Power Corp of Canada

Sound bite for Twitter and StockTwits is: Dividend Growth Financial. The stock price seems reasonable at this time. In the future I expect the dividend yield will be in the moderate range (2% to 4%) rather than the good range (5% to 6%). Dividend Payout Ratios are good. See my spreadsheet on Power Corp of Canada.

Is it a good company at a reasonable price? The stock price seems reasonable. However, if we are in a bear market, you would want all stock price testing to point to a cheap price. A cheap price would be something close to $26.00. I plan to hold on to the shares I have in this company. I will not buy more because I have enough invested in this stock. It is just over 3% of my portfolio.

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. It is a stock that I notice has been recommended lately as good value (October 2008). 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 my returns have been mediocre for this stock I have had for some 20 years. I started with Power Financial, and had to convert to Power Corp in 2020 when the company was re-organized. My total return for PWF and POW is 7.80% per year. My RRSP account did better at 8.64% in Total Return and my Trading account did worse at 6.03% Total Return. Original purchase does count. However, this company hold a number of Life Insurance companies and these companies have had a hard time because of ultra-low interest rates. They will be do better with more normal interest rates.

If you had invested in this company in December 2011, $1000.44 you would have bought 42 shares at $23.82 per share. In December 2021, after 10 years you would have received $590.92 in dividends. The stock would be worth $1,755.60. Your total return would have been $2,346.52.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$23.82	$1,000.44	42	10	$590.92	$1,755.60	$2,346.52

The dividend yields are good with dividend growth low. The current dividend is good (5% to 6% ranges) at 5.67%. The 5 year median dividend yield is also good at 5.36%. The 10 and historical dividend yields are also moderate (2% to 4%) at 4.37% and 2.39%. The dividend is growing at a low rate (under 8% per year) at 4.9% per year over the past 5 years. The last dividend increase occurred in 2022 and was for 10.6% after no increase in 2021.

The Dividend Payout Ratios (DPR) are good. The DPR for EPS for 2021 is 42% with 5 year coverage at 52%. The DPR for Adjusted Earnings per Share (AEPS) for 2021 is 38% with 5 year coverage at 48%. The DPR for Cash Flow per Share for 2021 is 10% with 5 year coverage also at 10%. The DPR for Free Cash Flow is 10% with 5 year coverage also at 10%.

Debt Ratios are fine. Because this is a financial, I look at the Debt/Asset Coverage Ratio and for 2021 it is fine at 0.95. Although the Liquidity Ratio is not important for financial, I calculate it to be 2.74 for 2021. The Debt Ratio for 2021 is 1.07 and this is fine for a financial.

The Total Return per year is shown below for years of 5 to 34 to the end of 2021. 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.
2016	5	4.88%	11.50%	6.82%	4.68%
2011	10	4.43%	10.32%	5.78%	4.53%
2006	15	5.87%	4.47%	1.14%	3.34%
2001	20	8.70%	7.58%	3.89%	3.69%
1996	25	10.01%	12.25%	7.49%	4.76%
1991	30	10.58%	13.01%	8.37%	4.64%
1987	34	9.78%	11.28%	7.51%	3.76%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 8.54, 10.17 and 11.80. The corresponding 10 year ratios are 9.97, 11.15 and 11.98. The corresponding historical ratios are 10.55, 12.34 and 13.79. The current P/E Ratio is 9.97 based on a stock price of $34.89 and EPS estimate for 2022 of $3.50. The current is equal to the low of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median. This is close to cheap.

I get a Graham Price of $52.17. The 10 year low, median, and high median Price/Graham Price Ratios are 0.63, 0.71 and 0.80. The current P/GP Ratio is 0.67 based on a stock price of $34.89. The current ratio is between the low and median of 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/Book Value per Share Ratio of 1.06. The current P/B Ratio is 1.01 based on a stock price of $34.89, Book Value of $23,385M and Book Value per Share of $34.56. The current ratio is 5% below the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.

There is also a Book Value per Share for 2022. That P/B ratio would be 0.94 based on a Book Value per Share estimate of $37.00, Book Value of 25,034M and a stock price of $34.89. This ratio is 11% 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 2.13. The current ratio is 2.14 based on last 12 months Cash Flow per Share of $16.34, Cash Flow of $11,053M and a stock price of $34.89. The current ratio is 0.4% above the 10 year ratio. This stock price testing suggests that the stock price is relatively reasonable but at the median.

I get an historical median dividend yield of 2.39%. The current dividend yield is 5.67% based on a stock price of $34.89 and a Dividends of $1.98. The current dividend yield is 137% 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 4.63%. The current dividend yield is 5.67% based on a stock price of $34.89 and a Dividends of $1.98. The current dividend yield is 23% 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 0.33. The current ratio is 0.33 based Revenue estimate for 2022 of $70,178M, Revenue per Share of $104.15 and a stock price of $34.89. The current P/S Ratio is the same as the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

Results of stock price testing is that the stock price is stock price is probably reasonable. The dividend yield tests say it is cheap, but the P/S Ratio test is saying it is reasonable. The other tests vary from cheap to reasonable. If we are again in a bear market, I would not buy until all the tests are pointing to a cheap price.

When I look at analysts’ recommendations, I find Buy (3) and Hold (6). The consensus would be a Hold. The 12 month stock price consensus is $43.17. This implies a total return of 29.41% with 23.73% from capital gains and 5.67% from dividends.

Some analyst on Stock Chase say buy and others say hold. Stock Chase gives this stock 5 stars out of 5. Andrew Walker on Motley Fool thinks this stock is now oversold. Kay Ng on Motley Fool likes the 5% plus dividend yield. The company has put out a Press Release on its 2021 results. The company has put out a press release on Newswire for its first quarter results of 2022. Simply Wall Street on Yahoo Finance talks about who owns stock in this company. Simply Wall Street has one warning of earnings are forecast to decline by an average of 4.5% per year for the next 3 years. Analyst expect EPS to drop 18% next year, but this is after an 39% rise in 2021.

Power Corp. of Canada is a diversified holding company with interests in financial services, communications, and other business sectors through its controlling interests in Power Financial. Power Financial in turn holds controlling interests in Great-West Life (an insurance conglomerate), IGM Financial (Canada's largest nonbank asset manager), and Pargesa (a holding company with interests in European companies). 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 Monday, May 16, 2022 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 Cap Industrial. The stock price could be cheap. The debt ratios for this company are great. This helps companies survive the bad times. Both the CEO and CFO have bought shares in the past year. The company has been having problems, so this stock is a high risk. See my spreadsheet on McCoy Global Inc.

