Power Corp of Canada

Sound bite for Twitter and StockTwits is: Dividend Growth Financial. The stock price is probably still reasonable. The Dividend Payout Ratio are good. I think that the debt ratios are fine. This is an insurance company mostly and will do better when interest rates are more normal. See my spreadsheet on Power Corp of Canada.

I own this stock of Power Corp of Canada (TSX-POW, OTC-PWCDF). I started following this stock because it was on the Dividend Achievers, the Dividend Aristocrats lists and also on Mike Higgs’ list. I got shares in this company when Power Corp reorganized and gave out Power Corp Shares to replace Power Financial Shares.

When I was updating my spreadsheet, I noticed the big increase in outstanding shares. This has to do with the take over of Power Financial. I acquired my Power Corp shares because I had to hand in my Power Financial shares for Power Corp shares. The very low interest rates have been had on insurance companies. For this company, the dividend yield has risen, dividend growth is lower, and share price has been rather stagnated.

The dividend yields are moderate with dividend growth low. The current dividend yield is moderate (2% to 4%) at 4.88%. The 5 year median dividend yield is good (5% and 6% ranges) at 5.34%. The 10 year and historical median dividend yields are moderate at 4.38% and 2.35%.

The Dividend Payout Ratios (DPR) are good. The DPR for EPS for 2020 is 57% with 5 year coverage at 56%. The DPR for CFPS for 2020 is 11% with 5 year coverage at 9%. The DPR for Free Cash Flow for 2020 is 11% with 5 year coverage at 10%.

Debt Ratios are fine. Because this is a financial (insurance), I look at Long Term Debt/Covering Assets Ratio, which for 2020 is fin at 0.95. The Liquidity Ratio is not important, but for 2020 I calculate one at 2.61. The Debt Ratio is fine for a financial at 1.07.

The Total Return per year is shown below for years of 5 to 33 to the end of 2020. 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.
2015	5	5.83%	5.38%	0.20%	5.18%
2010	10	4.18%	5.20%	0.55%	4.65%
2005	15	6.82%	3.41%	-0.53%	3.94%
2000	20	9.44%	6.44%	2.31%	4.12%
1995	25	10.47%	12.89%	7.11%	5.78%
1990	30	10.63%	11.61%	6.85%	4.76%
1987	33	10.01%	10.84%	6.59%	4.25%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 9.67, 11.22 and 12.05. The corresponding 10 year ratios are 9.97, 11.15 and 12.35. The corresponding historical ratios are 10.70, 12.46 and 13.79. The current P/E Ratio is 15.29 based on a stock price of $36.69 and EPS estimate for 2021 of $2.40. The current ratio is above the 10 year median high ratio. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $33.81. The 10 year low, median, and high median Price/Graham Price Ratios are 0.69, 0.74 and 0.82. The current P/GP Ratio is 1.09 based on a stock price of $36.69. The current ratio is above the high median ratio. 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 1.07. The current P/B Ratio is 1.73 based on a current book value of $14,334M, Book Value per Share of $21.17 and a stock price of $36.69. The current ratio is 61% above the 10 year 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 2.46 based on Cash Flow per Share estimate for last 12 months of $14.91, Cash Flow of $10,101M and a stock price of $36.69. The current ratio is 61% 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 2.35%. The current dividend yield is 4.88% based on a stock price of $36.69 and dividends of $1.79. The current yield is 108% 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 4.58%. The current dividend yield is 4.88% based on a stock price of $36.69 and dividends of $1.79. The current yield is 6.5% above 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 0.32. The current P/S Ratio is 0.37 based on Revenue estimate for 2021 of $66,951M, Revenue per Share of $98.86 and a stock price of $36.69. The current ratio is 16% 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 reasonable. The dividend yield test show that the stock is reasonable to cheap. The P/S Ratio test says it is reasonable, but above the median. The rest of the test show the stock as expensive.

Is it a good company at a reasonable price? I own this company and intent to keep holding it. At the time I bought Power Financial, it was because the price was better than for Power Corp. The stock price is probably reasonable. The thing is that insurance companies have had a real rough time lately because of very low interest rates. They will do better when we get to more normal interest rates.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (2) and Hold (6). The consensus would be a Buy. The 12 month stock price consensus is $38.22. This implies a total return of 9.05%, with 4.17% from capital gains and 4.88% from dividends.

On Stock Chase the last 4 recommendations were 2 buys and 2 sells. Vishesh Raisinghani on Motley Fool thinks it is a good idea to buy this company because of their investment in Wealthsimple. The Executive Summary on Simply Wall Street gives this stock 4 stars out of 5 and list one risk. A writer on Simply Wall Street says there has been insider buying and this is a positive. Brandon Beavis on Brandon Beavis Investing talks about Power Corp starting at 10.33 in his video of How to Build A High-Yield Dividend Portfolio in Canada with 6 Dividend Stocks To Buy (2021).

Power Corporation is an international management and holding company that focuses on financial services in North America, Europe, and Asia. Its core holdings are leading insurance, retirement, wealth management and investment businesses, including a portfolio of alternative asset investment platforms. Its web site is here Power Corp of Canada.

The last stock I wrote about was about was McCoy Global Inc (TSX-MCB, OTC-MCCRF) ... learn more. The next stock I will write about will be Ag Growth International (TSX-AFN, OTC-AGGZF) ... learn more on Wednesday, May 12, 2021 around 5 pm. Tomorrow on my other blog I will write about Investing in Canada.... learn more on Tuesday, May 11, 2021 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.

McCoy Global Inc

Sound bite for Twitter and StockTwits is: Small Industrial Stock. Stock price is relatively cheap. It is a small cap serving the oil and gas industry and so is risky. It has good Debt Ratios. I am using my fooling around money to invest in this stock. See my spreadsheet on McCoy Global Inc.

I own this stock of McCoy Global Inc (TSX-MCB, OTC-MCCRF). I decided to try out McCoy. They had just restored their dividend. I want to use it as a fuller stock in my TFSA account. For me a fuller stock is one that uses up bits of extra money in an account. My TFSA account money is my fooling around money. I also do not have much invested in this company.

When I was updating my spreadsheet, I noticed last year my total return to date was a loss of 32.84% per year. At the end of April this year, my total return is lower with a loss of 17.94% per year. It is not surprise that the company has problems as it provides technologies for the oil and gas sector.

The dividends are none existent currently for this stock. They have not paid a dividend since 2016. Over the past 16 years, they have increased their dividends 6 times and decreased it 4 times. They also suspended the dividends in 2010, but that suspension just lasted a year. They have had an earnings loss in 5 of the last 6 years. They need to start having a profit in order to restart dividends.

Debt Ratios are all good. The Long Term Debt/Market Cap Ratio for 2021 is 0.46. The Long Term debt can be paid with cash flow in less one year. Both these ratios are good. The Liquidity Ratio for 2021 is 4.42. The Debt Ratio for 2021 is 3.07. The Leverage and Debt/Equity Ratios for 2021 are 1.48 and 0.48.

