Goeasy Ltd

Sound bite for Twitter and StockTwits is: Dividend Growth Financial. The stock price is probably reasonable, but the P/S Ratio tests says otherwise that it is expensive. Debt Ratios need improving. They do not always have positive Cash Flows. Total Returns have been great. See my spreadsheet on Goeasy Ltd .

Is it a good company at a reasonable price? The Stock Price is probably reasonable. Shareholders are well rewarded. However, I would choose personally not to buy this stock because it is a business model I do not like. I do have friends that invest in this stock and that is fine. Everyone needs to decide themselves what sort of company they want to have shares in

I do not own this stock of Goeasy Ltd (TSX-GSY, OTC-EHMEF). In April of 2016 Investment Reporter said to seek stocks with growing dividends from The Investment Reporter Key stock buys. This is one stock that was named. However, I would still rather invest in companies that are not in the business of charging very high interest rates.

When I was updating my spreadsheet, I noticed that Long Term Debt has increased by 57%. The ratio of Long Term Debt/Market Cap is still good at 0.37, but this is because the stock price has also increased some 85%. Intangibles and Goodwill have both increased. Intangibles by 532% and Goodwill by 750%. The Intangible Goodwill/Market Cap Ratio is still fine at 0.12.

You cannot fail to notice the explosive growth of this stock. The stock price is up by 49% per year over the past 5 years and up by 42% per year over the past 10 years.

If you had invested in this company in December 2011, $1002.75 you would have bought 191 shares at $5.25 per share. In December 2021, after 10 years you would have received $1,663.61 in dividends. The stock would be worth $34,229.11. Your total return would have been $35,892.72.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$5.25	$1,002.75	191	10	$1,663.61	$34,229.11	$35,892.72

The dividend yields are moderate with dividend growth good. The current dividend yield is moderate (2% to 4% ranges) at 3.65%. The 5, 10 and historical dividend yields are also moderate at 2.07%, 2.12% and 2.17%. The dividend growth is good (15% or higher) at 38.61% per year over the past 5 years.

The Dividend Payout Ratios (DPR) are fine except for the DPR FCF. The DPR for EPS for 2021 is 17% with 5 year coverage at 20%. The DPR for Adjusted Earnings per Share (AEPS) for 2021 is 8% with 5 year coverage at 10%. The DPR for Cash Flow per Share for 2021 is $41% with 5 year coverage at 7%. The DPR for Free Cash Flow for 2021 is negative and cannot be calculated.

Debt Ratios need improving. The Long Term Debt/Market Cap Ratio for 2021 is 0.37. However, the stock price has fallen a lot this year and the current ratio is a lot higher at 0.66. What used to keep this ratio in line was the huge run up in the stock price. The Liquidity Ratio is low at 1.37 and I prefer this to be at 1.50 or higher. Adding cash flow does not help as it is negative. The Debt Ratio is also low at 1.44 and I prefer this to be at 1.50 or higher. The Leverage and Debt/Equity Ratios ratio are too high at 3.29 and 2.29. I prefer these to be below 3.00 and 2.00, respectively.

The Total Return per year is shown below for years of 5 to 26 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	38.61%	51.27%	49.00%	2.26%
2011	10	21.04%	45.38%	42.34%	3.04%
2006	15	17.37%	18.12%	17.00%	1.12%
2001	20	19.36%	24.50%	22.42%	2.08%
1996	25		7.09%	6.75%	0.34%
1995	26		9.24%	8.87%	0.37%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 8.74, 11.97 and 14.89. The corresponding 10 year ratios are 8.41, 11.42 and 14.70. The corresponding historical ratios are 9.38, 11.97 and 15.21. The current P/E Ratio is 9.89 based on a stock price of $99.86 and EPS for 2022 of $10.10. 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 also have Adjusted Earnings per Share (AEPS) values. The 5 year low, median, and high median Price/Adjusted Earnings per Share Ratios are 8.13, 10.79 and 14.00. The corresponding 10 year ratios are 8.10, 11.03 and 13.85. The current P/AEPS Ratio is 8.46 based on a stock price of $99.86 and AEPS estimate for 2022 of $11.80. 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 Graham Price of $102.66. The 10 year low, median, and high median Price/Graham Price Ratios are 0.70, 0.92 and 1.25. The current P/GP Ratio is 0.97 based on a stock price of $99.86. 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 1.81. The current P/B Ratio is 2.15 based a Book Value of $751M, Book Value per Share of $46.38 and a stock price of $99.86. The current ratio is 19% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I also have estimate of the Book Value per Share for 2022. Here the P/B Ratio is 1.91 based on a Book Value per Share estimate for 2022 of $52.40, Book Value of $849M and a stock price of $99.86. This ratio is 5% above 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 that is negative and useable. However, I do have Cash Flow without Working Capital. That 10 year median ratio is 2.54. The current P/CF Ratio is 3.65 based on a stock price of $99.86, Cash Flow without WC for last 12 months $443M and Cash Flow per Share of $27.35. The current ratio is 44% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

However, this is a financial and analysts do not think that cash flow is important for financials. They often do not give estimates for Cash Flow per Share for financials, but in this case they do. They expect positive cash flows in 2022. The P/CF Ratio for 2022 is 5.61. This is a low ratio.

I get an historical median dividend yield of 2.17%. The current dividend yield is 3.65% based on dividends of $3.64 and a stock price of $99.86. The current ratio is 68% above the historical dividend yield. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median dividend yield of 2.12%. The current dividend yield is 3.65% based on dividends of $3.64 and a stock price of $99.86. The current ratio is 72% above the historical dividend yield. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) Ratio is 1.04. The current P/S Ratio is 1.63 based on a stock price of $99.86, Revenue estimate for 2022 of $994M, and Revenue per Share of $61.36. The current ratio is 57% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

Results of stock price testing is that the stock price is probably reasonable. The problem is that the dividend yield tests say that the stock price is cheap, but the P/S Ratio tests says it is expensive. Why the Dividend yield tests say cheap is because of the huge rise in dividends over the past 5 years. The last one was for 38%. You have to wonder if this is sustainable. See paragraphs below, but I would go with a reasonable price because the ratios are not high and in fact most are quite good ratios.

Revenue per Share is up by 14.4% and 12.4% per year over the past 5 and 10 years. However, EPS is up by 45.7% and 33.6% per year over the past 5 and 10 years. The AEPS is up by 34.4% and 29% per year over the past 5 and 10 year. Dividend increases are up by 38.6% and 21.1% per year over the past 5 and 10 year. The Stock Price is up by 49% and 42% per year over the past 5 and 10 years. The EPS, AESP, Dividends and Stock Price can only outstrip the Revenue for so long and then it has to stop. Although, I must admit, these things can go on longer than you might think. But, in the end it is Revenue growth that will cause earnings growth in the longer term.