Is it a good company at a reasonable price? The stock price testing is mixed, but it could be cheap. The one thing that this company has going for it is its very good debt ratios. This means that the company had survive a lot of adversity. I am going to hold on to my shares, but I realize the risk is high.

I own this stock of McCoy Global Inc (TSX-MCB, OTC-MCCRF). I decided to try out McCoy in 2011. 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. I review all my stocks once a year to determine if I will continue to hold them or not. I only review them more often if something big happens to one of the stocks I own.

When I was updating my spreadsheet, I noticed my Total Return to the end of April this is less bad that last year. Last year my Total Return was 17.9% loss. This year, to the end of April 2022, my loss is 9.4%. I bought this stock out of my fooling around money. Both the CEO and CFO bought more shares in the past year. This is a positive. The Chairman did not buy or sell during the past year.

The company has a high (and therefore good) Liquidity Ratio (4.12) and Debt Ratio (3.64). I look for these ratios to be 1.50 or higher. These very good ratios help companies survive bad times. I also noted that the CEO, CFO, and the other major officer of this company have increased their shares over the past year. The Chairman has not. I see that few of the directors have any shares in the company.

If you had invested in this company in December 2011, $1001.30 you would have bought 323 shares at $3.10 per share. In December 2021, after 10 years you would have received $219.64 in dividends. The stock would be worth $213.18. Your total return would have been $432.82.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$3.10	$1,001.30	323	10	$219.64	$213.18	$432.82

They cut their dividend for a second time in 2015. There is no indication from the company as to when they might restart dividends.

Debt Ratios are very good. The Long Term Debt/Market Cap Ratio for 2021 is 0.20 and current is at 0.10. The Liquidity Ratio for 2021 is 4.12 and currently at 3.56. The Debt Ratio for 2021 is 3.64 and is currently at 3.49. The Leverage and Debt/Equity Ratios for 2021 are 1.38 and 0.38 and are currently at 1.40 and 0.40. Yes, they have slightly deteriorated with the first quarter of 2022, but they are still great.

The Total Return per year is shown below for years of 5 to 24 to the end of 2021. 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.
2016	5	0.00%	-19.64%	-19.64%	0.00%
2011	10	0.00%	-11.32%	-14.33%	3.01%
2006	15	0.00%	-11.28%	-13.78%	2.50%
2001	20	0.00%	4.24%	-2.10%	6.34%
1997	24	0.00%	-3.43%	-6.54%	3.11%

The 5 year low, median, and high median Price/Earnings per Share Ratios are all negative and therefore unusable. The corresponding 10 year ratios are 1.21, 1.74 and 2.27. The corresponding historical ratios are 3.29, 8.11 and 10.18. The current P/E Ratio is 6.13 based on a stock price of $0.98 and EPS for last 12 months of $0.16. The 10 year ratios are really too low. The historical ones are more reasonable and compared to them, the stock price is between the low and median of the historical median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median. Also, any P/E Ratio below 10.00 is considered low.

I get a Graham Price of $2.25. The 10 year low, median, and high median Price/Graham Price Ratios are 0.51, 0.72 and 0.93. The current P/GP Ratio is 0.44 based on a stock price of $0.98. The current ratio is below the low of the 10 year median 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 0.94. The current P/B Ratio is 0.70 based on a Book Value of $39.63, Book Value per Share of 1.40 and a stock price of $0.98. The current ratio is 26% 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 7.87. The current P/CF Ratio is 12.77 based on a stock price of $0.98, Cash Flow for last 12 months of $1.3M and Cash Flow per Share of $0.05. The current ratio is 62% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I cannot do any dividend yield testing because the dividend has been suspended.

The 10 year median Price/Sales (Revenue) Ratio is 0.69. The current P/S Ratio is 0.81 based on a stock price of $0.98, Revenue for last 12 months of $34M and Revenue per Share of $1.22. The current ratio is 31% 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 mixed. The problem is that this company is not doing well in cash flow and revenue. The Graham Price test gives it a stock price of cheap as does the Price/Book Value test. The P/E ratio is very low. Because the company has not been doing well, analysts are not following this stock.

When I look at analysts’ recommendations, I find a Strong Buy (1) on Yahoo Finance. A Hold (1) on WSJ Alpha Spread give a Discounted Cash Flow (DCF) Value of $1.46 CDN$ on Alpha Spread. I get a 12 month Stock Price on Alpha Spread of $1.25. This implies a total return of 27.6% all from capital gains based on a stock price of $0.98.

Analysts last made remarks on this stock in 2016 on Stock Chase. Stock Chase gives this stock 1 star out of 5. Simply Wall Street on Yahoo Finance talks about this company’s balance sheet. The company has a news release on Newswire announcing their first quarter results for 2022. The company has a news release on Newswire announcing their fourth quarter results for 2021. Simply Wall Street on Yahoo Finance says the company’s ROCE is improving, but from a very low level. Simply Wall Street lists 2 risks for this stock as high level of non-cash earnings and does not have a meaningful market cap (CA$30M).

McCoy Global Inc is a provider of equipment and technologies to support tubular running operations, enhance wellbore integrity and assist with collecting critical data for the global energy industry. It is engaged in the design, production, and distribution of capital equipment to support tubular running operations, enhance wellbore integrity and to support capital equipment sales through aftermarket products and services such as technical support, consumables, and replacement parts. 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 Friday, May 13, 2022 around 5 pm. Tomorrow on my other blog I will write about Payday Loans and Alternatives.... learn more on Thursday, May 12, 2022 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 current still expensive. The low Liquidity Ratio is a risk. The current dividend yield is quite low and I would personally like to see the dividend yield higher the historical yield of 2.86% before buying. See my spreadsheet on Thomson Reuters Corp.

Is it a good company at a reasonable price? I still like this company, although it has gone through a number of reorganizations over the years. I bought it for diversification and I keep it for that reason. I have found that purchase price does matter for long term investments returns, so I do like to pay at least a reasonable price.

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, almost 30 years. I bought this stock to give portfolio some balance as I had too many financial stocks. I plan to hold on to my shares, but I have enough and will not be buying anymore.

When I was updating my spreadsheet, I noticed I have had this stock for 35 years and I have made a total return of 8.78% per year with 6.19% from capital gains and 2.59% from dividends. I like long term stock hold that produced a total return of 8% or more per year.