The Total Return per year is shown below for years of 5 to 23 to the end of 2020. 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.
2015	5	0.00%	-25.70%	-25.70%	0.00%
2010	10	0.00%	-14.88%	-18.47%	3.59%
2005	15	0.00%	-12.55%	-15.77%	3.22%
2000	20		-2.83%	-7.69%	4.86%
1997	23		-4.22%	-8.10%	3.88%

The 5 year low, median, and high median Price/Earnings per Share Ratios are negative and therefore unusable. The corresponding 10 year ratios are 2.08, 3.32 and 4.15. The corresponding historical ratios are 3.08, 8.27 and 10.19. The current ratio is 19.14 based on a stock price of $0.67 and EPS estimate for 2021 of $0.04. This stock price testing suggests that the stock price is relatively expensive. However, this is not a good test because of EPS losses, especially over the past 10 years.

I get a Graham Price of $1.00. The 10 year low, median, and high median Price/Graham Price Ratios are 0.54, 0.72 and 0.95. The current P/GP Ratio is 0.67 based on a stock price of $0.67. This ratio is between the low and median P/GP Ratios. 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 1.13. The current P/B Ratio is 0.52 based on a stock price of $0.67, Book Value of $35.5M, and a Book Value per Share of $1.28. The current ratio is 54% 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 4.25. The current P/CF Ratio is 1.51 based on Cash Flow of the past 12 months of $8.81, Cash Flow per Share of $0.32 and a stock price of $0.67. The current ratio is 64% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I cannot do any dividend yield testing as dividends have been suspended.

The 10 year median Price/Sales (Revenue) Ratio is 0.69. The current P/S Ratio is 0.50 based on Revenue estimate for 2021 of $37.1M, Revenue per Share of $1.33 and a stock price of $0.67. The current ratio is 31% 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 relatively cheap. I have some good tests that show that of P/S Ratio, P/B Ratio and P/CF Ratio. The P/GP Ratio tests show the stock price as reasonable and below the median.

Is it a good company at a reasonable price? First, I think that the stock price is relatively cheap. This is a small cap that services the Oil and Gas industry, so is very risky. I am using my fooling around money to invest in this stock, which I feel is appropriate.

When I look at analysts’ recommendations, I find only one recommendation and it is a Hold. The 12 month stock price consensus is $0.50. This implies a total loss of 25% and all a capital loss.

The company talks about their 2020 year end results on Cision. The executive summary on Simply Wall Street gives this stock 3 stars out of 5 and list one risk. A writer on Simply Wall Street looks at CEO compensation.

McCoy Global Inc is a provider of equipment and technologies used for making up threaded connections in the oil and gas industry. The company is engaged in the design, production, and distribution of capital equipment used in both off-shore and land drilling markets to handle makeup and measure tubular products, such as casing. Its web site is here McCoy Global Inc.

The last stock I wrote about was about was Thomson Reuters Corp (TSX-TRI, NYSE-TRI) ... learn more. The next stock I will write about will be Power Corp of Canada (TSX-POW, OTC-PWCDF) ... learn more on Monday, May 10, 2021 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.

Thomson Reuters Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. The stock price seems to be relatively expensive. Currently both the dividend yield and dividend growth is quite low. Debt Ratios are currently good, but the Liquidity Ratio has varied over time. See my spreadsheet on Thomson Reuters Corp.

I own this stock of Thomson Reuters Corp (TSX-TRI, NYSE-TRI). I bought this stock in 1985 so I have had it for a very long time, over 35 years. I bought stock to give portfolio some balance as I had too many financial stocks. Performance has always been mediocre.

When I was updating my spreadsheet, I noticed my return is not great, but it is acceptable. I have had this stock for some 35 years and my return is 8.68% per year with 6.02% from capital gains and 2.66% from dividends. People who bought this stock in the last 5 or 10 years have done much better. See chart below.

The dividend yields are low with dividend growth low. The current dividend yield is low (below 2%) at 1.67%. The 5, 10 and historical dividend yields are moderate (2% to 4% ranges) at 2.88%, 3.36% and 2.88%. The dividend growth is low (below 8% per year). The dividend growth over the past 5 years is 2.55% per year. The last dividends increase for 2021 was better at 6.6%. Dividends are paid in US$, so for Canadians, they will fluctuate with the currency exchange.

The Dividend Payout Ratios (DPR) are fine. The DPR for EPS for 2020 is 68% with 5 year coverage at 41%. The DPR for CFPS for 2020 is 46% with 5 year coverage at 40%. The DPR for Free Cash Flow for 2020 is 59% with 5 year coverage at 65%.

Debt Ratios are good. The long Term Debt/Market Cap Ratio for 2020 is good and low at 0.09. The Liquidity Ratio for 2020 is good at 1.50. The Liquidity Ratio has varied a lot over the years. The Debt Ratio for 2020 is very good at 2.26. The Leverage and Debt/Equity Ratios for 2020 are good at 1.79 and 0.79.

The Total Return per year is shown below for years of 5 to 35 to the end of 2020 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.
2015	5	2.34%	17.45%	14.75%	2.70%
2010	10	5.19%	13.58%	10.84%	2.74%
2005	15	4.89%	8.95%	6.66%	2.29%
2000	20	3.27%	5.18%	3.34%	1.83%
1995	25	4.09%	10.20%	7.05%	3.16%
1990	30	4.53%	9.09%	6.23%	2.85%
1985	35	5.60%	8.51%	5.86%	2.65%

The Total Return per year is shown below for years of 5 to 30 to the end of 2020 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.
2015	5	2.55%	19.42%	16.61%	2.81%
2010	10	2.74%	10.72%	8.10%	2.61%
2005	15	4.46%	9.55%	5.99%	3.56%
2000	20	4.07%	6.88%	4.25%	2.63%
1995	25	4.44%	11.20%	7.34%	3.85%
1990	30	4.20%	9.08%	5.89%	3.19%
1985	35	5.88%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 15.64, 19.68 and 23.72. The corresponding 10 year ratios are 14.63, 17.61 and 20.59. The corresponding historical ratios are 18.13, 19.66 and 23.96. The current P/E Ratio is 72.22 based on a stock price of $118.80 and EPS estimate for 2021 of $1.65 ($1.34 US$). This P/E Ratio is above the 10 year high median ratio. This stock price testing suggests that the stock price is relatively expensive. Problem is that analysts think that the EPS will drop more than 40% in 2021. This testing is in CDN$.

If you look at future EPS estimates, for 2022 the P/E Ratio is 48.63 based on EPS estimate of 2.44 (1.99 US$) and for 2023 the P/E Ratio is 33.03 based on EPS estimate of 3.60 ($2.93 US$). These are based on a stock price of $118.80. These P/E Ratios are also above the high median 10 year ratios. This testing is in CDN$.

