Goeasy Ltd

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. The stock price is probably relatively expensive. I do not like most of the debt ratios. They are giving out a lot of stock options. See my spreadsheet on Goeasy Ltd.

I do not own this stock of Goeasy Ltd (TSX-GSY, OTC-EHMEF). I would not buy this company. There are complains about this company charging interest rates around the legal limit which is 60%. They may go over because of fees. Also, there are comments about how much it charges for people to buy from them on the installment plan. For example, their SAMSUNG 58'' 4K UHD TV is listed at $25 per months for 156 months. This is $3900.00. The Best Buy have it for $699.99. I check this online on June 09, 2020.

When I was updating my spreadsheet, I noticed that I still do not like their debt situation. The Long Term Debt/Market Cap for 2019 is ok at 0.70, but the current one is 0.94 and so is getting rather high. The Debt Ratio is low at 1.34. The Leverage and Debt/Equity Ratios are too high at 4.01 and 3.00.

Stock options are much to high. The increase in Outstanding Shares for 2020 is 2.57%. The 5 year median increase in shares for stock options is 1.72. What you would expect is an increase no greater than 0.50% on average.

The dividend yields are moderate with dividend growth high. The dividend yields from this stock is moderate (2% to 4% ranges) with the current 3.14% and 5, 10 and historical dividend yields at 2.07%, 2.21% and 2.17%. The last 5 dividend increases have been the high range (15% and above). The last dividend increase was for this year at 45.2%. See chart below on Dividend Growth over the years.

The Dividend Payout Ratios (DPR) are fine except for FCF. The DPR for 2019 for EPS is 28% with 5 year coverage at 25%. The DPR for Cash Flow for 219 is 5% with 5 year coverage at 5% also. The DPR for Free Cash Flow for 2019 is negative as is the 5 year coverage so this cannot be calculated. There is some differences in FCF from different sources, but both agree FCF is and has been negative.

Debt Ratios should be improved. The Long Term Debt/Market Cap Ratio for 2019 is 0.70 and the current on is 0.94. The current one is too high and it high because of the drop in the stock price and an increase in debt by 10%. The Liquidity Ratio for 2019 is very good at 3.20, but in the first quarter it is 1.58, which is still a good value. The Debt Ratio is an important one and it is low at 1.34 with 5 year median at 1.44. The current one is only a bit lower at 1.33. The Leverage and Debt/Equity Ratios are too high at 4.01 and 3.00 respectively. They are often too high with the 5 year medians at 3.33 and 2.32.

The Total Return per year is shown below for years of 5 to 24 to the end of 2019. 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.
2014	5	26.26%	30.22%	28.23%	1.99%
2009	10	12.36%	25.77%	23.39%	2.38%
2004	15	14.20%	13.47%	12.02%	1.45%
1999	20		11.19%	10.00%	1.19%
1995	24		5.96%	5.40%	0.55%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 8.85, 11.97 and 14.51. The corresponding 10 year ratios are 8.80, 11.76 and 14.78. The corresponding historical ratios are 9.44, 13.37 and 17.36. The current P/E Ratio is 11.31 based on a stock price of $57.36 and 2020 EPS estimate of 5.07. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $52.49. The 10 year low, median, and high median Price/Graham Price Ratios are 0.65, 0.85 and 1.07. The current P/GP Ratio is 1.09 based on a stock price of $57.36. 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 1.44. The current P/B Ratio is 2.37 based on a stock price of $57.36, Book Value of $347M, and Book Value per Share of $2.37. The current ratio is 64% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year median Price/Cash Flow per Share Ratio of 2.11. The current P/CF Ratio is 2.47 based on a stock price of $57.36, last 12 month Cash Flow (excluding WC) of $333M and Cash Flow per Share of $23.21. The current ratio is 17% above the 10 year median. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get an historical median dividend yield of 2.17. The current dividend yield is 3.14% base on dividends of 1.80% and a stock price of $57.36. The current dividend yield is 45% above the historical dividend yield. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median dividend yield of 2.21. The current dividend yield is 3.14% base on dividends of 1.80% and a stock price of $57.36. The current dividend yield is 42% above the 10 year dividend yield. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 0.83. The current P/S Ratio is 1.28 based on 2020 Revenue estimate of $642M, Revenue per Share of $35.70 and a stock price of $57.36. The current ratio is 55% above the 10 year 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. I know that the dividend yield test is showing the stock as cheap, but dividends are rising (5 year, 26.3% per year) faster than both EPS (5 year, 24% per year) and Revenue (5 year, 16.9% per year). The P/S Ratio test shows the stock price is relatively expensive. The Revenue estimates are probably reasonable.

Why the P/B Ratio tests say that the stock is showing the stock as expensive is because the book value is not growing as fast as the earnings. 5 year EPS growth is 24% per year, but 5 year Book Value per Share growth is 15% per year. Because the Graham Price includes both EPS and Book Value in its calculation, it is showing as expensive because of the Book Value part and lower growth in Book Value. However, the P/GP Ratios are low and a P/GP Price of 1.09 on an absolute basis is not high. There is nothing wrong with the P/CF Ratio test. It is showing as reasonable but above the median because the CF is growing, but not as fast as earnings.

Is it a good company at a reasonable price? First, I would not buy this stock because of the complaints against the company and I do not like investing in Pay Day type Loan companies as a way of making money. I am inclined to think that the stock price is relatively expensive, but I would be wrong. It is certainly not cheap.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (4) and Sell (1). The consensus would be a Buy. The 12 month stock price is $61.21. This implies a total return of 9.85%, with 6.71% from capital gains and 3.14% from dividend.

Some analysts on Stock Chase do not like their business. Adam Othman on Motley Fool likes this for a TFSA account as it has made a good recovery from the March lows. A writer on Simply Wall Street likes this company because dividend is well covered by earnings and it has been increasing nicely. A writer on Simply Wall Street talks about this stock’s beta and what it means. News on Reuters talks about National Bank raising the target price to $66 from $45 or this stock.

Goeasy Ltd provides financial services to own furniture, electronics, computers, and appliances. It offers merchandise leasing of household furnishings, appliances, and home electronic products to consumers under weekly or monthly leasing agreements. The company also offers unsecured installment loans to consumers. Its web site is here Goeasy Ltd.