If you had invested in this company in December 2011, $1007.51 you would have bought 37 shares at $27.23 per share. In December 2021, after 10 years you would have received $628.77 in dividends. The stock would be worth $5,596.99. Your total return would have been $6,225.76.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$27.23	$1,007.51	37	10	$628.77	$5,596.99	$6,225.76

The dividend yields are low with dividend growth low. The current dividend yield is low (below 2%) at 1.84%. The 5, 10 and historical median dividend yields are moderate (2% to 4% ranges) at 2.38%, 3.16% and 2.86%. Dividend growth is low (below 8% per year) at 3.56% per year over the past 5 years.

The Dividend Payout Ratios (DPR) could be improved. The DPR for EPS for 2021 is 14.09% with 5 year coverage at 30%. The company also provides an Adjusted Earnings per Share (AEPS). The DPR for AEPS for 2021 is 83% with 5 year coverage at 103%. The DPR for Cash Flow per Share (CFPS) is 84% with 5 year coverage at 47%. This is high and I would prefer the DPR for CFPS be 40% or less. The DPR for Free Cash Flow (FCF) for 2021 is 57% with 5 year coverage at 70%.

Debt Ratios are fine, but Liquidity Ratio should be improved. The Long Term Debt/Market Cap Ratio for 2021 is good and low at 0.07. The Liquidity Ratio for 2021 is 0.95. If you add in Cash Flow after dividends it is still low at 1.33. This is a vulnerability. The Debt Ratio for 2021 is 2.66. The Leverage and Debt/Equity Ratios are good at 1.60 and 0.60.

The Total Return per year is shown below for years of 5 to 36 to the end of 2021 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.
2016	5	2.37%	23.08%	20.81%	2.27%
2011	10	5.09%	21.79%	18.71%	3.09%
2006	15	4.75%	9.73%	7.90%	1.83%
2001	20	3.11%	7.59%	5.87%	1.72%
1996	25	3.94%	9.40%	7.14%	2.27%
1991	30	4.62%	10.50%	7.78%	2.73%
1986	35	5.35%	8.37%	6.28%	2.10%
1985	36	5.54%	9.12%	6.79%	2.33%

The Total Return per year is shown below for years of 5 to 31 to the end of 2021 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.
2016	5	3.56%	24.58%	22.27%	2.31%
2011	10	2.71%	19.05%	16.15%	2.90%
2006	15	4.15%	9.27%	7.31%	1.96%
2001	20	4.28%	9.76%	7.11%	2.65%
1996	25	4.36%	10.24%	7.45%	2.79%
1991	30	4.35%	10.26%	7.42%	2.83%
1990	31	5.68%	9.80%	7.01%	2.79%

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 16.62, 19.63 and 23.72. The current P/E Ratio is 26.69 based on a stock price of $123.61 and EPS estimate for 2022 of $4.63 ($3.62 US$). The current P/E is above the high of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive. This testing is in CDN$.

I also have Adjusted Earning Per Share. The 5 year low, median, and high median P/AEPS Ratios are 36.33, 46.37 and 54.40. The corresponding 10 year ratios are 19.19, 22.18 and 25.17. The current P/AEPS Ratio is 39.02 based on AEPS estimate for 2022 of $2.44 and a stock price of $95.20. This ratio is above the high of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. You will get similar results in CDN$.

I get a Graham Price of $61.07. The 10 year low, median, and high median Price/Graham Price Ratios are 1.19, 1.34 and 1.53. The current P/GP Ratio is 2.02 based on a stock price of $123.61. The current ratio is above the high of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive. This testing is in CDN$.

I get a 10 year median Price/Book Value per Share Ratio of 2.46. The current P/B Ratio is 3.37 based on a Book Value of $13,834M, Book Value per Share of $28.23 and a stock price of $95.20. The current ratio is 37% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. You will get similar results in CDN$.

I also have an estimate for the Book Value per Share for 2022. I get a 10 year median Price/Book Value per Share Ratio of 2.46. The P/B Ratio for 2022 is 3.10 based on a Book Value of $14,923, Book Value per Share estimate for 2022 of $30.70 and a stock price of $95.20. The current ratio is 26% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. You will get similar results in CDN$.

I get a 10 year median Price/Cash Flow per Share Ratio of 12.89. The current P/CF Ratio is 25.05 based on Cash Flow per Share estimate for 2022 of $3.80, Cash Flow of $1,847M and a stock price of $95.20. The current ratio is 94% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. You will get similar results in CDN$.

I get an historical median dividend yield of 2.86%. The current dividend yield is 1.84% based on a dividend of $2.28 ($1.78 US$) and a stock price of $123.61. The current dividend yield is 36% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive. This testing is in CDN$.

I get an historical median dividend yield of 3.22%. The current dividend yield is 1.87% based on a dividend of $1.78 and a stock price of $95.20. The current dividend yield is 41% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. You will get similar results in CDN$. (The slight difference in CDN$ and US$ yield is because of the exchange rate and the US and CDN markets are not always exactly in sync.)

The 10 year median Price/Sales (Revenue) Ratio is 2.72. The current P/S Ratio is 6.92 based on Revenue estimate for 2022 of $6,687M, Revenue per Share of $13.76 and a stock price of $95.20. The current P/S Ratio is 155% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. You will get similar results in CDN$.

Results of stock price testing is that the stock price probably relatively expensive. All the tests, including the dividend yield and P/S Ratio tests are showing the stock price as expensive.

Last year I also said that the results of stock price testing were that the stock price was 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.

When I look at analysts’ recommendations, I find Strong Buy (3), Buy (5), Hold (7) and Sell (1). The consensus would be a Buy. The 12 month target price is $152.66 ($119.34 US$). This implies in CDN$ a total return of 25.34% with 23.50% from capital gains and 1.84% from dividends based on a stock price of $123.61.

When I looked at analysts’ recommendations last year, I found 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 based on a stock price of $118.80. What happened was a stock price increase to the current level of $123.61 which implies a total return of 5.72% with 4.05% from capital gains and 1.67% from dividends. However, the stock was much higher at year end at $151.27 and has dropped by 18% so far this year. All indexes are down this year.

Analysts on Stock Chase like this company, but one says hold because of recent restructuring. Stock Chase gives this stock 4 stars out of 5. Christopher Liew on Motley Fool says while TRI isn’t a high flyer, the dividend should be safe and sustainable. Adam Othman on Motley Fool thinks that if you own this stock, it would be a great time to add to your stake. The company, in a Press Release talk about their fourth quarter. The company, in a Press Release talk about their first quarter of 2022. There is a Simply Wall Street report on this company on Yahoo Finance.