I get a Graham Price of $30.61. The 10 year low, median, and high median Price/Graham Price Ratios are 1.26, 1.52 and 1.69. The current P/GP Ratio is 3.88 based on a stock price of $118.80. The current ratio is higher than the 10 year high median ratio. This stock price testing suggests that the stock price is relatively expensive. Problem is that analysts think that the EPS will drop more than 40% in 2021 and EPS is part of the Graham Price calculation. This testing is in CDN$.

I get a 10 year median Price/Book Value per Share Ratio of 2.37. The current P/B Ratio is 4.87 based on a stock price of $96.70, Book Value of $9,870M and Book Value per Share of $19.85. The current ratio is 105% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. You will get a similar result in CDN$. The main problem is lack of growth in Book Value.

I get a 10 year median Price/Cash Flow per Share Ratio of 11.74. The current P/CF Ratio is 29.39 based on Cash Flow per Share estimate for 2021 of $3.29, Cash Flow of $1,636M, and a stock price of $96.70. The current ratio is 150% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. You will get a similar result in CDN$. A problem is the lack of growth in Cash Flow.

I get an historical median dividend yield of 3.05%. The current dividend yield is 1.68% based on dividends of $1.62 and a stock price of $96.70. The current dividend yield is 45% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. You will get a similar result in CDN$.

I get a 10 year median dividend yield of 3.37%. The current dividend yield is 1.68% based on dividends of $1.62 and a stock price of $96.70. The current dividend yield is 50% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. You will get a similar result in CDN$.

The 10 year median Price/Sales (Revenue) Ratio is 2.56. The current P/S Ratio is 7.75 based on a stock price of $96.70, Revenue estimate for 2021 of $6,199M and Revenue per Share of $12.47. The current ratio is 203% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. You will get a similar result in CDN$.

Even if I move forward into the future with Revenue estimate for 2022 of $7,948M and for 2023 of $8,343M, the P/S Ratio are still high at 7.43 and 7.08. These ratios are using the stock price of $$96.70. This stock price testing still suggests that the stock price is relatively expensive. 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 relatively expensive. All the testing I have done is saying the same thing. Even looking at analysts estimates for 2022 and 2023, the stock price is still showing a relatively expensive.

Is it a good company at a reasonable price? I own this stock and I have made a reasonable return over the years. I still like the company and will continue to hold my shares. However, at the present time, the stock price seems to be on the expensive side.

When I look at analysts’ recommendations, I find Strong Buy (3), Buy (5), Hold (7), Underperform (1) and Sell (1). The consensus would be a Buy, but the recommendations seem to be all over the place. The 12 month stock price is $123.38 ($100.43 US$). This implies a total return of 5.46% with 3.78% from capital gains and 1.67% from dividends.

The last few analysts’ recommendations on Stock Chase are Buy and Top Pick. Ambrose O'Callaghan on Motley Fool thought this stock was cheap in January 2021. The Executive Summary on Simply Wall Street gives this stock 3 stars out of 5 and lists 3 risks. A writer on Simply Wall Street says this stock has an intrinsic value of $104.85 CDN$. A writer on Simply Wall Street gives a review of this stock as a dividend stock. They are wrong about a dividend cut. It might seem that way to Canadian Investors, but the dividends were not cut, it was just dividends are paid in US$ and they will fluctuate in CDN$. Jing Pan on Income Investors gives a review of this stock as a dividend growth stock.

Thomson Corporation is a leading provider of value-added information and technology to users in the fields of law, tax, accounting, financial services, higher education, reference information, corporate training and assessment, scientific research, and healthcare. Its web site is here Thomson Reuters Corp.

The last stock I wrote about was about was WSP Global Inc (TSX-WSP, OTC-WSPOF) ... learn more. The next stock I will write about will be McCoy Global Inc (TSX-MCB, OTC-MCCRF) ... learn more on Friday, May 07, 2021 around 5 pm. Something to Buy May 2021.... learn more on Thursday, May 06, 2021 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.

WSP Global Inc

Sound bite for Twitter and StockTwits is: Dividend Paying Industrial. The stock price would seem to be on the expensive side at the moment. See my spreadsheet on WSP Global Inc.

I own this stock of WSP Global Inc (TSX-WSP, OTC-WSPOF). This company used to be called Genivar. Genivar was in an article I read so I investigated it and decided to buy.

When I was updating my spreadsheet, I noticed that this company used to be an income trust. Because income trust can pay higher dividends, a lot cut their dividends when they because corporations. This company handled it differently. They have left the dividend flat. The Dividend Yield has been coming down over the years. It used to be in the 5% to 7% ranges, but currently it is 1.18%. They have yet to say when they might again rise the dividends.

The dividend yields are low with dividend growth non-existent. Dividend yields are low (below 2%) at 1.18%. The 5, 10 and historical dividend yields are moderate (2% to 4% ranges) at 2.26%, 3.66% and 4.47%. As mentioned above, they have not raised the dividend since 2008 when they had to become a corporation. The company says that the dividend is currently expected to remain at this level subject to the Board’s ongoing assessment.

The Dividend Payout Ratios (DPR) are improving. The DPR for EPS for 2020 is 60% with 5 year coverage at 64%. The DPR for CFPS is 19% with 5 year coverage at 24%. The DPR for Free Cash Flow is 8.6% with 5 year coverage of 14%.

Debt Ratios are mostly good. The Long Term Debt/Market Cap Ratio for 2020 is 0.02 and is very low and very good. The Liquidity Ratio for 2020 is 1.04. If you add in cash flow after dividends, it is still a bit low at 1.35. The Debt Ratio at 1.86 is good. The Leverage and Debt/Equity Ratios are fine at 2.17 and 1.17.

The Total Return per year is shown below for years of 5 to 15 to the end of 2020. 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.
2015	5	0.00%	25.63%	23.19%	2.88%
2010	10	0.00%	17.82%	14.76%	2.15%
2005	15	7.91%	23.66%	18.06%	2.53%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 20.97, 27.12 and 31.62. The corresponding 10 year ratios are 19.52, 23.12 and 26.73. The corresponding historical ratios are 15.95, 19.95 and 23.95. The current P/E Ratio is 31.95 based on a stock price of $127.15 and EPS estimate for 2021 of $3.98. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $56.73. The 10 year low, median, and high median Price/Graham Price Ratios are 1.10, 1.30 and 1.50. The current P/GP Ratio is 2.24 based on a stock price of $127.15. The current ratio is above the high median ratio of 1.50. 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 1.64. The current P/B Ratio is 3.54 based on a stock price of $127.15, Book Value of $4,080M, and Book Value per Share of $35.93. The current ratio is 116% 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 11.79. The current P/CF Ratio is 21.05 based on Cash Flow per Share estimate for 2021 of $6.04, Cash Flow of $686M, and a stock price of $127.15. The current ratio is 79% 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 4.47%. The current dividend yield is 1.18% based on dividends of $1.50 and a stock price of $127.15. The current yield is 74% below the historical dividend yield. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year dividend yield of 3.66%. The current dividend yield is 1.18% based on dividends of $1.50 and a stock price of $127.15. The current yield is 68% 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 1.14. The current P/S Ratio is 1.85 based on a stock price of $127.15, Revenue estimate for 2021 of $7,813M and Revenue per Share of $68.82. The current ratio is 62% 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. First, we should exclude the dividend tests because this company was an income trust that converted to a corporation. Income trusts could pay out higher dividends. The dividends have been flat since 2009. However, all the tests come back with a stock price that is expensive, including a favourite of mine of the P/S Ratio test.