The last stock I wrote about was about was Husky Energy Inc (TSX-HSE, OTC-HUSKF) ... learn more. The next stock I will write about will be Lassonde Industries (TSX-LAS.A, OTC-LSDAF) ... learn more on Friday, June12, 2020 around 5 pm. Tomorrow on my other blog I will write about Construction Stocks.... learn more on Thursday, June 11, 2020 around 5 pm.

Also, on my book blog I have put a review of the book Three Stones Make a Wall by Eric Cline 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.

Husky Energy Inc

Sound bite for Twitter and StockTwits is: Dividend Paying Resource. The stock price is probably cheap. Dividends were recently cut by 90%, so management does not expect much in the short term. Poor record for dividend growth. See my spreadsheet on Husky Energy Inc .

I do not own this stock of Husky Energy Inc (TSX-HSE, OTC-HUSKF), but I used. I had been tracking this stock prior to buying it. I sold this stock to buy Canadian Utilities Ltd (TSX-CU, OTC-CDUAF). I gave up hoping for an oil and gas recovery. I never had much in oil and gas in any event. I had Husky from 2008 to 2017 and had a total loss of 4.53% per year.

When I was updating my spreadsheet, I noticed it did not come anywhere near the estimates given last year. However, this company is in the Oil and Gas sector and the bottom fell out of the market in this sector. There is only a bit of insider buying going on. The big cut in dividends shows that the company does not expect to do well in the short term.

The dividend yields are moderate with dividend growth varied. The current dividend yield is low (under 2%) at 0.85% because of recent dividend cut. It has not often been low. The 5 year dividend yield is just into the low range at 1.99%. The 10 and historical dividend yields are moderate (2% to 4% ranges) at 4.00% and 3.87%. Dividend have gone down as well as up and some years they were flat. Of The 18 years of dividend payments, 7 years saw dividend increases and 6 years saw dividend decreases.

The Dividend Payout Ratios (DPR) are generally not good. The Dividends have not always been well covered by DPR. I cannot calculate the coverage for 2019 nor for the last 5 years because of EPS losses. The DPR for CFPS for 2019 is low at 15% with 5 year coverage at 14%. The DPR for Free Cash Flow for 2019 cannot be calculated before of negative FCF. The 5 year coverage is very high at 92%.

Debt Ratios are probably fine. The Long Term Debt/Market Cap Ratio for 2019 is fine at 0.44. However, it rises to 1.02 because the stock price has fallen some 49% this year. The Liquidity Ratio for 2019 is 1.07. When you add in Cash Flow after dividends it is good at 1.60. However, this ratio is much lower currently at 1.01 and when you add in estimated Cash Flow after dividends it is only 1.12. Of course, we really do not know how accurate the estimate is. Leverage and Debt/Equity Ratio for 2019 are good at 1.92 and 0.93. The current ones also are good at 1.93 and 0.93

The Total Return per year is shown below for years of 5 to 30 to the end of 2019. 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.
2014	5	-16.06%	-15.35%	-17.64%	2.29%
2009	10	-9.78%	-5.95%	-10.06%	4.11%
2004	15	0.86%	5.65%	-3.26%	8.91%
1999	20	3.48%	12.82%	1.69%	11.12%
1994	25		4.56%	-1.05%	5.61%
1989	30		3.86%	-0.63%	4.49%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 9.56, 12.88 and 16.20. The corresponding 10 year ratios are 12.34, 14.71 and 17.21. The corresponding historical ratios are 9.64, 12.37 and 14.63. The current P/E Ratio is negative as is the one for 2021. The P/E Ratio for 2022 is 9.38 based on a stock price of $5.91 and EPS estimate for 2022 of $0.63. This testing suggests that the stock price is relatively cheap.

I estimate the Graham Price to be $14.66. The 10 year low, median, and high median Price/Graham Price Ratios are 0.73, 0.90 and 1.10. The current P/GP Ratio is 0.40. 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 1.35. The current P/B Ratio is 0.39 based on a Book Value of $15,247M, Book Value per Share of $15.17 and a stock price of $5.91. The current ratio is 71% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median P/CF Ratio is 5.05. The current P/CF Ratio is 10.55 based on 2020 Cash Flow per Share estimate of $0.56, Cash Flow of $563M and a stock price of $5.91. The current ratio is 109% above the 10 year ratio. This stock price testing suggests that the stock price is relatively expensive.

I get an historical median dividend yield of 3.87%. The current dividend yield is 0.85% based on dividends of $0.05 and a stock price of $5.91. The current dividend yield is 78% 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 4.00%. The current dividend yield is 0.85% based on dividends of $0.05 and a stock price of $5.91. The current dividend yield is 79% below the 10 year dividend yield. This stock price testing suggests that the stock price is relatively expensive.

The 10 year median Price/Sales (Revenue) Ratio is 1.16. The current P/S Ratio is 0.43 based on 2020 Revenue estimate of $13,838M, Revenue per Share of $13.82 and a stock price of $5.91. The current ratio is 63% below the 10 year ratio. This stock price testing suggests that the stock price is relatively cheap.

Results of stock price testing is that the stock price is probably cheap. The best test is the P/S Ratio testing and this is showing the stock price as relatively cheap. The P/B Ratio testing also show the stock as relatively cheap and there is no problem with this test. I cannot use the dividend yield tests as there has recently been a big cut to the dividends.

The problem with the P/E testing is that the next two estimates are showing EPS losses and you cannot do any testing of the P/E Ratio with EPS losses. This is also the same with the Graham Price as it is hard to calculate with EPS losses. The problem with the P/CF Ratio test is that the CFPS estimate for 2020 is 81% below the CFPS for 2019. The P/CF Ratio for 2021 and 2022 are 3.00 and 1.66 respectively and would show the stock price as cheap.

Is it a good company at a reasonable price? I am not fond of resource stocks and have very little. This is a good size Canadian company. However, I do like good dividend payers. This company has over the past 18 years increased dividends 7 times, but have decreased them 6 times with other years of no changes. Not much good for a dividend paying stock. I would not buy again.

When I look at analysts’ recommendations, I find Buy (1), Hold (1), Underperform (3) and Sell (3). The consensus would be Underperform. The 12 month stock price consensus is $4.21. This implies a total loss of 27.92% with a capital loss of 28.76 and dividends of 0.85%.

Analysts on Stock Chase are lately negative on this company. Vineet Kulkarni on Motley Fool says although the stock is up from the March lows, the worse may not be over. A writer on Simply Wall Street reviews this stock. A writer on Simply Wall Street thinks the company has too much debt. Gabriel Friedman on Financial Post talks about oil prices going up last Friday.