Thomson Reuters Corp is a provider of business information services. It operates through five segments: Legal Professionals, Corporates, Tax & Accounting Professionals, Reuters News and Global Print. 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 Wednesday, May 11, 2022 around 5 pm. Tomorrow on my other blog I will write about Stocks for May.... learn more on Tuesday, May 10, 2022 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. I think that the stock price is currently expensive. The stock price has been growing faster than Revenue and EPS. Stock prices always look to an expected future. The low Liquidity Ratio is a risk. See my spreadsheet on WSP Global Inc.

Is it a good company at a reasonable price? I think that the stock price is expensive. I will not be buying any more as I have enough of the stock. I am happy with this stock for now. It is paying a dividend, but it is flat. I am earning 6% on my original investment. For now, the company is growing and hopefully, in the future they will increase the dividends.

I own this stock of WSP Global Inc (TSX-WSP, OTC-WSPOF). In Sept 2011 I rationalized my portfolio. I sold stocks that did not make it into my core and bought stocks that could of the same type. In this case selling Stantec and buying Genivar. In October 2011 I wanted to sell Enerflex because it is not a company I had bought, but a distribution from Toromont. I bought more Genivar, now called WSP Global.

When I was updating my spreadsheet, I noticed I have done well with this stock. My total return, to the end of March 2022 is 26.45% with 23.37% from capital gains and 3.08% from dividends. Yes, I know that the stock price has fallen lately as it has for most stocks. However, for my purposes, I am looking at my value at the end of March 2022.

We may or may not be in a bear market, but I do not care. I have been through them before. What happens to good dividend paying stock portfolio like mine is that my dividend increases go down.

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If you had invested in this company in 25 November 2016, $1,000.00 you would have bought 100 shares at $10 per share. In December 2021, after 10 years you would have received $570 in dividends. The stock would be worth $6,977.94. Your total return would have been $7,547.94.

If you had invested in this company in December 2011, $1,000.16 you would have bought 38 shares at $26.32 per share. In December 2021, after 16 years you would have received $2,296.90 in dividends. The stock would be worth $18,296.90. Your total return would have been $20,659.90.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$10.00	$1,000.00	100	16	$2,296.90	$18,363.00	$20,659.90
$26.32	$1,000.16	38	10	$570.00	$6,977.94	$7,547.94

The dividend yields are Low with dividend growth non-existent. The current dividend yield is low (below 2%) at 1.05%. The 5, 10 and historical dividend yields are moderate (2% to 4% ranges) at 2.04%, 2.32% and 4.39%. However, these really do not matter has dividends have been flat since 2009. This company used to be an income trust and income trusts have high yields. Since dividends have been flat for so long, there is no dividend growth and currently you cannot expect any. It is disappointing that management has no plans to raise the dividend.

The Dividend Payout Ratios (DPR) are fine. The DPR for EPS for 2021 is 37% with 5 year coverage at 55%. DPRs have been coming down for some time. As an income trust, the company could pay out more then its EPS in dividends. However, as a corporation it should not. So DPR for EPS has been declining and they would probably feel better if it was lower. However, it is expected to be around 29% in 2022. The DPR for Adjusted Earnings per Share (AEPS) for 2021 is 29% with 5 year coverage at 48%. The DPR for Cash Flow per Share for 2021 is 36% with 5 year coverage at 51%. The DPR for Free Cash Flow (FCF) for 2021 is 9% with 5 year coverage at 11%.

Debt Ratios are fine, but the Liquidity Ratio is low and that is a risk. The Long Term Debt/Market Cap Ratio for 2021 is low and good at 0.07. The Liquidity Ratio for 2021 is 1.14 and even adding in Cash Flow after Dividends, it is still low at 1.38. I prefer it to be at 1.50 or higher. The Debt Ratio for 2021 is good at 1.71. The Leverage and Debt/Equity Ratios are fine at 2.41 and1.41.

The Total Return per year is shown below for years of 5 to 16 to the end of 2021. 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.
2016	5	0.00%	34.74%	32.66%	2.08%
2011	10	0.00%	24.30%	21.44%	2.86%
2006	15	7.36%	23.36%	18.89%	4.47%
2005	16		24.96%	19.95%	5.01%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 24.04, 27.83 and 33.37. The corresponding 10 year ratios are 20.92, 26.00 and 30.20. The corresponding historical ratios are 16.23, 20.27 and 24.25. The current P/E Ratio is 31.12 based on a stock price of $143.46 and EPS estimate for 2022 of $4.61. The current ratio is above the high of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive.

I also have an Adjusted Earnings per Share (AEPS). The 5 year low, median, and high median P/AEPS are 19.13, 23.71 and 29.17. The corresponding 10 year ratios are 17.70, 23.05 and 26.05. The current P/AEPS Ratio is 25.30 based on a stock price of $143.46 and AEPS estimate for 2022 of $5.67. The current ratio is between the median and high ratios of the 10 year ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a Graham Price of $64.09. The 10 year low, median, and high median Price/Graham Price Ratios are 1.24, 1.46 and 1.66. The current P/GP Ratio is 2.24 based on a stock price of $143.46. This ratio is above the high of the 10 year median Ratios. 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 1.65. The current P/B Ratio is 3.62 based on a Book Value of $4,665M, Book Value per Share of $39.60 and a stock price of $143.46. The current ratio is 120% 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 11.92. The current P/CF Ratio is 15.21 based on Cash Flow per Share estimate for 2022 of $9.43, Cash Flow of $1,111M and a stock price of $143.46. The current ratio is 28% 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 4.39%. The current dividend yield is 1.05% based on dividends of $1.50 and a stock price of $143.46. The current yield is 76% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year median dividend yield of 3.23%. The current dividend yield is 1.05% based on dividends of $1.50 and a stock price of $143.46. The current yield is 68% below the historical median 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 1.96 based on Revenue estimate for 2022 of $8,620M, Revenue per Share of $73.19 and a stock price of $143.46. The current ratio is 72% 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. The P/S Ratio test says this. The problem with the dividend yield tests is the flat dividends, so these are not valid tests. All the testing is showing the stock price as expensive except for the P/AEPS Ratio test. With that test, I supplemented the AEPS with EPS for years 2011 to 2014 as there is only 6 years of data. Since I do not believe in selling good stocks when they become expensive, I would give this stock a Hold rating.

