Total Return per year is shown below for years of 5 to 22 to the end of 2018. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

The stock price is down again this year and it is down year to date by 16%.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	2.13%	-1.27%	-4.46%	3.19%
2008	10	13.93%	5.88%	2.67%	3.21%
2003	15	19.18%	10.46%	7.36%	3.09%
1998	20		21.65%	17.47%	4.18%
1996	22		21.12%	17.41%	3.70%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 15.86, 21.00 and 26.15. The corresponding 10 year ratios are 19.22, 23.89 and 28.55. The corresponding historical ratios are 13.33, 19.64 and 24.27. The current 20.16 based on a stock price of $15.32 and 2019 EPS estimate of $0.76. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $8.77. The 10 year low, median, and high median Price/Graham Price Ratios are 1.85, 2.23 and 2.64. The current P/GP Ratio is 1.75 based on a stock price of $15.32. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median Price/Book Value per Share Ratio of 3.62. The current P/B Ratio is 3.41 based on Book Value of $386M, Book Value per Share of $4.50 and a stock price of $15.32. The current ratio is 5.8% lower than the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get an historical median dividend yield of 2.38%. The current dividend yield is 4.96% based on dividends of $0.76 and a stock price of $15.32. The current dividend is 108% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 5.09. The current P/S Ratio is 4.12 based on 2019 Revenue estimate of $296M, Revenue per Share of $3.45 and a stock price of $15.32. The current ratio is 13% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

Results of stock price testing is that the stock price is cheap to reasonable. My testing is showing the stock price as either cheap or below the median. I do not see any particular problem with any of the above tests.

Is it a good company at a reasonable price? This company supports companies in the oil and gas industry and therefore is of a high risk. Sometimes these support companies do better than companies producing oil and gas. The price seems to be from cheap to reasonable.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (3) and Hold (1). The consensus would be a Buy. The 12 month stock price is $20.10. This implies a total return of 36.16% with 31.20% from capital gains and 4.96% from dividends based on a current price of $15.32.

See what analysts are saying on Stock Chase . There are few entries with the most recent one being positive. Ambrose O'Callaghan on Motley Fool thinks this is current a good dividend stock to buy. A writer on Simply Wall Street talks about institutional ownership. A writer on Simply Wall Street thinks this company can afford their dividends. A JWN staff JWN Energy talks about this company buying a stake in a technology company.

Pason Systems Inc is an oilfield specialist with fully integrated drilling data solutions. A host of products allow customers to collect, manage, report, and analyze drilling data for performance optimization and cost control. The company operates in three geographic segments: Canada, the United States, and International (Latin America, Offshore, the Eastern Hemisphere, and the Middle East). 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 Monday, October 28, 2019 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.

North West Company

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. The stock price is probably reasonable. Debt ratios are currently good, but debt is increasing. Dividend increases currently lower than in the past. They have a long history of paying dividends. See my spreadsheet on North West Company.

I do not own this stock of North West Company (TSX-NWC, OTC-NWTUF). 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. The

When I was updating my spreadsheet, I noticed that the debt is increasing. So far this year the increase is 42%. In 208 it was 17% and in 2017 it was 37%. The Long Term Debt/Market Cap is still fine at 0.38 currently.

Talk about dividends yields and growth. The dividends are in the moderate range (2% to 4% ranges). The current dividend is 4.69%. The 5, 10 and historical median dividend yields are 4.49%, 4.64% and 4.82%. For a while the dividend yields were higher because this company was an income trust between 1997 and 2011. The dividend yields have varied over time.

The Dividend Payout Ratios are fine. The DPR for EPS for 2019 was 72% with 5 year coverage at 83%. The DPR for CFPS for 2019 was 36% with 5 year coverage at 37%.

Debt Ratios are fine. The Long Term Debt/Market Cap ratio for 2019 is 0.24. The Liquidity Ratio for 2019 is 2.13 with 5 year median also at 2.13. The Debt Ratio for 2019 was 1.70 with 5 year median at 1.82. The Leverage and Debt/Equity Ratios for 2019 is 2.50 and 1.47 with 5 year medians at 2.20 and 1.20.