Is it a good company at a reasonable price? First, I own this company and I do like it and will continue to hold it. I would feel more comfortable with it, if it would rise their dividends. However, the current pandemic rises uncertainty and it may be better to wait before they do any increases. Analysts do not see any dividend increase happening in the near term. The company is doing well. However, it would appear that the stock price is high so now may not be a good time to buy.

When I look at analysts’ recommendations, I find Strong Buy (4), Buy (6) and Hold (3). The consensus would be a Buy. The 12 month stock price consensus is $134.92. This implies a total return of 7.29% with 6.11% from capital gains and 1.18% from dividends.

Analysts like this stock on Stock Chase. Vineet Kulkarni on Motley Fool says this stock is a safe bet. Executive Summary on Simply Wall Street gives it 4 stars out of 5 and 1 risk. A writers on Simply Wall Street says the fair value of the stock is $106.74 CDN$, so the stock is currently a bit overvalued.

WSP Global Inc provides engineering and design services to clients in the Transportation & Infrastructure, Property and Buildings, Environment, Power and Energy, Resources, and Industry sectors. It also offers strategic advisory services. The firm operates through four reportable segments namely, Canada, Americas ( US and Latin America), EMEIA (Europe, Middle East, India and Africa), and APAC (Asia Pacific, comprising Australia, New Zealand and Asia). Its web site is here WSP Global Inc.

The last stock I wrote about was about was Fortis Inc (TSX-FTS, OTC-FRTSF) ... learn more. The next stock I will write about will be Thomson Reuters Corp (TSX-TRI, NYSE-TRI) ... learn more on Wednesday, May 5, 2021 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks May 2021.... learn more on Tuesday, May 05, 2021 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.

Fortis Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Utility. The stock price is probably still reasonable. They do have a lot of debt. Dividend Payout Ratios are mostly fine. It is one of my big stock holdings and I have done well with it for a long time. See my spreadsheet on Fortis Inc.

I own this stock of Fortis Inc (TSX-FTS, OTC-FRTSF). I bought this stock as Newfoundland Light and Power Co. Ltd. Class A shares in 1987. I bought more in 1995 and 1998. In 2005 I sold some Fortis from my RRSP account as I needed to get $20,000 in this account and I was concerned about the debt liquidity of this stock. However, this stock continues to be one of my big stock holdings.

When I was updating my spreadsheet, I noticed I have had this stock since 1987 (almost 34 years), although I did buy more in later years. I have made a total return of 12.78% per year with 7.76% from capital gains. This is great for a long term return. On my original investment in 1987, I have a dividend yield of 43%. This is the value of buying a good dividend stock and keeping it.

The dividend yields are moderate with dividend growth low. The current dividend yield is moderate (2% to 4% ranges) at 3.65%. The 5, 10 and historical dividend yields are also moderate at 3.34%, 3.34% and 3.84%. The dividend increases are low (under 8% per year). The dividend increases for the past 5 years is 6.8% per year. The last dividend increase was in 2020 and it was for 5.8%. There is a trade off between dividend yield and growth and I believe in having stocks with different yield/growth characteristics. They have raised their dividends 39 times in the last 39 years.

The Dividend Payout Ratios (DPR) are fine. The DPR for EPS for 2020 is 75% with 5 year coverage at 71%. The DPR for CFPS is 29% with 5 year coverage at 28%. I cannot calculate the DPR for Free Cash Flow as FCF has been negative over the past 10 years.

Debt Ratios are fine, but I wish they were better. The Long Term Debt/Market Cap Ratio is high, but still under 1.00 at 0.95 and moving to a current 0.89. The Liquidity Ratio is 0.63 and if you add in Cash Flow after dividends it is 1.06 and still low. The Debt ratio is 1.58. The Leverage and Debt/Equity Ratios are fine at 2.74 and 1.74. Utility companies tend to carry a lot of debt.

The Total Return per year is shown below for years of 5 to 39 to the end of 2020. 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.
2015	5	6.79%	10.84%	6.81%	4.04%
2010	10	5.63%	7.90%	4.35%	3.56%
2005	15	8.27%	8.81%	5.21%	3.60%
2000	20	7.45%	14.11%	9.17%	4.94%
1995	25	6.28%	13.35%	8.47%	4.89%
1990	30	5.78%	12.78%	7.84%	4.94%
1985	35	5.85%	12.37%	7.35%	5.02%
1981	39	6.21%	13.43%	7.65%	5.78%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 17.65, 19.36 and 21.03. The corresponding 10 year ratios are 17.43, 19.04 and 20.59. The corresponding historical ratios are 12.48, 14.05 and 15.50. The current P/E Ratio is 19.92 based on a stock price of $55.37 and EPS estimate for 2021 of $2.78. The current ratio is between the low and median 10 year ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $47.36. The 10 year low, median, and high median Price/Graham Price Ratios are 1.00, 1.00 and 1.20. The current P/GP Ratio is 1.17 based on a stock price of $55.37. The current ratio is between the median and high median 10 year ratios. 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 1.41. The current P/B Ratio is 1.54 based on a stock price of $55.37, Book Value of $16,738M, and Book Value per Share of $35.86. The current ratio is 9% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a 10 year median Price/Cash Flow per Share Ratio of 7.41. The current P/CF Ratio is 8.34 based on a stock price of $55.37, Cash Flow per Share estimate for 2021 of $6.64 and Cash Flow of $3,100M. The current ratio is 12.6% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get an historical median dividend yield of 3.84%. The current dividend yield is 3.65% based on dividends of $2.02 and a stock price of $55.37. The current dividend yield is 5% below the historical dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a 10 year median dividend yield of 3.34%. The current dividend yield is 3.65% based on dividends of $2.02 and a stock price of $55.37. The current dividend yield is 9% above the 10 year median 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 2.01. The current P/S Ratio is 2.76 based on a stock price of $55.37, Revenue estimate for 2021 of $9,353M, and Revenue per Share of $19.49. The current ratio is 37.6% 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 still reasonable. I do like the dividend yield tests and both come out with a reasonable result. However, it would be nice if it were confirmed by the P/S Ratio test. The problem is that this company has been issuing lots of shares lately and outstanding shares are up 10.35% per year over the past 10 years. Revenue has been going up, but not Revenue per Share. All the other tests are showing the stock price as reasonable and above or below the median.