Last year, as a results of my stock price testing, I said that the stock price was 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.

When I look at analysts’ recommendations, I find Strong Buy (4), Outperform (8) and Hold (2). The consensus would be a Buy. The 12 month stock price is $195.43. This implies a total return of 37.29% with 26.25% from capital gains and 1.05% from dividends based on a current stock price of $143.46.

When I looked at analysts’ recommendations last year, I found 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 based on a stock price of 127.15. What happened was a price move to $143.46 and a total return of 14.01% with 12.83% from capital gains and 1.18% from dividends. So, analysts were off last year. Also, if you consider the fact this stock reached a price of $183.63 at the 2021 year end and has been going down, with the stock market ever since, then analysts were way off.

Analysts like this stock on Stock Chase, but some think it is too expensive at present. Stock Chase gives this stock 4 stars out of 5. Robin Brown Motley Fool is impressed with the size of this company and last 10 years of returns. He says do regular investments and so current valuation does not matter so much. Adam Othman on Motley Fool admits price is high, but thinks it will keep growing at its current rate. The company talks about its fourth quarter in a Press Release. A Simply Wall Street report on Yahoo Finance talks about the share price growing faster than the EPS. They list not risks for this company.

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 Algoma Central Corporation) ... learn more. The next stock I will write about will be Thomson Reuters Corp (TSX-TRI, NYSE-TRI) ... learn more on Monday, May 9, 2022 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.

Algoma Central Corporation

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. The stock price is current reasonable, if not cheap. The Debt Ratio are good. DPR Ratios are fine. They did a special dividend payment last year. Total return for most periods us good. See my spreadsheet on Algoma Central Corporation.

Is it a good company at a reasonable price? The stock price seems reasonable if not cheap. The dividends were increased by 31% last years. This would imply that the company expects to do quite well in the future. However, this is a small company, under $1B in market cap and so that is a risk in itself.

I do not own this stock of Algoma Central Corporation (TSX-ALC, OTC-AGMJF). I got the name off of the internet. The description was that Algoma Central Corporation is a Canadian shipping company. It operates Canadian flag fleet of dry and liquid bulk carriers operating on the Great Lakes. The company operates its business through six segments that are Domestic Dry-Bulk, Product Tankers, Ocean Self Unloaders, Corporate, Investment Properties, and Global Short Sea Shipping. This is a new stock for me to follow.

When I was updating my spreadsheet, I noticed this company has done well over the past 5 years, and not so well over the past 10 years. For example, Revenue is up by 8.9% per year over the past 5 years but only up by 0.27% per year over the past 10 years. EPS is up by 22% per year over the past 5 years but only by 1.8% per year over the past 10 years. The Chairman is Duncan Jackman. I wonder if he is part of the Jackman family. It would seem so as he is CEO of E-L Financial.

If you had invested in this company in December 1991, $1001.49 you would have bought 1512 shares at $0.66 per share. In December 2021, after 30 years you would have received $13,762.22 in dividends. The stock would be worth $26,157.60. Your total return would have been $39,919.82.

If you had invested in this company in December 2011, $1001.68 you would have bought 124 shares at $8.08 per share. In December 2021, after 10 years you would have received $874.20 in dividends. The stock would be worth $2,145.20. Your total return would have been $3,019.40.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$0.66	$1,000.49	1,512	30	$13,762.22	$26,157.60	$39,919.82
$8.08	$1,001.68	124	10	$874.20	$2,145.20	$3,019.40

The dividend yields are moderate with dividend growth good. The current dividend yield is moderate (2% to 4% ranges) at 4.01%. The 5, 10 and historical median dividend yields are also moderate at 3.82%, 2.93% and 2.63%. The dividend increases are good (15% and above) with dividend increases at 19.4% per year over the past 5 years. Prior to this, dividend increases were moderate (8% to 14% ranges).

The Dividend Payout Ratios (DPR) are fine. The DPR for EPS for 2021 is 166% with 5 year coverage at 88%. Analysts expect the DPR for the future to move lower and expects it to be for EPS for 2022 to be 41%. The DPR for Adjusted EPS (AEPS) for 2021 is 51% with 5 year coverage at 38%. The DPR for Cash Flow per Share (CFPS) for 2021 is 76% with 5 year coverage at 38%. Analysts expect the DPR for CFPS to be around 35% in 2022. The DPR for Free Cash Flow (FCF) for 2021 is 94% with 5 year coverage at 413%. The company paid out a special dividend of $2.65 in 2021. This is why the DPRs for 2021 are high.

Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2021 is 0.60, and this is fine. Although some analysts prefer this ratio to be 0.50 or lower. The Liquidity Ratio for 2021 is 2.26. This higher than the immediate past. The 5 and 10 year median Liquidity Ratios are 1.25 and 2.69. The Debt Ratio for 2021 is 2.52. This is high and good. The Leverage and Debt/Equity Ratios for 2021 are 1.66 and 0.66. This are low and good

The Total Return per year is shown below for years of 5 to 33 to the end of 2021. 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.
2016	5	19.42%	20.19%	12.32%	7.87%
2011	10	14.22%	12.77%	7.91%	4.86%
2006	15	11.11%	6.91%	3.67%	3.23%
2001	25	10.06%	15.21%	10.73%	4.48%
1996	30	8.94%	10.72%	7.40%	3.32%
1991	35	0.00%	16.35%	11.49%	4.86%
1988	33	7.63%	10.16%	7.40%	2.76%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 6.91, 8.42 and 9.65. The corresponding 10 year ratios are 8.12, 9.24 and 11.39. The corresponding historical ratios are 7.11, 8.42 and 10.31. The current P/E Ratio is 10.15 based on a stock price of $16.95 and EPS estimate for 2022 of $1.67. The current ratio is between the median and high of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I also have Price/Adjusted Earnings per Share Ratios (AEPS). The 5 year low, median, and high median P/AEPS Ratios are 9.41, 12.25 and 11.74. The corresponding 6 year ratios are 9.89, 11.07 and 12.57. The current P/AEPS Ratio is 10.15 based on a stock price of $16.95 and EPS estimate for 2022 of $1.67. This ratio is between the median and high ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a Graham Price of $26.84. The 10 year low, median, and high median Price/Graham Price Ratios are 0.49, 0.56 and 0.65. The current P/GP Ratio is 0.63 based on a stock price of $16.95. This ratio is between the median and high ratios of the 10 year median 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 0.69. The current P/B Ratio is 0.88 based on a Book Value of $725M, Book Value per Share of $19.17 and a stock price of $16.95. The current ratio is 29% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. I know that the P/B Ratios are very low, but if you look at past history, they have been very low.