Husky Energy is one of Canada's largest integrated energy companies, operating in western Canada, the United States, and the Asia-Pacific and Atlantic regions. Its web site is here Husky Energy Inc .

The last stock I wrote about was about was Maxar Technologies Ltd (TSX-MAXR, NYSE-MAXR) .... learn more. The next stock I will write about will be Goeasy Ltd (TSX-GSY, OTC-EHMEF) ... learn more on Wednesday, June 10, 2020 around 5 pm. Tomorrow on my other blog I will write about Buybacks.... learn more on Tuesday, June 9, 2020 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.

Maxar Technologies Ltd

Sound bite for Twitter and StockTwits is: Dividend Paying Tech. The stock price is relatively cheap. I do wonder how good the future will be or this stock. They need to improve their debt ratios. It is highly speculative. They have cut the dividend by 96%. This is not a good sign. See my spreadsheet on Maxar Technologies Ltd.

I do not own this stock of Maxar Technologies Ltd (TSX-MAXR, NYSE-MAXR). I read about this stock in MPL Communication's Advice Hotline dated October 10, 2012. CanTech like it in 2012. It is a Tech stock with dividends.

When I was updating my spreadsheet, I noticed that the Long Term Debt/Market Cap Ratio is very high at 3.11 for 2019 and currently at 3.24. The Intangible Assets/Market Cap Ratio for 2019 is 3.10 and currently at 3.25. When these ratios are over 1.00 it means that Long Term Debt and Intangible Assets are both higher than the current market cap of the stock. This is not a good situation.

Some debt ratios are improving from last year, but they are still awful. The Debt Ratio this year is 1.17 which is still too low but better than last year’s 1.15. The Leverage and Debt/Equity Ratios are very high at 6.68 and 5.78 but improved from last year’s 7.78 and 6.78.

The dividend yields are low with dividend growth non-existent. Dividends have been paid in US$ since 2019. The dividend yield is mostly always been low (under 2%) for this stock. The current dividend yield is 0.25%. This very low dividend yield is caused by a 96% decrease in dividends in 2019. Still the 5, 10 and historical dividend yields are low at 1.89%, 1.87% and 1.87%. Dividends started in 2012. There was only one dividend increase and it was in 2016.

The Dividend Payout Ratios (DPR) are currently good. The DPR for EPS for 2019 was 2.21%. The 5 year coverage cannot be calculated because of the huge EPS loss in 2018. The DPR for CFPS for 2019 is 0.53% with 5 year coverage at 15%. The DPR for Free Cash Flow for 2019 was 67% with 5 year coverage at 995%.

Debt Ratios could be improved. The Long Term Debt/Market Cap Ratio for 219 is 3.11 and is currently at 3.24. This means that the Long Term Debt is much higher than the market cap for this stock. This is because of the sharp drop in share price beginning in 2018. The Liquidity Ratio for 2019 is 1.27 and if you add in cash flow after dividends, it is 1.58. This is a good ratio. The Debt Ratio is quite low at 1.17 for 2019 and it has a 5 year median of 1.43. I prefer this to be at least at 1.50. The Leverage and Debt/Equity Ratios are much too high in 2019 at 6.78 and 5.78 respectively.

The Total Return per year is shown below for years of 5 to 19 to the end of 2019 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.
2014	5	-47.48%	-24.36%	-26.51%	2.14%
2009	10	-36.87%	-3.81%	-7.12%	3.30%
2004	15		0.86%	-1.84%	2.70%
2000	19		1.75%	-0.47%	2.21%

The Total Return per year is shown below for years of 5 to 17 to the end of 2019 in US$. 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.
2014	5	-48.65%	-26.18%	-28.13%	1.95%
2009	10	-39.23%	-5.93%	-9.09%	3.16%
2004	15		0.83%	-2.02%	2.85%
2002	17		3.36%	0.56%	2.80%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 17.16, 20.92 and 24.68. The corresponding 10 year ratios are 17.97, 21.71 and 25.39. The corresponding historical ratios are 18.00, 21.71 and 25.39. The current P/E Ratio is negative, so this test cannot be done. The next positive P/E Ratio is for 2022 and is 13.31 based on EPS estimate for 2022 of $1.68 ($1.22 US$) and stock price of $22.38. This stock price testing suggests that the stock price is relatively cheap. This is in CDN$.

My best estimate for a Graham Price is $23.90. The 10 year low, median, and high median Price/Graham Price Ratios are 1.44, 1.86 and 2.19. The current P/GP Ratio is 0.94 based on a stock price of $22.38. This stock price testing suggests that the stock price is relatively cheap. This is in CDN$.

I get a 10 year median Price/Book Value per Share Ratio of 3.34. The current P/B Ratio is 1.51 based on Book Value of $656M, Book Value per Share of $10.95 and a stock price of $16.53. The current ratio is 55% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This is in US$ and you will get similar results in CDN$.

I get a 10 year median Price/Cash Flow per Share Ratio of 15.56. The current P/CF Ratio is 5.90 based on 2020 Cash Flow per Share of $2.80, Cash Flow of $168M and a stock price of $16.53. The current ratio is 62% below the 10 year median ratio. This is in US$ and you will get similar results in CDN$.

I get an historical median dividend yield of 1.87%. The current dividend yield is 0.25% based on Dividends of $0.06 CDN$ ($0.04 US$) and a stock price of $22.38. The current dividend yield is 87% below the historical dividend yield. This stock price testing suggests that the stock price is relatively expensive. This is in CDN$. Since dividend have only been paid for 7 years, a maximum median dividend yield would yield the same result.

The 10 year median Price/Sales (Revenue) Ratio is the 1.47. The current P/S Ratio is 0.58 based on 2020 Revenue estimate of $2,308M, Revenue per Share of $38.53 and a stock price of $22.38. The current ratio is 61% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This is in CDN$.

Results of stock price testing is that the stock price is probably relatively cheap. The best test of P/S Ratio points to that conclusion as does the P/GP Ratio, the P/B Ratio, and the P/CF Ratio tests. The dividend yield test is not much good because the dividends have been cut. Since there is no positive EPS expected this year and next, the P/E Ratio test is not much good.

Is it a good company at a reasonable price? You have to wonder about the future for this company. It is selling cheap but highly speculative. It would appear that management does not expect the near future to be good because it has cut is dividend. Insiders were buying last year, but this year they are doing nothing. Analysts does not expect positive earnings this year and next. So, it would appear that recovery will be not be soon.