Is it a good company at a reasonable price? The stock price could still be reasonable. This is a utility stock and I am pleased with my results. However, it does have a lot of debt and is diluting the shares. I note that Money Sense has been giving this stock a C rating for the last two years. Before that it has a B rating.

When I look at analysts’ recommendations, I find Strong Buy (6), Buy (3) and Hold (8). The consensus would be a Buy. The 12 month stock price consensus is $58.56. This implies a total return of 9.41% with 5.76% from capital gains and 3.65% from dividends.

This stock has been the top pick of the last 3 analysts to comment on Stock Chase. Stock Chase gives this stock 5 starts out of 5. Sneha Nahata on Motley Fool lists this stock as one of four Canadian utility stocks that consistently raised their dividends. The executive summary on Simply Wall Street lists one risk and gives this stock 3 stars out of 5. A writer at Simply Wall Street says this stock has a fair market value of $52.57. Chris MacDonald on Baystreet, Canada says this is a stock every income-oriented investor ought to consider.

Fortis owns and operates utility transmission and distribution assets in Canada and the United States, serving more than 2.5 million electricity and gas customers. The company has smaller stakes in electricity generation and several Caribbean utilities. Its web site is here Fortis Inc.

The last stock I wrote about was about was SNC-Lavalin Group Inc (TSX-SNC, OTC-SNCAF) ... learn more. The next stock I will write about will be WSP Global Inc (TSX-WSP, OTC-WSPOF) ... learn more on Monday, May 3, 2021 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.

SNC-Lavalin Group Inc

Sound bite for Twitter and StockTwits is: Dividend Paying Industrial. The stock price is reasonable to cheap. They might in the future become a dividend growth company, but they have their difficulties and this stock is currently risky. They need to improve some Debt Ratios. See my spreadsheet on SNC-Lavalin Group Inc.

I do not own this stock of SNC-Lavalin Group Inc (TSX-SNC, OTC-SNCAF). This stock was one from Mike Higgs' list of dividend growth stocks. I liked the idea of low dividends and high dividend increases. When you are building up a portfolio, low dividends are good for tax reasons. High dividend increases are attractive for the future.

When I was updating my spreadsheet, I noticed that I sold this stock in 2019 because I lost hope of it recovering. However, I sold at a relatively low. If I still had this stock, the stock would be worth 44% more than what I sold it at. You can just never tell what will happened. They have done a lot of dividend cutting since I sold.

The dividend yields are low with lots of recent dividend cuts. The current dividend yield is low (below 2%) at 0.29%. The 5 year dividend yield is just into the moderate range (2% to 4%). The 10 and historical dividend yields are low at 1.98% and 1.48%. Dividends were cut over 93% in 2019.

The Dividend Payout Ratios (DPR) need to improve and it looks like they will. I cannot calculate the DPR for EPS for either 2020 or 5 year coverage because of EPS losses. Analysts expect the DPR for EPS to be 4.5% in 2021. I cannot calculate the DPR for CFPS for 2020 because of negative cash flows. The 5 year coverage is 55%. Analysts expect the DPR for CFPS to be 3.8% in 2021 with a 5 year coverage of 34%. The DPR for Free Cash flow for 2020 is 31%. I cannot calculated the 5 year coverage due to negative FCFs.

Debt Ratios need improving. The Long Term Debt/Market Cap Ratio for 2020 is fine at 0.46. The Liquidity Ratio is very low. For 2020 it is 0.95. If you added in cash flow after dividends and add back in the current portion of the long term debt it rises to 1.02. You need a margin of safety and that is usually with a ratio of 1.50 or above. The Debt Ratio is also low at 1.33. Here you also want a ratio of 1.50 or above. The Leverage and Debt/Equity Ratios are too high at 4.03 and 3.03. Generally, you like to see these under 3.00 and 2.00 respectively.

The Total Return per year is shown below for years of 5 to 32 to the end of 2020. 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.
2015	5	-39.66%	-9.88%	-11.98%	2.10%
2010	10	-19.27%	-7.53%	-9.62%	2.10%
2005	15	-6.80%	1.92%	-1.04%	2.96%
2000	20	-0.20%	13.05%	8.01%	5.04%
1995	25	2.18%	12.65%	8.33%	4.33%
1990	30	2.53%	13.43%	9.32%	4.11%
1988	32	5.25%	19.29%	12.96%	6.33%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 8.29, 17.11, and 25.16. The corresponding 10 year ratios are 14.88, 18.80 and 25.05. The corresponding historical ratios are 13.69, 17.73 and 22.88. The current P/E Ratio of 15.32 based on a stock price of $27.43 and EPS estimate for 2021 of $1.79. The current ratio is between the low and median 10 year ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $24.27. The 10 year low, median, and high median Price/Graham Price Ratios are 1.24, 1.46 and 1.73. The current P/GP Ratio is 1.13 based on a stock price of $27.43. The current ratio is below the low P/GP 10 year ratios. 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 2.06. The current P/B Ratio is 1.88 based on a stock price of $27.43 and Book Value of $2,567M and a Book Value per Share of $14.62. The current ratio is 9% 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 17.01. The current P/CF Ratio is 13.06 based on CFPS estimate for 2021 of $2.10, Cash Flow of $368.67M and a stock price of $27.43. The current P/CF Ratio is 23% 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 1.48%. The current dividend yield is 0.29% based on dividends of $0.08 and a stock price of $27.43. The current yield is 80% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive. However, dividends have been cut by over 90% in the last two years.

I get a 10 year median dividend yield of 1.98%. The current dividend yield is 0.29% based on dividends of $0.08 and a stock price of $27.43. The current yield is 85% below the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively expensive. However, dividends have been cut by over 90% in the last two years.

The 10 year median Price/Sales (Revenue) Ratio is 0.86. The current P/S Ratio is 0.66 based on a stock price of $27.43, Revenue estimate for 2021 of $7,304M and Revenue per Share of $41.61. The current ratio is 23% 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 reasonable to cheap. You cannot use the dividend yield tests because the dividends have been reduced some 93%. The P/S Ratio test says that the stock is cheap, other tests show the same thing or that the stock price is reasonable and below the median.

Is it a good company at a reasonable price? The stock price is probably reasonable to cheap. It could be a turn around situation, but such situations are always risky. Some analysts feel that it is worth the risks. However, I am not anxious to own this at the present time.

When I look at analysts’ recommendations, I find Strong Buy (5), Buy (6) and Hold (3). The consensus would be a Buy. The 12 month stock price consensus is $33.96. This implies a total return of 24.10%, with 23.81% from capital gains and 0.29% from dividends based on a stock price of $27.43.