I get a 10 year median Price/Cash Flow per Share Ratio of 4.47. The current P/CF Ratio is 3.95 based on Cash Flow for the last 12 months of $162M, Cash Flow per Share of $4.30 and a stock price of $16.95. The current ratio is 12% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get an historical median dividend yield of 2.63%. The current dividend yield is 4.01% based on dividends of $0.68 and a stock price of 16.95. The current dividend yield is 53% 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 2.93%. The current dividend yield is 4.01% based on dividends of $0.68 and a stock price of 16.95. 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 0.94. The current P/S Ratio is 0.95 based on Revenue estimate for 2022 of $615M, Revenue per Share of $16.27 and a stock price $16.95. The current ratio is 11% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

Results of stock price testing is that the stock price is probably reasonable, if not cheap. The dividend yield tests say it is cheap, but the P/S Ratio testing is saying it is reasonable but above the median. The company, last year, increased the dividend by 31%. This would imply that they good future results. However, most of the testing is returning a result of a stock price that is reasonable, but above the median.

When I look at analysts’ recommendations, I find Strong Buy (2) and Buy (1). The consensus would be a Strong Buy. The 12 month stock price consensus is $22.83. This implies a total return of 38.70% with 34.69% from capital gains and 4.01% from dividends.

There are few comments on this stock on Stock Chase. In August 2021 one analysts said it had a good cash flow, but was not very liquid. Stock Chase gives this stock 4 starts out of 5. Ambrose O'Callaghan on Motley Fool thinks that this stock has a favourable P/E Ratio. Nikhil Kumar on Motley Fool gives an overview of this stock in May 2021. The company has put out a News Release on their site for their fourth quarter of 2021.

A Simply Wall Street report on Yahoo Finance says the intrinsic value of this stock is $18.60 CDN$. Simply Wall Street gives two warnings of has a high level of debt and unstable dividend track record. Over the past 33 years, this company has raised their dividends 12 times and decreased them 2 times. The decreases occurred in the 1990’s. Perhaps this site is again confusing CDN$ paid dividends and exchange rates as it is a US site. They have also paid special dividends.

Algoma Central Corp owns and operates the fleet of dry and liquid bulk carriers operating on the Great Lakes, St. Lawrence Waterway. The company's Canadian flag fleet consists of self-unloading dry-bulk carriers, gearless dry-bulk carriers, and product tankers. Its web site is here Algoma Central Corporation.

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 WSP Global Inc (TSX-WSP, OTC-WSPOF) ... learn more on Friday, May 6, 2022 around 5 pm. Tomorrow on my other blog I will write about Something to Buy May 2022.... learn more on Thursday, May 5, 2022 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 current stock price might be pricing at this point. The Liquidity Ratio is very low and this is a risk. They have a long history of dividend increases. See my spreadsheet on Fortis Inc .

Is it a good company at a reasonable price? This is a Utility stock and it is one of the categories of stock I invest in. If you in Dividend stocks, you need this category of stock. I note that Money Sense has been giving this stock a C rating for the last three years. Before that it has a B rating. Money Sense put out a list of the top 100 Canadian Dividend Stocks and rate them A, B or C.

I own this stock of Fortis Inc (TSX-FTS, OTC-FRTSF). I am following this company as I own the stock. It was also on Mike’s site showing Dividend Paying Canadian Growth stocks. It was also on the Dividend Growth stock lists that I follow. I first bought this stock as Newfoundland Light and Power Co. Ltd. Class A shares in 1987.

When I was updating my spreadsheet, I noticed I have done well on this stock. I have had it for some 34 years and I have had a total return of 12.86% per year with 7.91% from capital gains and 4.95% from dividends.

Because they have issued shares, with shares outstanding increasing by 3.41% and 9.66% per year over the past 5 and 10 years, the Revenue increase and the Revenue per Share increase is very different. As a shareholder, it is the Revenue per Share that is important. The Revenue has increased by 6.68% and 9.69% per year over the past 5 and 10 years. The Revenue per Share has increased by 3.16% and 0.03% per year over the past 5 and 10 years.

You can also see the effect on Cash Flow too. The Cash Flow has increased by 9.06% and 12.39% per year over the past 5 and 10 years. The Cash Flow per Share has increased by 5.46% and 2.49% per year over the past 5 and 10 years. Here, again as for the Revenue per Share, the Cash Flow per Share increases are quite low.

Analysts expected a 7% increase in EPS to $2.78, however, EPS went from $2.60 to $2.61. Revenue did better compared to expectations. Analyst expect Revenue of $9,353, an increase of 4.7% and Revenue came in at $9.448, an increase of 5.7%.

If you had invested in this company in December 2011, $1001.10 you would have bought 30 shares at $33.37 per share. In December 2021, after 10 years you would have received $474.15 in dividends. The stock would be worth $1,830.90. Your total return would have been $2,305.05.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$33.37	$1,001.10	30	10	$474.15	$1,830.90	$2,305.05

The dividend yields are moderate with dividend growth low. The current dividend yield is moderate (2% to 4% ranges) at 3.46%. The 5, 10 and historical median dividend yields are also moderate at 3.34%, 3.35% and 3.75%. The dividend increases are low (below 8%) at 6.10% per year over the past 5 years. Dividend increases have always been in the low category.

The Dividend Payout Ratios (DPR) are fine. The DPR for EPS for 2021 is 79% with 5 year coverage at 41%. The DPR for Cash Flow per Share (CFPS) for 2021 is 32% with 5 year coverage at 28%. The DPR for Free Cash Flow (FCF) cannot be calculated because of negative FCF flows.

Because this is a utility, I have DPRs for Adjusted Funds from Operations (AFFO). The DPR for AFFO for 2021 is 73% with 5 year coverage at 65%. The company also provides an Adjusted Earnings per Share (AEPS). The DPR for AEPS for 2021 are 79% with 5 year coverage at 72%.

Debt Ratios are fine, but debt is a risk. The Long Term Debt/Market Cap ratio is fine at 0.82. The Debt Ratio is fine at 1.47 although I prefer this to be 1.50 or higher and it generally is. The Leverage and Debt/Equity Ratios are fine at 2.76 and 1.76 respectively.