The Total Return per year is shown below for years of 5 to 27 to the end of 2018. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	4.24%	8.49%	4.07%	4.42%
2008	10	2.20%	12.06%	6.40%	5.67%
2003	15	6.47%	17.12%	9.32%	7.80%
1998	20	12.04%	18.62%	9.97%	8.65%
1993	25	9.93%	12.07%	7.03%	5.04%
1991	27	8.87%	11.33%	6.76%	4.57%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 16.43, 18.54 and 20.66. The corresponding 10 year ratios are 15.43, 17.65 and 19.75. The corresponding historical ratios are 9.9, 12.82 and 15.19. The current P/E Ratio is 17.38 based on a stock price of $28.15 and 2020 EPS estimate of $1.62. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $17.34. The 10 year low, median, and high median Price/Graham Price Ratios are 1.47, 1.68 and 1.84. The current P/GP ratio is 1.62 based on the stock price of $28.15. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year median Price/Book Value per Share Ratio of 3.56. The current P/B Ratio is 3.41 based on Book Value of $402M, Book Value per Share of $8.38 and a stock price of $28.15. The current ratio is some 4% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get an historical median dividend yield of 4.82%. The current dividend yield is 4.69% based on dividends of $1.32 and a stock price of $18.15. The current yield is 3% below the historical median yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.

The 10 year median Price/Sales (Revenue) Ratio is 0.71. The current P/S Ratio is 0.65 based on 2020 Revenue estimate of $2,097M, Revenue per Share of $45.01 and a stock price of $28.15. The current ratio is 8% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

Results of stock price testing is that the stock price is probably reasonable. Most of the testing shows this. The exception is the dividend yield test. However, yield has varied a lot with this stock because it started as a corporation, the became an income trust and then back to a corporation. What is perhaps telling is the last of recent divided increases. There were no increases in 2019 and so far in this financial period an increase of 3.1%. This shows that management’s short term expectations are low.

Is it a good company at a reasonable price? The company seems to be a good dividend payer. They have been paying dividends each year for the past 30 years that I know of. I would expect slow growth in dividends in the future. It could be considered to be a defensive stock like Aditya Raghunath talks about in a Motley Fool write up below. The stock price is probably reasonable.

When I look at analysts’ recommendations, I find Buy (1) and Hold (4) recommendations. The consensus would be a Hold. The 12 months stock price consensus is $31.00. This implies a total return of 14.81% with 10.12% from capital gains and 4.69% from dividends.

See what analysts are saying on Stock Chase. Not a good pick by some analysts and they question the buying of a small regional airline. Aditya Raghunath on Motley Fool thinks this is a great defensive stock. Simply Wall Street says the company pays out more than the free cash flow . A writer on Market Stock Alerts says the current Price Option Signal is a Sell. A news release by the company on Newswire says the company can increase the level of non-Canadian ownership control..

The North West Co Inc is a Canada-based company that is principally engaged in retail business in underserved rural communities and urban neighborhoods. The company operates business in Northern Canada, Western Canada, rural Alaska, the South Pacific islands, and the Caribbean, with around two thirds of the company's total revenue coming from the Canadian market. Its web site is here North West Company.

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 Friday, 25, 2019 around 5 pm possibly. I am going on Holidays on October 20, 2019.

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.

Equitable Group Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Financial. The company has been doing well lately with good growth in Revenue and Earnings. I also looked at the long term return to date as the stock is up 80% so far this year. 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.

When I was updating my spreadsheet, I noticed that the spreadsheet is filled with green ink because this company has been doing well. The only exception is cash flow and as with banks, the cash flow can be negative. For example, the Revenue per share is up by 13% per year over the past 5 years and the 5 year running average for the latest 5 year period is up by 16% per year. Also, the EPS is up by 11% per year over the past 5 years and the 5 year running average for the latest 5 year period is up by 14% per year.

Dividends are in the low range (below2%). The current dividend is 1.24%, with 5, 10 and historical median dividend yields at 1.50%, 1.65% and 1.50%. The dividends are growing at a moderate rate (8% to 14% range). As shown in the chart below, the dividends growth is increasing. The last dividend increase was for 2019 and it was for 6.5%. However, they generally do more than one increases each year.