When I look at analysts’ recommendations, I find Buy (3) and Hold (6). The consensus would be a Hold. The 12 month stock price is $15.50 US$ or $21.37 CDN$. This implies a total loss of 4.27% with a capital loss of 4.51% and dividends of 0.25%.

Analyst on Stock Chase talks about the mistakes this company has made. Vishesh Raisinghani on Motley Fool says it is time to take a look at this stock. A writer on Simply Wall Street thinks this company has a great future, is undervalued, but will have negative growth in the near future. There is a long announcement on Financial Post about this company’s first quarter of 2020. Denise Gardner on News Heater asks if is a good time to buy this stock. Jason Mann on CanTech says stay away from this firm.

Maxar Technologies Inc is an integrated space and geospatial intelligence company with a full range of space technology solutions for commercial and government customers including satellites, Earth imagery, geospatial data, and analytics. Its web site is here Maxar Technologies Ltd.

The last stock I wrote about was about was Ensign Energy Services (TSX-ESI, OTC-ESVIF) ... learn more. The next stock I will write about will be Husky Energy Inc (TSX-HSE, OTC-HUSKF) ... learn more on Monday, June 08, 2020 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.

Ensign Energy Services

Yesterday afternoon, I bought a small number of shares in this company and in Hardwoods Distribution Inc (TSX-HDI, OTC-HDIUF). I am just fooling around. The stock market is not doing much. Ensign has tanked and Hardwoods is not doing too badly considering the economic climate.

Sound bite for Twitter and StockTwits is: Cheap Industrial Stock. The stock price is cheap. There is insider buying by Chair, CEO and CFO. They do have good cash flow, but debt is high. See my spreadsheet on Ensign Energy Services.

I used to own this stock of Ensign Energy Services (TSX-ESI, OTC-ESVIF) prior to yesterday. I bought this stock in June 2012. Stock is a good one and was rather cheap in June of 2012. I had been following this stock for some time. I sold this stock in December 2014 to buy Mullen instead. Details of why is in a December 2014 post. I know I would be selling Ensign at a loss, but I also could buy Mullen cheaply.

When I was updating my spreadsheet, I noticed there is both insider buying and institutional buying. There is insider buying by CEO CFO and Chairman.

The dividend yields were recently high with dividend growth non-existent. Recently the dividend yields were over 16% before the company suspended their dividends. There has been no growth in dividends since 2015. Dividends have been suspended this year.

The Dividend Payout Ratios (DPR) have been unaffordable for EPS but not bad in connection with CF or FCF. As far as EPS goes, the company could not afford paying dividends since 2014. The DPR for CFPS for 2019 was 22% with 5 year coverage at 35%. The DPR for Free Cash Flow for 2019 was 40% with 5 year coverage at 55%.

Debt Ratios are mostly fine. The Long Term Debt/Market Cap Ratio was over 1.00 in 2018 and up to 3.41 in 2019 and currently is at 14.03. When a stock price crashes you get this problem. The Liquidity Ratios have mostly been low and to get a decent ratio you needed to add in cash flow after dividends. However, the current ratio is good at 1.53, but the 5 year median is just 0.96. If you had in cash flow after dividend, it is 2.00 with a 5 year ratio of 1.21.

The Debt Ratio has been good with the one for 2019 at 1.73 and the 5 year median at 2.33. The Leverage and Debt/Equity Ratios were good until 2018, and then were higher but still fine in 2019. These ratios were 2.37 and 1.37 in 2019 with 5 year medians of 1.75 and 0.75.

The Total Return per year is shown below for years of 5 to 28 to the end of 2019. 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.
2014	5	0.42%	-14.55%	-22.51%	7.96%
2009	10	3.43%	-8.79%	-15.30%	6.51%
2004	15	8.31%	-3.15%	-9.41%	6.26%
1999	20	9.58%	3.55%	-3.31%	6.87%
1994	25	15.03%	15.71%	5.03%	10.68%
1989	30		25.57%	10.67%	14.90%

The Total Return per year is shown below for years of 5 to 28 to the current date. It is surprising that it is not that much more awful in total return to the current date considering, the stock has tanked.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2014	5	0.42%	-24.20%	-37.22%	13.02%
2009	10	3.43%	-15.33%	-26.20%	10.87%
2004	15	8.31%	-11.80%	-20.73%	8.93%
1999	20	9.58%	-1.83%	-11.98%	10.15%
1994	25	15.03%	13.13%	-1.91%	15.04%
1989	30		25.34%	5.18%	20.16%

Results of stock price testing is that the stock price is probably cheap. Most of the testing points to that. The P/S Ratio is a good test and it points to the stock being relatively cheap. The P/B Ratio and the P/CF Ratio tests are good ones and they point to the stock as being relatively cheap. The P/GP Ratio also points to this, but I am using my best guess for a Graham Price, so this test can be questioned.

Is it a good company at a reasonable price? Probably not and buying this company at this point would be highly speculative. However, the price is cheap and I am betting that the company will not only survive, but come back as a viable company that will again pay dividends. Time will tell.

The 5 year low, median, and high median Price/Earnings per Share Ratios are all negative so cannot be used. The corresponding 10 year ratios are 9.20, 11.55 and 13.90. The corresponding historical ratios are 8.59, 12.36 and 16.62. The current P/E Ratio is negative, so this test cannot be done.

My best estimate for the Graham Price is $8.79. The 10 year low, median, and high median Price/Graham Price Ratios are 0.62, 0.78 and 0.97. The current P/GP Ratio is 0.08 based on a stock price of $0.72. This stock price testing suggests that the stock price is relatively reasonable cheap.

I get a 10 year median Price/Book Value per Share Ratio of 0.87. The current P/B Ratio is 0.08 based on a Book Value of $1,509M, Book Value per Share of $9.27 and a stock price of $0.72. The current ratio is 91% below the stock price. This stock price testing suggests that the stock price is relatively reasonable

I get a 10 year median Price/Cash Flow per Share Ratio of 5.91. The current P/CF Ratio is 1.11 based on Cash Flow per Share estimate for 2020 of $0.65, Cash Flow of $106M and a stock price of $0.72. The current ratio is 81% below the 10 year median ratio. Results of stock price testing is that the stock price is?

I cannot do an historical median or 10 year median dividend yield test since the company has suspended their dividends.