Analysts do not think this is the time to buy SNC on Stock Chase . One analyst says he likes WSP better. Nikhil Kumar on Motley Fool says that the company delivers quality projects on budget and on time and this should benefit long term shareholders. The Executive Summary on Simply Wall Street lists one risk gives it two stars out of 5. A writer on Simply Wall Street talks about the company having debt, but no earnings.

Based in Montreal, SNC-Lavalin is a fully integrated professional services and project management firm that offers a wide range of services, including financing, consulting, engineering and construction, procurement, and operations and maintenance. Its web site is here SNC-Lavalin Group Inc.

The last stock I wrote about was about was Barclays PLC ADR (LSE-BARC, NYSE-BCS) ... learn more. The next stock I will write about will be Fortis Inc (TSX-FTS, OTC-FRTSF) ... learn more on Friday, April 30, 2021 around 5 pm. Tomorrow on my other blog I will write about Best Stocks for 2021 by Hardbacon .... learn more on Thursday, April 29, 2021 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.

Barclays PLC ADR

Sound bite for Twitter and StockTwits is: Dividend Paying Bank. It will probably a dividend growth bank in the future, it is just hard to see when. The stock price seems reasonable, if a but on the high side. See my spreadsheet on Barclays PLC ADR.

I do not own this stock of Barclays PLC ADR (LSE-BARC, NYSE-BCS). I bought this stock when Barrett took over in 2000. Barrett used to run Bank of Montreal in Canada. At that time, it was a good dividend paying stock and I thought it would give me some geographical diversifications.

When I was updating my spreadsheet, I noticed if I have kept my shares, I would have currently done slightly better than how I did. I bought shares in 2000 and sold them in 2017. I had a total return of 1.25% per year with a capital loss of 4.92% per year. If I had kept the shares, I would have had a loss of 3.89% per year to date. At this point it would seem I did the right thing to sell in 2017.

The dividend yields are currently low with dividend growth varying a lot. The current dividend yield is low (below 2%) at just 0.53%. The 5, 10 and historical dividend yields are moderate (2% to 4% ranges) at 2.46%, 2.47% and 3.25%. Of 27 years of data I have, dividends were increased 20 times and decreased 4 times (and were flat the other years). The dividends were suspended for the year of 2020. They have been restarted in 2021.

The Dividend Payout Ratios (DPR) are fine. Since no dividends were paid in 2020 there is no DPR for EPS for 2020. However, the 5 year coverage is at 59%. The 5 year coverage for DPR for CFPS in 2020 is 3.6%. For DPR for 2020 for Free Cash Flow, Barclays posts the dividend granted in one year, but paid in the next. So, the DPR for FCF for 2020 is 10% with 5 year coverage at 18%.

Debt Ratios are fine. Because this is a bank, I am looking at a Long Term Debt/Covering Assets Ratio. The ratio for 2020 is good at 0.76. Because it is a bank, Liquidity Ratio is not important and I did not calculate one. The Debt Ratio is 1.05 and this is fine for a bank.

The Total Return per year is shown below for years of 5 to 27 to the end of 2020 in UK Pounds. 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.
2015	5	0.00%	-5.85%	-7.85%	2.00%
2010	10	0.00%	-3.17%	-5.62%	2.45%
2005	15	0.00%	-6.44%	-9.08%	2.65%
2000	20	0.00%	-2.11%	-6.15%	4.04%
1995	25	0.00%	7.97%	-0.60%	8.58%
1993	27	0.00%	8.58%	-0.01%	8.58%

The Total Return per year is shown below for years of 5 to 27 to the end of 2020 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.
2015	5	0.00%	-7.40%	-9.22%	1.82%
2010	10	0.00%	-4.61%	-7.01%	2.40%
2005	15	0.00%	-7.84%	-10.48%	2.65%
2000	20	0.00%	-2.24%	-6.73%	4.49%
1995	25	0.00%	7.57%	-1.38%	8.95%
1993	27	0.00%	9.27%	-0.32%	9.59%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 8.88, 14.48 and 20.78. The corresponding 10 year ratios are 6.95, 10.68 and 14.06. The corresponding historical ratios are 8.38, 10.51 and 13.00. The current P/E Ratio is 11.17 based on a stock price of $10.50 and EPS estimate for 2021 of $0.94. The current ratio is between the median and high median 10 year ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in US$. In UK Pounds the results suggest that the stock price is reasonable and below the median. Problem is years of EPS losses.

I get a Graham Price of $19.18 US$. The 10 year low, median, and high median Price/Graham Price Ratios are 0.53, 0.72 and 0.85. The current P/GP Ratios is 0.55 based on a stock price of $10.50. The current ratio is between the low median and median ratios of 0.53 and 0.72. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in US$. You get a similar result in UK Pounds.

I get a 10 year median Price/Book Value per Share Ratio of 0.59. The current P/B Ratio is 61 based on a stock price of $10.50, Book Value of $74,659M, Book Value per Share of $17.18. The current ratio is 4.3% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in US$. You get a similar result in UK Pounds.

I get a 10 year median Price/Cash Flow per Share Ratio of 0.47. The current P/CF Ratio is 0.57 based on a stock price of $10.50, Cash Flow per Share for last 12 months of $18.31 and Cash Flow of $79,466M. The current ratio is 23% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. In UK Pounds the results suggest that the stock price is reasonable but above the median. This is using CFPS of last 12 months as no estimates are given.

I get an historical median dividend yield of 2.84%. The current dividend yield is 0.53% based on dividends of $0.06. The current dividend is 84% below the historical dividend yield. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. In UK Pounds you get a similar result. Problem here is dividend cuts.

I get a 10 year median dividend yield of 2.40%. The current dividend yield is 0.53% based on dividends of $0.06. The current dividend is 78% below the 10 year dividend yield. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. In UK Pounds you get a similar result. Problem here is dividend cuts.

The 10 year median Price/Sales (Revenue) Ratio is 1.50. The current P/S Ratio is 1.58 based on Revenue estimate of $28,760M, Revenue per Share of $6.68 and a stock price of $10.50. The current ratio is 5.5% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in US$. You get a similar result in UK Pounds.

Results of stock price testing is that the stock price is probably reasonable, if a bit high. This is showing up in the P/S Ratio test. There are problems in the tests due to declining dividends and EPS losses. Even though the stock price is lower than it has been for quite a few years, there is little to point to a current cheap price.

Is it a good company at a reasonable price? The price might be reasonable if a bit high considering the risk of investing. This bank seems to be the best UK bank. However, long term shareholders have mostly lost big on this bank. I would not be interested at this point in having shares in this bank.

When I look at analysts’ recommendations, I find Strong Buy (11), Buy (5) and Hold (7). The consensus would be a Buy. The 12 month stock price consensus is $11.27 (203.96 GBX). This implies a total return of $7.90% with 7.37% from capital gains and 0.53% from dividends.