The Dividend Payout Ratios are very low. The DPR for EPS for 2018 is 11% with 5 year coverage at 10%.

Debt Ratios are fine. Since this is a bank type stock, you do not look at Long Term Debt/Market Cap Ratio but you look at the Long Term Debt/Long Term Assets Ratio. For this stock the ratio is 0.75 and this is good. I do calculate the Liquidity Ratio, which is 6.60 for 2018 with 5 year median of 4.83. However, this is not an important one for his sort of stock. The Debt Ratio is important and it is 1.05 which is fine for this sort of stock.

The Total Return per year is shown below for years of 5 to 15 to the end of 2018. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	12.60%	4.64%	3.10%	1.54%
2008	10	10.13%	20.11%	17.54%	2.58%
2003	15	9.84%	7.80%	6.44%	1.36%

Because this stock has gone up 80% this year, it is worthwhile looking at the Total Return to date. This shows much better total returns than the chart above which is to the end of 2018. The stock hit a low at the end of 2018.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2013	5	12.60%	11.37%	10.20%	1.17%
2008	10	10.13%	19.09%	17.51%	1.58%
2003	15	9.84%	12.24%	11.01%	1.23%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 5.43, 6.43 and 7.70. The corresponding 10 year ratios are 5.46, 6.62 and 7.64. The corresponding historical ratios are 5.67, 6.99 and 8.43. The current P/E Ratio is 9.04 based on a stock price of $106.72 and 2019 EPS estimate of 11.80. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $143.68. The 10 year low, median, and high median Price/Graham Price Ratios are 0.45, 0.53 and 0.62. The current P/GP Ratio is 0.74 based on a stock price of $106.72. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year median Price/Book Value per Share Ratio of 0.98. The current P/B Ratio is 1.37 based on a stock price of $106.72, Book Value of $1,287M and a Book Value per Share of $77.73. The current ratio is some 39% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I get an historical median dividend yield of 1.50%. The current dividend yield is 1.24% based on dividends of $1.32 and a stock price of $106.72. The current yield is 18% below the historical median yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.

The 10 year median Price/Sales (Revenue) Ratio is 3.21. The current P/S Ratio is 3.82 based on 2019 Revenue estimate of $463M, Revenue per Share of $27.97 and a stock price of $106.72. The current ratio is 19% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

Results of stock price testing is that the stock price is probably getting or is expensive. Most of the testing shows that the stock price is expensive. The ones that I like best of P/S Ratio and dividend yield show that it is relatively reasonable but above the median. However, the scores do show that the price is close to expensive.

Is it a good company at a reasonable price? This certainly looks like a good long term investment if you are willing to take on the risk. This is considered to be a high risk stock. The stock price is on the pricey side.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (4) and Hold (2). The consensus would be a Buy. The 12 month stock price consensus is $105.29. This implies a loss of 0.10% with a capital loss of 1.34% and dividends of 1.24%.

See what analysts are saying on Stock Chase. They have various view and most like the company. Ambrose O'Callaghan on Motley Fool thinks that the stock is too pricey. A writer on Simply Wall Street talks about what the beta means for this stock. A writer on Simply Wall Street talks about the recent big price increase for this stock. A writer on Market Stock Alerts says the company is showing a weak buy signal.

Equitable Group Inc is a Canadian company that operates business through Equitable Bank, the company's subsidiary. The company also runs a digital bank under the EQ Bank brand. The company operates business across Canada, with the majority of mortgage principal coming from Ontario, Alberta, and Quebec. Its web site is here Equitable Group Inc.

The last stock I wrote about was about was Medtronic PLC (NYSE-MDT) ... learn more. The next stock I will write about will be North West Company (TSX-NWC, OTC-NWTUF) ... learn more on Friday, October 18, 2019 around 5 pm. Tomorrow on my other blog I will write about Money Show 2019 – Steve Hawkins.... learn more on Thursday, October 17, 2019 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.