On the other hand, the ratios are not high ones. The current P/E Ratio is 9.89 which is considered a good ratio and any P/E Ratio under 10.00 is considered good. The current P/GP Ratio is 0.97 and this is good as any ratio under 1.00 is good and up to 1.50 is still reasonable. The projected P/B Ratio is 1.91 and that is fairly good as analysts generally consider anything under 3.00 reasonable (and 1.50 good). The current P/S Ratio is 1.63 good for a Financial Services stock.

When I look at analysts’ recommendations, I find Strong Buy (4), Buy (4), Hold (1). The Consensus would be a Strong Buy. The 12 months stock price consensus is $204.22. This implies a total return of $108.15% with 104.51% from capital gains and 3.65% from dividends based on a stock price of $99.86.

When I looked at analysts’ recommendations last year, I found Strong Buy (2) and Buy (4). The consensus would be a Buy. The 12 month stock price consensus is $175.67. This implies a total return of 18.51% with 16.76% from capital gains and 1.75% from dividends based on a stock price of $150.46. What happened was a stock price move to $99.86 and a total loss of 31.88% with a capital loss of 33.63% and dividends of 1.75%. To put a different perspective on this, the stock price was $217.67 by September 2021, but the stock price has been travelling south since.

An analyst on Stock Chase says that the stock price is getting hit for no particular reason. Stock Chase gives this stock 4 stars out of 5. Money Sense Rates this stock a C. Christopher Liew on Motley Fool says that president and CEO, Jason Mullins, said, “The first quarter continued to highlight the growth potential of our business model.” Ambrose O'Callaghan on Motley Fool says he would look to snatch up in this choppy market. The company has a Press Release on the fourth quarter. The company has a press release on Newswire about the first quarter of 2022.

A Simply Wall Street report on Yahoo Finance talks about who owns shares in this company. Simply Wall Street gives 4 risk warnings of debt is not well covered by operating cash flow; high level of non-cash earnings; dividend of 3.71% is not well covered by earnings; and profit margins (26.8%) are lower than last year (46.7%).

Goeasy Ltd provides financial services to own furniture, electronics, computers, and appliances. It offers merchandise leasing of household furnishings, appliances, and home electronic products to consumers under weekly or monthly leasing agreements. The company also offers unsecured installment loans to consumers. Its reportable business segments include easyhome and easyfinancial, of which it derives maximum revenue from easyfinancial segment. Its web site is here Goeasy Ltd .

The last stock I wrote about was about was Algonquin Power & Utilities Corp (TSX-AQN, NTSE-AQN) ... learn more. The next stock I will write about will be Lassonde Industries Inc (TSX-LAS.A, OTC-LSDAF) ... learn more on Friday, June 17, 2022 around 5 pm. Tomorrow on my other blog I will write about having an Emergency Fund .... learn more on Thursday, June 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.

Algonquin Power & Utilities Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Utility. The stock price is probably in a reasonable range. Dividend Payout Ratios (DPR) are too high, but are expected to improve. Debt Ratios are fine, but Liquidity Ratio should improve. Analysts’ recommendations cover all recommendations. See my spreadsheet on Algonquin Power & Utilities Corp.

Is it a good company at a reasonable price? The stock price seems in a reasonable range. It is always good to diversify a portfolio with some utility stocks. Money Sense gives this stock a B rating.

I do not own this stock of Algonquin Power & Utilities Corp (TSX-AQN, NTSE-AQN). This is a dividend paying utility stocks. I got it off a list of Dividend Paying Utility stocks. Also, I own Emera Inc. and this company owns shares in Algonquin Power.

When I was updating my spreadsheet, I noticed both the CEO and CFO have increased their shares over the past years. However, both have started with this company within the last 2 years.

Shares have been increasing rapidly. Outstanding shares have increased by 20% and 15% per year over the past 5 and 10 years. Because of this, you can see a big difference in Revenue and Revenue per Share. Revenue has increased by 23% and 24% per year over the past 5 and 10 years, but Revenue per Share has only increased by 3% and 5% per year over the past 5 and 10 years.

If you had invested in this company in December 2011, $1001.52 you would have bought 156 shares at $6.42 per share. In December 2021, after 10 years you would have received $1,022.17 in dividends. The stock would be worth $2,850.12. Your total return would have been $3,872.29.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$6.42	$1,001.52	156	10	$1,022.17	$2,850.12	$3,872.29

The dividend yields are currently good with dividend growth moderate. Dividends are paid in US$ for this stock. The current dividend yield is good (5% to 6% ranges) at 5.21%. The 5 and 10 year median dividend yields are moderate (2% to 4% ranges) at 4.31% and 4.53%. The historical dividend yield is good at 6.44%. The growth is moderate (8% to 14% ranges) at 10.00% for the last 5 years. The last dividend increase was for 6% and it was in 2022.

The Dividend Payout Ratios (DPR) are too high, but are expected to improve. The DPR for EPS for 2021 is 160% with 5 year coverage at 75%. Next year, the DPR for EPS is expected to be around 103% and then falling to 92% in 2023. The DPR for Cash Flow per Share for 2021 is 60% with 5 year coverage at 49%. Both these are too high, but analysts expect them to fall over the next few years. The Free Cash Flow was been negative over the past 2 years and is expected to be negative over the next two years. Therefore, I cannot calculate and DPR for FCF.

Debt Ratios are fine, but Liquidity Ratio should improve. The Long Term Debt/Market Cap Ratio for 2021 is 0.60. This has increased in the first quarter of 2022 to 0.74. The Liquidity Ratio for 2021 is 0.69 and adding in Cash Flow after dividends only gets you to 0.51. However, these are a bit better in the first quarter of 2022 with the Liquidity Ratio at 0.91 and adding in cash flow after dividends gets you to 1.28. Still very low, but at least over 1.00. The Debt Ratio is better at 1.79. The Leverage and Debt/Equity Ratios are fine at 2.96 and 1.66.

The Total Return per year is shown below for years of 5 to 24 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	8.75%	15.02%	9.91%	5.11%
2011	10	12.25%	16.12%	11.02%	5.09%
2006	15	-0.71%	8.29%	4.15%	4.15%
2001	20	-0.54%	8.09%	2.86%	5.23%
1997	24	-0.05%	8.22%	2.36%	5.86%

The Total Return per year is shown below for years of 5 to 18 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	10.00%	16.44%	11.25%	5.19%
2011	10	9.80%	13.32%	8.69%	4.63%
2006	15	-1.27%	7.90%	3.58%	4.32%
2003	18	0.60%	8.68%	3.25%	5.43%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 23.61, 25.80 and 27.99. The corresponding 10 year ratios are 23.61, 26.55 and 29.39. The corresponding historical ratios are 23.68, 27.16 and 30.43. The current 20.41 based on a stock price of $17.85 and EPS estimate for 2022 of $0.87 ($0.68 US$). This ratio is below the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap. This testing is in CDN$.