The Liquidity Ratio is very low at 0.57 and even adding in Cash Flow after dividends we only get to 0.97. We can get above 1.00 only by adding back the Current Portion of the Long Term Debt and then the ratio is 1.47. Utilities traditionally do have a lot of debt. The problem with a low Liquidity Ratio is that the company may not have or can raise cash went it is needed. The Debt to Cash Flow (Years) is 8.16 (and this is better at 3.00 or less. However, Assets/Current Liabilities Ratio at 12.01 is quite good.

The Total Return per year is shown below for years of 5 to 40 to the end of 2021. 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.
2016	5	6.10%	11.82%	8.04%	3.78%
2011	10	5.86%	9.77%	6.22%	3.55%
2006	15	7.74%	8.13%	4.90%	3.23%
2001	20	7.67%	12.86%	8.59%	4.26%
1996	25	6.45%	12.44%	8.20%	4.23%
1991	30	5.87%	12.61%	8.04%	4.57%
1986	35	5.77%	12.52%	7.69%	4.83%
1981	40	6.20%	13.50%	7.88%	5.62%

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 17.67, 19.73 and 20.90. The corresponding historical ratios are 13.01, 14.70 and 16.18. The current P/E Ratio is 22.10 based on a stock price of $61.87 and EPS estimate for 2022 of $2.80. The current P/E Ratio is above the high of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive.

I have also Adjusted Earnings per Share (AEPS) values. The 5 year low, median, and high median P/AEPS Ratios are 17.36, 19.81 and 22.27 The corresponding 10 year ratios are 17.22, 19.16 and 20.29. The current P/AEPS Ratio is 22.02. The current P/AEPS Ratio is above the high of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive.

I have also Adjusted Funds from Operations (AFFO) values. The 5 year low, median, and high median P/AFFO Ratios are 15.75, 17.21 and 19.04. The corresponding 10 year ratios are 15.30, 17.08 and 19.10. The current P/AFFO Ratio is 19.27. This ratio is above the high of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $48.01. The 10 year low, median, and high median Price/Graham Price Ratios are 1.00, 1.10 and 1.20. The current P/GP Ratio is 1.29 based on a stock price of $61.87. The current ratio is above the high of the 10 year median ratios. 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 1.41. The current P/B Ratio is 1.69 based on a stock price of $61.87, Book Value of $17,370M, and Book Value per Share of $36.58. The current ratio is 19.8% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I also have an estimated Book Value per Share (BVPS) for 2022 of $39.60. The P/B Ratio with this BVPS is 1.56 based on a stock price of $61.87 and Book Value of $18,802M. In this case the P/B Ratio is 11% 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 8.14. The current P/CF Ratio is 8.95 based on a stock price of $61.87, Cash Flow per Share estimate for 2022 of $6.91 and a Cash Flow of $3,281M. The current ratio is 10% 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 3.75%. The current dividend yield is 3.46% based on dividends of $2.14 and a stock price of $61.87. The current dividend yield is 8% below the historical median 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 3.35%. The current dividend yield is 3.46% based on dividends of $2.14 and a stock price of $61.87. The current dividend yield is 3% 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 2.24. The current P/S Ratio is 2.99 based on a stock price of $61.87, Revenue estimate for 2022 of $9,815M and a Revenue per Share of $20.67. The current P/S Ratio is 33% 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 on the expensive side? The 10 year median ratio test is saying that the stock price is reasonable and below the median but the P/S Ratio test is not supporting this by saying the stock price is on the expensive side. All the other tests are saying the stock price is above the median or expensive. So, we know it is not cheap. It might be reasonable, but it is probably expensive.

Last year I said that the results of stock price testing were that the stock price was 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.

When I look at analysts’ recommendations, I find Buy (1), Hold (12), Underperform (3) and Sell (1). The consensus would be a Hold. The 12 month stock price consensus is $60.38. This implies a total return of 1.05% with 3.46% from dividends and a capital loss of 2.41% based on a stock price of 61.87.

When I looked at analysts’ recommendations last year, I found Strong Buy (6), Buy (3) and Hold (8). The consensus was a Buy. The 12 month stock price consensus was $58.56. This implies a total return of 9.41% with 5.76% from capital gains and 3.65% from dividends based on a stock price of $55.37. What happened with a move the $61.87 and a total return of 15.39% with 11.74% from capital gains and 3.65% from dividends. So last year, the analysts’ prediction was pretty good.

Analysts like this stock on Stock Chase and think it is a Buy. Stock Chase gives this stock 5 stars out of 5. Demetris Afxentiou on Motley Fool thinks this is a good defensive stock to buy. Andrew Walker on Motley Fool thinks this is a good passive income stock. The company reports its fourth quarterly results on Newswire.

A Simply Wall Street report on Yahoo Finance says that they think this stock intrinsic value is $68.59 CDN$. Simply Wall Street lists two risks with this company of interest payments are not well covered by earnings and dividend of 3.38% is not well covered by earnings.

Fortis owns and operates 10 utility transmission and distribution assets in Canada and the United States, serving more than 3.4 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 Algoma Central Corporation) ... learn more on Wednesday, May 4, 2022 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks May 2022 .... learn more on Tuesday, May 3, 2022 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 Growth Industrial. The stock price is probably reasonable. The company did worse in 2021 than expected. Debt Ratios are not good and need improving. Analyst expect that dividends will grow again in the future. See my spreadsheet on SNC-Lavalin Group Inc.

Is it a good company at a reasonable price? The stock price is probably reasonable. Analysts expect a big increase in the stock price again this year, but that is hard to tell. Analysts also are expecting a recovery this year, like they did last year. I expect this company to recover at some point in the future. In the meantime, they have a problem with debt. This is a risk and problems with debt can become serious in a downturn.

I do not own this stock of SNC-Lavalin Group Inc (TSX-SNC, OTC-SNCAF), but I used to. I sold my stock in SNC-Lavalin (TSX-SNC, OTC-SNCAF) in 2019. I had given up hope that there will be any sort of resolution for this company anytime soon. I live off my dividends and they have cut the dividends twice this year.

In 2019 the Investment Reporter has removed this stock from their Key Stock List and Issued a sell on the stock. Also, in 2019 the largest shareholder and a shareholder for lots of Quebec companies of Caisse de Depot et Placement du Quebec seems to be losing patience with this stock also.