The 10 year median Price/Sales (Revenue) Ratio is 1.15. The current P/S Ratio is 0.11 based on 2020 Revenue estimate of $1,022M, Revenue per share of $6.28 and a stock price of $0.72. The current ratio is 90% below the 10 year median ratio. Results of stock price testing is that the stock price is?

When I look at analysts’ recommendations, I find Buy (1), Hold (8), Underperform (2) and Sell (1). The consensus would be a Hold. The 12 month stock price consensus is $0.71. This implies a total loss of 1.4% all from a capital loss.

There is one recent entry on Stock Chase and it is rather positive. Joey Frenette on Motley Fool thinks this stock is one to take a few nibbles on. A writer on Simply Wall Street talks about insider buying at this company. A writer on Simply Wall Street is uneasy about the debt level of this company. Dan Healing on Global News talks about the company’s first quarter of 2020. Bob Geddes, CEO on a call to discuss first-quarter results said he never imaged such problems as we are now having, but “Nonetheless, it is reality, we adjust and we figure it out.”

Ensign Energy Services Inc is a Canada-based oil services company. It offers services in drilling and well servicing, oil sands coring, directional drilling, underbalanced and managed pressure drilling, equipment rentals, transportation, wireline services, and production testing services. Its web site is here Ensign Energy Services.

The last stock I wrote about was about was Hardwoods Distribution Inc (TSX-HDI, OTC-HDIUF) ... learn more. The next stock I will write about will Maxar Technologies Ltd (TSX-MAXR, NYSE-MAXR) .... learn more on Friday, June 8, 2020 around 5 pm. Tomorrow on my other blog I will write about Something to Buy June 2020.... learn more on Thursday June 07 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.

Hardwoods Distribution Inc

Hardwoods Distribution IncSound bite for Twitter and StockTwits is: Dividend Growth Material. The stock price is relatively reasonable and below the median. The Dividend Payout Ratios are good. Debt has increased a lot lately. See my spreadsheet on Hardwoods Distribution Inc.

I do not own this stock of Hardwoods Distribution Inc (TSX-HDI, OTC-HDIUF). In April 2017, I asked for suggestions on what stocks I should now follow because of a number that I had followed had been bought out. This was one of the suggestions.

When I was updating my spreadsheet, I noticed there is a lot of insider buying. I looked at the Chairman, CEO and CFO and they all are buying. Debt has increased a lot lately.

The dividend yields are currently low to moderate with dividend growth moderate to good. This company used to be an income trust. Income trust have much higher dividend yields and can afford to payout more than corporations. When this stock changed to a corporation it suspended its dividend for a couple of years.

The current dividend yield is moderate (2% to 4% ranges) at 2.35%. The 5 and 10 year median dividend yields are low (below 2%) at 1.36% and 1.72%. The historical median dividend yield is moderate at 2.05%. When the dividends were restarted in 2010, the dividend increases were good (15% and over) until 2018 when they became lower and into the low range (Under 8%). The last dividend increase was for 2020 and it was for 6.25%.

The Dividend Payout Ratios (DPR) are good. The DPR for EPS for 2019 is 23% with 5 year coverage at 19%. The DPR for CFPS is 9% with 5 year coverage at 10%. The DPR for Free Cash Flow for 2019 was 8% with 5 year coverage at 17%. This is some agreement on Free Cash Flow for this company.

Debt Ratios are good but debt has recently increased a lot. Long Term Debt has recently increased a lot. However, the Long Term Debt/Market Cap Ratio is good at 0.24 with the current ratio at 0.28. The Liquidity Ratio for 2019 is 1.72 and it has always been good. The Debt Ratio for 2019 is 1.99 and this ratio has also always been good. The Leverage and Debt/Equity Ratio for 2019 is higher than it has ever been at 2.01 and 1.01 with the current ratios better at 1.96 and 0.96.

The Total Return per year is shown below for years of 5 to 15 to the end of 2019. 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.
2014	5	13.49%	9.13%	7.19%	1.95%
2009	10	15.36%	26.20%	23.34%	2.85%
2004	15	-5.34%	5.07%	2.15%	2.92%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 9.73, 12.55 and 15.38. The corresponding 10 year ratios are 9.46, 12.26 and 14.68. The corresponding historical ratios are 8.86, 10.65 and 14.09. The current P/E Ratio is 23.31 based on a stock price of $14.45 and 2020 EPS estimate of $0.62. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $13.39. The 10 year low, median, and high median Price/Graham Price Ratios are 0.64, 0.82 and 1.04. The current P/GP Ratio is 1.08 based on a stock price of $14.45. 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 1.25. The current P/B Ratio is 1.12 based on a stock price of $14.45, Book Value per Share of $12.86, and a Book Value of $275M. The current ratio is 10% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year median Price/Cash Flow per Share Ratio of 16.73. The current P/CF Ratio is 3.83 based on a stock price of $14.45, Cash Flow for the last 12 months of $79.8M, Cash Flow per share of 3.77. The current ratio is 77% below the 10 year ratio. This stock price testing suggests that the stock price is relatively cheap.

I get an historical median dividend yield of 2.05%. The current dividend yield is 2.35% based on dividends of $0.34 and a stock price of $14.45. The current dividend yield is 15% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year median dividend yield of 1.72%. The current dividend yield is 2.35% based on dividends of $0.34 and a stock price of $14.45. The current dividend yield is 37% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 0.31. The current P/S Ratio is 0.26 based on a stock price of $14.45, Revenue estimate for 2020 of $1,164M and Revenue per Share of $55.04. 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 relatively reasonable and below the median. The historical dividend yield says that the stock price is reasonable and below the median and this is confirmed by the P/S Ratio testing. The 10 year median dividend yield test says the stock price is relatively cheap. The P/B Ratio test agrees with the P/S Ratio test and there is nothing wrong with this test.

The problem with the P/E Ratio test is that analyst expect a big drop in EPS for 2020. The P/E Ratio for 2020 and 2022 are 9.90 and 7.90 respectively. The big drop in EPS estimate for 2020 will also adversely affect the P/GP Test. The problem with the P/CF Ratio tests is that for 2019 there is a big change in Working Capital.

Is it a good company at a reasonable price? I do like this company. It is a dividend growth stock having increased their dividend every year for the past 8 years. The stock price seems to be reasonable.

When I look at analysts’ recommendations, I find Strong Buy (2), Buy (1) and Hold (2). The consensus would be a Buy. The 12 month stock price consensus would be $14.90. This implies a total return of 5.47% with 3.11% from capital gains and 2.35 from Dividends.