I have Adjusted Earnings per Share (AEPS). The 5 year low, median, and high median Price/AEPS Ratios are 1654, 19.85 and 23.16. The corresponding 10 year ratios are 18.63, 22.14 and 26.16. The current P/AESP Ratio is 18.76 based on a stock price of $17.85 and AEPS estimate for 2022 of $0.95 ($0.74 US$). The current ratio is between the low and median of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in CDN$.

I get a Graham Price of $14.52. The 10 year low, median, and high median Price/Graham Price Ratios are 1.25, 1.45 and 1.60. The current P/GP Ratio is 1.23 based on a stock price of $17.85. The current ratio is below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in CDN$.

I get a 10 year median Price/Book Value per Share Ratio of 1.67. The current P/B Ratio is 1.66 based on a stock price of $13.82, Book Value of $5,616M, and Book Value per Share of $8.34. The current ratio is 0.70% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in US$ and you will get similar results in CDN$.

I also have a Book Value per Share estimate for 2022. This will give a P/B Ratio of 1.48 based on the Book Value per Share estimate of $9.34, Book Value of $6,296M and a stock price of $13.82. This ratio is 11% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in US$ and you will get similar results in CDN$.

I get a 10 year median Price/Cash Flow per Share Ratio of 10.49. The current ratio is 11.15 based on Cash Flow per Share estimate for 2022 of $1.24, Cash Flow of $674M and a stock price of $13.82. The current ratio is 6% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in US$ and you will get similar results in CDN$.

I get an historical median dividend yield of 6.44%. The current yield is 5.21% based on dividends of $0.93 ($0.7232 US$) and a stock price of $17.85. The current yield is 19% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in CDN$.

I get a 10 year median dividend yield of 4.53%. The current yield is 5.21% based on dividends of $0.93 ($0.7232 US$) and a stock price of $17.85. The current yield is 14.9% below the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in CDN$.

The 10 year median Price/Sales (Revenue) Ratio is 2.94. The current P/S Ratio is 3.36 based on Revenue estimate for 2022 of $2,772M, Revenue per Share of $4.11 and a stock price of $13.82. The current ratio is 14.5% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in US$ and you will get similar results in CDN$.

Results of stock price testing is that the stock price is probably reasonable. The test results for the dividend yield and P/S Ratio tests are that the stock is under or over the median but still in a reasonable range. Some of the tests even say it is cheap.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (5), Hold (6), Underperform (1) and Sell (1). The consensus would be a Hold, but these recommendations are all over the place. The 12 month stock price consensus is $19.70 ($15.32 US$). This implies a total return of 15.57% with 10.36% from capital gains and 5.21% from dividends.

I found a comment by an analyst with Sell recommendation and he says that the growth rate has come down to 6.5% and he advises a partial sell. He says it still likes the dividend. Another one with an Underperform rating has a lower 12 month stock price of $13.00 US$ and also wonders about the incoming management team. When you get such a broad spread to recommendations, I do wonder why some say underperform and sell.

Analysts on Stock Chase like this company. One referred to its stable cash flow. Stock Chase gives the company 5 starts out of 5. Money Sense gives it a rating of B. Rajiv Nanjapla on Motley Fool thinks it is cheap with good dividend. Daniel Da Costa on Motley Fool thinks this is a safe stock for passive income. The company talks on Newswire about their fourth quarter results. The company talks on Newswire about their first quarter 2022 results. A Simply Wall Street report on Yahoo Finance talks about ownership of this company.

Algonquin Power & Utilities Corp is a North American generation, transmission, and distribution utility. Its web site is here Algonquin Power & Utilities Corp.

The last stock I wrote about was about was Maxar Technologies Ltd (TSX-MAXR, NYSE-MAXR) ... learn more. The next stock I will write about will be Goeasy Ltd (TSX-GSY, OTC-EHMEF) ... learn more on Wednesday, June 15, 2022 around 5 pm. Tomorrow on my other blog I will write about Which Books Should Investors Read .... learn more on Thursday, June 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.

Maxar Technologies Ltd

Sound bite for Twitter and StockTwits is: Dividend Paying Tech. However, the Dividends are nominal. The stock price seems cheap. Debt Ratio need improving. Insiders are buying. See my spreadsheet on Maxar Technologies Ltd.

Is it a good company at a reasonable price? I do not like the debt ratios. Very low Liquidity Ratios can cause problems in economic downturns if the company needs cash but cannot raise cash. The company hit a high in 2015 and has recovered Revenue and Cash Flow but not EPS. It is a risk and not my favourite tech at this time.

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

When I was updating my spreadsheet, I noticed EPS estimate for 2021 was a loss of $0.63, instead the company made a profit of $0.63. In the two prior years, a good profit was made because of income from discontinued operations.

The Long Term Debt/Market Cap Ratio for 2021 went down to 0.96, which is still high. The current one is back up past 1.00 at 1.34. This means that the Long Term Debt is higher than the Market Cap the company. Also, Goodwill Intangible/Market Cap Ratio is over 1.00 at 1.12 in 2021 and is now 1.09. The Liquidity Ratio is quite low at 0.85. This means that the current assets cannot cover the current liabilities. Even adding in Cash Flow after Dividends, it is on 1.30 and that is still low as I prefer it to be 1.50 or higher. The Debt Ratio has improved from 1.26 of last year to 1.48 for this year. I prefer this to be 1.50 or higher also.

The other thing I noticed is insider buying. I follow CEO, CFO, one officer, Chairman and one Director. I based the following of the officer and director on A to Z Alphabet and continue to follow that officer or director until they leave and then pick the next one based on A to Z alphabet. All the ones I am following on this stock bought shares within the last year. For example, the CEO increased his number of shares by 35% over the past year.

If you had invested in this company in December 2011, $1,035.98 you would have bought 22 shares at $47.09 per share. In December 2021, after 20 years you would have received $219.42 in dividends. The stock would be worth $822.36. Your total return would have been $1,041.78.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$47.09	$1,035.98	22	10	$219.42	$822.36	$1,041.78

The dividend yields are very low with dividend growth non-existent. The dividend yields are very low, almost non-existent at 0.15%. Low yields are under 2%. The company decreased the dividends by 97% in 2019. So, any dividends this company is giving out is nominal. Analyst do not see any dividend increases in the next 3 years. In fact, analysts are saying that dividends might be decreased even further.

The Dividend Payout Ratios (DPR) are fine. The DPR for EPS for 2021 is 6%. The 5 year coverage cannot be calculated because of an earning loss in 2018. The DPR for Cash Flow per Share is 0.69% with 5 year coverage at 9%. The DPR for Free Cash Flow for 2021 is 6%. The 5 year coverage cannot be calculated because of negative FCFs.