The most recent analyst says on Stock Chase that Barclay’s is a weak buy. Manika Premsingh on Motley Fool, UK says this bank has recovered better than other UK banks. She thinks the stock price is being held back by the low dividend yield. The executive summary on Simply Wall Street, UK gives this stock 4 stars out of 5 and only one risk. A writer on Simply Wall Street says there is insider selling. Lucy White of the Daily Mail has an article in the This is Money Co, UK.

Barclays PLC operates in commercial and investment banking, insurance, financial and other related services. Barclay’s subsidiary, Barclays Bank PLC maintains 2500 branches in the United Kingdom and 1000 branches in over 75 other countries. Its web site is here Barclays PLC ADR.

The last stock I wrote about was about was Canadian Natural Resources (TSX-CNQ, NYSE-CNQ) ... learn more. The next stock I will write about will be SNC-Lavalin Group Inc (TSX-SNC, OTC-SNCAF) ... learn more on Wednesday, April 28, 2021 around 5 pm. Tomorrow on my other blog I will write about Money Sense Roundup.... learn more on Tuesday, April 27, 2021 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.

Canadian Natural Resources

Sound bite for Twitter and StockTwits is: Dividend Growth Resource. The stock price is probably cheap. DPR for EPS is high, but is expected to improve. Since this is a resource stock, it is risky and not for everyone. See my spreadsheet on Canadian Natural Resources.

I own this stock of Canadian Natural Resources (TSX-CNQ, NYSE-CNQ). I first bought CNQ in September 2012 because the dividend yield was relatively high. The 5 and 10 year median dividend yields were 0.73% and 0.75%. The current one was at 1.31% and I got it with a yield of 1.32%. In April 2013 I bought more shares of this stock because the yield is now at 1.54%. I bought another 100 shares in 2020 because the yield was 11.63%.

When I was updating my spreadsheet, I noticed that I am doing much better than last year on total return. Last year at this time my investment had a negative return. This year my total return is 8.59% per year with 5.61% from capital gains and 2.98% from dividends. There was an earnings loss because of lower Revenue.

The dividend yields are currently moderate with dividend growth moderate. I have 19 years of data on this company and during that time they have not decreased dividends in any year. The current dividend is moderate (2% to 4% range) with a current dividend yield of 4.95%. The 5 and 10 median dividend yields are also moderate at 3.38% and 2.66%. The historical median dividend yield is low (below 2%) at 1.00%. Before 2011, the dividend yield was often low at below 1%.

The dividend increases for the last 5 years is moderate (8% to 14% ranges) at 12.5%. The last dividend increase was in 2021 and it was for 10.6%. In prior periods the dividend growth was good (15% and over). The dividend was increased in 2021 and this points to the fact that management thinks times will get better.

The Dividend Payout Ratios (DPR) need improving and analyst think this will happen. The DPR for EPS in 2020 cannot be calculated because of the earnings loss. Analysts expect the DPR to EPS to improve over the next few years. The DPR for EPS for 5 year coverage is 80%. The DPR for CFPS for 2020 is 38% with 5 year coverage at 21%. The DPR for Free Cash Flow for 2020 is 91% with 5 year coverage at 48%.

Debt Ratios are fine. The Long Term Debt/Market Cap for 2020 is 0.56 and improving currently to 0.45. The Liquidity Ratio for 2020 is 0.86. Adding in cash flow after dividends it is 1.40. The Debt Ratio is 1.75. The Leverage and Debt/Equity Ratios 2.32 and 1.32 respectively.

The Total Return per year is shown below for years of 5 to 30 to the end of 2020. 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.
2015	5	12.52%	4.45%	0.24%	4.21%
2010	10	19.51%	-1.09%	-3.65%	2.56%
2005	15	19.56%	2.51%	0.33%	2.18%
2000	20	21.62%	12.14%	9.28%	2.87%
1995	25		12.94%	10.54%	2.41%
1990	30		21.16%	17.88%	3.28%

Another way to look at this stock is to use past data, and look at dividend yield on original investments after 5 to 25 years. I am also looking at how much of the stock cost is covered by dividends after 5 to 20 years. In the chart below I show the numbers for this stock. For example, if you bought this stock 10 years ago at the median price, you would have a current yield on your original investment of 4.67% and 27.94% of your original cost would have now been paid by dividends.

Years	Yield	Cost Cov
5	5.34%	21.48%
10	4.67%	27.94%
15	6.16%	40.82%
20	33.27%	229.31%
25	50.06%	346.14%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 6.63, 7.96 and 9.29. The corresponding 10 year ratios are 10.47, 13.43 and 15.51. The corresponding historical ratios are 10.88, 15.34 and 17.28. The current P/E Ratio is 12.10 based on a stock price of $37.98 and EPS estimate for 2021 of $3.14. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $43.96. The 10 year low, median, and high median Price/Graham Price Ratios are 0.80, 1.02 and 1.30. The current P/GP Ratio is 86 based on a stock price of $37.98. This ratio is between the 10 year low median and median ratios. 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 1.47. The current P/B Ratio is 1.39 based on Book Value of $32,380M, Book Value per Share of $27.35, and a stock price of $37.98. The current ratio is 5.6% 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 6.20. The current ratio is 4.01 based on Cash Flow per Share estimate of $9.47, Cash Flow of $11,200M and a stock price of $37.98. The current ratio is 35% 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 1.00%. The current dividend yield is 4.95% based on dividends of $1.88 and a stock price of $37.98. The current yield is 395% 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 1.00%. The current dividend yield is 2.66% based on dividends of $1.88 and a stock price of $37.98. The current yield is 86% 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 2.19. The current P/S Ratio is 1.73 based on a stock price of $37.98, Revenue estimate for 2021 of 23,862M, and Revenue per Share of $21.97. The current P/S Ratio is 21% 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. Both dividend yield tests point to this as does the P/S Ratio test. Some of tests mostly show the stock price this and others show a stock price that is reasonable but below the median.

Is it a good company at a reasonable price? I think that this stock price is reasonable, if not cheap. The is in the oil and gas industry, so is high risk and not for everyone. If you want exposure to this industry, this might be a good stock to buy.

When I look at analysts’ recommendations, I find Strong Buy (8), Buy (10) and Hold (4). The consensus would be a Buy. The 12 month stock price consensus is $47.40. This implies a total return of 29.75% with 4.95% from dividends and 24.80% from capital gains.

A number of analysts on Stock Chase think this is a good time to buy this stock. Karen Thomas on Motley Fool thinks Canadian Natural Resources is a high quality energy stock and trading at a bargain price. The executive summary on gives this stock 3 stars out of 5 on Simply Wall Street and list 3 risks with this stock. A writer on Simply Wall Street does not like the fact that the company paid a dividend last year that it could not afford. Jonathan Weber on Seeking Alpha thinks this company is a cash flow monster.

Canadian Natural Resources is one of the largest oil, and natural gas producers in western Canada, supplemented by operations in the North Sea and Offshore Africa. The company's portfolio includes light and medium oil, heavy oil, bitumen, synthetic oil, natural gas liquids, and natural gas. Its web site is here Canadian Natural Resources.