This stock is not well covered by Stock Chase but the entries are positive. Robin Brown on Motley Fool says that this little know stock is now a bargain. A writer on Simply Wall Street says that the higher than 1.00 beta score shows that this stock will rise quicker than the markets in times of optimism, but fall faster in times of pessimism . A writer on Simply Wall Street says that this company has been growing their dividends but has a low payout ratio and this makes it attractive. Ben Hobson reviews this stock for Stockopedia.

Hardwoods Distribution Inc is a Canadian company which operates a network of distribution centers in Canada and the US engaged in the wholesale distribution of hardwood lumber and related sheet goods and specialty products. Its web site is here Hardwoods Distribution Inc.

The last stock I wrote about was about was IA Financial Corp (TSX-IAG, OTC-IDLLF) ... learn more. The next stock I will write about will be Ensign Energy Services (TSX-ESI, OTC-ESVIF) ... learn more on Wednesday, June 06, 2020 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks June 2020.... learn more on Tuesday, June 05, 2020 around 5 pm.

Also, on my book blog I have put a review of the book Inheritors of the Earth by Chris Thomas 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.

IA Financial Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Financial. The stock price is probably relatively cheap. There is lots of insider buying. See my spreadsheet on IA Financial Corp.

I do not own this stock of IA Financial Corp (TSX-IAG, OTC-IDLLF). This was a stock shown as a dividend growth stock on the Canadian All Star List .

When I was updating my spreadsheet, I noticed that there is dramatic difference in total return when you look at total return to the end of 2019 and to the end of May 2020. Generally, they are roughly the same. This stock took off at end of 2019 and in 2019 the stock price went up over 63%. It fell hard in the bear market (56%) and recovered (30%) but not near where it was. It is down 43%.

I noticed also that there was insider buying. There is buying is by CEO and Chairman. The Net Insider buying is at 0.21% of market cap. This is high. You would expect it to be around 0.01%.

The dividend yields are moderate with dividend growth moderate. The dividends have been mostly in the moderate (2% to 4% ranges) during the time I cover this stock which is for 19 years. The current dividend is 4.34%, and is higher than the other yields. The 5, 10 and historical median dividend yields at 2.71%, 2.80% and 2.51%. Since dividend increases were restarted in 2014, they have been in the moderate (8% to 14% ranges). See the chart below. However, the most recent dividends increase for 2020 is lower at 7.8%.

The Dividend Payout Ratios (DPR) are fine. The DPR for EPS for 2019 is 28% with 5 year coverage at 28%. The DPR for CFPS for 2019 cannot be calculated due to a net cash flow, but the 5 year coverage is at 60%. The DPR for Free Cash Flow is 70% with 5 year coverage at 56%. The bad showing for DPR for CF is because of increased liabilities for insurance contracts.

Debt Ratios are fine. Since this is a financial company, I am looking at the Liabilities/Covering Assets Ratio. For 2019 it is good at 0.77. The Liquidity Ratio, which is not very important for financials) is good at 1.78 for 2019. The Debt Ratio for 2019 is 1.09 and is good for a Financial. The Leverage and Debt/Equity Ratios are 2019 are 13.15 and 12.05 and are fine for a financial.

The Total Return per year is shown below for years of 5 to 19 to the end of 2019. 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.
2014	5	10.74%	12.58%	9.93%	2.65%
2009	10	6.06%	10.88%	8.28%	2.60%
2004	15	10.22%	9.05%	6.62%	2.43%
2000	19	9.78%	9.03%	6.83%	2.20%

The Total Return per year is shown below for years of 5 to 19 to the end of May 2020. As you can see, the total return to date is a lot lower than for the total return to the end of last year.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2015	5	10.74%	1.96%	-1.77%	3.73%
2010	10	6.06%	4.26%	0.92%	3.34%
2005	15	10.22%	5.47%	2.21%	3.26%
2000	20	9.78%	6.51%	3.49%	3.02%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 7.45, 9.19 and 11.18. The corresponding 10 year ratios are 9.39, 11.31 and 12.43. The corresponding historical ratios are 10.30, 11.56 and 13.14. The current P/E Ratio is 10.35 based on a stock price of $44.72 and 2020 EPS estimate of $4.32. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $74.57. The 10 year low, median, and high median Price/Graham Price Ratios are 0.62, 0.75 and 0.83. The current P/GP Ratio is 0.60 based on a stock price of $44.72. 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 1.11. The current P/B Ratio is 0.78 based on a stock price of $44.72, Book Value of $6,120M and a Book Value per Share of $57.21. The current P/B Ratio is 30% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median Price/Cash Flow per Share Ratio of 5.85. The current P/CF Ratio is 2.31 based on last 12 months Cash Flow of $2073, Cash Flow per Share of $19.38 and a stock price of $44.72. The current ratio is 61% below the 10 year ratio. This stock price testing suggests that the stock price is relatively cheap. The last 12 month cash flow is unusually high due to lower contract liabilities and investments gains.

I get an historical median dividend yield of 2.51%. The current dividend yield is 4.34% based on a stock price of $44.72 and dividends of $1.94. The current dividend yield is 73% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median dividend yield of 2.80%. The current dividend yield is 4.34% based on a stock price of $44.72 and dividends of $1.94. The current dividend yield is 55% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 0.53. The current P/S Ratio is 0.38 based on last 12 months Revenue of $12,676M, Revenue per Share of $118.50 and a stock price of $44.72. The current ratio is 28% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

Results of stock price testing is that the stock price is probably cheap. The dividend yield tests show the stock price is relatively cheap and this is confirmed by the P/S Ratio test. The other tests are showing the same results. The only problem I see is with the P/CF Ratio test and this cash flow is unusually high for the first quarter of 2020.

Is it a good company at a reasonable price? I think that his is a good company. It is a dividend growth stock and is on the Dividend Aristocrat list. The stock price is currently relatively cheap.

When I look at analysts’ recommendations, I find Strong Buy (3), Buy (5) and Hold (2). The consensus would be a Buy. The 12 month stock price is $53.40. This implies a total return of $23.75% with 19.41% from capital gains and 4.34% from dividends based on a stock price of $44.72.

There is not much in the way of recent comments on Stock Chase but the ones there are positive. Joey Frenette on Motley Fool says it is a great time to buy this stock. A writer on Simply Wall Street says this stock is selling at a reasonable price. A writer on Simply Wall Street says that this company has a credible dividend history. Megan Harman on Investment Executive talks about the company’s recent acquisitions.