Debt Ratios need improving. The Long Term Debt/Market Cap Ratio for 2021 is 0.96. This is the first time in 4 years that is it under 1.00. The current one is 1.36 because of an increase in Long Term Debt. The Liquidity Ratio for 2021 is 0.85. If you add in Cash Flow after dividends, it is still low at 1.30. I prefer this to be at least 1.50. The Debt Ratio is acceptable at 1.48. The Leverage and Debt/Equity Ratios are 3.08 and 2.08. I prefer these to be at below 3.00 and 2.00, respective. These ratios are better than last year.

The Total Return per year is shown below for years of 5 to 21 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	-49.07%	-9.97%	-10.99%	1.02%
2011	10	-33.34%	0.06%	-2.28%	2.35%
2006	15		0.74%	-0.90%	1.64%
2001	20		2.90%	1.50%	1.40%
2000	21		4.43%	2.50%	1.93%

The Total Return per year is shown below for years of 5 to 19 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	-48.48%	-9.09%	-10.11%	1.03%
2011	10	-34.78%	-2.30%	-4.39%	2.09%
2006	15		0.60%	-1.09%	1.68%
2002	19		5.73%	3.91%	1.82%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 2.27, 5.46 and 8.66. The corresponding 10 year ratios are 17.97, 21.71 and 25.39. The corresponding historical ratios are 18.00, 21.71 and 25.39. The current P/E Ratio is 58.53 based on a stock price of $34.78. This is above the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive. A ratio of 58.53 is a very high one and it is high because the EPS for 2022 is expected to be low at $0.59 CDN$ ($0.47 US$). This testing is in CDN$.

The P/E Ratio for 2023 is more normal. It is 15.45 based on a stock price of $34.78 and an EPS estimate for 2023 of $2.25 CDN$ ($1.78 US$). This ratio is below the low of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap. This testing is in CDN$.

I get a Graham Price of $17.02. The 10 year low, median, and high median Price/Graham Price Ratios are 1.33, 1.68 and 2.06. The current P/GP Ratio is 2.04 based on a stock price of $34.78. The current ratio is between the median and high of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in CDN$.

The Graham Price for 2023 is 33.13. P/GP Ratio for 2023 is 105 based on a stock price of $34.78. This stock price testing suggests that the stock price is relatively cheap. This testing is in CDN$.

I get a 10 year median Price/Book Value per Share Ratio of 2.98. The current P/B Ratio is 1.58 based on a stock price of $29.85, Book Value of $1,462M and Book Value per Share of $20.11. The current ratio is 47% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$. You will get a similar result in CDN$.

There is also a Book Value per Share estimate for 2022 of $19.80. This would produce a P/B Ratio of 1.37 based on a stock price of $29.85, Book Value per Share of $19.80 and Book Value of $1,440M. This ratio is 54% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$. You will get a similar result in CDN$.

I get a 10 year median Price/Cash Flow per Share Ratio of 15.56. The current P/CF Ratio is 5.90 based on Cash Flow per Share estimate for 2022 of $4.60, Cash Flow of $252M and a stock price of $29.85. The current ratio is 62% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$. You will get a similar result in CDN$.

I get an historical median dividend yield of 1.60%. The current dividend yield is 0.15% based on dividends of $0.04 and a stock price of $29.85. The current dividend yield is 91% below the historical median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. You will get a similar result in CDN$.

I get a 10 year median dividend yield also of 1.60%. The current dividend yield is 0.15% based on dividends of $0.04 and a stock price of $29.85. The current dividend yield is 91% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$. You will get a similar result in CDN$.

The 10 year median Price/Sales (Revenue) Ratio is 1.49. The current P/S Ratio is 1.09 based on Revenue estimate for 2022 of $1,813M, Revenue per Share of $24.94 and a stock price of $29.85. This ratio is 85% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$. You will get a similar result in CDN$.

Results of stock price testing is that the stock price is probably cheap. The Dividend Yield tests are not good because dividends were cut by 97% in 2019. The P/S Ratio test is good and it says that the stock price is cheap. The P/CF Ratio and P/B Ratio tests are good and says the stock price is cheap. If you look at the P/GP Ratio and P/E Ratio tests for 2023, they are reasonable and say the stock price is cheap. The P/GP Ratio and P/E Ratio tests for 2022 have a very low EPS for 2022, so may not be reliable.

When I look at analysts’ recommendations, I find Strong Buy (3), Buy (5), Hold (3) and Underperform (1). The consensus would be a Buy. The 12 months stock price of $53.42 CDN$ ($42.25 US$). This implies a total return of 53.74% with 53.60% from capital gains and 0.15% from dividends.

The last entry on Stock Chase was a Top Pick in December 2021. Stock Chase gives this company 3 stars out of 5. Christopher Liew on Motley Fool says tech stocks are down, but this one is up this year. Report was written in April 2022. Vineet Kulkarni on Motley Fool says company has a heavy debt burden, but Maxar has a recurring revenue base, which could be constructive in the long term. In a Press Release Maxar Technologies talks about their fourth quarter results. In a Press Release Maxar Technologies talks about their First Quarter of 2022 results.

Simply Wall Street has a report on Yahoo Finance about this stock. Simply Wall Street lists two risks of interest payments are not well covered by earnings and shareholders have been diluted in the past year. I must admit that I do not see the 394% increase over the past 3 years but it is up a fair bit. I am surprised that they do not mention debt as a risk. I agree that insiders are buying.

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

The last stock I wrote about was about was Ensign Energy Services (TSX-ESI, OTC-ESVIF) ... learn more. The next stock I will write about will be Algonquin Power & Utilities Corp (TSX-AQN, NTSE-AQN) ... learn more on Monday, June 13, 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.

Ensign Energy Services

Sound bite for Twitter and StockTwits is: Small Cap Industrial. The stock price is probably cheap, but is certainly reasonable. It has a lot of debt, but most of the debt ratios are good. Dividends have been suspended. See my spreadsheet on Ensign Energy Services.

Is it a good company at a reasonable price? I still like this company. It now seems to be recovering. The stock price is certainly reasonable. I plan to retain the stock I now have and maybe buy more in the future.

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

In June 2020, Ensign was selling at $0.74. It was quite a low, so I bought some. I again bought more in May 2021 at $13.60. If you consider my adventure in this stock from 2012, I have still made a profit of 6.87% per year. If you just consider what I bought f rom 2020, my total return is 180.26% per year.

When I was updating my spreadsheet, I noticed that in the first quarter of 2022, this company has made a profit of $0.04 per share. This is after a number of years of earnings losses. The stock was up 85% in 2021 and is up by 180% so far this year.

If you had invested in this company in December 2011, $1007.50 you would have bought 62 shares at $16.25 per share. In December 2021, after 10 years you would have received $238.70 in dividends. The stock would be worth $104.16. Your total return would have been $342.86.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$16.25	$1,007.50	62	10	$238.70	$104.16	$342.86

Dividends have been suspended, so I can not talk about dividend yields, dividend increases or Dividend Payout Ratios. This company paid dividends for 25 years before suspending them in 2021.