The last stock I wrote about was about was Pembina Pipelines Corp (TSX-PPL, NYSE-PBA) ... learn more. The next stock I will write about will be Barclays PLC ADR (LSE-BARC, NYSE-BCS) ... learn more on Monday, April 26, 2021 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.

Pembina Pipelines Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Utility. The stock price is probably reasonable. Both the Dividend Payout Ratios and Debt Ratios could be improved. I have had this stock for 19 years and have make a total return of 15.67% per year. They had an earnings loss in 2020 because they wrote off some investments. See my spreadsheet on Pembina Pipelines Corp.

I own this stock of Pembina Pipelines Corp (TSX-PPL, NYSE-PBA). This is a dividend growth utility Stocks. In December 2001 I thought it would be a good time to purchase this stock as the market was relatively low. Pipeline stocks are conservative and the return on this one was good at 9.7%. When I purchased this stock, it was an Income Trust company.

When I was updating my spreadsheet, I noticed I have done quite well with this stock over the years. I have had it for 19 years and my total return is 15.67% with 6.84% from capital gains and 8.83% from dividends. The company declared an EPS loss for 2020 because it wrote off some investments.

The dividend yields are good with dividend growth low. The current dividend yield is good (5% to 6% ranges) at 6.75%. The 5 and 10 year median dividend yields are also good at 5.19% and 5.18%. The historical median dividend yield is High (over 6%) at 7.20%. This stock used to be an income trust and this explains the high dividend yield for the historical median dividend yield.

The Dividend Payout Ratios (DPR) need to be improved. The DPR for EPS for 2020 is non-calculable because an EPS loss in 2020. The 5 year coverage is high at 158%. The DPR for EPS is expected to decline over the next few years and be around 110% in 2021. The DPR for CFPS for 2020 is 46% with 5 year coverage at 49%. This is a bit high as I prefer this to be around 40%. The DPR for 2020 for Free Cash Flow is 125% with 5 year coverage at 244%. The DPR for FCF for 2021 is expected to be better at 68%.

Debt Ratios could be improved. The Long Term Debt/Market Cap ratio for 2020 is fine at 0.62%. It has to a current one of 0.50 because of the rising stock price. The Liquidity Ratio for 2020 is 0.56 and if you add in cash flow after dividends it is still low at 1.04. If you add back the current portion of the loan it is 1.57. The Leverage and Debt/Equity Ratios for 2020 are 2.09 and 1.09.

The Total Return per year is shown below for years of 5 to 23 to the end of 2020. 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.
2015	5	7.05%	7.20%	-0.03%	7.23%
2010	10	4.71%	10.93%	3.37%	7.55%
2005	15	5.92%	12.37%	4.32%	8.05%
2000	20	4.94%	16.80%	6.46%	10.34%
1997	23	6.76%	20.02%	7.30%	12.71%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 16.88, 18.86 and 20.84. The corresponding 10 year ratios are 23.47, 27.90 and 32.33. The corresponding historical ratios are 19.82, 22.66 and 24.95. The current P/E Ratio is 16.31 based on a stock price of $37.36 and EPS estimate for 2021 of $2.29. This P/E is low than the 10 year low median P/E and in fact lower than all the low median P/E Ratios. This stock price testing suggests that the stock price is relatively cheap.

If you look at P/E Ratios compared to Total Returns for the 5, 10, 15, and 20 year periods, I find the following. For example, total return over the past 15 years is 12.37% per year, the starting P/E Ratio (the one from 15 years ago) was 24.54. From the point of view of this chart, a P/E Ratio of 16.31 would be fine.

Year	Tot Return	Start P/E
5	7.20%	29.56
10	10.93%	18.95
15	12.37%	24.54
20	16.80%	10.75

I get a Graham Price of $33.53. The 10 year low, median, and high median Price/Graham Price Ratios are 1.33, 1.52 and 1.70. The current P/GP Ratio is 1.11 based on a stock price of $37.36. This ratio is low than the 10 year low median ratio. 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 1.79. The current P/B Ratio is 1.71 based on Book Value of $11,999M, Book Value per share of $21.82 and a stock price of $37.36. The current ratio is 4.3% 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 14.74. The current P/B Ratio is 8.36 based on Cash Flow per Share estimate for 2021 of $4.47, Cash Flow of $2,459M and a stock price of $37.36. The current ratio is 43% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get an historical median dividend yield of 7.20%. The current dividend yield is 6.75% based on dividends $2.52 and a stock price of $37.36. The current dividend yield is 6% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median. This problem with this test is that the company was an income trust. Income Trusts always had very high dividend yields.

I get a 10 year median dividend yield of 5.18%. The current dividend yield is 6.75% based on dividends $2.52 and a stock price of $37.36. The current dividend yield is 30% 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 2.93. The current P/S Ratio is 3.03 based on Revenue estimate for $6,787M, Revenue per Share of $12.34 and a stock price of $37.36. The current ratio is 3.4% 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 reasonable. The dividend yield is 30% below the 10 year median dividend yield. The P/S Ratio test shows the current ratio slightly above the 10 year median test. Most of the tests show the stock price as cheap or reasonable and below the median.

Is it a good company at a reasonable price? I think that the stock price is currently reasonable. I think it is a good company. It has lots of debt, but so do most pipeline companies. A low Liquidity Ratio is common with pipeline companies. They have not cut their dividends so Management seems to feel this is not necessary at this time. analyst below the dividend will start increasing again next year and in 2023.

When I look at analysts’ recommendations, I find Strong Buy (6), Buy (5) and Hold (8). The consensus would be a Buy. The 12 months stock price if $39.26. This implies a total return of 11.83% with 6.75% from dividends and 5.09% from capital gains. This is pretty normal for this company.

Analyst on Stock Chase think this stock is a Buy. Rajiv Nanjapla on Motley Fool says that even though this stock has gone up by 23.7%, it is still 22.7% lower than its January 2020 levels. The Executive Summary on Simply Wall Street gives this stock 3 stars out of 5 and lists 3 risk. A writer on Simply Wall Street does not like the fact that the company paid out in dividends more than it could afford. A writer on Simply Wall Street says the fair value for this stock is $55.86 CDN$. Sure Dividend provides an analysis of this stock last year.

Pembina Pipeline is an integrated midstream energy infrastructure company in western Canada and North Dakota, highlighted by its regional pipeline network. Its web site is here Pembina Pipelines Corp.

The last stock I wrote about was about was Barrick Gold Corp (TSX-ABX, NYSE-GOLD) ... learn more. The next stock I will write about will be Canadian Natural Resources (TSX-CNQ, NYSE-CNQ) ... learn more on Friday, April 23, 2021around 5 pm. Tomorrow on my other blog I will write about 3 REITs to Buy.... learn more on Thursday, April 22, 2021 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.