IA Financial Corp is a life and health insurance company. It offers life and health insurance products, savings and retirement plans, mutual funds, securities, auto and home insurance, mortgages, and others. Its web site is here IA Financial Corp.

The last stock I wrote about was about was Ritchie Bros Auctioneers Inc (TSX-RBA, NYSE-RBA) ... learn more. The next stock I will write about will be Hardwoods Distribution Inc (TSX-HDI, OTC-HDIUF) ... learn more on Monday, June 1, 2020 around 5 pm.

Also, on my book blog I have put a review of the book America by Robert Goodwin 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.

Ritchie Bros Auctioneers Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. The stock price is probably reasonable. It has good Dividend Payout Ratios. See my spreadsheet on Ritchie Bros Auctioneers Inc.

I do not own this stock of Ritchie Bros Auctioneers Inc (TSX-RBA, NYSE-RBA). This was a stock suggestion I got and also it was a dividend growth stock found in the Canadian All Star List. Canadian All Star List.

When I was updating my spreadsheet, I noticed that although the stock price went down when all stock prices did, this stock price is back to where it was at the end of 2019. Their first quarter of 2020 is not bad. Their revenue is down a bit and their earnings are up a bit. This company reports in US$ and their dividends are paid in US$.

The dividend yields are low to moderate with dividend growth low. The current dividend yield is just in the Low range (below 2%) at 1.98%. The 5 and 10 year median dividend yields are in the moderate range at 2.15% and 2.14% with the historical median dividend yield low (less than 2%).

Dividend growth has been low (under 8%) in US$ and we should be looking at it in US$ because dividends are paid in US$. See charts below. However, the last increase which occurred this year was higher at 11.1% and this would put it into the moderate range (8% to 14% ranges).

The Dividend Payout Ratios (DPR) are good. The DPR for EPS for 2019 was 56% with 5 year coverage at 64%. The DPR for CFPS for 2019 was 32% with 5 year coverage at 39%. The DPR for Free Cash Flow for 2019 was 28% with 5 year coverage at 45%.

Debt Ratios are fine. The Long Term Debt Market Cap for 2019 is 0.13 and is even lower currently at just 0.07. The Liquidity Ratio for 2019 is at 1.36. If you add in cash flow after dividends, the ratio is much better at 1.85. The Debt Ratio is good at 1.69. The Leverage and Debt/Equity Ratios are fine at 2.47 and 1.47.

The Total Return per year is shown below for years of 5 to 21 to the end of 2019 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.
2014	5	9.52%	14.59%	12.28%	1.31%
2009	10	9.52%	10.84%	8.93%	1.91%
2004	15	13.46%	12.06%	10.04%	2.02%
1999	20	13.55%	12.89%	11.19%	1.70%
1998	21		12.00%	10.48%	1.52%

The Total Return per year is shown below for years of 5 to 21 to the end of 2019 in US$. 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.
2014	5	7.07%	11.92%	9.82%	2.10%
2009	10	7.18%	8.59%	6.71%	1.88%
2004	15	3.71%	11.67%	9.49%	2.18%
1999	20	13.51%	13.78%	11.78%	2.00%
1998	21		13.18%	11.35%	1.82%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 25.31, 29.30 and 33.30. The corresponding 10 year ratios are 25.35, 29.77 and 34.18. The corresponding historical ratios are 25.35, 29.66 and 33.06. These are quite consistent. The current P/E Ratio is 32.57 based on a stock price of $56.60 and 2020 EPS estimate of $1.74 (1.24 US$). This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in CDN$.

I get a Graham Price of $14.87. The 10 year low, median, and high median Price/Graham Price Ratios are 2.02, 2.40 and 2.75. The current P/GP Ratio is 3.81 based on a stock price of $56.60. This stock price testing suggests that the stock price is relatively expensive. This testing is in CDN$.

I get a 10 year median Price/Book Value per Share Ratio of 4.29. The current P/B Ratio is 5.30 based on a Book Value of $860M, Book Value per Share of $7.76 and a stock price of $41.10. The current ratio is 23% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. You will get a similar result in CDN$.

I get a 10 year median Price/Cash Flow per Share Ratio of 17.96. The current P/CF Ratio is 63.23 based on 2020 CFPS estimate of $0.65, Cash Flow of $70.33 and a stock price of $41.10. The current ratio is 252% higher than the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. You will get a similar result in CDN$.

I get an historical median dividend yield of 1.97%. The current dividend yield is 1.98% based on dividends of $1.12 (0.80 US$) and a stock price of $56.60. The current dividend yield is 0.6% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and at the median. This testing is in CDN$.

I get a 10 year median dividend yield of 2.14%. The current dividend yield is 1.98% based on dividends of $1.12 (0.80 US$) and a stock price of $56.60. The current dividend yield is 7.5% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in CDN$.

The 10 year median Price/Sales (Revenue) Ratio is 5.34. The current P/S Ratio is 3.58 based on 2020 Revenue estimate of $1,243M, Revenue per Share of $11.49 and a stock price of $41.10. The current P/S Ratio is 33% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$. You will get a similar result in CDN$.

Results of stock price testing is that the stock price is probably reasonable. The historical median and 10 year median dividend yield tests show the stock price as relatively reasonable with the P/S Ratio testing show the stock price as relatively cheap. I know that the P/B Ratio and P/GP Ratio tests show that the stock price is relatively expensive and I see nothing wrong with these tests. For the P/CF Ratio test, I wonder about the very low CFPS estimates.

Is it a good company at a reasonable price? I think that this is a good company and has produced some good long term results. It would be a good stock to have when building a dividend portfolio. The stock price is probably reasonable. Although, I must admit the P/B Ratio is very high.

When I look at analysts’ recommendations, I find Strong Buy (3), Buy (2), Hold (5) and Underperform (1). The consensus would be a Buy. The 12 month stock price if $44.33 US$ or $62.13 CDN$. This implies a total return of 11.75% with 9.77% from capital gains and 1.98% from dividends in CDN$.

On Stock Chase there are no recent entries but most are complementary. Adam Othman on Motley Fool says this business is recession-resistant. A writer on Simply Wall Street says that this company’s higher than its industry’s P/E Ratio says that there is optimism towards this stock. A writer on Simply Wall Street says the dividend is well covered by earnings and cash flow. Maurice Goldstein on The Enterprise Leader says that some institutions have raised their stakes in this company.