When I was updating my spreadsheet, I noticed analysts expected the EPS for 2021, 2022 and 2023 last year to be $1.71, $1.96, and $1.95. However, for 2021, instead of an EPS of $1.71, the EPS was a lot lower at $0.57. Analysts have reduced the expected EPS in 2022 to $1.75 from $1.95. However, the expected EPS for 2023 in 2020 was $1.96 and now it is $2.45. Also, last year analysts thought that dividends were again be raised in 2022, now they think the next dividend raise will be in 2023.

If you had invested in this company in December 2011, $1,021.60 you would have bought 20 shares at $51.08 per share. In December 2021, after 10 years you would have received $148.80 in dividends. The stock would be worth $618.20. Your total return would have been $767.00.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$51.08	$1,021.60	20	10	$148.80	$618.20	$767.00

The dividend yields are low with dividend growth has stopped. The current dividend yield is low (below 2%) at 0.28%. Personally, I never buy a stock with dividends below 1%. The company decreased their dividends in 2019. Dividends were decreased some 93%. The dividends have been flat since 2020. Analysts expect dividend to start rising again in 2023.

The Dividend Payout Ratios (DPR) seems fine going forward. The DPR for EPS for 2021 is 14%. I cannot calculate 5 year coverage because of past earning losses. This company provides Adjusted Earnings per Share (AEPS). The DPR for AEPS for 2021 is 9% with 5 year coverage at 53%. The DPR for Cash Flow per Share (CFPS) for 2021 is 6% with 5 year coverage at 39%. The DPR for Free Cash Flow (FCF) for 2021 is 50% with 5 year coverage not calculable due to past negative FCF.

Debt Ratios are not good and need improving. The Long Term Debt/Market Cap Ratio is low and good at 0.29. The Debt Ratio is 1.43. I prefer this to be 1.50 or higher. The Leverage and Debt/Equity Ratios for 2021 are 3.30 and 2.30. These are too high. I prefer them to be below 3.00 and below 2.00, respectively.

The Liquidity Ratio is very low at 0.92 and even adding in Cash Flow after dividends gets you to 0.95 and add back in the current portion of the current debt, we still get only 0.98. So current assets cannot coverage current liabilities. To do that the ratio needs to be at least 1.00 and a decent ratio is 1.50. I looked at the Assets/Current Liabilities Ratio and it is at 2.50. This could be higher. I also looked at the Long Term Debt to Cash Flow (in years) and that is 11.57. A good Long Term Debt to Cash Flow is 3.00 (years).

The Total Return per year is shown below for years of 5 to 33 to the end of 2021. 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.
2016	5	-40.13%	-10.73%	-11.76%	1.03%
2011	10	-20.95%	-3.13%	-4.90%	1.77%
2006	15	-8.43%	2.12%	-0.12%	2.24%
2001	20	-0.94%	9.19%	6.00%	3.19%
1996	25	1.39%	11.08%	7.86%	3.22%
1991	30	2.34%	13.42%	9.92%	3.50%
1988	33	5.09%	19.51%	13.75%	5.76%

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 15.42, 19.65 and 25.55. The corresponding historical ratios are 13.87, 19.11 and 23.90. The current P/E Ratio is 16.61 based on a stock price of $29.07 and EPS estimate for 2022 of $1.75. This ratio is between the low and median ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.

This company also provides Adjusted Earnings per Share (AEPS). The 5 year low, median, and high median Price/Earnings per Share Ratios are 23.13, 34.06 and 43.79. (These are high because the AEPS was low.) The corresponding 10 year ratios are 16.61, 21.16 and 25.71. The current P/AEPS is 16.90 based on AEPS estimate for 2022 of $1.72 and a stock price of $29.07. This ratio is between the low and median ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $21.72. The 10 year low, median, and high median Price/Graham Price Ratios are 1.31, 1.56 and 1.85. The current P/GP Ratio is 1.34 based on a stock price of $29.07. The current ratio is between the low and median ratios of the 10 year 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 1.85. The current P/B Ratio is 2.43 based on a stock price of $29.07, Book Value of $2,102M and a Book Value per Share of $11.98. This current ratio is 31% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I also have an estimate for Book Value per Share (BVPS) for 2022. I get a 10 year median Price/Book Value per Share Ratio of 1.85. The P/B Ratio with the estimate is 1.59 based on an BVPS estimate for 2022 of $18.30, Book Value of $3,213M and a stock price of $29.06. This ratio is 14% 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 24.37. The current ratio is 14.25 based on a stock price of $29.06, Cash Flow per Share (CVPS) estimate for 2022 of $2.04 and Cash Flow of $358M. The current ratio is 42% 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 1.47%. The current dividend yield is $0.28% based on dividends of $0.08 and a stock price of $29.07. The current yield is 81% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year median dividend yield of 1.98%. The current dividend yield is $0.28% based on dividends of $0.08 and a stock price of $29.07. The current yield is 86% below the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively expensive.

The 10 year median Price/Sales (Revenue) Ratio is 0.85. The current P/S Ratio is 0.69 based on a stock price of $29.06, Revenue estimate for 2022 of $7,386M and Revenue per Share of $42.07. The current ratio is 19% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

Results of stock price testing is that the stock price is probably reasonable. The P/S Ratio says this. It is not confirmed by the dividend yield tests as dividends have been drastically reduced over the past few years. Most of the other testing support this conclusion.

Last year I said that the results of stock price testing were that the stock price was 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.

When I look at analysts’ recommendations, I find Strong Buy (5), Buy (7) and Hold (2). The consensus would be a Strong Buy. The 12 month stock price consensus is $40.43. This implies a total return of 39.35% with 39.08% from capital gains and 0.28% from dividends based on a stock price of $29.07.

When I looked at analysts’ recommendations last year, I found Strong Buy (5), Buy (6) and Hold (3). The consensus was 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. What happened was a move to $29.07 with a total return of 6.27% with 5.98% from capital gains and 0.29% from dividends. So, analysts thought there would be a big recovery in 2021 and now they think that for 2022. This stock will probably recover, we just do not know when.

The two analysts’ remarks this year on Stock Chase are Do Not Buy and Hold. This is a rather negative result. Stock Chase gives this stock 4 stars out of 5. Amy Legate-Wolfe on Motley Fool thinks this stock will continue to perform but it will not be a steady ride. She likes the $41.00 target price. Christopher Liew on Motley Fool says is winning investors over of late. This company in a Press Release talk about their fourth quarter results. There is a Simply Wall Street report on this company on Yahoo Finance.

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 Monday, May 02, 2022 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.