Debt Ratios are probably fine. The Long Term Debt/Market Cap Ratio for 2021 is 5.34. That means that basically, the long term debt owned is 5 times the Market Value of this stock. The stock price really dropped in 2017. In 2017 this ratio was 0.24. Currently this ratio is 1.84. Debt has gone down a bit, but mostly, the stock price has gone up. The company seems to be recovering, so this may not be a problem.

The Liquidity Ratio is good at 1.56. The Debt Ratio is also good at 1.67. The Leverage and Debt/Equity Ratios are fine at 2.50 and 1.50.

The Total Return per year is shown below for years of 5 to 30 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%	-23.69%	-29.10%	5.41%
2011	10	0.00%	-14.21%	-20.30%	6.09%
2006	15	0.00%	-8.67%	-14.75%	6.08%
2001	20	0.00%	1.48%	-6.67%	8.15%
1996	25	0.00%	4.25%	-3.61%	7.86%
1991	30	0.00%	25.39%	8.01%	17.39%

The 5 year low, median, and high median Price/Earnings per Share Ratios are negative and so unusable. The corresponding 10 year ratios are also negative. The corresponding historical ratios are 8.48, 12.18 and 16.24. The current P/E Ratio is negative and unusable. The 2023 P/E Ratio is 14307%. The 2024 P/E Ratio is 4.63 based on a stock price of $4.71 and EPS estimate for 2024 of $0.38. This P/E Ratio is low, implying a cheap price, but the further you go out on estimates the more unreliable they are.

I also have Funds from Operations (FFO). The 5 year Price/FFO Ratios are 0.97, 1.83, and 2.70. The corresponding 10 year ratios are 3.09, 4.51 and 5.49. (Note that the last 5 years of FFO are lower than the 6 to 10 year FFOs.) The current P/FFO Ratio is 3.62 based on the last 12 months FFO of $1.30 and a stock price $4.71. The current ratio is between the low and the median 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 $7.91 for 2023, the next year of a positive EPS. The 10 year low, median, and high median Price/Graham Price Ratios are 0.54, 0.78 and 0.97. The P/GP Ratio for 2024 is 0.60 based on a stock price of $4.71. This ratio is between the low and the median of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median. However, the further you go out on estimates the more unreliable they are.

I get a 10 year median Price/Book Value per Share Ratio of 0.64. The current P/B Ratio is 0.64 based on as stock price of $4.71, Book Value of $1,189M and Book Value per Share of $7.31. This ratio is the same as the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and at the median. The current P/B Ratio is extremely low.

There is also a Book Value per Share estimate for 2022. That estimate is $6.31. With this estimate, the Book Value is $1,026M. With a stock price of $4.71, the ratio is 0.75. This 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.

I get a 10 year median Price/Cash Flow per Share Ratio of 4.56. The current ratio is 3.93 based on Cash Flow per Share estimate for 2022 of $1.20, Cash Flow of $195M and a stock price of $4.71. The current 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 cannot do any dividend yield test because the dividends have been suspended.

The 10 year median Price/Sales (Revenue) Ratio is 0.96. The current P/S Ratio is 0.54 based on Revenue estimate for 2022 of $1,428M, Revenue per Share of $8.78 and a stock price of $4.71. The current ratio is 44% 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, but is certainly reasonable. The P/S Ratio test is a good one and it says that the stock price is cheap. Both the P/B Ratio tests are good with one at the median and one above, but both reasonable. However, the P/B Ratios are very low. The P/FFO Ratio test is also a good one with the result of reasonable and below the median.

When I look at analysts’ recommendations, I find Strong Buy (2), Buy (5) and Hold (2). The consensus would be a Buy. The 12 month stock price consensus is $5.89. This implies a total return of 25.05%, all from capital gains.

An entry for May 2022 on Stock Chase says this is a top pick. Christopher Liew on Motley Fool says the stock lost big time in 2020 but is trouncing the overall market this year. Christopher Liew on Motley Fool says that Market analysts are bullish because of the company’s premium services. The company reports on Newswire its fourth quarter results. This company reports on Newswire its first quarterly results of 2022.

Simply Wall Street on Yahoo Finance reports on ownership of this stock. Simply Wall Street list two risk to this stock of significant insider selling over the past 3 months; and shareholders have been diluted in the past year. Sell is probably just options. Over the past year, CEO, CFO and Chairman all increased their shares. Outstanding shares increased modestly after a decline in 2020. Simply Wall Street gives the stock 3 stars out of 5.

Ensign Energy Services Inc offers services in drilling and well servicing, oil sands coring, directional drilling, underbalanced and managed pressure drilling, equipment rentals, transportation, wireline services, and production testing services. Most of the company's revenue is derived from the United States and Canada. Ensign's customers include crude oil, natural gas, and geothermal operators. Its web site is here Ensign Energy Services.

The last stock I wrote about was about was Hardwoods Distribution Inc (TSX-HDI, OTC-HDIUF) ... learn more. The next stock I will write about will be Maxar Technologies Ltd (TSX-MAXR, NYSE-MAXR) ... learn more on Thursday, June 10, 2022 around 5 pm. Tomorrow on my other blog I will write about Something to Buy June 2022.... learn more on Thursday, June 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.

Hardwoods Distribution Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Materials. The stock price could be reasonable. It is a rather high risk because of its small size. They are currently taking on a lot of debt, but debt ratios are still good. See my spreadsheet on Hardwoods Distribution Inc .

Is it a good company at a reasonable price? I do like this company. However, it is risky as it is a small materials sector company. We may be going into a bear market, but who knows. A bear market is overdue as the last one was really in 2008. I have not bought much over the past 3 years as I thought that the market was generally too high. I am interested in buying more of this company at some time in the future.

I own this stock of Hardwoods Distribution Inc (TSX-HDI, OTC-HDIUF). In April 2017, I asked for suggestions on what stocks I should now follow because of a number that I had followed had been bought out. This was one of the suggestions. I bought 100 shares 2020 and then the price skyrocketed. I am waiting to buy more in the future.

When I was updating my spreadsheet, I noticed that this company has changed their reporting currency from CDN$ to US$. The other thing is that the stock is traded so seldom on the US market that it is difficult to get probable US$ stock prices. They vary, sometimes by a lot, from CDN$ prices. They also have an Adjusted Earnings Per Share.

If you had invested in this company in December 2011, $1001.63 you would have bought 287 shares at $3.49 per share. In December 2021, after 10 years you would have received $703.15 in dividends. The stock would be worth $12,550.51. Your total return would have been $13,253.66.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$3.49	$1,001.63	287	10	$703.15	$12,550.51	$13,253.66

The dividend yields are low with dividend growth moderate. The current dividend yield is low (below 2%) at 1.45%. The 5, 10 and historical dividend yields are also low at 1.90%, 1.72% and 1.92%. The dividends have been increasing at a moderate rate (8% to 14%). The dividends were increased at the rate of 12% per year over the past 5 years. The last dividend increase occurred in 2022 and it was for 20%.