British Columbia-based Ritchie Brothers operates the world's leading marketplace for heavy equipment. Started in 1958 as a live auctioneer of industrial equipment, it has greatly expanded its operations to include the sale of construction, agricultural, oilfield, and transportation equipment in a variety of venues. Its web site is here Ritchie Bros Auctioneers Inc.

The last stock I wrote about was about was Reitmans (Canada) Ltd (TSX-RET.A, OTC-RTMAF) ... learn more. The next stock I will write about will be IA Financial Corp (TSX-IAG, OTC-IDLLF) ... learn more on Friday, May 29, 2020 around 5 pm. Tomorrow on my other blog I will write about Top Canadian Stocks.... learn more on Thursday, May 28, 2020 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.

Reitmans (Canada) Ltd

Sound bite for Twitter and StockTwits is: Cheap Consumer Stock. Stock price is relatively cheap and it is cheap for a reason. You can see from the chart on total return that the current stock price is lower than it was some 32 years ago. See my spreadsheet on Reitmans (Canada) Ltd.

I own this stock of Reitmans (Canada) Ltd (TSX-RET.A, OTC-RTMAF). I bought this company in September 2013. It was in financial difficulties and so was quite cheap. I believed it would recover, but I am beginning to wonder now if it will recover. The owners are still trying.

When I was updating my spreadsheet, I noticed that they have suspended their dividends after paying them for over 30 years that I know of. This stock reached its height in 2007 at around 26.59, and had another high of 2010 of $18.89, but has gone down ever since. On the way to the first high it split 3 times. Also, Fairfax Financial Holdings Limited sold off their shares in August 2019.

They have suspended their dividends. From my records I know that they have paid dividends for the past 32 years. The dividend growth has varied. Their dividends were often flat and they had decreases in the past, but they consistently had paid dividends until now. Currently shareholders have only made any money on this stock because of dividends.

The Dividend Payout Ratios (DPR) no longer matter at this point as dividends are suspended. When they were paying dividends, they had good DPRs for EPS until 2011 but because of earnings losses this DPR has not been good since. However, they always had good cash flow to pay dividends. Even in 2019, their DPR for CFPS was good at 12% with 5 year coverage at 23%.

Debt Ratios are fine but have deteriorated recently. The Liquidity Ratio for 2019 is low at 1.34. This ratio was mostly much higher, but has varied and their 5 year median is 2.64. The Debt Ratio for 2019 is also lower than it has been at 1.53 and it has a 5 year median of 3.15. The Leverage and Debt/Equity Ratios are higher than they have been in the past with the 2019 ratios at 2.89 and 1.89 and 5 year medians at 1.41 and 0.41.

The Total Return per year is shown below for years of 5 to 32 to the end of 2019. 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.
2014	5	-5.59%	-26.02%	-31.53%	5.51%
2009	10	-14.52%	-16.75%	-23.43%	6.69%
2004	15	-2.06%	-6.22%	-15.42%	9.20%
1999	20	3.19%	12.51%	-3.88%	16.39%
1994	25	3.40%	11.17%	-2.04%	13.20%
1989	30	2.83%	8.60%	-1.83%	10.43%
1987	32	2.65%	7.79%	-1.82%	9.62%

The 5 year low, median, and high median Price/Earnings per Share Ratios are all negative. The corresponding 10 year ratios are 25.2, 32.03 and 20.94. The corresponding historical ratios are 10.16, 13.05, and 15.47. The current P/E Ratio is negative so I cannot do this test. There are no estimates available and the only EPS I can use is for the last 12 months, which is negative.

I get a Graham Price of $3.13 but it is just an estimate because of the lack of recent positive EPS recently. The 10 year low, median, and high median Price/Graham Price Ratios are 0.96, 1.14 and 1.48. The current P/GP Ratio is 0.03 based on a stock price of $0.08. 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 1.02. The current P/B Ratio is 0.02 based on a stock price of $0.08, Book Value of $194M and Book Value per Share of $3.97. The current ratio is 98% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median P/CF Ratio of 7.81. The current P/CF Ratio is 0.05 based on last 12 month CFPS of $1.58, Cash Flow of $77.2M, and a stock price of $0.08. The current ratio is 99% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I cannot do any dividend yield test because the dividends have been suspended.

The 10 year median Price/Sales (Revenue) Ratio is 0.39. The current P/S Ratio is 0.004 based on last 12 months revenue of $869M, Revenue per share of $17.79 and a stock price of $0.08. The current ratio is 99% below the 10 year ratio. This stock price testing suggests that the stock price is relatively cheap.

Results of stock price testing is that the stock price is relatively cheap. For the tests I can do, the stock price is coming up as relatively cheap.

Is it a good company at a reasonable price? This stock is relatively cheap. However, it is cheap for a reason. It is now under creditor protection. The company is hopeful that it can emerge from this process. It was having problems prior to the Covid 19, but the Covid 19 has might have finally killed the company.

When I look at analysts’ recommendations, I find one analyst that gives it a ranking of Hold on Wall Street Journal. This stock has few if any analysts following it as it is doing so badly.

The company announces its plan to get protection under the Companies' Creditors Arrangement Act and restructure in a Press Release. The company gets a court order under Companies' Creditors Arrangement Act in a Press Release. There are a couple of entries on Stock Chase. Nelson Smith on Motley Fool talks about this company entering bankruptcy protection and who might be next. A writer on Simply Wall Street points out that a company that is not earning profit and cannot grow their revenue should be avoided. The Canadian Press announced in the Toronto Star the sale of Reitman’s stock by Fairfax Financial. Benj Gallander of the Contra the Heard Investment Letter gives his thoughts on Reitmans on BNN Bloomberg.

Reitmans (Canada) Ltd is an apparel retailer based in Canada. Its main business is the sale of ladies' specialty apparel to consumers through its retail banners such as including Reitmans, which is a women's apparel specialty chain and fashion brand, Penningtons, RW & CO., which offers fashions for both men and women, Addition Elle, Thyme Maternity, which offers a complete line of nursing fashions and accessories and Hyba.. Its web site is here Reitmans (Canada) Ltd.

The last stock I wrote about was about was HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF) ... learn more. The next stock I will write about will be Ritchie Bros Auctioneers Inc (TSX-RBA, NYSE-RBA) ... learn more on Tuesday, May 27, 2020 around 5 pm. Tomorrow on my other blog I will write about Weekends .... learn more on Tuesday, May 26, 2020 around 5 pm.

Also, on my book blog I have put a review of the book Origins of a Journey by Daniel Grogan learn more...

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