The Dividend Payout Ratios (DPR) are fine. The DPR for EPS for 2021 is 6.6% with 5 year coverage at 13%. The DPR for Cash Flow per Share for 2022 is 3.9% with 5 year coverage at 6.8%. The DPR for Free Cash Flow for 2021 is negative. The 5 year coverage at 34%.

Debt Ratios are going high quickly. The Long Term Debt/Market Cap Ratio went from 0.00 to 0.34 in 2021. The long term debt went up again by 30% in 2022 and now the ratio is 0.44. The ratio is good, but they are taking on a lot of debt. For Intangibles and Goodwill, the Ratio to the market cap in 2020 was 0.19 and now is 0.32 because of an increase in these items by 230% in 2021. These items increased another 80% in 2022 and now the ratio is 0.57. It not so much that the ratios are bad, but that there is such an increase in one year.

The Liquidity Ratio for 2021 is 2.29. The Debt Ratio for 2021 is 1.59. These are both good ratios as any ratio at 1.50 or better are good. The Leverage and Debt/Equity Ratio for 2021 are fine at 2.69 and 1.69. However, the current ones are higher at 3.37 and 2.37. In 2020 these ratios were good at 1.92 and 0.92. I prefer these ratios to be under 3.00 and 2.00, respectively.

The Total Return per year is shown below for years of 5 to 17 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	11.95%	20.85%	19.59%	1.26%
2011	10	17.46%	30.98%	28.76%	2.22%
2006	15	-5.40%	18.07%	15.24%	2.83%
2004	17	-3.47%	10.23%	7.98%	2.25%

The Total Return per year is shown below for years of 5 to 17 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	13.24%	22.23%	20.97%	1.27%
2011	10	14.90%	28.82%	26.75%	2.07%
2006	15	-5.94%	17.51%	14.52%	2.99%
2004	17	-3.76%	10.14%	7.75%	2.39%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 6.85, 10.34 and 14.15. The corresponding 10 year ratios are 8.86, 11.24 and 14.68. The corresponding historical ratios are 7.69, 10.47 and 14.09. The current P/E Ratio is 4.67 based on a stock price of $33.04 and EPS estimate for 2022 of $7.07. The current ratio is below the low of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap. This testing is in CDN$.

I get a Graham Price of $62.25. The 10 year low, median, and high median Price/Graham Price Ratios are 0.57, 0.74 and 1.06. The current ratio is 0.53 based on a stock price of $33.04. The current ratio is below the low of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap. This testing is in CDN$.

I get a 10 year median Price/Book Value per Share Ratio of 1.48. The current P/B Ratio is 1.36 based on a stock price of $33.04, Book Value of $580M and a Book Value per Share of $24.36. The current ratio is 9% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in CDN$.

I cannot do a Price/Cash Flow per Share Ratio because the Cash Flow is negative. This is not a good thing. Also, the Free Cash Flow for 2021 is also negative. It is expected to be positive again in 2022. The Cash Flow without Working Capital has been positive and this is good.

I get an historical median dividend yield of 1.92. The current dividend yield is 1.45% based on a stock price of $33.04 and dividends of $0.48. The current dividend yield is 24% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive. This testing is in CDN$.

I get a 10 year median dividend yield of 1.72. The current dividend yield is 1.45% based on a stock price of $33.04 and dividends of $0.48. The current dividend yield is 15% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in CDN$.

The 10 year median Price/Sales (Revenue) Ratio is 0.36. The current P/S Ratio is 0.25 based on a stock price of $33.04, Revenue estimate for 2022 of $3,188M and Revenue per Share of $133.85. The current ratio is 31% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in CDN$.

Results of stock price testing is that the stock price could be reasonable, but also could be expensive. In this case, the P/S Ratio test is saying the stock price is cheap, but the dividend tests are saying above the median to expensive. I like the P/S Ratio test to confirm the dividend yield tests, but it does not. I do like the dividend yield tests the best, especially when they say a stock is cheap or reasonable. However, the other tests do say the stock price is cheap to reasonable.

When I look at analysts’ recommendations, I find Strong Buy (3) and Buy (4). The consensus is a Strong Buy. The 12 months stock price consensus is $66.36. This implies a total return of 102.30% with 100.85% from capital gains and 1.45% from dividends based on a stock price of $33.04.

When I looked at analysts’ recommendations last year, I found Strong Buy (3), Buy (2). The consensus was a Buy. The 12 months stock price consensus is $44.40. This implies a total return of 39.56% with 38.32% from capital gains and 1.25% from dividends based on a stock price of 32.10. What happened was a stock price of $33.04 and a total return of $4.18% with 2.93% from capital gains and 1.25% from dividends. In the past year the stock price certainly has gone up over $44.40, but as with all stocks it has been falling lately.

It is not well followed on Stock Chase as the last entry was in 2020. Stock Chase gives this company 1 star out of 5. Robin Brown Motley Fool says this is a high growth stock selling cheap. Christopher Liew Motley Fool says that you should have this growth stock on your buy list. The company reports their fourth quarter results on Newswire. The company announces the results for the first quarter of 2022 on Newswire.

A recent Simply Wall Street Report on Yahoo Finance talk about this company. Simply Wall Streets says there are four risks to this stock of earnings are forecast to decline by an average of 2.9% per year for the next 3 years; debt is not well covered by operating cash flow; high level of non-cash earnings and shareholders have been diluted in the past year. According to the estimates I got, the earnings will increase over the next two years. Outstanding shares have increase by 12% since last year.

Hardwoods Distribution Inc is a Canadian company that operates a network of distribution centers in Canada and the United States, engaged in the wholesale distribution of hardwood lumber and related sheet goods and specialty products. Geographically the company generates the majority of revenue from the United States region. Its web site is here Hardwoods Distribution Inc .

The last stock I wrote about was about was IA Financial Corp (TSX-IAG, OTC-IDLLF) ... learn more. The next stock I will write about will be Ensign Energy Services (TSX-ESI, OTC-ESVIF) ... learn more on Wednesday, June 8, 2022 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks June 2022 .... learn more on Tuesday 7, 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.

IA Financial Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Insurance. The stock price seems to be reasonable. A dividend stock with a moderate yield and moderate growth is a great dividend stock. See my spreadsheet on IA Financial Corp.

Is it a good company at a reasonable price? The stock price is testing as reasonable, but may be cheap because of the dividend tests. All insurance companies have had a tough time with very low interest rates and will be better with interest rates increasing. Money Sense rates this stock within its 100 Top Canadian Stocks. So, yes, I think it is a good company to have in your portfolio to give diversity to financial stocks. Even with the low interest rate problem, this company has been producing reasonable returns for its shareholders.

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

When I was updating my spreadsheet, I noticed this company is also providing, in the Management’s D & A section, Adjusted Earnings per Share (AEPS). These values only go back to 2018, and I have updated my spreadsheet for AEPS. I have been able to pick up estimates for AEPS for 2022 and 2023.

If you had invested in this company in December 2011, $1,025.31 you would have bought 39 shares at $26.29 per share. In December 2021, after 10 years you would have received $555.56 in dividends. The stock would be worth $2,822.28. Your total return would have been $3,378.38.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$26.29	$1,025.31	39	10	$555.56	$2,822.82	$3,378.38

The dividend yields are moderate with dividend growth moderate. The current dividend yield is moderate (2% to 4% ranges) at 3.79%. The 5, 10 and historical median dividend yields are also moderate at 3.10%, 2.89% and 2.64%. The dividends have been increasing at a moderate rate (8% to 14% ranges) at 10.5% per year over the past 5 years. The last dividend increase was for 28.9% and it was made in 2021.

The Dividend Payout Ratios (DPR) are fine. The DPR for EPS for 2021 are 27% with 5 year average at 29%. The DPR for Adjusted Earnings per Share (AEPS) for 2021 is 25% with 5 year average at 27.5%. The DPR for Cash Flow per Share for 2021 is 120% with 5 year average at 7.60%. The problem, as with a lot of Financials, there are negative cash flows. The DPR for Free Cash Flow for 2021 is non-calculable because of a negative FCF. The 5 year average is 36%.

Debt Ratios are fine. Because this is a financial stock, I am looking at Long Term Debt/Covering Assets Ratio and that is fine at 0.81. Although Liquidity Ratio is not important, I did calculate one at 1.59. The Debt Ratio is 1.08 and this is fine for a financial.

The Total Return per year is shown below for years of 5 to 21 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	10.54%	9.17%	6.28%	2.89%
2011	10	7.82%	13.98%	10.66%	3.33%
2006	15	8.64%	7.15%	4.74%	2.41%
2001	20	10.17%	8.16%	5.83%	2.33%
2000	21	9.66%	8.60%	6.23%	2.37%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 7.03, 9.19 and 11.18. The corresponding 10 year ratios are 7.24, 9.28 and 11.76. The corresponding historical ratios are 10.16, 11.47 and 13.06. The current P/E Ratio is 8.93 based on a stock price of $65.96 and EPS estimate for 2022 of $7.39. The current ratio is below 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 $104.67. The 10 year low, median, and high median Price/Graham Price Ratios are 0.53, 0.67 and 0.82. The current P/GP Ratio is 0.63 based on a stock price of $65.96. 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 1.07. The current P/B Ratio is 1.00 based on a current Book Value of $7,093M, Book Value per Share of $65.89 and a stock price of $65.96. The current ratio is 6.5% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I also have a Book Value per Share estimate for 2022. The P/B Ratio is 1.02 based on Book Value per Share estimate for 2022 of $64.80, Book Value of $6,975M and a stock price of $65.96. This P/B Ratio is 4.9% 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 8.64. The current P/CF Ratio is 10.35 based on Cash Flow for the last 12 months of $686M, Cash Flow per Share of $6.37 and a stock price of $65.96. The current ratio is 19.9% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get an historical median dividend yield of 2.64%. The current dividend yield is 3.79% based on dividends of $2.50 and a stock price of $65.96. The current dividend yield is 43.6% 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 2.89%. The current dividend yield is 3.79% based on dividends of $2.50 and a stock price of $65.96. The current dividend yield is 31% 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 0.50. The current P/S Ratio is 0.46 based on Revenue for the last 12 months of $15,307M, Revenue per Share of $142.20 and a stock price of $65.96. The current ratio is 6% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

Because this is a Life Insurance company, I got estimate for Assets Under Management (AUM) rather than for Revenue. The 10 year median Price/AUM Ratio is 0.0338. The current P/AUM Ratio is 0.0285 based on AUM estimate for 2022 of $249.5B, AUM per Share of $2,056B and a stock price of $65.96. The current ratio is 16% 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 dividend yield tests show the stock price as cheap, but the P/S Ratio and P/AUM Ratio tests are showing the price as reasonable and below the median. All the other tests are pointing to a reasonable and below the median price. The ratios are low, but they have always been low for this stock. For example, a P/E Ratio of 8.93 is considered low (i.e., pointing to a cheap price). However, the P/E Ratios have always been low if you look at the 5 and 10 year and the historical ratios.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (7) and Hold (1). The consensus would be a Buy. The 12 month stock price is $82.56. This implies a total return of 29.11%, with 3.79% from capital gains and 3.79% from dividends based on a stock price of $65.96.

There is nothing recent on Stock Chase, but this company was a top pick at the end of 2021. Stock Chase gives it 4 stars out of 5. Money Sense Rates it a C on their Top 100 dividend dividend stocks. Joey Frenette on Motley Fool thinks you should by this stock because the P/E Ratio is a single digit. The company has reported their fourth quarterly results on Newswire. The company reports on Newswire their first quarter of 2022 results. A Simply Wall Street report on Yahoo Financial looks at the ability of this company to pay dividends. They have no warning signs for this company.

iA Financial Corp Inc is a life and health insurance company. The company operates and manages its activities according to five main reportable operating segments Individual Insurance, Individual Wealth Management, Group Insurance, Group Savings and Retirement, and US Operations. Its web site is here IA Financial Corp.

The last stock I wrote about was about was Ritchie Bros Auctioneers Inc (TSX-RBA, NYSE-RBA) ... learn more. The next stock I will write about will be Hardwoods Distribution Inc (TSX-HDI, OTC-HDIUF) ... learn more on Monday, June 6, 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.

Ritchie Bros Auctioneers Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. The stock price could be reasonable but it is probably expensive. Their debt load has increased a lot over the past year or so. Debt ratios have deteriorated. See my spreadsheet on Ritchie Bros Auctioneers Inc.

Is it a good company at a reasonable price? The stock price is probably expensive. A dividend below 2% is low and often in the past, you could buy this stock with a dividend yield over 2% and that would be the time to buy this stock. Shareholders have done well with this stock over a long period of time. I would worry about the increasing debt load. This is a dividend growth stock and it is the sort that I like.

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

When I was updating my spreadsheet, I noticed that analysts expected the EPS to go up by 18% to $1.82, but instead it went down 12% to $1.36. Also, I have been looking for Adjusted Earnings per Share (AEPS) as more and more companies are providing these figures. The reason for AEPS is to provide EPS that do not include special items. The AEPS for 2021 for this company was $1.94.

Their debt load has increased a lot in 2021. Long Term Debt/Market Cap Ratio for 2020 was 0.08 and in 2021 is 6.11. The increase is 176%. The Leverage and Debt/Equity Ratios went from fine at 2.33 and 1.33 in 2021 to too high at 3.36 and 2.36 in 2022. I prefer these ratios to be below 3.00 and 2.00, respectively.

If you had invested in this company in December 2010, $1008.00 you would have bought 45 shares at $22.40 per share. In December 2021, after 10 years you would have received $378.20 in dividends. The stock would be worth $3,483.45. Your total return would have been $3,861.65.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$22.40	$1,008.00	45	10	$378.20	$3,483.45	$3,861.65

The dividend yields are low with dividend growth low. The current dividend yield is low (below 2%) at 1.66%. The 5 year and historical median dividend yields are also low at 1.95% and 1.89%. The 10 year median dividend yield is moderate (2% to 4% ranges) at 2.14%. The dividends have increased at a low rate (below 8%) at 7.3% per year over the past 5 years. The last dividend increase was in 2022 and it was for 13.6%. Dividends are paid in US$.

The Dividend Payout Ratios (DPR) are fine. The DPR for EPS for 2021 is 69% with 5 year coverage at 65%. The DPR for Adjusted Earnings per Share for 2021 is 48% with 5 year coverage at 61%. The DPR for Cash Flow per Share for 2021 is 35% with 5 year coverage at 36%. The DPR for Free Cash Flow for 2021 is 33% with 5 year coverage at 42%.

Debt Ratios are fine, but could improve. The Long Term Debt/Market Cap Ratio for 2021 is 0.26 and is low and fine. The Liquidity Ratio for 2021 is low at 1.30. If you add in cash flow after dividends, it is at 1.66. However, it is lower at 1.07 and with cash flow after dividends it is 1.34 after the first quarter. I prefer this to be at 1.50 or higher. The debt ratio for 2021 is 1.42. I also prefer this to be at least 1.50. It is better, but not yet at 1.50 in the first quarter at 1.46.

The Total Return per year is shown below for years of 5 to 23 to the end of 2021 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	6.10%	12.98%	11.19%	1.79%
2011	10	10.42%	15.29%	13.20%	2.09%
2006	15	9.56%	10.80%	9.15%	1.65%
2001	20	13.14%	15.12%	13.09%	2.03%
1998	23		12.55%	11.10%	1.45%

The Total Return per year is shown below for years of 5 to 23 to the end of 2021 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	7.33%	14.29%	12.48%	1.81%
2011	10	8.01%	12.62%	10.73%	1.89%
2006	15	2.56%	10.27%	8.56%	1.71%
2001	20	13.26%	16.92%	14.40%	2.52%
1998	23		13.73%	12.03%	1.71%

The 5 year low, median, and high median Price/Earnings per Share Ratios are 27.23, 33.22 and 48.83. The corresponding 10 year ratios are 25.22, 29.83 and 33.59. The corresponding historical ratios are 22.32, 28.34 and 31.98. The current P/E Ratio is 23.62 based on a stock price of $76.25 and EPS estimate for 2022 of $3.23. The current ratio is below the low of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap. This testing is in CDN$.

I also have Adjusted Earnings per Share. The 5 year low, median, and high median P/AEPS Ratios are 26.02, 32.03 and 37.68. The corresponding 10 year ratios are 23.45, 29.59 and 34.03. The current P/AEPS Ratio is 28.95 based on AEPS of the last 12 months of $2.63 and a stock price of $76.25. The current ratio is between the low and median ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in CDN$.

I get a Graham Price of $31.92. The 10 year low, median, and high median Price/Graham Price Ratios are 2.06, 2.63 and 3.16. The current P/GP Ratio is 2.39 based on a stock price of $76.25. The current ratio is between the low and median ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in CDN$.

I get a 10 year median Price/Book Value per Share Ratio of 4.56. The current P/B Ratio is 5.44 based on a Book Value of $1,225M, Book Value per Share of $11.07 and a stock price of $60.24. The current ratio is 19% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in US$ and you will get a similar answer in CDN$.

I get a 10 year median Price/Cash Flow per Share Ratio of 17.96. The current ratio is 21.14 based on EPS estimate for 2022 of $2.85, Cash Flow of $315M and a stock price of $60.24. The current ratio is 18% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in US$ and you will get a similar answer in CDN$.

I get an historical median dividend yield of 1.90%. The current dividend yield is 1.66% based on dividends of $1.00 and a stock price of $60.24. The current dividend yield is 13% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in US$ and you will get a similar answer in CDN$.

I get a 10 year median dividend yield of 2.18%. The current dividend yield is 1.66% based on dividends of $1.00 and a stock price of $60.24. The current dividend yield is 24% below the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$ and you will get a similar answer in CDN$.

The 10 year median Price/Sales (Revenue) Ratio is 5.03. The current P/S Ratio is 4.26 based on Revenue for 2022 of $1,563M, Revenue per Share of $14.13 and a stock price of $60.24. The current ratio is 15% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in US$ and you will get a similar answer in CDN$.

Results of stock price testing is that the stock price could be reasonable, but it is probably expensive. The 10 year dividend yield says the stock price is expensive, but the historical dividend yield test just say it is above the median. My worry is that the 10 year median dividend yield test says the stock is expensive. I know some other tests, like to P/E Ratio test shows the stock as cheap, but the P/E Ratios are quite high as they are over 20.00. The P/AEPS Ratios, P/B Ratios and P/GP Ratios are all quite high. Of course, that points to ratios that have been high for a while. In fact they have always been relatively high.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (1), Hold (8) and Sell (1). The consensus is a Hold. The 12 months stock price consensus is $74.63 ($58.94 US$). This implies a total return of a loss of 0.46%, with a capital loss of 2.12% and dividends of 1.66%.

The last entry was in 2020 so on Stock Chase the analysts have lost interest. They also give this stock 1 star out of 5. Christopher Liew on Motley Fool says buying this stock is a great way to diversify your portfolio. Ambrose O'Callaghan on Motley Fool thinks that now is the time to buy this stock. The company reports on Newswire their fourth quarter results. The company reports on Newswire their first quarter results for 2022.

A Simply Wall Street report on Yahoo Finance says that this is a good stock from a dividend point of view. Simply Wall Street list 3 risks of has a high level of debt, large one-off items impacting financial results and significant insider selling over the past 3 months. I note that the CEO has sold stocks over the past year and CFO has bought stocks over the past year. The company also puts out an Adjusted Earnings per Share because of the problem of one-off items impacting financial results.

Ritchie Bros. operates the world's leading marketplace for heavy equipment. The company started as a live auctioneer of industrial equipment, since then it has greatly expanded its operations to include the sale of construction, agricultural, oilfield, and transportation equipment. Ritchie Bros. operates over 40 live auction sites in more than 12 countries, along with online marketplaces, including IronPlanet, Marketplace-E, and GovPlanet. Its web site is here Ritchie Bros Auctioneers Inc.

The last stock I wrote about was about was Reitmans (Canada) Ltd (TSX-RET.A, OTC-RTMAF) ... learn more. The next stock I will write about will be IA Financial Corp (TSX-IAG, OTC-IDLLF) ... learn more on Friday, June 3, 2022 around 5 pm. Tomorrow on my other blog I will write about John Mauldin.... learn more on Thursday, June 2, 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.